Presentation by Ricardo Charvel of CEMEX

1. Low-Income Market Development July 2010

3. Presence in 50 countries

4. Close to 47,000 employees

5. Global supplier of Source: 2009 Annual Report

7. Education

10. A low-income area in Guadalajara

12. formal credit sources

13. technical knowledge

14. supply of materials

15. organization

16. Area: 9 m2 room

17. Time: 4 to 5 years

18. Investment: US$1,500A sense of resignation, frustration “I can not manage this issue, it’s so difficult” “Families were often deceived by sellers of building materials. They paid high prices, were treated poorly, often got the wrong or lower-quality materials late, and were cheated in the weight of what they received. Many were expert masons but had no skills to develop a reasonable floor plan”

22. US$12.50 for materials

26. Better quality and functionality, results in a higher market value by about 30%

27. Access to the credit market and to a credit history (formality!)

29. Promotion of family unity and solidarity among neighbors

30. Promotion of long-term thinking, savings, and planning skills

32. 85 throughout Mexico, also launched in:

33. Colombia

34. Costa Rica

35. Dominican Republic

37. Repayment rate above 99%

38. More than 1.30 MM m2 built

39. Client satisfaction of over 90%

40. 60% say they would not have been able to build their house without PH

41. 30% use new space to start or develop their own business

42. 55% of participants hire local masons

43. 95% of promoters female, 51% with no previous working experience

44. >500 local schools improvedCoverage: 280,000 families More than 1.4 million people

45. Lessons Learned Developing a deep understanding of the segment’s needs and perceptions is crucial A flexible management culture open to change needed Embedding social capital in the business model is key

47. With PH they added seven rooms and a set of stairs in five years. They could have spent their entire lifetime to build this

48. For 5 years Rosa Magaña, her husband, and 2 children lived in a 10 m2 carton shed with no bathroom.

49. Now, they live in their own 120 m2 house and they are about to finish building another two rooms which will add 50 m2, plus a soldering workshop.“Without PH we would be still crowded, uncomfortable, and upset. Since we are part of the program my husband and I are more united, as he stays home during the weekends to keep building our house. We see the PH team as part of our family”- Ma. Diega

51. Self-Employment Productive CentersStrengthen market share and community development through innovative building solutions

52. Mejora tu Calle Infrastructure Quality Index Mexico’s infrastructure index is below world average, this results in a negative impact in the country’s relative competitiveness Average 3.8 Note : 7 = world’s best, 1 = least developed Source: The Global Competitiveness Report 2009-2010, World Economic Forum

53. Mejora tu Calle Municipalities’ Local Income is generally very low in relation to total budget Municipalities’ Local Income 2005-2008 Annual average growth rate 2005-2008: 13.5% MXP million 20.5% 22.8% Total % of Income 21.6% 21.6% Note: Does not include Mexico’s City Delegations. Source: State and Municipal Public Finances 2005-2008. INEGI

55. Micro-credits granted to 7,000 families

56. More than 320,000 m2 paved in 12 municipalities

57. Repayment rate higher to 90%

58. Supported by IADB’s Opportunities for Majority Program (US$10M Credit, Guarantee facility)video Before… After!

61. Government0.0%

63. In partnership with local governments/communities

64. We provide the materials, equipment, training, maintenance, and supervise quality

65. Communities contribute their labor, they get 50% of the product, the rest is sold

66. Operating in Mexico, Panama, Costa Rica and soon in Colombia

67. We built more than twenty six hundred rooms in Mexico (10 m2)