EXPAnSIon WItHOut BORDeRs · 6 2014 AnnuAl RepoRt 7 mETroPoLITAno CEnTrAL STATIon, LImA. of ThE...

2 2014 AnnuAl RepoRt 3

2014Annual report

EXPAnSIon WItHOut BORDeRs

EXPAnSIon WItHOut BORDeRs

2014Annual report

54 2014 AnnuAl RepoRt

AS A LEADIng ComPAny CounTryWIDE AnD WE ArE fuLLy CommITTED

To ConTInuE our groWTh beyond ouR boRdeRS, tHuS unCeASIngly

ContRIbutIng to tHe SuStAInAble developMent of tHe CoMMunIty.

we HAve poSItIoned

unaceM


mETroPoLITAno CEnTrAL STATIon, LImA.

of ThE ShArES of unACEm ECuADor S.A.beCAMe tHe MIleStone tHAt MARked ouR expAnSIon In tHe RegIon.

tHe puRCHASe of

98.57%


roAD InTErChAngE Av. PrImAvErA, LImA.

uS$ 625.0 MilliOn tHe plACeMent of InteRnAtIonAl bondS In tHe AMount of

AChIEvED By unACEm rEPrESEnTS ThE LArgEST CorPorATE

hIgh-yIELD ISSuAnCE of A PEruvIAn ComPAny.


ThE nATIonAL LIBrAry, LImA.

ongoIng pRoJeCtS

StAkeHoldeRS

AdMInIStRAtIon

eConoMIC-fInAnCIAl ReSultS

Acquisition of unACeM ecuador S.A. (formerly lafarge Cementos S.A.)International issuance of corporate bondsAcquisition of pReAnSA CHIle

Concrete blocks plant in CajamarquillaModernization and capacity expansion of the Atocongo plantCement mill 8 and bagging unit 5 at the Condorcocha plantCarpapata III hydroelectric power plantnew cement bagging unit 6 at the Atocongo plantnew production line of kiln 5works for taxes

our employeesoccupational safety and healthenvironmental managementdevelopment of our communities

board of directorsManagement good corporate governance

Administration, direction and technical assistance Recognition

Macroeconomic environment operationsSubsidiaries and affi liates

tHe CoMpAny And ItS SubSIdIARIeS

20303135

16

36464856

7076767980818183

84929496

102

124128128134

136136

106

expAnSIon

letter from the Chairman of the board

CO

Nt

eN

t


SECTIon 2 of ThE LImA mETro LInE 1, LImA.


(in millions of nuevos soles) (in millions of nuevos soles) (times)(in millions of nuevos soles)SALES CAPEXEBITDA DEBT/EBITDA

of pReAnSA CHIle.

+6.1% puRCHASe of

R e s u l t s

51.0% of ShArESgRowtH In ouR SAleS In 2014.

0 0 0 0.0

200 100 100 1.0

400 200 200 2.0

2010 2010 2010 2010

1,51

0

587 61

0

2.7

600 300 300 3.0

800 400 400 4.0

1,200 500 500 5.0

1,400 600 600 6.0

1,600 700 700 7.0

1,800 800

2,000 900

1,51

4

573

345

2.9

2011 2011 2011 2011

1,72

6

621

333

3.0

2012 2012 2012 2012

1,77

5

701

356

3.0

2013 2013 2013 2013

1,88

3

778

436

5.0

2014 2014 2014 2014


GROWtH IN DIsPAtCHes AND eBItDA MAINlY OWING tO COst eFFICIeNCY. tHe CONDORCOCHA AND AtOCONGO PlANts ReACHeD 100.0% OF tHeIR eXPANDeD CAPACItY. stOCK suRPluses eNABleD ResuMPtION OF eXPORts. tHe PROGRe-sOl NetWORK Is tHe lARGest NetWORK OF HARDWARe stORes IN tHe COuNtRY.

RegISteRed by CeMent dISpAtCHeS was 1.6%.

growthletteR fRoM tHe CHAIRMAn of tHe boARd

During 2014, a signifi cant slowdown has been observed in Peru: the country went from 5.5% growth in 2013, to 2.4% in 2014. the impact of suspending public works and the reduced private investment during the fi rst half of the year had a considerable effect on self-construction, causing our cement dispatches to grow only 1.6% as of the end of the year. Nevertheless, the eBItDA grew 14.3%, mainly explained by the increasing cost effi ciency.

With regard to our operations, in 2014 both our Condorcocha and Atocongo plants reached virtually 100.0% of their expanded capacity. For our clinker production, we worked with a combined utilization rate of 89.0%, and for cement, with a combined utilization rate of 75.0%, which enabled us to lower our fuel and electric power costs; furthermore, the reduced growth of the local cement market, added to the increased clinker production, generated stock surpluses so that we were able to resume our export operations, which this year reached a volume of 423,835 tons of clinker in the last eight months of the year.

Meanwhile, we continued working in strengthening our commercial relations through the entire value chain. the Progre-sol network reached 288 hardware points of sale and, for the sixth year in a row, is the leading hardware stores network in the country and adds to the 40 direct points of sale in the central and northeastern Andean regions. In addition, Cemento sol entered the ranking of most valued brands in latin America, according to the consulting fi rm Millward Brown.

this was also a great year for our subsidiaries, which have kept their operating and resource generation levels. uNICON and Firth continue leading the ready mix industry, with more than 56.0% share of the national market and, despite the slowdown in important infrastructure projects, they were able to keep the combined dispatch of both companies at levels similar to those of the previous year.

CelePsA had a slightly higher electricity production than in 2013; however, on the other hand, its revenues were 1.5% lower due to the unfavorable commercial situation of the energy market. Furthermore, this year was quite meaningful for CelePsA, as it started to grow. In November, it acquired Hidro Marañón, a 20 MW generation project with renewable energy resources (ReR) that will demand a total investment of us$ 60.0 million and will be entirely funded with CelePsA cash fl ow.

In the united states we continue our efforts to achieve that both Drake Cement and Drake Materials streamline their operations in order to have the adequate conditions to meet the surge of demand in Arizona. this year, Drake Cement produced almost 315,000 short tons of cement and we feel confi dent that fi nally, the projections of the Portland Cement Association for the next fi ve years will reach an average growth of more than 10.0% per year in Arizona, which will enable Drake to generate positive cash fl ows.

With our subsidiaries PReANsA PeRÚ and PReANsA CHIle and with the forthcoming execution of the PReANsA COlOMBIA project, we are committed to the development of effi cient and safe engineering solutions so that we may expand the products and services we offer.

To ThE ShArEhoLDErS of unACEm:


2014 WAs AN IMPORtANt YeAR FOR OuR suBsIDIARIes. ReleVANt MIlestONe IN OuR GROWtH stRAteGY. ACQuIsItION OF 98.57% sHARes OF WHAt tODAY Is uNACeM eCuADOR s.A. suCCessFul IssuANCe OF CORPORAte BONDs IN tHe INteRNAtIONAl MARKet. CONtINue CReAtING VAlue FOR OuR sHAReHOlDeRs AND All OuR stAKeHOlDeRs.

ricardo rizo Patrón de la Piedrachairman oF the board

Finally, but not less important, the gratitude of the Board of Directors to sindicato de Inversiones y Administración s.A., who continued to be in charge of the General Management of uNACeM; to Inversiones Andino s.A. and ARPl tecnología Industrial, who offer us administrative and technical consulting services; and our special recognition to each and every one of our employees who engage one hundred per cent of their efforts and commitment to stand up to the challenges presented. We will continue placing our bets on the continuous growth of our production activities, fostering the development of the country and the region and creating value in new markets, with new products for all our stakeholders.

I invite you to learn about the most relevant events of the performance of uNACeM during 2014.

Yours sincerely,

undoubtedly, 2014 also represents a relevant milestone in our growth strategy. the acquisition of 98.57% of lafarge Cements s.A., now uNACeM ecuador, the second largest cement producer in the ecuadorian market, turns us into a company that is becoming signifi cant in the region. We are confi dent that this acquisition will produce great synergies aside from increasing our production capacity of cement by 18.0%.

In 2014, uNACeM ecuador reached sales amounting to us$ 186.0 million and an approximate market share of 22.0%. this new investment represents great potential to develop new business lines and offer new solutions to our clients in ecuador, always aligned with the purpose of fostering the development of society, as we have been doing for more than 60 years in Peru.

to materialize this acquisition, we decided to enter the international capitals market. this process represented a challenge for uNACeM and all its subsidiaries, as the issuance involved arduous work for all the companies in the group. At the end of October, the trust of the international capitals market was refl ected in a successful issuance of corporate bonds that totaled us$ 625.0 million with 7 year maturity. this fi rst international issuance of uNACeM achieved a demand of almost us$ 3.0 billion and represents the largest high-yield issuance in the history of Peru, confi rming the trust of the international market in the company and compelling us to keep working towards creating value for our shareholders, our investors and, in general, all our stakeholders.

gRowtH: 14.3%.EBITDA

e X P A N s I O N


norTh PIEr ConTAInErS TErmInAL, LImA.

ThE CurrEnT CEmEnT ProDuCTIon CAPACITy of unACEm

9.7 MilliOn TOnS, WhICh ConSoLIDATES ThE orgAnIZATIon’S groWTh

AnD ITS CommITmEnT WITh ThE rEgIon.

And ItS SubSIdIARIeS totAlS



in inTernaTiOnal bOnDS aT 7 yearS mATurITy AnD 5.875% rATE.

AT ITS oTAvALo PLAnT, unACEm ECuADor ProDuCES

per year, WITh A mArKET ShArE of 22.0%.

1.5 MilliOn TOnS OF ceMenT

ThE ACquISITIon of

in The reGiOn.

51.0% OF preanSa chile STrenGThenS Our preSence

WE InITIATED STuDIES for ThE ConSTruCTIon of

ThE TruST of ThE InTErnATIonAL CAPITALS mArKET EnABLED uS To PLACE preanSa cOlOMbia. uS$ 625.0 MilliOn


expansion without borders

9.7 million tons/year

13.2 million m3/year

299 mw

4 CeMent plAntS1 teRMInAl poRt

44 fIxed plAntS30 MobIle plAntS640 MIxeR tRuCkS2 InduStRIAlIZed ConCRete StRuCtuReS plAntS

3 HydRoeleCtRIC poweR plAntS2 tHeRMAl poweR plAntS

CeMent

ConCRete

eneRgy

peRu / eCuAdoR / uSA

peRu / uSA / CHIle

peRu / eCuAdoR

InStAlled CApACIty:

InStAlled CApACIty:

InStAlled CApACIty:

2928 2014 MeMoRIA AnuAl28 2014 AnnuAl RepoRt

this was an important year for uNACeM. In addition to the good operating results of our Atocongo and Condorcocha plants, which recorded historical monthly production and dispatch records in the local cement market, we have taken huge steps in the consolidation and diversifi cation of our cement and precast products operations in the region. this has boosted our growth strategy which, through our subsidiaries, strengthens our commitment to our stakeholders.

oTAvALo PLAnT, ImBABurA, ECuADor.


InteRnAtIonAl ISSuAnCe of CoRpoRAte bondS

In order to materialize this important acquisition in ecuador we had to obtain the funds required to finance the operation. this was guaranteed since May, through a firm commitment of a group of banks that granted to uNACeM a bridge loan for a total amount of us$ 560.0 million: BBVA Banco Continental s.A. – BBVA securities Inc.; Deutsche Bank AG – london Branch; and the Bank of Nova scotia – scotiabank Perú s.A. this bridge loan did not have to be disbursed.

ACquISItIon of unACeM eCuAdoR S.A. (foRMeRly lAfARge CeMentoS S.A.)

undoubtedly, the most relevant milestone in 2014, the one that marked our consolidation as a company that starts to have a noticeable regional presence, was the acquisition of lafarge Cementos s.A., today uNACeM ecuador s.A.

After several months of evaluation and negotiation, on May 27 we announced the acquisition of this large ecuadorian company (subsidiary of the lafarge group). that same day we executed the sale and purchase agreement to acquire 98.57% shares of the company; however, being a company listed in the Quito stock exchange, a public offer was made for 100.0% of the shares.

the process lasted several months, as in order to complete the transaction we had to obtain the approval of the competent authorities of ecuador. thus, in October, we obtained the authorization for the direct acquisition from the superintendence of Market Power Control and in November, we received the approval from the superintendence of Companies and securities.

On November 25, 2014, through our subsidiary Inversiones Imbabura s.A., we acquired by public share offering in the Quito stock exchange, 98.57% of the shares of lafarge Cementos s.A. and as of February 20, 2015, we completed the acquisition of 98.9%, for a total value of us$ 517.1 million, thus consolidating our expansion in the region.

uNACeM ecuador has a plant in Otavalo, in the province of Imbabura. It has a production capacity of 1 million tons of clinker and almost 1.5 million tons of cement; an integrated operation with limestone reserves for more than 60 years; and a broad distribution network serving the ecuadorian market efficiently. It is an operation that has been working with financial and operating efficiency, but, most importantly, it is located in a market with great potential for growth.

With the addition of uNACeM ecuador, uNACeM and its subsidiaries have a consolidated cement production capacity of approximately 9.7 million tons, which strengthens our growth and commitment with the region.


After evaluating the different possibilities to finance the long-term operation, the Board of Directors, by delegation from the shareholders’ Meeting, approved the issuance of international bonds for an amount of up to us$ 700.0 million.

For the placement of these bonds, uNACeM obtained the rating from two international risk agencies: Moody’s, which assigned a Ba2 rating to uNACeM and its consolidated subsidiaries and standard and Poor’s, which awarded a BB+ rating.

On October 28, uNACeM successfully placed a private offer of senior Notes in the international market under Rule 144A of the securities and exchange Commission of the united states of America and Regulation s of the u.s. securities Act, in the amount of us$ 625.0 million, with 7 year maturity and 5.875% rate. the issuance funds were used to finalize the acquisition of lafarge Cementos s.A. and refinance short-term obligations.

the structuring and placement agents, joint bookrunners of the transaction, were BBVA securities Inc., Deutsche Bank securities Inc. and scotia Capital (usA) Inc.

It is worth highlighting that the placement of uNACeM represents the largest high yield corporate issuance of a Peruvian company in the international market. It was a multi-jurisdictional transaction that required, in addition, a close follow-up of the international capitals markets, which finally led to a successful placement operation, with a demand that exceeded four times the amount issued. this fact confirms the trust of the international market in the company and our long-term commitment with our shareholders and investors to continue creating shared value.

we ReASSeRt ouR long-teRM CoMMItMent wItH ouR SHAReHoldeRS to continue creating shared value.

oTAvALo PLAnT, ImBABurA, ECuADor.


ACquISItIon of pReAnSA CHIle

In January 2014, we fi nalized the acquisition of 51.0% of the shares of Prefabricados Andinos s.A. – PReANsA CHIle for a value of us$ 7.14 million.

It is a company that has been present in the Chilean market for more than 17 years, engaged in the development and manufacturing of industrialized concrete structures for industrial, commercial and infrastructure construction projects and whose plant in santiago has 24,000 m3 of installed capacity.

As in PReANsA PeRÚ, in this company we have partnered up with the spanish company PRAINsA. through PReANsA and its growth in the region, we are placing our bets on developing new markets that offer simple, effi cient and safe solutions, guaranteeing quality and low maintenance cost for our clients, enabling us to fi nd economic solutions in the shortest possible execution time and broadening the range of products and services as part of our vertical integration.

«the international expansion of uNACeM is the result of its accumulated experience, technological innovation and its fi rm commitment to continue creating value. As uNACeM ecuador, we feel proud of being a part of this expansion, aware of the challenges it entails».

JoSÉ AnTonIo CorrEA

GeNeRAl MANAGeR, uNACeM eCuADOR

wItH tHe gRowtH of pReAnSA In tHe RegIon, we place our bets on developing new marKets that oFFer simple, eFFicient and saFe solutions.


EXPAnSIon of ThE JorgE ChAvEZ AIrPorT, LImA. t H e C O M P A N Y A N D I t s s u B s I D I A R I e s

FOr MOre Than 60 yearS,

unACEm hAS BEEn SuPPLyIng quALITy ProDuCTS

ContRIbutIng to tHe developMent of tHe CountRy.



ThAnKS To ThE ConSTAnT oPErATIon of BoTh PLAnTS,We achieveD a prODucTiOn OF

our LEADIng BrAnD.

5.7 MilliOn TOnS OF ceMenT. The leaDinG neTWOrK OF harDWare STOreS

In ThE CounTry.

WiTh 288 pOinTS OF SaleS,

CEmEnTo AnDIno, PrEmIum BrAnD, WAS rECognIZED WITh ThE

IS ThE CurrEnT vALuE of CEmEnTo SoL,

TO The MOST eFFecTive mArKETIng IDEAS.

2014 eFFie GOlD aWarD

uS$ 137.0 MilliOn

ThE ProgrE-SoL nETWorK IS, for ThE SIXTh yEAr on A roW,


ConDorCoChA PLAnT, JunIn, PEru.


AToCongo PLAnT, LImA, PEru.


MACRoeConoMIC envIRonMent

During 2014, the world economy continued showing moderate signs of recovery. World growth is estimated in 3.3% for 2014, with respect to the previous year, explained by the still weak results of the leading economies and the slower performance of the emerging economies.

the growth shown by the leading economies was uneven. In the eurozone, the sequels of the crisis and the recession are still slowing down its recovery (0.8% in 2014). In turn, the united states of America counteracted this situation with a growth that exhibited expected variations: a 2.2% rate in line with the International Monetary Fund estimates, as a result of the improved employment situation (unemployment rate closed at 5.6% in December, the lowest since June 2008), added to the increased internal demand.

As for the emerging economies, they presented weak growth rates as a result of the slow economic evolution of the developed countries. China’s growth, according to estimates, was slower than in the previous years (7.4%) owing to a weak internal demand and lower export figures, which led the authorities to apply very specific stimulus measures to counteract the situation. latin America, meanwhile, would have grown only 1.3% mainly owing to the hard impact of the external demand resulting from the lower prices of relevant raw material such as copper, gold, silver, soybean and oil, which have fallen to their lowest level in the past years.

In Peru, the growth slowdown was notorious compared to the levels of the previous years, however, moderate with respect to the largest economies in the region (Brazil, Argentina and Chile). the Peruvian economy recorded a 2.4% growth. this low figure is mostly the result of the unfavorable performance of the global economy (raw material prices and more costly external financing) and of internal structural factors that caused delays in mining projects and the contraction of public investment by local governments, generating a downturn in private investment and lower consumption.


we acquired 51.0% of shares of pReAnSA CHIle.

the Shareholders’ Meeting designated the 2014-2016 board of directors.

we started the works at cement mill 8 and bagging unit 5 at the Condorcocha plant.

January 2014 March 2014

opeRAtIonSpRoduCtIon And dISpAtCH In tHe loCAl MARket

Our operations kept a steady performance throughout the year, yielding excellent operating results. the kilns in both plants worked efficiently at 89.0% of their installed capacity. Clinker production reached 5,951,216 tons, that is, 35.8% more than the production registered in 2013, owing basically to the operation of kiln 1 of the Atocongo plant, which was modernized at the end of 2013. this year, the production of clinker from both plants reached altogether a new historical monthly record, which in October totaled 578,861 tons.

With regard to cement, our production totaled 5,717,525 tons, a 1.5% increase with respect to the 5,631,076 tons of the previous year, enabling us to meet the local cement demand. From this total, 3,792,918 tons correspond to the production of the Atocongo plant (lima) and 1,924,607 tons to the Condorcocha plant (Junin).

Condorcocha Atocongo unACEm

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2010

4,77

4

2011

4,73

1

2012

5,35

5

2013

5,63

1

2014

5,71

8

2010-2014 CEmEnT ProDuCTIon PEr PLAnT(in thousands of metric tons)

to counteract these effects, the government has taken measures to boost growth aimed at, for example, increasing public expenditure and tax reductions.

Inflation, in turn, closed the year at 3.3%, exceeding the target range of the Central Reserve Bank of Peru (BCR, for its acronym in spanish) and the foreign exchange rate fluctuated significantly throughout the year: the currency lost value due to the deficit in the current account of the balance of payments and to an increasing perception of upcoming higher Federal Reserve (FeD) rates. the nuevo sol quotation as of the closing of the year was s/. 2.989 per us dollar (s/. 2.796 at the closing of 2013).

the construction sector grew 1.7% during 2014. this reduction in its annual growth is mainly explained by the suspension of public and private works, in particular during the first half of the year, added to a lower growth rate in formal employment and the costlier real estate loans.

Over the year and as part of the merger synergies, we have taken measures to streamline our operations and the associated costs:

We suspended the operation of kiln 1 at the Condorcocha plant temporarily. this kiln had been working since 1958, at a production rate of 300 tons/day, with high costs because of its manufacturing technology. to compensate the effect of the suspension of this kiln, the Atocongo plant provided the necessary clinker.

We started using a new raw material mixing system for the production of clinker, reducing the limestone stripping ratio of Atocongo. this results in a lower operating cost and improved raw material reserve. thus, we rationalized the use of equipment in the quarries and exercised better control to avoid distortions in the quality of our products.


In 2014, volume dispatched totaled 5,701,464 tons, 1.6% more than the volume reached in 2013, which totaled 5,610,572 tons. During the first half of the year, dispatch levels were similar to those in 2013; however, they were compensated with the growth registered in the second half, which continued increasing in the fourth quarter. Furthermore, our cement dispatches reached a new historical monthly record in November: 512,309 tons.

0

500

1,000

1,500

2,000

4,000

2,500

4,500

3,000

5,000

5,500

6,000

3,500

20142005

2,68

3

2006

3,05

6

2007

3,45

2

2008

4,12

6

2009

4,20

9

2010

4,70

9

2011

4,70

2

2012

5,31

1

2013

5,61

1

5,70

1

2005-2014 DomESTIC CEmEnT DISPATCh(in thousands of metric tons)


CoMMeRCIAlIZAtIon

We sell our products through two business units: bagged cement and bulk cement, which during 2014, represented 73.9% and 26.1% of the total product dispatched, respectively.

the products sold by the bagged cement business unit are: Portland cement type I, under the brands “Cemento Andino” and “Cemento sol”; Portland cement type IP, under the brands “Cemento Atlas” and “Cemento Andino”; and cement types IPM and V, under the brand “Cemento Andino”.

Our most recent introduction, “Cemento Apu,” blended cement for general use, had a great performance, evidencing a 1,028.5% growth with respect to 2013, when it was fi rst launched to the market. this contributed to a 2.8% growth of the bagged cement business unit in 2014.

Our bagged products portfolio is mainly sold through two distribution channels: the traditional hardware stores channel (consisting of the network of Progre-sol hardware stores and independent stores) and the modern hardware channel (consisting of the large self-service hardware warehouses, such as sODIMAC, Maestro and PROMARt).

Along this line, it is worth noting that the success of Apu was so impressive that it did not only replace the sales of other products, but the brand also grew even more at the expense of the main competitors. Despite the growth of Apu, the sales of bagged “Cemento sol” and “Cemento Andino” increased 1.1% and 2.6%, respectively, with respect to the previous year. As for return, the success of Apu was also quite signifi cant, besides contributing to reducing CO2 emissions due to its being blended cement.

During 2014, we continued focusing on our goal to optimize our bagged products portfolio in the central Coast of the country.

Meanwhile, the bulk cement business unit sells Portland cement type I, IP, IPM and V, mainly supplying the ready mix sellers, hydroelectric power plants, mining, oil and construction companies and companies that manufacture cement-based products. During 2014, dispatches from this unit dropped 1.6% with respect to 2013. Recovery in this line is expected with the incorporation of improvements in the bulk business unit of uNACeM, aimed at serving the specifi c needs of this type of client.

Our commercial strategy continues to be focused on innovating, strengthening the sustainable commercial relation along the entire value chain (from our plants to the hardware points of sale) and on investing in improving the services offered to our clients and to the fi nal users of our products. Accordingly, since 2008, we keep a close relationship with hardware sellers, entrepreneurs and independents, with outstanding performance in distribution and coverage, through the Progre-sol network of hardware stores. During 2014, the Progre-sol network reached 288 points of sale and was, for the sixth consecutive year, the leading network of hardware stores in the country.

In addition, outside the area of infl uence of Progre-sol, we keep more than 40 direct points of sale corresponding to distributors in cities of the central and northeastern Andes regions in the country, providing us with greater coverage.

Meanwhile, according to recent estimates, cement demand in the country was 11,423,524 tons, up 2.9% from 2013, estimated in 11,099,100 tons. this demand includes dispatches from national producers and an estimate of imported cement entering the country.

tHe bAgged CeMent business unit grew 2.8%.


expoRtS And poRt opeRAtIonS

In 2014, we resumed our exports of clinker through the Conchan pier, with a total volume of 423,835 tons, representing revenues in the amount of us$ 18.6 million for the company. Main export destinations included Venezuela, Chile and Brazil.

In turn, the tonnage of bulk solids operated through the Conchan pier dropped 31.0% with respect to 2013, as we do not import clinker anymore and, on the contrary, we have started exporting. Furthermore, there was a reduction in our coal imports due to the greater use of natural gas and the reduction of CO2 emissions from the kilns.

IntegRAted MAnAgeMent SySteM (IMS)

the integrated management system is one of the most important mainstays of our operation that supports each and every one of the company’s areas in streamlining their processes and, thus, our competitiveness in the sector. We currently hold IsO 9001, IsO 14001 and OsHAs 18001 certifications for the Atocongo and Condorcocha plants; and BAsC (Business Alliance for secure Commerce) certification and IsPs (International ship and Port Facility security) certification for the Conchan pier. Furthermore, the internal audits performed during 2014 have verified that the processes meet the goals set out and the standard requirements, and have enabled us to identify improvement opportunities in our performance.

In 2014, we conducted a customer satisfaction study in Atocongo, through an independent consultant, with respect to our domestic cement clients; we verified improvements in our indicators as compared with the survey made in 2013. Along the year, we also performed environmental impact and risk assessments of the relevant processes, to ensure that the proper operating controls are in place to keep environmental impacts and safety risks within the established limits.

At Condorcocha, we performed integrated audits with our contractors with regard to environmental and occupational safety and health management, to ensure that pertinent regulations are complied with. We have placed emphasis in achieving that our contractors are able to identify correctly the hazards in their work area, to evaluate the risks they represent and to implement the established controls to minimize the risk and protect workers’ integrity and health.

we ReSuMed expoRt of 423,835 tonS through the conchan pier.


SubSIdIARIeS And AffIlIAteS

uNICON is the country’s leading company in distribution and sales of ready mix and related services and products.

In addition to ready mix, the company produces and sells aggregates for construction, blocks and bricks and offers shotcrete application service for tunnel bracing.

During 2014, ready mix dispatches at national level reached 2,298,357 m3, that is, 2.0% less than in 2013, mostly explained by the slowdown in both the economy and in infrastructure projects. Meanwhile, in lima, dispatches totaled 1,752,595 m3, 4.0% less than in the previous year. Dispatches outside the capital increased 3.0%, reaching 545,762 m3. the commercial closing of cubic meters for new projects increased 33.0% with respect to the previous year.

Among the main milestones achieved by uNICON, we have the OHsAs 18001 certifi cation for the Occupational Health and safety Management covering the san Juan plant and the Jicamarca quarry.

Within the framework of the company’s commitment to sustainability, we invited sGs del Perú to perform a certifi cation process for measurement of the carbon footprint in the san Juan and Materiales plants. As a result, we were able to confi rm the adequate level of emissions from the production and distribution process in plant. this sound resource management generated a 50.0% reduction of costs in fuel consumption, mainly due to the greater use of natural gas for vehicles (NVG) instead of diesel.

the audited fi nancial statements of uNICON as of December 31, 2014, record the following results:

Net sales of s/. 826.5 million (s/. 779.9 million in 2013). Net income of s/. 83.0 million (s/. 39.2 million in 2013). Net stockholders’ equity of s/. 335.5 million (s/. 259.0 million in 2013).

InveCo S.A. / unICon S.A. (owneRSHIp: 93.4% of InveCo / 100.0% of unICon)

fIRtH ACHIeved 19.0% gRowtHas a result oF its greater coverage in lima with its puente piedra plant.

fIrTh InDuSTrIES PErú S.A.

Firth is a subsidiary of uNICON, a company that owns 100.0% of its shareholding. In 2014, ready mix dispatches at national level reached 652,980 m3, a volume 10.0% higher than the one recorded in 2013.

this was the result of the successful implementation of the strategy in lima that led to a 19.0% growth of the company. Firth continues strengthening its presence in lima, expanding its production capacity and coverage through a new ready mix plant in the district of Puente Piedra and the expansion of the production capacity of the plants in santa Anita and Villa.

Firth has three business units: distribution of ready mix, bagged dry mixes and prestressed roof beams. In addition, during 2014, it launched the new ready mix brand CONCReMAX, which will replace Firth as an umbrella for all its products.the audited fi nancial statements of Firth as of December 31, 2014, recorded the following results:



During 2014, CelePsA’s net income from power and energy totaled us$ 61.0 million. As a result of the good hydrological conditions, total power production at the plant reached 1,167,034 MW–h (1,167 GW–h), slightly higher than in the previous year, which reached 1,149,137 MW-h (1,149 GW-h).

energy sold by CelePsA during 2014 under contracts totaled 1,265 GW-h, of which 393 GW-h correspond to needs met within the regulated market and 872 GW-h to the needs of its free market clients.

In addition, monthly power turnover from free and regulated clients fluctuated from a maximum of 188 MW to a minimum of 85 MW.

CelePsA has a 2.8% share of the 2014 national production of the National Interconnected energy system (seIN, for its acronym in spanish) and 5.7% if we only consider the country’s hydroelectric power production. During 2014, the company generated 1,167 GW-h of the total of 41,796 GW-h of the seIN.

CoMpAÑÍA elÉCtRICA el plAtAnAl S.A. – CelepSA (owneRSHIp: 90.0%)

BASf ConSTruCTIon ChEmICALS PErú S.A.

uNICON participates with 30.0% of the capital of BAsF Construction Chemicals Perú s.A.

BAsF is a German multinational company with presence in more than 170 countries. It supplies additives for concrete, as well as masonry glues and grouts, grouts for assembly of industrial equipment and products for repair of concrete structures, among other related products.

the audited financial statements as of December 31, 2014, recorded the following results:

Net sales of s/. 67.3 million (s/. 64.0 million in 2013).Net income of s/. 9.1 million (s/. 11.1 million in 2013).Net stockholders’ equity of s/. 22.7 million (s/. 23.5 million in 2013).

EnTrEPISoS LImA S.A.C.

uNICON participates with 50.0% of the shares of entrepisos lima s.A.C.

this company offers prefabricated concrete products as a construction solution for different structural elements in building and infrastructure works. they are specialists in light prefabricated products weighing up to 10 tons per unit.

As of the closing of 2014, the company had the following results:



its purchase and construction, CelePsA will use own resources from its positive cash flow, as well as from a modification of the timelines in its financing contracts with Banco de Crédito del Perú and scotiabank.

the audited financial statements of CelePsA as of December 31, 2014, recorded the following results:


It is worth noting that net earnings during 2013 amounted to s/. 1.8 million due to a specific difference adjustment in the foreign exchange rate.

hIDro mArAñón S.r.L.

In November 2014, CelePsA acquired the company Hidro Marañón s.R.l. seeking to execute the future hydroelectric power plant project with water from the Marañón River, at 2,900 meters above sea level, close to the town of Nuevas Flores, province of Huamalíes, region of Huánuco.

the project, which has a final generation concession of 88 MW, has been restated to 20 MW, as a generation project with renewable energy resources (ReR) in order to increase its firm plant factor, while reducing constructive (geological), environmental and social risks. total investment estimated for the project, including acquisition costs, is us$ 60.0 million. Work has already started and it is estimated that the plant will be operating by December 2016.

we inaugurated the concrete blocks and bricks plant in Cajamarquilla, Chosica, lurigancho.

our subsidiary, unICon, initiated the casting of section 2 of the line 1 of the Metro of lima.

april 2014

CelePsA is recognized by its high operating, safety and environmental protection standards and its commitment to sustainable development. Presented during four consecutive years with the sustainability Award of the National society of Mining, Oil and energy Companies (2009–2012), it was the first mining-energy company to have been recognized with the National environmental Award, granted in 2014 by the Ministry of the environment. Furthermore, CelePsA is promoter of the first private patronage, recognized by the National service of Protected Natural Areas (seRNANP, for its acronym in spanish) for the preservation of a protected natural area.

this company is also recognized for its contribution to mitigating climate change within the Clean Development Mechanism of the united Nations Framework Convention on Climate Change, due to the largest assignment of carbon bonds achieved to date by a Peruvian company. the Certified emission Reductions (CeR) issued for the generation at the hydroelectric power plant from the startup of operations to May 2014, reached a total of 2,141,262. each additional year of production will generate around 660,000 tons of equivalent CO2.

During 2014, CelePsA has reached the return rates offered to its investors (despite a less favorable business situation) and has timely complied with its financial obligations.

the total debt of the company went from us$ 108.8 million as of the closing of 2013, to us$ 94.5 million as of the closing of 2014.

In 2014, CelePsA concentrated its efforts in the development of projects that will enable it to increase its generation capacity and eBItDA in the short term.

Along that line, the most relevant project is the construction of the Marañón Hydroelectric power plant, expected to start operating in December 2016. to fund


uNACeM has made contributions to the capital of skanon Investments, Inc., in the amount of us$ 23.5 million in 2014, which means it is the direct owner of 88.0% of the shares of this subsidiary. In addition, our related companies own 10.0% of the balance. skanon Investments, Inc., in turn, owns 94.0% of Drake Cement and 100.0% of Drake Materials.

According to the estimates of the Portland Cement Association (PCA) the Arizona cement market dropped 3.0% during 2014 with respect to the previous year. As a result of this market decrease, Drake Cement’s total sales were 314,941 short tons of cement and 140,000 tons of clinker. It should be noted that cement sales in the previous year were 329,800 short tons. Meanwhile, total sales recorded us$ 37.6 million, that is, 31.4% more than in the previous year (us$ 28.6 million). For 2015, it is expected that sales will reach 460,000 short tons of cement.

Meanwhile, Drake Materials recorded ready mix sales of 500,700 m3 during the year, similar to the previous year’s figures. For 2015, sales projections are 560,000 m3 (12.0% more than in the previous year), 72,000 m3 of which will correspond to special projects: 47,000 m3 in the Phoenix area (for the sky Harbor and Mesa Gateway airports) and 25,000 m3 in the state of texas (el Pueblo wind energy plant).

the favorable macro-economic conditions of the united states of America exhibited as of the end of 2014, allow the Portland Cement Association to forecast an average growth of more than 10.0% per year for the next 5 years in Arizona, with which we trust Drake Cement will increase its market share and revenues in the next years.

SkAnon InveStMentS, InC. / dRAke CeMent, llC (owneRSHIp: 88.0% of SkAnon InveStMentS / 93.9% of dRAke CeMent)

we signed the sale and purchase agreement for the shares of lafarge Cementos S.A. of ecuador, now unACeM ecuador.

Cemento Andino received the 2014 gold effIe award.

we started the works for Mercado unión, tarma (works for taxes).

we measured the water footprint at our Atocongo plant.

May 2014

CELEPSA rEnovABLES S.A.C.

CelePsA Renovables is currently evaluating other hydroelectric projects of up to 20 MW of power, one of which is in the permitting and land acquisition stage.

It is also conducting and supervising, with ARPl, the construction of the Carpapata III hydroelectric power plant of uNACeM.

AmBIEnTAL AnDInA S.A. – AmBIAnD

AMBIAND is a Peruvian company that provides meteorological and hydrological services and startup of hydroelectric projects, where CelePsA participates with 50.0%.

the meteorology area of AMBIAND has one of the most modern tools that generate accurate information in timely manner for climate monitoring and prediction. this enables clients from different sectors to minimize risks and reduce climate impacts on their operations. In 2014, AMBIAND developed the WRF – version 3.6, Peruvian High Resolution Model (MPAR, for its acronym in spanish), an operating model for the forecasting of more than 150 weather variables, including: rainfall, temperature, wind and humidity, with a 7-day horizon and with the highest horizontal resolution in Peru (10 km).

AMBIAND serves close to 40 clients, mainly in the energy, agricultural, consumption and services and infrastructure sectors. In 2014, it achieved net sales of s/. 2.1 million, representing 34.0% growth with respect to the previous year, mostly supported by the expansion of the hydrology area (50.0%).


In 2014, despite the macro economic situation of the country and the suspension of large projects, especially in the fi rst half of the year, PReANsA PeRÚ achieved adequate results.

Contracts in the prefabricated line reached s/. 23.2 million, down 12.0% from the previous year sales; the turnover for assemblies performed reached s/. 22.4 million and production surpassed 6,000 m3, providing an acceptable scale cost performance, considering the margin contribution provided by the plant.

In turn, in line with the rest of the activities, crane rental achieved a turnover similar to the previous year, reaching s/. 2.2 million.

During the year, PReANsA PeRÚ recorded an outstanding growth in the execution of infrastructure works, which accounted for approximately 30.0% of all contracts executed in 2014.

the most relevant contract in the period is the parking project of Av. Rivera Navarrete, in lima, which amounts to more than s/. 7.2 million. Mounting assembly is estimated to take place during the last quarter of 2015.

the audited fi nancial statements of PReANsA PeRÚ, as of December 31, 2014, recorded the following results:


pRefAbRICAdoS AndInoS peRÚ S.A.C. – pReAnSA peRÚ(owneRSHIp: 50.0%)

the consolidated fi nancial statements of skanon Investments, Inc., as of December 31, 2014, recorded the following results:

Net sales of us$ 82.5million (us$ 68.8 million in 2013). Net loss of us$ 21.4 million (us$ 19.5 million in 2013). Net stockholders’ equity of us$ 317.6 million (us$ 318.3 million in 2013).

pReAnSA peRÚ HAd An outStAndIng gRowtH in the eXecution oF inFrastructure worKs.


As of the closing of 2014, PReANsA PeRÚ had made capital contributions amounting to s/. 4.6 million to its subsidiary Prefabricados Andinos s.A.s. – PReANsA COlOMBIA, as this subsidiary will construct a large-scale industrialized concrete structures plant in the area of Cundinamarca, close to Bogota, which will have an annual capacity of 15,000 m3. to date, the municipal permitting process that had delayed the construction of the plant has been completed and the purchase orders for supplies and equipment from spain and Peru have been placed. Furthermore, the ground is being currently leveled for the civil works and mounting of equipment.

Commissioning of the plant is expected to start during the last quarter of 2015. the approximate investment will be us$ 10.0 million and the plant is expected to start operating during the first quarter of 2016.

On January 17, 2014, we started consolidating the activities of PReANsA CHIle as part of our subsidiaries. the performance of this company in this first year of integration has been fairly satisfactory.

In 2014, large industrial and bridge construction contracts were executed for road concessions. During the year, the performance of the construction unit slowed down while the bridges unit kept a steady pace, driven by the public works policies of the Chilean government.

turnover during this period totaled us$ 19.6 million, representing a 14.0% growth with respect to 2013. Contracts for new works during the year totaled us$ 12.0 million, 80.0% of which correspond to bridges and 20.0% to industrial construction. Production reached 16,494 m3, 19.0% increase over 2013.

It is worth underscoring that during the year PReANsA CHIle was involved in large-scale mining works; incorporated new large-size Bu type bridge beams; executed bridge projects in the North and south Panamericana Highway of Chile and participated as expositor in the First International Conference on Bridges, held in santiago.

the audited financial statements of PReANsA CHIle, as of December 31, 2014, recorded the following results:

Net sales of s/. 61.6 million.Net income of s/. 3.5 million.Net stockholders’ equity of s/. 33.9 million.

pRefAbRICAdoS AndInoS S.A.S. – pReAnSA ColoMbIA(owneRSHIp: 100.0% of pReAnSA peRÚ)

pRefAbRICAdoS AndInoS S.A. – pReAnSA CHIle(owneRSHIp: 51.0%)


InveRSIoneS IMbAbuRA S.A. – unACeM eCuAdoR S.A.(owneRSHIp: 100.0% of IMbAbuRA / 98.57% of unACeM eCuAdoR)

On November 25, 2014, when the public stock offer was made at the Quito stock exchange, we initiated the consolidation of uNACeM ecuador s.A. as part of our subsidiaries.

On November 28, 2014 the shareholders of lafarge Cementos s.A. held a special shareholders’ Meeting that decided to change the name to uNACeM ecuador s.A., a process that was completed on February 6, 2015.

uNACeM ecuador is engaged in the exploitation and production of cement and related products. the company has two subsidiaries, of which it holds 99.99% of the shares.

During 2014, production totaled 1,458,851 tons and sales reached 1,452,511 tons, 76.0% of which correspond to bagged product and 25.4% to bulk sales.

LAfArgE CEmEnToS SErvICES S.A.

Company organized in ecuador to engage, primarily, in activities related to specialized technical services for third parties and sales, import and storage of oil and gas and related products, among other activities.

CAnTErAS y voLADurAS S.A. – CAnTyvoL

this company, incorporated in ecuador, is engaged in mining activities in general, cement related in particular; that is, exploitation of limestone, clay and puzzolan quarries, which it sells to its main client, uNACeM ecuador.

the consolidated financial statements of uNACeM ecuador, audited as of December 31, 2014, recorded the following results, which have been consolidated by uNACeM from November 25 to December 31, 2014:

Net sales of us$ 17.4 million.Net income of us$ 5.0 million.Net stockholders’ equity of us$ 141.0 million.

«I feel very proud to be a part of the leading group in the market. the synergy between uNACeM and uNICON is given insofar as we are able to place high quality concrete in the construction activity, in the right amount and moment, at the lowest overall construction cost».

mIguEL vELASCo

GeNeRAl MANAGeR, uNICON

O N G O I N G P R O J e C t s


LugAr DE LA mEmorIA mEmorIAL, LImA.

eFFiciency OF Our OperaTiOnS

WE ConTInuE WITh ThE EXECuTIon of ProJECTS ThAT guArAnTEE ThE

AnD InITIATED our PArTICIPATIon In PuBLIC InfrASTruCTurE ProJECTS

wItHIn tHe fRAMewoRk of tHe woRkS foR tAxeS ACt.



WE InAugurATED ThE ConCrETE BLoCKS PLAnT In CAJAmArquILLA,WITh A mAXImum ProDuCTIon CAPACITy of

uniTS per year.

Which Will have a gEnErATIon CAPACITy of 12.8 mW.

60 MilliOn WILL InCrEASE CEmEnT mILLIng CAPACITy from

2.1 MilliOn TO 2.8 MilliOn TOnS.

WE STArTED ThE EXECuTIon of ThE nEW

carpapaTa iii hyDrOelecTric pOWer planT,

WE ArE PArTICIPATIng In

aMOnG TheM, The cOnSTrucTiOn OF MercaDO uniÓn, in TarMa, WhICh rEPrESEnTS An InvESTmEnT of S/. 5.3 mILLIon.

WOrKS FOr TaxeS prOJecTS,

ThE nEW CEmEnT mILL 8 AT ThE ConDorCoChA PLAnT


ConCRete bloCkS plAnt In CAJAMARquIllA

ModeRnIZAtIon And CApACIty expAnSIon of tHe AtoCongo plAnt

During the fi rst quarter of 2014, we completed the construction of a new concrete blocks plant in Cajamarquilla.

the main products manufactured in this plant are: fl oor bricks, bovedillas (roof bricks) and King Kong type bricks. Annual capacity of the plant ranges from 20 million to 60 million units approximately, depending on the product to be manufactured.

Following the commissioning and startup of the modernization of kiln 1 during 2013, in 2014 we continued working on the electro-mechanical assembly for the conversion of the four raw material storage silos to mix silos. We completed the works and started operation of the last one in October 2014. «Drake was the fi rst experience of uNACeM

outside Peru and its fi rst greenfi eld project after many years and it represented not only diversifying the risk, but especially, stepping into the international market».

mArCo gómEZ-BArrIoS

GeNeRAl MANAGeR, DRAKe CeMeNt

tHe ConCRete bloCkS plAnt In CAJAMARquIllA is eQuipped with cutting-edge technology machinery and an automated curing chamber.


CeMent MIll 8 And bAggIng unIt 5 At tHe CondoRCoCHA plAnt

In May 2014, we started the construction of the main civil works of the new cement mill 8 and bagging unit 5, which concluded in December. that same month we commenced the works corresponding to the electro-mechanic assembly of the project, to be completed in June. It will be operating regularly in August 2015.

Furthermore, we started working on the detail engineering of a puzzolan dryer to be installed in order to increase the milling capacity of the new mill for puzzolan cement.

With the installation of the puzzolan dryer, the system will have a capacity of 100 tons/hour, that is, 700,000 tons/year of puzzolan, through a combined roller press and balls milling system, increasing current milling capacity from 2.1 million tons/year to 2.8 million tons/year as of september 2015.

In turn, the new bagging unit will be able to fill 3,000 bags/hour and will have two cement storage silos with 7,500 tons capacity each, which have already been built.

wItH tHe CoMbIned RolleR pReSS MIllIng we will increase current milling capacity at the condorcocha plant to 2.8 million tons per year.


CARpApAtA III HydRoeleCtRIC poweR plAnt

new CeMent bAggIng unIt 6 At tHe AtoCongo plAnt

In May 2014, we started executing the new Carpapata III hydroelectric power plant project, which will have 12.8 MW generation capacity through a net water altitude of 125 m and two Francis-type turbines.

the project started with the construction of an access road to the future machine room, approximately 900 m long, from the tarma – san Ramon road. then, in October, we started the works corresponding to the water intake, to be located in Carpapata II.

the plant is estimated to start operating during the second half of 2016.

During 2014, we continued with the metal works for this new bagging unit, following which we mounted the electro-mechanic system and started operating it in November.

this new bagging unit is completely automatic and has a bagging capacity of 3,000 bags of cement per hour.

new pRoduCtIon lIne of kIln 5

Based on the expansion plans of our production plants for the medium and long term, we continued with the feasibility and detail engineering studies for the “New Production line of Kiln 5” project, which will have a production capacity of one million tons of clinker and milling capacity of 1.2 million tons of cement. this new line will be built at the Condorcocha plant starting in 2017 and is expected to start operating at the end of 2019.

With this project we will increase our production capacity of clinker from 1.8 million to 2.8 million tons per year as of 2019 and our cement milling capacity will increase to 4.0 million tons.

we commenced the works at the Carpapata III hydroelectric power plant in tarma, Junin.

Mounting assembly of the Mega plaza Shopping Mall in pisco was in charge of our subsidiary pReAnSA.

we updated the eIA for kiln 4 at the Condorcocha plant.

June 2014

8382

woRkS foR tAxeS

In 2014, we started participating in public infrastructure projects within the Works for taxes Act. We believe our active participation in this kind of government initiatives gives us a tool that will enable us to be more active in the execution of works around our areas of infl uence. In joint efforts with local and provincial governments, we found an effective way to continue creating value. Below we list the projects we have developed under this mechanism:

In May we commenced the construction of a new market in tarma through an agreement with the provincial government. this market, which represents an investment of s/. 5.3 million will have 240 sales stands and will help to partially solve the problems concerning street vending in the city of tarma. the market will be completed during the fi rst quarter of 2015.

In October 2014, we entered into an agreement with the District Government of Villa María del triunfo for the construction of a citizen security system using video cameras that will be monitored from a control room. this agreement includes the fi nancing of a four-year maintenance period.

the project will require an investment of s/. 3.4 million. the technical docket will be completed in March and the works will start in April, to be completed in October 2015.

CItIZen SeCuRIty In vIllA MARÍA del tRIunfo, lIMA

In september, we entered into an agreement with the Provincial Government of Oyon for the construction of 2.6 km of concrete pavement in various roads of the district of shanguachi. During the last months of the year, we prepared the technical docket of the project and estimate we will start the works in April 2015, once the rainy season is over. this project will require an investment of s/. 8.5 million and completion is estimated in October 2015.

pAvIng of AvenueS In tHe dIStRICt ofSHAnguACHI, oyon

new MARket In tARMA

2014 AnnuAl RepoRt

s t A K e H O l D e R s

2014 AnnuAl RepoRt 8584

mInISTry of EDuCATIon, LImA.

encOuraGe SOcial inveSTMenT iniTiaTiveS

Through ASoCIACIón unACEm,

In LInE WITh our BuSInESS oBJECTIvES.

we pRoMote And fACIlItAte tHe exeCutIon of ouR CoRpoRAte SuStAInAbIlIty StRAtegy And



our 664 EmPLoyEES rECEIvED

in SubJecTS Such aS leaDerShip anD inTeGraTeD SaFeTy ManaGeMenT SySTeM,AS WELL AS TEChnICAL TrAInIng CourSES.

Over The year,

21,153 TraininG hOurS

AS PArT of our ProJECT hEALThy CommunITIES (COMUNIDADES SALUDABLES),We have prOviDeD healTh-care ServiceS TO

11,933 peOple ThrOuGh Several

ThAnKS To ThE PromoTIng young SuCCESS (PROMOVIENDO EXITO JOVEN) ProgrAm,

WE hAvE rEDuCED AnnuAL grounD WATEr ConSumPTIon In morE ThAn

Were beneFiTeD WiTh A SChoLArShIP.

Free caMpaiGnS.

649 yOunG peOple 150,000 m3.


For more than 60 years we have been committed to the economic and social development in Peru. We deploy our business with great responsibility, managing the operations with high quality and safety standards, thus reducing our environmental impacts and promoting the development and growth of our stakeholders.

to strengthen our management, we have Asociación uNACeM that promotes and facilitates the execution of our corporate sustainability strategy and encourages the social investment initiatives in line with our business objectives.

In 2014, we undertook the challenge of identifying in uNACeM and its main subsidiaries in Peru (uNICON and CelePsA) the key subjects for sustainability management, aligned with the impacts and risks of our operations, and with our stakeholders’ expectations. We are currently working on these subjects that will be boosted to maximize the benefits they generate in each company and in their environment.

We interact with eight main stakeholders with whom we are seeking to create a close relationship, based on continuous, clear and transparent dialogue to allow the generation of trust. Along this line, we will implement spaces to learn about our stakeholders’ expectations, concerns and needs, in order to prioritize them and include them in our activities.

KEy SuSTAInABILITy ISSuES

mAIn STAKEhoLDErS

Energy and emissions Environmental impact mitigation

due to quarry Safety and health Community development Employee training formalization of the value chain Transfer of standards to suppliers

and contractors I+D

Safety and health Timely distribution Environmental friendly products

and processes Community development Training for employees and drivers Water management Transfer of standards to suppliers

Energy supply availability Community relations Water management Safety and health Biodiversity Transfer of standards to suppliers Expertise of employees

unACEm unICon CELEPSA

Empl

oyee

s

Community Shareholders Suppliers Government Clients Future

Env

ironm

ent

Generations


ouR eMployeeS

We have a highly qualified and motivated team thanks to whom we are able to undertake with success the new challenges of the industry. We have implemented a training strategy that offers them the possibility to develop individually and professionally within our organization, and we offer them a safe and healthy work environment in accordance with their needs.

We work with 664 employees as follows:

EmPLoyEE CLASSIfICATIon In ThE PAyroLL

claSSiFicaTiOn 2013 2014

Administrative staff 234 241White collar employees 137 145Blue collar workers 283 278Total 654 664

At uNACeM, we have a management model by competences that considers the analysis of profiles process according to job description, recruitment and screening, performance assessment, development and training of our staff.

It is worth mentioning that 2014 was a complicated year concerning our relationship with the company unions. Despite having been declared inadmissible and thereafter illegal by the Ministry of labor, we had four stoppages by the unions.

the sindicato Único de trabajadores de unión Andina de Cementos s.A.A. – Planta Condorcocha started two general strikes: one on February 13 and the other on March 3 (that lasted until March 8).

the sindicato de trabajadores de unión Andina de Cementos s.A.A. – Canteras Atocongo started a strike on september 25.

Both unions were on strike on December 29 and 30.

In all stoppages, the unions accused uNACeM of not complying with the working conditions, which was absolutely rejected by the company and subsequently verified by the competent authority.

Before, during and after the unions’ stoppages we made all efforts possible to dialogue and suggest solutions to the arguments raised. In uNACeM we are convinced that respectful and free dialogue is the only tool that will allow the company and all its employees to adapt to change and face new challenges. We must enrich the current model as a means to promote the competitiveness of our employees and of the company. At uNACeM we are most willing to dialogue in the forthcoming collective negotiations. Negotiations with the sindicato de trabajadores of unión Andina de Cementos s.A.A. – Canteras Atocongo will start in June 2015; and in the case of sindicato Único de trabajadores of unión Andina de Cementos s.A.A – Planta Condorcocha, they will start next January.

HouRS of tRAInIngin the company.

HouRS of tRAInIngin peru.

HouRS of tRAInIng abroad.

HouRS of tRAInIngin total.

14,163

6,368

622

21,153

As part of the training process, we implemented the Annual education and training Plan (PACe, for its acronym in spanish) aimed at improving our employees’ personal and professional competencies for their better performance and growth within the organization.

In 2014, our employees in the Atocongo and Condorcocha plants received 21,153 hours of training, corresponding to a total of 31.86 average man-hours. the main courses addressed subjects such as leadership and the integrated safety management system, in addition to technical training courses per work position.


oCCupAtIonAl SAfety And HeAltH

We have a safety and health management system in place that allows us to identify the main risks and incidents in each area, and act in a timely manner to prevent and reduce them. this system relies on the development of a risk prevention culture that seeks to encourage our employees and contractors to adopt a responsible attitude towards risk.

the chart above does not consider fatal accidents to show occupational safety and health management (sst, for its acronym in spanish) performance.

During 2014, we have been focused, even more, on implementing proactive health and integrity protection measures for all our employees and personnel working in our facilities. this year we worked on the following fields:

training courses at general level for all employees, and specific training courses according to degree of exposure at work of each of our employees, totaling 1,077 attendees.

supervision of our entire contractor companies regarding legal issues and scope of their safety protocols; this is additional to occupational monitoring evaluation of physical, ergonomic and psychosocial agents.

Compliance with the emergency brigade training program for employees and contractors.

unACEmAtocongoCondorcocha

0.02012

8.3 10.5

7.5

17.1 15.6

12.414.1

20.1

2013 2014

5.0

10.0

15.0

20.0

25.0

10.2

frEquEnCy rATE In unACEm oPErATIonS

our subsidiary unICon started casting of the new premises of banco de la nación in lima.

An agreement was executed to improve the road infrastructure in the district of Shanguachi in oyon, lima (works for taxes).

we presented to pRoduCe an update of the environmental Instruments of the Atocongo operation units.

our subsidiary unICon started casting in the north pier Containers terminal.

July 2014 SepTeMber 2014


envIRonMentAl MAnAgeMent

We have an environmental management system in place focused on the effi ciency and reduction of environmental impacts. We are concerned with minimizing greenhouse gas and dust emissions, as well as reducing energy and water consumption, among other aspects that improve environmental management. this is achieved thanks to the strengthening of human and institutional capacities that support the development programs that may be implemented.

manages impacts generated by unACEm in its environment.

Emissions and climate change, effi cient use of water, energy and solid waste.

Biodiversity and archaeological resources management.

Environmental awareness raising among employees and development of knowledge for sound management.

Compliance of environmental certifi cation requirements at the plants.

EnvIronmEnTAL quALITy

nATurAL AnD CuLTurAL rESourCES

STrEngThEnIng of CAPACITIES

EnvIronmEnTAL CErTIfICATIonS

eMISSIonS And ClIMAte CHAnge MAnAgeMent

At uNACeM we reduce the concentration levels of greenhouse gas emissions per each ton of cement produced.

In this regard, we have partially substituted coal for natural gas in kilns for the clinker process. Additionally, we have prepared blended cements that reduce clinker percentage in manufacturing and thus, energy consumption. this allows us to reduce 116,000 tons of equivalent CO2 per year.


ReSponSIble wAteR MAnAgeMent

the cement production process is dry therefore it does not require a great amount of water resources. However, we are aware that water is a scarce resource and a sensitive matter in our country; thus, we have developed an efficient management strategy for this resource.

We have reduced annual groundwater consumption by more than 150,000 m3. We have recovered approximately 100.0% of the waste effluents through

wastewater treatment plants. In Atocongo, we have continued watering green areas with treated wastewater,

reducing monthly groundwater consumption by more than 16,000 m3. At Condorcocha, water treated in the oxidation pond is 100.0% used for

reforestation of long-stem trees, such as pines, peppercorn trees (molles) and eucalyptus of the zone.

We continued watering dirt roads and trails located in the industrial plant and quarries of Atocongo with treated wastewaters, which avoided extraction of more than 15,000 m3 per year.

We completed the water footprint study in the Atocongo facilities and started the process in Condorcocha.

these initiatives have made it possible to reduce our emissions to the environment. the emissions of the Atocongo plant are 0.74 tons of CO2 per ton of clinker and 0.68 tons of CO2 per ton of cement, while the emissions of the Condorcocha plant are 0.79 tons of CO2 and 0.70 tons of CO2 per each ton of clinker and cement, respectively.

Cemento Sol was included in the ranking of the most valued brands in latin America, according to the Millward brown Consulting firm.

we placed uS$ 625.0 million corporate bonds in the international capitals market.

our subsidiary pReAnSA executed the los Alisos bridge, in the district of los olivos.

our subsidiary unICon started casting at the vías parque Rímac project.

OcTOber 2014


SolId wASte MAnAgeMent

We promote the reduction, reuse and recycling of solid waste. through the campaign “Your role does not end here… Recycle”, we encourage segregation and minimization of waste in our facilities. All solid waste are delivered to the recyclers association in our community. In 2014, we registered 190 tons of donated waste, which strengthens business capacity for waste sales. likewise, all our non-sellable waste is disposed of in a responsible manner through companies authorized by the Ministry of Health.

Our solid waste management focuses on the following three fields:

natural and cultural resources: extraction activities in the quarries generate impact over the land, flora and fauna. thus, we have species research and recovery projects to mitigate such impacts. likewise, all our quarries have a mine closure plan, where we commit to the recovery of affected areas.

Environmental certifications and commitments: all our activities and projects are provided with an approved environmental instrument, where we involve our different stakeholders. thus, we achieve their participation through the different communication means within the process of citizen participation, in order to obtain their feedback to prepare our environmental plans and programs. Our operations are also provided with the required permits, licenses and authorizations prior to starting activities.

Strengthening of capacities: we develop workshops and training courses together with our employees regarding environmental issues, to raise awareness and promote a culture of respect for the environment, in the company and outside.

effICIent eneRgy MAnAgeMent

the cement industry makes intensive use of energy and thus, we optimize our resources by implementing modern and efficient technology to allow for eco-efficient production, while improving our energy use and environmental performance.

the modernization of the Atocongo plant will generate a reduction of electric energy consumption (17.0%), thermal energy consumption (10.0%) and water consumption (30.0%) per each ton of cement produced, with environmental benefit in the reduction of emissions.

With the startup of line 4 in Condorcocha, the electric energy and thermal energy consumption has decreased 10.0% and 17.0%, respectively, per ton of cement produced. In addition, during 2014 we reduced the average consumption of this kiln, reaching 829 kcal/kg. We also managed to reduce the average consumption of cement mill 7 to 34 kW-h/t, and raw material mill 4 to 23 kW-h/t.

We own three operating hydroelectric power plants: el Platanal (the most modern plant in Peru), Carpapata I and Carpapata II. We are currently in the process of building Carpapata III. During 2014, our hydroelectric energy consumption was 2,372,519 GJ.

we own 3 HydRoeleCtRIC poweR plAntS In peRu and are currently building the carpapata iii hydroelectric power plant.

we started new line 6 packaging operations at our Atocongo plant.

we received the CeMefI award for “best practices in Corporate Social Responsibility.”

our subsidiary CelepSA purchased 100.0% shares of the Hidro Marañón hydroelectric power plant in Huanuco.

we purchased 98.57% shares of lafarge Cementos S.A., ecuador, now unACeM ecuador.

nOveMber 2014


developMent of ouR CoMMunItIeS

through Asociación uNACeM, we implement our communities’ strategy with three lines of action: social infrastructure, community relations, and human and social development. We made strategic transversal partnerships with different local actors to articulate implementation of collective initiatives for the development of our area of influence.

Our community relations are centered on the base development methodology which focuses on promoting a proactive attitude in the actors for their own development, through their good social performance.

With this strategy, we consolidated ourselves as a key player in the economic, social and environmental development of our surroundings.

Contribution of cement and other construction materials.

Technical advice.

Strengthening of the company-community relationship.

Promotion of dialogue spaces.

Environmental projects.

Productive, social and entrepreneurial development projects.

1 2 3

Social infrastructure Community relations human and social development

CommunITy STrATEgy

Atocongo plant Condorcocha plant Condorcocha Chancha huancoy Palca

AReAS of InfluenCe

MAIn pRoJeCtS wItH tHe CoMMunIty

As direct areas of influence we have five districts in lima and four districts in tarma where we carry out our main social development actions.

In 2014, we made an overall investment of s/. 14,728,196 in development programs. Below we describe some of the remarkable results obtained by the community work:

a) Social infrastructure: With the Techo Propio program we assisted families in 56 human settlements. We also assisted 91 families in building containment walls and 101 families in improving the interior of their home modules. the amount invested surpasses s/.300,000 and covers 1,465 beneficiaries.

b) Community relations: through our healthy communities project, we provided 50,133 health-care services, benefiting 11,933 people through 17 free health campaigns; 19 informative campaigns; 21 child, pregnant mother and elderly people health fairs; 6 educational activities; and 5 interventions for the prevention and recovery of anemia. likewise, we trained 237 community health agents. During 2014, we invested s/. 600,000 in this project and will continue doing it in 2015.

villa maria del Triunfo Pachacamac villa El Salvador San Juan de miraflores Lurin


We gave environmental management training in eight educational institutions in lima sur. 88.0% of the participating teachers obtained a certification from the Ministry of education in order to insert environmental education in the intervened institutions. this investment amounted to s/. 67,783 and will continue during 2015.

c) human and social development: We executed the promoting young success program in alliance with the World university service of Canada (WusC) and with the support of the Canadian technical Cooperation. thanks to this program, 649 young students were benefited with a scholarship. 97.0% out of 62 endeavors that received seed capital are still operating.

We developed 160 artistic and sports workshops in the districts of lima, benefiting 3,242 students. We are planning to strengthen these workshops with an education field for 2015.

We provided training to 369 vulnerable women, young and elderly people in professional strengthening in different specialties. the amount invested surpassed s/. 194,000 and we expect to benefit more students in 2015.

«the support that the uNACeM group gives its affiliates is essential. trust is a very important issue in our business, and being part of a solid group like uNACeM has allowed us a fast growth».

mIrKo DávoLI

GeNeRAl MANAGeR, PReANsA PeRÚ

we entered into an agreement for the installation of a video-surveillance system and security centers in villa Maria del triunfo (works for taxes).

DeceMber 2014

our subsidiary pReAnSA ColoMbIA purchased a lot for the construction of their plant in bogota, Colombia.

February 2015


e C O N O M I C -F I N A N C I A l R e s u l t s

nATIonAL STADIum, LImA.


Our neT SaleS increaSeD 6.1%

ThAnKS To our oPErATIonAL EffICIEnCy

AnD our EBITDA 14.3%.

And SyneRgIeS obtAIned fRoM tHe MeRgIng,


the uNACeM audited individual financial statements to December 31, 2014 show the following results:

Net sales of s/. 1,883.0 million (s/. 1,775.2 million in 2013). Net income of s/. 290.1 million (s/. 204.7 million in 2013). Net stockholders’ equity of s/. 3,624.1 million (s/. 3,418.1 million in 2013).

Net sales increased 6.1% as compared to 2013 sales. this obeyed mostly to:

Higher dispatch volume, amounting to 1.6%, increase that was affected by the slowdown in the construction sector during this year.

Higher average price of the product mix. Resumption of export operations.

In turn, selling costs increased 4.0% as a result of:

lower local cement cost by 0.5% for minimum consumption of imported clinker, counteracted by a greater depreciation in the period, resulting from the startup of operations of the expanded kilns in Atocongo and Condorcocha.

export costs.

As a result of a greater income and of costs and expenditure control, gross profits increased 8.8% as compared to the previous period, and operating profit totaled s/. 591.4 million, 13.0% higher than in 2013. eBItDA of 2014 was 14.3% higher than 2013, thanks to the operational efficiency and synergies obtained from the merger.


the financial costs were 68.5% higher than the previous period, due to commissions and financial costs incurred to obtain the required funding for the acquisition of lafarge Cementos s.A., ecuador, now uNACeM ecuador.

exchange losses amounting to s/. 122.4 million, 11.5% less than the previous year, as a result of a lower devaluation compared to the previous period and increased indebtedness in foreign currency.

In 2014, provisions for income tax show a substantial adjustment due to the reduction of the tax rate under law 30296, which was s/. 72.4 million during the period.

Net earnings for the period totaled s/. 290.1 million, 41.7% higher than in the previous period, mainly for the reasons explained in the foregoing paragraph.

the non-audited consolidated financial statements as of December 31, 2014 show the following results:

Net sales of s/. 3,107.8 million (s/. 2,894.7 million in 2013). Net income of s/. 303.7 million (s/. 193.3 million in 2013). Net stockholders’ equity of s/. 3,932.2 million (s/. 3,636.2 million in 2013).

the individual and consolidated financial statements corresponding to the 2014 period were prepared in accordance with the International Financial Reporting standards (IFRs).

By delegation of the shareholders’ Meeting, the Board of Directors adopted the decisions listed below throughout the 2014 period, with the respective effect over the company equity:

february 19: payment of dividends in the amount of s/. 0.013 per common share to the shareholders of uNACeM s.A.A., to be charged to retained earnings corresponding to the 2013 period.

may 29: payment of dividends in the amount of s/. 0.013 per common share to the shareholders of uNACeM s.A.A., to be charged to partial earnings corresponding to the 2014 period.

August 21: payment of dividends in the amount of s/. 0.013 per common share to the shareholders of uNACeM s.A.A., to be charged to partial earnings corresponding to the 2014 period.

December 3: payment of dividends in the amount of s/. 0.013 per common share to the shareholders of uNACeM s.A.A., to be charged to partial earnings corresponding to the 2014 period.


the capital stock fully subscribed and paid up is s/. 1,646,503,408 (One thousand six Hundred and Forty-six Million Five Hundred and three thousand Four Hundred and eight and 00/100 nuevos soles) represented by 1,646,503,408 (One thousand six Hundred and Forty-six Million Five Hundred and three thousand Four Hundred and eight) common shares with nominal value of s/. 1.0 per share.

Considering the above and in accordance with the International Financial Reporting standards (IFRs), the figures in nuevos soles as of December 31 2014 and 2013, respectively, are as follows:

Equity account As of 12.31.14 As of 12.31.13Capital Stock 1,646,503,408 1,646,503,408Legal reserve 299,214,052 270,202,711unrealized gains -164,180 -1,677,519retained earnings 1,678,579,095 1,503,095,246Total equity 3,624,132,375 3,418,123,851

Currently, there are several pending tax, legal and labor processes related to company operations. In opinion of the Management and of the legal advisors, the final result will not represent significant expenses thus, no fund provisions in this regard were registered to December 31, 2014. the external audit functions during the 2014 period were performed by Paredes, Zaldívar, Burga & Asociados (a member of ernst & Young). the reports on the statement of financial position, income statement, and comprehensive income statement, statement of changes in net stockholders’ equity and individual cash flows statement as of December 31, 2014 that form part of this Annual Report were issued without any remarks.

«the development of PReANsA in the Pacific Belt, together with uNACeM, provides us soundness and stability. uNACeM contributes a global vision of the market and PReANsA, the technology, inventiveness and speed in the executions of high added value to our main raw material: cement».

ErnESTo vILLALoBoS

GeNeRAl MANAGeR, PReANsA CHIle


60,951

268,994

602,529

8,053

940,527

196,750

234,857

497,835

11,204

940,646

Statement of financial positionfoR tHe yeARS ended deCeMbeR 31, 2014 And 2013

aSSeT note 2014s/. (000)

2014s/. (000)

2013s/. (000)

2013s/. (000)

currenT aSSeTS

Cash and cash equivalents trade and other receivables, net

Inventories

prepaid taxes and expenses

Total current assets

nOn-currenT aSSeTS

trade and other receivables, net

Investments in subsidiaries and other Mining concessions and property, plant and equipment, net deferred stripping cost

Intangible assets, net

Total non-current assets

TOTal aSSeTS

7

8

9

8

10

11

12

13

48,456

3,257,994

3,905,181

135,952

78,594

7,426,177

8,366,704

29,170

1,645,786

3,706,550

142,815

77,817

5,602,138

6,542,784

note

14

15

16

17

14

15

31.1(i)

18

17

19

233,828

573,293

98,725

20,671

926,517

9,714

3,313,373

6,940

472,536

13,492

3,816,055

4,742,572

1,646,503

299,214

(164)

1,678,579

3,624,132

1,646,503

270,203

(1,678)

1,503,096

3,418,124

209,148

693,406

9,932

15,814

928,300

11,883

1,627,954

5,557

537,303

13,663

2,196,360

3,124,660

liabiliTy anD equiTy

currenT liabiliTieS

trade and other payables

other financial liabilities

deferred income

provisions

Total current liabilities

nOn-currenT liabiliTieS

trade and other payables

other financial liabilities

derivative financial instruments

deferred income tax liability, net

provisions

Total non-current liabilities

TOTal liabiliTieS

equiTy

Capital stock

legal reserve

unrealized net loss on hedging financial derivative instruments

Retained earnings

Total equity

TOTal liabiliTieS anD equiTy 8,366,704 6,542,784


Statement of income Statement of comprehensive incomefoR tHe yeARS ended deCeMbeR 31, 2014 And 2013 foR tHe yeARS ended deCeMbeR 31, 2014 And 2013

note 2014s/. (000)

2013s/. (000)

net sales

Cost of sales

Gross profit

OperaTinG incOMe (expenSeS)

Administrative expenses

Selling expenses

other operating income (expenses), net

Total operating expenses, net

Operating profit

OTher incOMe (expenSeS)

financial income

financial costs

exchange difference, net

Total other income (expenses), net

income before tax

Income tax expense

neT incOMe

baSic anD DiluTeD earninGS per Share (stated in thousands of nuevos soles)

20

21

22

23

25

26

27

31.1(ii)

18(b)

29

1,882,982

(1,052,473)

830,509

(175,645)

(106,098)

42,623

(239,120)

591,389

3,610

(153,060)

(122,393)

(271,843)

319,546

(29,433)

290,113

0.176

1,775,193

(1,011,756)

763,437

(158,536)

(89,889)

7,884

(240,541)

522,896

7,638

(90,835)

(138,260)

(221,457)

301,439

(96,697)

204,742

0.124

2014s/. (000)

2013s/. (000)

neT incOMe

OTher cOMprehenSive incOMe

Changes in the fair value of hedging derivative financial instruments

Income tax effect, note 18

OTher cOMprehenSive incOMe, neT OF incOMe Tax

TOTal cOMprehenSive incOMe, neT OF incOMe Tax

290,113

2,163

,(649)

1,514

291,627

204,742

4,762

(1,429)

3,333

208,075


Statement of changes in equityfoR tHe yeARS ended deCeMbeR 31, 2014 And 2013

Legalreserve

s/. (000)

Capitalstock

s/. (000)

unrealized net loss onhedging financial derivative

instrumentss/. (000)

retainedearnings

s/. (000)

Total

s/. (000)

balance as of January 1, 2013

net income

Changes in the fair value of hedging derivative financial instruments, net

TOTal cOMprehenSive neT incOMe

transfer to legal reserve, note 19(b)

dividend distributions, note 19(d)

others balance as of December 31, 2013

net income

Changes in the fair value of hedging derivative financial instruments, net

TOTal cOMprehenSive neT incOMe

transfer to legal reserve, note 19(b)

dividend distributions, note 19(d) balance as of December 31, 2014

249,728

-

-

-

1,646,503

-

-

-

20,475

-

-

270,203

-

-

-

29,011

-

299,214

-

-

-

1,646,503

-

-

-

-

-

1,646,503

(5,011)

-

3,333

3,333

1,398,672

204,742

-

204,742

3,289,892

204,742

3,333

208,075

-

-

-

(1,678)

-

1,514

1,514

-

-

,(164)

(20,475)

(83,971)

4,128

1,503,096

290,113

-

290,113

(29,011)

(85,619)

1,678,579

-

(83,971)

4,128

3,418,124

290,113

1,514

291,627

-

(85,619)

3,624,132


Statement of cash flowsfoR tHe yeARS ended deCeMbeR 31, 2014 And 2013

OperaTinG acTiviTieS

Collections from customers

payments to suppliers

payments to employees

taxes paid

Interest paid

other payments (collections), net

net cash provided from operating activities

net (decrease) increment in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

cash and cash equivalents at the end of the year

inveSTinG acTiviTieS

purchase of shares in subsidiaries

Contributions to subsidiaries

disbursements for works in progress

purchase of property, plant and equipment

purchase of intangible assets

net cash used in investing activities

FinancinG acTiviTieS

obtaining short-term bank loans

obtaining bonds and debt to banks long-term

payment of short-term bank loans

payment of bonds and debt to banks long-term

dividends paid

net cash provided from financing activities

2014s/. (000)

2014s/. (000)

2013s/. (000)

2013s/. (000)

2,234,005

(1,306,625)

(156,286)

(114,452)

(151,360)

(30,501)

474,781

(135,799)

196,750

60,951

14,109

-

(2,415)

(1,541,004)

(68,789)

(329,422)

(34,021)

(4,539)

(1,977,775)

286,642

2,098,662

(422,692)

(509,905)

(85,512)

1,367,195

2,114,729

(1,468,809)

(141,329)

(92,401)

(85,047)

(19,094)

308,049

122,561

74,189

196,750

7,171

25,381

2,415

-

(89,527)

(227,641)

(32,158)

(6,817)

(356,143)

771,651

626,308

(753,457)

(389,876)

(83,971)

170,655

SiGniFicanT nOn-caSh acTiviTieS

Acquisition of property, plant and equipment under financial leases

Capitalized interest

provision for impairment of investments

A D M I N I s t R A t I O N


nATIonAL grAnD ThEATEr, LImA.

GOOD cOrpOraTe pracTiceS,

Through our

WE guArAnTEE ThE gooD PErformAnCE of unACEm to tHe benefIt of All ouR StAkeHoldeRS.



boARd of dIReCtoRS MAnAgeMentChAIrmAnRicardo Rizo Patrón de la Piedra

vICE-ChAIrmAnAlfredo Gastañeta Alayza

mEmBErSMarcelo Rizo Patrón de la PiedraJaime sotomayor BernósCarlos ugás DelgadoRoque Benavides Ganoza Diego de la Piedra Minetti Oswaldo Avilez D’AcunhaHernán torres Marchal Martín Naranjo landerer Drago Kisic Wagner (until March 2014)leslie Pierce Diez Canseco (until February 2014)Roberto Abusada salah (since March 2014)Jaime Raygada sommerkamp (since March 2014)

gEnErAL mAnAgEr Carlos ugás DelgadoRepresentative of sIA in the General Management

LEgAL mAnAgErJulio Ramírez Bardález

fInAnCE AnD CorPorATE DEvELoPmEnT mAnAgErÁlvaro Morales Puppo

CEnTrAL mAnAgErVíctor Cisneros Mori

ADmInISTrATIvE mAnAgErJorge trelles sánchez

CommErCIAL mAnAgEr Kurt uzátegui Dellepiane

ProJECT EXECuTIon mAnAgErJeffery lewis Arriarán

oPErATIonS mAnAgEr – AToCongo Juan Asmat siquero

oPErATIonS mAnAgEr – ConDorCoChARicardo Ramírez Zurita

humAn rESourCES mAnAgErPablo Castro Horna

InvESTmEnT mAnAgErFrancisco Barúa Costa (since April 2014)

gEnErAL mAnAgEr Armando Casis Zarzar

ARPl tecnología Industrial s.A.

Inversiones Andino s.A.

SIndICAto de InveRSIoneS y AdMInIStRACIÓn S.A. (SIA) ASoCIACIÓn unACeM

teCHnICAl AdvISoRS

AdMInIStRAtIon And fInAnCe AdvISoRS


hernán Torres marchal mEmBEr

roberto Abusada SalahmEmBEr

ricardo rizo Patrón de la PiedraChAIrmAn

Carlos ugás DelgadomEmBEr

Alfredo gastañeta Alayza vICE-ChAIrmAn

roque Benavides ganoza mEmBEr

martín naranjo Landerer mEmBEr

marcelo rizo Patrón de la PiedramEmBEr

Jaime raygada Sommerkamp mEmBEr

Jaime Sotomayor BernósmEmBEr

oswaldo Avilez D’AcunhamEmBEr

Diego de la Piedra minetti mEmBEr

boARd of dIReCtoRS


Juan Asmat SiquerooPErATIonS mAnAgEr – AToCongo

Carlos ugás DelgadogEnErAL mAnAgEr

ricardo ramírez ZuritaoPErATIonS mAnAgEr – ConDorCoChA

álvaro morales PuppofInAnCE AnD CorPorATE DEvELoPmEnT mAnAgEr

Julio ramírez BardálezLEgAL mAnAgEr

Jorge Trelles SánchezADmInISTrATIvE mAnAgEr

MAnAgeMent

víctor Cisneros moriCEnTrAL mAnAgEr

Kurt uzátegui DellepianeCommErCIAL mAnAgEr

Pablo Castro hornahumAn rESourCES mAnAgEr

francisco Barúa CostaInvESTmEnT mAnAgEr

Jeffery Lewis ArriaránProJECT EXECuTIon mAnAgEr

Armando Casis ZarzargEnErAL mAnAgEr - ASoCIACIón unACEm


good CoRpoRAte goveRnAnCe

We conduct our management within the framework of Good Corporate Governance Principles, through the best corporate practices that allow us to ensure the good performance of uNACeM, aiming at achieving benefi ts for all our stakeholders.

the shareholders’ Meeting held on March 27 approved the individual and consolidated fi nancial statements for the 2013 period, as well as the independent auditors’ report, without remarks. Furthermore, it appointed 12 members of the Board for the 2014-2016 period, 3 of whom are independent members, and delegated to the Board of Directors the appointment of the independent auditors.

likewise, the shareholders’ Meeting held on August 15, 2014 approved the taking up of loans by uNACeM to fund the acquisition of lafarge Cementos s.A. and delegated powers to the Board to determine the best fi nancing channels.

In accordance to the established schedule, the Board held monthly sessions, seeking to safeguard the interests of all shareholders equally, and ensuring that the interest of uNACeM prevails at all times.

the Auditing Committee, constituted by three directors, two of whom are independent from the controlling shareholder, continued holding periodical sessions throughout the year, in order to review the information provided by the company and revised by the independent auditors.

During 2014, we continued with the dividend distribution policy on a quarterly basis in the months of February, May, August and November. As every year, we delivered the Annual Report to our shareholders, as well as the quarterly reports including the partial fi nancial statements and a summary of the most relevant activities performed during each quarter, also available in our website.

«I have been trained and grown hand-in-hand with uNACeM. today, from CelePsA, we work to contribute to generate value and to meet the strategic needs of the group related to electric power».

PEDro LErnEr

GeNeRAl MANAGeR, CelePsA


Pursuant to the provisions set forth in the articles of incorporation of our company on December 28, 1967, and to the shareholders’ Meeting dated December 28, 1981, the General Management of unión Andina de Cementos s.A.A. continues under sindicato de Inversiones y Administración s.A., as per agreement in force to this date.

Inversiones Andino s.A. provided the administrative and financial consultancy.

ARPl tecnología Industrial s.A. was in charge of the technical consultancy service, as per agreement in force to this date.

the Board recognizes and appreciates the important contribution made by these three companies throughout 2014.

the Board hereby expresses its respect and deep gratitude to each and every employee of uNACeM for the effort and loyalty shown during this year, thanks to which we obtained satisfactory results in a context of international volatility and notable slowdown of the country’s growth rate.

It is their permanent commitment that has enabled us to take the great step towards expansion and consolidation in the region.

AdMInIStRAtIon, dIReCtIon And teCHnICAl ASSIStAnCe

ACknowledgeMent


2014 ANNuAl RePORt

unión Andina de Cementos s.A.A.Avenida Atocongo 2440. lima 35, Perú

© editorial Rayo Verde s.A.C.Av. Casimiro ulloa N.˚ 125, dpto. 401. lima 18, Perú

Editors in Chief · Marcela Delgado and Cecilia DurandText Editor · Marjorie effioProofreader · Jorge CornejoEnglish Translation · servidiomagraphic Design · Maye león Packaging Design · Maye león Layout · Maye león, Élida FloresPhotography and Photography Editing · Marcela Delgado and Cecilia DurandPhotography Touchups · Julio BasilioDevelopment and Programming of Web Software · Inline - APOYO Comunicación

All rights reservedthis book is published exclusively for unión Andina de Cementos s.A.A. It may not be reproduced, recorded, or transmitted by any type of data recovery system via any means, whether mechanical, photochemical, electronic, magnetic, electro-optical, photocopies, or others, without the prior written permission of unión Andina de Cementos s.A.A.

Date post:	24-Feb-2021
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

EXPAnSIon WItHOut BORDeRs · 6 2014 AnnuAl RepoRt 7 mETroPoLITAno CEnTrAL STATIon, LImA. of ThE...

Documents