Atocongo Plant, Lima
XIII Evento de Mercado de Capitales
2-3 Setiembre, 2015 | Lima, Perú
UNACEM S.A.A.
Agenda
1.Overview
2.UNACEM Peru
3.Unicon and Firth
4.Celepsa
5.Skanon / Drake
6.UNACEM Ecuador
7.Preansa
8.Consolidated Financial Highlights
Appendix
1. Overview
1.Overview
UNACEM at a glance
Concrete Cement Energy
Nuevas Inversiones S.A.
Sindicato de Inversiones y Administración S.A.
Inversiones Andino S.A.
Pension Funds Other Minority Shareholders
24.30%
GEA
21.47% 10.83%
57.80%
43.40%
4
Peru – Chile - Colombia
UNACEM S.A.A. is listed in the Lima Stock Exchange (BVL) with a Market Cap of USD 1,015 million, as of August 28th, 2015. FX Rate: PEN 3.24
1.Solid macroeconomic fundamentals
Latam GDP Growth (annual variation %)
Peru Real GDP and Inflation (PEN Bn and %)
Peru Construction GDP vs. cement dispatches (Growth %)
Peru Granted Infrastructure Investment (USD Billion)
4.0 3.6
1.2
2014 2015
Granted Projects begininng 2015
Sources: Latin Focus, INEI, ASOCEM, Apoyo.
5
4.7% 4.7%
5.8%
4.1%
1.4%
2.5% 2.2%
4.8%
3.9%
2.4%
1.7%
2.2%
0.2%
2.4%
Colombia Ecuador Peru Chile Mexico Brazil USA
2013 2014
* Peru Construction GDP and Cement Dispatches Jun/Jun(YoY)
* Peru Real GDP and Inflation Jun/Jun(YoY)
1.Overview
Pipeline of infrastructure auctioned projects 2015 - 2018
Sources: APOYO Consultoría 6
Project Company Location Investment
(USD Millions) Construction
start
Autopista del Sol Consorcio Vial del Sol La Libertad, Lambayeque,
Piura 300 2011
Longitudinal de la Sierra Tramo 2
Consierra Tramo II La Libertad, Cajamarca 552 2015
Puerto de Paita Terminales Portuarios Euroandinos
Piura 227 2012
Metro de Lima - Línea 2 Consorcio Nuevo Metro de Lima
Lima 5,658 2015
Vía Expresa Javier Prado Graña y Montero Lima 900 NA
Amp. Jorge Chávez Lima Airport Partners Lima 800 2015
Vía Parque Rímac OAS Lima 750 2012
Rutas Nuevas de Lima Odebrecht Lima 590 2013
Muelle Norte - Etapas 1 y 2 APM Terminals Lima 370 2012
Red Vial 4 (Autopista del Norte)
Autopista del Norte Lima, Ancash, La Libertad 340 2010
Vía Expresa Sur Graña y Montero Lima 200 2016
Amp. Red Vial 6 Coviperu Lima, Ica 200 NA
Terminal Portuario General San Martín
Consorcio Paracas Ica 182 2015
Muelle de minerales - Puerto del Callao
Consorcio Transportadora Callao
Lima 150 2012
IIRSA Centro - Tramo II Consorcio Desarrollo Vial del Perú (Deviandes)
Lima, Junín, Pasco 126 2013
Modernización del Aeropuerto de Pisco
Aeropuertos del Perú Ica 107 2013
Amp. Red Vial 5 Norvial Lima 100 2014
Muelle de Minerales - Puerto Matarani
Tisur Arequipa 260 2014
Aeropuerto Internacional Chinchero
Consorcio Kuntur Wasi Cusco 420 2016
Panamerica Sur Consorcio Concesión Vial del Sur
Sur 200 2015
Total investment 12,432
More than 84% of this investment is
in our area of influence
2. UNACEM Peru
Condorcocha Plant, Tarma (3,950 m.a.s.l)
2. UNACEM Peru
Overview
On October 1st, 2012, UNACEM absorbed Cemento Andino to consolidate the largest cement company in Peru
UNACEM has subsidiaries that provide power supply, raw materials supply, distribution channels and warehouse storage of UNACEM’s products
The Company has two cement plants, Atocongo and Condorcocha, which operate in the central region of the country where most of the population lives
The Atocongo plant has an underground conveyor belt which leads directly to the Conchan Pier (port) in the Pacific Ocean, facilitating cement exports and raw material imports
Both plants have their own power generation through two hydro power plants and one thermo power plant that provide a significant source of energy
Cement Plants
Location: Lima
Clinker Capacity: 4.8 million MT
Cement Capacity: 5.5 million MT
Clinker Production(2014): 4.3 million MT
Cement Production(2014): 3.8 million MT
Limestone Reserves: 36 years
Atocongo
Location: Junín
Clinker Capacity: 1.9 million MT
Cement Capacity: 2.1 million MT
Clinker Production(2014): 1.6 million MT
Cement Production(2014): 1.9 million MT
Limestone Reserves: 158 years
Condorcocha
Commercialization
• Hardware store with over 287 points of sale
Progre-Sol
Hatun-Sol
Financing and Advising
Product financing and advising families on building techniques
Duravía
• Solutions for road paving
Supplies more than 7,200 independent hardware stores in the country
Advices and provides financing to families and independent builders to finance cement and other construction products
New service that offers efficient road paving techniques
Distribution and Services Financial Snapshot (USD MM)
2014 LTM 2Q2015
Total Assets 2,799 2,346
Revenues 630 618
EBITDA 261 316
EBITDA Margin 42% 51%
Local Ratings APOYO: AA
Class: AAA
Source: Company filings.
8 Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
2. UNACEM is the market leader of cement in Peru
Location: Pacasmayo - La Libertad
Market Share: 18% | Cement Cap: 2.9 million MT
Clinker Capacity: 1.3 million MT Location:
Lima – Atocongo Plant
Junin – Condorcocha Plant
Market Share: 51%
Cement Capacity: 7.6 million MT
Clinker Capacity: 6.7 million MT
Location: Rioja – San Martín
Market Share: 2% | Cement Capacity: 0.3 MT
Clinker Capacity: 0.2 MT
Location: Yura – Arequipa
Market Share: 18% | Cement Cap.: 3.0 million MT
Clinker Capacity: 2.0 million MT
*Others: 6%, decimals rounded
Group: Gloria
Group: Hochschild
Group: Rizo-Patron
Location : Lima
Market Share: 4%
Imports: 0.45 million MT
Source: Asocem, INEI, SUNAT
9
2.Attractive financial performance
Separate unaudited 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. Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
10
3. Unicon & Firth
3. Unicon & Firth
• UNICON and Firth have 60.0% of market share (71% in the relevant area) in the concrete segment (LTM 2Q15)
• UNACEM’s concrete segment consists of two companies Unión de Concreteras S.A. (UNICON) and Firth Industries S.A. (Firth), forming the largest concrete group in Peru
• UNICON was founded in May 1996
• In 2011, UNICON acquired 100% of Firth shares
• UNICON & Firth provided a variety of services such as: ready-
mixed concrete, concrete for mining, concrete for paving,
pumping services, girders and concrete sleepers and aggregates
Concrete Segment Overview Market Positioning
Financial Snapshot – LTM 2Q15 (USD MM)
Total Assets 272
Revenue 336
EBITDA 48
EBITDA Margin 14%
Installed Capacity 9.2 (million m3 per year)
Concrete Plants 58
Facilities in Lima 13
Facilities in the rest of Peru 22
Mixer Trucks 519
Assets and Capacity
12
Commercial strategy
•Specialized in megaprojects and large constructions
Commercial strategy
•Specialized in small to medium projects and constructions
Source: Unicon. Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
3. Disciplined financial approach
Revenues
(USD Millions) EBITDA and EBITDA Margin
(USD Millions and %)
Net Income & Net Margin (USD Millions and %)
Net Debt (USD Millions)
Source: Unicon.
13 Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
38
47 48
50 48
15.3%
15.1%
13.6%
14.3%
14.4%
13 .0 % -
10
20
30
40
50
60
2011 2012 2013 2014 LTM2Q15
EBITDA EBITDA Margin
16
21
17
29
23
6.3%6.8%
4.9%
8.3% 8.4%
2.0%
5.0%
8.0%
11. 0%
-
5
10
15
20
25
30
35
2011 2012 2013 2014 LTM2Q15
Net Income Net Margin
4. Celepsa
4. Celepsa
Company description Hydroelectric Power Plant
Financial Snapshot – LTM 2Q15 (USD MM)
Total Assets 357
Revenue 95
EBITDA 31
EBITDA Margin 32%
Company structure
15
• The company’s main customer is UNACEM (29% of total sales), though it has a portfolio of 13 additional customers
• The company’s asset is the hydroelectric plant “El Platanal” which generates 220 MW
• CELEPSA’s strategy is to develop a balanced, efficient and competitive portfolio of electricity generation
• 100% of the production is sold through PPAs
• In November 2014, Celepsa acquired Hidro Eléctrica Marañon S.R.L., a 20 MW with a 88 MW PPA. The hydroelectric power plant will start operations in 2017
Location: Lima
Generation Capacity: 220 MW
Availability Index (Unit 1): 99.68%
Availability Index (Unit 2): 99.94%
El Platanal
Source: Celepsa.
Hidro Eléctrica
Marañon SRL
90% 10%
99% 99% 50%
Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15 PEN/USD 3.179
4. Stable cash flow generation
Revenues
(USD Millions) EBITDA and EBITDA Margin
(USD Millions and %)
Net Income & Net Margin (UDS Millions and %)
Net Debt (USD Millions)
16 Source: Celepsa. Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
47
40 4036
3169.2% 51.5%
40.7%39.4%
32.2%
0.0%
10 .0 %
20 .0 %
30 .0 %
40 .0 %
50 .0 %
60 .0 %
70 .0 %
80 .0 %
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 LTM2Q15
EBITDA EBITDA Margin
16
13
1
6
0
24.0%
16.5%
0.7%
6.4%
0.0% -5.0%
5.0%
15. 0%
25. 0%
35. 0%
45. 0%
-2
0
2
4
6
8
10
12
14
16
18
2011 2012 2013 2014 LTM2Q15
Net Income Net Margin
5. Skanon / Drake
5. Skanon / Drake
• Drake UNACEM’s start up subsidiary located in Arizona, USA, with state-of-the-art facilities
• There are six main competitors in the market in Arizona. Drake holds the 3rd largest market share.
• UNACEM took advantage of the low prices during the crisis to build Drake Cement
• Drake has a strong growth potential as the United States recovers from the crisis
• The company’s mission is to be recognized as the leading and most respected provider of construction materials
Products and Brands
Business Strategic Plan
Company Description
Financial Overview – LTM 2Q15 (USD MM)
Total Assets 486
Revenue 88
EBITDA -6
EBITDA Margin -7%
Vision
Vertical Integration
Strategic Alliances &
Partnerships
Core Values
• ABC (Aggregate Base Course) • Crushed rock • Concrete and mortar sand • Recycled concrete and asphalt
• ASTM C 150 Type II/V (LA) • Clinker Type II/V • Special cement
18 Source: Skanon.
5. US growth poses an opportunity
Revenues
(USD Millions) EBITDA and EBITDA Margin
(USD Millions and %)
Net Income (UDS Millions)
Net Debt (USD Millions)
Source: Skanon.
19
37
51
69
8388
2011 2012 2013 2014 LTM2Q15 -12
-5
-7-8
-6
-31.8%
-9.7% -10.5% -9.3%-7.1%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
-14
-12
-10
-8
-6
-4
-2
02011 2012 2013 2014 LTM2Q15
EBITDA EBITDA Margin
6. UNACEM Ecuador
6. UNACEM Ecuador
Operations
Ownership structure
Company Description
Financial Overview – LTM 2Q15 (USD MM)
21
• UNACEM Ecuador was acquired during 2014, consolidating and closing
the transaction by mid November 2014 with all regulatory permits
• The Company has the widest product portfolio in the market, tailored
for the construction sector
• UNACEM Ecuador is a fully integrated company with high performance
assets
• UNACEM Ecuador has a prime logistical operation with 100% bags
delivered door-to-door
• Excellence in stakeholder relationship
• The plant is currently operating at 100% capacity
2 Lines: 1 Kiln SPH and 1 Kiln AS precalciner
Location: Imbabura (100km North of Quito)
Clinker Capacity: 1.0 million MT
Cement Capacity: 1.5 million MT
Production (2014): 1.5 million MT
Otavalo
Total Assets 222
Revenue 184
EBITDA 79
EBITDA Margin 43%
Inversiones
Imbabura S.A.
Cantyvol S.A. Lafarge Servicios
Generales S.A.
100%
98.57%
99.99% 99.99%
Source: UNACEM Ecuador.
6. An important addition to the UNACEM family
Revenues
(USD Millions) EBITDA and EBITDA Margin
(USD Millions and %)
Net Income & Net Margin (USD Millions and %)
Net Debt (USD Millions)
Source: UNACEM Ecuador.
22
161
166
186 187184
2011 2012 2013 2014 LTM2Q15
3637
45
43 44
22.1%
22.4%
24.1%
23.0%
23.6%
21.0%
21.5%
22.0%
22.5%
23.0%
23.5%
24.0%
24.5%
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 LTM2Q15
Net Income Net Margin
7. Preansa
7. PREANSA Peru & Chile
Production Capacity
Ownership structure
Company Description
Financial Overview – LTM 2Q15 (USD MM)
24
Peru
Total Assets
24
Revenue 8
EBITDA 2
EBITDA Margin
27%
• Prefabricados Andinos Perú S.A.C. (PREANSA Perú) is a subsidiary of UNACEM which mainly produces prestressed industrialized concrete structures
• The business has a strong growth potential and already has tripled sales in the past 3 years
• PREANSA Peru was founded in 2007 with UNACEM holding 50% of ownership
• In January 2014, UNACEM acquired 51% of ownership of Preansa Chile. An it is starting to develop a plant in Colombia that will start operations in 1Q16.
• PREANSA has presence in Peru, Chile and, soon, Colombia
Peru
Pillars 90 m/day
Industrial Belts
400 m/day
Prestressed light beams
100 m/day
Prestressed heavy beams
220 m/day
Mezzanine Elements
140 m/day
Chile
Pillars 60 m/day
Industrial Belts 300 m/day
Prestressed light beams
120 m/day
Prestressed heavy beams
60 m/day
Mezzanine Elements
300 m/day
Wall panel 80 m/day
Prefabricados Andinos Perú S.A.C.
Prefabricados Andinos S.A. (Chile)
Prefabricados Andinos Colombia
S.A.S.
51.0%
100%
50.02%
Source: Preansa.
Chile
Total Assets
27
Revenue 16
EBITDA 2
EBITDA Margin
5%
Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
7. Great potential for our business development
Revenues
(USD Thousands) EBITDA
(USD Thousands)
Net Income (USD Thousands)
Net Debt (USD Thousands)
Source: Preansa.
25 Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
5,366
7 ,899
10,049
8 ,236 8,209
20,430
16,547
2011 2012 2013 2014 LTM2Q15
Peru Chile
418
1 ,350
1,710
827
1,016 1,156
455
2011 2012 2013 2014 LTM2Q15
Peru Chile
8. Consolidated Financial Highlights
8. Solid consolidated 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
27 Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD - 2014:2.989 PEN/USD – LTM2Q15: PEN/USD 3.179
124
143
69
100
73
16.7% 14.9%
6.7%9.7%
6.7%
-4.0%
1.0%
6.0%
11 .0 %
16 .0 %
21 .0 %
26 .0 %
31 .0 %
36 .0 %
41 .0 %
-
20
40
60
80
100
120
140
160
2011 2012 2013 2014 LTM2Q15
Net Income - Ex Ecuador Net Income Ecuador Net Margin
USD 1,095
PEN 506
Source: UNACEM
8. Consolidated Debt Profile
Amortization Schedule
(USD Millions)
FX Distribution
(USD Millions)
Maturity Profile
(As of 2Q15)
28
Total Debt USD 1,601
120
Atocongo Plant, Lima
XIII Evento de Mercado de Capitales
2-3 Setiembre, 2015 | Lima, Perú