Cementos Pacasmayo (CPAC) investor relations material

Executive summary

• Q3 cement, concrete and precast shipments rose 14.2% YoY; revenue increased 16.3% to S/667.4M and EBITDA rose 45.1% to S/233.1M.

• Q3 net income rose 69.8% to S/121.4M; 9M EBITDA increased 37.7% to S/585.8M and net income grew 63.1% to S/280.6M.

Financial highlights

• Q3 gross profit rose 33.7% to S/299.4M; operating profit increased 60.1% to S/194.2M and profit before tax rose 65.4% to S/176.0M.

• 9M sales of goods increased 14.4% to S/1,781.9M; gross profit rose 28.6% to S/754.9M and operating profit grew 52.9% to S/470.3M.

• Q3 administrative expenses fell 6.9%; selling and distribution expenses rose 9.8%. For 9M, they declined 5.1% and increased 14.3%, respectively.

• LTM shipments of cement, concrete and precast reached 3,355.0 thousand MT, up 12.4%; sales of goods rose 12.4% to S/2,341.4M and EBITDA increased 17.4% to S/666.9M.

Outlook and guidance

• Management expects cement volume growth of ~4% next year, contingent on El Niño’s strength.

• Emissions roadmap includes clinker-factor reduction, co-processing, kiln optimization and increased use of fly ash and additives; targets include 95% of products as LC3-55 by 2028, microalgae for CO2 capture by 2030 and carbon capture by 2040.