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SP | EN

2018

ANNUAL REPORT | SUSTAINABILITY REPORT

ABOUT US


WE ARE UNIÓN ANDINA DE CEMENTOS. FOR OVER 100 YEARS, WE HAVE CONTRIBUTED TO THE COUNTRY´S DEVELOPMENT AS A SUSTAINABLE, INNOVATIVE, AND SOCIALLY RESPONSIBLE BUSINESS, COMMITTED TO SAFETY AND ENVIRONMENTAL MANAGEMENT, WE ARE UNACEM.

OVER 100 YEARS MAKING HISTORY

2018, IMPORTANT EVENTS

  • We merged with SIA, IASA and Pronto, an operation that came into effect on January 1st, 2019, which consolidate the knowledge, strategy and experience of these three companies’.
  • In July, our subsidiary UNICON acquired Hormigones Independencia S.A., now known as UNICON Chile.
  • In October, we acquired Cementos Portland S.A. (CEMPOR), who holds the Silencio 8 mining concession, located just 8 km from the Atocongo plant.
  • The Asociación UNACEM celebrated 15 years of working together with our stakeholders and allies, helping us to consolidate our important role in the development of our areas of influence, aligned with the Sustainable Development Goals, the Global Compact, ISO 26000, and the standards of the Global Reporting Initiative.
  • At the Condorcocha plant, we obtained the Certificado Azul given out by the National Water Authority (ANA), which recognizes the proper management and efficient use of water resources, making us the first cement manufacturer, and the third company in Peru overall, to receive this certification.
  • We created the Industrial Development Center and the Instituto UNACEM, with the goal of managing knowhow and creating learning programs to standard best practices in processes.
  • The Progresol Home Improvement Store Network turned 10 years old this year, and now included 853 points of sale.
  • We helped 17 partners in our value chain to prepare their own sustainability reports according to Global Reporting Initiative (GRI) standards through the “Promoting Transparency in UNACEM’s Value Chain” project and the Competitive Business Program.
  • We have commenced the restoration plan for Landfill 500 and we are increasing our joint work with community organizations for the protection of hill ecosystems in southern Lima.

LETTER FROM
THE CHAIRMAN
OF THE BOARD

"With the merger’s entry into force, UNACEM’s shareholding structure will be more straightforward, we will have a new group of shareholders, and we will also add new assets. Above all, however, we will consolidate the knowhow, strategies, and experience of these three companies, a fact that reaffirms our commitment to all of UNACEM’s shareholders as we take this big step into the future."

RICARDO RIZO PATRÓN DE LA PIEDRA
Chairman of the Board

OUR STRATEGY TOWARDS 2021

RESULTS


ECONOMIC AND FINANCIAL RESULTS

The audited separate financial statements of UNACEM, as of December 31, 2018, show the following results:

  • Net sales of
    S/ 1.969 billion
    (S/ 1.863 billion in 2017).
  • Net profit of
    S/ 242.2 million
    (S/ 466.2 million in 2017).
  • Net shareholders´equity of
    S/ 4.416 billion
    (S/ 4.277 billion in 2017).

OPERATIONS


ATOCONGO PLANT

The Atocongo plant is located in the district of Villa María del Triunfo, in Lima. It is the largest plant in Peru, with a production capacity of 5.5 million tons of cement milling and 4.8 tons of clinker.


5.5 MILLION

TONS OF GROUND CEMENT

4.8 MILLION

TONS OF CLINKER

CONDORCOCHA PLANT

The Condorcocha plant is located in La Unión Leticia, in Tarma, Junín. It is the highest-elevation plant in the world, with a production capacity of 2.8 million tons of cement milling and 1.9 tons of clinker.


2.8 MILLION

TONS OF GROUND CEMENT

1.9 MILLION

TONS OF CLINKER

  • Clinker production
    5,289,168 t
    This was 14.7% higher than in 2017 (4,609,852 t)
  • Cement production
    5,072,982 t
    This was 1.3% higher than in 2017 (5,009,610 t)
  • Cement dispatches
    5,058,142 t
    This was 1.3% higher than in 2017 (4,993,346 t)

SALES


  • Cemento Andino Ultra HS maintained its position as the leader in the anti-saltpeter cements category, with a market share of over 73%.
  • Cemento Apu reported an 18% market share in the central highlands less than one year after its launch in that region.
  • Cemento Apu The bulk cement business unit had a good year, growing by 10.5% compared to 2017.
  • The Progresol Home Improvement Store Network celebrated 10 years strengthening bonds with store owners through excellent business management. It now includes 853 points of sale, including both retail and wholesale clients.

SUBSIDIARIES AND AFFILIATES


CORPORATE GOVERNANCE


In 2018, we continued to conduct our management within the framework of the Principles of Good Corporate Governance, as regulated by our bylaws and normative documents, implementing a series of measures aimed at improving our practices and transparency and inspiring trust.

On March 23, 2018, the Mandatory Annual Shareholders’ Meeting elected the Board of Directors for the 2018-2020 period, consisting of thirteen members, four of whom are independent directors. During 2018, the Board of Directors conducted a self-evaluation process to identify those practices that require improvement.

The Board of Directors approved the creation of two new committees:

  • The Ethics and Conduct Committee, which ensures compliance with the guidelines of the Code of Ethics and Conduct; and implements and supervises the crime prevention model (bribery, money laundering, and terrorist financing).
  • The Commercial Committee, which ensures compliance with commercial guidelines and discusses topics tied to management duties.

MERGER OF UNACEM, SIA, IASA, AND PRONTO

  • The merger with SIA, IASA, and Pronto represents a historic milestone for UNACEM. It demonstrates the commitment of all the Company’s shareholders, both majority and minority, to the creation of value for the Company and the benefit of all stakeholders.
  • As a result of the merger, UNACEM will have a simplified shareholding structure and will incorporate a new group of minority shareholders in the Company’s ownership structure, as well as consolidating the knowhow, strategies, and experience of SIA, IASA, and Pronto, which clearly represents a big step forward for UNACEM and its future success.

NEW SHAREHOLDING STRUCTURE

SUSTAINABILITY


At UNACEM, we manage our business with a focus on sustainability, making a constant effort to strike a balance among economic, social, and environmental aspects.

For fifteen years, the Asociación UNACEM has worked to achieve sustainable development in our areas of influence, in close collaboration and constant communication with our stakeholders. This organization has also established multisector alliances with national and international bodies to optimize the socioenvironmental impact of our social investment and social responsibility programs.

RECOGNITIONS


  • NATIONAL WATER AUTHORITY (ANA)
    Second place in the Water Culture Awards – “Certificado Azul” category.
  • MEXICAN CENTER FOR PHILANTHROPY (CEMEFI)
    Recognition as a company committed to social responsibility.
  • PERÚ 21
    Recognition of corporate social responsibility (CSR).
  • EFFIE AWARDS PERÚ
    Golden Effie in the “Products” category and Silver Effie in the “Product Line Extensions” category, for the success of the Cemento Andino “La Costa” campaign.
  • ANDA AWARDS 2018
    ANDA 2018 award in the category of “Integrated Communication – Other Products”, with our Premium Cemento Andino product.
  • MEXICAN CENTER FOR PHILANTHROPY (CEMEFI)
    Recognition as a company that contributes 1% of its profit before tax to social investments.

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Unión Andina de Cementos S.A.A.


Email: contacto@unacem.com.pe | Telephone: (511) 217 0200 | Address:: Av. Atocongo 2440, Villa María del Triunfo. | Securities Department: Av. Carlos Villarán 508, oficina 301, Santa Catalina.


© 2019 UNACEM

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Unión Andina de Cementos S.A.A.


Email: contacto@unacem.com.pe |
Telephone: (511) 217 0200 |
Address: Av. Atocongo 2440, Villa María del Triunfo. | Securities Department: Av. Carlos Villarán 508, oficina 301, Santa Catalina.


© 2019 UNACEM