Slides
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4Q24 Corporate Presentation
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MACRO OVERVIEW 1.
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As of Dec-31 LTM, Pacasmayo’s cement shipments reached 2.8 million MT Listed on the Lima Stock Exchange (BVL: CPACASC1-PE) since 1995 and on the New York Stock Exchange (NYSE: CPAC) since 2012 About us We are a leading Peruvian cement company, with over 65 years of operating history
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Quarterly Highlights S/ 526.7 3.0% Compared to 4Q23 27.1% 3.7 p.p Compared to 4Q23 S/ 142.5 million 19.2% Compared to 4Q23 SALES VOLUME SALES OF GOODS EBITDA million EBITDA MARGIN
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Shareholders Structure
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Sales Evolution Adjusted EBITDA Evolution
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MARKET OVERVIEW 2.
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Plant 2020 2021 2022 2023 Nov-24 LTM % Share Pacasmayo 2,576 3,614 3,437 2,951 2,817 22.7% Imports 38 40 2 0 0 0.0% Total 2,614 3,654 3,439 2,951 2,817 22.7% UNACEM 4,172 5,838 6,297 5,617 5,491 44.2% Caliza Inca 382 492 515 585 743 6.0% Imports 493 691 202 145 206 1.7% Total 5,047 7,021 7,014 6,347 6,440 51.9% Yura group 2,019 2,904 3,047 2,581 2,544 20.5% Imports 189 150 67 65 67 0.5% Total Others 2,208 732 3,054 877 3,114 427 2,646 423 2,611 552 21.0% 4.4% Total Regions 10,601 14,606 13,994 12,367 12,420 100.0% We are the leading player in the Peruvian Northern Region Northern Region Central Region Southern Region Fuente: INEI, Aduanet Peruvian Cement Market-Cement Shipments (‘000 MT)
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COMPANY OVERVIEW 3.
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Selva Cement Plant Pacasmayo Piura Combined cement production capacity of 4.9 MM MT/year, and combined clinker production capacity of 3.08 MM MT/year. Cement capacity: 1.6 MM Mt/year Clinker capacity: 0.99 MM Mt/year Cement capacity: 0.4 MM Mt/year Clinker capacity: 0.29 MM Mt/year Cement capacity: 2.9 MM Mt/year Clinker capacity: 1.8 MM Mt/year Highly Efficient Facilities Cement Clinker Pacasmayo 57.5% 70.7% Piura 52.7% 61.5% Rioja 72.8% 83.4% Total 57.3% 68.9% Utilization Rate 2024
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Profile of Retail Customer Socioeconomic level CDE, 25-55 years old. 75% 75% 15% 10% Buys close to home because of savings on transportation cost. Chooses brand recommended by “maestro de obra”, who is the specialist.
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Profile of Private Sector Customer Large commercial and residential developments (shopping centers, supermarkets, housing complexes). 15% 75% 15% 10%
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Profile of Infrastructure Customer Large infrastructure projects, financed through private public partnerships. 10% 75% 15% 10% Public spending by local and regional governments (roads, hospitals, schools)
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High-Quality Product Portfolio
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Iquitos Tarapoto Yurimaguas 39 Chimbote 31 Trujillo 39 Tumbes 17 Piura 39 Chiclayo Jaen 22 Cajamarca 28 Pacasmayo 24 Rioja – Moyobamba 22 1 Pacasmayo has developed one of the largest construction products distribution networks in the country Distributes and sells cement and building materials from Pacasmayo and third-parties. Consist of 289 stores owners and 315 points of sale under the DINO brand, representing approximately 70% of our sales. Development of loyalty programmes and incentives Pacasmayo provides the majority of the products offered by DINO 24
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FINANCIAL OVERVIEW 5.
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Cement
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Concrete, pavement and mortar
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Precast
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Cash and Short-Term Deposits ( s/. mm)
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Debt and Leverage Net Leverage (times EBITDA)Total Adjusted Debt (S/. mm)
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CORPORATE GOVERNANCE 4.
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President of the Peruvian Institute of Independent Auditors - IPAI Current CEO of Integra Foundation and Director of Programs of Atlantic Government Institute Ana María Botella Serrano Former Chief Executive Officer of Banco de Credito del Peru Current Chairman of the Board of Cementos Pacasmayo and President of Hochschild Mining Esteban Chong León Non – Independent Directors Independent Directors Former Chairman of Fondo Mi Vivienda and Current CEO of Cementos Pacasmayo Humberto Nadal Master’s Student at Harvard Graduate School of Education Ana Sofía Hochschild Current co-founder at Alignable, North America´s largest medium businesses network and the non-profit school Gita Krishnamurthy Venkat Krishnamurthy Eduardo Hochschild (Chairman) Raimundo Morales (Vice-Chairman) Highly Reputed Board of Directors
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SUSTAINABILITY 5.
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Sustainable Pacasmayo Our sustainability strategy to 2030 It enables sustainability to be addressed transversally throughout the organization. It is associated with the company's purpose Provides tangible tools and KPIs to the Sustainability Committee to monitor ESG progress and goals. Cementos Pacasmayo's sustainability strategy aims to contribute to the three pillars of sustainability: Environmental, Social and Governance. 1. 2. 3.
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Clinkerization Optimisation Kiln 4 Pacasmayo Co-processing tests: solid waste Increase in HE consumption in replacement of Type I (mass channel and DINO) 2027 LC3-55. Pacasmayo Plant Thermal Efficiency Improvement: Upgrade of Kiln 3 Cooler 2027 Green H2 as combustion improver 2040 Carbon capture CCSU 2030 Microalgae for CO2 capture Timeline medium-term GHG reduction initiatives 2023 2024 2025 2027 - 2050 Fly Ash in cement and concrete Clinker cement factor reduction by use of additives 2026 Co-processing tests: use of waste oils 2028 95% of the products will be cement additives. 2028 Nature-based solutions Separate grinding of cement: Pacasmayo Plant
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We’ve been part of the DJSI MILA since 2019, and the Sustainability Yearbook since 2021 Dow Jones Sustainability Index For third consecutive year we disclose our results on the CDP platform, as art of our commitment to strengthen the enrvironmental transparency. Carbon Disclosure Project We reached the top 10 ranking for second consecutive year. Merco Empresas y Líderes Our Awards and recognitions
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Disclaimer This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. Forward-looking statements can be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other similar expressions or phrases. These forward-looking statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievement described in or implied by such statements. The forward-looking statements contained herein include statements about the Company’s business prospects, its ability to attract customers, its affordable platform, its expectation for revenue generation and its outlook. These statements are subject to the general risks inherent in Pacasmayo’s business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Pacasmayo’s business and operations involve numerous risks and uncertainties, many of which are beyond the control of Pacasmayo, which could result in Pacasmayo' expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of Pacasmayo. Additional information relating to the uncertainties affecting Pacasmayo' business is contained in its filings with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and Pacasmayo does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events. For a descript