Escenarios de gestión del modelo bioeconómico de la GSA 06

Employees worldwide

At the end of 2013, the number of employees at HeidelbergCement stood at 52,560 (previous year: 51,966). The increase of 594 employees essentially results from two opposing developments. On the one hand, around 750 jobs were cut in the North America Group area, in Benelux, and some Eastern European countries in connection with efficiency increases in sales and administration, location optimisations, and capacity adjustments. On the other hand, just under 1,000 new employ- ees were hired in growth markets such as Indonesia and Central Asia. Furthermore, the number of employees rose by more than 300 because of the increase of our share in the proportionately consolidated cement company Cement Australia and the acquisition of the remaining 50 % in the hitherto proportionately consolidated company Midland Quarry Products, United Kingdom.

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Employees by Group areas

31 December 2012 2013 Change

Western and Northern Europe 13,438 13,484 0.3%

Eastern Europe-Central Asia 9,435 9,302 -1.4%

North America 11,001 10,781 -2.0%

Asia-Pacific 14,686 15,601 6.2%

Africa-Mediterranean Basin 3,349 3,331 -0.5%

Group Services 57 61 7.0%

Total 51,966 52,560 1.1%

Personnel costs and social benefits

Expenditure on wages and salaries, social security contributions, costs of retirement benefits and other personnel cost fell by 1.2 % in comparison with the previous year to €2,302 million (previ- ous year: 2,331). This corresponds to a share in revenue of 16.5 % (previous year: 16.6 %). The increase in personnel costs resulting from the acquisitions and business development was more than offset by opposing exchange rate effects and job cuts in some countries.

Personnel costs

€m 2012 2013 Change

Wages, salaries, social security costs 2,222.4 2,199.2 -1.0 %

Costs of retirement benefits 87.5 80.0 -8.6 %

Other personnel costs 20.6 22.6 9.7 %

Total 2,330.5 2,301.8 -1.2 %

Communicating with employees

Qualified and motivated employees are an important prerequisite for the sustainable success of HeidelbergCement. Identifying our employees’ talents, developing them, and – in competition with other companies – retaining those employees within the Group are therefore at the core of the Group-wide personnel policy. This is supported by the HeidelbergCement competence model, which defines the essential professional and personal capabilities and skills that are critical for the success of our business. It enables the respective superiors to perform systematic, Group- wide assessments of performance and potential in accordance with standardised regulations and serves as a basis for strategic development of managers and successor planning. Superiors and employees discuss development opportunities and prospects within the framework of structured appraisal interviews. The dialogue is primarily targeted at upper and middle management, those in specialist roles, and future executives. We aim to achieve the following three goals:

– to internally fill key positions with top-class candidates worldwide, – to develop top talent at HeidelbergCement in a targeted way, and

– to retain employees in the Group for the long term by means of personalised development planning.

On-going training

Sustainable personnel work means consistently investing in training, i.e. employing and training qualified talent. The proportion of apprentices in Gemany is 6 % (previous year: 6 %). The reten- tion rate of these apprentices stands at 82 % (previous year: 82 %).

Technical skills are essential in ensuring the functionally sound operational management of process technology and maintenance in our plants. In addition to technical training, we also offer master classes every year at the German Cement Works Association (Verein Deutscher Zementwerke e.V.).

As in the previous year, a focus of our training programmes throughout the Group was on occu- pational safety, which made up around 46 % of the total training measures. Other areas of focus were specialist training (30 %) and the training of our managers (9 %).

Our extensive training programmes in virtually every work area are characterised by practical and business-oriented learning and enable our employees to develop their skills.

Management training

The motivation and skills of our managers play a crucial role in determining how well Heidel- bergCement positions itself among its global competitors and how well-prepared the Group is for future challenges. In order to prepare our managers for their future tasks, we offer training programmes tailored specifically to the needs of our Group. This applies both to traditional topics such as strategy, leadership, and management, or the method of capital expenditure budgeting, and to special training topics, for instance in the area of technology. Uniform training content ensures that a common understanding of strategy, integrated management approach, and leader- ship is developed everywhere.

A strategic Group initiative is to further develop the skills of our senior managers. For this purpose, we consistently develop our “Summit” programme each year, in close cooperation with Duke Corporate Education. So far, more than 300 senior managers from 30 countries have already taken part in the three-stage curriculum focusing on general management and leadership, which takes into account global, regional, and local issues. Members of the Managing Board partake actively in all modules through discussion forums and with their own presentations. The mix of theory and practice is a key factor in the programme’s success, and its ongoing evaluation and adjustment contributes to the fact that the programme is highly valued by the participants.

Securing and advancing future executives

In the reporting year, we consistently pursued our efforts to advance future executives. We offer highly motivated and qualified university graduates international trainee programmes focusing on the following areas: technology, sales, finance, personnel, purchasing, and IT. We also con tinued to work intensively on expanding our programmes for the advancement of future executives and strengthening our recruitment of university graduates and graduates with first professional experi- ence worldwide. In 2013, we hired 263 university graduates. Currently, more than 700 employees take part in programmes which prepare them for more advanced tasks.

In 2011, we started a special programme for highly qualified engineers in the cement business as a pilot project in Europe and Central Asia, in order to prepare these employees for senior engineer- ing positions. Upon completion of the “Engineer in Training” programme, the engineers spend several years completing specifically defined training stages in technical fields at various plants both in Germany and abroad – supplemented by training in general management and leadership. In 2013, we began to extend this programme to other Group areas.

During the reporting year, the Aggregates Academy expanded its employee training offer in the aggregates business line. More than 1,000 participants from our aggregates business manage- ment team have been trained in over 70 courses in 18 countries. The target group of the training offered by the Aggregates Academy comprises plant managers, managers, and professionals from quality control and sales. Further “hands-on” training modules are regularly conducted at the plants to ensure essential learning objectives are rapidly put into practice. All of our programmes are geared towards attracting talent and retaining it within the Group as well as directly conveying knowledge and skills that are decisive for the success of our Group.

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Demographic development

Our Group, too, is faced with the consequences of demographic change. Around 13 % of our em- ployees are younger than 30. The majority of the employees are aged between 30 and 49, making up around 53 % of the Group’s total workforce. 34 % of our employees are above 50 years of age. We are responding to the effects of demographic change with numerous measures adapted to regional requirements. In Germany, for example, we have continued to develop our health management activities and have incorporated them in the “FIT for LIFE” initiative. It includes a prevention programme for the early diagnosis of illnesses and risk factors, but primarily focuses on the initiative of individuals to adopt a healthy lifestyle. This service covers, among other things, colon cancer screening, flu vaccinations, special health days, and lectures about health. In the future, health management activities will continue to focus on the prevention of typical age-related health risks and change in awareness. We are therefore specifically promoting company sports activities for all age groups.

Diversity as a factor for success

In the Group-wide personnel policy, we consciously aim for a balanced mix of diverse personalities, skills, and experience when putting together teams of employees. We understand diversity as a management concept, which through the inclusion of various cultures, talents, and levels of experience ensures that the composition of our workforce mirrors our presence in the international markets, our customer structure, and our business environment. We aim to achieve this in the following ways:

– with local management at the individual production locations, resulting in the strong interna- tional composition of our management teams around the world,

– with an international workforce at the Group headquarters,

– by ensuring that the composition of our management reflects the structure of the workforce, e.g. proportion of men and women (gender diversity),

– by forming teams with a wide range of experience and skills, and – by ensuring that the age structure of the workforce is balanced.

The goal is to advance and attract highly qualified and committed employees around the world who can bring various social and professional skills to our company and thus contribute to the success of the Group.

The international composition of our management team enables us to benefit from a broad range of experience and different cultural backgrounds, thereby allowing us to respond more flexibly to both global challenges and local market needs. The proportion of local managers at the upper management level remains unchanged at around 80 %.

At the Group headquarters, we consciously aim to ensure that the workforce is composed of employees from the countries in which we operate. We benefit considerably from their local knowledge and this also facilitates cooperation with the local personnel. We have nearly 750 em- ployees at the headquarters and at our technical centers, the Competence Center Materials and Heidelberg Technology Center in Heidelberg and Leimen, with more than 150 of these employees representing 44 different countries.

For our numerous foreign employees at the Heidelberg and Leimen locations, we have established the “Expatriate Network”, which is about helping our employees to help themselves. The company supports this network of employees, friends, and family members to help with the integration into the Rhine-Neckar metropolitan area, e.g. in looking for accommodation, dealing with administrative authorities, nursery/school affairs, etc.

To aid diversity, we believe it is important for management positions to be held by both men and women, thereby providing a true reflection of our employee structure. Within the Group, women made up 14 % of the total workforce and held 9 % of the upper management positions in 2013. In Germany, women represent 16 % of the total workforce and hold 7 % of the upper management positions. Together with other DAX companies, HeidelbergCement signed a self-commitment in 2011. Our goal is to more than double the proportion of women in management positions in Germany to 15 % by 2020. To achieve this goal, we will be devoting increased attention to our programmes for the advancement of future executives. The proportion of women in these pro- grammes is around 25 % across Germany. At the start of 2013, we consciously publicised the fact that we value diversity by signing the Diversity Charter to acknowledge the activities we have carried out to date.

The “Global Ladies Network @ HC Group” is an initiative that brings together women in manage- ment positions worldwide both virtually and face-to-face. It allows a regular, informal exchange of ideas on individual career development and aims at promoting female future executives. We consider the diversity of our workforce and management team and the clear focus on commit- ment, professional expertise, and conformity with our corporate values to be a decisive advantage in global competition.

Work-life balance

In the race for the best employees, we adapt ourselves globally to changing lifestyles. In terms of what we offer to encourage a good work-life balance, we focus on models such as flexitime, part-time, and leave of absence. The part-time ratio at HeidelbergCement AG is 10.7 %. Because of the small size of our locations, cooperation with external networks has proven itself for ex- ample in terms of children’s daycare, caring for family members, or holiday camps for children. Employees benefit from having easy access to a professional and flexible network at reasonable costs. As part of our “FIT for FAMILY” initiative, we have entered into cooperations with daycare centers for the Heidelberg and Leimen locations. These arrangements allocate us our own quota of places that can be offered to our employees.

Result-oriented remuneration systems

If you expect performance, you need to create a suitable environment. This includes also an attractive remuneration system. Alongside fixed salaries governed by a collective agreement or an individual work contract, HeidelbergCement AG employees also receive variable remuneration elements based on their individual performance and on corporate success. In the case of managers, we consciously aim to achieve a high variable element as part of the total remuneration in order to take into account, in a clear and direct way, collective and personal performances as well as corporate success. The employees in our foreign subsidiaries benefit from attractively designed remuneration systems that relate to the respective local market conditions. For our 160 top managers we have launched a long-term bonus plan for 2013–2015/16 which follows the same targets as the long-term bonus plan for the Managing Board.

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