Trinidad Cement : 31 Jul 2023 – Trinidad Cement Limited – Unaudited Consolidated Financial Statements for the quarter ended June 30th, 2023

CONDENSED CONSOLIDATED UNAUDITED

INTERIM FINANCIAL REPORT

FOR THE SIX MONTHS ENDED JUNE 30, 2023

CONDENSED CONSOLIDATED INCOME STATEMENT

CONDENSED 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 earnings

Financial expense

Financial income

Earnings before taxation

Taxation charge

NET INCOME

Non-controlling interest

CONTROLLING INTEREST

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

UNAUDITED	UNAUDITED	AUDITED
Three Months	Six Months	Year
Apr to Jun	Jan to Jun	Jan to Dec
2023	2022	2023	2022	2022
594,564	533,887	1,149,254	1,063,273	2,061,227
(360,367)	(361,601)	(811,758)	(705,023)	(1,379,886)
234,197	172,286	337,496	358,250	681,341
(37,542)	(32,619)	(70,715)	(64,326)	(128,024)
(5,334)	(3,826)	(10,492)	(7,864)	(15,943)
(37,617)	(37,383)	(72,015)	(76,717)	(151,014)
153,704	98,458	184,274	209,343	386,360
(6,841)	(15,683)	(25,690)	(29,234)	(189,600)
2,458	116	2,908	319	16,017
149,321	82,891	161,492	180,428	212,777
(11,420)	(7,840)	(29,344)	(19,210)	(44,238)
1,280	75	1,612	91	1,278
139,181	75,126	133,760	161,309	169,817
(34,270)	(20,793)	(30,536)	(48,959)	(112,012)
104,911	54,333	103,224	112,350	57,805
(24,356)	(17,998)	(27,723)	(36,972)	(71,969)
80,555	36,335	75,501	75,378	(14,164)
21.7	9.8	20.3	20.3	(3.8)

TT $'000	UNAUDITED	UNAUDITED	AUDITED
		30.06.23	30.06.22	31.12.22
ASSETS
CURRENT ASSETS
Cash and cash equivalents	94,555	83,866	87,004
Trade accounts receivable, net	47,579	69,628	49,248
Other accounts receivable	175,047	84,952	73,998
Taxation recoverable	17,901	2,051	2,201
Inventories, net	379,484	365,750	417,358
Total current assets		714,566	606,247	629,809
NON-CURRENT ASSETS
Investments	2,270	1	1
Property, machinery and equipment, net	1,540,748	1,634,515	1,591,163
Deferred taxation assets	97,074	127,102	102,479
Employee benefits	33,314	134,650	33,847
Other accounts receivable		-	155	-
Total non-current assets		1,673,406	1,896,423	1,727,490
TOTAL ASSETS		2,387,972	2,502,670	2,357,299
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Other financial obligations	9,015	6,692	7,501
Trade payables	254,295	273,400	278,518
Taxation payable	15,533	15,957	33,205

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Provisions	28,516	27,523	57,991
Other current liabilities	239,393	232,765	261,412

TT $'000

NET INCOME

Items that will not be reclassified subsequently to the income statement

Change in fair value of equity investments at fair value through other comprehensive income Net actuarial losses 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

Total items of other comprehensive (loss) income, net

TOTAL COMPREHENSIVE INCOME

Non-controlling interest

Controlling interest

TOTAL COMPREHENSIVE INCOME

	UNAUDITED	UNAUDITED	AUDITED
	Three Months	Six Months	Year
	Apr to Jun	Jan to Jun	Jan to Dec
	2023	2022	2023	2022	2022
104,911	54,333	103,224	112,350	57,805
2,269	-	2,269	-	-
-	-	-	-	(84,235)
-	-	-	-	20,896
	2,269	-	2,269	-	(63,339)
1,109	(1,700)	(2,273)	626	(2,281)
(36,102)	13,504	(14,645)	12,154	11,889
	(34,993)	11,804	(16,918)	12,780	9,608
	(32,724)	11,804	(14,649)	12,780	(53,731)
	72,187	66,137	88,575	125,130	4,074
18,819	20,608	23,127	41,131	72,266
	53,368	45,529	65,448	83,999	(68,192)
	72,187	66,137	88,575	125,130	4,074

Total current liabilities	546,752	556,337	638,627
NON-CURRENT LIABILITIES
Long-term debt	480,896	489,716	437,130
Other financial obligations	14,007	16,207	15,325
Employee benefits	184,920	200,722	180,390
Deferred taxation liabilities	204,195	220,784	204,925
Provisions	4,099	1,583	5,809
Total non-current liabilities	888,117	929,012	843,579
TOTAL LIABILITIES	1,434,869	1,485,349	1,482,206
SHAREHOLDERS' EQUITY
Controlling interest:
Stated capital	827,732	827,732	827,732
Unallocated ESOP shares	(20,019)	(20,019)	(20,019)
Other equity reserves	(323,118)	(316,606)	(313,888)
Retained earnings	207,713	283,984	219,608
Net income (loss)	75,501	75,378	(14,164)
Total controlling interest	767,809	850,469	699,269
Non-controlling interest	185,294	166,852	175,824
TOTAL SHAREHOLDERS' EQUITY	953,103	1,017,321	875,093
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,387,972	2,502,670	2,357,299

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

TT $'000

UNAUDITED

UNAUDITED

AUDITED

DIRECTORS' STATEMENT

Health and Safety	supported by lower maintenance costs and higher cement revenue.
The TCL Group remains committed to placing the highest priority on	During the second quarter of 2023, the TCL Group generated net cash
the health, safety and wellness of our employees, contractors, visitors,	of $39 million from operating activities. This was driven by improved
and communities.	operating results when compared to 2022. On a year-to-date basis,
Through our pillars focussed on safety awareness, training, culture,	the TCL Group generated $53 million from operating activities due to
enforcement, and monitoring, we continue to take steps to reduce	improved working capital management.
risks, provide tools and resources to support our teams, and ensure a	Sustainability
safe environment for all stakeholders.	Sustainability is a strategic priority for us at the TCL Group. We continue
We are pleased to report that during the first six months of the year,	to embrace climate action as our responsibility with an aggressive
there were no safety incidents recorded across our group-wide	programme which features sustainable products and solutions,
operations. Notwithstanding, we continue to work relentlessly on	decarbonising our operations, circular economy, water diversity,
further strengthening our health and safety management system.	promoting a green economy, and innovation and partnerships. During
Financial Performance	the quarter, our operations in Trinidad & Tobago and Jamaica partnered
with their respective governments, local agencies, and other companies
The TCL Group recorded consolidated revenue from continuing
involved in sustainable development, to successfully execute beach
operations of $595 million during the second quarter of 2023, an	cleanup campaigns, amassing several hundred kilogrammes of co-
increase of 11% when compared to the second quarter of 2022. The	processed and recyclable waste.
Group's adjusted EBITDA of $186 million in the second quarter reflected	We continue to reduce carbon emissions using waste oils in Jamaica,
an increase of 39% compared to the same period of the previous
year. This result reflects the impact of higher sales volumes across	more efficient heat consumption in both Trinidad & Tobago and Jamaica,
the Group. In the second quarter of 2023, the TCL Group reported a	and through the production of low-carbon products. Notably, during the
net income of $105 million compared to $54 million during the same	second quarter, low-carbon cement brand, ECO Cement, accounted for
period in 2022. This increase of 93% was driven by increased cement	52% of its total export volume to key CARICOM markets.
volumes in Trinidad and Tobago and Guyana the positive impact of	We are fully committed to following our sustainability roadmap towards
price increases implemented to contain cost inflation and improved	the achievement of our targets, knowing that every decision and action
operating results in Barbados under the new operating model.	which we take is an opportunity to make a positive impact on the people
The TCL Group's Q2 net income of $105 million represents a significant	around us and are stepping stones to a sustainable, greener world.
improvement in comparison to the loss of $2 million during the first	Outlook
quarter of 2023, mainly because the first quarter's performance was	Despite inflation, our markets continue to show strong cement
affected by lower cement volumes and a higher cost of sales related to	volumes, in particular Guyana with an increase of 30% in cement
planned major maintenance in Jamaica.	volumes between June 2022 and June 2023. We continue to execute
On a year-to-date basis, the Group recorded consolidated revenue	relevant initiatives to increase the value offering to our customers,
from continuing operations of $1.1 billion, 8% higher than 2022. The	which includes the upcoming introduction of our service centres, the
Group´s adjusted EBITDA on a year-to-date basis for 2023 was $245	deployment of Construrama with seven stores already opened since its
million, an 11% decrease compared to the prior year due to lower	launch in September 2022 and four others in line and an increase in our
operating results in Jamaica. Cement sales volumes increased by	paperless initiatives by migrating our customers to electronic invoicing
4% and 5% in Trinidad and Tobago and Jamaica, respectively, and the	and dispatch ticketing.
volume of exported cement increased by 5% when compared to the	While inspired by the resilience of our markets, the Board and
first quarter.	Management remain attentive to the looming threat of economic and
On a year-to-date basis, the Group reported a net income of $103	social issues outside of their control and continue to consider risk
million, a decrease of 8% when compared to the same period in	buffering and avoidance among other core strategies.
2022. However, the quarterly performance represented a significant	Overall, we are encouraged by the potential for a satisfactory
improvement over the last quarter. All this has been driven by our	performance in 2023.
enhanced performance strategies in the second quarter of 2023,
David G. Inglefield	Francisco Aguilera Mendoza
Chairman	Managing Director
July 28, 2023	July 28, 2023

		Three Months	Six Months	Year
		Apr to Jun	Jan to Jun	Jan to Dec
OPERATING ACTIVITIES		2023	2022	2023	2022	2022
Net income	104,911	54,333	103,224	112,350	57,805
Non-cash items:
Depreciation and amortisation of property,
machinery and equipment	32,350	35,105	60,495	65,795	135,492
Financial expense, net	10,140	7,765	27,732	19,119	42,960
Pension plan and other post-retirement benefit	4,186	4,148	8,373	8,292	12,832
Other items, net	-	527	-	527	-
Write-off of property, machinery and equipment	-	-	-	-	57,015
Restructuring cost	-	-	-	-	77,324
Taxation charge	34,270	20,793	30,536	48,959	112,012
Changes in working capital, excluding taxation	(115,626)	(107,344)	(99,181)	(202,987)	(226,397)
Cash generated from operating activities before financial
expense, taxation and post-employment benefits paid	70,231	15,327	131,179	52,055	269,043
Financial expense paid		(11,774)	(8,749)	(17,244)	(11,142)	(29,188)
Taxation paid	(16,796)	(14,438)	(54,830)	(41,461)	(71,086)
Pension plan contributions and other post-retirement
benefit paid	(2,686)	(3,608)	(6,549)	(7,170)	(15,256)
Net cash flows from (used in) operating activities		38,975	(11,468)	52,556	(7,718)	153,513
INVESTING ACTIVITIES
Purchase of property, machinery and equipment	(23,599)	(24,920)	(37,160)	(35,464)	(112,562)
Net cash flows used in investing activities		(23,599)	(24,920)	(37,160)	(35,464)	(112,562)
FINANCING ACTIVITIES
Proceeds from debt	37,928	30,148	80,611	69,443	148,656
Repayment of debt	(48,078)	(7,864)	(75,178)	(14,732)	(158,074)
Other financial obligations	(1,535)	(1,829)	(3,850)	(3,517)	(6,911)
Dividends paid	-	-	-	-	(14,671)
Purchase of non-controlling interests in subsidiaries	(10,565)	-	(10,565)	-	-
Financial income received	1,280	75	1,612	91	1,278
Net cash flows (used in) from financing activities		(20,970)	20,530	(7,370)	51,285	(29,722)
(Decrease) increase in cash and cash equivalents		(5,594)	(15,858)	8,026	8,103	11,229
Cash conversion effect, net	(611)	932	(475)	108	120
Cash and cash equivalents at beginning of period	100,760	98,792	87,004	75,655	75,655
CASH AND CASH EQUIVALENTS AT END OF PERIOD		94,555	83,866	94,555	83,866	87,004
Changes in working capital, excluding taxation:
Trade accounts receivable, net	3,946	2,728	1,431	(7,762)	685
Other accounts receivable	(71,299)	(40,293)	(116,026)	(41,639)	(31,279)
Inventories, net	(44,890)	(44,097)	33,763	(37,855)	(135,555)
Trade payables	(25,541)	(34,902)	(21,645)	(85,395)	(66,475)
Other current and non-current liabilities		22,158	9,220	3,296	(30,336)	6,227
Changes in working capital, excluding taxation	(115,626)	(107,344)	(99,181)	(202,987)	(226,397)

CONDENSED CONSOLIDATED UNAUDITED

INTERIM FINANCIAL REPORT

FOR THE SIX MONTHS ENDED JUNE 30, 2023

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

NOTES:

TT $'000

Balance at beginning of period

Net income (loss)

Total items of other comprehensive (loss) income, net

Dividends

Acquisition of non-controlling interest without change of control

Balance at end of period

CONTROLLING INTEREST	NON-CONTROLLING INTEREST
UNAUDITED	AUDITED	UNAUDITED	AUDITED
Jan to Jun	Jan to Dec	Jan to Jun	Jan to Dec
2023	2022	2022	2023	2022	2022
699,269	766,470	766,470	175,824	125,721	125,721
75,501	75,378	(14,164)	27,723	36,972	71,969
(10,053)	8,621	(54,028)	(4,596)	4,159	297
-	-	-	-	-	(14,671)
3,092	-	991	(13,657)	-	(7,492)
767,809	850,469	699,269	185,294	166,852	175,824

1. Basis of Preparation

These condensed consolidated financial statements are prepared in accordance with established criteria

developed by management and disclose the condensed consolidated statement of financial position,

condensed consolidated income statement, condensed consolidated statement of comprehensive

income, condensed consolidated statement of changes in shareholders' equity and condensed

consolidated statement of cash flows.

2. Accounting Policies

These condensed 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 TCL Group has adopted all the new and

SEGMENT INFORMATION

TT $'000	CEMENT	CONCRETE	PACKAGING	CONSOLIDATION	TOTAL
				ADJUSTMENTS
UNAUDITED SIX MONTHS JAN TO JUN 2023
Revenue
Total	1,199,064	17,777	7,165	-	1,224,006
Inter-segment	(67,496)	(809)	(6,447)	-	(74,752)
Third-party	1,131,568	16,968	718	-	1,149,254
Earnings (loss) before taxation	134,610	(1,261)	411	-	133,760
Depreciation	56,274	4,137	84	-	60,495
Segment assets	3,410,134	124,499	93,899	(1,240,560)	2,387,972
Segment liabilities	2,422,193	47,493	3,822	(1,038,639)	1,434,869
Capital expenditure	35,543	1,617	-	-	37,160
UNAUDITED SIX MONTHS JAN TO JUN 2022
Revenue
Total	1,149,055	30,641	17,529	-	1,197,225
Inter-segment	(116,535)	(1,424)	(15,993)	-	(133,952)
Third-party	1,032,520	29,217	1,536	-	1,063,273
Earnings before taxation	158,690	1,724	895	-	161,309
Depreciation	61,467	4,092	236	-	65,795
Segment assets	3,427,428	130,472	70,055	(1,125,285)	2,502,670
Segment liabilities	2,336,150	43,277	10,427	(904,505)	1,485,349
Capital expenditure	34,560	904	-	-	35,464
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

revised accounting standards that are mandatory for annual accounting periods on or after January 1,

2023 and which are relevant to the TCL Group's operations.

3. Earnings Per Share

Earnings per share (EPS) is calculated by dividing the net income or loss attributable to 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 374.648 million, the weighted average of 2.845 million shares that

were held as unallocated shares by the Employee Share Ownership Plan (ESOP).

4. Cost of Sales, Operating and 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 ready-mix 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 sale and the customers' facilities.

Other expenses and other income and credits 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.

5. Other Accounts Receivable

Other accounts receivable includes a deposit investment account of $86 million (US$12.7 million) in

CEMEX Innovation Holding Limited, a related company, which generates interest at a rate equal to the

Western Asset USD Institutional Liquid Reserves Fund rate plus 30 basis points on a daily basis of a year

of 360 days.