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Per - Da de la Banca y

Finanzas 2012

Corporate Presentation
3Q2013

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Company Overview

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About Cementos Pacasmayo - The Hochschild Group

The Hochschild Group


Founded in 1911, The Hochschild Group is headquartered in Lima, Peru

Mining business Industrial business

Incorporated as a PLC; fully Activities: cement, quicklime and


compliant with UK listing code ready-mix producer
Activities: gold and silver producer Operations: Peru
Operations: Peru, Argentina, Chile Listed on the Lima Stock Exchange
& Mexico (BVL: CPACASC1-PE) and on the New
Listed on the London Stock York Stock Exchange (NYSE: CPAC)
Exchange (LSE:HOC)
FTSE 250 member

UTEC: New university of engineering and technology. The campus will be the most modern in Latin
America.
TECSUP: The leading non-profit technical institute in Peru which operates 3 campuses in different cities.

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Overview of Cementos Pacasmayo

Current Shareholder Structure Corporate Structure

Others
9% IPSA1 Others

50.9% 49.1%
ADR Program
19%
IPSA
51%

Peruvian
Pension Funds
(AFPs) Cement
Projects
21% Division

Cement and
Construction
cement-related Quicklime Others Brine Phosphate
Supplies
materials

1 Controlled by Eduardo Hochschild

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Corporate Structure

Rioja Phosphate
Distribution Brine
Cement Project
Network Deposit
Plant 5
Pacasmayo: 56 years of Experience

Shipment Evolution (000 mt)

2,320
2,245

1,944
1,812

1,557
1,479
1,365

1118
964
888
771 770
703

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Jun-13
LTM

Recent Milestones
2011: 2012: 2013:
Partnered with Mitsubishi NYSE IPO in Private offering of US$ 300
to develop the phosphate February 2012 million in Senior Notes placed
project and signed a take or internationally in February
pay agreement 2013

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Pacasmayo is a leading cement company within an attractive
industry
Perus GDP (YoY % change) Perus Construction GDP (YoY % change)

9.8% 17.4%
8.8% 16.5%
14.8%
6.9%
6.3%
5.7%
7.9%
1.7x 6.1%
3.4%
0.9%

2008 2009 2010 2011 2012 9M2013 2008 2009 2010 2011 2012 9M2013

Source: Central Bank of Peru Source: Central Bank of Peru

Infrastructure Deficit Mortgage Capital Loans % of GDP


The infrastructure deficit in Peru is approximately US$88bn
2%
Energy
6%
Telco

22% 37% Toll Roads


Irrigation
Railroads
10%
8% Sewage
15%
Others
Source: CIUP, ESAN 2011 Note: 2011 info for Peru, Chile and Colombia
Pre-financial crisis levels
7 Source: INE, FRED, CEIC, SBS, APOYO Consultoria
Geographically Segmented Cement Market

Peruvian Cement Market


Cement shipments and market share
Northern Region (thousands of metric tons)
Jun-13 Leader in the attractive Northern
Plant 2009 2010 2011 2012 LTM % share region of Peru:
C. Pacasmayo 1,397 1,616 1,748 2,045 2,124 19.4% 23.2% of Perus population
C. Selva 160 195 196 200 196 1.8%
14.8% of National GDP
Imports 39 39 47 29 33 0.2%
Total 1,596 1,850 1,991 2,274 2,353 21.5% Main regional economic activities
include agriculture, manufacturing,
Central Region (thousands of metric tons) fishmeal and commerce
Jun-13
Plant 2009 2010 2011 2012 LTM % share
UNACEM 4,210 4,711 4,709 5,315 5,549 50.8% Grouped in three main regions:
Caliza Inca 63 97 104 157 204 1.9% North: Pacasmayo and Selva
Imports 101 275 351 409 390 3.6%
Central: UNACEM and Caliza Inca
Total 4,374 5,083 5,164 5,881 6,143 56.3%
South: Yura and Sur
Southern Region (thousands of metric tons)
Jun-13
Plant 2009 2010 2011 2012 LTM % share High barriers of entry
C. Yura 1,008 1,159 1,260 1,689 2,123 19.4% Solid distribution network
C. Sur 246 433 449 514 302 2.8% High transportation costs
Total 1,254 1,592 1,709 2,203 2,425 22.1%
National Total 7,224 8,525 8,864 10,358 10,921 Fragmented market
High capex requirements
17% 57% Self construction "Auto-
Pacasmayos Customer Base
(2012) construction" Freight costs explain the naturally
26% Private construction segmented cement market
projects
Public construction
projects

* UNACEM is the result of the merger between Cementos Lima and Cementos Andino in October 2012
Source: ASOCEM, INEI, ADUANET (SUNAT),
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Pacasmayo Operations
The Companys plants have combined cement production capacity of 3.3mm MT/year and clinker capacity of 1.8mm MT/year

Pacasmayo Plant Snapshot Selva Plant Snapshot

Location: Pacasmayo 667km north of Lima Location: Rioja 468 km east of the Panamericana Norte Highway
Cement production capacity: 2.9mm MT/year Cement production capacity: 440k MT/year
Clinker production capacity: 1.5mm MT/year Clinker production capacity: 280k MT/year
9M13 Cement production: 1.6 mm MT 9M13 Cement production: 168k MT

Related Operations

Quicklime Ready-Mix Precast


Produces high quality quicklime due to Cementos Pacasmayo serves all major Cementos Pacasmayo has four
high grade calcium carbonate resources northern cities in Peru: production units: Piura, Pacasmayo,
and homogeneous production process 18 concrete plants Trujillo and Rioja that produce:
Quicklime sold primarily for mining 99 mixers Pavement
operations 18 boom pumps Bricks
Production capacity: 240k MT/year 1 slipform paver unit Fences
Curbs

Source: Company filings


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The Future: Piura Strategic Location
The plant will have cement production capacity of 1.6mm MT/year and clinker capacity of 1.0mm MT/year

Benefits of Strategic Location


Competitive positioning: Enhances Companys footprint in the
northern market
Proximity to port: Allows for lower transportation costs for
imported raw materials and fuels, such as slag, coal, among
others
Raw materials availability: Variety of raw materials for cement
production, such as diatomite, calcareous material, plaster, clay,
among others
Regional growth: Piura is one of the fastest growing and most
dynamic cities in Peru
Risk diversification: Piura will have its own quarry reducing
dependence on the Pacasmayo quarry

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Piura: State-of-the-Art Technology
Two prestigious international firms were hired to ensure the best equipment quality

Leading engineering firm within the Market leaders in the design, manufacturing and
cement and minerals industries service of grinding roller mills

Low Cost and Sustainability


Low cost producer
European equipment: highly recognized brands to ensure best
available quality and performance
Environmental protection: The plant will be built according to
the highest environmental standards
Multi-fuel Kiln: The kiln is designed to work with different types
of fuels, including alternative fuels, such as municipal solid
waste, biomass, shredded tires, among others

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Piura: Efficiency and Social Responsibility

Efficiency and CSR


No blasting: The extraction of seashells (conchuela) for use in
cement production in Piura does not require a blaster which
results in lower Capex/Opex and less pollution
Lower fixed costs: Due to high process automation, fixed costs
will be lower than other facilities.
Lower energy consumption: Efficient generators and processes
allow for lower energy consumption levels per ton produced
Local hiring policy: During the project stage 1,500 workers will
be hired, with local workers given first priority

Status as of September 2013


Environmental Impact Study approved
Equipment ready for delivery, should arrive by end of the year
All licenses required have been obtained
Construction started

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Extensive Distribution Network
Pacasmayo has developed one of the largest independent retail distribution networks for construction materials
in PeruDistribuidora Norte Pacasmayo S.R.L. (DINO)

DINOs Highlights Geographical Footprint (# stores)


Tumbes
Exclusively distributes and sells cement and cement- (26)
Rioja-
related construction materials from Pacasmayo and third Piura Jaen Moyobamba
(24)
parties (46) (22)
Chiclayo Tarapoto-
Consist of 215 individual retailers with 326 hardware (35) Cajamarca Yurimaguas
(25) (26)
stores under the DINO brand. Pacasmayo
(35) Trujillo
(48)

Chimbote
(39)

3rd Party Construction Materials Revenue (US$mm) Construction Supplies


47
43

33
30

Tubes Steel rebars Wires Other small


2010 2011 2012 Sep-13 LTM tools

Source: Company filings


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Extensive Distribution Network

DINOs highlights
Pacasmayo buys or supplies the majority of products
offered in DINOs
Development of loyalty and incentive programs
Partnership with leading local banks to help
finance product purchases
Loyalty program: members can redeem points for
prizes

Departments Population (000)1 # Stores Inhabitants/Store2


Piura 1,800 46 39
La Libertad3 1,792 83 21
Cajamarca4 1,514 49 30
Lambayeque5 1,229 35 35
Ancash6 1,129 39 28
Tumbes 228 26 8
San Martn7 806 48 16

Source: INEI, Company filings


1Projected population for 2012, INEI 2'000 of habitants per store 3 Includes the city of

Trujillo and Pacasmayo 4 Includes the city of Cajamarca and Jaen 5 Includes the city
of Chiclayo 6 Include the city of Chimbote, 7 Includes the city of Tarapoto, Rioja and
Moyobamba.

Pacasmayos distribution network has enabled the Company to build strong brand recognition among
retailers and consumers in the Companys market
Source: Company filings
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Strong Brand Recognition

Broad Product Portfolio

Type V
Type I
Used in concrete exposed to severe
General purposes cement
sulfate action, principally where soil
or ground water has a high sulfate
content

EXTRADURABLE
Used in concrete that is exposed to
severe sulfate action.
Recommended for port
constructions, industrial plants and
construction of sewage sites
EXTRAFORTE Type MS
Used for general purposes and Used to protect against moderate
is similar to Portland Type I sulfate action, such as drainage
cement. It is widely used in our structures, with higher-than-normal,
market due to its effectiveness but not unusually severe, sulfate
and low hydration heat concentrations in ground water

Pacasmayo places significant emphasis on research and development to ensure products meet consumer
needs and improve operational efficiency

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Phosphate Project Overview
Pacasmayo has a strategic partnership with Mitsubishi Corporation, a world-class player in the phosphate
business, to develop Fosfatos del Pacfico

Project Highlights
Estimated mineralized materials of approximately 540 mm MT with
average P205 content of 18.5%
Phosphate Rock expected production of 2.5 mm MT/year
Revenue and EBITDA generation expected to start in 2016
Partnership with Mitsubishi Corporation:
30% stake sold to Mitsubishi for US$46.1mm in December 2011
(Pacasmayo holds remaining 70%)
20 year off-take agreement for 2.0 mm MT/year
Basic engineering studies for the project are being executed by:
Mining: Golder Associates
Plant: FL Smidth Minerals-Jacobs-Golder Associates Consortium
Port: Berenguer Ingenieros

Purchase of Plant,
Basic Engineering EPC (Engineering,
Bank Feasibility Environmental Port,
completed; preliminary Procurement,
Study Impact Assesment Infrastructure &
CAPEX information Construction)
Water Equipment

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Macroeconomic Indicators

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Macroeconomic Outlook

Estimated Peruvian GDP Growth (%): Outstanding Performance

6.2
5.5
4.5
4.2 4.2
3.8 3.6
2013
2.4 2.6 2014
1.6

Brasil Chile Colombia Mexico Peru

Credit Ratings upgraded: Second Highest in Latin America

Chile A+ AA- Aa3


Peru BBB+ BBB+ Baa2
Mexico BBB+ BBB Baa1
Brasil BBB BBB Baa2
Panama BBB BBB Baa2
Colombia BBB- BBB Baa3

Source: Central Bank of Peru, Reuters rating service


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Sector Outlook

Construction Sector Outlook


The construction sector will continue to grow at a higher pace than GDP
Drivers:
Sustained GDP growth
Higher employment levels, which increase purchasing power
Private investment
Infrastructure and housing deficit

GDP by Sector (% change)


2011 2012 2013P 2014P 2015P
Agriculture 3.8 5.8 2.4 4.2 4.2
Fishing 29.7 -11.7 5.0 3.0 3.3
Mining -3.6 2.2 2.0 11.6 13.0
Oil and Gas 18.1 2.3 8.5 10.5 15.2
Manufacturing 5.6 2.0 2.9 4.6 5.5
Construction 3.4 14.8 11.0 8.3 8.0
Trade 8.8 6.7 5.7 5.9 6.4
Services 8.3 7.0 6.0 6.2 6.6
GDP 6.9 6.3 5.5 6.2 6.7

Source: Central Bank of Peru

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Financial Highlights

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Financial Performance

Cement Shipments (000 MT) Revenues (US$mm)

2,360
2,245
1,944 459 446
1,812
1,557

361
324
273

2009 2010 2011 2012 Sep-13 LTM 2009 2010 2011 2012 Sep-13 LTM

3Q13 Revenue Composition(%)


1 2
2%
1

9%
Cement, concrete and 1
blocks
Construction supplies

Quicklime

89%

Source: Company filings


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Financial Performance
Cement, Concrete and Blocks Revenues (US$mm) and Gross Profit Margin (%)
50% 51% 46% 49%
43% 45% 46% 46% 46%

107 107
100 99
94
89
82 85
81

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Coal Mix Evolution (%)


Bituminous Anthracite Others
Raw materials: The Company has its own limestone
quarries located 60 km (38 miles) from the Pacasmayo 1 2

plant, and next to the Rioja plant, minimizing transportation 4% 2%


costs. These have enough reserves for the next 68 years, 18%
considering 2012 limestone consumption. 32%
45% 1
Energy sources: Coal and electricity 22%
Shifting consumption of bituminous coal to anthracite 73%
82%
coal, produced locally with lower cost per BTU
Acquisition of anthracite mining concessions to reduce
exposure to coal prices 60% 64%
53%
Electricity supplied mainly by Electroper via long-
term agreement 27%
18%

Source: Company filings 2009 2010 2011 2012 9M13


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Financial Performance

Construction Supplies Revenues (US$ mm) and Gross Profit Margin (%)

4% 4%
3% 3% 4% 3% 3% 3%
2%

15
14 14 14
13
12
11
9
8

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13


Quicklime Revenues (US$ mm) and Gross Profit Margin (%)

40% 35%
2

27% 24% 24% 27%


19% 18%
17%
5.2
1
4.7
4.5 4.4
4.2
3.8 3.7 3.6

2.5

Source: Company filings 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
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Financial Performance

Gross Profit (US$mm)

189
179
151 155

2010 2011 2012 Sep-13 LTM

EBITDA (US$mm)

1
1

121
11 2
1 1 2
107 1
109
2 1
99
2
2
2

2010 2011 2012 Sep-13 LTM 1


1 1 Excludes non-recurring ~US$28mm related to sale of concession rights and selected assets
(Mina Ral)
2 Excludes impairment charges of zinc mining assets of ~US$35mm
Source: Company filings

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Healthy Capital Structure
Pacasmayo has historically operated at low leverage levels, which provides needed financial flexibility to
continue executing the Companys strategy

Cash and Short-Term Deposits (US$mm) Total Debt (US$mm)

382 300

219

186
132
84

2011 2012 sep-13 2011 2012 sep-13

Total Debt/EBITDA Total Debt/Equity Ratio


0.55x
2.4
2.2 1
0.41x

0.8
0.11x

2011 2012 Sep-13 LTM 2011 2012 sep-13


1 Excludes impairment charges of zinc mining assets of ~US$35mm

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Capex

During 9M13, the Company reported capital expenditures of US$ 54.6 million allocated to the
following projects:

Projects 9M13
New Plant in Piura 16.1
Phosphate Project 12.4
Concrete and aggregates equipment 6.8
Expansion of Rioja plant 5.9
Expansion of Pacasmayo plant 5.5
Construction of diatomite brick plant 3.0
Brine Project 1.0
Other investmenting activities* 3.9
Total 54.6

* Includes capital expenditures in the Pacasmayo and Rioja plants, as well as investments in
machinery, equipment and overhauls.

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Bond Issuance
On February 8, 2013, Pacasmayo successfully closed its first international bond issuance

Transaction Summary

Amount: US$ 300 mm

Ratings: BBB- BB+

Demand exceeded US$ 2.5 billion


Coupon rate: 4.50%
Use of Proceeds:
Prepayment of debt (US$ 78 million)
New Piura plant

Investment Distribution by Geography Investment Distribution by Investor Type


2% 4%
4%

10% Asia Hedge Funds


Europe 7% Retail
Latam
USA 12% Banks
26%
62% 60% Insurance Companies
13%
Pension Funds

Asset Managers

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Corporate Governance

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Corporate Governance

Board of Directors

Chairman

Eduardo Hochschild**

Gianfranco Hilda Ochoa- Rolando Dionisio Roberto Raimundo Humberto


Moiss Nam*
Castagnola* Brillembourg* Arellano* Romero* Daino** Morales** Nadal**

Former Board Former Chief Chairman of the Chairman of the Former Editor in Former Prime Former Chief Former Chairman
Member of Investment Officer Board of Arellano Board of Banco de Chief of Foreign Minister of Peru Executive Officer of Fondo Mi
Peruvian Central of the World Bank Investigacin de Credito del Peru Policy Magazine and Ambassador of Banco del Vivienda and
Bank Marketing and Host and of Peru in the Credito del Peru current CEO of
Producer of Efecto United States Cementos
Nam Pacasmayo
* Independent members ** Members of Executive Committee

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Corporate Governance

Good Corporate Governance Top Social Responsibility Award


Good Corporate Governance Index The Lima Stock Top Social Responsibility Award Cementos Pacasmayo was
Exchange (BVL) recognized Cementos Pacasmayo for one of the Peruvian companies receiving the Top Social
the Companys corporate governance practices. For the Responsibility Award (Distintivo de Empresa Socialmente
fourth consecutive year, Cementos Pacasmayo was Responsable). The award credits companies that voluntarily
selected as part of the Good Corporate Government conduct all aspects of their business in a socially responsible
Index (IGBC). manner and whose corporate culture and strategy incorporate
this concept.

Corporate Reputation Peru 2013


In a study donde by Merco, Pacasmayo was ranked 26
among the 100 Peruvian companies with best corporate
reputation (improving 69 spots from 2012). The
Company also significantlt improved its ranking in the
corporate governance category, moving from 84th to
41st.

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Company Vision and Strategy

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Company Vision and Strategy
Pacasmayos goal is to continue to serve growing cement demand in the northern area of Peru, while
maximizing profitability and shareholder value

Continue to focus on core business of supplying cement demand

Enhance operational efficiencies to reduce production costs

Deepen commercial relationship with retailers and consumers

Continue to focus on being the preferred provider of building solutions

Develop Companys mineral assets

Selectively pursue acquisitions

Pacasmayos goal is to be among the top cement producers in terms of profitability and
environmental protection in Latin America

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Disclaimer
This presentation may contain projections that are based on certain assumptions, including assumptions as to about
Cementos Pacasmayo's capacity to generate revenues and control costs. The projections were prepared on the basis of
management's present knowledge and assumptions which management believes to be reasonable. For purposes of
preparing the projections, management made certain assumptions about general business and economic conditions, the
outcome of which neither management nor any other person can predict with any certainty.

These assumptions and the other assumptions upon which the projections are based are inherently subject to
uncertainties which could have a significant impact on actual future results. Therefore, the projections are not necessarily
an indication of our future performance. Neither Cementos Pacasmayo nor any other person assumes any responsibility
for, nor makes any representation or warranty, expressed or implied, as to, the accuracy or completeness of the
information contained herein, and nothing contained herein is, or shall be relied upon as, a promise or representation.
Therefore, management is not making, and you should not infer, any representation about the likely existence of any
particular future set of facts or circumstances. If Cementos Pacasmayo actual results are less favorable than those shown
in the projections or if the assumptions used in the projections prove to be incorrect, Cementos Pacasmayo may not be
able to make dividend payments in the amount forecast, or at all.

This presentation may contain forward-looking statements. These statements are statements that are not historical facts,
and are based on managements current view and estimates of future economic circumstances, industry conditions,
company performance and financial results. The words anticipates, believes, estimates, expects, plans and similar
expressions, as they relate to the company are intended to identify forward- looking statements. Statements regarding the
declaration or payment of dividends, the implementation of principal operating and financing strategies and capital
expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or
results of operations are examples of forward-looking statements. Such statements reflect the current views of
management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events,
trends, or results will actually occur. The statements are based on many assumptions and factors, including general
economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors
could cause actual results to differ materially from current expectations.
For a description of some of the risks and uncertainties that could cause actual events, trends or results to differ from
those expected, please refer to Risk Factors on page 18 of the Companys amended registration statement on Form F-1
filed with the SEC on February 7, 2012.

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Cement Production Process

1 2 3

Extraction of Limestone Crushing Grinding & Raw Material

4 5 6
Rotatory Kiln Clinkerization Grinding & Additions Homogenization Silos

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Dispatching

Source: AFCP -
Asociacin de
Fabricantes de Cemento
Portland