Investor Presentaiton
October 12, 2021
LAMOSA: UNLOCKING VALUE IN SOUTH AMERICA
The aftermath of the 2020 health crisis remains an issue for most Latin American countries. In the
case of LAMOSA's key markets in the region-Brazil, Colombia, and Peru-, they are not expected to
bounce back to pre-pandemic levels until 2023 given the challenging macroeconomic conditions of
each country. However, despite a harsh path to recovery, the construction sector, and consequently, the
ceramics industry, seemed to remain resilient in the face of the crisis as a result of the surge of stay-at-
home trends (office, school, etc). People are spending most of their time at home, and a higher need to
renovate and refresh spaces emerged during and after the pandemic lockdowns.
Construction sector: how is each market doing?
Total Housing Deficits
Brazil
The construction sector represented 7.1% of its GDP in 2019 and it is forecasted
to expand at a CAGR of -4.1% in the 2021-2025 period, driven by the government's
housing and infrastructure programs, low interest rates, higher credit activity,
and labor market recovery. Those conditions should encourage demand for new
homes and an appetite for remodeling, thereby boosting demand for building
materials in the country.
Colombia
The Colombian Chamber of Construction (Camacol) expects home building to
grow by 8.4% this year, on the back of an increase in social housing projects.
Also, Camacol anticipates the construction of four million housing units by the
end of the decade (1.7x the current stock), which, in our view, is an aggressive
move to ameliorate the current housing situation.
Peru
The construction industry is forecasted to expand by 2.8% between 2022 and
2025, supported by better macroeconomic conditions and a rise in public
investment. Furthermore, the government recently enacted an unprecedented
law that promotes social housing, which facilitates government action at the
federal and local levels to create better, affordable, and sustainable housing.
These actions should boost not only the residential sector but also the demand
for ceramic tiles, because of the need to improve housing materials in the
country.
Source: Reuters, Mordor Intelligence, Fitch Solutions, DANE, INEI, IADB
19%
46%
16%
27%
GBM
25%
LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 26View entire presentation