TITAN Group in numbers: � 13 countries� 14 cement plants� 44 quarries� 148 Ready mix plants� 5.640 direct employees� 73 million € for environmental investments since 2008

TITAN Group Profile

since 2008

TITAN’s fourTITAN’s four--pronged Strategypronged Strategy

•• Geographical Diversification Geographical Diversification -- We extend our business through acquisition We extend our business through acquisition

and and greenfieldgreenfield development into attractive new markets, to build production development into attractive new markets, to build production

scale and spread the risk of overscale and spread the risk of over--reliance on too few marketsreliance on too few markets

Governing Objective

scale and spread the risk of overscale and spread the risk of over--reliance on too few marketsreliance on too few markets

•• Continuous Competitiveness Improvement Continuous Competitiveness Improvement -- We implement new efficiencies We implement new efficiencies

throughout our business to reduce costs and compete more effectivelythroughout our business to reduce costs and compete more effectively

•• Vertical Integration Vertical Integration -- We extend our business into other product areas in the We extend our business into other product areas in the

cement value chain, gaining greater control over our markets and accessing cement value chain, gaining greater control over our markets and accessing

new profit opportunitiesnew profit opportunities

•• Focus on Human Capital and CSR Focus on Human Capital and CSR -- We develop and continuously improve We develop and continuously improve

our good relationships with all internal and external stakeholders for mutual our good relationships with all internal and external stakeholders for mutual

respect and understandingrespect and understanding

� In 2004 Zlatna Panega Cement was

acquired by TITAN Group

� TITAN implemented a long-term

modernization plan with total investments

exceeding EUR 85 million to enhance

operation efficiency and environmental

performance

� More than 230 people are currently

employed by TZP and the majority (88%)

� The first cement in Bulgaria was

manufactured in Zlatna Panega village in

1907. An Italian company built a small

cement factory next to the river, in

operation until 1923

� The cement was of good quality and

was used in the construction of the Sofia

Market Hall, the port of Varna, St.

Alexander Nevski Cathedral ... employed by TZP and the majority (88%)

are local citizens

� In 2004 - ISO 14001

� In 2004 - ISO 9001

� In 2009 - OHSAS 18001

� In 2010 – IMS ISO 9001:2008, ISO 14001:2010 & OHSAS 18001:2007

Training procedure - comprises a part of the documentation of the Integrated

System for Management of Quality, Environment and Health&Safety at

work, implemented in accordance with the requirements of standards BDS EN

ISO 9001:2008, BDS EN ISO 14001:2010 and BS OHSAS 18001:2007

“We aim to grow as a multi-

regional, vertically integrated

cement producer, combining an

entrepreneurial spirit and

operational excellence with respect

for people, society and

environment.”

TITAN Group Values and Governing Objective

Our Values:

� Integrity

� Know-How

� Value to the customer

� Delivering results

Business Priorities:

� Health & Safety

� Sustainable Development

� Community Relations

� Integrity & Transparency

� Delivering results

� Continuous self-

improvement

� Corporate Social

Responsibility

� Focus on Internal training programs and technical competences

development

TITAN recognizes the importance of people development. It is a way to

retain our people within the company, but it also helps employees to

keep up with a changing environment thus we ensure our future and we

are ready for the forthcoming challenges.

developing

people

changing

behavior

growing

business

1.Goals setting & planning

Performance improvement is an ongoing process aiming at

employee improved performance and professional

development through the appropriate support from

supervisors, in line with company objectives.

Two key steps:

Performance improvement

process

2.Monitoring & feedback

3.Acesses performance

4.Rewards & performance recognition

Two key steps:

� Assessment of employee annual performance

� Elaboration of development priorities

(development plans) based on the assessment

Total number of man hours

training distributed during 2012 –

12 201

� Training activities focused on

Health & Safety – more than

7000 man hours

� Technical Know-How and core

competencies development –

1235.5

1451

1050.5

7094

1195

145 30Management / Managerial Skills Technical Know-How and Core Competence Non-Technical Skills & Specialization Health & Safety training

Environment training

Foreign Languages

Other

Distribution of training hours per subject 2012

Total: 12201

hours

competencies development –

1451 man hours

� Environmental training - 1195

man hours provided

For Q1 of 2013 the total training

hours are 3 028

88.5

428

128.5

2291

24 34 34

Management / Managerial Skills

Technical Know-How and Core Competence

Non-Technical Skills & Specialization

Health & Safety training

Environment training

Foreign Languages

Other

Total: 3028 hours

Distribution of training hours per subject Q1 2013

� By implementing Cmentors program in Zlatna Panega we are aiming to support our

key employees to become excellent professionals and highly-valued Cement mentors

� Develop the capability of our people and plant teams to achieve our business

objectives

The three pillars of Industrial Competencies Development Program are:

Industrial Industrial Competences Competences FrameworkFramework

Plant team Plant team assessmentassessment

Industrial Industrial EducationEducation

� Creating a development path

Industrial education

Job profiling, elaboration of INDUSTRIAL COMPETENCIES FRAMEWORK

and benchmark a couple of plant positions

FOUNDATION AUTOMATION TECHNOLOGY

SKILLS/ COMPETENCIES ON THE JOB

� Basis of the main points of process measurements in a cement plant - temperature, pressure, flow, level, power, etc.

� Basis of the main principles of measurements in temperature, pressure, flow, level, power etc.

� Basis of Dosing systems and scales

� Gas analysis in basic. Extractive and In Situ (in position) types of measurement

� Automated systems. What is PLC control,

� Understanding of flow sheets

� Using of HMI in CCR and archives information about process, analyses of data collected and alarams for malfunctions

� Using of environmental emission evaluation software

� Automated systems. What is PLC control, control loops and how we can optimize productivity and decrease expenses

� Environmental emissions evaluation systems

Development of INDUSTRIAL COMPETENCY MATRIX

Safety Mining Production Process Environment Quality

Maint.

Methods

Mech.

Technology

Elect.

Technology Automation

Eng./

Designs Proj. Mgmt

Maintenance

Maintenance Manager

Mechanical Maintenance managerLevel II Foundation Level I Level II Level II Foundation Level I Level II

Head of Mech. Maint. Kilns & Coal Mill SectionLevel I Foundation Level I Level II Level II Level I

Head of Mech. Maint. Crushers & Raw Mills SectionLevel I Foundation Level I Level II Level II Level I

ZLATNA PANEGA Industrial Competencies Matrix

Head of Mech. Maint. Cement Mill & Packing SectionLevel I Foundation Level I Level II Level II Level I

Head of Maintenance Planning and Reliability groupLevel II Foundation Foundation Foundation Foundation Level II Level II Foundation Foundation Level I Level II

Preventive maintenance - plannerLevel II Foundation Foundation Level II Level I Foundation Foundation Level I Level II

Electrical Maintenance managerLevel II Foundation Foundation Level I Level II Foundation Level II Level II Level I Level II

Head of Power Supply & Distribution and electrical repairsLevel II Foundation Foundation Foundation Level II Level II Level I Level I Level II

Electrical engineerLevel II Foundation Foundation Foundation Level I Level II Level I Level I Level II

Head of Process Automation & Instrumentation SectionLevel I Foundation Foundation Foundation Level I Level I Level II Level I Level I

Plant team assessment steps:

� Plant teams complete their self-assessment booklets

� Assessment is submitted for validation by a Committee

Plant Profile

1What is the age of the plant ? Original construction year ? Year of most recent addition or renovation ?

2What is the average age of production line equipment ?

Getting to know the cement plant

Maintenance:

2

3

Number of kilns ? Process Type ? In operation ? Rated capacity versus actual production rate ? Clinker

cooler type ?

4

Kiln gases vent (baghouse /precipitator) specifications ? Cooler vent (baghouse/ precipitator)

specifications ? Number and type of mills ? In operation ? Rated capacity versus actual production rate ?

6Obtain a copy of the plant layout / flow sheet.

5 Number and type of mills ? In operation ? Rated capacity versus actual production rate ?

Name: John Smith

Position: Automation engineer

Department: Maintenance

1. Safety

2. Mining

3. Production

4. Process

5. Environment

Industrial CompetenciesDevelopment Priorities

X

X

X

X

X

H

H

H

15

5. Environment

6. Quality

7. Maintenance Method

8. Mechanical technology

9. Electrical Technology

10. Automation

11. Eng./Designs

12. Project Management

My profileRole Profile

X

X

X

X

X

X

H

� Classroom training

Create the ‘right’ blend of learning tools, in the ‘right’ order

� Self-study

� Networking & coaching

� All new comers and engineers with experience up to 4 years will go through

Foundation level & acquire solid knowledge of Cement

production, operation, maintenance, as well as H&S and Environment

protection

� Recognize top experts and create a pool of internal trainers, further develop

communication and presentation skills to become Cement Mentors and

transfer K-H within the Group

� Identify, motivate and give opportunity to individuals, eager to learn and

grow to become a Group asset

� Keep and transfer K-H in the Group

� Retain our Key People

� Reduce training cost

� Increase operation efficiency

� Leading indicators for Safety Performance

� Risk assessment of all jobs and activities

� Data Collection to measure performance & progress vsKPIs agreed (# of tools Safety Audits findings, Stop Cards, Near miss reports)

Health & Safety

TRAINING

KPIs

Risk Assessment

Procedures development

miss reports)

� Procedures development

Step by step to improve the safety at work and radically to change the Safety Performance

Assessment

Performance assessment

development

Leading Indicator2011 Matrix Weight

Factor

Jan2011

Feb2011

March

2011

April2011

May2011

June2011

July2011

August

2011

September

2011

October

2011

November201

1

December201

1

Annualy

Green area Yellow area Red area

1. Number of UA reported in the audit+Stop card /working hours x 1000

<1 1-3 >3 1 3 4 5 5 4,5 3 3,6 3,24 4 4,67 4,79 5 4,15

2. Number of UC closed(m&h)/ UC(m&h) found per month

90-100% 70-90% Less than 70%

2 34% 4% 1% 12% 25%11,1% 10%7,24% 12,3% 20% 28,57% 17,3% 15,2%

3. Percentage of audit completed / audit planed

85-100% 70-85% Less than 70%

2.5 100% 100% 92% 108% 100% 93% 108% 108% 125% 125% 108% 100% 105%

4. Percentage of NM 80-100% 65-80% Less than 1 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%4. Percentage of NM Investigated/close/ NM total per month

80-100% 65-80% Less than 65%

1 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

5. Number housekeeping findings 0-50 50-150 >150 1 48 73 58 69 54 40 51 47 49 69 49 39 53,8

6. Number of STOP cards filled rigtly

>50 50-40 <40 2 77 119 137 99 50 112 126 61 67 75 81 32 86,3

7. Number of safety training/person hours x 1000

>5 3-5 <3 2 4 6 13 22 5 5 3 23,46 7,87 18,29 6,21 10,6 10,36

8. Number of NMR/month Above 30 20-30 Less 20 2 31 20 39 52 24 31 39 25 46 13 60 53 36

9. Number of contractors incident 0 1-3 More than 3

1 1 3 2 2 1 0 0 0 0 0 0 1 0,8

10. Summary >47.8 47,8-38.8 <38.8 14.5 47.9 50.2 53,8 56,5 42.6 47,9 53,8 45,07 50,5 50,9 53,5 42.8 49,47

Environment awareness program - joint project with

Regional Environmental Center (REC).

Aim:

� Development of integrated approach towards

environment protection on company level by

introducing training for all ZLP employees

� Stakeholder engagement through introduction of

extended environmental educational program in

local schoolslocal schools

Results:

� Tailor made, 10 modules program

developed, more than 50 employees trained

during 1st phase

� Training of teachers in schools of Lovech

municipality to use Green Pack tool (developed

by REC); Printing and submitted of 1000 copies

funded by the Ministry of environment and Titan

THANK YOU!THANK YOU!