Gcc Sab De Cv · BMV:GCC
Gcc Sab De Cv — Q1 2025 Earnings Presentation
25 slides from Gcc Sab De Cv's earnings presentation, Apr 23, 2025
Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 EARNINGS CONFERENCE CALL ENRIQUE ESCALANTE, CEO MAIK STRECKER, CFO APRIL 23, 2025
Slide 2: Safe Harbor Statement
This presentation has been prepared by GCC, S.A.B. de C.V. (together with other results to be materially different from the results expressed or its subsidiaries, “GCC”). Nothing within this presentation is intended to be implied by said projections. taken by any person as investment advice, a recom
Slide 3: Highlights
HIGHLIGHTS • Entered 2025 with cautious optimism • Factors challenging the comparison to record Q1 2024: Q1 represents the smallest • Weather – Typical winter conditions contribution to full-year results • Tariffs – Uncertainty around global trade • Exchange rate – 20% depreciation of the Mexican pe
Slide 4: Strategy built on People, Planet and Profit pillars
Strategy built on Teams continue to demonstrate: the People, Planet and Profit pillars • Remarkable adaptability Supports long- • Focus and strong commitment to execution term value creation and • Ability to respond to challenges resilience • Safe and stable operations • Customer support without dis
Slide 5: People
GCC Cement Training Institute • Proactive engagement from employees • Actively identifying and participating in specific training PEOPLE • Tailored programs to meet specific plant needs • 4,200+ hours of training through 21 different programs • Enhancing technical skills and reinforcing safer operat
Slide 6: Safety Strategy
SAFETY STRATEGY • Advancing the Severe Injuries and Fatalities (SIF) process 31% Recordable and Lost Time Incidents • Reduce and eliminate exposure • Roundtables at cement plants and ready-mix operations • Facilitate open dialogue with frontline employees • Suggestions to strengthen Field Verificati
Slide 7: Planet
Pueblo plant GCC earned Improved the water received the EPA security rating to PLANET Energy Star “A-” certification rating in the CDP “B-” 2024 climate change disclosure Reducing environmental footprint while improving transparency Highest rating to date 7
Slide 8: Calcined clays study and low-carbon cement portfolio
Calcined clays study 71.4% of total cement sales • Industrial testing and technical analysis Increased blended cement production at the Tijeras and 1.7ppt • Chihuahua plant case study Rapid City plants • Expand the low-carbon cement products portfolio 1% Scope 1 CO2 gross emissions 8
Slide 9: Carbon capture system at the Odessa plant
Front-End Carbon capture Loading Advancing innovative, Evaluate financial system at the Phase 2 low-carbon solutions viability and Odessa plant of the FEED study determine next steps 9
Slide 10: U.S. Overview
U.S. OVERVIEW • Significant weather impact through mid-March • Record-breaking cold, snow and blizzard 68% • Mild weather and strong start in Q1 2024 of sales • Unplanned finish mill outage at the Odessa plant • Temporarily impacted production volumes • Proactively communicated with customers Q1 25
Slide 11: U.S. Overview
U.S. OVERVIEW Good momentum in project execution Strong infrastructure bidding activity • SunZia transmission project continues • I-25 highway project began in Denver • Started Phase 2 of the I-10 project in El Paso • Less than 2 years remaining in the 5-year IIJA, with only one-third of DOT funds a
Slide 12: Mexico Overview
MEXICO OVERVIEW • Weather disruptions, more severe than usual 32% of sales • Ongoing pause in the industrial segment • Absence of the contribution of two largest mining clients • Mineral reserve depletion • Residential segment continued to outperform Q1 25 vs. Q1 24 • Double-digit growth YoY Volumes
Slide 13: Capital Allocation
Odessa cement plant expansion • Remains on track and within budget • Favorable financing conditions for equipment purchases: • US$135 million • Two bank loans due in 5 and 10 years CAPITAL ALLOCATION Aggregates businesses in Texas • Full integration • Acquired limestone reserves in Abilene, Texas •
Slide 14: Financial Results
FINANCIAL RESULTS MAIK STRECKER, CFO
Slide 15: Consolidated Net Sales
CONSOLIDATED NET SALES -9.6% 273 Q1 25 vs. Q1 24 246 Volumes Prices* 99 Cement 79 United States -4.3% 3.0% Mexico -12.4% 5.2% 173 168 Concrete United States 4.7% 12.1% Q1 24 Q1 25 Mexico -12.7% 2.9% (US$ Million) United States Mexico -3.8% excluding the FX effect * Prices in local currency 15
Slide 16: Cost of Sales
COST OF SALES % of sales 66.8% 69.1% • Driven by: + 230 BPS • Unfavorable operating leverage • Lower sales volumes 182 170 Q1 24 Q1 25 (US$ Million) 16
Slide 17: SG&A and EBITDA
SG&A EBITDA % of sales EBITDA margin 11.8% 11.4% 30.4% 29.8% - 40 BPS - 60 BPS -11.3% 83 32 74 28 Q1 24 Q1 25 Q1 24 Q1 25 (US$ Million) (US$ Million) 17
Slide 18: Net Financial Income and Net Income
NET FINANCIAL US$7.5M US$10.2M INCOME (27.1%) Q1 2025 Q1 2024 NET INCOME (16.9%) Net income as % of sales Q1 2024 49 EPS = US$0.1496 17.9% - 140 BPS Q1 2025 41 EPS = US$0.1240 16.5% (US$ Million) 18
Slide 19: Cash Flow
CASH FLOW US$ million Q1 25 Q1 24 Var EBITDA 73.6 82.9 -11.3% Interest income (expense) 12.5 17.3 -27.6% Decrease (increase) in working capital (17.3) (16.9) 2.7% Taxes (11.6) (5.3) 120.6% Prepaid expenses 0.7 2.6 -72.5% Accruals and other accounts (27.7) (24.8) 11.4% Operating leases (IFRS 16 effec
Slide 20: Cash and Net Leverage Ratio
US$68M NET LEVERAGE RATIO strategic investments Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 -0.56x -0.67x US$873M -0.78x -0.81x -0.99x cash and equivalents 20
Slide 21: Remain confident in GCC's strategic direction
Remain confident in GCC’s strategic direction Robust balance sheet, disciplined operational approach, and strong customer relationships 21
Slide 22: Questions
QUESTIONS CONTACT: Maik Strecker, Chief Financial and Planning Officer mstrecker@gcc.com WWW.GCC.COM Sahory Ogushi, Head of Investor Relations soguship@gcc.com +52 (614) 442 3176 + 1 (303) 739 5943 2 2
Slide 23: Appendix
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Slide 24: Income Statement
INCOME STATEMENT US$ million Q1 25 Q1 24 Var Net sales 246.5 272.8 -9.6% Cost of sales 170.4 182.2 -6.5% SG&A 28.1 32.2 -12.6% Other expenses, net 1.6 1.7 -9.6% Operating income 46.5 56.7 -18.1% Operating margin 18.9% 20.8% Net financing expenses 7.5 10.2 -27.1% Earnings in associates 0.9 (0.0) n.m.
Slide 25: Balance Sheet
BALANCE SHEET March 2025 March 2024 Variation Total assets 3,144.5 2,888.7 8.9% Current assets 1,223.1 1,331.9 -8.2% Cash and equivalents 873.4 980.5 -10.9% Other current assets 349.7 351.5 -0.5% Non-current assets 1,921.4 1,556.8 23.4% Plant, property and equipment 1,516.0 1,176.9 28.8% Goodwill an