Pamesa Group Press Conference Summary

Pamesa Business Group Presentation

Employees and COVID

Corporate Social Responsibility

Pamesa Group Investments

 

2020 Summary

 

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In 2020, Pamesa Group increased its sales in the ceramic business by 20%, made 91 million euros in investments and increased its workforce by 24%

▪ Pamesa Group ended financial year 2020 with 782 million in turnover; sales in the ceramic business increased by 20% ▪ Pamesa Group currently has 2,680 employees which is 527 more than in February 2020, accounting for an increase of 24%. ▪ Pamesa has earmarked €1,400,000 for COVID measures for its employees. Almassora, 2 June 2021

2020 Sales EvolutionPamesa Business Group, which produces and sells ceramic material, atomized clay and chemical products in addition to commercializing energy, attained a solid turnover of 782 million euros in 2020 despite the drop in sales in the months of April and May 2020 due to the COVID-19 public health crisis. This figure represents 11% growth with respect to the 704 million euros earned in 2019. Additionally, there was 20% growth in ceramic product sales when compared to the same period in financial year 2019. At present, all of the Group’s brands are experiencing very positive evolution in comparison to 2020 with a 63% positive variation in ceramic sales. Considering that April was the month when the entire population was confined, the increase percentage will not remain steady throughout the year yet it is expected to be quite relevant.

The forecasted turnover for the end of 2021 is 900 million euros, which is 45% more, and sales of square metres is expected to exceed 130 million. Pamesa Group is tax-compliant, paying 56 million euros in Corporate Tax, Gas and Electricity Business Tax and Social Security taxes for its employees, among others. Its contribution to the effective tax rate on Corporate Tax is 24% and profit before taxes totalled 66 million, which is 56% more than in 2019. Moreover, the Group would like to underline that “Our contribution to society is highly relevant and the total tax contributions from Pamesa Group and its employees, more than 81 million, account for more than 10% of our total turnover”. Finally, Fernando Roig points out that “You don’t bring in more contributions by raising taxes, but rather by increasing economic activity”.

Investments The volume of Group investment in tangible fixed assets in financial year 2020 totalled 91 million euros with the most significant investments being the acquisition of certain land in the towns of Vila-real and Onda for future investments, new productions lines, new offices and the Geotiles showroom. Also significant is the remodelling of the Cottocer plant which was completely modified to install new machinery. Two new furnaces have also just entered production at the Compacglass factory, in Onda as well. /13 For 2021, Pamesa Group expects to invest 70 million, which will be used for projects within its main cities of operation: Almassora, Vila-Real, Onda and Castelló. Some of the most outstanding include: -New main offices for Pamesa Cerámica and a large 3,000 m2 exhibit space. This project will cover a total of 6,387 m2 and is expected to be completed by the end of 2021. -The ninth logistics centre with a total of 140,000 m2. -A new 52,000 m2 warehouse for clay next to the TAU plant. -A plant with more than 7,000 m2 equipped with next-generation ceramic polishing, cutting and rectification equipment located in Onda. Currently known as PLP (Pulidos La Plana), this acquisition will increase the polishing capacity of the tile group by 360,000 m2 a month which means an increase of 27% in the polishing segment. – Finally, between its own companies and collaborating partners, Pamesa plans to increase its production capacity by 40% with the installation of new furnaces in 2021 and 2022 which will make it possible to increase sales and raise its current customer supply capability. It is worth noting that all of these investments will be made with its own equity as the Group is not considering applying for grants from the European Economic Recovery Funds.

Employees and COVID In order to handle the situation deriving from the State of Alarm which began on 14 March 2020, Pamesa Group adapted its facilities to protect its employees’ health and safety. With a cost of €1,400,000, Pamesa had a total of 21,600 antigen and PCR tests done periodically throughout 2020 to monitor its employees’ health. Moreover, all facilities for the different brands and factories were equipped with disinfection stations, masks, infrared thermometers, methacrylate screens and quick sterilization machines for personal objects. Besides generating wealth and activity, the Pamesa Group investment effort has led to the creation of 527 stable, quality jobs. It is worth highlighting that these 527 jobs were created during the pandemic months. Pamesa Group currently has a workforce of 2,680 employees which is an increase of more than 24% over February 2020. Also worth noting is the fact that 80% of the Group’s employees are on permanent contracts with the remaining 20% on temporary contracts yet will become part of the permanent workforce after one complete year of work at the company. The Group has an incentive policy that rewards the achievement of the growth and quality goals established by the company. These bonuses can be earned as of 6 months of work with the company. In 2020, Pamesa distributed a total of 6,500,000 euros in incentive pay among its employees. Likewise, Pamesa has overcome the major difficulties of the past several months without any type of permanent layoffs (ERE, as they are known in Spanish) or any type of temporary layoffs (ERTE, as they are known in Spanish) and none are expected in the near future. The Group’s efforts focus on continuing to grow and meet its customers’ needs.

Commitment to Society In addition, Pamesa Group has a Corporate Social Responsibility (CSR) strategy which includes highly-demanding policies on environmental management, equality and the integration of people with intellectual disabilities. In order to complete its different projects, Pamesa Cerámica supplies tiles to social entities so they may create decorative panels using the trencadís technique. Thanks to this project, these people are able to get training, work and improve their skills in effort, concentration and teamwork. It is highly skilled and creative work which is integrated as a social and sustainable initiative into the entire transformation process of the New /23 Mercadona Efficient Shop Model. The new trencadís murals now have a more spacious design in line with the new shop image. The Todolella Town Hall and Pamesa Group worked together on a public-private initiative to boost El Pitalaero, SL, which is a business project that has created up to 30 permanent and stable jobs in the town in order to fight rural depopulation. To date, more than 500 people are doing porcelain stoneware assembly, meshing and adhesive work through more than 37 occupational centres in the region of Comunitat Valenciana. More centres are expected to be opened in areas at risk of depopulation. As concerns renewable energies, the group has undertaken a major process at its factories to predominantly use photovoltaic solar energy to supply electricity to its production process with total installed power of 17.80 Mw and a total of 95,555 m2 of solar-panelled roofs built, which is the equivalent of the electricity supply for 4,000 homes. Moreover, the company prevents the emission of 8,816 tonnes of carbon dioxide (CO2) into the air each year, which makes it the sector leader worldwide. This high capacity for renewable energy generation allows Pamesa Group to manufacture ceramic products all while leaving a very small carbon footprint. Pamesa Group maintains its zero waste policy where its main areas of action are recycling residual areas within the Group as well as other sector companies, recycling 100% of its solid and liquid waste and recovering the heat from the furnaces at its plants.

In conclusion, Pamesa Group has held steady thanks to its three Ws: work, work and more work. The good figures posted by Pamesa have also been achieved considering its commitment to innovation and investment. The Group is the seventh-leading producer in the world according to the Ceramic World Review, and the first in Europe. Thus, Pamesa Group aims to continue creating jobs and making investments to keep on growing over the coming years.

 

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