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

1. “Executive profile… a common link of the HR platforms” Alberto Valdes OHR Planning Director March 2002

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

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

4. 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.

5. 1997 1998 1999 2000 2001 2005 The HR Strategy alignmentstarted five years ago and is now facing a new process of evolution

6. Some of thetopics or processes found as common practices inglobal 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.

7. Top Managementselected four topics as fundamental: Performance High importance • Management of KeyExecutives • Compensation systems • Personnel selection • Training • Career planning • Performance evaluation • Expatriate Management • PMI processes support • PMI processes support • Human Resources Administration* Lesser Importance Question: How important are the following HR topics, and what is the current performance level? (*) Routine functions (payroll, benefits, vacations, etc)

8. The first seven HR Platformsseek thedevelopment of CEMEX Potential Set objectives for individual results measuring Performance & Potential Assessment Venezuela Variable compensation Central Developing Professionals Colombia Global Leadership Central Code of Ethics Mexico Selection and Job Posting Mexico Talent Development USA Encourage highest degree of individual appropriation and contribution. Development programs for first entry professionals. 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 ‘97 ‘98 ‘99 ‘00 ‘01

9. The executive profile is a “common link”of the HR platforms Selection and Job Posting Performance & Potential Assessment Code of Ethics CEMEX Executive Profile Variable compensation Global Leadership CIMP Talent Development Developing Professionals Discovery Succession Planning

10. Key competencies that define the CEMEX executive profile Strategic thinking 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. Teamwork 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. Entrepreneurial spirit To develop opportunities for improvement of the business, within and outside one's own working environment, undertaking risks and overcoming obstacles. Creativity Generation and development of ideas, considering internal and external context for creating and taking advantage of business opportunities in CEMEX. Focus on stakeholders Adaptation of behavior to the values, priorities and objectives of CEMEX, in search for the benefit of the different stakeholders. Development of others Continuous commitment for stimulating learning and development of others, with the purpose of furthering their professional success. Development of alliances Identify and maintain long term relationships with persons, groups and institutions, that contribute to the achievement of CEMEX's strategies. Information Management and Learning 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. Customer service orientation

11. 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 Evolving to e-enabling environment HR e-enabling • HR Operational Processes • Organization • Personnel Administration • HR Information Management Evolving to e-enabling environment

12. The success of any global company depends more and more on its human capital. • New tecnology will provide a competitive advantage only to those companies where human talent is motivated, committed, and prepared to use it. • In order to cope with the speed of today’s global environment, organizations and its people must develope the capabilities and willingness to constantly learn, share knowledge and innovate. In CEMEX we live a passion for change.