CEMEX 2015 ANNUAL REPORT
ESPAÑOL FINANCIAL HIGHLIGHTS LETTER TO OUR STOCKHOLDERS
We strive to build a better future for our employees, our customers, our shareholders, and the communities in which we live and work. That’s why we work hard to develop and deliver the best construction products and solutions to satisfy our customers’ and society’s growing needs. By transforming ideas into reality, we build the homes people live in, the roads that connect them, and the infrastructure that makes their cities vibrant.



 

Building a better future

 
 
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2015 ANNUAL REPORT

Integral solutions

Address our clients’ complex, evolving construction needs

Differentiated, leading-edge innovation

Offer our customers superior performing building products

Industry forefront

Integrate digital technologies into our service and business offerings

Speed, continuous improvement

Benefit our customers’ business

Delivering better
products and solutions

 

When our customers succeed, we succeed. Accordingly, our core strategic goal is to become the most customer-oriented company in our industry—serving as our clients’ best option in all of our markets.

Ultimately, we aim to create solid relationships with our customers, creating the foundations for long-lasting partnerships.

To this end, we leverage our leading-edge ­innovation and agility to develop superior building products and solutions that perform at the highest standards across all applications. As the only global building materials company with its own admixtures business, our researchers are able to design and develop novel, tailor-made concrete technologies through the development of proprietary construction chemicals. Moreover, our experts in fields such as geology, chemistry, materials science, and various other engineering disciplines work alongside behavioral scientists, cultural anthropologists, and commercial strategists to anticipate and understand society’s trends to create innovative, sustainable construction solutions that satisfy our customers’ current and future needs, while truly challenging the current state of the art.

Led by CEMEX Research Group in Switzerland, our team of experts works in close collaboration with our customers to offer them unique, integrated, cost-effective solutions that fulfill their specific performance requirements, including a growing portfolio of value-added concretes. Building on our favorable client results in the U.S., we recently successfully tested our durable, low-cost Roller Compacted Concrete (RCC) pavement solution on a demanding, heavy use stretch of roadway in the Baltic States. Suitable for the most difficult conditions, RCC combines the strength and performance of concrete with asphalt’s relatively fast and simple application technique. Requiring no forms, reinforcing rods, or dowels, RCC’s lower installation and maintenance costs and long-term durability make it especially useful for industrial and heavy-duty pavements, as well as a base for conventional pavements.

Notably, the walls that serve as the backbone of the iconic Torre Reforma corporate tower—the tallest building in Mexico City—were built with our ultra high strength Fortis® concrete brand technology. The properties of this special concrete enable it to bear the weight of the slabs, which were conceived without interior columns in order to maximize the use of space, utilizing the support of the intertwined metallic structure.

We further enable the success of our customers by creating and delivering holistic solutions for their complex, evolving construction challenges. In 2015, we contributed to the construction of an enormous floating concrete caisson at the Grand Port Maritime de Marseille, France’s largest port with connections to every continent. Our technical experts worked for six months to successfully develop a high-performance concrete that is resistant to seawater corrosion, as well as impacts from the large oil tankers that enter the port. In Germany, we are participating in the construction of the new Uferkrone seven-building residential complex on the banks of the Spree River in Berlin’s greenest, most water-rich district. Because the complex is located directly on the water, the outer walls and floor slabs of the basement required the use of our highly water-resistant concretes, for which we employed truck-mounted concrete pumps with 42- or 52-meter masts. Moreover, in Panama, we are playing an important role in the extension of the country’s Manzanillo International Terminal, providing tailor-made concrete for one of the largest and most productive container transshipment terminals in Latin America.

We further look to position ourselves at the forefront of the industry by integrating digital technologies into our service and business offerings. With My CEMEX, a new mobile application, our customers will enjoy the ability to interface with us at any place and with any device. Among its features, My CEMEX will enable our customers to buy our products online, consult their credit information, account statements, invoices, and referrals, and review the status of their orders. Similarly, with Sales 360°, a complementary new mobile application, we improve our customer experience by providing our sales force with access to real-time client information—from order status to contracts and loyalty programs—thereby enabling them to avoid multiple trips to the office and perform analysis virtually everywhere quickly and easily. Through these innovative applications, we are transforming our commercial processes into mobile experiences that will increase our customers’ satisfaction.

CEMEX global value-added,
ready-mix concrete products

Rapid hardening concrete that allows for at least 90 minutes of workability

Fiber-reinforced concrete with hyper strength and ductility that can replace steel reinforcements in concrete

Self-curing concrete that tolerates extreme conditions (e.g., wind, heat, direct sunlight) through sealing, water-retention, and low-shrinkage mechanisms

A 100% concrete solution for thermal insulation, acoustic insulation, and fire resistance that eliminates thermal bridges

Structural pervious concrete (>4 MPa Tensile strength) that can manage water permeation to offer drainage solutions for pavements, even in high traffic areas

A highly flowable concrete that can spread into place under its own weight to achieve excellent consolidation without vibration or exhibiting defects due to segregation and blocking

 
 
 
 
 
 
Mersey Gateway Bridge - concrete pour - 2, 3 November, 2015
In Germany, we are participating in the construction of the new Uferkrone seven-building residential complex.
With My CEMEX, a new mobile application, our customers will enjoy the ability to interface with us at any place and with any device.
The iconic Torre Reforma corporate tower—the tallest building in Mexico City—was built with our specialty Fortis® brand concrete.

Golden 1 Center: A monumental sports venue

We participated in the construction of the 19,000-seat, multi-purpose Golden 1 Center in Sacramento, California. Among the largest construction projects in California’s state capital in nearly a decade, this monumental entertainment venue has already brought over 2,000 construction jobs to downtown Sacramento, an area hungry for revitalization. An interactive, smart, and frictionless structure, the arena will utilize enhanced Wi-Fi architecture and sensors to ensure connectivity.

Building on our proven global track record with multiple sports complexes, we efficiently and effectively satisfied the project’s strict quality control and intensive scheduling requirements. We not only developed a specially designed high-early-strength ready-mix concrete that no one else in the region could offer, but also provided around-the-clock service to facilitate the timely construction of one of the most important structures in the state’s capital city.



Value-added ready-mix concrete products
During 2015, our value-added products accounted for approximately 40% of our total consolidated ready-mix concrete sales.

“The project had a lot of challenges. Placing large pours that had to be done continuously, and we couldn’t stop in the middle of the pour so having CEMEX here to provide concrete at the rate required and at the times required was crucial. CEMEX was always flexible in their start times and always delivered as scheduled when we needed it. Whether it be nights, weekends, day time, any time.”

Rick Rice, Senior Project Manager,
Urata and Sons Concrete.

Talented, energetic teams

Passionate about our construction materials, their applications, and our customers’ success

Superior products

Perform at the highest standards across all applications

Wide, solid, growing market reach

Serve our customers accurately, consistently, and rapidly

Transparent, responsive actions

Ensure our customers’ satisfaction

Offering a better
customer experience

 

Beyond delivering superior products and solutions, we continually endeavor to get even closer to our customers.

By listening to their needs, comprehending their challenges, and appreciating what success means to them, we are devoted to ensuring that doing business with us is easy and a delight for our customers.

With this in mind, our talented teams of professionals are passionate about our construction materials, their applications, and our customers’ success. Through our Commercial Academy, we offer a unique approach to prepare our people to make the key choices required to create the best customer experience.

By virtue of our Commercial Academy and related initiatives, we are reinforcing customer centricity as a core organizational capability built around a deep understanding of who our customers are, what is important to them, and how to serve them in a way that meets both their and our need for growth and profitability. To date, we have trained approximately 3,000 of our company’s professionals through the Academy, including 1,935 people over the course of 2015.

Additionally, we enjoy a solid, wide reach in the markets where we operate, with the facilities and logistical capabilities to serve our customers accurately, consistently, and rapidly. For example, our logistical skills enabled us to meet the demanding deadlines of the city of Saint-Étienne, France, as they repaired one of the oldest tramlines in the country. Close coordination between our company and the site managers was required for us to deliver the ready-mix concrete for the track’s foundation. Beyond specific temperature requirements, the city needed to restart tram traffic as rapidly as possible and quickly free up the lane occupied by the pump and mixer trucks, while ensuring continuous concrete pouring. Indeed, on the first day, five semi-trailers of aggregates, three cement trucks, and seven concrete mixer trucks combined to accomplish non-stop production on all of the tracks. Likewise, across the world in the United States, we solved a complex logistical challenge in the construction of the new, state-of-the-art intermodal Transbay Transit Center in San Francisco, California. Because the Center is located in an extremely busy neighborhood, the tight logistical window meant that we could only dispatch our trucks starting at 11:00 p.m. on Friday through Saturday afternoon to complete the 15 large, continuous pours of up to 5,000 cubic yards of tailor-made concrete designed for this intricate urban project.

Moreover, we are strategically expanding our manufacturing and distribution capabilities to serve our customers’ and communities’ increasing demand for high quality public infrastructure, commercial, and housing projects more efficiently, effectively, and reliably. For example, in the Philippines, we officially inaugurated a range of investments, including the expansion of the largest cement plant in the country, a network of logistics centers in Visayas and Mindanao, and additional terminals in Iloilo and Davao. Through these investments, we not only partner with our customers, but also with the Philippine government and business community to ensure the economic growth of the nation.

We also deliver on our promises, acting transparently and responsively to ensure our customers’ satisfaction. On top of our many day-to-day personal interactions, we gain valuable insights by carefully listening to our customers through interviews, commercial events, service centers, help lines, and other feedback channels. To this end, 85% of our countries conducted customer satisfaction surveys in 2015. Additionally, we implemented more than 190 initiatives to identify customers’ needs and concerns and to maintain a high level of satisfaction. Such measures include newsletters, loyalty programs, sales force skills development, and enhanced customer service standards. Through these and other actions, we continue to focus on improving customer satisfaction in our industry.

We further thrive on speed and continuous improvement to benefit our customers’ business. Recognizing that transportation and logistics play an important role in fulfilling our customer service commitments, we developed Smart Delivery Truck (SDT). Through a standard centralized methodology, our SDT solution evaluates a range of cutting-edge technologies and innovative approaches to increase the efficiency, health and safety, and management of our transportation fleet across the countries where we operate to serve our customers better. SDT adopts technology that already adds value in some of our countries, complements it with advanced technology from the market, uniformly tests it, and shares it with our countries through the CEMEX network. These kinds of initiatives exemplify the ways in which we constantly innovate to enhance our customers’ and our company’s business.

+190

initiatives were implemented during 2015 to identify customers’ needs and concerns and to sustain a high satisfaction level.

Our Commercial Academy’s decision-making framework focuses on:
 

The commercial and business objectives to set the direction for our choices

The sets of customers and channels to focus on to achieve our objectives

The products, services, and solutions to provide for each customer and channel set

The delivery of these products, services, and solutions to the market

Our Smart Delivery Truck (SDT) solution increases the efficiency, health and ­safety, and management of our transportation fleet across the countries where we operate.


Our logistical skills enabled us to meet the demanding deadlines of the city of Saint-Étienne, France, as they repaired one of the oldest tramlines in the country.

KOI Tower: Tallest building in Mexico

Great history is being written in northern Mexico, and our company is a proud protagonist. We are contributing to the construction of the KOI Tower, which will become the tallest building in the country at a height of 917 feet when its 64 stories are completed. Located in the Monterrey metropolitan area, the skyscraper is in the process of obtaining LEED certification due to its sustainable characteristics. With the breathtaking local mountains as inspiration, KOI blends aesthetic and functional elements to achieve an attractive harmony of innovation, design, proportion, and sustainability.

As clearly exemplified by KOI, conquering heights requires sound, long-lasting foundations. In fact, the skyscraper’s massive 26-hour concrete pouring is the second largest ever performed by us in a Mexican urban area. To build the foundations of this great building, 7,070 cubic meters of ready-mix concrete were poured continuously at a rate of 270 cubic meters per hour. Taking advantage of our expertise and operational capacity, we undertook an exceptional logistical effort, involving 340 employees, seven ready-mix concrete plants, 98 revolving trucks making 1,010 trips, seven boom pumps, and 5,000 blocks of ice to control the heat produced by concrete hydration.

Furthermore, we capitalized on the experience of our Cement and Concrete Technology Center, along with the support of international advisors, to design a custom concrete with a strength of 700 kgf/cm2, which was used for the columns at the lower level of the skyscraper.

“If we had not had access to these high-strength concretes, such as the ones developed by CEMEX, the KOI tower, as currently conceived, would simply not have been possible.”

Juan Andrés Vergara and Luis Fernández de Ortega, Responsible architects from V&FO.

Global muscle, local touch

Identify and replicate the world’s best practices to deliver greater value

Transparent, open relationships

Generate trust across every business in which we engage

Proactive, collaborative partners

Build strategic relationships around the world to deliver the best solutions

Tomorrow’s leaders today

Recruit, develop, and propel the best talent globally

Cultivating better
closer personal relationships

 

Our success is directly ­dependent upon the success of our stakeholders—including our customers, suppliers, and employees—across our entire value chain.

Hence, we invest considerable time and effort into building strong, personal partnerships in everything we do.

Consistent with this commitment, we build transparent, open relationships that generate trust across every business in which we engage. Architects constitute an influential group of customers, who inspire and constantly challenge the possibilities of our cutting-edge building materials. Accordingly, we continually foster collaborative relationships with this important constituency, from academic outreach to our annual CEMEX Building Award. During 2015, architecture professors and their students from the Syracuse University School of Architecture in New York partnered with CEMEX Research Group on an exciting project—the creation of a “tower of tiles”—a modern re-interpretation of an ancient column decorating technique known as fluting. The successful construction of the “tower of tiles” highlights the importance of our ongoing collaboration between architects and our construction engineers to bridge the gap between design and materiality.

Moreover, through our annual CEMEX Building Award, one of the most renowned competitions in the construction field, we not only honor engineers, architects, and other building professionals, but also encourage creativity in the application of new concrete technology to improve our communities. For the XXIV Edition, customers from 16 countries submitted more than 700 projects for consideration. In addition to the Domestic Edition, the CEMEX Building Award recognizes the finest international buildings in three different categories—housing, institutional-industrial, and infrastructure and urbanism, as well as two special prizes for accessible and sustainable building.

We are good listeners who move swiftly into action. As a global leader in the building materials industry and the largest producer of concrete in the world, we are uniquely positioned to meet the challenges cities are facing. Over the past few years, we’ve played a leading role in delivering solutions to the complex and inter-connected challenges faced by an increasingly urban society, developing products and services that promote sustainable economic growth, preserve the environment, and improve the quality of life for cities around the world. By getting involved at the planning stage, we help to bring a city’s vision into focus by jointly exploring and identifying solutions for sustainable infrastructure and urbanization.

We proactively and collaboratively build strategic partnerships around the world to offer the best solutions. Through our Global Suppliers Innovation Program, “Integrate Your Ideas,” we promote innovation alongside our suppliers: a process that fosters the continuous improvement of our supply chain, identifies better solutions for our customers, suppliers, and our company’s businesses, and strengthens our relationships with all of our stakeholders. In the second edition of “Integrate Your Ideas,” we invited more than 50 suppliers to share their innovative ideas. In 2015, we selected three winning solutions for their innovation, potential financial contribution, ease of implementation, and scalability across different countries. In first place, we recognized GE Industrial Solutions for its “Electrical Products Bundle for Construrama® Stores” idea, featuring a complete and integrated offer of electrical safety switches, load centers, and breakers for customers at our Construrama® retail building materials network.

We give our global muscle a local touch, identifying and replicating best practices to deliver greater value. After first being put into practice in Mexico and Egypt, we installed CEMEX LINK, our ready-mix web-based management tool, in the Dominican Republic during 2015. Thanks to this shared knowledge transfer, our Dominican ready-mix team is reaping the benefits of this tool in the maintenance of their trucks. Among its multiple benefits, CEMEX LINK offers immediate assessment of every truck in our ready-mix fleet, reduced maintenance times from a better scheduling system, and a database of valuable information about our ready-mix trucks that enhances our safety, environmental, maintenance, and asset decision-making process. By sharing our know-how across our company, we take advantage of our collective strength, harnessing our ability to work together as one global organization.

Additionally, we recruit, develop, and propel the best local talent globally. Our strong portfolio of leadership development programs features two initiatives: ACHIEVE, focused on middle managers, and Leader-to-Leader, focused on developing senior-level mentors. Through ACHIEVE, top-tier managers and newly appointed directors develop an idea focusing on customer-centricity—an essential element of our company’s strategy—while reinforcing their own leadership skills. To date, 240 of our executives have successfully participated in this global leadership development program. In 2015, 60 participants from 19 countries enhanced their leadership skills, while placed on teams designed to develop and, ultimately, present projects aligned with our company’s priorities. The participants were coached by 45 senior management leaders via the Leader-to-Leader program, a unique initiative that provides mentorship and a connection between current and future CEMEX leaders. Thanks to these programs, we ensure the continuous development of leaders who are prepared to guide our company into the future.

Through our annual CEMEX Building Award, we encourage creativity in the application of new concrete technology.
Bridge House, Nicaragua
The successful construction of the “tower of tiles” highlights the importance of our ongoing collaboration to bridge the gap between design and materiality.

Employee engagement

Close to 29,000 employees responded to our “Voices Into Action” 2015 Engagement Survey—a 75% response rate. The survey collects input on a number of topics including development, compensation, leadership communication, and work-life balance.

Amber Highway: A concrete solution

 
 

We contributed to the construction of the Autostrada A1—the Amber Highway—a major roadway that will connect the major Baltic coast ports with the southern and central parts of Poland. The Autostrada A1 is part of the trans-European corridor linking Scandinavia with countries in Southern Europe.

This important stretch of the Amber Highway was constructed in sections from 1,000 to 2,200 meters long, performed within 30- to 72-hour windows. Key to the success of this project was our close cooperation with the client to coordinate a specialized technical, logistical solution. Because each section was paved in two layers, we erected two mobile ready-mix plants at each section, which could independently produce 4,000 to 7,000 cubic meters of ready-mix concrete for each layer.

Sustainable solutions

Address the world’s sustainability challenges

Industry leading

Use of alternative energy and management of natural resources

Community development

Build key infrastructure and develop shared value initiatives

Health and safety

Possess our industry’s highest standards

Building a better
world

 

We are responsible global citizens. As a global company, we are engaged and committed to building a better world by developing products and solutions that promote sustainable economic growth, preserve the environment, and improve the quality of life for communities around the world.

By understanding our key priorities, we align our time, resources, and investments accordingly. Hence, we committed considerable effort into the development of CEMEX Sustainability Materiality Matrix. Through detailed analysis, we identified the economic, social, environmental, and governance issues that are of greatest concern to our stakeholders. To this end, we surveyed more than 11,000 stakeholders, including employees, customers, analysts, suppliers, investors, community leaders, government officials, and NGO representatives across all of our regions. This analysis allowed us to construct our Materiality Matrix to encompass the 20 most important issues impacting our company, classified according to three categories: high, higher, and highest materiality. This matrix will be reviewed, updated, and shared as part of our year-end 2016 priorities.

With these priorities in mind, we develop innovative solutions that help address the world’s sustainability challenges. Leveraging years of experience, a worldwide pool of knowledge, and state-of-the-art expertise, we offer a variety of cutting-edge products, services, and solutions that meet our society’s need for housing, schools, and infrastructure development. Thanks to its many sustainable attributes, our concrete is a key component in the construction of durable, energy-efficient buildings. Among its benefits, our portfolio of concrete solutions helps improve land use and water management, reduce electricity consumption, and lower buildings’ carbon footprint. In 2015, this portfolio of concrete products—with its outstanding sustainability attributes—accounted for approximately 33% of our ready-mix revenues.

To preserve precious reserves, reduce construction waste, and lower transport costs, we are increasing our use of recycled concrete aggregates, especially in urban areas where the supply of natural aggregates is limited. For example, the new research and laboratory building for life sciences on the north campus of Berlin’s Humboldt University showcases our specialty ready-mix concrete produced with aggregates from recycled concrete. The final result meets the technical requirements of demanding building projects just as well as conventional concrete with the added benefit of conserving natural resources.

We contribute to flagship infrastructure projects worldwide that withstand intensive use and extreme conditions. Our broad experience, highly skilled professionals, and some of the best technology in the industry enable us to serve the demands of every kind of project, from state-of-the-art transit systems to urban rail systems and small town roadways. In Silicon Valley, California, we worked closely with the client to deliver 35 tailor-made concrete mixes to meet the varied groundwater levels and sustainability requirements of each section of the 10-mile, two-station “Berryessa Extension,” part of an ambitious effort to expand the Bay Area’s Rapid Transit rail system. In Lyon, France, we provided fiber-reinforced concrete, utilizing 21 metric tons of metal fibers, to fill in the bed under the 800 meters of rails comprising the city’s major tramline extension. In Trzebinia, Poland, we served as the main contractor for the design and reconstruction of a stretch of roadway, which was open to heavy vehicle traffic just five days after the placement of the concrete mix. In 2015, we were involved in the construction of infrastructure projects across 19 countries, encompassing more than 7.32 million square meters of installed concrete pavement.

We are industry leaders in the use of alternative energy and the management of natural resources. To reduce our environmental impact, we continue to convert society’s waste into more economical, eco-friendly alternative fuels for our cement plants. Through our use of alternative fuels—from used tires to processed municipal solid waste to biomass—we divert waste from landfills, lower our energy costs, decrease our consumption of fossil fuels, and thus reduce our overall carbon footprint. For example, in the UK, we opened a technologically advanced solid recovered fuel facility that will utilize regionally sourced waste to produce up to 200,000 metric tons of alternative fuel annually for our Rugby cement plant. Overall, in 2015, alternative fuels represented 26.6% of our total fuel mix, yielding annual savings of more than US$100 million. At year-end, 92% of our cement plants burned alternative fuels, avoiding the use of 1.9 million tons of coal.

To further minimize our carbon footprint, we continue our efforts to replace clinker with alternative cementitious materials and to increase our power consumption from clean energy sources. As a result of our carbon dioxide (CO2) reduction initiatives, we avoided more than 6.5 million tons of CO2 emissions during 2015.

Additionally, we are leveraging our industry-leading technical expertise and skills to build a strong renewable energy portfolio. In 2015, more than 16% of our cement operations’ power consumption was derived from clean sources of energy. Furthermore, we created ­CEMEX Energía, a division that is devoted to the development of a portfolio of sustainable power projects in Mexico with no significant capital commitments. The first milestone achieved by CEMEX Energía is a joint venture agreement with Pattern Development, a leader in developing renewable energy and transmission assets. The joint venture expects to build a portfolio of at least 1,000 megawatts of renewable energy projects over the next five years.

We protect biodiversity by responsibly managing the habitat within and around our global operations. Consistent with our common vision of integrating biodiversity conservation into our daily business operations, we renewed our global alliance with Birdlife International for three more years. Through our ongoing initiatives, we deliver meaningful, long-term benefits within and outside of our quarries for nature conservation. In Mexico, one of our successful projects identified priorities for biodiversity management and furthered scientific knowledge of the emblematic Golden Eagle. On the other side of the globe, a conservation project in the UK aims to reverse the fortunes of the Turtle Dove, an iconic bird whose population is currently halving every six years.

Wherever we operate, we strive to build mutually beneficial relationships with neighboring communities and other key stakeholders. Through our efforts, we avoid operational disruptions that might result from community grievances or employee injuries. In the process, we derive savings from reduced medical expenses, avoided health and safety related penalties, and lowered costs to train replacement employees and conduct accident investigations. Additionally, efficient human resource development not only builds a qualified workforce, but also diminishes employee turnover—decreasing our hiring and training costs while minimizing inefficiencies.

Consistent with our commitment to corporate social responsibility, we are partners in the development of our communities through our shared value initiatives. After reaching close to 7 million beneficiaries through our social and inclusive business programs, our goal is to benefit more than 10 million people by the year 2020. Among our efforts, we establish community centers for construction training and education and empower our neighbors at the bottom of the socio-economic pyramid through different home improvement and self-construction assistance initiatives such as our Assisted Self-Construction Integral Program, Construapoyo, Productive Centers of Self-Employment, and Patrimonio Hoy. Many low-income families not only lack access to financing to purchase building materials, but also require the technical skills needed to build safe, sustainable houses. Based on public-private partnerships involving local governments, non-profit organizations, and universities, these programs are designed to improve access to safe and affordable housing for low-income families by offering savings and credit support, training, and technical assistance to construct their own homes.

Thanks to our Patrimonio Hoy program, our company was included in Fortune’s first “Change the World” list, a ranking that recognizes 50 companies worldwide that have made a sizable impact on major global or environmental problems as part of their competitive strategy. In 16th place, we are not only the only Latin American based company, but also the only company from the construction materials sector selected for the list. Our Patrimonio Hoy program provides low-income families living in urban and semi-urban areas with access to building materials, as well as microfinancing, technical advice, and logistical support to assist participants in building their own homes. Since 1998, Patrimonio Hoy has provided affordable housing solutions to approximately 525,000 low-income families throughout Latin America, while representing a source of revenue for our company. As of 2015, Patrimonio Hoy has enabled more than US$300 million in household micro credits.

Furthermore, we possess the highest health and safety standards in our industry. Safety is our company’s top priority. Every country where we operate has a plan designed to achieve our common goal of zero injuries, “Zero for Life.” During 2015, we made positive advances, including a 30% reduction in fatalities and a 50% reduction in the frequency rate of employee lost-time injuries. However, we can do much better, and cannot accept anything short of a perfect safety record.

Local governments and organizations have recognized our safety initiatives across our operations. In the UK, we were recently awarded the Mineral Products Association’s highest honor for our outstanding employee health and safety practices. We also earned the Chartered Institute of Logistics and Transport Annual Award for Excellence in Vulnerable Road Users Safety. Similarly, in Nicaragua, the National Council of Hygiene and Safety at Work for the sixth time recognized us as the “Leading Company” for our preventive health and safety management systems. Likewise, in France, we received an award for our risk-prevention action plan, which was so comprehensive that the awards organization produced a video about our efforts to teach best practices in our industry. Spurred by these initiatives, we will continue building a better, safer future for our employees, customers, and communities.

 

19

countries where we were involved in the construction of infrastructure projects during 2015.

Value-added ready-mix concrete products
During 2015, our value-added products accounted for approximately 40% of our total consolidated ready-mix concrete sales.
Panama City, Panama

Concrete: A sustainable solution

Key sustainable attributes of concrete include:
Strength and durability
Low maintenance
Affordability
Fire-resistance
Low heat conductivity
Local production and use
Less solar heat absorption
Water management
 

Enhanced operating efficiency

Our Cement Operations Global Network significantly improved the efficiency of our cement kilns worldwide, from 84% in 2014 to 88% in 2015.

We are committed to build a better world, from our leadership in the use of alternative fuels to our “Zero for Life” goal to achieve zero injuries.

Rural Roads to Panama: A special pavement solution

Among the 9,000 inhabitants of Parita, Panama, is Miguel Villareal, a farmer who grew up in the region and witnessed his town’s development. “Even if we have machines, even if we have whatever, if the access roads aren’t functional, we can’t walk,” he says.

As part of our efforts to provide innovative solutions for all types of infrastructure needs, we brought Unicapa, our special pavement application for rural and difficult access roads, to Panama.

It involves placing cement bags in a chessboard pattern on a rural road and mixing the cement with the road’s existing material to create a single 17 to 25-centimeter thick layer of pavement. The initial project for Unicapa in Panama was the rehabilitation of the Camino El Limón, a road that Villarreal says he has known “since I was born.” This road was chosen because it serves various farms in the region and could potentially serve an entire community. With our technology, the goal is to keep this road trafficable year-round.

The potential benefits of this solution for rural communities are significant. A robust infrastructure that supports mobility and independence is indispensible for rural communities sustainability because it enables economic exchange and access to different social services. Adapted to local needs, Unicapa offers a more affordable, sustainable solution for country roads that are difficult to enter. For his part, Villarreal says he is pleased. “I think it’s been a very good help for us, the farmers. I never thought it would turn out the way it did. I trust that it will greatly help our economy.”

Camino El Limón road, rehabilitation works.

Sustainability Recognition

CDP Outstanding Carbon Disclosure in Latin America
CEMEX ranked second in the Latin American Climate Disclosure Leadership Index—the fourth consecutive year that CEMEX was included in CDP’s ranking of leading companies in the disclosure of environmental data and CO2 emissions performance.

Mexican Stock Exchange Sustainability Index
Since its inception in 2011, CEMEX has been one of only 30 companies chosen for the exclusive Mexican Stock Exchange Sustainability Index.

UNGC 100 Index
CEMEX remains the sole Mexico-based company selected for the United Nations Global Compact 100, a global stock index that combines sustainability and financial performance.

 
 
 
 
Thanks to our Patrimonio Hoy program, our company was included in Fortune’s first “Change the World” list.