Norcem and HeidelbergCement Northern Europe

Presentation Reykjavik

March 22, 2012

Jack O. Haugom

Export director

Cement RM Concrete Aggregates

HeidelbergCement in Norway

Norcem NorBetong NorStone

Alternative fuel

Renor

Cement and clinker sales

Cement and clinker sales (in 1,000 ton)

2011

Baltics 501

Denmark 141

Norway 1,498

Sweden 2,030

Cement exports 768

Clinker exports 1,004

Northern Europe, total 5,942

Largest cement producer in the

region with 6 plants

Cement and clinker sales close

to 6 million tonnes

A large share of the cement

production is exported

– Main export markets:

Africa, Russia, USA and Europe

Cement and clinker production

Production in 2011 (1,000 tons)

Plant Clinker Cement

a) Kjøpsvik, Norway 415 383

b) Brevik, Norway 1,000 1,164

c) Skövde, Sweden 413 495

d) Degerhamn, Sweden 281 304

e) Slite, Sweden 1,909 1,748

f) Kunda, Estonia 719 459

Northern Europe, total 4,737 4,552

a

b

c

f

e

d

Production processes

Norcem AS, Kjøpsvik, Nordland

Kommentarer

Norcem AS, Brevik, Telemark

Dette er bra

Burning process / alternative fuel

CaCO3 CaO + CO2 Calsination

Fuel to the Calsinator demands less pre- treatment (< 50 mm):

– 80 % alternative fuel / 20 % coal

Fuel for the main burner require better preparation (solid fuel < 20 mm):

– Industrial Liq Waste (from Renor), waste oil etc.

– 20 % waste derived fuel / 80 % coal

– Long term goal to increase to 60% alternative in main burner

Calsinator

60 % of energy

Clinker zone

40 % of energy

Alternative fuel dev, Norcem Brevik

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

To

n

0 %

10 %

20 %

30 %

40 %

50 %

60 %

Ton % Alt. Fuel

Trinn 2:

NOAH avtalen.

Beslutning om å

oppgradere anlegget for

alternativt brensel.

Nytt anlegg i drift

Trinn 3:

Ovn 5 stenges, ombygging av ovn 6

Trinn 4.

Pfister prosjekt. Økte volumer til hovedbrenner

Alternative fuels

We strive to increase our usage of alternative fuels

Alternative fuels can be: – Biomass, such as animal meal, animal feed, dried

sludge, woodchips, charcoal

– Derived waste from household/industry such as paper and plastic

– Other waste materials such as car tyres, waste oil

– Hazardous waste, chemicals

Alternative fuels reduces need for fossil fuel

Alternative fuels is an environmentally friendly way to take care of waste – Reduce emissions of CO2

– Reduces waste deposits

0 % 20 % 40 % 60 % 80 % 100 %

Brevik

Degerhamn

Kjøpsvik

Kunda

Skövde

Slite

Fossil fuels Alternative fuels Biomass

0,40

0,50

0,60

0,70

0,80

0,90

1,00

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Kalsinering Fossilt Biomasse

CO2 emission per ton clinker, Norcem Brevik

Our sustainability ambitions

1. Giving the highest priority to health and safety:

We strive for zero accident, injuries and occupational illnesses

2. Delivering a prominent positive contribution to biodiversity:

We aim to establish a leadership position in the development of biodiversity and

revegetation at our mining and quarrying sites.

3. Working for sustainable construction:

We deliver sustainable building materials which contribute to the welfare of our

society and to our environment, during and after their lifetime.

4. Using waste as a resource:

We minimise the use of natural resources and we offer solutions for sustainable

waste management.

5. Protecting the climate:

We lower the greenhouse gas emissions and we deliver solutions for adaptation to

climate change impacts.

6. Reducing other environmental impacts:

We aim to be best in class in managing and minimising environmental impacts.

Norcem innenlandsmarked

Prosentvis fordeling Cem I - Cem II

0

10

20

30

40

50

60

70

80

2005 2010 2015

Cem I

Cem II

0,7

0,72

0,74

0,76

0,78

0,8

0,82

0,84

0,86

0,88

2005 2010 2015

Klinkerfaktor

0

200

400

600

800

1000

1200

1400

1600

1800

-94

-95

-96

-97

-98

-99

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Domestic cement sale 1994-2011

Norcem’s Cement types, declared values

Norcem

Standard FA

Norcem

Anlegg FA

Norcem

Anlegg

Norcem

Industri

Norcem

Standard

1 day

strength

22 13 18 32 21

2 days

strength

31 22 30 40 32

7 days

strength

41 35 46 49 42

28 days

strength

52 53 60 57 52

Blaine 450 370 360 550 370

Ind

21,4 %

Diverse

0,7 %

Anl

0,7 %Anl FA

9,2 %

Std FA

56,7 %

Std

9,5 %

Norwell

1,7 %

Ind

23,5 %

Diverse

0,8 %

Anl

2,9 %

Anl FA

8,6 %

Std FA

50,8 %Std

11,1 %

Norwell

2,4 %

2011 2010

Sales per product 2010 - 2011

Std

FA Anl FA Anl Std. Ind SR

Norwell

G Masonry White Year

850 138 10 143 321 4 26 2 4 2011

677 114 38 148 313 4 32 2 5 2010

Cement sale per segment

Varer/diverse

12 %

Elementer

15 %

Ferdigbetong

67 %

Offshore

2 %

Miks/stab

2 %

Småsekk

2 %

Certifications

Norcem AS, Certificates (product and environment):

NS-EN ISO 9001 (eng) Quality Systems

NS-EN ISO 14001 (eng) Environmental System

API Q1 Quality programs

Norcem AS, Brevik

API Q1 Well Cement

EU Anleggssement (eng)

EU Anleggssement FA (eng)

EU Industrisement (eng)

EU Konstruksjonssement SR

EU Standardsement (eng)

EU Standardsement FA (eng)

Certificate on aggregates for asphalt

Norcem AS, Kjøpsvik

EU-Standardsement (eng)

EU-Standardsement FA (eng)

EU-Industrisement (eng)

Certificate on aggregates for asphalt

Certifications cont’d

In addition Norcem AS maintain

Russian Federation Certification System GOST R for

export of cement to Russia

SONCAP Certification for export of cement to Nigeria

Product and plant info to NYDOT related to export to

New York

Distribution bulk cement

Terminals

Plants

Alta

Sjursøya

Stavanger

Kristiansand\Vige

Førde

Ålesund

Molde

Brevik

Bergen

Ølen

Slemmestad

Tromsø

Bodø

Mo i Rana

Levanger

Trondheim

Kjøpsvik

Karmøy

Sola

Tovik Sigerfjord

Vadsø

Farsund

Cement distribution - Logistics

HeidelbergCements views Northern Europe

as one market and aims to optimize the

transportation of cement within the region

An extensive net of terminals provides effective

access to our markets

– 1 terminal in Denmark

– 1 terminal in Latvia

– 1 terminal in Lithuania

– 34 terminals in Norway

– 16 terminals in Sweden

In Norway and Sweden most of the production

is shipped to terminals by boat

From Kunda, cement is mainly transported by

road or railroad

Slide 21 General presentation 2012 – Northern Europe

Updated January 5, 2012

Alta

Sjursøya

Stavanger

Kristiansand\Vige

Førde

Ålesund

Molde

Brevik

Bergen

Ølen

Slemmestad

Tromsø

Bodø

Mo i Rana

Levanger

Trondheim

Kjøpsvik

Karmøy

Sola

Tovik Sigerfjord

Vadsø

Farsund

Standard

Industri

Anlegg

Standard

Standard

Industri

Std. FA

Std.FA

Standard

Std.

Industri

Std. FA

Anlegg

Std.

Industri

Std. FA

Anlegg

Standard

Industri

Std.

Std. FA

Anlegg

Standard

Industri

Std.

Industri

Std. FA

Anlegg

Standard

Industri

Std.

Industri

SR

Anlegg

Mur

Norcem AS, experienced exporter

____________________________________________

>> Export of clinker to Ghana, W-Africa, started 1960,

>> First European company shipping cement Transatlantic

1966 to New York Terminal, 2004 (222.’ tons Kjøpsvik to NY)

>> Export to Denmark, CEM I 52,5, since 2005, ongoing

>> Export to N-W Russia, Murmansk – Arkhangelsk, start 2006,

CEM II Std FA

>> Export to Iceland, now resuming export from 2007

Export to Iceland/ Reyðarfjörður

0

10000

20000

30000

40000

50000

60000

70000

2003 2004 2005 2006 2007

Std FA

Clinker

Norcem AS - Summary

Qualified and esteemed producer, for construction cements and special cements, ref. certifications mentioned

Responsive to market proposals and requests

Modernized and competitive cement plants

Norcem has 50y of experience exporting to distant markets

Pioneer in Africa and the USA, 1960’ies

Norcem have the capacity and the capability in shipping operation

To be a reliable supplier takes good forecasts and good planning

Norcem will give priority to and serve the Icelandic market with well proven cement types

Norcem is prepared to assist the Icelandic customers with technical know-how in change-over phase in order to keep concrete as a competitive building material based on our cements

Thank You for your attention !

Locations in Northern Europe

Cement plants 6

Cement terminals 54

Aggregates 43

Ready-Mixed Concrete 103

Precast 7

Operating companies in Northern Europe

Cement Baltik Saule SIA (LV)

Cementa AB (SE)

Cementa Research AB (SE)

DK Cement A/S (DK)

Gerdukas (LT)

AS Kunda Nordic Tsement (EE)

Norcem AS (NO)

RMC (Ready-Mixed Concrete) Betong Sør AS (NO)

Betong Øst AS (NO)

Betongindustri AB (SE)

DK Beton A/S (DK)

HC Betoon AS (EE)

HC Betons SIA (LV)

HC Pumps & Trucks (DK)

NorBetong AS (NO)

NorBetong Pumping AS (NO)

Precast Abetong AB (SE)

Alrashid Abetong (SA)

Perstrup Betonindustri A/S (DK)

Precon Polska SpZoo (PL)

Alternative Fuels HeidelbergCement Miljö AB (SE)

Renor AS (NO)

Reci Eesti AS (EE) Aggregates Garkalnes Grants SIA (LV)

Nord-Fosen Pukkverk AS (NO)

NorStone AS (NO)

Sand & Grus AB Jehander (SE)

Key figures 2011 – Northern Europe

2,762 employees on more than 200 locations

1026 million Euro gross sales

– Cement and clinker: 485,5

– Aggregates: 166,1

– Ready-Mixed Concrete: 329,7

– Precast : 155,7

100,8

14,5

34,9

17,6

Cement

Aggregates

RMC

Precast

OIBD per business line (million Euro)