Suez Cement Sustainability at the foundation of Suez

Suez Cement Sustainability at the foundation of Suez Group Cement’s strategic development Bruno Carré Managing Director Suez Cement Group of Companies

Suez Cement at a glance The largest cement producer in Egypt and part of Italcementi Group, the fifth’s world cement producer An industrial network composed by 5 cement plants, 2 terminals and 20 concrete batching units An overall staff of more than 3, 000 direct employees in cement and ready mix concrete Strong commitment to Sustainable Development Suez Cement Group A production capacity of approximately 11 million tons per year Listed on EGX 1

Suez Cement Group Sustainability Create value with the highest standards of business integrity, protecting the environment, improving life at work and engaging with local communities. 4

Suez Cement Group Sustainability at the foundation of Group’s strategic development Economically and resource efficient, low impacting, and socially inclusive solutions are strategic priorities to develop our business: “… no source of value, whether related to human beings, natural or financial resources, intellectual capacity and use of time, shall be neglected or wasted”. q short term targets for 2015 q medium term ambitions for 2020 q long term vision for 2050 5

Suez Cement Group The Group’s path towards sustainability 2000 From Italcementi Group founder member of the Cement Sustainability Initiative, (World Business Council for Sustainable Development) 2003 2007 Sustainable Development Report based on indicators provided by the Global Reporting Initiative 2010 The new organization of the principles of Italcementi Group commitment was launched: from a “mother” policy dedicated to Sustainability seven other policies derive focusing on Safety, Human Rights, Environment, Energy, Social Initiatives, Health and Quality. 2013 In 2013 Suez Cement joined the Global Compact, the United Nations initiative for businesses committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and ethics. Group Sustainable Development Department was created 6

Suez Cement Group Innovation: technologies and materials Innovation dedicated to sustainable solutions is our means to build competitive advantage Green product portfolio improvements Technology improvements q Low energy clinkerization q Use of recyclable raw materials q Low CO 2 emission products and processes q Reduced water consumption Design Light Drain Clime Active 8

Suez Cement Group Environment Safeguarding of the environment by pursuing the harmonious integration of each industrial plant with its landscape and developing innovative technologies to save natural resources and use renewable energy sources 9

Suez Cement Group Environment Since 2005, SCGC invested more than LE 500 million. All SCGC plants have considerably lowered their dust emission rates to below industry and governmental limits. All SCGC plants are ISO 9001 and ISO 14001 certified. Suez Cement is also taking a leadership role in solving local challenges, such as transforming municipal waste into fuels. 10

Biodiversity Plan Suez Cement Group In 2014, SCGC finalized its first Biodiversity Plan (one of the first reports of its kind in Egypt) in co-operation with Ain Shams University’s Zoology Department at the Helwan Limestone Quarry, the largest SCGC quarry. The program's aim was to analyze and monitor biodiversity levels at the quarry in comparison with surrounding areas. The partnership, renewed for another two years, gives the opportunity to better understand the ecosystems and environmental changes, as well as protecting and restoring the habitat and related living species, while taking into consideration the requirements of mineral and raw material extraction. 11

Suez Cement Group Energy Move toward a low-carbon economy providing effective large-scale responses to climate change. 12

Climate and energy Suez Cement Group SCGC’s achievements and targets: Ø improving thermal efficiency of processes (reduction achieved 10% to increase to 15%) Ø extending use of alternative fuels and biomass -trees trimming, cotton stalk- (achieved 6%, target 15 -20% of total SCGC’s fuel) Ø increasing the use of alternative raw materials and blended cement (achieved 15%, target 20 -25%) Ø reducing consumption of electricity (achieved 10% to increase to 15%) Ø reducing CO 2 footprint (achieved 5%, target 15%) 13

Suez Cement Group Our path towards alternative fuels utilization 2007 2008 Surveyed available wastes establishing a database for 17 kinds of wastes from different industries in Egypt. Selected 6 kinds of wastes suitable to be utilized as alternative fuels (rice hay, cotton straw, corn cop, sewage sludge, RDF & petroleum wastes -oil bas mud and sandy oil- ). The Group got the necessary permissions from the Authorities to burn biomass, RDF & sewage sludge in Kattameya, Suez and Helwan plants. 2011 Started to burn AF in Kattameya plant. 2012 Started to burn AF in Helwan and Suez plants 2014 The Group got the necessary permissions to burn Biomass and RDF also in Tourah plant 14

Suez Cement Group Energy via refuse-derived fuels (RDFs) New waste-processing plant, located inside Kattameya cement plant, that turns pre-sorted waste into fuel. The facility is the first in Egypt and Italcementi Group, it boasts state-of-the-art equipment and technology. The project, which took almost a year to complete, was a joint effort between Suez Cement and CTG worth 5 million euros. The scheme is part of Suez Cement’s strategy to boost the amount of energy it acquires via refuse-derived fuels (RDFs). The facility is being built in compliance with Egyptian environmental law and is expected to process 35 Kt of waste and provide up to 20% of the fuels required by the plant. 15

Power via renewable energies Suez Cement Group Italgen, the energy generation arm of Italcementi Group, is to invest 140 million euros in Egypt to build a station that will generate wind power at a capacity of 120 megawatts. The energy generated from the wind power project in Egypt will be used in the production processes of Suez Cement Group of Companies. Italgen’s project is the first privately owned development of a wind farm in Egypt, and will be located along the shores of the Red Sea in the Gulf El Zeit area. 16

Suez Cement Group Social initiatives Build relationship with stakeholders based on mutual commitment, active partnership, trust, openness and long-term cooperation. 18

Suez Cement Group Suez Cement major partners 19

Giving back to the community Suez Cement Group Education: Supporting programs that create a suitable and healthy place where children can grow and become active citizens in the future Vocational training: Promoting technical and vocational education, providing on the-job training and hiring graduates from the program Healthcare and research: q Revamping the Helwan Public Hospital q Fundraising treatment systems and research 20

Suez Cement Group “A company that looks to the future, encourages and supports economic and industrial development focusing on the preservation of natural and cultural resources” 21

Suez Cement Group Thank you!