Net revenues: R$ 16.7 bn
Adjusted EBITDA: R$ 3.8 bn
Social investment¹: R$ 11.7 mm
___Company resources: R$ 8.7 mm
___Votorantim Institute: R$ 3 mm
1 Amount managed by the Votorantim Institute. It does not include additional resources for initiatives to combat COVID-19.
In 2020, Votorantim Cimentos once again proved its management capacity and operational leverage while facing the challenges of the COVID-19 pandemic in all 11 countries where it operates, demonstrating the resilience of a regionally diversified portfolio. During the year, it also advanced its decarbonization and positioning strategies in North America.
From the business standpoint, contingency activities to mitigate the impact of the pandemic focused on people’s health, well-being and safety, in addition to preserving the company’s cash position and financial health, which resulted in circumstantial postponement of a few modernization projects. Others, already underway, were forced to pause temporarily, because of external factors. These postponed initiatives returned to the company’s active investment pipeline in 2021, as is the case with the project to expand the Pecém unit, in the state of Ceará, where construction has already been resumed.
Votorantim Cimentos’ consolidated net revenues was R$ 16.7 billion and the consolidated adjusted EBITDA was R$ 3.8 billion, an increase of 29% and 43%, respectively, compared to 2019. Brazil contributed positively to the results, thanks to reduced interest rates, the emergency aid granted by the Federal Government and its use in the purchase of building materials, including cement, the upturn in the real estate sector and higher market demand in the self-construction segment. The company also maintained the strategy of expanding its adjacent businesses, which included Viter (an aglime unit), Verdera (a waste management and co-processing provider) and the digital platform Juntos Somos+. In the United States and Canada, the cement sector maintained a stable dynamic, with a slight recovery at the end of the year thanks to the reopening of businesses after the initial restrictions imposed by the pandemic. The same occurred in the Europe, Asia and Africa region, where operations were the most affected by social distancing measures adopted by local governments.
In 2020, Votorantim Cimentos advanced its strategic agenda. One of the main initiatives was the publication of its 2030 Global Sustainability Commitments, which seek to align the operations with the demands from society and the market. The document establishes specific targets and directs the efforts over the next ten years in seven areas: Health, Safety and Well-Being; Ethics and Integrity; Diversity and Inclusion; Innovation; Environmental impact; Circular Economy; and Communities and Shared Value. Examples that stand out include the goal of reducing CO2 emissions per ton of cement to 520 kg by 2030, representing a 12% decrease in relation to 2019, and the commitment to implement technologies that would enable the production of carbon-neutral concrete by 2050. These issues have always been treated as a priority by the company, which has been working throughout its value chain and engaging other stakeholders to ensure that the industry can reduce its carbon emissions to meet the objectives set by the global climate agenda.
In November, Votorantim Cimentos announced the expansion of Cementos Artigas, in Uruguay, a company it operates in partnership with Cementos Molins. This will result in gains in industrial efficiency, cost competitiveness and sustainability, in addition to reducing electricity consumption.
In December, a joint project with Votorantim Energia was approved, which includes the construction of 220 MW-capacity wind farms that will start operating in 2023. The agreement will allow Votorantim Cimentos to purchase 25% of the energy generated, increasing the company’s share of electricity from renewable sources in Brazilian operations from 35% to 56%.
Also in December, the company announced the combination of its North American operations with McInnis Cement, resulting in a partnership between Votorantim Cimentos and Caisse de dépôt et placement du Québec (CDPQ), based in Canada. Once customary closing conditions are met, including approval by regulatory authorities in Brazil, the United States and Canada, Votorantim Cimentos will hold an 83% interest in the company. This transaction will result in increased agility and efficiency in cement supply, through an increase in production of 2.2 million tons per year and the combination of the distribution networks of the two companies, mainly in eastern Canada, the Great Lakes region and the northeast coast of the United States. The agreement is in line with Votorantim Cimentos’ portfolio management strategy to prioritize investments in markets with strong currency and growth potential where the company already operates, and optimize its exposure to mature and emerging markets, while maintaining an appropriate capital structure.
