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Atocongo Plant, Lima
Semana del Mercado de Capitales
August 26, 2021
UNACEM S.A.A.
Welcome to UNACEM’s presentation!
1.OVERVIEWWhere we come from? Who we are?
2.FUNDAMENTALSOur country, our industry
3.RECENT EVENTSCorporate Governance and M&A
4.UNACEM PeruMarket leadership and solid financial results
5. CONSOLIDATED FINANCIAL HIGHLIGHTSResults and debt profile
6.APPENDIXAdditional information
1. Overview
1. Overview
History
UNACEM has almost 100 years of successful operations in the Peruvian market…
Cementos Lima S.A. is founded
(predecessor of UNACEM)
Military government confiscates Cemento
Andino and Cementos Lima
Cementos Lima is privatized for a
second time, allowing the Rizo-
Patrón group to gain control of the
company
Cemento Andinostarts the
construction of the Condorcocha plant
Constitution of Compañía Peruana
de Cemento Portland
UNICON is created from the merger of
COPRESA and HORMEC
Cementos Lima triples its cement
production capacity (from 1.5 million MT
to 4.5 million MT)
1974 1994 1996 199919671916 1956
Cemento Andino is privatized and the Rizo-Patrón group recovers control of
the company
2007
UNACEM merge as absorbing company with
SIA, IASA and Pronto.
UNACEM acquired Cempor
UNICON acquired HormigonesIndependencia, today UNICON
Chile
1. Overview
History (cont.)
…developing new business segments and entering new markets in the region
Drake Cement begins operations in the US.
UNICON acquires Firth
2012 2013 2014 2017
UNACEM is founded as a result of a
merger between Cementos Lima and
Cemento Andino. Condorcocha kiln IV
expansion is concluded
UNACEM acquires Lafarge in Ecuador and is now present
in 5 countries: Peru, Ecuador, U.S., Chile
and Colombia
Expansion of kiln 1 from 4.5 million MT to 5.5 million MT in
the Atocongo plant is concluded
2010 2011
Compañía Eléctrica el Platanal S.A.
(“CELEPSA”) hydropower plant begins
its operations
2018
UNICON acquired Hormigonera Quito,
today UNICON Ecuador
2021
UNACEM acquired Cementos La Unión
in Chile, today UNACEM Chile
Perú – Chile - Colombia
1. Overview
UNACEM structure
6
ConcreteCementEnergy
Nuevas Inversiones S.A.
Free float
GEA
48.20%
25.25%
Inversiones JRPR S.A.
61.85%
Inversiones Nacionales y Multinacionales S.A.
26.55%
PERU
CHILEECUADOR
Services
(Engineering)
(Security)
(Real Estate Assets)
UNACEM S.A.A. is listed in the Lima Stock Exchange (BVL) with a Market Cap of USD 538.0 million, as of August 26th, 2021.FX Rate: PEN 4.089- 1,818,127,611 Common shares
CHILE
Our sustainability strategy
7
ESG is at the core of our culture ….
Our purpose:
“Growing together to build a sustainable world”
Our strategic management focuses on sustainability based on 5 pillars:
With ambitious long-term aspirations with the environment
8
This is in line with:
Social Infrastructure
Health Education EnvironmentCommunity
Relations
Aligned with the UN Sustainable Development Goals
Our social development approach works in 5 lines of action
2. Fundamentals
477.6
830.7
588.2
808.8
462.6479.0
563.3
633.5
413.2
571.0
2017-1 2017-7 2018-1 2018-7 2019-1 2019-7 2020-1 2020-7 2021-1 2021-7
Acero de Construcción liso Bloques y Ladrillo - Area 1
Cemento Portland Tipo I - Area 1 Mano de obra
10
1,178 1,066 1,086
-
200
400
600
800
1,000
1,200
1,400
-3.7%
2.2% 5.4%1.6%
-14.2%
101.5%
-3.4%
0.9% 3.2% 5.2%
-14.7%
90.5%
2016 2017 2018 2019 2020 1H21
Construction GDP Peruvian Cement Dispatches
-6.8%-7.8%
-11.1%
-5.8%
-8.3%
-4.1% -3.5%
5.90%
3.40%
10.30%
6.10%5.00% 4.50%
6.80%
Colombia Ecuador Peru Chile Mexico Brazil USA
2020 2021E
2. Fundamentals
Macroeconomic fundamentals have been affected by COVID-19
Latam GDP Growth (Annual variation %)
Construction materials index
Peru Construction GDP vs. Cement Dispatches
(Growth %)
Cement Dispatches(Monthly TM, thousands)
Sources: INEI, ASOCEM, Apoyo, AFIN, Central Banks, WB .
11
The construction sector has the strongest recovery in 2Q2021...
Source: INEI
12
Peru GDP (YTD 2Q2021, % Growth)
2. Fundamentals
5.0
8.3
9.5
16.8
21.2
25.2
61.0
62.2
83.8
85.8
231.9
423.0
41.9
- 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0
Public
Telecom
Finance
Other
Fishing
Electricity, Oil & Gas
Manufacture
Services
Transport
Trade
Construction
Leisure
Peruvian GDP
… with G2G agreements to lead the execution of public works …
14
Reconstruction Agreement
▪ Government of the United Kingdom of Great Britain and Northern Ireland
▪ Budget: PEN 7,000 million▪ Term: 2 years
Works to be executed
Timeline
Tumbes
Piura
Lambayeque
La Libertad
Ancash
Lima
Ica
Cajamarca
Mar
ch 2
02
1
36 schools
7 riverdefenses
Jun
e 2
02
1
9 healthcenters
De
c2
02
1
74 schools
Mar
ch 2
02
2
66% ofWorks in river creeksand drains
Jun
e 2
02
2
15 healthcenters
17 riversand 5 rivercreeks
7 drains 15 healthcenters
74 schools
Huanvelica
2. Fundamentals
… and we can focus on the pipeline of granted projects
15
LINE 2 – METRO OF LIMA
ROADS
TRANSPORTATION INFRASTRUCTURE
WATER AND SANITATION
Metro de Lima - Línea 2 USD 5,658 MM
Red Vial 4 USD 380 MM
Rutas Nuevas de Lima USD 590 MM
Amp. Red Vial 5 USD 100 MM
Amp. Red Vial 6 USD 300 MM
Ambo- Oyon - I USD 140 MM
TOTAL USD 1,510 MM
Jorge Chavez AirportExpansion
USD 1,500 MM
Chancay Port USD 1,100 MM
Muelle Norte - Etapas 1 y 2 - Callao Port
USD 370 MM
Mineral Terminal - Callao Port
USD 150 MM
Pisco Airport Expansion USD 107 MM
TOTAL USD 3,227 MM
Water and Sanitation in Lima (Sedapal)
USD 166 MM
Pichanaki Hospital up-grade(Junin)
USD 79 MM
TOTAL USD 245 MM
Source: APOYO
2. Fundamentals
3. RecentEvents
Atocongo Plant - Lima
17
Recently acquired Cementos La Unión - Chile
On December 2020, UNACEM purchased 100% of the shares of Cementos LaUnión S.A. (CLU CHILE) and 100% of the social rights of Inversiones Mel 20Limitada (MEL20), subject to the approval of the Chilean National EconomicProsecutor (FNE). On February 23, 2021 the approval was obtained and tookcontrol at the end of March.
Main assets acquired
Grinding Capacity 300,000 tons/year
Ready-mix capacity 336,000 m3/year
Location – Cement Near port of San Antonio
Location – Ready-mix Santiago and surroundingareas
Other assets Tax credits
CHILE
4. UNACEM Peru
Condorcocha Plant, Tarma (3,950 m.a.s.l)
4. UNACEM Peru
Lima / Junín
Market Share: 43.9%
Arequipa
Market Share: 18.5%
Lima
Market Share: 3.9%
Lima
Market Share: 3.1%
Lima
Market Share: 3.6%
Loreto
TacnaArequipa
Arequipa
La Libertad / Piura / San Martín
Market Share: 26.8%
19Source: Asocem, INEI, SUNAT
UNACEM is the cement market leader in Peru
1,001 979 917
824 761
2017 2018 2019 2020 1H21
141
74
105
9
72
24.7%
12.3%
17.6%
1.8%
11.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
-
20
40
60
80
100
120
140
160
180
2017 2018 2019 2020 LTM1H21
Net Income Net Margin
300
266 259
145
221
52.5%
44.3% 43.6%
29.8%
36.6%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
50
100
150
200
250
300
2017 2018 2019 2020 LTM1H21
EBITDA EBITDA Margin
571 599 595
486
604
2017 2018 2019 2020 LTM1H21
4. UNACEM Peru
4. Consistently delivering strong financial results
Separate financial performance
Revenues(USD Millions)
EBITDA and EBITDA Margin(USD Millions and %)
Net Income & Net Margin (USD Millions and %)
Net Debt(USD Millions)
Source: Company filings.
20
Exchange rate from PEN/USD 2017: 3.26 PEN/USD 2018: 3.29 PEN/USD 2019: 3.34 PEN/USD 2020: 3.496 LTM1H21: 3.651
5. ConsolidatedFinancialHighlights
1,319 1,299
1,204
1,114
1,011
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
2017 2018 2019 2020 1H21
64 56
106
33
129
5.9%4.7%
8…
3…
10.6%
-7.0%
1.0%
9.0%
17.0%
25.0%
33.0%
41.0%
-
10
20
30
40
50
60
70
80
90
100
110
120
130
140
2017 2018 2019 2020 LTM1H21
Net Income Net Margin
347 356
366
264
357
32.0% 30.0% 29.8%
25.8%
29.4%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
100
150
200
250
300
350
400
450
2017 2018 2019 2020 LTM1H21
EBITDA EBITDA Margin
1,085
1,187 1,229
1,023
1,215
2017 2018 2019 2020 LTM1H21
5. Consolidated Financial Highlights
Good results despite tough environment …
Revenues(USD Millions)
Net Income & Net Margin (USD Millions and %)
Net Debt(USD Millions)
Source: Company filings
22
EBITDA and EBITDA Margin(USD Millions and %)
Exchange rate from PEN/USD 2017: 3.26 PEN/USD 2018: 3.29 PEN/USD 2019: 3.34 PEN/USD 2020: 3.496 LTM1H21: 3.651
Short
term
18%
Long term
82%
USD
38%
Local
Currency
62%
130 144 170
132 130
551
2021 2022 2023 2024 2025 >2026
Título del gráfico
Source: UNACEM
5. Consolidated Financial Highlights
… with a lean consolidated debt structure
Amortization Schedule (USD Millions)
FX Distribution(USD Millions)
Maturity Profile(%)
23
Total Debt as June 2021 USD 1,175 million
Exchange rate from PEN/USD as of 1H21: 3.866 PEN/USD. Debt Profile exchange rate PEN/USD: 3.5
5. Consolidated Financial Highlights
UNACEM stand-alone’s liability management process for PEN 1.2 billion
Improved debt profile:
✓ Extended duration
✓ Lower average cost
Total amount PEN 1,168 million
Banks : PEN 533 million
PEN 407 million
PEN 228 million
Term: 6 years
Disbursement: January 21, 2021
Use of proceeds: Refinance existing liabilities
Atocongo Plant, LimaMay 26 -27, 2021
Semana del Mercado de Capitales
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