XIV Investors Conference

Transcription

1 XIV Investors Conference September 28th 29th JW Marriott Hotel Lima - Peru Atocongo Plant, Lima

2 UNACEM S.A.A. Agenda 1.Overview 2.UNACEM Peru 3.Unicon and Concremax 4.Celepsa 5.Skanon / Drake 6.UNACEM Ecuador 7.Preansa 8.Consolidated Financial Highlights Appendix

3 1. Overview

4 1.Overview UNACEM at a glance Nuevas Inversiones S.A % Sindicato de Inversiones y Administración S.A % Inversiones Andino S.A % Pension Funds 22.27% 10.03% Other Minority Shareholders Cement Concrete Energy GEA Peru Chile - Colombia UNACEM S.A.A. is listed in the Lima Stock Exchange (BVL) with a Market Cap of USD 1,361.7 million, as of September 26th, FX Rate: PEN

5 1.Solid macroeconomic fundamentals Latam GDP Growth (Annual variation %) Peru Real GDP and Inflation (PEN Bn and %) 4.8% 3.0% 3.9% 2.4% 3.3% 2.4% 2.5% 2.2% 1.7% 2.4% 2.4% 0.4% 0.2% Colombia* Ecuador* Peru Chile* Mexico Brazil* USA* % * Forecast * Peru Real GDP and Inflation (YoY) Peru Construction GDP vs. Cement Dispatches (Growth %) Peruvian Infrastructure Gap (as % GDP) 9.0% 8.9% 8.6% 8.4% 8.1% 8.0% 8.2% 8.1% Average 8.3% 7.8% 7.7% * Peru Construction GDP (YoY) and Cement Dispatches (Jun/Jun) Sources: INEI, ASOCEM, Apoyo, AFIN, Central Banks

6 1. Peruvian new government measures seek to reduce infrastructure gap and housing deficit in the following 5 years Infrastructure Gap Current status: Total infrastructure gap is USD billion 8.27% of GDP annual investment needed to close the gap in the following 10 years Water and sanitation gap is USD 12.5 billion Estimated benefits of closing the gap represent around 14.3% of GDP and will represent 14.25% of the labour force Housing Deficit Current status: Housing deficit in Peru: 72% of total families (Ficem 2013) Peru s unsatisfied housing demand: 700,000 houses Lima and Callao unsatisfied housing demand: 435,000 houses 53% of demand in Lima and Callao for housing between USD 30,000 and USD 80,000 Law 30425: Pension fund affiliates may withdraw 25% of their funds to repay mortgage or for the down payment of a 1 st property Government goals: Infrastructure invesment up to USD 69 billion 100% of water in urban areas by 2021 Paving 100% of the National Road Network Reform of the public - private investment process Megaprojects are a top priority, 15 projects declared in Emergency in order to accelerate it s execution Government goals: Mivivienda and Techo Propio programs will work as a unit, redirecting financing to houses under USD 40,000 Promote access to formal credit to families High investment in social infrastructure will reduce its gap by 50% in the next 5 years Sources: AFIN, PCM, CAPECO 6

7 1. Unacem is ready to take advantage of the Megaprojects that will be executed in its area of influence 84% of total infrastructure projects already auctioned on UNACEM s area of influence USD 20 billion investment in the next 5 years More than USD 400 million to be auctioned in 2016 Sources: PPK Goverment Plan, APOYO 7

8 A great pipeline of granted projects that will boost growth LINE 2 METRO OF LIMA TRANSPORTATION INFRASTRUCTURE Metro de Lima - Línea 2 USD 5,658 MM Jorge Chavez Airport Expansion USD 800 MM Muelle Norte - Etapas 1 y 2 - Callao Port USD 370 MM San Martín Port USD 182 MM Mineral Terminal - Callao Port USD 150 MM Pisco Airport Expansion USD 107 MM TOTAL USD 1,609 MM ROADS Vía Parque Rímac USD 750 MM WATER AND SANITATION Rutas Nuevas de Lima USD 590 MM IIRSA Centro - Tramo II Amp. Red Vial 5 USD 126 MM USD 100 MM Water and Sanitation in Lima (Sedapal) USD 166 MM Vía Expresa Sur Vía Expresa Javier Prado USD 200 MM USD 900 MM Improvement the facilities of the health services in Pichanaki Hospital, Junín USD 79 MM Amp. Red Vial 6 USD 200 MM TOTAL USD 245 MM TOTAL Source:APOYO USD 2,866 MM 8

9 2. UNACEM Peru Condorcocha Plant, Tarma (3,950 m.a.s.l)

10 2. UNACEM Peru Overview Cement Plants On October 1 st, 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 Atocongo Location: Lima Clinker Capacity: 4.8 million MT Cement Capacity: 5.5 million MT Clinker Production(2015): 4.0 million MT Condorcocha Location: Junín Clinker Capacity: 1.9 million MT Cement Capacity: 2.8 million MT Clinker Production(2015): 1.5 million MT The Company has two cement plants, Atocongo and Condorcocha, which operate in the central region of the country where most of the population lives Cement Production(2015): 3.7 million MT Limestone Reserves: 35 years Cement Production(2015): 1.9 million MT Limestone Reserves: 157 years 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 Financial Snapshot (USD MM) Distribution and Services 2015 LTM 2Q16 Total Assets 2,709 2,623 Progre-Sol Commercialization Hardware store with over 356 points of sale Supplies more than 7,200 independent hardware stores in the country Revenues EBITDA EBITDA Margin 49% 52% Hatun-Sol Financing and Advising Product financing and advising families on building techniques Advices and provides financing to families and independent builders to finance cement and other construction products Local Ratings Source: Company filings. Class: AAA APOYO: AA Duravía Solutions for road paving New service that offers efficient road paving techniques Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 10

11 2. UNACEM is the market leader of cement in Peru Group: Hochschild Location: Rioja San Martín Market Share: 2% Cement Capacity: 0.4 MT Clinker Capacity: 0.3 MT Group: Rizo-Patron Location: Lima Atocongo Plant Junin Condorcocha Plant Market Share: 50% Cement Capacity: 8.3 million MT Clinker Capacity: 6.7 million MT Market Share: 19% Location: Pacasmayo - La Libertad Cement Cap: 2.9 million MT Clinker Capacity: 1.5 million MT Location: Piura - Piura Cement Cap: 1.6 million MT Clinker Capacity: 1.0 million MT Group: Gloria Location : Lima Market Share: 4% Imports: 0.45 million MT Location: Yura Arequipa Market Share: 19% Cement Cap.: 3.77 million MT Clinker Capacity: 2.63 million MT *Others: 5%, decimals rounded Source: Asocem, INEI, SUNAT 11

12 2. 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. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 12

13 3. Unicon & Concremax

14 3. UNICON & CONCREMAX Concrete Segment Overview UNACEM s concrete segment consists of two companies Unión de Concreteras S.A. (UNICON) and CONCREMAX S.A.(former Firth), forming the largest concrete group in Peru Market Positioning UNICON and CONCREMAX have 61.0% of market share (71% in the relevant area) in the concrete segment (2015) UNICON was founded in May 1996 In 2011, UNICON acquired 100% of Firth shares. On November 2015, Firth changed its legal name and brand to CONCREMAX. UNICON & CONCREMAX provided a variety of services such as: ready-mixed concrete, concrete for mining, concrete for paving, pumping services, girders and concrete sleepers and aggregates Commercial strategy Specialized in megaprojects and large constructions Commercial strategy Specialized in small to medium projects and constructions Financial Snapshot LTM 2Q16 (USD MM) Assets and Capacity Total Assets 234 Installed Capacity 9.2 (million m 3 per year) Revenue 268 EBITDA 33 Concrete Plants 58 Facilities in Lima 13 Facilities in the rest of Peru 22 EBITDA Margin 12% Mixer Trucks 519 Source: Unicon. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 14

15 3. Solid cash flow generation Revenues (USD Millions) EBITDA and EBITDA Margin (USD Millions and %) Net Income & Net Margin (USD Millions and %) Net Debt (USD Millions) Source: Unicon. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 15

16 4. Celepsa

17 4. Celepsa Company description 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 Hydroelectric Power Plant El Platanal Location: Lima Generation Capacity: 220 MW Availability Index (Unit 1): 99.68% Availability Index (Unit 2): 99.94% 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 Financial Snapshot LTM 2Q16 (USD MM) Company structure Total Assets 353 Revenue 95 90% 10% EBITDA 31 50% 99% 99% EBITDA Margin 32% Hidro Eléctrica Marañon SRL Source: Celepsa. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 17

18 4. Keeping its competitiveness in the energy sector Revenues (USD Millions) EBITDA and EBITDA Margin (USD Millions and %) Net Income & Net Margin (UDS Millions and %) Net Debt (USD Millions) Source: Celepsa. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 18

19 5. Skanon / Drake

20 5. Skanon / Drake Company Description Products and Brands 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 3 rd 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 ASTM C 150 Type II/V (LA) Clinker Type II/V Special cement ABC (Aggregate Base Course) Crushed rock Concrete and mortar sand Recycled concrete and asphalt Financial Overview LTM 2Q16 (USD MM) Business Strategic Plan Total Assets 471 Revenue 83 Vertical Integration Strategic Alliances & Partnerships Core Values EBITDA -2 EBITDA Margin -2% Vision Source: Skanon. 20

21 5. Recovering US operations Revenues (USD Millions) EBITDA and EBITDA Margin (USD Millions and %) Net Income (UDS Millions) Net Debt (USD Millions) Source: Skanon. 21

22 6. UNACEM Ecuador

23 6. UNACEM Ecuador Company Description 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 Operations Otavalo 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 (2015): 1.4 million MT Financial Overview LTM 2Q16 (USD MM) Ownership structure Total Assets 217 Revenue % Inversiones Imbabura S.A % EBITDA % 99.99% EBITDA Margin 43% Source: UNACEM Ecuador. Cantyvol S.A. Lafarge Servicios Generales S.A. 23

24 6. Delivering solid margins Revenues (USD Millions) EBITDA and EBITDA Margin (USD Millions and %) Net Income & Net Margin (USD Millions and %) Net Debt (USD Millions) Source: UNACEM Ecuador. 24

25 7. Preansa

26 7. PREANSA Peru & Chile Company Description Production Capacity Prefabricados Andinos Perú S.A.C. (PREANSA Perú) is a subsidiary of UNACEM which mainly produces prestressed industrialized concrete structures Pillars Peru 90 m/day Pillars Chile 60 m/day The business has a strong growth potential and already has tripled sales in the past 3 years Industrial Belts 400 m/day Industrial Belts 300 m/day 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 2H16. Prestressed light beams Prestressed heavy beams 100 m/day 220 m/day Prestressed light beams Prestressed heavy beams Mezzanine Elements 120 m/day 60 m/day 300 m/day PREANSA has presence in Peru, Chile and, soon, Colombia Mezzanine Elements 140 m/day Wall panel 80 m/day Financial Overview LTM 2Q16 (USD MM) Ownership structure Peru Chile Total Assets 22 Total Assets % 51.0% Revenue 10 Revenue 13 Prefabricados Andinos Perú S.A.C. Prefabricados Andinos S.A. (Chile) EBITDA 3 EBITDA -1 EBITDA Margin Source: Preansa. 28% EBITDA Margin -8% 100% Prefabricados Andinos Colombia S.A.S. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 26

27 7. Building a high potential operation in the region Revenues (USD Thousands) EBITDA (USD Thousands) 21,501 Peru Chile 13,541 13,105 8,366 10,407 8,668 7,901 9, LTM2Q16 Net Income (USD Thousands) Net Debt (USD Thousands) Source: Preansa. Exchange rate from PEN to USD: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 27

28 8. Consolidated Financial Highlights

29 8. Optimistic about opportunities to come 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: 2012: 2.64 PEN/USD 2013: 2.70 PEN/USD 2014: 2.84 PEN/USD 2015: 3.19 PEN/USD LTM2Q16: 3.33 PEN/USD 29

30 8. Consolidated Debt Profile FX Distribution (USD Millions) Maturity Profile (As of 2015) Total Debt USD 1,525 Amortization Schedule 2Q16 (USD Millions) Source: UNACEM Exchange rate from PEN/USD 2Q16: PEN/USD 30

31 XIV Investors Conference September 28th 29th JW Marriott Hotel Lima - Peru Atocongo Plant, Lima