Q1 2025 Loma Negra Compañía Industrial Argentina Sociedad Anónima Earnings Call

Good morning, and welcome to the Loma Negra first quarter 2025 conference call and webcast.

Operator: Good morning and welcome to the Loma Negra first quarter 2025 conference call on... All participants will be in the Sonoma If you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions.

Operator: Good morning, welcome to the Loma Negra Q1 2025 conference call and webcast. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. Mr. Sergio Faifman will be responding in Spanish immediately following an English translation. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now turn the conference over to Mr. Diego Jalón, Head of IR. Please, Diego, go ahead.

All participants will be in listen only mode.

Should you need assistance. Please signal a conference festival start pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions also my scenarios Python, we'll be responding the Spanish immediately following an English translation.

Operator: Also, Mr. Sergio Faifman will be responding in Spanish immediately following. To ask a question, you may press star, then 1 on your telephone keyboard. To withdraw your question, please press star. Note, this event is being recorded.

Ask a question you May press Star then one on your telephone keypad.

So you try your question. Please press Star then two please note. This event is being recorded.

Diego Jalon: I would now like to turn the conference over to Mr. Diego Jalon, head of IR, please Diego, go ahead. Thank you.

Now I'll turn the conference over to Mr. Diego, how long head of IR. Please Diego go ahead.

Diego: Thank you.

Diego Jalón: Thank you. Good morning, welcome to Loma Negra's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Faifman, our CEO and Vice President of the Board of Directors, and our CFO, Marcos Gradin. Both of them will be available for the Q&A session. Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements. I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. This conference call will also include discussion on non-GAAP financial measures.

Diego Jalon: Good morning and welcome to Loma Negra's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close.

Speaker Change: Good morning, and welcome to illuminate US earnings conference call by now everyone should have access toward earnings press release and the presentation for today's call both of which were distributed yesterday after market close.

Diego Jalon: Joining me on the call this morning will be Sergio Faifman, our CEO and Vice President of the Board of Directors, and our CFO, Marcos Gradin. Both of them will be available for the Q&A session.

Speaker Change: Turning me on the call. This morning will be such a five month, our CEO and vice President of the board of directors.

Speaker Change: He was CFO, Michael what are the most.

Speaker Change: Most of them will be available for the Q&A session.

Diego Jalon: Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

Speaker Change: Before we proceed I would like to make the following safe Harbor statements.

Speaker Change: Today's call will contain forward looking statements.

Speaker Change: Refer you to the forward looking statements section of our earnings release and recent filings with the S. E C.

Speaker Change: We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances.

Diego Jalon: This conference call will also include discussion on non-GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnest press release.

Speaker Change: This conference call will also include a discussion on non-GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release now.

Diego Jalón: The full reconciliation of the corresponding financial measures is included in the earnings press release. Now, I would like to turn the call over to Sergio.

Sergio Faifman: Now, I would like to turn the call over to Sergio. Thank you, Diego.

Sasha: Now I would like to turn the call over to Sasha.

Sasha: Thank you <unk> Hello, everyone and thank you for this model.

Sergio Faifman: Thank you, Diego Jalón. Hello, everyone, and thank you for joining us this morning. I would like to start my presentation by discussing the highlights of the quarter. Marcos Gradin will take you through our market review and financial results. Following that, I will share some final remarks before opening the call to your questions. Starting with slide 2. We are pleased to present Loma Negra results for Q1 2025. We begin the year with renewed optimism, supported by recent forecasts projecting approximately 5% GDP growth for the Argentine economy. This encouraging environment, our industry continuing its recovery, posting an 11% year-over-year increase in Q1, despite the impact of adverse weather conditions during the early months. However, this recovery remains in its early stage.

Sergio Faifman: Hello, everyone, and thank you for joining us this morning. I would like to start my presentation by discussing the highlights of the quarter.

Sasha: I just started my presentation by discussing the highlights of the quarter, then medical with Doug you must have a view on peanuts, Telesat Halloween, but I will share some final remarks before opening the call to another question.

Marcos Gradin: Then, Marcos will take you through our market review and financial results.

Sergio Faifman: Following that, I will share some final remarks before opening the call to your questions. Starting with slide two.

Sasha: Starting with slide two.

Sergio Faifman: We are pleased to present Loma Negra results for the first quarter of 2025. We begin the year with Renew Optimist, supported by recent forecasts projecting approximately 5% GDP growth for the Argentine economy. In this encouraging environment, our industry continues its recovery, posting an 11% year-over-year increase in the first quarter.

Sasha: Well listen.

Sasha: Luminary sites for the first quarter of 2025.

Sasha: To begin the year.

Sasha: With renewed optimism supported sinful.

Sasha: Approximately 5% GDP grow production.

Sasha: Do you think could achieve and vitamins.

Sasha: The street, continuing comedy posting an 11% year over year.

Sasha: The increase in the first quarter despite the spot.

Sergio Faifman: Despite the impact of adverse weather conditions during the early months. However, this recovery remains in its early stages. If the economy meets the project goal, the real economy, particularly the construction sector, should benefit potentially fueling a more robust and sustained recovery in the months ahead. As the year progressed, semi-consumption showed signs of improvement, which we believe will continue in the coming months. APD figures were nearly 28% higher year-over-year and up 13% on a sequential basis.

Sasha: Adverse weather condition Julian definitely months.

Michael: Hello This is Michael.

Michael: The mine in each state.

Sergio Faifman: If the economy meets the project growth, the real economy, particularly the construction sector, should benefit, potentially fueling a more robust and sustained recovery in the months ahead. As the year progresses, cement consumption shows signs of improvement, which we believe will continue in the coming months. April figures were nearly 28% higher year-over-year and up 13% on a sequential basis. Diving into the quarterly results in the context of recovery within an industry still characterized by the high capacity. We continue to focus on driving efficiency and controlling costs. These efforts enable us to improve our margin, which rose by 140 basis points compared to the same period last year. We achieved an adjusted EBITDA of ARS 40 million. While this represents a 3.2% decrease in pesos, it translated into a solid US$36 per ton. We remain committed to protecting our profitability while maintaining a strong and resilient balance sheet.

Michael: Economy meets the placebo the real economy, particularly the construction sector should benefit potentially feeling a more robust system quality in the months ahead.

Michael: Yeah.

Natalie: The progress at semi consumption. So I would think of improvement, which we believe will continue in the coming months, a brief Q&A, what natalie 28% year over year.

Michael: Up 17% on a sequential basics.

Natalie: Yeah.

Natalie: Diving into the quarter, but he besides in the context of Covid.

Sergio Faifman: Diving into the quarterly results in the context of globally recovery within an industry-style characterized by the high tide capacity. We continue to focus on driving efficiency and controlling costs. These efforts enabled us to improve our margin, which rose by 140 basis points compared to the same period last year. We achieved an assessment FBDI of $40 million. While true, this represents a 3.2% decrease in peso.

Colby: Colby, we didn't seem to street style correctly.

Colby: The height capacity, we continue to focus on driving efficiency and controlling costs.

Colby: You just thoughts enabled us to improve our machine, which rose by 140 basis points compared to the same period last year.

Colby: The TV shipment EBITDA of 40 million Donuts.

Colby: Well through this represent a 3.2% decrease in pesos.

Sergio Faifman: has relied into a solid U.S. dollar 36 per ton, with a mind committed to protecting our profitability while maintaining a strong and resilient balance sheet. On the financial front, our balance sheets remain solid. During the quarter, net debt increased sequentially to $174 million, as the first quarter is typically more capital-intensive. However, our net debt EBDI ratio remains comfortably below 1.0 times.

Colby: They then into solid U S border cities cheeks per tonne.

Colby: With a mine committed to protecting our profitability, while maintaining a strong balance.

Colby: Balance sheet.

Colby: On the financials from our balance sheet remained solid during the quarter net debt increased sequentially to 174 million blood out of the first quarter is typically more capital intensive however.

Sergio Faifman: On the financial front, our balance sheet remains solid. During Q1, net debt increased sequentially to ARS 174 million, as Q1 is typically more capital intensive. Our net debt to EBITDA ratio remains comfortably below 1x. I will now hand off the call to Marcos Gradin, who will walk you through our market review and financial results. Please, Marcos, go ahead.

Colby: However, our net debt EBITDA, but you then my comfortably below one times.

Marcos Gradin: I will now hand over the call to Marcos Gradin, who will work with you for market review and financial results. Please, Marcos, go ahead.

Colby: I will now.

Michael: Off the call to Michael <unk>, who will walk you offer multiple view on peanuts episodes Police medical Board.

Colby: Go ahead.

Sergio: Thank you Sergio good morning, everyone. Please turn to slide four.

Marcos Gradin: Thank you Sergio, good morning everyone, please turn to slide 4. We started the year with positive forecasts for the Argentine economy, which is expected to grow around 5% following a 1.7% contraction in 2024. However, that contraction affected sectors unevenly. While agriculture expanded by 31%, contraction was the most affected, declining by 18%. Now, with the last two quarters showing signs of economy expansion, a recovery in construction activity is underway. Although the early months of the year were impacted by adverse weather conditions, the industry closed the border with an 11% year-over-year increase. Notably, the second half of March showed encouraging figures in daily dispatches.

Marcos Gradin: Thank you, Sergio. Good morning, everyone. Please turn to slide 4. We started the year with positive forecasts for the Argentine economy, which is expected to grow around 5%, following a 1.7% contraction in 2024. However, that contraction affected sectors unevenly. While agriculture expanded by 31%, construction was the most affected, declining by 18%. Now, with the last 2 quarters showing signs of economy expansion, a recovery in construction activity is underway. Although the early months of the year were impacted by adverse weather conditions, the industry closed the quarter with an 11% year-over-year increase. Notably, the second half of March showed encouraging figures in daily dispatches. Furthermore, recent data from AFCP for April indicates a more robust recovery, with cement volumes growing 28% year-over-year and 13% sequentially. The breakdown of cement sales by dispatch mode remained consistent with historical trends.

Colby: We started the year with positive forecast for the ultra 10 the economy.

Colby: Which is expected to grow around 5% following a $1 seven construction.

Colby: Just also a 24.

Colby: However, the construction affected sectors unevenly.

Colby: Well you got to have expanded by 31% construction was the most affected declining by 10%.

Now the last two quarters showing signs of economy expansion.

Colby: A recovery in construction activity is underway.

Colby: Although the early months of the year were impacted by adverse weather conditions the industry closer Buda, we've only 11% year over year increase.

Colby: Notably the second half of March show encouraging figures in daily dispatches.

Marcos Gradin: Furthermore, recent data from AFCP for April indicates a most... A more robust recovery, with cement volumes growing 28% year-over-year and 14% sequentially. The breakdown of cement sales by dispatch mode remained consistent with historical trends. Bulk cement accounted for 60% of total sales, while bulk cement represented 40%. We are cautiously optimistic about this start to the year.

Colby: Furthermore, recent data for FCB for April indicates our most.

Colby: A more robust recovery there are seven volumes growing 28% year over year.

Colby: 14% sequentially.

Colby: The breakdown of sermon says why this batch mode remained consistent with historical trends.

Marcos Gradin: Bag cement accounted for 60% of total sales, while bulk cement represented 40%. We are cautiously optimistic about this start to the year. While we remain in the early stages of recovery, we expect the process to gain momentum and strengthen in the coming quarters. Turning to slide 5 for a review of our top-line performance by segment. Q1 top line decreased by 8.9%, primarily due to the weaker performance in the cement segment, along with declines across other business areas. The cement, mixed cement, and lime segment posted a 10.9% revenue drop, despite an 8.9% year-over-year increase in volumes, extending the recovery trend observed in previous quarters. However, the positive effect of higher volumes was offset by a softer pricing environment. That said, prices remained above the evolution of our internal cost structure.

Colby: <unk> segment accounted for 60% of total sales.

Colby: Bulk segment represents.

Colby: 40%.

Colby: We are optimistic about the start to the <unk>.

Marcos Gradin: While we remain in the early stages of recovery, we expect the process to gain momentum and strengthen in the coming quarters.

Colby: While we remain in the early stages of recovery.

Colby: The process to gain momentum in the coming quarters.

Marcos Gradin: Turning to slide 5 for a review of our top-line performance by segment. First quarter top-line decreased by 8.9%, primarily due to the weaker performance in the cement segment, along with declines across other business areas. The cement, major cement and lime segment boasted a 10.9% revenue drop, despite an 8.9% year-over-year increase in volumes, extending the recovery trend observed in previous quarters. However, the positive effect of higher volumes was offset by a softer pricing environment. That said, prices remain above the evolution of our internal cost structure. Concrete revenues declined by 1.4% in the quarter, as a 22.8% increase in volumes was offset by price pressures stemming from a more competitive market environment.

Colby: Turning to slide five for a review of our top line performance by segment.

Colby: First quarter top line decreased by eight 9%, primarily due to the weaker performance in the southern segment.

Colby: Along with declines across other business areas.

Colby: Semi is measured a seventh line segment bolstered that 10, 9% revenue drop.

Colby: Despite an eight 9% year over year increase in volumes.

Colby: Extending the recovery trend of several previous quarters. However, the positive effect of higher volumes was upset by a softer pricing environment.

Colby: That said prices remained above the evolution of our internal cost structure.

Colby: So quit revenues declined by one 4% in the quarter.

Marcos Gradin: Concrete revenues declined by 1.4% in the quarter, as a 22.8% increase in volumes was offset by price pressures stemming from a more competitive market environment. The rise in sales volume was driven by private infrastructure projects and renewable energy developments in the province of Buenos Aires, along with ongoing residential construction and a slight uptick in public works. Similarly, the aggregate segment posted a 14.2% revenue decline, despite a 29% increase in sales volumes, driven by higher road construction activity in the province of Buenos Aires and Santa Fe. A still overall weak market activity continued to weigh on pricing dynamics. Prices were also impacted by the sales mix, as road construction projects primarily require fine aggregates, which carry a lower average price. Railroad revenues saw a more moderate decline of 1.2% in the quarter. Higher transported volumes, up 19.9%, helped offset softer pricing.

Colby: <unk> 22, 8% increase in volumes plus upset by breast breast price pressures stemming from a more competitive market environment.

Marcos Gradin: The rise in sales volumes was driven by private infrastructure projects and renewable energy developments in the province of Buenos Aires, along with ongoing residential construction and a slight uptick in public works. Similarly, the aggregate segment boasted a 14.2% revenue decline, despite a 29% increase in sales volumes, driven by higher road construction activity in the province of Buenos Aires and Santa Fe. However, a still overall weak market activity continues to weight on pricing dynamics. Prices were also impacted by the sales mix, as road construction projects primarily require fine aggregates, which carry a lower average price. Railroad revenues saw a more moderate decline of 1.2% in the quarter.

Colby: The Russian says volume was driven by a private infrastructure projects and renewable energy development in the province of Modena scientists along with ongoing residential construction.

Colby: A slight uptick in public works.

Colby: Similarly, the aggregate segment posted a 14, 2% revenue decline.

Colby: Despite a 29% increase in sales volumes.

Colby: Or even by category.

Colby: Construction activity in the province of when a site is of Santa Fe.

Colby: However are still overall weak market activity continue to weight on pricing dynamics.

Colby: Prices were also impacted by the sales mix as road construction projects, primarily with core.

Colby: Fine aggregates, which carry a lower average price.

Colby: Redwood revenue saw more volume decline of one 2% in the quarter.

Marcos Gradin: Higher transported volumes, up 19.9%, helped offset softer pricing. Volume growth was primarily driven by increased transport of construction materials and grain. However, the rise in grain transport negatively impacted the average price, as grain generates lower revenue per kilometer transported.

Colby: Hi, good transported volumes up 19, 9% helped offset softer pricing.

Marcos Gradin: Volume growth was primarily driven by increased transport of construction materials and grain. However, the rise in grain transport negatively impacted the average price, as grain generates lower revenue per kilometer transported. The main negative event of the quarter was the severe storm that struck Bahía Blanca on 7 March, which disrupted the railroad line connection in the city with Neuquen. This caused a negative impact on the transporter of several products as a disruption, whose effects are expected to continue into Q2. Moving on to slide 7, consolidated gross profit declined 4.7%, while gross margin expanded by 116 basis points year-over-year, reaching 26.4%. In the cement segment, higher volumes and effective cost management play a key role in mitigating the impact of a softer top line during this quarter. Improved energy inputs cost had a positive effect on variable cost.

Colby: Volume growth bus driver for a model is driven by increased transport, our construction materials and great Howard.

Colby: However, the rising grain transport negatively impacted the average price.

Colby: Greg generates lower revenue per kilometer transported.

Marcos Gradin: The main negative event of the quarter was the severe storm that struck Vallablanca on March 7, which disrupted the railroad-like connection in the city with Neuquén. This caused a negative impact on the transported of several products, as a disruption whose effects are expected to continue into the second quarter.

Colby: The main negative event of the quarter was a severe storm that struck by a lack of March seven with disrupted the railroad like connection to the city with no cure.

Colby: This goes to a negative impact on the transporter of several products.

Colby: Ruptured, which effects are expected to continue into the second quarter.

Marcos Gradin: Moving on to Slate 7, Consolidated Gross Profit declined 4.7% while Gross Margin expanded by 116 basis points year-over-year, reaching 26.4%. In the seventh segment, higher volumes and effective cost management. play a key role in mitigating the impact of a softer top line during this quarter. Improved energy inputs, cost, had a positive effect on variable costs. As in the fourth quarter of last year, the company benefited from thermal energy contracts with year-over-year tariff reductions, including short-term agreements linked to oil production that presented spot opportunities. On the electrical energy side, the year-over-year comparison reflects an increase in prices in dollar terms, primarily due to adjustments in transport and distribution costs implemented last year.

Colby: Moving onto slide seven consolidated gross profit declined four 7%.

Colby: Gross margin expanded by 116 basis points year over year reached.

Colby: Reaching 26 point full floor set.

Colby: In the southern segment hydro volumes and effective cost management.

Colby: A key role in mitigating the impact of soft softer top line use this quarter.

Colby: Improved energy input cost.

Colby: The positive effect of Maria will cost.

Marcos Gradin: As in the Q4 of last year, the company benefit from thermal energy contracts with year-over-year tariff reductions, including short-term agreements linked to oil production that presented spot opportunities. On the electrical energy side, the year-over-year comparison reflects an increase in prices in dollar terms, primarily due to adjustments in transport and distribution costs implemented last year. However, this effect was softened when measured in pesos. Additionally, lower maintenance expenses and a reduction in salary cost contributed further to overall cost efficiencies. Margin expanded across all segments except aggregates, which continues to be impacted by challenging market conditions despite volume growth. Finally, SG&A expenses decreased by 7.8%, mainly due to lower marketing and IT expenditures, as well as a reduced salary cost. As a percentage of sales, SG&A reached 11.7%, representing a 14 basis points increase year-over-year, primarily due to the lower top line. Please turn to slide 8.

Colby: As in the fourth quarter of last year, the company benefit from thermal energy contracts with year over year tariff reductions, including short term agreements linked towards production.

Colby: Percentage of spot opportunities on.

On the electrical energy side the year over year comparison reflects an increase in prices in dollar terms primarily.

Colby: The adjustments in transport is Jewish in costs implemented last year. However.

Marcos Gradin: However, this effect was softened when measuring pesos. Additionally, lower maintainer expenses and a reduction in salary costs. Contributed further to overall cost efficiencies. Margin expanded across all segments except aggregates, which continues to be impacted by challenging market conditions despite volume growth.

Colby: However, this effect was often when measured in pesos.

Colby: Additionally, lower maintaining expenses and a reduction in salary costs.

Colby: Contributed further to overall cost efficiencies.

Colby: Margin expanded across all segments, except aggregates.

Colby: It continues to be impacted by challenging market conditions, despite volume growth.

Marcos Gradin: Finally, SG&A expenses decreased by 7.8%. mainly due to lower marketing and IT expenditures as well as a reduced salary cost. As a percentage of sales, SG&A reached 11.7%, representing a 14 basis points increase year over year, primarily due to the lower top line.

Colby: Finally, SG&A expenses decreased by 7.8%.

Colby: Mainly due to lower marketing and a T expenditures.

Colby: Well as a reduced salary cost.

Colby: As a percentage of sales SG&A reached 11, 7%.

Colby: Representing a 14 basis point increase year over year.

Colby: My early due to the lower top line.

Marcos Gradin: Please turn to slide 8. Consolidated adjusted BDA for the quarter stood at US$40 million. while in pesos it reached $39.2 billion, reflecting a $3.2 billion deficit. percent year-over-year decline.

Colby: Please turn to slide eight consolidated adjusted EBITDA for the quarter stood at 40 million U S donors.

Marcos Gradin: Consolidated adjusted EBITDA for the quarter stood at $40 million, while in pesos it reached ARS 39.2 billion, reflecting a 3.6% year-over-year decline. This decrease was primarily driven by lower EBITDA generation in the cement segment. However, the consolidated EBITDA margin expanded to 24%, representing a year-over-year increase of 140 basis points. In the cement segment, the adjusted EBITDA margin expanded to 28.9%, up 279 basis points, mainly driven by cost improvements. Cost declined by 21.9% on a per ton basis, supported by higher sales volumes, partially offset by softer pricing dynamics. The concrete segment saw its adjusted EBITDA margin improvement by 455 basis points, reaching -5.5% compared to -10% in the Q1 of last year. While cost controls and increased volumes contributed positively, they were not sufficient to fully offset the impact of continuing pricing pressures.

Colby: Vessels of which $49 2 billion.

Colby: Reflecting our frequent.

Colby: 70 year over year decline.

Marcos Gradin: This decrease was primarily driven by lower BTA generation in the seventh century. However, the consolidated VTA margin expanded to 24%, representing a year-over-year increase of 140 basis points. In the seventh segment, the adjusted EBITDA margin expanded to 28.9%, up 279 basis points, mainly driven by cost improvement. Cost declined by 21.9% on a per ton basis, supported by higher sales volumes, partially offset by softer pricing dynamics. The concrete segment saw its adjusted BTA margin improvement by 455 basis points, reaching minus 5.5% compared to minus 10% in the first quarter of last year. While cost controls and increased volumes contributed positively, they were not sufficient to fully offset the impact of continuing pricing pressures.

Colby: This increase was primarily driven by lower EBITDA generation in the SME segment.

Colby: However, the consolidated EBITDA margin expanded to 24% representing a year over year increase of 140 basis points.

Colby: In the southern segment, the adjusted EBITDA margin expanded to 28, 9%.

Colby: 279 basis points.

Colby: Really driven by cost improvements.

Colby: Cost declined by 21, 9% on a per tonne basis supported by Honeywell sales volumes, partially offset by softer pricing dynamics.

Colby: The corporate segment, so its adjusted EBITDA margin improvement by 455 basis points, reaching minus five 5% compared to minus 10% in the first quarter of last year.

Colby: While cost controls and increased volumes contributed positively.

Colby: Were not sufficient to fully offset the bulk of continued pricing pressure.

Marcos Gradin: In the aggregate segment, the adjusted VTA margin fell sharply to minus 24.7%. compared to minus 1.1% in the same quarter of last year. Although volumes continued to recover, profitability was significant. Significantly affected by a highly competitive market and an unfavorable product mix.

Marcos Gradin: In the aggregate segment, the adjusted EBITDA margin fell sharply to -24.7%, compared to -1.1% in the same Q of last year. Although volumes continued to recover, profitability was significantly affected by a higher competitive market and an unfavorable product mix. The railroad segment also reported a contraction in its adjusted EBITDA margin while declining by 592 basis points to -5.5% from 0.4% in Q1 of 2024. Volume growth, driven by increased shipments of construction materials and grain, helped support performance. However, the higher share of grain transport, which yields lower revenue per kilometers, pressured margins. This effect was partially mitigated by effective cost controls. Moving on to the bottom line on slide 10, net profit attributable to owners of the company totaled ARS 21.5 billion for the Q, compared to a net gain of ARS 79 billion in Q1 of 2024.

Colby: In the aggregate segment, the adjusted EBITDA margin fell sharply to minus 24%.

Colby: Compared to a minus one 1% in the same quarter of last year.

Colby: Although volumes continue to recover profitability was significant.

Colby: Significantly affected by a highly competitive market.

Colby: Favorable program mix.

Marcos Gradin: The railroad segment also reported a contraction in its adjusted BTI margin while declining by 592 basis points to minus 5.5% from 0.4% in the first quarter of 2024. Volume growth, driven by increased shipments of construction materials and grain, helps support performance. However, the higher share of grain transport... with yields lower but revenue per kilometer's pressure margin. This effect was partially mitigated by effective cost control.

Colby: The wearable segment also reported a construction and he said adjusted EBITDA margin.

Colby: While declining by 592 basis points to minus five 5%.

Colby: <unk>, 0.4% in the first quarter of 2024.

Colby: Volume growth driven by increased shipments of construction materials and great help support performers.

Colby: However, the hydro shelf green transport with.

Colby: Which yields lower revenue per kilometers pressured margins.

Colby: Effect was partially mitigated by the effective cost controls.

Marcos Gradin: Moving on to the bottom nine on slide 10, net profit attributable to owners of the company totaled 21.5 billion pesos for the quarter, compared to a net gain of 79 billion pesos in the first quarter of 2024. This decline was primarily driven by a lower financial result, while operation performance remained stable.

Colby: Moving onto the bottom line on slide 10, net profit attributable to owners of the company totaled $21 5 billion pesos for the quarter.

Colby: Compared to a net gain of 17 9 billion pesos in the first quarter of 2024.

Marcos Gradin: This decline was primarily driven by a lower financial result, while operation performance remained stable. On a financial front, the main driver of the year-over-year variation was a reduced gain on the net monetary position, reflecting a more moderate inflationary environment. The company reported a net financial gain of ARS 8.9 billion for the quarter, compared to ARS 103 billion in the same period last year. Additionally, net financial expenses declined, supported by lower interest rates, a reduced debt position, and a smaller loss from exchange rate difference. Moving on to the balance sheet, as you can see on slide 11. We ended the quarter with net debt of ARS 187 billion and a debt to EBITDA ratio of 0.96 times, slightly up from 0.89 times at the end of 2024, as this quarter is typically more capital intensive.

This decline was primarily driven by a lower financial result.

Colby: Parisian performance remains stable.

Marcos Gradin: On a financial front, the main driver of the year-over-year variation was a reduced gain on the net monetary position, reflecting a more moderate inflationary environment. The company reported a net financial gain of 8.9 billion pesos for the quarter, compared to 103 billion pesos in the same period of last year. Additionally, net financial expenses declined, supported by lower interest rates, a reduced debt position, and a smaller loss from exchange rate difference.

Colby: On a financial front demand driven driver of the year over year ratio plus a reduced gain on the net monetary position.

Colby: Reflecting a more moderate inflationary environment.

Colby: The company reported a net financial gain of $8 9 billion peso for the quarter compared to 140 billion pesos in the same period of last year.

Colby: Additionally, net financial expenses decline supported by low interest rates are reduced our position.

Colby: A smaller loss from exchange rate difference.

Marcos Gradin: Moving on to the balance sheet, as you can see on slide 11. We ended the quarter with net debt of 187 billion pesos and a debt-debt-to-EBITDA ratio of 0.96 times, slightly up from 0.89 times at the end of 2024, as this quarter is typically more capital intensive. Cash flow used in operating activities totaled 1.3 billion pesos, a significant improvement compared to the 12 million pesos used in Q3-Q24, primarily driven by a reduced need for working capital. We invested 11.1 billion pesos in capital expenditure during this quarter, mainly directed towards the final stage of the 25-kilogram bag projects and maintaining CAPEX.

Colby: Moving onto the balance sheet as you can see on slide 11.

Colby: We ended the quarter with net debt of 187 billion pesos.

Colby: Debt to EBITDA ratio close to $1 96 times slightly up from zero 89 times at the end of 2024.

Colby: This quarter is typically more capital intensive.

Marcos Gradin: Cash flow used in operating activities totaled ARS 1.3 billion, a significant improvement compared to the ARS 12 million used in Q1 2024, primarily driven by a reduced need for working capital. We invested ARS 11.1 billion in capital expenditure during this quarter, mainly directed towards the final stage of the 25 kilogram bag projects and maintaining CapEx. During the quarter, the company generated ARS 15 billion from financial activities, mainly from new borrowings, net of loan repayments and interest payments. In US dollar terms, net debt stood at $174 million, with a duration of less than one year. The sequential increase is linked to seasonal capital demands, as Q1 tends to be more capital intensive due to a more aggressive production strategy during the warmer months. Dollar-denominated debt represents 84% of our total debt, with the remaining in pesos.

Colby: Cash flow used in operating activities totaled $1 3 billion pesos.

Colby: Significant improvement compared to the 12 million peso shoes.

Colby: First quarter 'twenty four.

Commodity driven by a reduced need for working capital.

Colby: We invested 11.1 billion pesos in capital expenditure during this quarter, mainly directed towards the final stage 25 kilo runs but projects.

Colby: Maintaining capex.

Marcos Gradin: During the quarter, the company generated 15 billion pesos for financial activities, mainly from new borrowings, net of loan repayments and interest payments.

Colby: During the quarter the company generated 15 billion peso from financing activities, mainly from new borrowings net of loan repayments and interest statements.

Marcos Gradin: In U.S. dollar terms, net debt stood at $174 million with a duration of less than one year. The sequential increase is linked to seasonal capital demand, as the third quarter tends to be more capital-intensive due to a more aggressive production strategy during the warmer months. Dollar-dominated debt represents 84% of our total debt, with the remaining in pesos. The company's debt maturity profile remains well-balanced, with a Class II bond scheduled to mature on December 2025.

Colby: In U S dollar terms net debt stood at $174 million.

Colby: The ratio of less than one year.

Colby: The sequential increase is linked to seasonal capital demand, although the first quarter tends to be more capital intensive due to a more aggressive production strategy during the warmer months.

Colby: The depth represents 84% of our total debt.

Colby: The remaining in pesos.

Marcos Gradin: The company's net material profiles remains well-balanced, with the Class 2 Notes scheduled to mature on December 2025. Now for our final remarks, I will hand the call back to Sergio. Thank you.

Colby: The company's debt maturity profile remains well balanced with our class II <unk> scheduled to.

Colby: Mature on December 2025.

Sergio Faifman: Now for our final remarks, I will handle the call back to Sergio. Thank you. Thank you, Marcos.

Colby: Now for our final remarks.

Colby: On the call back to search think.

Speaker Change: Thank you Marcos now to simulate the presentation I. Please ask you to slide 17.

Sergio Faifman: Thank you, Marcos. Now, to finalize the presentation, I please ask you to turn to slide 13. As mentioned earlier, we begin this year with renewed optimism, having left behind a challenging 2024. The consolidation of the stabilization plan, along with decreasing uncertainty and economic volatility, is creating a more promising outlook. If Argentina achieves the projected growth currently forecast of around 5% by market consensus and up to 5.5% according to present EIS estimates, our industry is well-positioned to enter a more sustained and deeper recovery in the coming quarter. Currently, the second half of March and the latest figures from IP show promising signs in the positive trend taking hold. The recent change in exchange rate policy and the easing of capital control represent long-awaited measures that could play a pivotal role in accelerating the recovery process.

Sergio Faifman: Now, to finalize the presentation, I please ask you to turn to slide 13. As mentioned earlier, we begin this year with Renewable Optimists, having left behind a challenging 2024. The Consolidation of the Establishment Plan along with Decreasing Uncertainty and Economic Volatility. is creating a more promising outlook if Argentina achieves the project's growth currently forecast at around 5% by market consensus and up to 5.5% according to the present EIF estimates. Our industry is well positioned to enter a more sustained and deeper recovery in the coming quarters. And currently, the second half of March and the last few days for IP show promising signs in the positive trend taking hold.

Ali: Ali we begin this year with the opinion of the optimist.

Speaker Change: Les Besides a challenging 2020 volt deconsolidation Allstate tabulation planned along with decreasing uncertainty and economic volatility.

Speaker Change: You should get 18 more.

Speaker Change: Promise outlook, if Argentina achieve the profit grow.

Speaker Change: Goldman default.

Speaker Change: 5% by markets on Samsung on up to five 5%. According to <unk> E. S. S teammates our industry is well positioned to enter a more sustained and deepen recovery in the coming quarter.

Speaker Change: Importantly, the second half of March and the less people with H E B show promise and saying in the positive trend taking hold.

Speaker Change: Furthermore, the sudden change in exchange rate polythene, and 18 of capital control.

Sergio Faifman: Furthermore, present change in exchange rate policing and easing of capital control represents long-waited measures that could play a pivotal role in accelerating the recovery process. This change may unlock investment projects that have been put on hold, awaiting clarity and flexibility. while there may be short-term impacts on the sector as industry participants adjust to the new framework. We believe this is a critical step that will deliver significant long-term benefits. While conditions remain challenging, following the sharp decline our sector experienced last year, we are still in the early stages of recovery. and the industry continue to operate with synchrotic ideal capacity.

Speaker Change: <unk> long waits nishu.

Speaker Change: We'll play that people with alcohol in accelerating the recovery process.

Sergio Faifman: This change may unlock investment projects that have been put on hold, awaiting greater clarity and flexibility. While there might be short-term impact on the sector as industry participants adjust to the new framework, we believe this is a critical step that will deliver significant long-term benefits. While conditions remain challenging following the sharp decline our sector experienced last year, we are still in the early stage of recovery, and the industry continuing to operate with significant idle capacity. We remain focused on driving efficiency and controlling costs with the clear objective of safeguarding our profitability while continuing to deliver excellent products and service to our clients. We have high expectation for the future and confidence in our ability to capitalize on the opportunity ahead. This is the end of our prepared remarks. We are now to take questions. Operator, please open the call for questions.

Speaker Change: This change May look investment sort of shake that had been put on hold.

Whiting rating gladden deep our flexibility.

Speaker Change: While there may be short tons impact on the central industry participant access to the new framework. We believe this critical step that will deliver significant long term benefits.

Speaker Change: While conditions remained challenging following the sharp decline our sector experience last year, we are still in the early stage of recovery.

Speaker Change: And the heat study continuing to operate with Siem quitting idle capacity.

Sergio Faifman: We remain focused on driving efficiency and controlling costs with a clear objective of safeguarding our profitability while continuing to deliver excellent products and services to our clients. We have high expectations for the future and confidence in our ability to capitalize on the opportunity ahead.

Speaker Change: We remain focused on driving execution and controlling costs with the clear objective.

Speaker Change: Regarding our profitability, while continuing to deliver excellent products and service to our clients.

Speaker Change: With high Heights expansion for the future and confident in our ability to capitalize on the opportunity ahead.

Sergio Faifman: This is end of our prepared remark.

Speaker Change: This is end of our prepared remark you have now to take questions. Operator, Please open the call for questions.

Sergio Faifman: We are now to take question.

Operator: Operator, please open the court for question. Thanks.

Operator: Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star then one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star then two if you would like to remove your line. For participants using speaker equipment, it may be necessary to pick up your handset prior to pressing the keys. Once again, star then one on your telephone keypad. We also would like to ask that you please limit your questions to one question and one follow-up, please. If you have additional questions, you may re-queue for those questions, and they will be addressed. Also, please note that Mr. Sergio Faifman will be responding in Spanish immediately following the English translation. Please hold momentarily while we assemble our roster.

Speaker Change: Thank you.

Operator: We will now conduct a question and answer session. If you would like to ask a question, please press star then 1 on your telephone. Confirmation time will indicate that you're live. We would like to remove your line.

Speaker Change: We will now conduct a question and answer session.

Speaker Change: If you would like to ask a question. Please press Star then one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.

Speaker Change: Star then two.

Speaker Change: You lie.

Speaker Change: All participants using speaker equipment, it may be necessary to pick up your handset prior to pressing the case once again Star then one on your telephone keypad. We also would like to ask that you. Please limit your questions to one question and one follow up please finish.

Operator: Sponsored ADR We also would like to ask...

Operator: If you have additional questions, you may re-queue for those questions and they Also, please note that Mr. Sergio Faifman will be responding in Spanish immediately following the English translation.

Initial questions.

Speaker Change: There's questions you may re queue.

Speaker Change: And they will be addressed.

Speaker Change: Also please note that Mr. Samuel five mine will be responding to Spanish immediately following the English translation. Please hold momentarily.

Speaker Change: Our roster.

Speaker Change: And the first question comes from Alejandro <unk> with Morgan Stanley.

Alejandra Obregón: And the first question comes from Alejandra Obregon with Morgan. Hi, good morning Loma Negra team. Thank you for taking my question. Mine is perhaps on competitive dynamics. I was hoping if you could elaborate a little bit on what you're seeing on the ground, especially on market share dynamics, perhaps demand at the regional level that could perhaps explain why Loma is growing slightly below industry as we enter into 2025. And if there's any particular trend that you think is starting differently into 2025 in terms of competitive dynamics, thank you.

Operator: The first question comes from Alejandra Obregon with Morgan Stanley.

Yeah.

Speaker Change: Hi, Good morning. Thank you for taking my question mine is it's perhaps on competitive dynamics I was hoping if you could elaborate a little bit on what you're seeing on the ground, especially in marketshare dynamics, perhaps demand at the regional level that could perhaps explain why lam nice growing slightly below industry as we enter into 'twenty.

Alejandra Obregon: Hi, good morning, Loma Negra team. Thank you for taking my question. Mine is perhaps on competitive dynamics. I was hoping if you could elaborate a little bit on what you're seeing on the ground, especially on market share dynamics, perhaps demand at the regional level that could perhaps explain why Loma is growing slightly below industry as we enter into 2025, and if there's any particular trend that you think is starting differently into 2025 in terms of competitive dynamics. Thank you.

Speaker Change: 25, and if there is any particular trend that you think is it is it starting differently into 'twenty 'twenty five in terms of a.

Speaker Change: Competitive dynamics. Thank you.

Speaker Change: Yes.

Sergio Faifman: Hi Alejandra, thank you for your question. The truth is that the numbers of market share in the first quarter are according to or following our strategy. Nosotros en general trabajamos con una banda superior o inferior de market share en la cual estamos confortables con el mercado. In general we work with a range of market share and within that range we are comfortable. Estos cambios en los trimestres principalmente tienen que ver con varias razones. And these changes quarter to quarter could be regarding different reasons. En este primer quarter básicamente tiene que ver con un tema climático diferente entre las regiones.

Speaker Change: Hi, Alejandro Thank you for your question.

Sergio Faifman: Hi, Alejandra. Thank you for your question.

Marcos Gradin: The truth is that the numbers of market share in Q1 are according to or following our strategy. In general, we work with a range of market share, and within that range, we are comfortable. These changes quarter-to-quarter could be regarding different reasons. In this Q1, there were some climate issues that impacted differently in the different regions in Argentina.

Speaker Change: So no matter, who the market share the primo water pennon linear Gordon Conway.

Speaker Change: The truth is that the numbers of market share in.

Speaker Change: In the first quarter are according to or following our strategy.

Speaker Change: I don't think any of that.

Speaker Change: Now under superiority and video sharing app, while thermal comfortably Mercado <unk>.

Speaker Change: In general we work with a with a range of market share.

Speaker Change: And within that range, we are comfortable it can be often in lottery metric principal mandate. He didn't go vertical on combating Sunnis and these changes quarter to quarter could be regarding different reasons and I said it can be a matter of a quarter of magic I mean did you make a lot of corn.

Speaker Change: Climatically fit and then have a Q&A in this first quarter there was some the.

Sergio Faifman: In this first quarter there was some climate issues that impacted differently in the different regions in Argentina. Y el otro punto tiene que ver con la estrategia de precios. And the other point is regarding the price strategy. Donde básicamente con los volúmenes del primer trimestre sobre todo hasta mediados de marzo que fueron bajos, cualquier diferencia de volumen implica una diferencia en market share importante. And especially in the first month of the quarter with volumes that were not so strong, any difference in volumes can imply a difference in market share. Y donde lógicamente con un escenario con baja inflación, esos aumentos de precios demorados una semana o diez días impactan en volumen en ese mes.

Speaker Change: Climate issues that impacted differently and are in the different regions, Argentina, yellow Trapunto, Goa gone calyptra Dekalb ratios and the other are the other point is Ah.

[Company Representative] (Loma Negra): The other point is regarding the price strategy.

Speaker Change: Regarding the price strategy than the bus you come into your own control illuminated premarital today. So the total what Oh, the modest book afford them backwards, what you gotta be fit in surety volume, meaning <unk> got almost one of your financial models shared important.

Sergio Faifman: Donde básicamente con los volúmenes del Q1, sobre todo hasta mediados de marzo, que fueron bajos, cualquier diferencia de volumen implica una diferencia en market share importante.

[Company Representative] (Loma Negra): Where, especially in the first months of the quarter, with volumes that were not so strong, any difference in volumes can imply a difference in market share.

Speaker Change: And especially.

Speaker Change: In the first month of the quarter with volumes.

Speaker Change: We're not so so strong.

Speaker Change: Any difference in volumes, Ken can imply Uh huh.

Speaker Change: <unk> made a difference in market share it on the lucky come into corn scenario combined plus young so some mental hit ratios the modelo.

Sergio Faifman: Donde lógicamente con un escenario con baja inflación, esos aumentos de precios demorados one week o 10 days impactan en volumen en ese mes.

Speaker Change: Yes in part time involvement in SMS.

Sergio Faifman: And additionally with this situation of low inflation, if you have some delay in an adjustment of pricing, that could also impact temporarily the market share. Y volviendo al inicio de la pregunta, no es un punto que nos preocupe hoy el market share, está dentro de los márgenes que trabajamos. And going back to the first part of the question, it's not something that we are worried about.

[Company Representative] (Loma Negra): Additionally, with this situation of low inflation, if you have some delay in an adjustment on pricing, that could also impact temporarily this market share.

Speaker Change: And additionally, with our with this situation of low inflation and all these beauty lie if you have some delay in that.

Speaker Change: An adjustment on pricing on.

Speaker Change: That could also impact our.

Speaker Change: Temporarily.

Speaker Change: Our market share it will be in readiness for our Bloomington awesome I'm talking all snap lock opioid market. She had Italian tradeoffs cause I'm not going to kick it off and going back to the to the first part of the question. It's not something that we are worried about.

Sergio Faifman: Volviendo al inicio de la pregunta, no es un punto que nos preocupe hoy el market share, está dentro de los márgenes que trabajamos.

[Company Representative] (Loma Negra): Going back to the first part of the question, it's not something that we are worried about.

Alejandra Obregón: Thank you very much, that was very clear.

Speaker Change: Thank you very much and I was very clear.

Alejandra Obregon: Thank you very much. That was very clear.

Speaker Change: Yeah.

Operator: Thank you. The next question comes from Marcelo Furlan with Itaú.

Speaker Change: Got it.

Speaker Change: Thank you and the next question comes from a solo Fairlawn with Ito.

Marcelo: Thank you and the next question comes from Marcelo for Elan with Itaewon. Hi everyone, thanks for taking my question here. Guys, my first question is a follow-up from Alejandro's one. It's related to the top line going forward. So, I'd like to understand in this competitive scenario, how are guys seeing the pricing power here going forward? So, I could expect the level that pricing was done, posted in the first year, which was similar to the average of 2024, to continue going forward. So, I could expect no prices that range from $110 to $115 per ton going forward.

Speaker Change: Hi, Brian Thanks for taking my question here Gosh.

Marcelo Furlan: Hi, everyone. Thanks for taking my question here. Guys, my first question is a follow-up from Alejandra's one, is related to top line going forward. I'd like to understand, in this competitive scenario, how are you guys seeing the pricing power here going forward? Could expect the level that pricing per ton posted in Q1, which was similar to the average of 2024, to continue going forward. Could expect prices that range from $110 to $115 per ton going forward? This is my follow-up. My question here, guys, is related to cement volumes for this year. What range of cement volumes are you guys expecting for this year, as you have seen these strong volumes being posted by AFCP of 28% increase in April? I'd like to understand what range are you guys expecting for your budget for this year?

Speaker Change: My first question as a follow up for hundreds one is related to <unk>.

Speaker Change: To topline going forward, so I'd like to understand in this competitive scenario.

Speaker Change: I see the pricing a ball we're here going forward. So I would expect it to do.

Speaker Change: The average lateral that pricing work done.

Speaker Change: Bolstered in the first SKU or in the afternoon, which was similar to the average of 204 to continuing going forward. So could expect no prices that range from 110 $115 per ton going forward. So just as my follow up and my question here guys is related to.

Marcelo: So, this is my follow-up.

Marcelo: And my question here, guys, is related to cement volumes for this year. So, what range of cement volumes are you guys expecting? For this year as you have seen this is strong Volume has been posted by FCP of 28% increase in April So I'd like to understand what brand are you guys expecting for your budget for this year could expect no Maybe a range from 15 to 20 percent increase on a year-to-year basis, so it would be helpful as well.

Speaker Change: Cement volumes for four days a year, so what what rain range of summit voters are going to expecting.

Speaker Change: Oh for it this year as you can see there's a stroke.

Speaker Change: ER volumes will be bolstered by FCB of 28% increase the neighbor. So I'd like to understand what brands are you guys expecting for your budgets for this year could expect no maybe a range from 15% to 20% inquiries on a year over year basis. So it would be help us Ralph Thank you.

Marcelo Furlan: Could expect maybe a range from 15% to 20% increase on a year over year base, so it would be helpful as well. Thank you.

Sergio Faifman: Thank you Hi Marcelo, thank you for the question. Yes, the truth is that the prices that we are today, as I said, are around 115 dollars. Yes, pricing for this first queue, it's around 115. It's a price that is sustainable and if Argentine costs keep going up, it could also go up as well. In the Argentine context, we come from a rebalancing between all costs and some still need to adjust and maybe go down or up and that can impact on the cost. We also believe that in this re-shifting of the Argentine economy, there are some costs that may need further adjustments, some going up and maybe some others go down, and this could also impact in our total internal costs.

Marcelo: Hi, Marcelo Thank you for the question.

Sergio Faifman: Hi, Marcelo. Thank you for your question. Sí, la verdad que los precios que estamos hoy, como decía, están en un torno de ARS 115.

Speaker Change: I see.

Speaker Change: Okay. So you can only see happening internally seem took into what it is.

Speaker Change: Yes pricing for this first Q, it's around 115.

[Company Representative] (Loma Negra): Yes. Pricing for this Q1, it's around ARS 115.

Sergio Faifman: Es un precio que es sostenible. Posiblemente, si el costo argentino se sigue incrementando, pueda seguir aumentando.

Speaker Change: But if you're okay, well she lamented almost CCL Costa Rican Dino says he ingram in tandem.

Speaker Change: So you don't Wanna Danville, it's a price that is sustainable and east.

[Company Representative] (Loma Negra): It's a price that is sustainable, and if Argentine costs keep going up, it could also go up as well.

Speaker Change: If our Argentine costs keep going up it could also what box rollout.

Sergio Faifman: Por otro lado, creemos que hay costos que todavía necesitan acomodarse dentro del contexto argentino. Venimos de un rebalanceo entre todos los costos y algunos todavía necesitan ajustarse, quizás para abajo o para arriba, y eso puede impactar en el costo.

Speaker Change: Rollout gray market, Kate got talking to Oems, if he doesn't come without a suit didn't really the contactor and Dino anymore.

Speaker Change: They wouldn't rebalancing in the total quarters you'll.

Speaker Change: With that I think he's got a lot more battery you used to blend that in nickel.

[Company Representative] (Loma Negra): We also believe that in this reshifting of the Argentine economy, there are some costs that may need further adjustments, some going up and maybe some others go down. This could also impact in our total internal costs.

Speaker Change: We also believe that in this re shifting of the of the Argentina. The Argentine economy. There are some costs that may need.

Speaker Change: Just months, some some going up and maybe some others go down.

Speaker Change: And this could also impacting in our total internal costs looking at them and they go into effect that they had but it's your thought I'd ask for now that one contractor of course, depending on locomotive financial quarters by city level shown that ratios and as our pricing strategy is it's tied on one happened with our internal costs. This these foundations.

Sergio Faifman: Lógicamente, como nuestra estrategia de precio está relacionada con nuestros costos, dependiendo cómo evolucionen esos costos, va a ser la evolución de precios.

Sergio Faifman: And as our pricing strategy is tied on what happened with our internal costs, these variations could also have some impact on pricing. And that's more or less what happened this year with pricing moving with a better dynamic than our internal costs.

[Company Representative] (Loma Negra): As our pricing strategy is tied on what happened with our internal costs, these variations could also have some impact on pricing.

Speaker Change: Could also have some some impacting on pricing <unk> you Daniel on the elementary but issue is superior in our commentary two years from a separate deal and make what Adam throw them into a model and that's a more or less what's happened this year with the <unk>.

Sergio Faifman: Que es lo mismo que sucedió este año, donde el aumento de precio es superior a nuestro aumento de costo y eso nos ha permitido mejorar nuestro margen.

[Company Representative] (Loma Negra): That's more or less what happened this year with pricing moving with a better dynamic than our internal costs.

Speaker Change: With pricing moving.

Speaker Change: With that with a better dynamic than our internal costs.

Sergio Faifman: Respecto de volumen, yo creo que hay un escenario que fue hasta mediados de marzo. Regarding volumes, we believe that there is one scenario until the first half of March, donde todo febrero y la primera quincena de marzo estuvo muy afectada por lluvias, después de ahí se ve una recuperación volviendo a los niveles de volúmenes de fin del año pasado. And after that, we saw a recovery moving along the average volumes of the last part of 2024. Y en abril y mayo se nota aún un poco de crecimiento respecto a los volúmenes de fin del año pasado.

Sergio Faifman: Respecto de volumen, creo que hay un escenario que fue hasta mediados de marzo.

Speaker Change: Pegged to LIBOR lumen age group.

Speaker Change: Even a scenario where maybe yellow the milestone.

[Company Representative] (Loma Negra): Regarding volumes, we believe that there is one scenario until H1 of March.

Speaker Change: Guarding volumes, we believe that there are there is one.

Speaker Change: One salary until the.

Speaker Change: The first half of March.

Sergio Faifman: Donde todo febrero y la primera quincena de marzo estuvo muy afectada por lluvias.

Speaker Change: Total food aid or elaborate American C&I Marcia to them, we have picked up or shall we yes.

[Company Representative] (Loma Negra): Where especially February and the first half of March was very affected by weather.

Speaker Change: We're especially February and the first half of March was that maybe affected by like weather.

Sergio Faifman: Después de ahí se ve una recuperación volviendo a los niveles de volúmenes de fin del año pasado.

So we will not at all but a few of them will be in the liability. They will illuminate a in the land you bought hallow and after that yeah, we saw a recovery.

[Company Representative] (Loma Negra): After that, we saw a recovery moving along the average volumes of the last part of 2024.

Speaker Change: Along the the average volumes of the of the latter part of 'twenty 'twenty. Four you know really you Marshall genotype, one populated ischemia and they're a big bullish of illuminate and and in April and May we are seeing some improvement above. This this also improved volumes.

Sergio Faifman: En abril y mayo se nota aún un poco de crecimiento respecto de esos volúmenes.

Sergio Faifman: And in April and May we are seeing some improvement above these also improved volumes of late March. Lógicamente el año pasado el crecimiento se dio más en el segundo semestre, por eso este crecimiento en abril del 28% respecto del año pasado. In the last year, the recovery was more concentrated in the second half of the year. So that's why this jump in the year in comparison in April. It's possible that in other months we'll see smaller growths at 28%, but we're still optimistic about the volume and thinking about a two-digit growth for the year.

[Company Representative] (Loma Negra): In April and May, we are seeing some improvement above this also improved volumes of late March.

Speaker Change: Of late March.

Sergio Faifman: Lógicamente, el año pasado el crecimiento se dio más en el segundo semestre, por eso este crecimiento en abril del 28 % respecto al año pasado.

Speaker Change: Hey, Daniel pathology, Ibrahimi Intercity Ole Martin as soon as it met the Polish oil <unk> Hello.

[Company Representative] (Loma Negra): In the last year, the recovery was more concentrated in H2 of the year. That's why this jump in the year in comparison in April.

Speaker Change: In the last year that the recovery was more concentrated in the second half of the year.

Speaker Change: So that's why this this jump between day comparison in April.

Sergio Faifman: Es posible que otros meses veamos crecimientos menores a ese 28 %, pero seguimos siendo optimistas con el volumen.

Speaker Change: Lucky automated he almost cause she mentors minority Spicer, India, two horizontal <unk>, mostly in the optimistic when you what do you mean E. Ben Sunday Nobody is immune to the there's all he dose but up and alike. So that is that's why its possible that going forward, we might see some some lower <unk>.

[Company Representative] (Loma Negra): Y pensando en un crecimiento de dos dígitos para el año. That's why it's possible that going forward, we might see some lower increases in the year-on-year comparison. We are optimistic, and we maintain our expectations of growing on 2 digits in 2025.

Sergio Faifman: So that's why it's possible that going forward we might see some lower increases in the year-on-year in comparison, but we are optimistic and we maintain our expectations of growing on two digits in 2025.

Speaker Change: Greece is in the in the year on year comparison, but we are optimistic and we maintain our our expectations of rolling them onto the ships.

Speaker Change: 2025.

Marcelo: Okay, thank you so much, guys.

Speaker Change: Okay. Thank you so much Chris.

Marcelo Furlan: Okay. Thank you so much, guys.

[Company Representative] (Loma Negra): De nada.

Speaker Change: Thank you.

Operator: Thank you. The next question comes from Daniel Rojas with Bank of America.

Daniel Rojas: Thank you and the next question comes from Daniel Rojas with Bank of America.

Daniel Rojas: And the next question comes from Daniel Rojas with Bank of America. Good morning, gentlemen. Thank you for taking my question. I was hoping to drill down a bit more on volume outlook. If we see all the headlines regarding the RIGI project and how this is going to intensify construction and therefore cement volumes, I was curious if you're starting to see orders and you can comment on your backlog regarding potential cement demand going from this project. And on the flip side, also discuss a bit more on mortgages and how this is also or might be pushing demand in the housing sector.

Daniel Rojas: Good morning, gentlemen, thank you for taking my question I was hoping to drill down a bit more on volume outlook.

Daniel Rojas: Good morning, gentlemen. Thank you for taking my question. I was hoping to drill down a bit more on volume outlook. If we see all the headlines regarding the RIGI projects and how this is going to incentivize construction and therefore cement volumes. I was curious if you're starting to see orders, and you can comment on your backlog regarding potential cement demand going forward from these projects. On the flip side, also discuss a bit more on mortgages and how this is also or might be pushing demand in the housing sector. I'm just trying to get a sense if we could split demand by sector to see where we can see opportunities or weakness. Thank you.

Daniel Rojas: We feel the headlines regarding the DG projects and how this is going to be tempted by the cause.

Daniel Rojas: Construction and therefore cement volumes I was curious if you're starting to see orders you can comment on your backlog regarding potential cement demand going forward from these projects and on the flipside also discuss a bit more on on mortgages and how did he also or might be pushing demand.

Daniel Rojas: I'm just trying to get a sense if we could split demand by sector to see where we can see opportunities or weakness. Thank you.

Daniel Rojas: The housing sector I'm, just trying to get a sense, if we could split demand by sector to see where we can see opportunities or we can thank you.

Daniel Rojas: Hi, Thank you for the question.

Sergio Faifman: Hi Daniel, thank you for your question. The truth is that the prospects are good in terms of projections. The reality is that the forecasts are positive and we are optimistic about them.

[Company Representative] (Loma Negra): Hi, Daniel. Thank you for the question. La verdad que las perspectivas son buenas en cuanto a las proyecciones. The reality is that the forecasts are positive, and we are optimistic about them. En nuestra industria es muy difícil tener alguna obra puntual o algunas obras que van a mover la industria en su conjunto en volumen. In our industry, it is difficult to have just one or two works that per se are going to weigh on the total volumes. Ninguna obra representa un porcentaje importante de volumen mensual para la industria ni para nosotros. There is no work that could represent a significant amount of volume, not for us and not for the industry. Lo que sí estamos viendo, por ejemplo, en el canal de hormigón, varias licitaciones para ahora, para empezar los próximos meses.

Daniel Rojas: Patrick do you have swung from boy nothing concrete I push a Q&A.

Daniel Rojas:

Daniel Rojas: The reality is that the forecasts are are positive and we are optimistic about them in with the news today, if <unk> done at a I don't know what happened why Lou I'm not sure what I gave you and I'm. A later line two three unusual onetime alumina.

Sergio Faifman: En nuestra industria es muy difícil tener alguna obra puntual o algunas obras que van a mover la industria en su conjunto en volumen. In our industry it's difficult to have just one or two works that per se are going to weight on the total volumes. Ninguna obra representa un porcentaje importante de volumen mensual para la industria ni para nosotros. There is no work that could represent a significant amount of volume, not for us and not for the industry. Lo que sí estamos viendo, por ejemplo, en el canal de hormigón, varias licitaciones para ahora, para empezar los próximos meses.

Our industry is difficult due to kept some.

Daniel Rojas: One or two works that per se are going to.

Daniel Rojas: The weight on the on the total volumes now over that represent important that's important the they were looming maybe swap out but it induced anybody also draws there is no work that are that could represent a significant amount of volume.

Daniel Rojas: Not for us not for the industry to go see a.

Speaker Change: Tom will handle port Kembla consolidated you ought to be growing body at least hit US you only put out.

Speaker Change: What happened in the shallow procurement message, what we are seeing especially in the coupling segment is a a lot of tenders that are moving forward on.

Sergio Faifman: What we are seeing, especially in the concrete segment, is a lot of tenders that are moving forward and for works expecting to start in the second semester. Algunas tienen que ver con energía eólica, otras tienen que ver con algunas obras públicas que también están empezando a aparecer en algunas provincias y municipios. Some of those are linked with eolic energy projects and some of those are linked with public works. Y lo otro que estamos viendo también son bastantes proyectos de minería que diría que están prácticamente aprobados para empezar y por ahí están esperando el momento en el cual arrancar.

[Company Representative] (Loma Negra): What we are seeing, especially in the concrete segment, is a lot of tenders that are moving forward and for works expecting to start in the second semester. Algunas tienen que ver con energía eólica, otras tienen que ver con algunas obras públicas que también están empezando a aparecer en algunas provincias y municipios. Some of those are linked with eolic energy projects, some of those are linked with public works. Y lo otro que estamos viendo también son bastantes proyectos de minería que diría que están prácticamente aprobados para empezar, y por ahí están esperando el momento en el cual arrancar. We also have some projects linked to mining that are almost ready to start and waiting for the last stretch in order to start.

Speaker Change: And for works expecting to start in the second semester.

Speaker Change: You didn't go vertical in Colorado, I already got well do that he didn't get right I saw that poorly Crockett I'm being done in <unk>, but he said and I won't put a interesting when she feels some of those are linked with ER with.

Speaker Change: Energy projects.

Speaker Change: And some of those are all linked with our with public works you load it up with some of your anatomy and they push it towards the media.

Speaker Change: Cause if you hadn't done practically ended up with a lot of that in the Saudi put atonic blondell momentum right now.

Sergio Faifman: And we also have some projects linked to mining that are almost ready to start and waiting for the last stretch in order to start. Y varios de ellos en procesos ya de licitación de apertura de caminos y demás que deberían acontecer en el segundo semestre del año. Many of these projects are starting to prepare, maybe open the roads. and receiving quotes, so they are ready to start in the second semester.

Speaker Change: We are also we also have some projects linked to mining that are almost ready to start in and waiting for the for the for the last stretch in order to start.

[Company Representative] (Loma Negra): Varios de ellos en proceso ya de licitación de apertura de caminos y demás, que deberían acontecer en el H2 del año. Many of these projects are starting to prepare, maybe open the roads and receiving quotes. They are ready to start in the H2. En cuanto al futuro, es que diría que lo que más retrasado todavía viene es la parte de granel y hormigón, que todavía esa parte le falta recuperar para los próximos meses. What is still lagging is the part of bulk cement and concrete, which should start in the upcoming months.

Speaker Change: The issues in Brazil.

Speaker Change: It actually on the the two that you think I mean, if you're moschate cause anybody in a contest heading into say window submit today that many many of these projects are starting to prepare maybe you'll open a whole bunch of roads and Hum.

Speaker Change: Receiving quotes.

Speaker Change: So they are ready to start in the second semester.

Sergio Faifman: En cuanto al futuro, yo diría que lo que más retrasado todavía viene es la parte de granel y hormigón que todavía esa parte le falta recuperar para los próximos meses. What is still lagging is the part of bulk cement and concrete, which should start in the upcoming months.

Speaker Change: In one two or three they're going to look at my trust, how do I E N. A S. A laboratory that I nail youll get all yes.

Speaker Change: Yes, apparently felt that it would be.

Speaker Change: It out about it approaching with me as well these are still.

Speaker Change: Still lagging yeah, it's the part of all of our.

Speaker Change: Bulk cement and concrete.

Speaker Change: Which should start in the coming months.

Speaker Change: Yeah.

Speaker Change: Thank you and if I may follow up if.

Daniel Rojas: Thank you.

Daniel Rojas: Thank you. If I may follow up, if I remember correctly, and please correct me if I'm wrong, you were planning a turbine program for Loma Negra. Is this still the case? Is this already in the works? Any update that you can give us?

Daniel Rojas: And if I may follow up, if I remember correctly, and correct me if I'm wrong, you were planning a turbine program for La Mali. Is this still the case? already in the works, any update you can give.

Speaker Change: If I remember correctly and please correct me if I'm wrong you.

Speaker Change: You were planning a turbine program for Emily is it still the case.

Speaker Change: These are already in the works any update you can give us.

Sergio Faifman: For now, we don't have any progress.

Speaker Change: Put up what I wouldn't want anyone need new and when atmosphere.

[Company Representative] (Loma Negra): Por ahora no tenemos ningún avance. As for now, we don't have any updates on that. Tenemos todas las pruebas de viento y demás que dan para hacer un parque eólico y, de hecho, hay algunos parques haciéndose en la misma zona. We do have the tests of the winds in Loma Linda, and there are some other parks within the area. Un paso en esa línea similar, pero no de hacer un parque eólico, fue también avanzar en la firma de un contrato de energía eólica. A step in that direction, but not through making a park, was signing contracts of renewable energy. El cual nos permite seguir aumentando nuestra energía eólica, mejorando nuestros costos y avanzando en nuestra estrategia de sostenibilidad.

Sergio Faifman: As for now, we don't have any updates on that. We do have the test of the winds in Lamalí, and there are some other parks within the area.

Speaker Change: As for now we don't have any any update on that the animals toilet, Peru I E. The re enter your market.

Speaker Change: But he already great H y ear.

Speaker Change: Case as you understand I mean muscle now we have we do have is the ease of tests of the wins in and he can laterally and there are some other parks within the area.

Sergio Faifman: A step in that direction, but not through making a park, was signing contracts of renewable energy. That allowed us to increment our usage of renewable energy, not only improving our cost structure, but also going the direction of our strategy in terms of sustainability. And the price of that contract is similar to the price that we will get making our own park.

Speaker Change: One is how linear similarity I don't know the assay to them.

Speaker Change: The article Tambien outside in the feed and my own contract you already got.

Speaker Change: A step into duration.

Speaker Change: Not a not through to making apart for signing a contract of renewable energy.

Speaker Change: But I mean, just to get them in tandem with that and with Manhattan I already got a megawatt underneath Rocco Toshi yamana something what they thought they had it. So can you believe that that alone allowed us to increment our usage of our renewal energy not only improving our cost structure, but also go into.

[Company Representative] (Loma Negra): That allowed us to increment our usage of renewable energy, not only improving our cost structure, but also go in the direction of our strategy in terms of sustainability. Y el precio de ese contrato es prácticamente similar a haber hecho, digamos, un parque eólico del punto de vista de rentabilidad que precisa un parque eólico. The price of that contract is similar to the price that we will get making our own park

Speaker Change: The direction of our strategy in terms of sustainability yield pressure. So you can track the practical maintain simulator a read surety almost going on particularly Oracle they'll tell you that and I believe that game because they see somebody already.

Speaker Change: And the price of that contract is similar to the to the price that we will get making our own our own book.

Speaker Change: Yeah.

Sergio Faifman: Thank you, gentlemen. You're welcome. Thank you.

Speaker Change: Thank you gentlemen.

Daniel Rojas: Thank you, gentlemen.

Speaker Change: It works for me.

[Company Representative] (Loma Negra): You're welcome.

Speaker Change: Thank you and this concludes our question and answer session I would like to turn the conference back over how long for any closing remarks.

Operator: Thank you. This concludes our question and answer session. I would like to turn the conference back over to Diego Jalón for any closing remarks. Mr. Jalón, do you have any closing remarks?

Operator: And this concludes our question and answer session.

Diego Jalon: I would like to turn the conference back over to Diego Jalon for any closing... Sir, how long? Do you have any closing remarks? Thank you very much for attending the call today. As always, we are here to, if you have any other questions or concerns, we are here to attend them. And we are looking forward to meet again in our next call. Thank you.

Speaker Change: Yeah.

Speaker Change: Mr. How long do you have any closing remarks.

Speaker Change: Thank you very much for attending the call today as always we are here to if you have any other questions on concern we adhere to a tandem and we are looking forward.

Diego Jalón: Thank you very much for attending the call today. As always, if you have any other questions or concerns, we are here to attend them, and we are looking forward to meet again in our next call. Thank you.

Speaker Change: To meet you again in our next call. Thank you.

Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: Thank you. The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation.

Speaker Change: Okay.

Speaker Change: [music].