Votorantim Cimentos

A commitment to overcome.

In 2021, Votorantim Cimentos reaffirmed its financial discipline, took important steps with regard to its ESG agenda, demonstrated the power of its operating leverage, executed important strategic moves, and confirmed the resilience of its geographically diversified portfolio. In addition, it conducted initiatives that increased its financial strength by reducing its leverage and lengthening its debt.

Net Revenue
R$ 22.3 bi

Adjusted EBITDA
R$ 5.2 bi

Leadership in the transition to a low carbon economy in the Brazilian civil construction sector.

As a result of the company’s good financial health, Moody’s raised its rating from Ba1 to Baa3, placing Votorantim Cimentos in a select group of Brazilian companies with an investment grade rating by the three main credit rating agencies. The company ended the year with net revenue of R$22.3 billion and adjusted EBITDA of R$5.2 billion, a 33% and 37% increase increase, respectively, compared with 2020.

The Brazilian cement market had a positive year that yielded good results, with an increase in sales volumes and prices that partially mitigated the impact of the increase in energy and raw material costs. In North America, the market remained strong, with growth similar to 2020. The approval of the infrastructure incentive package by the US government will create a positive outlook for the cement market in the coming years. In Europe, Asia, and Africa, the construction market also grew. However, like in Brazil, the results were impacted by an increase in energy and raw material costs. Despite that, the company had positive results when compared with 2020. In South America, market dynamics were positive in Uruguay, where Votorantim Cimentos continues to have good results, and showed signs of recovery in Argentina and Bolivia.

The company made strategic moves through acquisitions and investments, primarily in markets with strong currencies and good perspectives for growth and value creation. Votorantim Cimentos concluded the business combination with Caisse de dépôt et placement du Québec (CDPQ) in Canada, involving McInnis Cement. The new combined entity now has an installed cement production capacity of 7.8 million tonnes. In addition, the company carried out two other transactions that reinforced its position in North America: it increased its stake in the concrete company Superior Materials, taking control of the operation, which allowed it to expand its concrete business and its presence in the Great Lakes region; and it acquired an aggregates company, Valley View, in the United States.

In Spain, Votorantim Cimentos acquired Cementos Balboa, with an installed production capacity of 1.6 million tonnes of cement per year. This transaction strengthened the company’s position in the Iberian region by increasing its total capacity to 4.6 million tonnes. In addition, Votorantim Cimentos announced the acquisition of HeidelbergCement in southern Spain, with an installed production capacity of 1.4 million tonnes of cement per year. The transaction is subject to customary closing conditions, including approval by Spanish regulatory authorities.

In Brazil, Votorantim Cimentos completed the expansion of the Pecém plant in the state of Ceará. The new unit uses state-of-the-art technologies to ensure more sustainable production with less consumption of natural resources and a reduction in CO2 emissions.

In 2021, Juntos Somos Mais, one of the portfolio companies of Votorantim Cimentos, received a R$100 million contribution from the shareholders to further explore the vast potential of digital solutions for the building materials sector. Juntos Somos Mais is a relationship company in the civil construction market that has more than 90,000 registered users, including retailers, construction workers, and companies.

As part of its ESG agenda, Votorantim Cimentos is leading the transition to a low-carbon economy in the civil construction industry—it is the only national company to participate in the Global Cement and Concrete Association (GCCA) 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete. It joined the United Nations (UN) Business Ambition for 1.5oC and the Race to Zero campaigns, committing to align its CO2 emission reduction targets with the Science Based Targets initiative (SBTi). This decarbonization agenda is reflected in the company’s governance, which includes working groups on decarbonization and ESG, made up of members of the Board of Directors.

In 2021, in line with the company’s diversity and inclusion strategy, three women became part of its governance bodies: Clarissa Lins was appointed to the Board of Directors as an independent member, Luciana Domagala joined the Compensation Committee, and Cristina Betts became part of the Finance Committee.

In the social sphere, Votorantim Cimentos made investments to fight the pandemic. Additionally, it partnered with Habitat for Humanity, an organization that works in more than 70 countries to ensure that people in vulnerable situations have decent housing conditions.