1. No category

Unión Andina
de Cementos
S.A.A
UNACEM S.A.A.
J.P. Morgan 6th Annual
Global Emerging Markets
Corporate Conference
February 23rd, 2015
Atocongo Plant, Lima
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
Nuevas
Inversiones S.A.
57.80%
Floating
Pension Funds
21.34%
Sindicato de Inversiones
y Administración S.A.
43.40%
24.30%
Minor floating
participation
10.96%
Cement
Concrete
Inversiones
Andino S.A.
Energy
GEA
Peru – Chile - Colombia
4
Sources: Company filings as of December 31st, 2014
1.Overview
Macroeconomic environment
GDP Growth
Real GDP and Inflation
(annual variation %)
(bn PEN and % )
5.8%
600
4.7%
4.8%
4.7%
4.1%
508
470
500
579
547
13.0%
420
3.9%
15.0%
11.0%
400
9.0%
2.4%
2.4%
2.2%
2.2%
1.7%
2.5%
300
7.0%
3.7%
3.4%
200
1.4%
2.8%
3.3%
1.5%
5.0%
3.0%
100
0.2%
1.0%
0
Peru
Chile
Colombia
Ecuador
2013
USA
Mexico
Brazil
17.2%
15.8%
2011
2014e
2012
Real GDP
Construction GDP vs. cement dispatches
(variation %)
17.8%
-1.0%
2010
2013
2014
Inflation
Granted Infrastructure Investment
(USD Billion)
15.2%
1.2
8.9%
3.6%
9.1%
3.9%
1.3%
2010
2011
Construction GDP
Sources: INEI, Apoyo, Latin Focus
2012
2013
Peruvian Cement Dispatches
4.0
3.6
2014
2015
2.9%
2014e
Granted
Projects begininng 2015
5
1.Overview
Pipeline of infrastructure auctioned projects 2015 - 2018
N°
Project
Company
Location
Investment
(USD Millions)
Construction start
Centro
5,658
2015
1 Metro de Lima - Línea 2
Consorcio Nuevo Metro de Lima
2 Vía Expresa Javier Prado
Graña y Montero
Lima
900
Indefinido
3 Amp. Jorge Chávez
Lima Airport Partners
Lima
800
2015
4 Vía Parque Rímac
OAS
Lima
750
2012
5 Rutas Nuevas de Lima
Odebrecht
Lima
590
2013
6 Longitudinal de la Sierra Tramo 2
Consierra Tramo II
La Libertad, Cajamarca
552
2015
7 Aeropuerto Internacional Chinchero
Consorcio Kuntur Wasi
Cusco
420
2016
8 Muelle Norte - Etapas 1 y 2
APM Terminals
Lima
370
2012
9 Red Vial 4 (Autopista del Norte)
Autopista del Norte
Lima, Ancash, La Libertad
340
2010
La Libertad, Lambayeque, Piura
300
2011
Arequipa
260
2014
Piura
227
2012
Sur
200
2015
Lima
200
2016
Lima, Ica
200
Indefinido
Ica
182
2015
Lima
150
2012
Lima, Junín, Pasco
126
2013
Ica
107
2013
Lima
100
2014
10 Autopista del Sol
Consorcio Vial del Sol
11 Muelle de Minerales - Puerto Matarani Tisur
12 Puerto de Paita
Terminales Portuarios
Euroandinos
13 Panamerica Sur
Consorcio Concesión Vial del Sur
14 Vía Expresa Sur
Graña y Montero
15 Amp. Red Vial 6
Coviperu
16 Terminal Portuario General San Martín Consorcio Paracas
17 Muelle de minerales - Puerto del CallaoConsorcio Transportadora Callao
18 IIRSA Centro - Tramo II
Consorcio Desarrollo Vial del
Perú (Deviandes)
19 Modernización del Aeropuerto de Pisco Aeropuertos del Perú
20 Amp. Red Vial 5
Norvial
Total investment
12,432
6
Sources: Ositran, Proinversión, APOYO Consultoría
2. UNACEM
Peru
Condorcocha Plant, Tarma (3,950 m.a.s.l)
2. UNACEM Peru
Overview
Cement Plants

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 provides a significant
source of energy
Atocongo
Location: Lima
Location: Junín
Clinker Capacity: 4.8 million MT
Clinker Capacity: 1.9 million MT
Cement Capacity: 5.5 million MT
Cement Capacity: 2.1 million MT
Clinker Production(2014): 4.3million MT
Clinker Production(2014): 1.6 million MT
Cement Production(2014): 3.8 million MT
Cement Production(2014): 1.9 million MT
Limestone Reserves: 36 years
Limestone Reserves: 158 years
Distribution and Services
Financial Snapshot – 2014 (USD MM)
Total Assets
2,799
Progre-Sol
Commercialization
Revenue
630
EBITDA
258
Hardware store with over 287
points of sale
Hatun-Sol
EBITDA Margin
41%
Local Ratings
APOYO: AA
Class: AAA
Financing and Advising
 Product financing and
advising families on
building techniques
Duravía
•
Source: Company filings.
Condorcocha
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
8
2. UNACEM Peru
Peruvian cement market
Group: Hochschild
Location: Rioja – San Martín
Market Share: 2% | Cement Capacity: 0.3 MT
Clinker Capacity: 0.2 MT
Group: Rizo-Patrón
Location: Pacasmayo - La Libertad
Market Share: 19% | Cement Cap: 2.9 million MT
Clinker Capacity: 1.3 million MT
Location:
Lima – Atocongo Plant
Junín – Condorcocha Plant
Group: Gloria
Market Share: 50%
Cement Capacity: 7.6 million MT
Clinker Capacity: 6.7 million MT
Location: Juliaca – Puno
Market Share: 5% | Cement Cap.: 0.3 million MT
Clinker Capacity: 0.3 million MT
Location : Lima
Market Share: 5%
Imports: 0.5 million MT
Location: Yura – Arequipa
Market Share: 15% | Cement Cap.: 3.0 million MT
Clinker Capacity: 2.0 million MT
*Others: 4%
Source: Asocem, INEI, SUNAT
9
2.UNACEM Peru
Separated Unaudited Financial performance
Revenues
EBITDA and EBITDA Margin
(USD Millions, 2014 accumulated)
617
(USD Millions and %)
638
630
EBTIDA
EBTIDA Margin
541
258
300
457
241
250
201
200
293
215
37.8%
42.0%
41.0%
41.0%
40.0%
39.0%
37.1%
38.0%
37.0%
34.9%
150
143
36.0%
35.0%
100
34.0%
33.0%
50
32.0%
-
2011
2012
2013
1Q14
2Q14
3Q14
4Q14
31.0%
2011
2012
Net income
2013
2014
Net debt
(USD Millions)
(USD Millions)
129
1,276
110
97
73
609
2011
Source: Company filings.
2012
2013
2014
2011
668
2012
760
2013
2014
Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD and 2014:2.989 PEN/USD
10
3. Unicon &
Firth
3. Unicon & Firth
Concrete Segment Overview
•
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
Market Positioning
•
UNICON and Firth have 56.0% of market share (70% in the
relevant area) in the concrete segment (2014)
Commercial strategy
• Specialized in
megaprojects and large
constructions
Financial Snapshot – 2014 (USD MM)
Total Assets
Revenue
300
Commercial strategy
• Specialized in small to
medium projects and
constructions
Assets and Capacity
Installed Capacity
9.2 (million m3 per year)
Concrete Plants
58
Facilities in Lima
13
351
EBITDA
50
Facilities in the rest of Peru
22
EBITDA Margin
14%
Mixer Trucks
519
Source: Unicon.
12
3. Unicon & Firth
Financial performance
Revenues
EBITDA and EBITDA Margin
(USD Millions)
(USD Millions and %)
352
EBTIDA
351
312
60
15.3%
EBTIDA Margin
47
15.5%
48
247
50
50
40
15.0%
38
15.1%
14.5%
13.6%
30
14.3%
20
13.5%
10
13.0%
-
2011
2012
2013
2014
12.5%
2011
2012
Net income
2013
(USD Millions)
29
197
157
21
2011
Source: Unicon.
128
17
2012
2014
Net debt
(USD Millions)
16
14.0%
2013
108
2014
2011
2012
2013
2014
Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD and 2014:2.989 PEN/USD
13
4. Celepsa
4. Celepsa
Company description
•
The company’s main customer is UNACEM (29% of total sales),
though it has a portfolio of 13 additional customers
Hydroelectric Power Plant
El Platanal
Location: Lima
The company’s asset is the hydroelectric plant “El Platanal” which
generates 220 MW
Generation Capacity: 220 MW
•
CELEPSA’s strategy is to develop a balanced, efficient and
competitive portfolio of electricity generation
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
•
Availability Index (Unit 1): 99.68%
Financial Snapshot – 2014 (USD MM)
Total Assets
378
Revenue
91
EBITDA
36
EBITDA Margin
39%
Source: Celepsa.
Company structure
90%
50%
10%
99%
99%
Hidro
Eléctrica
Marañon SRL
15
4. Celepsa
Financial performance
Revenues
EBITDA and EBITDA Margin
(USD Millions )
(USD Millions and %)
EBTIDA
98
91
50
47
80.0%
40
45
78
EBTIDA Margin
40
40
68
35
69.2%
51.5%
70.0%
36
60.0%
40.7%
30
39.4%
25
50.0%
40.0%
20
30.0%
15
20.0%
10
10.0%
5
0
2011
2012
2013
2014
0.0%
2011
2012
Net income
2013
2014
Net debt
(UDS Millions)
(USD Millions)
170
16
130
13
117
106
6
1
2011
Source: Celepsa.
2012
2013
2014
2011
2012
2013
2014
Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD and 2014:2.989 PEN/USD
16
5. Skanon /
Drake
5. Skanon / Drake
Company Description
•
Drake UNACEM’s start up subsidiary located in Arizona, USA, with
state-of-the-art facilities
•
There are six main competitors in the market where Drake holds
the 2nd and 3rd largest market share in concrete and cement
respectively
•
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
Financial Overview – 2014 (USD MM)
Total Assets
489
Revenue
83
EBITDA
-8
•
•
•
Various concrete products depending on
specifications
Grout
Slurry
Shotcrete
•
•
•
•
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
Off-spec cement
•
Business Strategic Plan
Strategic
Alliances &
Partnerships
Vertical
Integration
Core Values
Vision
EBITDA Margin
-9%
18
Source: Skanon.
5. Skanon / Drake
Financial performance
Revenues
EBITDA and EBITDA Margin
(USD Millions )
(USD Millions and %)
EBTIDA
83
0
69
0.0 %
2011
-2
51
EBTIDA Margin
2012
-9.7%
2013
2014
-10.5%
-9.3%
-5.0%
-4
37
-10.0%
-5
-6
-15.0%
-8
-10
-7
-20.0%
-8
-25.0%
-31.8%
-12
2011
2012
2013
2014
-30.0%
-12
-14
-35.0%
Net income
Net debt
(UDS Millions)
2011
2012
2013
(USD Milliona)
2014
119
113
113
-13
105
-23
-23
-25
2011
Source: Skanon.
2012
2013
2014
19
6. UNACEM
Ecuador
6. UNACEM Ecuador
Company Description
•
•
•
•
Operations
Otavalo
UNACEM Ecuador was acquired during 2014, consolidating and closing
the transaction by mid November 2014 with all regulatory permits
2 Lines: 1 Kiln SPH and 1 Kiln AS precalciner
The company has the widest product portfolio in the market, tailored
Location: Imbabura (100km North of Quito)
for the construction sector
Clinker Capacity: 1.0 million MT
UNACEM Ecuador is a fully integrated company with high performance
Cement Capacity: 1.5 million MT
assets
Production (2014): 1.5 million MT
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
Financial Overview – 2014 (USD MM)
Total Assets
Ownership structure
226
100%
Inversiones
Revenue
Imbabura S.A.
187
98.57%
EBITDA
80
99.99%
EBITDA Margin
43%
Cantyvol S.A.
Source: UNACEM Ecuador.
99.99%
Lafarge
Servicios
Generales S.A.
21
6. UNACEM Ecuador S.A.
Financial performance
Revenues
EBITDA and EBITDA Margin
(USD Millions )
(USD Millions and %)
186
187
EBTIDA
EBTIDA Margin
90
78
80
44. 0%
80
66
42. 0%
70
58
60
166
40. 0%
50
161
38. 0%
40
30
36. 0%
20
34. 0%
10
0
2011
2012
2013
2014
32. 0%
2011
2012
Net income
2014
Net debt
(USD Millions)
(USD Millions)
45
36
2013
44
43
39
37
29
25
2011
Source: UNACEM Ecuador.
2012
2013
2014
2011
2012
2013
2014
22
7. Preansa
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
•
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 1Q15.
•
PREANSA has presence in Peru, Chile and, soon, Colombia
Peru
Pillars
90 m/day
Pillars
60 m/day
Industrial
Belts
400 m/day
Industrial Belts
300 m/day
Prestresse
d light
beams
100 m/day
Prestressed light
beams
120 m/day
Prestressed
heavy beams
60 m/day
Mezzanine
Elements
300 m/day
Wall panel
80 m/day
Prestresse
d heavy
beams
220 m/day
Mezzanine
Elements
140 m/day
Financial Overview – 2014 (USD MM)
Peru
Chile
Ownership structure
Chile
Total
Assets
16
Revenue
8
Revenue
20
EBITDA
2
EBITDA
3
30%
EBITDA
Margin
Total
Assets
29
50.0%
Prefabricados
Andinos Perú S.A.C.
51.0%
Prefabricados
Andinos S.A. (Chile)
100%
EBITDA
Margin
Source: Preansa.
14%
Prefabricados
Andinos Colombia
S.A.S.
24
7. PREANSA
Financial performance
Revenues
EBITDA
(USD Thousands )
Peru
(USD Thousands )
Chile
Peru
Chile
20,430
3,606
2,852
2,486
2,429
10,049
1,649
8,236
7,899
5,366
2011
2012
2013
2014
2011
2012
Net income
2014
Net debt
(USD Thousands )
(USD Thousands )
Peru
Peru
2013
Chile
Chile
3,337
1,710
3,094
2,928
1,350
1,952
827
1,564
827
418
2011
Source: Preansa.
2012
2013
2014
2011
2012
2013
2014
Exchange rate from PEN to USD: 2011-2013: 2.796 PEN/USD and 2014:2.989 PEN/USD
25
8. Consolidated
Financial
Highlights
8. Consolidated Financial Highlights
Consolidated debt
Debt profile
Currency debt profile
(As of 4Q14)
(USD Millions )
Short term
15%
PEN, 290
Long term
85%
USD, 1,330
Debt amortization profile
(USD Millions)
748
235
234
222
135
46
2015
2016
UNACEM separeted
2017
Celepsa
Unicon
2018
Skanon
2019
Preansa
From 2020
UNACEM Ecuador
27
Unión Andina
de Cementos
S.A.A UNACEM S.A.A.
J.P. Morgan 6th Annual
Global Emerging Markets
Corporate Conference
February 23rd, 2015
Atocongo Plant, Lima
Appendix
1.Overview
History
Cemento Andino
starts the
construction of the
Condorcocha plant
1916
Constitution of
Compañía Peruana
de Cemento
Portland
1956
Military government
confiscates Cemento
Andino and
Cementos Lima
1967
Cementos Lima S.A.
is founded
(predecessor of
UNACEM)
1974
UNICON is created
from the merger of
COPRESA and
HORMEC
1994
Cementos Lima is
privatized for a
second time,
allowing the RizoPatrón group to gain
control of the
company
1996
1999
Cementos Lima
triples its cement
production capacity
(from 1.5 million MT
to 4.5 million MT)
UNACEM has almost 60 years of successful operations in the Peruvian
market…
1.Overview
History (cont.)
Atocongo Plant –
Conchan Pier
underground
conveyor belt is
completed
2007
Cemento Andino is
privatized and the
Rizo-Patrón group
recovers control of
the company
2008
Drake Cement
begins operations in
the US.
UNICON acquires
Firth
2010
Compañía Eléctrica
el Platanal S.A.
(“CELEPSA”) hydro
power plant begins
its operations
2011
Expansion of kiln 1
from 4.5 million MT
to 5.5 million MT in
the Atocongo plant
is concluded
2012
UNACEM is founded
as a result of a
merger between
Cementos Lima and
Cemento Andino.
Condorcocha kiln IV
expansion is
concluded
2013
2014
UNACEM acquires
Lafarge in Ecuador
and is now present
in 5 countries: Peru,
Ecuador, U.S., Chile
and Colombia
…developing new business segments and entering new markets in the
region
North America
Skanon
•
UNACEM holds 94.6% of Drake
Cement through wholly owned
subsidiary Skanon Investments
•
In 2013, UNACEM constituted a
Preansa subsidiary in Colombia
which is expected to start operations
in 4Q15
Arizona - USA
•
•
•
•
In November 2014, UNACEM
acquired 98.57% of Lafarge
Cementos S.A – today UNACEM
Ecuador S.A.
UNACEM has several subsidiaries in
Peru, country where it leads the
cement industry with 50% market
share
Concrete market share: 60%
In January 2014, the board of
directors approved the acquisition of
51% of Prefabricados Andinos S.A.
(Preansa) in Chile for US$ 7.1 MM
South America
Colombia
Ecuador
Peru
Chile
2. UNACEM Peru
Vertical integration
Energy Supply
Raw Material Supply
Compañía Eléctrica el Platanal (CELEPSA)
operates a 220MW hydroelectric power plant
(UNACEM owns 90% of CELEPSA)
GEA
Carpapata
I and
Carpapata
II
Generación Eléctrica Atocongo (GEA) operates
Atocongo’s thermo plant (41.8 MW) supplying
electricity during peak hours
•
UNACEM has enough limestone reserves to supply its own demand for the
next 158 years in Condorocha and 36 years in Atocongo
•
Atocongo’s plant reserves are located beside the facilities which considerably
reduces transportation costs
Carpapata
I and Carpapata
II are 2
hydroelectric power plants located in Junin that
provide part of the power to Condorcocha plant
Atocongo and Condorcocha Plants
Distribution Network
•
•
Progre-Sol is the largest
hardware store in Peru
(exclusive for UNACEM) with
287 points of sale
Additionally, Progre-Sol
supplies 7,200+ independent
hardware stores
Conveyor Belt + Conchan Pier
•
UNACEM exports a portion of its production and imports
raw materials through the Conchan Pier
•
The conveyor belt allows materials to get transported
from the plant to the Pier and vice versa
Volumes of concrete for Lima
More than 4 million
M3 of concrete required
Línea 2 del Metro
2,300,000
5 years
Carretera Ambo – Oyon
480,000
18 months
Eje Vial Javier Prado – La Molina –
Faucett
300,000
4 years
Conexión – La Molina – Angamos Lima
250,000
2 years
Tunel de Gambetta
220,000
1 year
Parques de Comas
200,000
8 months
Centro Comercial Sur
90,000
1 year
Prolongación Vía Expresa
73,000
2 years
Eje Vial Javier Prado – La Marina –
Faucett
73,000
2 years
Edificios de Viviendas Villanova
67,227
7 years
34
3. Unicon & Firth
Full range of products and services
1
2
3
Ready-Mixed Concrete
•
519 mixer trucks
•
3,210 million m3 dispatched
annually
US$ 294.1 MM sold in 2013
•
4
Concrete for Mining
•
Concrete ready-mix, shotcrete
services
•
•
Concrete production: 7,200 m3
per month
•
•
Shotcrete releases: 5,800 m3 per
month
•
5
•
149 concrete pumps
Annual pumping 2013: 1.8 million
m3
US$ 23.5 MM in 2013
Specialized in the construction of
urban pavements and roads
3 pavers with a capacity of 180
linear meters per hour
From 2 to 7.4 MT width, and
thickness from 15 to 40 cm
6
Pumping Service
•
•
Concrete for Paving
Girders and Concrete Sleepers
Aggregates
•
Capacity of concrete sleepers:
180,000 units
•
Production of fine and coarse
aggregates in own quarries
•
400,000+ units produced to date
•
•
100% market share
Owns 5 different quarries and 2
are a in development process
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Capacity: 8.4 million MT