Loma Negra Compañía Industrial Argentina Sociedad Anónima Q1 FY2024 earnings call

• Started the year in a challenging environment with significant drop in activity due to transition to new government, tabulation plans, and adverse weather. - Loma focused on strengths like leadership, operational flexibility, and efficiency. - Made important investments in capacity contributing to results through efficiencies. - Focused on cash management and resuming CapEx programs, confident in embracing upcoming positive economic cycle.

Cement segment: Top line stood at ARS 114.9 billion, with cement volumes down 31%. The cement, masonry segment and lime segment was down 25.4% with volumes contracting by 31.3% year-on-year. Adjusted EBITDA margin stood at 26.1%, contracting 356 basis points. Concrete segment: Revenues decreased by 41% in the quarter due to the 41.7% decrease in dispatches. Adjusted EBITDA margin contracted to minus 10%. Aggregates segment: Showed a decrease of 40.5% with sales volumes down 38.7%, adjusted EBITDA margin contracted to minus 1.1% from 17.6% in the first quarter of 2023. Railroad segment: Revenues decreased by 19.5% in the quarter. Transported volumes were down by 28.1%, but adjusted EBITDA margin expanded to 0.4% in the first quarter from negative 1.2% a year ago.

• Anticipate gradual recovery in upcoming quarters with macro stabilization (decreasing inflation, FX normalization). - Omnibus bill passage and public works agreements could boost activity. - Potential improvement in energy inputs in the second half of the year to enhance results.

• Significant drop in construction activity due to transition to new government and tabulation plans. - Adverse weather conditions affecting operations, like storm in December impacting chemical plants. - Volatility in economic variables affecting demand in the construction industry.

Q: Comment on maintenance during winter, comparing to last year, duration and capacity of maintenance.

A: Nowadays capacity is more than 50%, halt in winter will maintain similar schedule, using 4 months for planned maintenance.

Q: Main drivers for demand in coming months with National Public Works and low FX gap.

A: Macro stabilization (FX, inflation) recovery, mortgage loan offerings, omnibus bill, provincial public works, and investments as drivers.

Q: Pricing environment and industry response.

A: Expect profitability to remain more or less same, optimistic for volume improvement in next few quarters, potential gains in energy inputs in second half.