Presentación de PowerPoint - UNACEM · XIII Evento de Mercado de Capitales 2-3 Setiembre, 2015 | Lima, ... Sindicato de Inversiones y Administración S.A. ... Colombia Ecuador Peru

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

http://www.unicon.com.pe/

http://www.celepsa.com/

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 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%



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


*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

http://www.unicon.com.pe/

3. Disciplined financial approach

Revenues





Source: Unicon.


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



Net Income & Net Margin (UDS Millions and %)


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


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


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



Net Income (UDS 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


6. UNACEM Ecuador

6. UNACEM Ecuador

Operations

Ownership structure

Company Description


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)



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





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


7. Preansa

7. PREANSA Peru & Chile

Production Capacity

Ownership structure

Company Description


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.


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





Source: Company filings


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

Documents

Presentación de PowerPoint - UNACEM · XIII Evento de Mercado de Capitales 2-3 Setiembre, 2015 | Lima, ... Sindicato de Inversiones y Administración S.A. ... Colombia Ecuador Peru