Cementos Pacasmayo SAA Q3 FY2024 earnings call

• This quarter delivered solid margins, EBITDA, and profitability. Sales volumes recovered sequentially but were slightly behind Q3 2023. Achieved record consolidated EBITDA of PEN154.6 million, up nearly 20% year-over-year, and net income up 35.9% due to operational efficiencies in clinker production and raw material sales. - Undertaken relevant projects: designed an innovative riverbank protection solution for Northern Peru using cement and local materials, and collaborated with Newmont and Bexel Corporation on a water treatment plant at Minera Yanacocha. - Implemented AI strategy with multiphase approach, high employee engagement (86% participation, 84% satisfaction), and seven successful pilot projects, aiming to become data and AI-driven company by 2025.

Cement sales decreased 2.7% this quarter and 3.6% during the first nine months of 2023. Concrete, pavement and mortar sales increased 25.6% this quarter and 57.9% during the first 9 months of 2024 compared to the same periods in 2023. Sales of precast materials during the third quarter of 2024 and the nine months of 2024 increased 10.4% and 31% compared to the third quarter and first nine months of 2023, respectively.

• Expect EBITDA margin for 2025 to be a little bit over 29%. - Anticipate increased sales volumes in 2025 compared to 2024, driven by government spending and public projects like Chavimochic phases.

• Forward-looking statements are subject to risks and uncertainties detailed in the Company's regulatory filings.

Q: Regarding cement volumes, saw 16% QoQ increase, and outlook for 2025; also on margins.

A: Volumes expected to increase in 2025 due to government spending and public projects; margins should remain due to operational efficiencies.

Q: How long will Yanacocha project impact concrete dispatches and replace Piura airport project volume?

A: Project lasts ~18 months, volume similar to Piura airport project.

Q: Expectations for 2025 volume dynamics?

A: Expect increase in volumes compared to 2024.

Q: Drivers for self-construction growth?

A: Employment from fishing and agriculture.

Q: Price mix improvement in 2025?

A: Cautious on price hikes, focus on brand, profitability, and market share.

Q: EBITDA margin guidance for 2025?

A: A little bit over 29%.

Q: Main driver for this quarter's gross margin improvement?

A: Operational efficiency, new kiln running well, and lower coal costs.

Q: Long-term expected margins for concrete and prefabricated products?

A: Profits depend on project size; margins should increase with public and private investments.