Trinidad Cement : 08 May 2023 – Trinidad Cement Limited – Audited Consolidated Financial Statements for the year ended December 31st, 2022 (Summary)

SUMMARY CONSOLIDATED AUDITED FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2022

SUMMARY CONSOLIDATED INCOME STATEMENT

SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

TT $'000

Revenue

Cost of sales

Gross profit

Administrative expenses

Selling expenses

Distribution and logistics expenses

Operating earnings before other expenses and other income and credits

Other expenses

Other income and credits

Operating (loss) earnings

Financial expense

Financial income

(Loss) earnings before taxation Taxation (charge) credit

NET (LOSS) INCOME

Non-controlling interest

CONTROLLING INTEREST

Basic and diluted (loss) earnings per share - cents (Note 3):

	UNAUDITED	AUDITED
	Three Months	Year
	Oct to Dec	Jan to Dec
2022			2021		2022	2021
508,514			490,275		2,061,227	1,896,518
(360,318)		(310,802)	(1,379,886)	(1,326,431)
148,196			179,473		681,341	570,087
(30,631)		(28,648)	(128,024)	(116,619)
(4,170)		(4,530)	(15,943)	(18,653)
(34,133)		(35,431)	(151,014)	(123,065)
79,262				110,864		386,360		311,750
(154,153)		(10,142)	(189,600)	(31,991)
12,728			51,210		16,017	53,840
	(62,163)				151,932		212,777		333,599
(14,510)		(29,778)	(44,238)	(89,950)
	624				22		1,278		30
(76,049)	122,176		169,817	243,679
	(33,238)			7,659		(112,012)	(53,260)
	(109,287)			129,835		57,805		190,419
(21,183)		(16,658)	(71,969)	(49,646)
	(130,470)			113,177		(14,164)		140,773
(35.1)
	30.5		(3.8)		37.9

TT $'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Trade accounts receivable, net

Other accounts receivable

Taxation recoverable

Inventories, net

Total current assets

NON-CURRENT ASSETS

Investments

Property, machinery and equipment, net Deferred taxation assets

Employee benefits

Total non-current assets

TOTAL ASSETS

LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES

Other financial obligations

Trade payables

Taxation payable

Provisions

Other current liabilities

Total current liabilities

NON-CURRENT LIABILITIES

Long-term debt

AUDITED

31.12.22 31.12.21

87,004	75,655
49,248	61,568
73,998	34,660
2,201	3,218
417,358	324,522
629,809		499,623

11

1,591,163 1,646,605

102,479 114,564

33,847 133,374

1,727,490 1,894,544

2,357,299 2,394,167

7,501	7,091
278,518	356,507
33,205	16,321
57,991	27,873
261,412	239,114
638,627		646,906
437,130	438,760

SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Other financial obligations

15,325

19,325

TT $'000

NET (LOSS) INCOME

Items that will not be reclassified subsequently to the income statement

Net actuarial (losses) gains from remeasurements of employee benefit plans

Taxation recognised directly in other comprehensive income

Items that are or may be reclassified subsequently to the income statement

Effects from derivative financial instruments designated as cash flow hedges

Currency translation results of foreign subsidiaries

	UNAUDITED	AUDITED
	Three Months	Year
	Oct to Dec	Jan to Dec
2022		2021		2022			2021
(109,287)	129,835		57,805			190,419
(84,235)	105,642		(84,235)		105,642
	20,896		(29,043)	20,896			(29,043)
	(63,339)	76,599		(63,339)		76,599)
	(2,003)	(2,660)	(2,281)		1,203
5,166		(25,050)	11,889			(34,302)

Employee benefits

Deferred taxation liabilities

Other non-current liabilities

Total non-current liabilities

TOTAL LIABILITIES

SHAREHOLDERS' EQUITY

Controlling interest:

Stated capital

Unallocated ESOP shares

Other equity reserves

Retained earnings

Net (loss) income

Total controlling interest

Non-controlling interest

TOTAL SHAREHOLDERS' EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

180,390		195,146
204,925		199,121
5,809		2,718
843,579		855,070
1,482,206		1,501,976
827,732		827,732
(20,019)	(20,019)
(313,888)	(325,227)
219,608		143,211
(14,164)	140,773
699,269		766,470
175,824		125,721
875,093		892,191
2,357,299		2,394,167

Total items of other comprehensive (loss) income, net

TOTAL COMPREHENSIVE (LOSS) INCOME Non-controlling interest

CONTROLLING INTEREST

TOTAL COMPREHENSIVE (LOSS) INCOME

3,163			(27,710)		9,608		(33,099)
(60,176)		48,889		(53,731)		43,500
(169,463	)	178,724		4,074		233,919
19,068
	6,144		72,266	35,396
(188,531)	172,580		(68,192)	198,523
(169,463	)	178,724		4,074		233,919

These financial statements were approved by the Board of Directors on May 4, 2023 and signed on their behalf by:

Chairman		Director

SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS

TT $'000

UNAUDITED

AUDITED

DIRECTORS' STATEMENT

Health and Safety	The Group's adjusted EBITDA of $116 million in the fourth
At the TCL Group, the safety and wellbeing of our people	quarter reflected a decrease of 18% compared to the same
is our number one priority and a core value. This drives	period of the previous year. This result reflects the impact of
our rigorous training and development agenda across all	lower sales volumes across the Group due to the heavy rainy
levels of our operations, while we closely monitor our safety	season which slowed demand, as well as higher fuel and
progress to ensure that all systems function effectively. The	import costs. The latter was partially offset by the price increase
year 2022 provided important lessons, and as we continue	implemented earlier in the year.
our commitment to reduce accidents and achieve our 'Zero	In the fourth quarter of 2022, the TCL Group reported a net
for Life' mandate, we are constantly reinforcing our safety	loss of $109 million compared to net income of $130 million
management systems across the TCL Group.	during the same period in 2021. This decrease was driven by
Although the global focus on COVID-19 has decreased, we	the provision for restructuring costs at ACCL in Barbados and
continue to be vigilant to protect our employees, contractors	lower operating earnings due to higher inflation.
and communities from the risks of this virus.	On a year-to-date basis, the Group recorded consolidated
Sustainability	revenue from continuing operations of $2.1 billion, 9% higher
than 2021. The Group´s adjusted EBITDA on a year-to-date
The Group continues to implement initiatives to reduce
basis of 2022 was $522 million, a 19% increase compared
its carbon footprint, aligned to Cemex's "Future in Action"	to the prior year due to stronger revenues driven by the price
platform which focuses on climate action, 'circularity', and	increases that helped to offset the significant inflationary costs
natural resource management.	experienced during the year.
Consistent with this approach, we have recorded a	On a year-to-date basis, the Group reported a net income of
remarkable 3.5% reduction in our carbon footprint, a direct	$58 million compared to a net income of $190 million in 2021.
result of the increased consumption of alternative fuels in	The annual result was impacted by fourth quarter 2022 results,
Jamaica, a reduction of approximately 2.4 percentage points	which offset higher operating earnings and reduced financial
of clinker usage in our cements, and an improvement in kiln	expenses.
heat consumption of about 2% across all our operations.	During the year, the TCL Group renegotiated loan facilities
Committed to the sustainable development of the region,
expiring in 2023, and extended the maturity of $270 million
we continue to partner with environmental authorities in	TTD of these to December 2026. This renegotiation reduced the
our respective countries of operation. In Jamaica, CCCL	interest rate payable and extended the term of our borrowings.
participated in the "Adopt-A-Beach"clean-up programme	Outlook
where the waste collected was disposed of in our cement
kiln. In another development, a new partnership was formed	We will ensure that our operations remain resilient by continuing
between the TCL Group and the Caribbean Climate-Smart	effective cost management initiatives to maximise value in this
Accelerator to spur more innovative ideas including greening	challenging economic environment. Additionally, we expect
Caribbean cement products, exploring alternative fuels, and	improved productivity and efficiency of our equipment on
the promotion of more resilient housing.	completion of major planned maintenance in 2023.
Financial Performance	The Board and Management continue to monitor the current
The TCL Group recorded consolidated revenue from	economic situation to ensure that our business strategies
continuing operations of $509 million during the fourth	will withstand the unpredictable market conditions and other
quarter of 2022, an increase of 4% when compared to the	ongoing global and regional challenges.
fourth quarter of 2021.
David G Inglefield	Francisco Aguilera Mendoza
Chairman	Managing Director
May 4, 2023	May 4, 2023

OPERATING ACTIVITIES

Net (loss) income

Non-cash items:

Depreciation and amortisation of property, machinery and equipment

Financial expense, net

Pension plan and other post-retirement benefit Other items, net

Write-off (reversal of impairment) of property, machinery and equipment

Restructuring cost Taxation charge (credit)

Changes in working capital, excluding taxation

Cash generated from operating activities before financial expense, taxation and post-employment benefits paid

Financial expense paid Taxation paid

Pension plan contributions and other post-retirement benefit paid

Net cash flows from operating activities

INVESTING ACTIVITIES

Purchase of property, machinery and equipment Proceeds from the disposal of assets

Net cash flows used in investing activities

FINANCING ACTIVITIES

Proceeds from debt

Repayment of debt

Proceeds of other financial obligations

Other financial obligations

Dividends

Financial income received

Net cash flows used in financing activities

(Decrease) increase in cash and cash equivalents Cash conversion effect, net

Cash and cash equivalents at beginning of period

CASH AND CASH EQUIVALENTS AT END OF PERIOD Changes in working capital, excluding taxation:

Trade accounts receivable, net

Other accounts receivable

Inventories, net

Trade payables

Other current and non-current liabilities

Changes in working capital, excluding taxation

	Three Months		Year
	Oct to Dec		Jan to Dec
2022	2021		2022		2021
(109,287)	129,835		57,805		190,419
37,179	31,981		135,492		127,043
13,886	29,756		42,960		89,920
390	(25,196)	12,832		(13,395)
188	(738)	-		(1,790)
57,015	(21,801)	57,015		(21,801)
77,324	-		77,324		-
33,238	(7,659)	112,012		53,260
	9,848		3,216		(226,397)			(12,443)
119,781	139,394		269,043		411,213
	(14,533)		(11,152)			(29,188)			(28,244)
(15,278)	(10,162)	(71,086)		(70,740)
(4,450)	(3,608)	(15,256)		(14,764)
	85,520		114,472			153,513			297,465
(55,868)	(74,833)	(112,562)		(139,262)
-	1,790		-		1,790
	(55,868)		(73,043)			(112,562)			(137,472)
38,653	164,940		148,656		584,120
(100,131)	(212,368)	(158,074)		(747,178)
-	-		-		-
(1,539)	(1,597)	(6,911)		(7,668)
-	-		(14,671)		-
624	15		1,278		30
	(62,393)		(49,010)			(29,722)			(170,696)
	(32,741)		(7,581)			11,229		(10,703)
88	(1,003)	120		(1,947)
119,657	84,239		75,655		88,305
	87,004		75,655			87,004			75,655
(7,569)	4,601		685		(5,065)
76,867	10,670		(31,279)		7,241
(74,192)	(36,195)	(135,555)		(88,452)
29,234	36,609		(66,475)		121,915
	(14,492)	(12,469)	6,227		(48,082)
	9,848		3,216			(226,397)	(12,443)

SUMMARY CONSOLIDATED AUDITED FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2022

SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

TT $'000		CONTROLLING INTERESTS	NON-CONTROLLING INTEREST
		AUDITED				AUDITED
		Jan to Dec				Jan to Dec
	2022				2021		2022				2021
Balance at beginning of period	766,470				567,947		125,721				90,325
Net (loss) income	(14,164)				140,773		71,969				49,646
Total items of other comprehensive (loss)
income, net	(54,028)				57,750		297				(14,250)
Dividends	-				-		(14,671)				-
Acqusition of non-controlling interest
without change of control	991				-		(7,492)				-
Balance at end of period		699,269				766,470			175,824				125,721

SEGMENT INFORMATION
TT $'000		CEMENT	CONCRETE	PACKAGING	CONSOLIDATION		TOTAL
										ADJUSTMENTS
AUDITED YEAR JAN TO DEC 2022
Revenue
Total	2,220,832	54,495		28,292		-		2,303,619
Inter-segment	(206,950)	(3,841)	(31,601)	-		(242,392)
Third party		2,013,882			50,654			(3,309)			-			2,061,227
Earnings before taxation	159,312		3,560		6,945		-		169,817
Depreciation	126,597		8,462		433		-		135,492
Write-off of property machinery and equipment	57,015		-		-		-		57,015
Segment assets	3,372,241		125,003		97,559		(1,237,504)		2,357,299
Segment liabilities	2,460,136		46,718		7,933		(1,032,581)		1,482,206
Capital expenditure	112,609		2,684		-		-		115,293
AUDITED YEAR JAN TO DEC 2021
Revenue
Total	2,037,673		67,272		40,212		-		2,145,157
Inter-segment	(208,981)	(3,605)	(36,053)	-		(248,639)
Third party		1,828,692			63,667			4,159			-			1,896,518
Earnings (loss) before taxation	229,529		14,704		(554)	-		243,679
Depreciation	119,707		6,740		596		-		127,043
Reversal of impairment losses on property, machinery
and equipment	21,799		-		-		-		21,799
Segment assets	3,261,356		132,690		73,313		(1,073,192)		2,394,167
Segment liabilities	2,316,206		45,571		14,273		(874,075)		1,501,975
Capital expenditure	141,764		6,136		-		-		147,900

NOTES:

1. Basis of Preparation
   These summary consolidated financial statements are prepared in accordance with established criteria developed by management and disclose the summary consolidated statement of financial position, summary consolidated income statement, summary consolidated statement of comprehensive income, summary consolidated statement of changes in shareholders' equity and summary consolidated statement of cash flows. These summary consolidated financial statements are derived from the audited consolidated financial statements of Trinidad Cement Limited and its subsidiaries (the Group) as of and for the year ended December 31, 2022. The full version of the TCL Group's consolidated financial statements is located at the Company's registered office.
2. Accounting Policies
   These summary consolidated financial statements have been prepared in accordance with the accounting policies set out in Note 2 of the December 31, 2022 audited consolidated financial statements consistently applied from period to period. The Group has adopted all the new and revised accounting standards that are mandatory for annual accounting periods on or after January 1, 2022 and which are relevant to the Group's operations.
3. Earnings Per Share
   Earnings per share (EPS) is calculated by dividing the net income or loss attributable to the controlling interest by the weighted average number of ordinary shares outstanding during the period. The weighted average number of ordinary

shares in issue for the period has been determined by deducting from the total number of issued shares of 374.648M, the weighted average of 2.845M shares that were held as unallocated shares by the Employee Share Ownership Plan (ESOP).

1. Cost of Sales, Operating Expenses, Other Expenses and Other Income and Credits
   Cost of sales represents the production cost of inventories at the moment of sale. Cost of sales includes depreciation, amortisation and depletion of assets involved in production, expenses related to storage in production plants and freight expenses of raw material in plants and delivery expenses of the TCL Group's readymix concrete business.
   Operating expenses comprise administrative, selling, distribution and logistics expenses. Administrative expenses represent expenses related to managerial activities and back office for the TCL Group's management. Distribution and logistics expenses refer to expenses of storage at points of sale, as well as freight expenses of finished products between plants and points of sale and freight expenses between points of sales and the customers' facilities.
   Other expenses and other income and credits, net consist primarily of income and expenses not directly related to the TCL Group's main activities, or which are of an unusual and/or non-recurring nature, including royalties, past service cost of pension and post-retirement employee benefits, reversal of impairment losses on property, machinery and equipment, results on disposal of property, machinery and equipment and restructuring costs, among others.
2. Reclassification of Current Year Financial Information
   The current year financial information presented in these summary financial statements has been reclassified to improve the relevance of the presented statements. Comparative amounts in the consolidated income statement, statement of financial position and statement of cash flows were also reclassified to be consistent with the presentation of the current year financial information.

INDEPENDENT AUDITORS' REPORT ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

To the Shareholders of Trinidad Cement Limited

Opinion

The summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at December 31, 2022, the summary consolidated statements of income statement, comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and related notes, are derived from the audited consolidated financial statements of Trinidad Cement Limited and its subsidiaries (collectively, "the Group") for the year ended December 31, 2022.

In our opinion, the accompanying summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements, in accordance with the basis described in the notes to the summary consolidated financial statements.

Summary Consolidated Financial Statements

The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated financial statements and our report thereon, therefore, is not a substitute for reading the audited consolidated financial statements and our report thereon. The summary consolidated financial statements and the audited consolidated financial statements do not reflect the effects of events that occurred subsequent to that date of our report on the audited consolidated financial statements.

The Audited Consolidated Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated May 4, 2023. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgement, were of most significance in our audit of the consolidated financial statements for the current period.

Management's Responsibility for the Summary Consolidated Financial Statements

Management is responsible for the preparation of the summary consolidated financial statements in accordance with the basis described in the notes to the summary consolidated financial statements.

Auditors' Responsibility

Our responsibility is to express an opinion on whether the summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), "Engagements to Report on Summary Financial Statements."

Accountants

May 4, 2023

Port of Spain

Trinidad and Tobago