1. “Patrimonio Hoy” CEMEX’s Progressive Housing Alternative for Low Income Segment
17/03/04

2. Mission and Objective MISSION
Patrimonio Hoy is one of the programs which support CEMEX’s social responsibility strategy
With Patrimonio Hoy CEMEX makes a compromise with its Corporate Citizenship by offering integral progressive housing solutions for low income families
OBJECTIVE
Business: to position the Company and its brands in the low income communities, through a close and direct relationship, providing them with products and services according to their needs and development capabilities.
Social Responsibility: to contribute in improving the opportunities of better life conditions for low income communities, increasing the quality of housing conditions.

3. Problems to Solve Tangible Unable to save No accesss to formal credit
Material and building knowledge
Access to certified quality materials
Organization of the process
Intangible
Unable to perceive a wider life perspective
Confronting a future with a limited space for their participation
Result is a typical project:
A new 110 sq. Ft room
Building time of 4 yrs
Investing $1,000 for materials
Waste of 30%
Tied to a chronic, hopeless resignation which impedes them building a better future

4. What does the Program offers
Microcredit for building mats
Based on solidarity of a group of 3
No collaterals
$4 credit for each $1 saved
Technical Advise
Customized house growth project for each family, phased one room at a time
Benefits & Services
Frozen prices for 70 wk periods
Warehousing services to store mats according to their needs
A steady, progressive, well implemented project with 2/3 savings on time and 1/3 less cost
A sense of trustfull capacity to face other challenges

5. Value for CEMEX Basic sustentability
Business model design asks for enough income generation to operate and grow
2 main income sources:
Membership fee
Discounts from participating distributors
Intrinsic values
Demand expansion
Accelerated cement use – 1 room in 16 vs 48 months
Additional rooms vs originally able to built
Branding
Increased brand loyalty
Other segments brand preference based on demonstrated social responsible programs

6. Critical success aspects
Trust bridge building
Fulfillment off all the Program’s promises
Local presence and permanence, developing a sens of being part of the community
Very high consumer service standards

7. Status More than 75,000 families have participated
48 offices in 23 cities
Generating its own growth resources 8 2
On time payments higher than 99.2%
Families have built the equivalent of 33,000 additional 110 sq.ft rooms