Investor Presentaiton

Cement Global Industry • • • Overview: Cement is an essential building block of development. The Sector has a huge economic impact due its long and diverse supply chain and contributes ~0.4% to the global GDP and ~7.7% to the world employment. Production: Global cement production is regionally concentrated. Top five countries account for nearly three quarters of the world's cement production which hovers around ~4.3 bln tons and around ~45% of the global capacity is occupied by the top 10 players. China leads with a ~57% share, followed by India (~8%), Vietnam, USA and Indonesia. Globally, more than 1,000 cement producers operate over 2,300 integrated cement plants and 600 grinding stations. Consumption: The global cement consumption has been estimated to decline to ~3.9bln tons in CY20 from ~4.1bln tons in CY19 (a dip of ~5% YoY) owing to the outbreak of covid-19 pandemic. Exporters: Total world cement exports in FY20 were US$ ~11 bln and Vietnam was the largest exporters (~11.5%) followed by Turkey (~7.7%), Thailand (~6%) and Canada (~4.8%). Pakistan's share in world exports of cement in FY20 was ~2.3% and was ranked as the 11th largest exporter in the world. Amid covid-19 crisis, global cement consumption has witnessed a decline across almost all regions except China. Average utilization capacities of cement production have remained around ~70% for five years prior to the advent of covid-19. The utilization levels fell to around 60% in CY20 due to lower production requirements. Nonetheless, global demand is expected to rebound and return to pre-covid levels due to easing of covid-19 induced lockdowns across the major economies. China and Asia are expected to remain the drivers for demand in the short to medium term.

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