Cementos Pacasmayo S.A.A. Q4 FY2025 earnings call

• Holcim's acquisition of Inversiones Aspi's 50.01% stake in Pacasmayo is a significant milestone, pending regulatory approvals and expected to close in upcoming months. - The company saw strong sales volume momentum in 2025, with an 8.2% Q4 decrease vs prior year but 7.2% full year increase, driven by infrastructure demand and self-construction. - Achieved 3 star recognition from Peru's MINAM for reduced greenhouse gas emissions, with Rioja plant earning recognition for 2024 emissions. - Tenth consecutive year in Merco ESG responsibility ranking, ninth overall in Peru's most responsible companies.

In the fourth quarter of 2025, cement sales saw a notable increase of 30.6% year-over-year, driven by robust demand for fast cement in the construction sector. For the full year 2025, cement sales increased by 8.7% compared to 2024, linked to the strength of the agro, industrial, and fishing sectors in the North. Concrete, pavement, and mortar sales decreased by 25.1% in Q4 2025 year-over-year due to the Motupe riverbank defense project being on standby, but rose by 6.3% for the full year 2025 due to higher volumes for infrastructure projects. Precast materials sales decreased by 16% in Q4 2025 compared to Q4 2024 mainly due to lower sales volume and a high comparative base, but increased by 3% for the full year 2025 driven by higher demand from the public sector. Revenues in Q4 2025 increased by 6.2% year-over-year to PEN 559.5 million. Full year 2025 revenues grew by 7% compared to 2024. EBITDA in Q4 2025 excluding one-off expenses was $158.7 million, an 11.4% increase. Full year 2025 EBITDA was PEN 594.2 million, a 6.4% increase excluding one-off expenses.

• Optimistic about 2026 volume growth due to expected strong volumes. - Anticipates EBITDA margins to remain stable with potential increase from efficiencies like energy-saving projects in the second semester.

• Regulatory approval for the Holcim transaction is pending, but management states the process is smooth and no major risks are foreseen.

Q: Could you please provide more details about the transaction with Holcim? Which steps are planning to close the transaction? Is there any risk we should be aware of? And how do you feel about the regulatory approvals for the deal?

A: Holcim has acquired Inversiones Aspi controlling stake in Pacasmayo. Waiting for regulatory approval, process is smooth, expected in coming months, and no major risks foreseen Q: Please, could you explain why your acquisition-related expenses are assumed by Pacasmayo and why are they so high?

A: Expenses related to change of control and contractual obligations, part to be assumed by Holcim, approved by board Q: Could you help us understand why Pacasmayo had to recognize the PEN 77 billion to PEN 80 million in expenses related to the Holcim transaction...

A: Due to contractual obligations for change of control, part of transaction, approved by board, and part will be covered by the deal price Q: Given the pause of the Motupe River Bank protection project and its impact on volumes and margins in the fourth quarter of 2025. Should we expect similar project-related disruptions or margin pressures in the coming quarters? Additionally, how could this affect concrete pavements and mortar performance and overall margins looking into 2026?

A: Motupe project on standby affected Q4 2025, but expected to restart; optimistic about 2026 volume growth and EBITDA margins due to efficiencies