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ENRIQUE ESCALANTE, CEO MAIK STRECKER, CFOJULY 23, 2025 Q2 2025 EARNINGS CONFERENCE CALL
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SAFE HARBOR STATEMENT This presentation has been prepared by GCC, S.A.B. de C.V. (together with its subsidiaries, “GCC”). Nothing within this presentation is intended to be taken by any person as investment advice, a recommendation to buy, hold or sell any security, or an offer to sell or a solicitation of offers to purchase any security. Information related with the market and the competitive position of GCC was obtained from public sources that GCC believes to be reliable; however, GCC does not make any representation as to its accuracy, validity, timeliness or completeness. GCC is not responsible for errors and/or omissions with respect to the information contained herein. Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.Forward Looking StatementsThis presentation includes forward-looking statements or information. These forward-looking statements may relate to GCC’s financial condition, results of operations, plans, objectives, future performance and business. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. The information in this presentation, including but not limited to forward-looking statements, applies only as of the date of this presentation. GCC expressly disclaims any obligation or undertaking to update or revise the information, including any financial data and forward-looking statements. Any projections have been prepared based on GCC’s views as of the date of this presentation and include estimates as well as assumptions about future events, which may prove to be incorrect or may change over time. The projections have been prepared for illustrative purposes only and do not constitute a forecast. While the projections are based on assumptions that GCC believes are reasonable, they are subject to uncertainties, changes in economic, operational, political, legal or public health crises including COVID-19 and other circumstances and risks including, but not limited to broad trends in business and finance, legislation affecting GCC’s securities, exchange rates, interest rates, inflation, foreign trade restrictions and market conditions which may cause actual financial and other results to be materially different from the results expressed or implied by said projections.EBITDAWe define EBITDA as consolidated net income after adding back or subtracting, as the case may be: (1) depreciation and amortization; (2) net financing expense; (3) other non-operating expenses; (4) taxes; and (5) share of earnings in associates. In managing its business, GCC relies on EBITDA as a means of assessing operating performance. We believe that EBITDA enhances the understanding of financial performance and ability to satisfy principal and interest obligations with respect to indebtedness as well as to fund capital expenditures and working capital requirements. We also believe EBITDA is a useful basis of comparing results with those of other companies because it presents results of operations on a basis unaffected by capital structure and taxes. EBITDA, however, is not a measure of financial performance under IFRS or U.S. GAAP and should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Our calculation of EBITDA may not be comparable to other companies’ calculation of similarly titled measures.Currency translations / physical volumesAll monetary amounts in this presentation are expressed in U.S. dollars ($ or US$). Currency translations from pesos into U.S. dollars use the average monthly exchange rates published by Central Bank of Mexico. These translations do not purport to reflect the actual exchange rates at which cross-currency transactions occurred or could have occurred.The average exchange rates (Pesos per U.S. dollar) used for recent periods are: Physical volumes are stated in metric tons (mt), millions of metric tons (mmt), cubic meters (m3), or millions of cubic meters (mm3). 2 Q225: 19.53-Q224: 17.23H1 25: 19.98-H1 24: 17.11
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Relying on operational agility, discipline execution, and long-term strategic focus3 Consolidated sales1% U.S. sales7.7% •Persistent inflationary pressure •Evolving trade dynamics •Depreciation of the Mexican peso •GCC continued to execute with discipline HIGHLIGHTS
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Q2 2024 Set a high benchmark with record margins Included several one-off benefits and timing effects 4 US$4 million adjustment in natural gas costs Higher proportion of lower-margin real estate sales for development 1.5%EBITDA like-to-like Unscheduled outages at the Odessa and Rapid City plants
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US$5 million already realizedCommitted to a US$12 million expense reduction Company-wide cost and expense optimization program•Adjust the cost structure•Improve internal efficiency•Protect margins •Targeted actions across operations, logistics, and support functions 5 US$7 million on track for H2
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6 PEOPLE•13 technical courses completed YTD •19 additional sessions currently underway •Several courses led by former employees •Transfer valuable operational knowledge to the next generation GCC Training Institute
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PEOPLE 7 Commitment to a World-class Safety Culture •37% reduction in recordable incidents in H1•Partnered with Wolters Kluwer – Enablon software platform•Specialized in H&S, sustainability and environmental management•Standardize processes, analyze information, and enhance decision-making Ranked #26in the Great Place to Work survey in Mexico
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Increased clean fuel usage 8 PLANET Higher natural gas consumption Greater alternative fuel substitution Increased share of blended cements 78%Blended cements of total cement sales 3.5ppt
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9 Highlights the broader ESG priorities and strategy 2024INTEGRATED REPORTAdvancing research into the use of calcined clays3.7%Scope 1 CO2 gross emissions 1 pptClinker factor PLANET
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75% of sales 10 Q2 25 vs. Q2 24H1 25 vs. H1 24VolumesPricesVolumesPricesCement4.2%0.6%0.7%1.6%Concrete20.7%9.5%15.4%10.6% •Growth driven by renewable energy projects•Ready-mix operations ran at capacity•Currently supplying 5 windfarm projects•More scheduled later this year•Infrastructure demand remains solid•Began Phase 2 of the I-10 project in El Paso•Continued work at Denver International Airport•Multiple paving contracts U.S. OVERVIEW
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Oil and gas softened demand•Declining rig counts and pressure on oil prices•Unplanned outage at the Odessa plant led some customers to source from competitors•Regained customers during Q2•Smaller portion of overall sales mix 11 Residential segment under pressure•Elevated housing inventory nationwide•Home affordability continues to decline•30-year mortgage rate well above 5.5%•Housing starts fell in May to their lowest level in 5 years U.S. OVERVIEW
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Temporary disruption at the Rapid City cement plant •The plant was offline for half of the quarter •Redirected supply from the Pueblo and Trident plants •Ensure uninterrupted service to customers in the region •Reduced production volumes put pressure on margins 12 U.S. OVERVIEW 12
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25% of sales 13 Q2 25 vs. Q2 24H1 25 vs. H1 24VolumesPricesVolumesPricesCement-6.2%4.2%-9.2%4.7%Concrete-13.1%3.0%-12.9%3.0% •Market conditions remained challenging •Softness in industrial demand and adverse weather•Industrial developers remain cautious•Mining segment remains muted•Residential demand remained strong•Federal housing initiative•Infrastructure opportunities under “Plan México”•Participating in the Sonora-Chihuahua highway project MEXICO OVERVIEW
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Odessa cement plant expansion•Fully on track, on time, and on budget•US$458 million deployed of the total investment•US$174 million remaining for the balance of the year14 New cement distribution terminal•Located in Trenton, Texas•Addresses growing customer demand•Strengthens GCC’s ability to serve a dynamic market•Operations began the first week of July•Cement initially supplied from the Samalayuca plant CAPITAL ALLOCATION
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MAIK STRECKER, CFO FINANCIAL RESULTS
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25327242644010892 207170 Q2 24Q2 25H1 24H1 25 633 -3.6% * Prices in local currency CONSOLIDATED NET SALES (US$ Million)United StatesMexico 610 360364 +1% 16 Q2 25 vs. Q2 24H1 25 vs. H1 24VolumesPrices*VolumesPrices*CementUnited States4.2%0.6%0.7%1.6%Mexico-6.2%4.2%-9.2%4.7%ConcreteUnited States20.7%9.5%15.4%10.6%Mexico-13.1%3.0%-12.9%3.0% Q2: +4% excluding the FX effect
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220243 402413 Q2 24Q2 25H1 24H1 25 COST OF SALES% of sales (US$ Million) + 580 BPS60.9%66.7%+ 420 BPS63.5%67.7% 17 •Lower production volumes:•Timing of plant maintenance •Rapid City incident•Absence of the natural gas hedge benefit•Higher transfer freight expenses•Greater share of real estate sales•Increased fuel prices
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3230 6458 Q2 24Q2 25H1 24H1 25 - 50 BPS8.7%8.3%- 50 BPS10.1%9.5% SG&A 134118217192 Q2 24Q2 25H1 24H1 25 -11.6% EBITDA margin -11.5% - 460 BPS37.1%32.5%- 280 BPS34.2%31.4% (US$ Million) EBITDA 18 % of sales (US$ Million)
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Net income as% of salesNET INCOME - 4.7 PPT24.9% 20.2% EPS = US$0.2738 EPS = US$0.2242 19 NET FINANCIALINCOME Q2 25 Q2 24 - 3.2 PPT21.9% 18.7% EPS = US$0.4235 EPS = US$0.3480(US$ Million)H1 25 H1 24 (US$ Million) 114 139 74 90 Q2 2025US$8.5MQ2 2024US$15.2M (18%) (44.1%)
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118 (33) (21) (13) 49 2 (5) EBITDAQ2 25Interest incomeWorking capitalincreaseTaxesAccrualsand othersMaintenanceCapExFree cash flowQ2 25 FREE CASH FLOW 20 US$ million 41.1%Cash conversion rate
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-0.78x-0.81x-0.67x-0.56x-0.48x Q2 24Q3 24Q4 24Q1 25Q2 25 NET LEVERAGE RATIO 21 Q2 25Q1 25Q224Q3 24Q424 US$827Mcash and equivalents US$30Mdividend payment US$88Mstrategic investments
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22 Laser-focused on operational efficiencies, cost optimization and disciplined capital deployment Remain confident in GCC’s ability to manage pressures and build long-term value
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2025 GUIDANCE ConsolidatedEBITDA growthMid-single digit decreaseFCF Conversion Rate> 60%Total CapExUS$400MStrategic & growthUS$330MMaintenanceUS$70MNet Debt/EBITDA year-endNegative 23 United StatesVolumesCementFlatConcreteMid-teens digits increasePricesCementFlatConcreteMid-single digit increaseMexicoVolumesCementMid-single digit decreaseConcretePricesCementMid-single digit increaseConcreteLow-single digit increase
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24 CONTACT:Maik Strecker, Chief Financialand Planning Officermstrecker@gcc.com Sahory Ogushi, Head of InvestorRelationssoguship@gcc.com +52 (614) 4423176+ 1 (303) 7395943 QUESTIONS WWW.GCC.COM
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APPENDIX
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INCOME STATEMENTUS$ millionQ2 25Q2 24VarH1 25H1 24VarNet sales363.9 360.3 1.0%610.4 633.2 -3.6%Cost of sales242.9 219.5 10.6%413.3 401.8 2.9%SG&A 30.0 31.5 -4.7%58.2 63.7 -8.6%Other expenses, net1.9 2.3 -20.4%3.4 4.0 -15.8%Operating income89.2 107.0 -16.6%135.6 163.7 -17.2%Operating margin24.5%29.7%22.2%25.9%Net financing expenses8.5 15.2 -44.1%16.0 25.4 -37.3%Earnings in associates0.6 0.0 n.m.1.5 0.0 n.m.Income taxes24.7 32.6 -24.1%39.0 50.6 -23.0%Consolidated net income73.5 89.6 -18.0%114.1 138.5 -17.7%EBITDA118.4 133.9 -11.6%191.9 216.8 -11.5%EBITDA margin32.5%37.1%31.4%34.2% 26
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June 2025 June 2024VariationTotal assets3,260.72,851.614.3%Current assets1,217.21,252.9-2.8%Cash and equivalents826.9879.4-6.0%Other current assets390.3373.54.5%Non-current assets2,043.51,598.727.8%Plant, property and equipment1,633.41,216.334.3%Goodwill and intangibles275.8267.03.3%Other non-current assets134.3115.416.4%Total liabilities1,189.01,054.912.7%Short-term liabilities304.3296.72.6%Long-term liabilities884.7758.316.7%Long-term debt 596.3497.120.0%Other long-term liabilities74.669.47.5%Deferred taxes213.7191.711.5%Total equity2,071.71,796.715.3% BALANCE SHEET 27
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US$ millionQ2 25Q2 24VarH1 25H1 24VarEBITDA 118.4 133.9 -11.6%191.9 216.8 -11.5%Interest income (Expense)2.4 7.1 -65.7%14.9 24.3 -38.7%Decrease (Increase) in Working Capital(32.9)(61.5)-46.5%(50.2)(75.9)-33.8%Taxes (21.4)(26.4)-19.0%(33.0)(31.6)4.2%Prepaid expenses3.2 3.0 7.6%3.9 5.6 -30.1%Accruals and other accounts(4.6)1.6 n.m.(33.0)(24.8)33.3%Operating Leases (IFRS 16 effect)(3.4)(3.1)9.8%(6.6)(6.4)3.8%Operating Cash Flow61.7 54.5 13.2%87.9 108.1 -18.7%Maintenance CapEx(13.1)(25.5)-48.7%(27.1)(37.4)-27.6%Free Cash Flow 48.6 29.0 67.7%60.8 70.7 -14.0%FCF conversion rate41.1%21.7%-6.0%31.7%32.6% FREE CASH FLOW 28