UNACEM Corp (UNACEMC1) Investor Day 2023 summary

Portfolio and strategy

• Shifted to a pure-holding structure in 2022; operations span Peru, Ecuador, the US, Chile and Colombia across cement, concrete, aggregates, energy, prefabricates and services.

• Expansion included cement operations in Chile and Bio Bio assets in 2021, and Termochilca power assets in 2022.

• Peru cement capacity was 8.3m tonnes; market share averaged 46% in 2016–22, with two plants holding limestone reserves of 33 and 155 years.

• Combined energy assets with Termochilca and Celepsa had 563 MW capacity, ~3,200 GWh of energy and ~5% market share.

Decarbonization and sustainability

• 2050 carbon-neutrality commitment: corporate roadmap due in 2024, 2030 certification milestone, 100% electric or hybrid transport by 2035, carbon-neutral electricity by 2040 and technology-based carbon capture or compensation by 2045.

• Cement emissions-intensity target of 500 kg CO₂/t cementitious by 2030, versus 612 in 2022; estimated associated capex totals $331m across clinker reduction, co-processing, energy and innovation measures.

• Decarbonization levers include alternative fuels and biomass, renewable electricity, energy efficiency, lower clinker content, construction-waste recycling and carbon capture.

• VIDA Primero safety program targets safety interdependence by 2030 through visible leadership, commitment and adherence to standards.

• 2023–26 talent and inclusion plans cover human-rights risk assessment across the value chain, inclusive hiring, training, work-life support and D&I KPIs.

Consolidated financial results

• LTM June 2023 consolidated revenue was $1.6bn and EBITDA was $404.5m.

• 1H23 revenue rose 5.9% YoY to $792m from $748m; EBITDA declined 3.0% to $202m from $208m, with a 27.8% EBITDA margin in 1H23.

• 1H23 net income was $80m versus $81m in 1H22, down 1.0%; financial expenses increased 36.7%, alongside an increase in foreign-exchange gains.

• LTM2T23 EBITDA was $412m with a 25.5% margin; consolidated revenue CAGR was 7.1% from 2017 to LTM2T23.

• June 2023 net debt was $1,043m and leverage 2.2x; 79.9% of debt was in local currency and 59.2% was short-term.