Gcc Sab De Cv · BMV:GCC
Gcc Sab De Cv — Q4 2024 Earnings Presentation
29 slides from Gcc Sab De Cv's earnings presentation, Jan 29, 2025
Slide 1: Q4 2024 Earnings Conference Call
Q4 2024 EARNINGS CONFERENCE CALL ENRIQUE ESCALANTE, CEO MAIK STRECKER, CFO JANUARY 29, 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: 2024 Highlights
2024 HIGHLIGHTS Highest revenue and EBITDA EBITDA margin Record-breaking in GCC’s history surpassed the 2025 results target of 36% Significant milestones despite navigating challenging markets 3
Slide 4: Highlights: People, Planet and Profit pillars
HIGHLIGHTS People, Planet and Profit pillars • Economic uncertainties and shifting • Continue to shape the long-term vision market dynamics • Strengthening GCC’s operational foundation • GCC’s teams demonstrated remarkable performance, discipline and agility • Driving sustainable growth • Responded
Slide 5: People: Safety Strategy
SAFETY STRATEGY • Strengthening the Safety Leadership Model and Serious Injury and Fatality Prevention System • 33% reduction in recordable and lost time incidents PEOPLE • 17% reduction in lost workdays • Committed to becoming a world-class safety company 5
Slide 6: Great Place to Work and Training Institute
GCC CEMENT TRAINING INSTITUTE Conducted an Recognized as a • 12,924 hours of tailored training programs assessment in Q4 of specific training Great Place • 628 employees across all cement plants to Work needs • 46 specialized courses: certified company in both countries • Supported skill-building •
Slide 7: Planet: Reducing environmental footprint
Significant progress in Embracing cleaner fuel reducing options and reducing 9% environmental clinker factor alternative fuel PLANET footprint substitution rate 2ppt Leveraged the 2.8% YTD flexible fuel strategy 16ppt scope 1 CO2 emissions compared to 2023 alternative fuels substitution in Samalayuc
Slide 8: Energy Star and solar project
Completed in Continued January investment in the Rapid City plant Maintaining second phase of earned the EPA high operational the solar project in standards Montana Energy Star certification Expected to provide 22% of the plant’s electricity needs Lowering GCC’s environmental impact 8
Slide 9: Planet: Carbon capture and net-zero
PLANET • Advancing the journey toward net-zero concrete emissions • Partnered with Chart Industries, Cryogenic Carbon Capture™ Front-End Engineering Design Technology (FEED) study phase • Explore the deployment of a pilot at the Odessa cement plant • Planning to utilize captured carbon in enhanced o
Slide 10: Profit: GCC outperformed market trends
PROFIT • Encountered multiple challenges GCC outperformed market trends • Volume impact in U.S. and Mexico • Focused on: • PCA forecasted U.S. cement consumption to decline 4.6% in 2024 • Commercial strategy • GCC outperformed by 2.4 ppt • Operational efficiencies • Leveraging GCC’s flexible network
Slide 11: U.S. Overview
U.S. OVERVIEW • Robust ready-mix activity from agriculture and renewable energy projects 74% of sales • Cement volumes supported by: • SunZia Wind and Transmission project in NM • Windfarm project in West Texas Q4 24 vs. Q4 23 2024 vs. 2023 Volumes Prices Volumes Prices • Momentum slowed November an
Slide 12: Mexico Overview
MEXICO OVERVIEW 26% • Industrial segment challenges: of sales • Energy infrastructure limitations • Permitting delays • U.S. election cycle uncertainty • Mining volumes continued to decline Q4 24 vs. Q4 23 2024 vs. 2023 • Chihuahua is expected to benefit from the Volumes Prices Volumes Prices govern
Slide 13: Cost control and bottom-line results
Focused on cost control and implemented measures to address market dynamics Enabled GCC to deliver strong bottom-line results for 2024 13
Slide 14: M&A: Acquisition of three Texas aggregates businesses
M&A Expanding GCC’s footprint in 4 million tons of annual production Midland-Odessa, Dallas-Fort Worth, Acquisition of 3 Strengthen the and San Antonio ability to serve a pure play aggregates markets 50+ years of proven, high-quality diverse customer base businesses in reserves Texas Acquisitions va
Slide 15: Texas growth opportunities for aggregates
Texas is one of the U.S. fastest-growing states Dynamic • Dallas-Fort Worth leads the nation in real estate opportunities for investment and development growth Continue to pursue • San Antonio remains a hub of residential and commercial construction activity opportunities to grow GCC’s aggregates •
Slide 16: Financial Results
FINANCIAL RESULTS MAIK STRECKER, CFO
Slide 17: Consolidated Net Sales
CONSOLIDATED NET SALES +0.2% Q4 24 vs. Q4 23 2024 vs. 2023 1,364 1,367 Volumes Prices* Volumes Prices* 392 Cement 426 United States -0.8% 5.6% -2.2% 5.5% -1.3% Mexico -9.5% 7.2% -8.7% 4.9% Concrete 938 975 340 335 United States 4.5% 7.1% -5.6% 8.1% 103 88 237 247 Mexico -10.0% 6.5% -13.1% 6.7% Q4 23
Slide 18: Cost of Sales and SG&A
COST OF SALES SG&A % of sales % of sales 62.1% 64.0% 63.2% 62.1% 9.2% 7.9% 8.8% 8.7% +190 BPS - 110 BPS - 130 BPS - 10 BPS 862 849 119 118 211 215 31 26 Q4 23 Q4 24 2023 2024 Q4 23 Q4 24 2023 2024 (US$ Million) (US$ Million) 18
Slide 19: EBITDA
EBITDA EBITDA margin RECORD EBITDA MARGIN 34.5% 36.3% 34.6% 36.6% • Focus on cost and expense management + 180 BPS + 200 BPS • Leverage the flexible fuel strategy +6.2% • Optimized fuel use across the network • Delivered savings of 12% • Absence of the Samalayuca debottlenecking +3.7% 472 501 projec
Slide 20: Net Financial Income and Net Income
NET FINANCIAL US$11.1M US$47.8M INCOME Q4 2024 FY 2024 NET INCOME Net income as % of sales Q4 23 75 EPS = US$0.2299 22.1% + 1.2 PPT Q4 24 78 EPS = US$0.2383 23.3% (US$ Million) 2023 295 EPS = US$0.9034 21.7% + 2 PPT 2024 324 EPS = US$0.9894 23.7% (US$ Million) 20
Slide 21: Cash Flow
CASH FLOW US$ million Q4 24 Q4 23 Var 2024 2023 Var EBITDA 121.6 117.3 3.7% 500.6 471.5 6.2% Interest income (Expense) 4.1 6.3 -35.2% 43.6 36.9 18.1% Decrease (Increase) in Working Capital 33.9 25.2 34.5% (47.1) (70.5) -33.2% Taxes (24.6) (14.7) 68.1% (83.3) (73.5) 13.3% Prepaid expenses 1.2 (3.1) n
Slide 22: Capital Allocation
CAPITAL ALLOCATION Key growth initiatives US$100 million Acquisition of aggregates • Solar project in Trident operations in Texas • Making progress on the Odessa plant expansion • Completing the construction of the pyro processing area • Progressing with equipment installation • Preparing the commis
Slide 23: Net Leverage Ratio and cash
Driving long-term growth while NET LEVERAGE RATIO maintaining a strong balance sheet Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 -0.67x US$830.6M -0.99x -0.99x -0.78x -0.81x cash and equivalents 23
Slide 24: M&A Growth Strategy
M&A growth strategy Cement and aggregates Progress with the acquisition of three aggregates operations Proactively pursuing value-creating opportunities Deliver sustainable growth 24
Slide 25: 2025 Guidance
United States Consolidated Volumes EBITDA growth Mid-single digit Cement Low-single digit FCF Conversion Rate > 60% 2025 Prices Concrete Mid-single digit Total CapEx US$470M GUIDANCE Cement Strategic & growth US$400M Mid-single digit Maintenance US$70M Concrete Mexico Net Debt/EBITDA year-end Negati
Slide 26: Questions
QUESTIONS CONTACT: Maik Strecker, Chief Financial and Planning Officer mstrecker@gcc.com WWW.GCC.COM Sahory Ogushi, Head of Investor Relations soguship@gcc.com +52 (614) 442 3176 + 1 (303) 739 5943 2 6
Slide 27: Appendix
APPENDIX &}ccc
Slide 28: Income Statement
INCOME STATEMENT US$ million Q4 24 Q4 23 Var 2024 2023 Var Net sales 335.3 339.9 -1.3% 1,366.7 1,363.9 0.2% Cost of sales 214.6 211.0 1.7% 848.8 862.2 -1.6% SG&A 26.4 31.3 -15.9% 118.3 119.4 -0.9% Other expenses, net 3.7 2.3 58.7% 11.1 6.6 67.8% Operating income 90.7 95.3 -4.8% 388.4 375.7 3.4% Oper
Slide 29: Balance Sheet
BALANCE SHEET December 2024 December 2023 Variation Total assets 3,004.5 2,813.1 6.8% Current assets 1,206.2 1,331.2 -9.4% Cash and equivalents 830.6 958.7 -13.4% Other current assets 375.6 372.5 0.8% Non-current assets 1,798.3 1,481.9 21.3% Plant, property and equipment 1,427.6 1,142.9 24.9% Goodwi