Investor Presentaiton
U.S. INFRASTRUCTURE
PLAN WILL BOOST THE
CEMENT INDUSTRY
BIDEN INFRASTRUCTURE PLAN
GCC
The Infrastructure Investment and Jobs Act is a $1.2 trillion infrastructure package. Included in the package is roughly $550
billion in new surface transportation spending. The plan will take 5-years and combines transformational efforts in roads,
bridges, railroads, and domestic building, among others, all requiring cement. Over $280 billion was announced as of 3Q23
83% of GCC's EBITDA is driven by cement
MARKET
PCA estimates that the plan will result in an increase in cement consumption of 35 million metric tons
Cement consumption is expected to increase 7% annually over 2020 levels (excluding organic growth)
Projects will start to materialize in 2024
LIMITED AVAILABILITY
Cement availability pressured by high demand due limited supply
GCC is well positioned to meet U.S. demand with Mexico cement plants and the Rapid City cement plant expansion
Odessa plant expansion to be completed in 2025 to capture plan-related demand
PRICE INCREASES
In 2024, we have increased cement prices one time
In 2023, we increased cement prices two times, which represents an average of 8% increase
Market dynamic could potentially drive the increase in cement prices
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Sources: PCA Fall 2022 Forecast. PCA Market Intelligence "Infrastructure Investment and Jobs Act Tracking Report" September 2023 and "Infrastructure Investment and Jobs Act Impact on Cement Consumption" October 2021View entire presentation