GEOCYCLE

Cost Centre Separation – Pre and Co processing & C4004

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 1
Pre & Co-Processing Cost Split - Background
Report from Robert Szabot

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 2
Objective
• To define Production cost of different AF product as well as AR
• To have more clear on economical judgment of production cost
• To support the implementation of standard cost reporting tools

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 3
 Flow process and Cost Centre Segregation (AF)

Weighbridge Receiving Storage Handling

AF Waste Receiving & Inventory Mgt. Greenzone Platform Feeding to Kiln

• GreenZone Platform cost is • Co-processing cost is handled

handled by Geocycle by Plant
• Waste Receiving and Inventory is
• Create new cost centre and split by • Cost centre is split by Kiln line
handled by Geocycle
plant (NAR-1 : GZ 2 Prep. & • Using existing Cost Centre
• Create new cost centre and split by
Handling; NAR-2 : GZ 1 Prep. & (V0100 and V0101)
plant (only create for NAR-1
Handling)
storage)
• GZ 1 Prep. & handling is split for 2
• Boundary start from Receiving until
IO (Coarse Shredder & Fine
Greenzone gate (including truck
Shredder)
which transfer material to GZ)
• Boundary start from Greenzone
gate until Feeding facility (including
truck which transfer shredder
product) © 2013 Holcim
Greenzone Preparation and Handling Cost
3. Impregnation Cost Centre
(GreenZone 2)
• Cover preparation and handling
cost for ILC fuel production
(Coarse product + Sludge/pasty
impregnation)
• Boundary start from GZ2
incoming gate until lifting point
of Co-processing feeding facility

1. Coarse Shredder IO allocation

2. Fine Shredder IO allocation
• Cover preparation and handling activities
• Cover preparation and handling
for Solid Fuel Production (Incoming
cost for SLC fuel production (start
storage of GZ1, Primary Shredder, Disc
from Secondary Shredder, until
Screen, Wind Shifter, and Coarse
Fine Product Storage)
Product Storage)
• Transport of fine product to SLC
• Transport of Coarse product to GZ2 or
feeding facility will be covered in
direct to Co-processing feeding facility
this cost centre as well
will be covered in this cost centre

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 5
Define Production Cost
• Total production cost of GZ1 = GZ 1 cost centre (Coarse shredder IO
allocation + Fine Shredder IO allocation)
• Total production cost of Coarse Product = Coarse Shredder IO allocation x
(volume of coarse/volume total GZ1)
• Total production cost of Fine product (SLC Fuel) = (Fine shredder IO
allocation + (Coarse shredder IO x (volume of fine/volume total GZ1))
• Total production cost of ILC fuel = production cost of Coarse Product +
Impregnation Cost of GZ2

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 6
Flow process and Cost Centre Segregation (AR)

Weighbridge Receiving Storage Handling

AR Waste Receiving & Inventory Mgt. Feeding to Crusher

• Waste Receiving and Inventory is • Co-processing cost is handled by Plant

handled by Geocycle • This will cover Loader and Dump truck to feed AR
• Create new cost centre and split by to Crusher
plant (most probably only create for • Cost centre is split by Kiln line
NAR-2) • Using existing Cost Centre (X0111 and X0121)
• This will include preparation and
handling of AR before ready to be
fed to Crusher

© 2013 Holcim
C4004 Cost Separation – Background
• At the moment Geocycle only have one cost centre admin
(C4004)
• Cost from all line function under Geocycle (Technical and
Operational, Sales and Marketing, Compliance and Field
Services Team) are mixed together in C4004
• Responsibility to manage cost in each function is not really
clear
• Income statement analysis also required separation cost of
each line function

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 8
C4004 cost separation – follow Income Statement

Technical
and
Operational

Sales and
Marketing

Admin cost

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 9
C4004 Cost Separation
• Split into 3 main cost centre
- Technical & Operational (include Field Services Team)
- Sales and Marketing (include Communication team)
- Admin (include Compliance team and Country Manager)

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 10
 End of Slides

Geocycle - Proposed Org Structure, Organization Review by ODD, 2013-12-16 © 2013 Holcim 11