“Executive profile… a common link of the HR platforms”

Alberto ValdesOHR Planning Director

March 2002

Last year was another record year for CEMEX, capping an extraordinary decade of growth, transformation, and profitability...

With operations in 33 countries and commercial relations with more than 60, CEMEX is consolidated as one of the leaders of the industry

Our leadership is consequence of a business model that incorporates four critical elements

• Focus on our core cement and ready-mix concrete business.

• Concentrate our presence in dynamic markets.

• Maintain our high growth through selective investments.

• Increase our leadership through technological innovation.

The HR Strategy alignment started five years ago and is now facing a new process of evolution

1997 1998 1999 2000 2001 2005

Some of the topics or processes found as common practices in global companies were:

• All companies rely on a Global HR Committee.

• Most companies actively manage the career of high potential executives.

• Clear tendency to hold individuals responsible for their own growth.

• Most companies set up development programs for new graduates.

• HR levers are linked to each other.

-Performance evaluation feeds the processes for high potential

executives and variable compensation.

-Selection tied to required skills and profile.

-Career and grooming plans focused on growth needs.

Top Management selected four topics as fundamental:

Question: How important are the following HR topics, and what is the current performance level?

(*) Routine functions (payroll, benefits, vacations, etc)

•Management of Key Executives Compensation systems Personnel selection•Training•Career planning•Performance evaluation Expatriate Management PMI processes support PMI processes support Human Resources Administration*Lesser

Importance

High importance

Performance

The first seven HR Platforms seek the development of CEMEX PotentialPerformance & Potential

AssessmentVenezuela

Variable compensationCentral

Developing ProfessionalsColombia

Global LeadershipCentral

Code of EthicsMexico

Selection and Job PostingMexico

Talent DevelopmentUSA

Set objectives for individual results measuring

Encourage highest degree of individual appropriation and contribution.

Development programs for first entry professionals.

‘97 ‘98 ‘99 ‘00 ‘01

Identify future leaders and ensure their professional growth

To align individual´s behavior and style to desired organizational values and practices.

Assure a correct talent profile to meet CEMEX needs. Encourage personal self-projection.

Ensure a solid executive base to face growth

The executive profile is a “common link” of the HR platforms

CEMEX Executive Profile

Selection and Job PostingPerformance &

Potential Assessment

Variable compensation

DevelopingProfessionals

Talent Development

Global Leadership

Code of Ethics

Discovery

CIMP

Succession Planning

Key competencies that define the CEMEX executive profile

Understanding of the circumstances of the general environment and that of the company for decision making that lead to the achievement of CEMEX‘s strategies.

Genuine willingness to work with others in a cooperative, assertive and transparent manner in the achievement of a common goal, putting group interests above those of the individual.

To develop opportunities for improvement of the business, within and outside one's own working environment, undertaking risks and overcoming obstacles.

Generation and development of ideas, considering internal and external context for creating and taking advantage of business opportunities in CEMEX.

Adaptation of behavior to the values, priorities and objectives of CEMEX, in search for the benefit of the different stakeholders.

Continuous commitment for stimulating learning and development of others, with the purpose of furthering their professional success.

Identify and maintain long term relationships with persons, groups and institutions, that contribute to the achievement of CEMEX's strategies.

Skills for managing and sharing relevant information , for decision making and learning in the organization.

Willingness to serve and anticipate the client's needs, both internal and external and to generate the necessary actions for satisfying them.

Strategic thinking

Teamwork

Entrepreneurial spirit

Creativity

Focus on stakeholders

Development of others

Development of alliances

Information Managementand Learning

Customer serviceorientation

In HR we are leveraging our core processes through the use of technology

HR Platform and Strategic Processes • P&PA• Developing Professionals• Compensation• GLP• Code of Ethics• Selection and Job Posting• Talent Development• Succession Planning• Discovery

HR Operational Processes • Organization• Personnel Administration• HR Information Management

HR e-enabling

Evolving to e-enabling environment

Evolving to e-enabling environment

• The success of any global company The success of any global company depends more and more on its human depends more and more on its human capital.capital.

• New tecnology will provide a New tecnology will provide a competitive advantage only to those competitive advantage only to those companies where human talent is companies where human talent is motivated, committed, and prepared to motivated, committed, and prepared to use it.use it.

• In order to cope with the speed of In order to cope with the speed of today’s global environment, organizations today’s global environment, organizations and its people must develope the and its people must develope the capabilities and willingness to constantly capabilities and willingness to constantly learn, share knowledge and innovate.learn, share knowledge and innovate.

In CEMEX we live a passion for change.