REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
LOMA NEGRA CORPORATION |
||
(Translation of Registrant’s name into English |
(Jurisdiction of Incorporation or organization) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
* | Not for trading, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the New York Stock Exchange. |
Large accelerated filer | ☐ | ☒ | Non-accelerated filer |
☐ | Emerging growth company | |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP |
Accounting Standards Board ☒ |
Other ☐ |
i | ||||||
vi | ||||||
PART I | 1 | |||||
ITEM 1. | 1 | |||||
A. |
1 | |||||
B. |
1 | |||||
C. |
1 | |||||
ITEM 2. | 1 | |||||
A. |
1 | |||||
B. |
1 | |||||
ITEM 3. | 1 | |||||
A. |
1 | |||||
B. |
1 | |||||
C. |
1 | |||||
D. |
1 | |||||
ITEM 4. | 30 | |||||
A. |
30 | |||||
B. |
31 | |||||
C. |
49 | |||||
D. |
49 | |||||
ITEM 4A. | 54 | |||||
ITEM 5. | 54 | |||||
A. |
55 | |||||
B. |
82 | |||||
C. |
86 | |||||
D. |
86 | |||||
E. |
86 | |||||
ITEM 6. | 86 | |||||
A. |
86 | |||||
B. |
91 | |||||
C. |
93 | |||||
D. |
96 | |||||
E. |
96 | |||||
ITEM 7. | 97 | |||||
A. |
97 | |||||
B. |
98 | |||||
C. |
99 | |||||
ITEM 8. | 99 | |||||
A. |
99 | |||||
B. |
104 | |||||
ITEM 9. | 104 | |||||
A. |
104 | |||||
B. |
104 | |||||
C. |
104 | |||||
D. |
104 | |||||
E. |
104 | |||||
F. |
104 | |||||
ITEM 10. | 104 | |||||
A. |
104 | |||||
B. |
104 | |||||
C. |
106 |
D. |
106 | |||
E. |
109 | |||
F. |
115 | |||
G. |
115 | |||
H. |
115 | |||
I. |
115 | |||
ITEM 11. | 115 | |||
ITEM 12. | 116 | |||
A. |
116 | |||
B. |
116 | |||
C. |
116 | |||
D. |
116 | |||
PART II | 118 | |||
ITEM 13. | 118 | |||
ITEM 14. | 118 | |||
A. |
118 | |||
B. |
118 | |||
C. |
118 | |||
D. |
118 | |||
E. |
118 | |||
ITEM 15. | 118 | |||
ITEM 16. | 119 | |||
ITEM 16A. | 119 | |||
ITEM 16B. | 119 | |||
ITEM 16C. | 119 | |||
ITEM 16D. | 120 | |||
ITEM 16F. | 122 | |||
ITEM 16G. | 122 | |||
ITEM 16H. | 123 | |||
ITEM 16I. | 123 | |||
123 | ||||
ITEM 17. | 123 | |||
123 | ||||
ITEM 18. | 123 | |||
123 | ||||
ITEM 19. | 123 |
• | all references to “Loma Negra”, “our company”, “we”, “our”, “ours”, and “us”, or similar terms are to the registrant, Loma Negra Compañía Industrial Argentina Sociedad Anónima, a corporation organized as a Compa ñ í a Industrial Argentina Sociedad An ó nima |
• | all references to “our controlling shareholder” or to the “InterCement Group” are to InterCement Participações S.A. and its subsidiaries; |
• | all references to the “InterCement Brasil” are to InterCement Brasil S.A.; |
• | all references to “Yguazú Cementos” are to Yguazú Cementos S.A.; |
• | all references to “Cofesur” are to Cofesur S.A.U.; |
• | all references to “Ferrosur” or “Ferrosur Roca” are to Ferrosur Roca S.A.; |
• | all references to “Recycomb” are to Recycomb S.A.U.; |
• | all references to “Argentina” are to the Republic of Argentina; |
• | all references to “Paraguay” are to the Republic of Paraguay; |
• | all references to the “Argentine government” or the “government” are to the federal government of Argentina; |
• | all references to the “BCRA” or “Argentine Central Bank” are to the Argentine Central Bank ( Banco Central de la Rep ú blica Argentina) |
• | all references to “CNV” refers to the Argentine securities regulator (Comisión Nacional de Valores); |
• | all references to “U.S. dollars”, “dollars” or “US$” are to U.S. dollars; |
• | all references to the “peso ” , , |
• | all references to the “ Guaran í Guaran í es guaran í |
• | all references to “IFRS” are to International Financial Reporting Standards, as issued by the International Accounting Standards Board, or the IASB; and |
• | all references to “AFCP” are to the Argentine National Association of Portland Cement Producers ( Asociaci ó n de Fabricantes de Cementos Portland |
• | general economic, political and business conditions, in Argentina, including government policies; |
• | inflation, fiscal deficit, the devaluation of the peso and exchange rate risks in Argentina; |
• | restrictions on the ability to exchange peso into foreign currencies and transfer funds abroad; |
• | implementation of exchange controls and restrictions on capital inflows that limit credit availability; |
• | government intervention in the Argentine economy; |
• | developments in markets outside of Argentina that may indirectly affect the Argentine economy; |
• | the duration and severity of the 2019 novel strain of coronavirus disease (SARS-CoV-2, “COVID-19”) outbreak and its impacts on our business and on the global and Argentine economy; |
• | the cyclical nature of the cement industry; |
• | the competitive nature of the industry in which we operate; |
• | construction activity levels, particularly in the markets in which we operate; |
• | price volatility of the raw materials we sell or purchase to use in our business; |
• | the cost and availability of financing; |
• | energy costs and shortages of electricity and government responses to them; |
• | political instability or armed conflict in oil and natural gas producing regions, including the conflict in Ukraine, which increases energy costs; |
• | transportation, storage and distribution costs; |
• | our direction and future operation and implementation of our principal operating strategies; |
• | the implementation of our financing strategy and capital expenditure plans; |
• | our level of capitalization, including the levels of our indebtedness and overall leverage; |
• | legal and administrative proceedings to which we are or become party (individually or jointly with our controlling shareholder); |
• | existing and future governmental regulations, and our compliance therewith, including tax, labor, antitrust, pension and environmental laws and regulations in Argentina; |
• | the estimation mistakes about the state of our mines and mineral reserves. |
• | operational risks and insurance costs; |
• | private investment and public spending in construction projects; |
• | early termination of our public concessions; |
• | industry trends and the general level of demand for, and change in the market prices of, our products and services; |
• | market volatility and fluctuation of the price of our ADS; and |
• | ongoing costs and risks associated with compliance with the Sarbanes-Oxley Act. |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
A. |
Directors and Senior Management |
B. |
Advisers |
C. |
Auditors |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
A. |
Offer Statistics |
B. |
Method and Expected Timetable |
ITEM 3. |
KEY INFORMATION |
A. |
[Reserved] |
B. |
Capitalization and Indebtedness |
C. |
Reasons for the Offer and Use of Proceeds |
D. |
Risk Factors |
• | aggravation of a financial crisis in several countries in the region; |
• | abrupt changes in the monetary and fiscal policies of countries with prominent economies due to macroeconomic conditions; |
• | increase in public expenses affecting the economy and fiscal deficits; |
• | inconsistent fiscal and monetary policies; |
• | uncertainty with respect to the Argentine public sector’s payment capacity and the potential for obtaining international financing; |
• | low levels of investment; |
• | changes in governmental economic or tax policies; |
• | high levels of inflation; |
• | abrupt changes in currency values; |
• | high interest rates; |
• | wage increases and price controls; |
• | exchange and capital controls; |
• | political and social unrest; |
• | the growing effects of labor unions; |
• | the significant price drop of main commodities exported by Argentina; |
• | fluctuations in the BCRA reserves; |
• | widespread illnesses or epidemics, including the COVID-19; and |
• | restrictions on exports and imports. |
• | downturns in general business and economic activity may cause demand for our products to decline; |
• | when demand falls, we may be under competitive pressure to lower our prices; and |
• | if we decide to expand our plants or construct new plants, we may do so based on an estimate of future demand that may never materialize or may materialize at levels lower than we predicted. |
• | further negatively impact demand for cement, concrete and aggregates, or further lower market prices for our products, which could result in a continued reduction of our sales, operating income and cash flows; |
• | make it more difficult or costly for us to obtain financing for our operations or investments or to refinance our debt in the future; |
• | cause us to experience an increase in costs as a result of our emergency measures, delayed payments from our customers and uncollectable accounts; |
• | impact our liquidity position and cost of and ability to access funds from financial institutions and capital markets; |
• | cause delays and disruptions in the supply chain resulting in disruptions in the commercial operation dates of certain construction projects; |
• | cause delays and disruptions in the construction of new cement facilities and the expansion of our existing facilities; |
• | impair the financial condition of some of our customers, suppliers or counterparties, thereby increasing customer bad debts or nonperformance by suppliers or counterparties; |
• | decrease the value of certain of our investments; and |
• | cause other unpredictable events. |
• | disasters or catastrophic events; |
• | extreme weather conditions; |
• | hostilities or political uncertainty; |
• | strikes or other labor difficulties; |
• | acts of terrorism; |
• | widespread illnesses or epidemics, including the COVID-19 pandemic; and |
• | other disruptions in means of transportation. |
• | actual or anticipated changes in our results of operations, or failure to meet expectations of financial market analysts and investors; |
• | investor perceptions of our prospects or our industry; |
• | operating performance of companies comparable to us |
• | increased competition in our industry; |
• | new laws or regulations or new interpretations of laws and regulations applicable to our business; |
• | general economic trends in Argentina; |
• | departures of management and key personnel; |
• | catastrophic events, such as earthquakes and other natural disasters; |
• | widespread illnesses or epidemics, including the COVID-19 pandemic; and |
• | developments and perceptions of risks in Argentina and in other countries. |
• | the notice of such meeting; |
• | voting instruction forms; and |
• | a statement as to the manner in which instructions may be given by holders (including an express indication that such instructions may be deemed given upon the terms specified below). |
• | the composition of our board of directors and, consequently, any determinations of our board with respect to our business direction and policy, including the appointment and removal of our executive officers; |
• | determinations with respect to mergers, other business combinations and other transactions, including those that may result in a change of control; |
• | whether dividends are paid or other distributions are made and the amount of any such dividends or distributions; |
• | cause us to issue additional equity securities; |
• | whether we limit the exercise of preemptive and accretion rights to holders of our ordinary shares in the event of a capital increase to the extent and terms permitted by the applicable law; |
• | sales and dispositions of our assets; and |
• | the amount of debt financing that we incur. |
ITEM 4. |
INFORMATION ON THE COMPANY |
A. |
History and Development of the Company |
B. |
Business Overview |
As of and for the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Operating data (million tons annually) (1) |
||||||||||||
Installed cement capacity |
||||||||||||
Total installed cement capacity |
12.3 |
9.1 |
9.1 |
|||||||||
Installed clinker capacity |
||||||||||||
Total installed clinker capacity |
7.3 |
5.2 |
5.2 |
|||||||||
Installed concrete capacity in Argentina (in m 3 ) |
0.8 | 0.9 | 1.2 | |||||||||
Installed aggregates capacity in Argentina |
2.2 | 2.2 | 2.2 | |||||||||
Installed lime capacity in Argentina |
0.5 | 0.5 | 0.5 | |||||||||
Production volume (millions of tons): |
||||||||||||
Cement, masonry and lime total |
6.0 |
5.1 |
5.4 |
|||||||||
Clinker total |
4.1 |
2.9 |
3.6 |
(1) | Annual installed capacity is based on a 365-day production per annum. |
Name |
Location |
Annual Production of Clinker |
Annual Production of Cement, Masonry Cement and Lime |
|||||||
(in millions of tons) |
||||||||||
Barker |
Benito Juárez | — | 0.1 | |||||||
Catamarca |
El Alto | 0.7 | 1.1 | |||||||
L’Amalí / LomaSer |
Olavarría/Vicente Casares |
2.6 | 2.5 | |||||||
Olavarría |
Olavarría | 0.5 | 1.5 | |||||||
San Juan |
San Juan | — | 0.2 | |||||||
Zapala |
Zapala | 0.2 | 0.3 | |||||||
Ramallo |
Ramallo | — | 0.3 | |||||||
|
|
|
|
|||||||
Total |
4.1 |
6.0 |
||||||||
|
|
|
|
Name |
Production for the Year Ended December 31, |
|||||||||||
2021 |
2020 |
2019 |
||||||||||
(in millions of tons) |
||||||||||||
Argentina: |
||||||||||||
Barker |
0.1 | 0.1 | 0.1 | |||||||||
Catamarca |
1.1 | 0.9 | 0.9 | |||||||||
L’Amalí/ LomaSer |
2.5 | 2.0 | 2.2 | |||||||||
Olavarría |
1.5 | 1.3 | 1.4 | |||||||||
San Juan |
0.2 | 0.2 | 0.1 | |||||||||
Zapala |
0.3 | 0.3 | 0.4 | |||||||||
Ramallo |
0.3 | 0.3 | 0.2 | |||||||||
Sierras Bayas (1) |
— | — | 0.1 | |||||||||
|
|
|
|
|
|
|||||||
Total |
6.0 |
5.1 |
5.4 |
|||||||||
|
|
|
|
|
|
(1) |
In 2021, considering the start-up of the new L’Amalí plant and also taking into account other micro and macroeconomic factors, the company decided to close permanently the Sierras Bayas Plant. |
Active Mining Rights |
Inactive Mining Rights |
Total Proven & Probable |
Years to Depletion |
2021 Annualized Production |
5 year Average Annualized Production |
|||||||||||||||||||||||||||||
Location |
Mining Property |
Number of quarries |
Proven (R1) |
Probable (R2) |
Probable (R2) |
|||||||||||||||||||||||||||||
(in millions of tons) |
(in thousands of tons) |
|||||||||||||||||||||||||||||||||
Limestone: |
||||||||||||||||||||||||||||||||||
Catamarca |
Doña Amalía | 1 | 53.6 | 56.2 | — | 109.8 | 81 | 1,353.2 | 1,355.1 | |||||||||||||||||||||||||
San Juan |
Piedras Blancas | 1 | 0.3 | 0.3 | — | 0.6 | 8 | 21.6 | 71.7 | |||||||||||||||||||||||||
Zapala |
El Salitral | 1 | 18.3 | 29.7 | — | 48.0 | 191 | 412.3 | 417.6 | |||||||||||||||||||||||||
Cerro Bayo | 1 | 13.2 | 18.7 | — | 31.9 | |||||||||||||||||||||||||||||
Barker |
Barker | 1 | 44.5 | 27.0 | — | 71.5 | 146 | 331.6 | 489.1 | |||||||||||||||||||||||||
Olavarría and L’Amalí |
La Pampita y Entorno (Don Gabino - Los Abriles - SASII) | 1 | 591.4 | 35.3 | — | 626.7 | 134 | 5,674.4 | 4,691.7 | |||||||||||||||||||||||||
Cerro Soltero I | — | — | — | 53.5 | 53.5 | — | — | — | ||||||||||||||||||||||||||
Cerro Soltero II | — | — | — | 111.6 | 111.6 | — | — | — | ||||||||||||||||||||||||||
El Cerro | — | — | — | 37.6 | 37.6 | — | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
721.3 |
167.1 |
202.7 |
1,091.1 |
155 |
7,792.9 |
7,025.2 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Granitic aggregates: |
||||||||||||||||||||||||||||||||||
La Preferida |
2 | 61.8 | 54.2 | — | 116.0 | 114.9 | 960.9 | 1,009.6 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
61.8 |
54.2 |
— |
116.0 |
114.9 |
960.9 |
1,009.6 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Region |
Sales |
Cumulative Sales |
||||||
(in percentages %) |
||||||||
Buenos Aires |
41 | 41 | ||||||
Center |
24 | 65 | ||||||
Northwest |
11 | 76 | ||||||
Northeast |
9 | 85 | ||||||
Cuyo |
8 | 93 | ||||||
Patagonia |
7 | 100 |
Subsidiary |
Equity Ownership Interest (%) |
Main activity | ||
Ferrosur Roca S.A. (1) |
80.00 | Rail freight | ||
Recycomb S.A.U |
100.00 | Waste recycling |
(1) |
Indirect ownership (through Cofesur S.A.U., in which we have a direct 100% equity ownership interest). |
• | Argentine National Association of Portland Cement Producers ( Asociaci ó n de Fabricantes de Cementos Portland |
• | Argentine Institute of Portland Cement ( Instituto Argentino de Cemento Portland |
• | Argentine National Concrete Association ( Asociaci ó n Argentina de Hormig ó n Elaborado |
• | Argentine National Association of Industrial Gas Consumers ( Asociaci ó n de Consumidores Industriales de Gas de la Rep ú blica Argentina |
• | Argentine National Association of Energy Power Major Users ( Asociaci ó n de Grandes Usuarios de Energ í a El é ctrica de la Rep ú blica Argentina |
• | Latin—American Railway Association (Asociación Latinoamericana de Ferrocarriles). |
• | American Chamber of Commerce of United States in Argentina (Cámara de Comercio de Estados Unidos en Argentina). |
• | Argentine Business Council for Sustainable Development (Consejo Empresario Argentino para el Desarrollo Sostenible). |
• | Argentine Chamber of Importers (Cámara Argentina de Importadores). |
• | Chamber of environmental companies (Cámara de empresas de medio ambiente). |
• | Inter-American Cement Federation (FICEM) |
• | Argentine Technology Concrete Association ( Asociación Argentina de Tecnología del Hormigón |
C. |
Organizational Structure |
(1) |
Indirect ownership (through Cofesur SAU, in which we have a direct 100% equity ownership interest) |
D. |
Property, Plants and Equipment |
Production Facility |
Type of Plant |
Location |
Commissioning Year |
|||||||||
Argentina: |
||||||||||||
North-east: |
||||||||||||
Resistencia |
Warehouse | Resistencia | 2013 | |||||||||
Center-east: |
||||||||||||
Barker |
Cement | Benito Juárez | 1956 | |||||||||
L’Amalí |
Cement | Olavarría | 2001 | |||||||||
LomaSer |
Blending/Distribution | Cañuelas | 2000 | |||||||||
Olavarría |
Cement | Olavarría | 1929 | |||||||||
Ramallo |
Grinding Mill | Ramallo | 1998 | |||||||||
Paraná |
Warehouse | Paraná | ||||||||||
Patagonia: |
||||||||||||
Zapala |
Cement | Zapala | 1970 | |||||||||
Cuyo: |
||||||||||||
San Juan |
Cement | San Juan | 1963 | |||||||||
Mendoza |
Warehouse | Palmira | 2020 | |||||||||
North-west: |
Catamarca |
Cement | El Alto | 1980 | |||
Salta |
Warehouse | Salta | 2020 | |||
Concrete plants under the Lomax brand: |
||||||
Don Torcuato |
Concrete | Greater Buenos Aires area |
1998 | |||
Sola |
Concrete | City of Buenos Aires | 1998 | |||
Llavallol |
Concrete | Greater Buenos Aires area |
1998 | |||
Uriburu |
Concrete | Rosario | 2010 | |||
San Lorenzo |
Concrete | Santa Fe area | 2016 | |||
Darsena F 1 |
Concrete | City of Buenos Aires | 2017 | |||
Darsena F 2 |
Concrete | City of Buenos Aires | 2018 | |||
Vicente Casares |
Concrete | Greater Buenos Aires area |
2018 | |||
Escobar |
Concrete | Greater Buenos Aires area |
2020 | |||
Dock Sud |
Concrete | Greater Buenos Aires area |
2021 | |||
Aggregates plant: |
||||||
La Preferida |
Aggregates | Olavarría | 2004 |
(1) | Railway segment we actively use. |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
Operating Results |
As of and for the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
GDP (billions of Ps.) |
688.6 | 624.5 | 693.0 | |||||||||
Real GDP growth |
10.3 | % | (9.9 | )% | (2.1 | )% | ||||||
GDP per capita (in thousands of U.S. dollars) |
10.6 | 8.6 | 9.9 | |||||||||
Private consumption growth |
10.2 | % | (13.1 | )% | (6.4 | )% | ||||||
Average Ps./U.S. dollar exchange rate (1) |
95.2 | 70.6 | 48.2 | |||||||||
CPI inflation |
50.9 | % | 36.1 | % | 53.8 | % | ||||||
Private sector salary growth |
55.2 | % | 34.4 | % | 44.3 | % | ||||||
Unemployment rate (2) |
7.0 | % | 11.0 | % | 8.9 | % |
(1) | The average rate is calculated by using the average of the BCRA’s reported exchange rates on a daily basis. |
(2) | As a percentage of Argentina’s economically active population. |
Official Nominal Exchange Rates |
||||||||||||||||
High (1) |
Low (1) |
Average (1)(2) |
Period-end (1) |
|||||||||||||
2017 |
18.8300 | 15.1742 | 16.5665 | 18.7742 | ||||||||||||
2018 |
40.8967 | 18.4158 | 28.0937 | 37.8083 | ||||||||||||
2019 |
60.0033 | 37.0350 | 48.2423 | 59.8950 | ||||||||||||
2020 |
84.1450 | 59.8152 | 70.5941 | 84.1450 | ||||||||||||
2021 |
102.7500 | 84.7033 | 95.1615 | 102.7500 | ||||||||||||
2022 |
||||||||||||||||
January 2022 |
105.0150 | 103.0400 | 103.9846 | 105.0150 | ||||||||||||
February 2022 |
107.4417 | 105.1350 | 106.3071 | 107.4417 | ||||||||||||
March 2022 |
110.9783 | 107.9350 | 109.4585 | 110.9783 | ||||||||||||
April 27, 2022 |
115.0050 | 111.1250 | 113.1100 | 115.0050 |
(1) | Reference exchange rate published by the Argentine Central Bank. |
(2) | Based on daily averages. |
• | Turnover Tax |
• | Quarry Exploitation Fee |
• | Tax on Bank Accounts Debits and Credits |
• | Stamp Tax |
• | Personal Assets Tax. |
• | Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date; |
• | Level 2: valuation techniques for which the lowest level input that is significant to their value measurement is directly or indirectly observable; and |
• | Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. |
(i) | we expect to realize the asset or intend to sell or consume it during its normal operation cycle; |
(ii) | we maintain the asset primarily for trading purposes; |
(iii) | we expect to realize the asset within twelve months after the reporting period; or |
(iv) | the asset is cash or cash equivalents unless the asset is restricted and may not be exchanged or used to settle a liability for at least twelve months after the reporting period. |
(i) | we expect to settle the liability during its normal operation cycle; |
(ii) | we maintain the liability primarily for trading purposes; |
(iii) | the liability must be settled within the twelve months after the reporting period; or |
(iv) | we do not have an unconditional rights to defer settlement of the liability for at least the twelve months after the reporting period. |
• | IFRS 3 Reference to the Conceptual Framework |
• | IAS 16 Proceeds before Intended Use of Property, Plant and Equipment |
• | IAS 37 Cost of Fulfilling an Onerous Contract |
• | IFRS 1—First-time Adoption of IFRS by a subsidiary |
• | IFRS 9 Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities |
• | IFRS 16 Lease Incentives |
• | IAS 41 Taxation in Fair Value Measurement |
• | IAS 1—Classification of Liabilities as Current or Non-Current |
• | IFRS 17 Insurance Contracts |
• | IAS 1 and IFRS 2 Practice Statement—Disclosure of Accounting Policies |
• | IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors |
• | IAS 12 Income Tax |
• | IFRS 9, IFRS 7, IFRS 4, IFRS 16, and IAS 39 Interest Rate Benchmark Reform |
• | revenue recognition; |
• | goodwill; |
• | investments in other companies; |
• | leases; |
• | foreign currency and functional currency; |
• | borrowing costs; |
• | taxation; |
• | property, plant and equipment; |
• | intangible assets; |
• | impairment of tangible and intangible assets; |
• | inventories; |
• | provisions; |
• | financial instruments; |
• | financial assets; |
• | Ferrocarril Roca management trust; |
• | financial liabilities and equity instruments; |
• | environmental restoration; |
• | short- and long-term employee benefits; and |
• | stripping costs and quarry exploitation. |
• | Raw materials and spare parts: at cost using the weighted average price method. Cost is determined at each of our plants. |
• | Finished goods and work in progress: at the cost of direct materials and labor plus a proportion of manufacturing overheads based on normal operating capacity, but excluding borrowing costs. |
• | The rights to receive cash flows from the asset have expired, or |
• | We have transferred our rights to receive cash flows from the asset or have assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either: a) we have transferred substantially all risks and rewards of the asset or b) we have neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. |
• | Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or |
• | Financial liabilities are part of a group of financial assets or liabilities or both, which is managed and whose performance is assessed on the basis of fair value, in accordance with the Group’s documented risk management or investment strategy, and information about the Group is provided internally on that basis; or |
• | They are part of a contract containing one or more embedded derivatives, and IFRS 9 allows the entire combined contract to be carried at fair value through profit and loss. |
For the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(in percentages) |
||||||||||||
Salaries, wages and social security charges |
15.8 | 17.6 | 18.8 | |||||||||
Thermal energy |
13.7 | 11.1 | 16.6 | |||||||||
Depreciation |
11.8 | 12.5 | 10.2 | |||||||||
Freight |
10.3 | 8.8 | 7.1 | |||||||||
Electrical power |
9.8 | 9.3 | 10.5 | |||||||||
Preservation and maintenance costs |
9.3 | 9.3 | 9.5 | |||||||||
Contractors |
7.4 | 6.6 | 7.9 | |||||||||
Packaging |
4.1 | 4.9 | 3.9 | |||||||||
Taxes, contributions and commissions |
2.0 | 2.0 | 1.8 | |||||||||
Fees and compensation for services |
2.0 | 2.1 | 1.9 | |||||||||
Transport and travelling expenses |
0.7 | 0.7 | 0.7 | |||||||||
Security |
0.5 | 0.7 | 0.6 | |||||||||
Employee benefits |
0.4 | 0.4 | 0.4 | |||||||||
Insurance |
0.3 | 0.3 | 0.3 | |||||||||
Leases |
0.1 | 0.1 | 0.2 | |||||||||
Communications |
0.1 | 0.1 | 0.1 | |||||||||
Canon (concession fee) |
0.1 | 0.1 | 0.1 | |||||||||
Data processing |
0.0 | 0.0 | 0.1 | |||||||||
Tolls |
0.0 | 0.4 | 0.0 | |||||||||
Water, natural gas and energy services |
0.0 | 0.0 | 0.0 | |||||||||
Others |
1.4 | 1.3 | 1.3 | |||||||||
|
|
|
|
|
|
|||||||
Production expenses |
89.9 |
88.3 |
92.0 |
|||||||||
|
|
|
|
|
|
|||||||
Cost of sales |
100 |
100 |
100 |
|||||||||
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(in percentages) |
||||||||||||
Taxes, contributions and commissions |
24.9 | 25.4 | 26.2 | |||||||||
Salaries, wages and social security charges |
22.7 | 24.8 | 29.3 | |||||||||
Freight |
15.3 | 13.2 | 9.9 | |||||||||
Managers, directors and trustees’ fees |
7.4 | 8.4 | 8.5 | |||||||||
Depreciation and amortization |
5.9 | 8.3 | 6.1 | |||||||||
Fees and compensation for services |
5.9 | 8.4 | 6.1 | |||||||||
Advertising expenses |
4.9 | 2.2 | 2.2 | |||||||||
Allowance for doubtful accounts |
3.1 | 0.2 | 1.7 | |||||||||
Data processing |
2.9 | 1.8 | 2.0 | |||||||||
Insurance |
2.3 | 2.2 | 1.5 | |||||||||
Employee benefits |
0.8 | 1.0 | 1.0 | |||||||||
Communications |
0.7 | 0.9 | 0.9 | |||||||||
Transport and travelling expenses |
0.5 | 0.6 | 1.5 | |||||||||
Leases |
0.4 | 0.4 | 0.6 | |||||||||
Preservation and maintenance costs |
0.2 | 0.3 | 0.5 | |||||||||
Security |
0.2 | 0.2 | 0.2 | |||||||||
Water, natural gas and energy services |
0.1 | 0.1 | 0.1 | |||||||||
Others |
1.7 | 1.7 | 1.7 | |||||||||
|
|
|
|
|
|
|||||||
Total selling and administrative expenses |
100 |
100 |
100 |
|||||||||
|
|
|
|
|
|
For the Year Ended December 31, |
Variation |
|||||||||||||||
2021 |
2020 |
Amount |
(%) |
|||||||||||||
(in millions of Ps., except percentages) |
||||||||||||||||
Revenue |
73,668.1 | 62,826.8 | 10,841.3 | 17.3 | ||||||||||||
Cost of sales |
(50,384.1 | ) | (43,812.9 | ) | (6,571.2 | ) | 15.0 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
23,284.0 |
19,013.9 |
4,270.1 |
22.5 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Losses from interest in companies |
0.0 | (609.5 | ) | 609.5 | n/a | |||||||||||
Selling and administrative expenses |
(6,328.7 | ) | (5,214.5 | ) | (1,114.2 | ) | 21.4 | |||||||||
Impairment of property, plant and equipment |
(152.8 | ) | (1,429.3 | ) | 1,276.5 | (89.3 | ) | |||||||||
Other gains and losses |
209.4 | 222.2 | (12.8 | ) | (5.8 | ) | ||||||||||
Tax on debits and credits to bank accounts |
(742.4 | ) | (738.7 | ) | (3.7 | ) | 0.5 | |||||||||
Finance costs, net |
||||||||||||||||
Exchange rate differences |
80.2 | 2,498.5 | (2,418.3 | ) | (96.8 | ) | ||||||||||
Gain on net monetary position |
1,867.3 | 1,266.6 | 600.7 | 47.4 | ||||||||||||
Financial income |
39.2 | 123.2 | (84.0 | ) | (68.2 | ) | ||||||||||
Financial expenses |
(1,944.1 | ) | (2,276.6 | ) | 332.5 | (14.6 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Profit before taxes |
16,312.1 |
12,855.8 |
3,456.3 |
26.9 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax expense |
||||||||||||||||
Current |
(6,638.5 | ) | (3,603.1 | ) | (3,035.4 | ) | 84.2 | |||||||||
Deferred |
(3,329.3 | ) | 186.5 | (3,515.8 | ) | n/a | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net profit from continuing operations |
6,344.3 |
9,439.2 |
(3,094.9 |
) |
(32.8 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations |
0.0 | 7,741.2 | (7,741.2 | ) | n/a | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net profit |
6,344.3 |
17,180.4 |
(10,836.1 |
) |
(63.1 |
) | ||||||||||
|
|
|
|
|
|
|
|
• | Cement, masonry cement and lime segment : Revenues from our cement, masonry cement and lime segment, without considering the eliminations between segments, increased Ps.8,569 million, from Ps.57,356 million in 2020 to Ps.65,925 million in 2021, mainly due to the increase of 18.7% in sales volume, and partially offset by an average sales price decrease of 3.1%. |
• | Concrete segment: COVID-19 lock-down and economic uncertainty that impacted major private and public projects. |
• | Railroad segment : Revenues from our railroad segment, without considering the eliminations between segments, increased Ps.553 million, from Ps.5,427 million in 2020 to Ps.5,980 million in 2021, mainly due to an increase of 14.1% in sales volume, mainly as a consequence of the rebound in frac-sand and building materials demand from last year drop due to Covid-19 restrictions, offseted by a decline of 3.4% in the average sales price. |
• | Aggregates segment : Revenues from our aggregates segment, without considering the eliminations between segments, increased Ps.502 million, from Ps.606 million in 2020 to Ps.1,108 million in 2021, mainly due to an increase of 47.1% in sales volume and an average price increase of 24.3%. |
• | Others segment : Revenues from Recycomb S.A.U., without considering the eliminations between segments, increased Ps.139 million, from Ps.306 million in 2020 to Ps.445 million in 2021. |
As of and for the Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(in millions of Ps.) |
||||||||
Purchases and production expenses for the year |
50,621.5 | 42,329.3 | ||||||
(+) Inventories at the beginning of the year |
11,543.9 | 13,027.5 | ||||||
(-) Inventories at the end of the year |
11,781.3 | 11,543.9 | ||||||
|
|
|
|
|||||
Cost of sales |
50,384.1 |
43,812.9 |
||||||
|
|
|
|
• | Cement, masonry cement and lime segment : |
• | Concrete segment |
• | Railroad segment |
• | Aggregates segment: |
• | Others segment: |
For the year ended December 31, |
||||||||
2021 |
2020 |
|||||||
(amounts in millions of Ps.) |
||||||||
Profit from continuing operations before income tax expense |
16,311.9 | 12,855.8 | ||||||
Profit from discontinued operations before income tax expense |
0.0 | 10,031.1 | ||||||
Statutory rate |
35 | % | 30 | % | ||||
Income tax at statutory rate |
(5,709.2 | ) | (6,866.1 | ) | ||||
Adjustments for calculation of the effective income tax: |
||||||||
Effect of derecognition of Yguazú Cementos S.A. |
0.0 | 970.0 | ||||||
Impairment of recognized losses at Ferrosur Roca S.A. |
(237.2 | ) | (242.9 | ) | ||||
Tax revaluation and inflation adjustment for accounting and tax purposes |
(169.7 | ) | 282.5 | |||||
Change in tax rate (1) |
(3,857.9 | ) | 184.4 | |||||
Other non-taxable income or non-deductible expense net |
6.2 | (34.5 | ) | |||||
|
|
|
|
|||||
Income tax expense |
(9,967.8 |
) |
(5,706.6 |
) | ||||
|
|
|
|
|||||
Income tax expense |
||||||||
Current |
(6,638.5 | ) | (5,882.7 | ) | ||||
Deferred |
(3,329.3 | ) | 176.2 | |||||
|
|
|
|
|||||
Total |
(9,967.8 |
) |
(5,706.6 |
) | ||||
|
|
|
|
(1) |
Law No. 27.430 had set forth for the tax periods commencing as from January 1, 2020 that the tax rate payable by corporations as income tax would decrease from 30% to 25% and that the additional tax on dividends or earnings that are distributed to individuals in Argentina and abroad and foreign legal entities would rise from 7% to 13%. However, the Argentine Congress approved Law 27.630, which modifies: (i) the corporate tax rate for Argentine entities, by applying a sliding scale from 25% to 35%, depending on the accumulated net income obtained during the given year; and (ii) regardless of the applicable corporate tax rate, in all cases, dividends or profits will be levied at a 7% tax rate. |
For the Year Ended December 31, |
Variation |
|||||||||||||||
2020 |
2019 |
Amount |
(%) |
|||||||||||||
(in millions of Ps., except percentages) |
||||||||||||||||
Revenue |
62,826.8 | 72,079.3 | (9,252.5 | ) | (12.8 | ) | ||||||||||
Cost of sales |
(43,812.9 | ) | (52,386.0 | ) | 8,573.1 | (16.4 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
19,013.9 |
19,693.3 |
(679.4 |
) |
(3.4 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from interest in companies |
(609.5 | ) | 0.0 | (609.5 | ) | n/a | ||||||||||
Selling and administrative expenses |
(5,214.5 | ) | (5,743.7 | ) | 529.2 | (9.2 | ) | |||||||||
Other gains and losses |
222.2 | 92.4 | 129.8 | 140.4 | ||||||||||||
Impairment of property, plant and equipment |
(1,429.3 | ) | 0.0 | (1,429.3 | ) | n/a | ||||||||||
Tax on debits and credits to bank accounts |
(738.7 | ) | (829.9 | ) | 91.2 | (11.0 | ) | |||||||||
Finance costs, net |
||||||||||||||||
Exchange rate differences |
2,498.5 | (2,453.3 | ) | 4,951.8 | (201.8 | ) | ||||||||||
Gain on net monetary position |
1,266.6 | 2,291.0 | (1,024.4 | ) | (44.7 | ) | ||||||||||
Financial income |
123.2 | 124.1 | (0.9 | ) | (0.7 | ) | ||||||||||
Financial expenses |
(2,276.6 | ) | (3,083.2 | ) | 806.6 | (26.2 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Profit before taxes |
12,855.8 |
10,090.7 |
2,765.1 |
27.4 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax expense |
||||||||||||||||
Current |
(3,603.1 | ) | (2,149.2 | ) | (1,453.9 | ) | 67.6 | |||||||||
Deferred |
186.5 | (1,171.7 | ) | 1,358.2 | n/a | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net profit from continuing operations |
9,439.2 |
6,769.8 |
2,669.4 |
39.4 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations |
7,741.2 | 1,540.0 | 6,201.2 | 402.7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net profit |
17,180.4 |
8,309.8 |
8,870.6 |
106.7 |
||||||||||||
|
|
|
|
|
|
|
|
• | Cement, masonry cement and lime segment : Revenues from our cement, masonry cement and lime segment, without considering the eliminations between segments, decreased Ps.2,856 million, from Ps.60,212 million in 2019 to Ps.57,356 million in 2020, mainly due to the decrease of 5.6% in sales volume, mostly explained by COVID-19 pandemic impacts, and partially offset by an average sales price increase of 0.9%. |
• | Concrete segment: COVID-19 lock-down and economic uncertainty impacting major private and public projects, coupled with a lower average sales price of 19.9% as a consequence of softer demand. |
• | Railroad segment : Revenues from our railroad segment, without considering the eliminations between segments, decreased Ps.2,066 million, from Ps.7,493 million in 2019 to Ps.5,427 million in 2020, mainly due to a decrease of 15.2% in sales volume, mainly as a consequence of the drop in the frac-sand and building materials transported volumes and a decline of 14.6% in the average sales price. |
• | Aggregates segment : Revenues from our aggregates segment, without considering the eliminations between segments, decreased Ps.666 million, from Ps.1,272 million in 2019 to Ps.606 million in 2020, mainly due to a decline of 47.8% in sales volume and an average price decrease of 8.6%. |
• | Others segment : Revenues from Recycomb S.A.U., without considering the eliminations between segments, decreased Ps.86 million, from Ps.392 million in 2019 to Ps.306 million in 2020. |
As of and for the Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
(in millions of Ps.) |
||||||||
Purchases and production expenses for the year |
42,329.3 | 52,522.0 | ||||||
(+) Inventories at the beginning of the year |
13,027.5 | 12,891.5 | ||||||
(-) Inventories at the end of the year |
11,543.9 | 13,027.5 | ||||||
|
|
|
|
|||||
Cost of sales |
43,812.9 |
52,386.0 |
||||||
|
|
|
|
• | Cement, masonry cement and lime segment : COVID-19 pandemic, and lower costs in preservation and maintenance costs due to an adjustment of the main equipment´s overhauling schedule. |
• | Concrete segment |
• | Railroad segment : |
• | Aggregates segment : |
• | Others segment: |
For the year ended December 31, |
||||||||
2020 |
2019 |
|||||||
(amounts in millions of Ps.) |
||||||||
Profit from continuing operations before income tax expense |
12,855.8 |
10,090.7 |
||||||
Profit from discontinued operations before income tax expense |
10,031.1 |
1,684.6 |
||||||
Statutory rate |
30 |
% |
30 |
% | ||||
|
|
|
|
|||||
Income tax at statutory rate |
(6,866.1 |
) |
(3,532.6 |
) | ||||
Adjustments for calculation of the effective income tax: |
||||||||
Effect of derecognition of Yguazú Cementos S.A. |
970.0 |
336.9 |
||||||
Impairment of recognized losses at Ferrosur Roca S.A. |
(242.9 |
) |
0.0 |
|||||
Tax revaluation |
282.5 |
(310.2 |
) | |||||
Change in tax rate (1) |
184.4 |
(578.3 |
) | |||||
Other non-taxable income or non-deductible expense net |
(34.5 |
) |
(1.7 |
) | ||||
|
|
|
|
|||||
Income tax expense |
(5,706.6 |
) |
(3,465.5 |
) | ||||
|
|
|
|
|||||
Income tax expense |
||||||||
Current |
(5,882.7 |
) |
(2,267.2 |
) | ||||
Deferred |
176.2 |
(1,198.3 |
) | |||||
|
|
|
|
|||||
Total |
(5,706.6 |
) |
(3,465.5 |
) | ||||
|
|
|
|
(1) |
Law No. 27.430 had set forth for the tax periods commencing as from January 1, 2020 that the tax rate payable by corporations as income tax would decrease from 30% to 25% and that the additional tax on dividends or earnings that are distributed to individuals in Argentina and abroad and foreign legal entities would rise from 7% to 13%. The Law No. 27,541 postpones such change in tax rates and maintains the original 30% and 7% tax rates until the fiscal years starting on January 1, 2021, inclusive. However, the Argentine Congress approved Law 27.630, which modifies: (i) the corporate tax rate for Argentine entities, by applying a sliding scale from 25% to 35%, depending on the accumulated net income obtained during the given year; and (ii) regardless of the applicable corporate tax rate, in all cases, dividends or profits will be levied at a 7% tax rate. |
B. |
Liquidity and Capital Resources |
• |
our ability to generate cash flows from our operations; |
• |
the level of our outstanding indebtedness and the interest that we are obligated to pay on our indebtedness, which affect our net financial expenses; |
• |
prevailing domestic and international interest rates, which affect our debt service requirements; and |
• |
our capital expenditure requirements, which consist primarily of investments in our operations, maintenance, equipment and plant facilities. |
• |
working capital requirements; |
• |
the servicing of our indebtedness; and |
• |
capital expenditures related to investments in our operations, maintenance, equipment and plant facilities. |
For the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(in millions of Ps.) |
||||||||||||
Net cash flows provided by (used in): |
||||||||||||
Operating activities |
15,049.9 |
17,188.6 |
14,077.2 |
|||||||||
Investing activities |
(8,845.1 |
) |
(2,157.7 |
) |
(24,109.7 |
) | ||||||
Financing activities |
(8,759.6 |
) |
(15,853.9 |
) |
5,280.0 |
|||||||
Effect of restating in constant currency of cash and cash equivalents |
(219.7 |
) |
(236.7 |
) |
(332.9 |
) | ||||||
Effects of exchange rate differences on cash and cash equivalents in foreign currency |
(524.3 |
) |
4,984.1 |
397.1 |
||||||||
|
|
|
|
|
|
|||||||
Increase / (Decrease) in cash and cash equivalents |
(3,298.8 |
) |
3,924.4 |
(4,688.3 |
) | |||||||
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||||
Re. |
Company |
Rate |
Last maturity date |
Amount In millions Ps. |
||||||||||||||
Loans in foreign currency - USD |
||||||||||||||||||
Industrial and Commercial Bank of China |
(1) |
Loma Negra CIASA |
6-Month Libor + 4.25% |
Jan-22 |
91.8 |
|||||||||||||
Industrial and Commercial Bank of China |
(1) |
Loma Negra CIASA |
6-Month Libor + 4.25% |
Feb-22 |
6.4 |
|||||||||||||
Industrial and Commercial Bank of China |
(1) |
Loma Negra CIASA |
6-Month Libor + 4.25% |
Mar-22 |
41.6 |
|||||||||||||
Industrial and Commercial Bank of China |
(2) |
Loma Negra CIASA |
6-Month Libor + 7.375% |
Jan-22 |
663.2 |
|||||||||||||
Industrial and Commercial Bank of China |
(2) |
Loma Negra CIASA |
6-Month Libor + 7.375% |
Jan-22 |
731.8 |
|||||||||||||
Industrial and Commercial Bank of China |
(3) |
Loma Negra CIASA |
3-Month Libor + 7.50% |
Nov-23 |
803.4 |
|||||||||||||
|
|
|||||||||||||||||
Total loans in foreign currency |
2338.2 |
|||||||||||||||||
|
|
|||||||||||||||||
Loans in local currency |
||||||||||||||||||
Bank overdrafts |
Ferrosur Roca SA |
35.6% |
Jan-22 |
124.1 |
||||||||||||||
Bank overdrafts |
Loma Negra CIASA |
35.6% |
Jan-22 |
48.8 |
||||||||||||||
|
|
|||||||||||||||||
Total loans in local currency |
172.9 |
|||||||||||||||||
|
|
|||||||||||||||||
Total |
2511.1 |
|||||||||||||||||
|
|
(1) |
During the fiscal year ended December 31, 2020, Loma Negra C.I.A.S.A. received two disbursements of the loan agreement with Industrial and Commercial Bank of China Argentina S.A. for USD 40,919,350, the last principal payments of which maturing in January and February 2022. In addition, during the current fiscal year, we received an additional disbursement of USD 389,966, the last principal payment of which matures in March 2022. The loan accrues interest at adjusted LIBOR plus 4.25%. |
(2) |
During fiscal year 2020, Loma Negra C.I.A.S.A. signed a new loan agreement with Industrial and Commercial Bank of China for USD 13,127,766, payable upon maturity in January 2022. This loan accrues interest at adjusted LIBOR plus 7.375%, payable on a monthly basis. |
(3) |
In June 2016, Loma Negra signed a loan agreement with Industrial and Commercial Bank of China (Dubai) for a total amount of USD 50,000,000 to be paid in five equal, half-yearly installments with a one-year grace period as from the date of disbursement. Interest are accrued at a variable nominal interest rate on the basis of the LIBO rate to be paid on a quarterly basis. This loan requires the net debt / EBITDA ratio to be satisfied, which has always been satisfied from the execution of the loan. In May 2019, the Group extended the maturity dates of such loan. During the previous fiscal year we, in accordance with the lender, has amended the loan agreement and shall pay the outstanding principal in nine payments, the first one on October 2020 of USD 5,200,000 and eight more equal quarterly payments of USD 975,000, the last due in November 2023. As of December 31, 2021, the amount pending payment under this loan was Ps 803.375 million. |
Payments Due by Period |
||||||||||||||||||||
Total |
Less than 1 year |
1-3 years |
3-5 years |
More than 5 years |
||||||||||||||||
(in millions of Ps.) |
||||||||||||||||||||
Financial borrowings (1) |
2,511.1 |
2,112.4 |
398.7 |
— |
— |
|||||||||||||||
Accounts payable |
7,876.3 |
7,876.3 |
— |
— |
— |
|||||||||||||||
Taxes payable |
3,345.4 |
3,345.4 |
— |
— |
— |
|||||||||||||||
Salaries and social security contributions |
2,085.1 |
2,034.5 |
— |
50.5 |
— |
|||||||||||||||
Lease liabilities |
314.7 |
79.5 |
105.4 |
82.1 |
47.7 |
|||||||||||||||
Severance payment plans |
227.8 |
136.6 |
70.8 |
7.4 |
13.0 |
|||||||||||||||
Other debts (2) |
74.7 |
23.3 |
— |
— |
51.4 |
|||||||||||||||
Total |
16,435.1 |
15,608.1 |
574.9 |
140.0 |
112.1 |
(1) |
Includes payments of principal only. “See – Note 25 of our audited consolidated statements for the year ended December 31, 2021 and 2020”. |
(2) |
Corresponds to our internal information. |
As of and for the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Liquidity (1) |
1.15 |
0.92 |
0.58 |
|||||||||
Solvency (2) |
2.24 |
1.78 |
1.12 |
|||||||||
Non-current assets to total assets ratio(3) |
0.82 |
0.80 |
0.84 |
|||||||||
Profitability (4) |
0.09 |
0.27 |
0.14 |
(1) |
Current assets / Current liabilities |
(2) |
Shareholder’s equity / Total liabilities |
(3) |
Non-current assets / Total assets |
(4) |
Net profit / Average shareholder’s equity |
C. |
Research and Development, Patents and Licenses, etc. |
D. |
Trend Information |
E. |
Critical Accounting Estimates |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. |
Directors and Senior Management |
Name |
Age |
Position |
Independent |
Years as a Board Member as of December 31 2021 | ||||
Flávio Mendes Aidar |
46 |
President |
No |
3 | ||||
Sergio Damián Faifman |
47 |
Vice-President |
No |
10 | ||||
Livio Hagime Kuze |
42 |
Director |
No |
1 | ||||
Paulo Diniz |
64 |
Director |
No |
5 | ||||
Javier Enrique Patron |
60 |
Director |
No |
0 | ||||
Carlos Boero Hughes |
56 |
Director |
Yes |
5 | ||||
Diana Mondino |
63 |
Director |
Yes |
5 | ||||
Sergio Daniel Alonso |
59 |
Director |
Yes |
5 | ||||
Javier Graña |
51 |
Director |
Yes |
3 |
Name |
Year of Birth |
Position |
Year of first Appointment | |||
Sergio Damián Faifman |
1974 |
Chief Executive Officer |
2016 | |||
Marcos Isabelino Gradin |
1972 |
Chief Financial Officer |
2015 | |||
Dardo Ariel Damiano |
1963 |
Industrial Director |
2008 | |||
Gerardo Oscar Diez |
1967 |
Commercial and Concrete Director |
2016 | |||
Hector Fabian Gerez |
1968 |
Ferrosur Roca General Director |
2021 | |||
Lucrecia Loureiro |
1981 |
Human Resources, EHS, Legal and Corporate Affairs Director |
2022 | |||
Valeria Mara Loderer |
1973 |
Supply Chain and Logistics Director |
2021 |
B. |
Compensation |
(i) |
Stock Compensation Plan |
(ii) |
Total Shareholder Return Stock Compensation Plan |
C. |
Board Practices |
Name |
Year of Appointment |
Position Held |
Age |
|||||||||
Antonio Juan Lattuca |
2022 | Member | 77 | |||||||||
Omar Raúl Rolotti |
2022 | Member | 73 | |||||||||
Adriana Irene Calvo |
2022 | Member | 59 | |||||||||
Claudio Aldo Forti |
2022 | Alternate | 59 | |||||||||
Carlos Roberto Chiesa |
2022 | Alternate | 51 | |||||||||
José Alanis |
2022 | Alternate | 83 |
Name |
Position |
Age |
Election Date |
Condition |
||||||||||||
Carlos Boero Hughes |
Permanent | 56 | 2022 | Independent | ||||||||||||
Diana Mondino |
Permanent | 63 | 2022 | Independent | ||||||||||||
Sergio Daniel Alonso |
Permanent | 59 | 2022 | Independent | ||||||||||||
Javier Graña |
Alternate | 51 | 2022 | Independent |
D. |
Employees |
As of December 31, |
||||||||||||
Business Segment |
2021 |
2020 |
2019 |
|||||||||
Cement |
1,408 | 1,404 | 1,375 | |||||||||
Concrete |
253 | 272 | 156 | |||||||||
Aggregates |
53 | 44 | 61 | |||||||||
Railroad |
1,105 | 1,151 | 1,221 | |||||||||
Others |
30 | 29 | 31 | |||||||||
Total |
2,849 |
2,900 |
2,844 |
|||||||||
|
|
|
|
|
|
E. |
Share Ownership |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
Major Shareholders |
• | each person or group of affiliated persons that, to our knowledge, beneficially owns 5% or more of our ordinary shares; |
• | all of our directors and executive officers as a group. |
Shares Beneficially Owned |
||||||||
Name of Beneficial Owner |
Number |
Percentage of our Capital Stock |
||||||
IC Trading Inversiones Argentina, S.L. (1) |
304,233,740 | 51.0 | ||||||
Capital International Investors. (2) |
41,373,610 | 6.9 | ||||||
ANSES (3) |
30,987,880 | 5.2 | ||||||
Directors and Executive Officers as a Group |
* | * |
(1) | Based on information provided by IC Trading Inversiones. It owns and controls 100% of the voting shares of IC Trading Inversiones Argentina. InterCement Portugal S.A. owns and controls 100% of IC Trading Inversiones. InterCement Participações S.A. owns and controls 99.4% of the share capital of InterCement Portugal S.A. Mover Participações S.A. (formerly named Camargo Corrêa S.A.) owns and controls 90.58% of InterCement Participações S.A.’s voting shares. Participações Morro Vermelho S.A. owns 99.99% of the common shares and 100% of the preferred shares of Mover Participações S.A.. |
(2) | Based on Schedule 13G filed on February 11, 2022, Capital International Investors (“CII”) is a division of Capital Research and Management Company (“CRMC”), as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., and Capital Group Private Client Services, Inc. (together with CRMC, the “investment management entities”). CII’s divisions of each of the investment management entities collectively provide investment management services under the name “Capital International Investors |
(3) | The amount of shares owned by the National Social Security Association of Argentina ( Administración Nacional de la Seguridad Social |
* | Individually each owning less than 1% of our outstanding ordinary shares. |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
ITEM 8. |
FINANCIAL INFORMATION |
A. |
Consolidated Statements and Other Financial Information |
As of December 31, 2021 |
||||||||||||
Number of proceedings |
Total Claims |
Total Provisions |
||||||||||
(in millions of Ps.) |
||||||||||||
Labor and Social Security Proceedings |
190 | 319.5 | 106.4 | |||||||||
Civil and other proceedings |
284 | 1,143.8 | 125.4 | |||||||||
|
|
|
|
|
|
|||||||
Total |
474 |
1,463.3 |
231.8 |
|||||||||
|
|
|
|
|
|
• | to comply with the legal reserve requirement; |
• | to the establishment of voluntary reserves; |
• | to pay the accrued fees of the members of our board of directors and supervisory committee; |
• | to pay dividends on preferred shares (if at any time issued and existing); |
• | to the distribution of dividends; and |
• | any remaining balance to undistributed cumulated earnings or as otherwise determined by our shareholders at the annual shareholders’ meeting. |
As of December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(in millions of Ps.) |
||||||||||||
Legal reserve |
1,450.6 | 1,450.6 | 1,188.2 | |||||||||
Environmental reserve |
11.3 | 11.3 | 11.3 | |||||||||
Optional reserve for future dividends |
43,926.9 | 0.0 | 95.2 | |||||||||
Optional reserve |
0.0 | 26,793.5 | 23,104.4 | |||||||||
Exchange differences on translating foreign operations |
0.0 | 0.0 | 678.6 | |||||||||
|
|
|
|
|
|
|||||||
Total reserves |
45,388.8 |
28,255.4 |
25,077.7 |
|||||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(in millions of Ps.) |
||||||||||||
Attributable to owners |
72,342.4 | 68,104.0 | 55,682.1 | |||||||||
Non-controlling interests |
167.7 | 409.4 | 4,584.0 | |||||||||
|
|
|
|
|
|
|||||||
Total interest attributable to shareholders’ equity |
72,510.1 |
68,513.3 |
60,266.1 |
|||||||||
|
|
|
|
|
|
B. |
Significant Changes |
ITEM 9. |
THE OFFER AND LISTING |
A. |
Offer and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
ITEM 10. |
ADDITIONAL INFORMATION |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
C. |
Material Contracts |
D. |
Exchange Controls |
(i) |
Prior authorization of the Argentine Central Bank is required for the access to the FX Market for the purchase of foreign currency: |
• | For portfolio investment purposes for more than $200 per calendar month by individuals; |
• | For portfolio investment purposes by legal entities, local governments, funds and trusts; |
• | By non-Argentine residents, except for certain exemptions; |
• | For payment of dividends and earnings, except that no such prior authorization is required for the payment of profits and dividends as from January 17, 2020, in an amount that (including the amount of the payment being made at the time of the access) do not exceeds 30% of the value of new capital contributions of foreign direct investments. These contributions must be made to the local company and must be transferred to Argentina and sold for Pesos through the foreign exchange market as from such date. |
• | For the pre-payment of principal and interest on foreign financial indebtedness with an anticipation of more than three business days in advance to the scheduled maturity dates, unless certain conditions are met; |
• | For the pre-payment of indebtedness for the import of goods and services, except for certain exemptions; |
• | For the payment of services with related foreign parties, except for certain exemptions, and; |
• | Until June 30, 2022 for the payment of principal under foreign financial indebtedness with related parties, except for certain exemptions. |
(ii) |
The proceeds of the disbursements of foreign financial loans incurred since September 1, 2019 must be transferred into Argentina and converted into Pesos through the FX Market in order for the Argentine resident debtor to have access to the FX Market for the payment of principal and interests under such foreign financial loan on their scheduled maturity |
(iii) |
It is prohibited to access the FX market for the purchase of foreign currency for the payment of local debts and other obligations incurred in foreign currency between Argentine residents originated as of September 1, 2019, except, among others, in the case of obligations instrumented by means of public registries or deeds dated as of August 30, 2019. |
(iv) |
The proceeds from the collections of foreign currency by Argentine residents out of Argentina for the export of the following goods since September 2, 2019 are subject to mandatory transfer into Argentina and conversion into Pesos through the FX Market, within the terms described in each case, computed from the shipment date: |
• | 15 consecutive days for crops and soybean oil; |
• | 30 consecutive days for hydrocarbons and derivatives; |
• | 60 consecutive days for exports between related parties not including the goods described above and for metal ores and precious metals; |
• | 180 consecutive days for all other goods; and |
• | 365 consecutive days for small exports under the EXPORTA SIMPLE program for medium and small companies with annual FOB exports of less than $600,000 and individual exports of less than $15,000 each. |
(v) |
The proceeds from the collection of foreign currency by Argentine residents out of Argentina for the export of services are subject to mandatory Repatriation within the five consecutive days computed from the date they are received. |
(vi) |
As a general rule, Argentine residents may access the FX Market for the payment of imports of goods. Different requirements apply for goods with customs entry registration and goods with pending customs entry registration. The Argentine importer may access the FX Market to pay imports of goods with customs entry registration registered in the import payment tracking system (“SEPAIMPO”, after its Spanish acronym), provided that certain requirements are met, including, among others, the payment is not made before the scheduled maturity date. Payments must be made to the foreign supplier. Goods with pending customs entry registration are subject to a special follow-up regime. In addition, the prior authorization of the Argentine Central Bank is required for the import of luxury goods such as luxury cars and motorbikes, and pearls and diamonds, among other luxury goods. |
(vii) |
Pursuant to Communication “A” 7001, dated April 30, 2020, as amended, in order to gain access to the FX Market for making any kind of payments, and in addition to applicable requirements, the Argentine Central Bank requires an affidavit from the requestor, (i) stating that it has not sold in Argentina securities settled against foreign currency or transferred securities to custody accounts out of Argentina within the immediately preceding 90 consecutive days; and (ii) committing not to sell in Argentina securities to be settled against foreign currency or to transfer securities to custody accounts out of Argentina within the immediately following 90 consecutive days. |
(viii) |
Communication “A” 7030 of the Argentine Central Bank, dated May 28, 2020, requires that, for purposes of accessing the FX Market for making payments of, among others things, imports of goods, services rendered by non-Argentine residents, interests in connection with the import of goods and services, dividends and other earnings distributions, principal and interest on financial debt, payment of debt securities with public registry in Argentina, or for making international portfolio investments or transactions with derivatives by legal entities, other purchases of foreign currency for specific allocation and premium, guarantees and payments on interest hedging transactions, the party will be required to file an affidavit (i) stating, that as of such date, all of such party’s holdings of foreign currency in Argentina are deposited with Argentine financial institutions and that it does not have foreign liquid disposable assets (including, among others, foreign currency, gold and savings and checking deposits in non-Argentine financial institutions) for an equivalent of more than USD$100,000; and (ii) committing to transfer into Argentina and settle for Pesos any foreign currency payments received outside of Argentina from the collection of loans granted to third parties after May 28, 2020, time deposits made after May 28, 2020, or the sale of any asset when the asset was acquired. |
(ix) |
On September 15, 2020, the Argentine Central Bank restricted the access to FX Market for the payment of principal under foreign financial debt with third parties (other than with international or multilateral credit organizations) in excess of US$2,000,000 per month in the aggregate with maturities between October 15, 2020 and June 30, 2022 to an amount equal to up to 40% of the amount originally due; and provided that the remaining unpaid principal balance is refinanced through a new foreign financial debt with an average life of at least two years, with certain limited exceptions. The Argentine Central Bank authorized the prepayment of principal and interest under foreign financial indebtedness in connection with the refinancing described in this paragraph for up to 45 consecutive days from the original stated maturity, subject to compliance with certain additional requirements. The Argentine Central Bank also allowed the precancellation of interests on foreign financial indebtedness when such precancellation is implemented in connection with the exchange of debt securities and certain additional requirements are met. In addition, pursuant to Communication “A” 7218, dated February 4, 2021, the Argentine Central Bank allowed Argentine residents to access the FX Market for the payment of principal and interest under debt securities registered outside Argentina and issued since February 5, 2021, and that are partially subscribed for in foreign currency in Argentina, subject to certain requirements. |
(x) |
Pursuant to Communication “A” 7030, the Argentine Central Bank provides that, until June 30, 2022, with certain limited exceptions, access to the FX Market for the payment of importing certain goods or the payment of principal under imports accounts payable will be subject to the prior approval of the Argentine Central Bank, except where, among other things, the party files an affidavit stating that the aggregate amount of payments of imports made by such party since January 1, 2020 (including the payment requested) does not exceed $250,000,000. Such amount is calculated as the aggregate amount of imports nationalized by the party between January 1, 2020 and the date immediately prior to the date of access to the FX Market, plus payments made for other imports not included in the forgoing calculation, less the amount of payments pending for imports with nationalization made between September 1, 2019 and December 31, 2019. |
(xi) |
The access to the FX Market for the purchase of foreign currency for any of the payments described above is subject to compliance with the foreign indebtedness information regime before the Argentine Central Bank. |
E. |
Taxation |
• |
at least 75% of its gross income is “passive income;” or |
• |
at least 50% of the average gross fair market value of its assets is attributable to assets that produce “passive income” or are held for the production of “passive income”. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
Service |
Rate | |
Issuance of ADSs ( i.e. ADS(s)-to-share(s) |
Up to US$0.05 per ADS issued | |
Cancellation of ADSs ( i.e. ADS(s)-to-share(s) |
Up to US$0.05 per ADS cancelled | |
Distribution of cash dividends or other cash distributions ( i.e. |
Up to US$0.05 per ADS held | |
Distribution of ADSs pursuant to share dividends, free share distributions or exercise of rights |
Up to US$0.05 per ADS held | |
Distribution of securities other than ADSs or rights to purchase additional ADSs ( i.e. spin-off) |
Up to US$0.05 per ADS held | |
Depositary Services |
Up to US$0.05 per ADS held |
• |
Fees for the transfer and registration of shares charged by the registrar and transfer agent for the shares in Argentina ( i.e. |
• |
Expenses incurred for converting foreign currency into U.S. dollars. |
• |
Expenses for cable, telex and fax, transmissions and for delivery of securities. |
• |
Fees and expenses incurred by the depositary bank in connection with compliance with exchange control regulations and other regulatory requirements applicable to ordinary shares, ADSs and ADRs. |
• |
Taxes and duties upon the transfer of securities ( i.e. |
• |
Fees and expenses incurred in connection with the delivery or servicing of shares on deposit. |
• |
Any applicable fees and penalties thereon. |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
A. |
Material Modifications to the Rights of Security Holders |
B. |
Material Modifications to the Rights of any Class of Registered Securities |
C. |
Withdrawal or Substitution of a Material Amount of the Assets Securing any Class of Registered Securities |
D. |
Changes in the Trustee or Paying Agents for any Registered Securities |
E. |
Use of Proceeds |
ITEM 15. |
CONTROLS AND PROCEDURES |
ITEM 16. |
[RESERVED] |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2021 |
2020 |
|||||||
(in thousands of Ps.) |
||||||||
Audit fees (1) (4) |
119,333.8 |
83,683.3 |
||||||
Audit related fees (2) (4) |
2,310.0 |
2,855.0 |
||||||
Tax fees (3) (4) |
950.5 |
644.9 |
||||||
Total (4) |
122,594.3 |
87,183.2 |
||||||
|
|
|
|
(1) |
Includes fees for professional services rendered by the principal accountant, in each fiscal year, for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements. It includes the audit of annual consolidated financial statements and the reviews of quarterly consolidated financial statements. |
(2) |
Includes fees for assurance and related services that are reasonably related to the performance of the audit or review of consolidated financial statements and not reported under previous category. These services include attestation services that are not required by regulation. |
(3) |
Includes fees for professional services rendered by our independent registered public accounting firm, in each fiscal year, for tax compliance, mainly related to expatriate services. |
(4) |
Nominal values not adjusted per inflation. |
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Period |
(a) Total Number of Shares (or Units) Purchased |
(b) Average Price per Share (or Units) |
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans of Programs |
||||||||||||
2021 |
Common Shares |
ADR |
Common Shares |
ADR |
Common Shares (*) |
|||||||||||
February (from 2-18 to 2-26) |
300,900 |
— |
174.16 |
— |
300,900 |
for up to Ps.750 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(i |
) | ||||||||
March (from 3-1 to 3-31) |
1,146,708 |
— |
175.13 |
— |
1,146,708 |
for up to Ps.750 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(i |
) | ||||||||
April (from 4-5 to 4- 30) |
913,200 |
— |
186.03 |
— |
913,200 |
for up to Ps.750 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(i |
) | ||||||||
May (from 5-3 to 5- 31) |
840,700 |
— |
200.72 |
— |
840,700 |
for up to Ps.750 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(i |
) | ||||||||
June (from 6-1 to 6-18) |
672,372 |
— |
235.19 |
— |
672,372 |
for up to Ps.750 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(i |
) | ||||||||
July (from 7-6 to 7-30) |
835,964 |
— |
266.08 |
— |
835,964 |
for up to Ps.975 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(ii |
) | ||||||||
August (from 8-2 to 8-31) |
1,068,600 |
— |
278.67 |
— |
1,068,600 |
for up to Ps.975 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(ii |
) | ||||||||
September (from 9-1 to 9-3) |
157,800 |
— |
276.43 |
— |
157,800 |
for up to Ps.975 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(ii |
) | ||||||||
September (from 9-28 to 9-30) |
162,750 |
— |
275.02 |
— |
162,750 |
for up to Ps.700 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(iii |
) | ||||||||
October (from 10-1 to 10-29) |
1,040,400 |
— |
275.92 |
— |
1,040,400 |
for up to Ps.700 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(iii |
) | ||||||||
November (until 11-26) |
1,129,800 |
— |
291.57 |
— |
1,129,800 |
for up to Ps.900 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(iv |
) | ||||||||
December (from 12-23 to 12-30) |
327,000 |
— |
267.99 |
— |
327,000 |
for up to Ps.900 million, or any lower amount resulting in such acquisition reaching 10% of our capital stock. |
(iv |
) |
(*) | Each ADR represents 5 common shares. |
(i) | On February 12, 2021, in accordance with Section 11 of Chapter I, Title II and Section 2, Chapter I, Title XII of the CNV Regulations (2013 revised version) our board of directors approved and we announced a share repurchase, in accordance with Section 64 of the LMC and the CNV Regulations. The plan’s purpose was to efficiently apply a portion of our company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share, with the additional possibility of allocating part of the acquired shares to implement specific compensation programs or plans. The share repurchase has the following terms and conditions: (a) the maximum amount to invest is up to Ps.750,000,000; (b) repurchased shares in treasury shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of the LMC, and all of the shares issued by our company are fully paid; (c) the price per share is up to Ps.245 per share in ByMA and up to US$ 8.0 per ADR in the NYSE; and (d) the period in which the acquisitions will be performed is a 90-day period which will be counted after one Argentine business day has elapsed following the date of disclosure of the relevant event informing the repurchase plan to the market and subject to any period renewal or extension approved by the board of directors, which will be duly informed. On May 18, 2021, our board resolved to extend the program for 45 additional days and keep the rest of the terms and conditions originally approved by the Board. This program expired on June 18, 2021. |
(ii) | On July 2, 2021, in accordance with Section 11 of Chapter I, Title II and Section 2, Chapter I, Title XII of the CNV Regulations (2013 revised version) our board of directors approved and we announced a share repurchase, in accordance with Section 64 of the LMC and the CNV Regulations. The plan’s purpose was to efficiently apply a portion of our company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share. The share repurchase has the following terms and conditions: (a) the maximum amount to invest is up to Ps.975,000,000; (b) repurchased shares in treasury shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of the LMC, and all of the shares issued by our company are fully paid; (c) the price per share is up to Ps.310 per share in ByMA and up to US$ 9.0 per ADR in the NYSE; and (d) the period in which the acquisitions will be performed is a 60-day period which will be counted after one Argentine business day has elapsed following the date of disclosure of the relevant event informing the repurchase plan to the market and subject to any period renewal or extension approved by the board of directors, which will be duly informed. This program expired on September 3, 2021. |
(iii) | On September 24, 2021, in accordance with Section 11 of Chapter I, Title II and Section 2, Chapter I, Title XII of the CNV Regulations (2013 revised version) our board of directors approved and we announced a share repurchase, in accordance with Section 64 of the LMC and the CNV Regulations. The plan’s purpose was to efficiently apply a portion of our cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share. The share repurchase has the following terms and conditions: (a) the maximum amount to invest is up to Ps.700,000,000; (b) repurchased shares in treasury shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of the LMC, and all of the shares issued by the our company are fully paid; (c) the price per share is up to Ps.340 per share in ByMA and up to US$ 9.5 per ADR in the NYSE; and (d) the period in which the acquisitions will be performed is a 60-day period which will be counted after one Argentine business day has elapsed following the date of disclosure of the relevant event informing the repurchase plan to the market and subject to any period renewal or extension approved by the board of directors, which will be duly informed. This program has expired on November 29, 2021. |
(iv) | On December 21, 2021, in accordance with Section 11 of Chapter I, Title II and Section 2, Chapter I, Title XII of the CNV Regulations (2013 revised version) our board of directors approved and announced a share repurchase, in accordance with Section 64 of the LMC and the CNV Regulations. The plan’s purpose was to efficiently apply a portion of the our cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share, with the additional possibility of allocating part of the acquired shares to implement specific compensation programs or plans. The share repurchase has the following terms and conditions: (a) the maximum amount to invest is up to Ps.900,000,000; (b) repurchased shares in treasury shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of the LMC, and all of the shares issued by the our company are fully paid; (c) the price per share is up to Ps.310 per share in ByMA and up to US$ 7.5 per ADR in the NYSE; and (d) the period in which the acquisitions will be performed is a 60-day period which will be counted after one Argentine business day has elapsed following the date of disclosure of the relevant event informing the repurchase plan to the market and subject to any period renewal or extension approved by the board of directors, which will be duly informed. Under this program, we additionally bought 2,029,326 common shares and 10,069 ADRs. This program has expired on February 20, 2021. |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
• | Director Independence |
• | Executive Sessions non-management directors of domestic listed companies to meet at regularly scheduled executive sessions without management being present. There is no similar requirement under Argentine law, however the recently enacted new Code of Corporate Governance of the CNV includes as a good practice the holding of board of directors meetings where only non-executive directors (including independent Directors) participate regularly. Loma Negra has adopted such practice. Under Argentine law there is a requirement that the board of directors meets at least once every three (3) months. |
• | Audit Committee 10A-3 and have at least one member with requisite accounting or related financial management expertise and each member of the audit committee must satisfy the independence and financial literacy set forth in the NYSE rules. As a foreign private issuer, we are only required to comply with Rule 10A-3. Pursuant to the LMC, and its corresponding regulations, listed companies in Argentina are required to have an audit committee consisting of at least three members of our board of directors, the majority of which must be independent directors. We have elected to voluntarily comply with all financial management expertise, independence and financial literacy requirements of the NYSE. The Audit Committee has a written charter describing its duties and responsibilities. |
• | Compensation and Nominating/Corporate Governance Committees non-independent directors. On May 9, 2019 the board of directors decided to create the following Committees: (i) Results, Finance and Strategy Committee; (ii) People and Governance Committee; and (iii) Risk and Reputation Committee. For more information, see “Item 6 C. Committees of the Board of Directors |
• | Shareholder Approval of Equity Compensation Plans. |
• | Corporate Governance Guidelines |
• | Code of Business Conduct and Ethics http://www.lomanegra.com . |
ITEM 16H. |
MINE SAFETY DISCLOSURE |
ITEM 16I. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
* | Filed herewith. |
** | Furnished herewith. |
+ | Management contract or compensatory plan, contract or arrangement. |
Date: April 29, 2022 | Loma Negra C.I.A.S.A. | |||||
[/s/ Sergio D. Faifman] | ||||||
Name: Sergio D. Faifman | ||||||
Title: Chief Executive Officer | ||||||
[/s/ Marcos I. Gradin] | ||||||
Name: Marcos I. Gradin | ||||||
Title: Chief Financial Officer |
Loma Negra Compañía Industrial Argentina Sociedad Anónima Consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019 |
F-1 |
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F-2 |
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F-3 |
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F-5 |
||||
F-8 |
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F-9 |
Continuing operations |
For the year ended December 31, |
|||||||||||||
Notes |
2021 |
2020 |
2019 |
|||||||||||
Revenues |
5 |
|||||||||||||
Cost of sales |
6 |
( |
) |
( |
) |
( |
) | |||||||
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|
|||||||||
Gross profit |
||||||||||||||
Losses from interest in companies |
19 |
— |
( |
) |
— |
|||||||||
Selling and administrative expenses |
7 |
( |
) |
( |
) |
( |
) | |||||||
Impairment of property, plant and equipment |
13 |
( |
) |
( |
) |
|||||||||
Other gains and losses |
8 |
|||||||||||||
Tax on debits and credits to bank accounts |
9 |
( |
) |
( |
) |
( |
) | |||||||
FINANCIAL RESULTS, NET |
||||||||||||||
Exchange rate differences |
10 |
( |
) | |||||||||||
Gain on net monetary position |
||||||||||||||
Financial income |
10 |
|||||||||||||
Financial expenses |
10 |
( |
) |
( |
) |
( |
) | |||||||
|
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|
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Profit before tax |
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INCOME TAX EXPENSE |
||||||||||||||
Current |
11 |
( |
) |
( |
) |
( |
) | |||||||
Deferred |
11 |
( |
) |
( |
) | |||||||||
|
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NET PROFIT FOR THE YEAR FROM CONTINUED OPERATIONS |
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DISCONTINUING OPERATIONS |
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Net profit for the year from discontinued operations |
41 |
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NET PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
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Items to be reclassified through profit and loss: |
||||||||||||||
Exchange differences on translating foreign operations |
( |
) |
( |
) | ||||||||||
|
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|
|||||||||
Total other comprehensive income |
( |
) |
( |
) | ||||||||||
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Total comprehensive income |
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Net income attributable to: |
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Owners of the parent company |
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Non-controlling interest |
( |
) |
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NET PROFIT |
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Total comprehensive income attributable to: |
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Owners of the parent company |
||||||||||||||
Non-controlling interest |
( |
) |
( |
) |
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Total comprehensive income |
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|
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|
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Earnings per share (basic and diluted): |
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From continued operations (in pesos) |
12 |
|||||||||||||
From continued and discontinued operations (in pesos) |
12 |
As of December 31, |
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Notes |
2021 |
2020 |
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ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Property, plant and equipment |
13 |
|||||||||||
Right of use assets |
14 |
|||||||||||
Intangible assets |
15 |
|||||||||||
Investments |
16 |
|||||||||||
Goodwill |
17 |
|||||||||||
Inventories |
18 |
|||||||||||
Other receivables |
20 |
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|
|
|
|
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Total non-current assets |
||||||||||||
|
|
|
|
|||||||||
Current assets |
||||||||||||
Inventories |
18 |
|||||||||||
Other receivables |
20 |
|||||||||||
Trade accounts receivable |
21 |
|||||||||||
Investments |
16 |
|||||||||||
Cash and banks |
22 |
|||||||||||
|
|
|
|
|||||||||
Total current assets |
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|
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Total assets |
||||||||||||
|
|
|
|
As of December 31, |
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Notes |
2021 |
2020 |
||||||||||
SHAREHOLDERS’ EQUITY AND LIABILITIES |
||||||||||||
Capital stock and other capital related accounts |
23 |
|||||||||||
Reserves |
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Retained earnings |
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|
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|
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Equity attributable to owners of the parent company |
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|
|
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|
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Non-controlling interest |
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|
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|
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Total shareholders’ equity |
||||||||||||
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||
Non-current liabilities |
||||||||||||
Borrowings |
25 |
|||||||||||
Lease liabilities |
14 |
|||||||||||
Accounts payable |
26 |
|||||||||||
Provisions |
27 |
|||||||||||
Salaries and social security contributions |
||||||||||||
Other liabilities |
29 |
|||||||||||
Deferred tax liabilities |
11 |
|||||||||||
|
|
|
|
|||||||||
Total non-current liabilities |
||||||||||||
|
|
|
|
|||||||||
Current liabilities |
||||||||||||
Borrowings |
25 |
|||||||||||
Lease liabilities |
14 |
|||||||||||
Accounts payable |
26 |
|||||||||||
Advances from customers |
||||||||||||
Salaries and social security contributions |
||||||||||||
Tax liabilities |
28 |
|||||||||||
Other liabilities |
29 |
|||||||||||
|
|
|
|
|||||||||
Total current liabilities |
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|
|
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|
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Total liabilities |
||||||||||||
|
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Total shareholders’ equity and liabilities |
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|
|
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|
Owners’ contributions |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital stock |
Treasury shares |
Capital adjustments |
Treasury shares adjustments |
Share premium |
Treasury stock shares premium |
Merger premium |
Cost of treasury stock |
Share-based payment plans (Note 23) |
Legal reserve |
Environmental reserve |
Optional Reserve for Future Dividends |
Retained earnings |
Shareholders’ equity attributable to owners of the parent company |
Non-controlling interest |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2021 |
— |
— |
— |
— |
— |
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Appropriation as per Annual Shareholders’ Meeting held April 2 0 , 2021: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Optional reserve |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock (Note 19) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment plans (Note 23) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income for the year |
( |
) |
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|||||||||||||||||||||||||||||||||
Balances as of December 31, 2021 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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(1) |
The reserve purpose was changed from “Optional reserve” to “Optional reserve for future dividends” by the Shareholders’ meeting held on April 20, 2021. |
Owners’ contributions |
Other comprehensive income |
|||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock |
Capital adjustments |
Share premium |
Merger premium |
Legal reserve |
Environmental reserve |
Optional reserve |
Future dividends reserve |
Exchange differences on translation of foreign operations gain/ (losses) |
Retained earnings |
Shareholders’ equity attributable to owners of parent company |
Non-controlling interest |
Total |
||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2020 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation as per Annual Shareholders’ Meeting held on April 16, 2020: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Optional reserve |
( |
) |
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Appropriation as per Annual Shareholders’ Meeting held on September 30, 2020: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution of dividends |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Reclassification of exchange differences on translation of foreign operations (Note 41) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of non-controlling interest due to sale of subsidiary (Note 41) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution to Ferrosur Roca S.A.—Minority shareholders |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income for the year |
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Balances as of December 31, 2020 |
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Owners contributions |
Accumulated other comprehensive income |
|||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock |
Capital adjustments |
Share premium |
Merger premium |
Legal reserve |
Environmental reserve |
Optional reserve |
Future dividends reserve |
Exchange differences on translation of foreign operations gain/ (losses) |
Retained earnings |
Shareholders’ equity attributable to owners of the parent company |
Non-controlling interest |
Total |
||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2019 |
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|||||||||||||||||||||||||||
Appropriation as per Annual Shareholders’ Meeting held on April 25, 2019: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Optional reserve |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Net income for the year |
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Balance as of December 31, 2019 |
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2021 |
2020 |
2020 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||
Net profit for the year from continuing operations |
||||||||||||
Net profit for the year from discontinued operations |
||||||||||||
Net profit for the year |
||||||||||||
Adjustments to reconcile net profit to net cash generated by operating activities |
||||||||||||
Income tax expense |
||||||||||||
Depreciation and amortization |
||||||||||||
Provisions |
( |
) |
||||||||||
Exchange rate differences |
( |
) |
( |
) |
( |
) | ||||||
Interest expense |
||||||||||||
Investment losses recognized |
||||||||||||
Gain (loss) on disposal of property, plant and equipment |
( |
) |
( |
) | ||||||||
Income from the operation of Yguazú Cementos S.A. (Note 41) |
( |
) |
( |
) | ||||||||
Impairment of property, plant and equipment |
||||||||||||
Recognition of allowance for other doubtful receivables |
||||||||||||
Share-based payments |
||||||||||||
Changes in operating assets and liabilities |
||||||||||||
Inventories |
||||||||||||
Other receivables |
( |
) |
||||||||||
Trade accounts receivable |
( |
) |
( |
) |
( |
) | ||||||
Advances from customers |
( |
) | ||||||||||
Accounts payable |
( |
) |
||||||||||
Salaries and social security contributions |
||||||||||||
Provisions |
( |
) |
( |
) |
( |
) | ||||||
Tax liabilities |
( |
) |
||||||||||
Other liabilities |
( |
) |
||||||||||
Gain on net monetary position |
( |
) |
( |
) |
( |
) | ||||||
Income tax paid |
( |
) |
( |
) |
( |
) | ||||||
Net cash generated by continuing operating activities |
||||||||||||
Net cash generated by discontinued operating activities |
— |
|||||||||||
Net cash generated by operating activities |
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||
Proceeds from sale of interest in Yguazú Cementos S.A. (Note 41) |
||||||||||||
Proceeds from disposal of property, plant and equipment |
||||||||||||
Payments to acquire property, plant and equipment |
( |
) |
( |
) |
( |
) | ||||||
Payments to acquire intangibles assets |
( |
) |
( |
) |
( |
) | ||||||
Payments to acquire investments |
( |
) |
||||||||||
Proceeds from maturity of investments |
||||||||||||
Contributions to FFFSFI |
( |
) |
( |
) |
( |
) | ||||||
Net cash used in continuing investing activities |
( |
) |
( |
) |
( |
) | ||||||
Net cash used in discontinued investing activities |
— |
( |
) |
( |
) | |||||||
Net cash used in investing activities |
( |
) |
( |
) |
( |
) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||||
Proceeds from borrowings |
||||||||||||
Interest paid |
( |
) |
( |
) |
( |
) | ||||||
Dividends paid |
( |
) |
||||||||||
Lease payments |
( |
) |
( |
) |
( |
) | ||||||
Repayment of borrowings |
( |
) |
( |
) |
( |
) | ||||||
Repurchase of common stock |
( |
) |
||||||||||
Net cash (used in) generated by continuing financing activities |
( |
) |
( |
) |
||||||||
Net cash used in discontinued financing activities |
— |
( |
) |
( |
) | |||||||
Net cash (used in) generated by financing activities |
( |
) |
( |
) |
||||||||
Netdecrease in cash and cash equivalents |
( |
) |
( |
) |
( |
) | ||||||
Less: Net effect of discontinued operation |
— |
|||||||||||
Cash and cash equivalents at the beginning of the year |
||||||||||||
Effect of restating in constant currency of cash and cash equivalents |
( |
) |
( |
) |
( |
) | ||||||
Effects of exchange rate differences on cash and cash equivalents in foreign currency |
( |
) |
||||||||||
Cash and cash equivalents at the end of the year |
||||||||||||
• | Registration of the bylaws: August 5, 1926, under No 38, Book 46. |
• | Last amendment registered to the bylaws: July 13, 2021, under No 10,675, book 103, Corporations Volume. |
• | Correlative Number of Registration with the Inspección General de Justicia (local regulatory agency): 1,914,357. |
• | Tax identification number (CUIT): 30-50053085-1. |
• | Date of expiration: July 3, 2116. |
• | Level 1 quoted (unadjusted) prices in active markets for identical assets and liabilities to which the entity has access as at the measurement date; |
• | Level 2 valuation techniques for which the lowest level input that is significant to their value measurement is directly or indirectly observable; and |
• | Level 3 valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. |
a) | expects to realize the asset or intends to sell or consume it during its normal operating cycle; |
b) | holds the asset primarily for the purpose of trading; |
c) | expects to realize the asset within twelve months after the end of the reporting period; or |
d) | the asset is cash or cash equivalent unless it is restricted and cannot be exchanged or used to settle a liability for at least twelve months after the end of the reporting period. |
a) | expects to settle the liability during its normal operating cycle; |
b) | holds the liability primarily for the purpose of trading; |
c) | the liability is due to be settled within twelve months after the end of the reporting period; or |
d) | fails to have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. |
• | IFRS 3 - Reference to the Conceptual Framework |
• | IAS 16 Proceeds before intended use of Property, plant and equipment |
• | IAS 37 Cost of Fulfilling an Onerous Contract |
• | IFRS 1 First-time Adoption of IFRS by a subsidiary |
• | IFRS 9 Fees in the ‘10 per cent’ test for derecognition of financial liabilities |
• | IFRS 16 Lease Incentives |
• | IAS 41 Taxation in Fair Value Measurements |
• | IAS 1 Classification of Liabilities as Current or Non-Current |
• | IFRS 17 Insurance Contracts |
• | IAS 1 and IFRS 2 Practice Statement - Disclosure of Accounting Policies |
• | IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors |
• | IAS 12 Income Tax |
• | IFRS 9, IFRS 7, IFRS 4, IFRS 16, and IAS 39 Interest Rate Benchmark Reform |
• | The Group’s voting right ownership percentage vis-à-vis |
• | Potential voting rights held by the Group, other shareholders or other parties; |
• | Rights arising from contractual arrangements; and |
• | Any and all additional events or circumstances that indicate that the Group has, or fails to have, the current ability to direct the relevant activities of the investee when decisions need to be made, including voting patterns at previous shareholders’ meetings. |
Subsidiary |
Main business |
Country |
% of direct and indirect interest as of |
|||||||||||||||
December 31, 2021 |
December 31, 2020 |
December 31, 2019 |
||||||||||||||||
Cofesur S.A.U. |
||||||||||||||||||
Ferrosur Roca S.A. (1) |
||||||||||||||||||
Recycomb S.A.U. |
(1) | Directly controlled by Cofesur S.A.U. |
2021 |
2020 |
|||||||
Current assets |
||||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Shareholders’ equity attributable to owners of the parent company |
||||||||
Non-controlling interest |
2021 |
2020 |
2019 |
||||||||||
Revenues |
||||||||||||
Financial results, net |
( |
) |
( |
) | ||||||||
Depreciation |
( |
) |
( |
) |
( |
) | ||||||
Income tax |
( |
) |
||||||||||
Net losses for the year (*) |
( |
) |
( |
) |
( |
) |
(*) | As of December 31, 2021, 2020, and 2019 net losses include an income for elimination of intragroup transactions of |
2021 |
2020 |
2019 |
||||||||||
Net cash generated by operating activities |
||||||||||||
Net cash generated by (used in) investing activities |
( |
) |
( |
) |
||||||||
Net cash generated by/(used in) financing activities |
( |
) |
( |
) | ||||||||
Effects of the exchange rate differences on cash and cash equivalents in foreign currency |
( |
) |
( |
) |
• | Raw materials and spare parts: at the acquisition cost according to the Weighted Average Price method. Cost is calculated for each of the plants owned by the Group. |
• | Finished goods and work in progress: at the acquisition cost of direct materials and labor plus a proportion omanufacturing overheads based on normal operating capacity, but excluding borrowing costs. Cost is calculated for each of the plants owned by the Group. |
• | Financial Assets at amortized cost |
• | Financial assets at fair value through profit or loss |
i) | Classification as debt or equity: |
ii) | Equity instruments: |
iii) | Financial liabilities: |
a) | It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; or |
b) | It is part of a portfolio of identified financial instruments that are managed together and, at a later date, there arises evidence for the first time of a recent actual pattern of short-term profit taking; or |
c) | It is a derivative that has not been designated and is not effective as a hedging instrument or financial guarantee. |
• | Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or |
• | Financial liabilities are part of a group of financial assets or liabilities or both, which is managed and whose performance is assessed on the basis of fair value, in accordance with the Group’s documented risk management or investment strategy, and information about the Group is provided internally on that basis; or |
• | They are part of a contract containing one or more embedded derivatives, and IFRS 9 allows the entire combined contract to be carried at fair value through profit and loss. |
Useful life | ||
Fields | ||
Quarries - Stripping cost | ||
Buildings | ||
Machinery | ||
Furniture and fixtures | ||
Tools | ||
Software | ||
Transportation and load vehicles |
2021 |
2020 |
2019 |
||||||||||
Sale of products |
||||||||||||
- Domestic market |
||||||||||||
- External customers |
||||||||||||
Services rendered |
||||||||||||
(-) Bonuses / Discounts |
( |
) |
( |
) |
( |
) | ||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||||||||||||||
Inventories at the beginning of the year |
||||||||||||||||||||||||
Finished products |
||||||||||||||||||||||||
Products in progress |
||||||||||||||||||||||||
Raw materials, materials, fuel, and spare parts |
||||||||||||||||||||||||
Purchases and production expenses for the year |
||||||||||||||||||||||||
Inventories at the end of the year |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Finished products |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Products in progress |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Raw materials, materials, fuel, and spare parts |
( |
( |
) |
( |
) |
|||||||||||||||||||
Cost of sales |
||||||||||||||||||||||||
2021 |
2020 |
2019 |
||||||||||
Fees and compensation for services |
||||||||||||
Salaries, wages, and social security contributions |
||||||||||||
Transport and traveling expenses |
||||||||||||
Data processing |
||||||||||||
Taxes, duties, contributions, and commissions |
||||||||||||
Depreciation and amortization |
||||||||||||
Preservation and maintenance costs |
||||||||||||
Communications |
||||||||||||
Leases |
||||||||||||
Employee benefits |
||||||||||||
Water, natural gas, and energy services |
||||||||||||
Freight |
||||||||||||
Fuels |
||||||||||||
Insurance |
||||||||||||
Packaging |
||||||||||||
Electric power |
||||||||||||
Contractors |
||||||||||||
Tolls |
||||||||||||
Canon (concession fee) |
||||||||||||
Security |
||||||||||||
Others |
||||||||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Managers and directors’ compensation fees |
||||||||||||
Fees and compensation for services |
||||||||||||
Salaries, wages, and social security contributions |
||||||||||||
Transport and traveling expenses |
||||||||||||
Data processing |
||||||||||||
Advertising expenses |
||||||||||||
Taxes, duties, contributions, and commissions |
||||||||||||
Depreciation and amortization |
||||||||||||
Preservation and maintenance |
||||||||||||
Communications |
||||||||||||
Leases |
||||||||||||
Employee benefits |
||||||||||||
Water, natural gas, and energy services |
||||||||||||
Freight |
||||||||||||
Insurance |
||||||||||||
Allowance for doubtful accounts |
||||||||||||
Security |
||||||||||||
Others |
||||||||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Gain (loss) on disposal of property, plant and equipment |
( |
) |
||||||||||
Donations |
( |
) |
( |
) |
( |
) | ||||||
Technical services and assistance |
||||||||||||
Personal asset tax – Substitute taxpayer |
( |
) |
( |
) | ||||||||
Gain over tax credit assignment |
||||||||||||
Contingencies |
( |
) |
( |
) |
( |
) | ||||||
Leases |
||||||||||||
Service fee from ADS Depositary bank |
— |
|||||||||||
Collection of loss |
— |
|||||||||||
Miscellaneous |
( |
) |
||||||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Exchange rate differences: |
||||||||||||
Profit from operations with securities (Note 41) |
— |
|||||||||||
Foreign exchange gains |
||||||||||||
Foreign exchange losses |
( |
) |
( |
) |
( |
) | ||||||
Total |
( |
) | ||||||||||
Financial income |
||||||||||||
Unwinding of discounts on provisions and liabilities |
||||||||||||
Total |
||||||||||||
Financial expenses |
||||||||||||
Interest on borrowings |
( |
) |
( |
) |
( |
) | ||||||
Interest from short-term investments |
( |
) |
( |
) |
( |
) | ||||||
Tax interest |
( |
) |
( |
) |
( |
) | ||||||
Interest on leases |
( |
) |
( |
) |
( |
) | ||||||
Unwinding of discounts on receivables |
— |
( |
) |
( |
) | |||||||
Others |
( |
) |
( |
) |
( |
) | ||||||
Total |
( |
) |
( |
) |
( |
) | ||||||
2021 |
2020 |
2019 |
||||||||||
Profit before income tax expenses |
||||||||||||
Profit before income tax from discontinued operations |
||||||||||||
Accounting income before income tax |
||||||||||||
Income tax rate |
% |
% |
% | |||||||||
Income tax a statutory tax ratet the |
( |
) |
( |
) |
( |
) | ||||||
Adjustments for calculation of the effective income tax: |
||||||||||||
Effect of derecognition of Yguazú Cementos S.A. |
||||||||||||
Impairment of tax losses recognized in Ferrosur Roca S.A. |
( |
) |
( |
) |
— |
|||||||
Effects of the fiscal revaluation and inflation adjustments for accounting and tax purposes |
( |
) |
||||||||||
Effect of change in tax rate |
( |
) |
( |
) | ||||||||
Other non-taxable income or non-deductible expense, net |
( |
) |
( |
) | ||||||||
Total income tax |
( |
) |
( |
) |
( |
) | ||||||
Income tax |
||||||||||||
Current |
( |
) |
( |
) |
( |
) | ||||||
Deferred |
( |
) |
( |
) | ||||||||
Total |
( |
) |
( |
) |
( |
) | ||||||
Income tax included in the statement of other comprehensive income |
( |
) |
( |
) |
( |
) | ||||||
Income tax from discontinued operations |
( |
) |
( |
) |
2021 |
2020 |
2019 |
||||||||||
Assets |
||||||||||||
Loss carryforward |
||||||||||||
Leases |
||||||||||||
Provisions |
||||||||||||
Other receivables |
— |
|||||||||||
Accounts Payable |
— |
— |
||||||||||
Salaries and social security contributions |
— |
|||||||||||
Other liabilities |
— |
|||||||||||
Trade receivables |
||||||||||||
Others |
||||||||||||
Total deferred tax assets |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Liabilities |
||||||||||||
Investments |
( |
) |
( |
) |
( |
) | ||||||
Other receivables |
— |
( |
) | |||||||||
Property, plant and equipment |
( |
) |
( |
) |
( |
) | ||||||
Borrowings |
( |
) |
( |
) |
( |
) | ||||||
Inventories |
( |
) |
( |
) |
( |
) | ||||||
Other liabilities |
— |
( |
) | |||||||||
Taxes payable (tax inflation adjustment) |
( |
) |
( |
) |
( |
) | ||||||
Others |
( |
) |
( |
) |
( |
) | ||||||
Total deferred tax liabilities |
( |
) |
( |
) |
( |
) | ||||||
Total net deferred tax liabilities |
( |
) |
( |
) |
( |
) | ||||||
2021 |
2020 |
2019 |
||||||||||
Subsidiaries |
( |
) | ||||||||||
Others |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
( |
) | ||||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
Profit attributable to the owners of the parent company used in the calculation of basic and diluted earnings per share |
||||||||||||
- From continued operations |
||||||||||||
|
|
|
|
|
|
|||||||
- Net income for the year |
||||||||||||
|
|
|
|
|
|
|||||||
Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share (in thousands of shares) |
||||||||||||
|
|
|
|
|
|
|||||||
Basic and diluted earnings per share |
||||||||||||
- From continued operations (in pesos) |
||||||||||||
|
|
|
|
|
|
|||||||
- From continued and discontinued operations (in pesos) |
||||||||||||
|
|
|
|
|
|
2021 |
2020 |
|||||||
Cost |
||||||||
Accumulated depreciation |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Lands |
||||||||
Plant and buildings |
||||||||
Machinery, equipment and spare parts |
||||||||
Transportation and load vehicles |
||||||||
Furniture and fixtures |
||||||||
Quarries |
||||||||
Tools |
||||||||
Construction in process |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
Lands |
Buildings |
Machinery, equipment and spare parts |
Transportation and load vehicles |
Furniture and fixtures |
Quarries |
Tools |
Works in process |
Total |
||||||||||||||||||||||||||||
Balance as of January 1, 2020 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Additions |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||
Disposal |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
— |
( |
) | ||||||||||||||||||||||
Transfers |
( |
) |
— |
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance as of December 31, 2020 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Additions |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||
Disposal |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
— |
( |
) | |||||||||||||||||||||||
Transfers |
— |
( |
) |
— |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance as of December 31, 2021 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
Machinery, equipment and spare parts |
Transportation and load vehicles |
Furniture and fixtures |
Quarries |
Tools |
Total |
||||||||||||||||||||||
Balance as of January 1, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Impairment |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Disposal |
— |
|||||||||||||||||||||||||||
Depreciation |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of December 31, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Impairment |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Disposal |
— |
— |
||||||||||||||||||||||||||
Depreciation charge |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of December 31, 2021 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
2020 |
|||||||
Lease liabilities: |
||||||||
As of the beginning of the year |
||||||||
Additions |
||||||||
Financial restatements |
||||||||
Foreign Exchange gain /(losses) |
( |
) |
||||||
Decrease |
( |
) |
||||||
Payments |
( |
) |
( |
) | ||||
|
|
|
|
|||||
As of the end of the year |
||||||||
|
|
|
|
|||||
Right of use assets: |
||||||||
As of the beginning of the year |
||||||||
Additions |
||||||||
Decrease |
( |
) |
||||||
Depreciation |
( |
) |
( |
) | ||||
|
|
|
|
|||||
As of the end of the year |
||||||||
|
|
|
|
2021 |
2020 |
|||||||
Software |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
Cost: |
Software |
|||
Balance as of January 1, 2020 |
||||
Additions |
||||
|
|
|||
Balance as of January 1, 2020 |
||||
Additions |
||||
|
|
|||
Balance as of January 1, 2021 |
||||
|
|
|||
Accumulated amortization: |
||||
Balance as of January 1, 2020 |
( |
) | ||
Amortization |
( |
) | ||
|
|
|||
Balance as of January 1, 2020 |
( |
) | ||
Amortization |
( |
) | ||
|
|
|||
Balance as of January 1, 2021 |
( |
) | ||
|
|
2021 |
2020 |
|||||||
Non-Current |
||||||||
Investments in other companies: |
||||||||
- Cementos del Plata S.A. |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Current |
||||||||
Short-term investments: |
||||||||
- Mutual fund in pesos |
||||||||
- T i me |
||||||||
- Government securities in pesos |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2021 |
2020 |
|||||||
Cost |
||||||||
Recycomb S.A.U. |
||||||||
Total |
||||||||
2021 |
2020 |
|||||||
Non-Current |
||||||||
Spare Parts |
||||||||
Allowance for obsolete inventories |
( |
) |
( |
) | ||||
Total |
||||||||
Current |
||||||||
Finished products |
||||||||
Production in progress |
||||||||
Raw materials, materials and spare parts |
||||||||
Fuels |
||||||||
Total |
||||||||
2021 |
2020 |
|||||||
Related parties: |
||||||||
InterCement Brasil S.A. |
||||||||
Accounts payable |
( |
) |
( |
) | ||||
InterCement Trading e Inversiones S.A. |
||||||||
Other receivables |
||||||||
Accounts payable |
( |
) |
( |
) | ||||
Intercement Participações S.A. |
||||||||
Other receivables |
||||||||
Accounts payable |
( |
) |
( |
) |
2021 |
2020 |
|||||||
Other receivables |
||||||||
Accounts payable |
( |
) |
( |
) |
2021 |
2020 |
2019 |
||||||||||
InterCement Brasil S.A. - purchases of goods and services |
( |
) |
||||||||||
InterCement Trading e Inversiones S.A. - services provided |
||||||||||||
InterCement Portugal S.A. - services received |
( |
) |
||||||||||
Intercement Participações S.A. - services received |
( |
) |
( |
) |
— |
|||||||
Intercement Participações S.A. - services provided |
— |
2021 |
2020 |
|||||||
Non-Current |
||||||||
Advances to suppliers |
||||||||
Receivable for sale of interest in Yguazú Cementos S.A. (Note 41) |
— |
|||||||
Tax credits |
||||||||
Contributions to the Trust Fund to Strengthen the Inter-urban Railroad System (F.F.F.S.F.I.) |
||||||||
Prepaid expenses |
||||||||
Guarantee deposits |
||||||||
Miscellaneous |
— |
|||||||
Subtotal |
||||||||
Allowance for other doubtful accounts |
( |
) |
( |
) | ||||
Total |
||||||||
Current |
||||||||
Turnover tax credits |
||||||||
Receivable for sale of interest in Yguazú Cementos S.A. (Note 41) |
||||||||
Related party receivables (Note 19) |
||||||||
Prepaid expenses |
||||||||
Guarantee deposits |
||||||||
Reimbursements receivable |
||||||||
Advance payments to suppliers |
||||||||
Salaries advances and loans to employees |
||||||||
Receivables from sales of property, plant and equipment |
||||||||
Miscellaneous |
||||||||
Total |
||||||||
2021 |
2020 |
|||||||
Accounts receivable |
||||||||
Accounts receivable in litigations |
||||||||
Notes receivable |
||||||||
Foreign customers |
||||||||
Subtotal |
||||||||
Allowance for doubtful accounts |
( |
) |
( |
) | ||||
Total |
||||||||
2021 |
2020 |
|||||||
To expire |
||||||||
Past due: |
||||||||
0 to 30 days |
||||||||
31 to 60 days |
||||||||
61 to 90 days |
||||||||
More than 90 days |
||||||||
Total |
||||||||
2021 |
2020 |
|||||||
Past due: |
||||||||
0 to 30 days |
||||||||
31 to 60 days |
||||||||
61 to 90 days |
||||||||
More than 90 days |
||||||||
Total |
||||||||
Average age of overdue balances (in days) |
2021 |
2020 |
|||||||
Past due: |
||||||||
More than 90 days |
||||||||
Total |
||||||||
Balance as of January 1, 2020 |
||||
Increases |
||||
Decreases (*) |
( |
) | ||
Balance as of December 31, 2020 |
||||
Increases |
||||
Decreases (*) |
( |
) | ||
Balance as of December 31, 2021 |
||||
(*) | Includes allocation of provisions for specific purposes and inflation adjustment effect. |
2021 |
2020 |
|||||||
In Pesos |
||||||||
In Dollars |
||||||||
In Reales |
— |
|||||||
In Euros |
||||||||
Total |
||||||||
2021 |
2020 |
|||||||
Capital stock |
||||||||
Capital adjustment |
||||||||
Treasury shares |
( |
) |
||||||
Share premium |
||||||||
Merger premium |
||||||||
Share-based payment plans |
||||||||
Total |
||||||||
The issued, paid-in and registered capital stock consists of: |
||||||||
Common stock with a face value of $ |
||||||||
and entitled to paid-in (in thousands) |
||||||||
• | Approved on February 12, 2021, for a period of |
• | Approved on July 2, 2021, for a period of |
• | Approved on September 24, 2021, for a period of |
• | Approved on December 21, 2021, for a period of |
2021 |
2020 |
|||||||
Accrual for translation of operations in foreign operations |
||||||||
Balance at the beginning of the year |
||||||||
Foreign exchange losses due to translation of operations in foreign currencies |
( |
) | ||||||
Reclassification to foreign exchange gains of items previously recognized in other comprehensive income |
( |
) | ||||||
|
|
|
|
|||||
Balance at the end of the year |
||||||||
|
|
|
|
2021 |
2020 |
|||||||
Borrowings |
||||||||
- In foreign currency |
||||||||
- In local currency |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Non-current borrowings |
||||||||
Current borrowings |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2021 |
2020 |
|||||||||||||||||||
Re. |
Company |
Rate |
Last maturity date |
Amount |
Amount |
|||||||||||||||
Borrowings in foreign currency - USD |
||||||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(1 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(2 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China |
(2 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Industrial and Commercial Bank of China (Dubai) |
(3 |
) |
Loma Negra C.I.A.S.A. |
2021 |
2020 |
|||||||||||||||||||
Re. |
Company |
Rate |
Last maturity date |
Amount |
Amount |
|||||||||||||||
Borrowings in foreign currency - EUR |
||||||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
Banco Itaú S.A. |
(4 |
) |
Loma Negra C.I.A.S.A. |
|||||||||||||||||
|
|
|
|
|||||||||||||||||
Total borrowings in foreign currency |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
2021 |
2020 |
|||||||||||||||||||
Re. |
Company |
Rate |
Last maturity date |
Amount |
Amount |
|||||||||||||||
Borrowings in local currency |
|
|
|
|
|
|
||||||||||||||
Bank overdrafts |
Ferrosur Roca S.A. |
|||||||||||||||||||
Bank overdrafts |
Loma Negra C.I.A.S.A. |
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total borrowings in local currency |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||
|
|
|
|
|
|
(1) | During the fiscal year ended December 31, 2020, Loma Negra C.I.A.S.A. received two disbursements of the loan agreement with Industrial and Commercial Bank of China Argentina S.A. for USD |
(2) | During fiscal year 2020, Loma Negra C.I.A.S.A. signed a new loan agreement with Industrial and Commercial Bank of China for USD |
(3) | In June 2016, Loma Negra C.I.A.S.A. semi-annual installments with a one-year grace period as from the date of disbursement. Interest are accrued at a variable nominal interest rate on the basis of the LIBO rate to be paid on a quarterly basis. This loan requires the net debt / EBITDA ratio to be satisfied, which has always been satisfied from the execution of the loan. In May 2019, the Group extended the maturity dates of such loan. During the previous fiscal year the Company, in accordance with the lender, has amended the loan agreement and shall pay the outstanding principal in |
(4) | In March 2019, Loma Negra C.I.A.S.A. entered into a loan agreement for EUR fully repaid as of December 31, 2021. |
2021 |
2020 |
|||||||
Total of borrowings by company: |
||||||||
- Loma Negra C.I.A.S.A. |
||||||||
- Ferrosur Roca S.A. |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
Balances as of January 1, 2021 |
||||
|
|
|||
New borrowings and financing |
||||
Accrued interest |
||||
Effects of foreign exchange rate variation |
( |
) | ||
Interest payments |
( |
) | ||
Principal payments |
( |
) | ||
|
|
|||
Balances as of January 1, 202 1 |
||||
|
|
Fiscal year |
||||
2023 |
||||
|
|
|||
Total |
||||
|
|
2021 |
2020 |
|||||||
Non-current |
||||||||
Accounts payable for investments in property, plant and equipment |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Current |
||||||||
Suppliers |
||||||||
Related parties (Note 19) |
||||||||
Accounts payable for investments in property, plant and equipment |
||||||||
Provisions for expenses |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2021 |
2020 |
|||||||
Labor and social security |
||||||||
Environmental restoration |
||||||||
Civil and other |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
Labor and social security |
Environmental restoration |
Civil and other |
Total |
|||||||||||||
Balance as of January 1, 2020 |
||||||||||||||||
Increases (*) |
( |
) |
( |
) |
( |
) | ||||||||||
Decreases (**) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance as of December 31, 2020 |
||||||||||||||||
Increases / Recoveries (*) (***) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Decreases (**) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance as of December 31, 2021 |
||||||||||||||||
|
|
|
|
|
|
|
|
(*) | Includes the inflation adjustment effect. |
(**) | Includes uses of provisions for specific purposes. |
(***) | The recovery of the environmental provision is net of the increase resulting from changes in the measurement of liabilities arising from the estimated restoration schedule and the discount rates used as of December 31, 2021, the effect of which has adjusted the cost of the relevant assets. |
2021 |
2020 |
|||||||
Income tax |
||||||||
Value added tax |
||||||||
Turnover tax |
||||||||
Other taxes, withholdings and taxes collected at source |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2021 |
2020 |
|||||||
Non-current |
||||||||
Benefit plans |
— |
|||||||
Termination payment plans |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Currents |
||||||||
Termination payment plans |
||||||||
Dividends payable to minority shareholders |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
Cash and banks (Note 22) |
||||||||||||
Short-term investments (Note 16) |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
||||||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
- Acquisition of financed property, plant and equipment |
||||||||||||
- Right of use assets and lease liabilities |
||||||||||||
- Sale of interest in Yguazú Cementos S.A. |
— |
— |
i) | Cement, masonry cement and lime: this segment includes profit or loss from the cement, masonry cement and lime business in Argentina, from procurement of raw materials in quarries, the manufacturing process of clinker and quicklime and their subsequent grinding with certain aggregates for the production of cement, masonry cement and lime. |
ii) | Concrete: this segment includes profits or loss from the production and sale of ready-mix concrete. It also includes the delivery of the product at the worksite and, depending on the circumstances, the pumping of concrete up to the place of destination. |
iii) | Aggregates: this segment includes the profits or loss from the aggregates business, from obtaining to crushing the stone. |
iv) | Rail Services: this segment includes profits or loss from the provision of the rail transportation service. |
v) | Others: this segment includes profits or loss from the industrial waste treatment and recycling business for use as fuel. |
2021 |
2020 |
2019 |
||||||||||
Revenues |
||||||||||||
Cement, masonry cement and lime |
||||||||||||
Concrete |
||||||||||||
Rail services |
||||||||||||
Aggregates |
||||||||||||
Others |
||||||||||||
Segment-to-segment |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
Reconciliation - effect from restatement in constant currency |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
Cost of sales |
||||||||||||
Cement, masonry cement and lime |
||||||||||||
Concrete |
||||||||||||
Rail services |
||||||||||||
Aggregates |
||||||||||||
Others |
||||||||||||
Segment-to-segment |
( |
) |
( |
) |
( |
) | ||||||
Total |
||||||||||||
Reconciliation—effect from restatement in constant currency |
||||||||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Selling, administrative and other expenses |
||||||||||||
Cement, masonry cement and lime |
||||||||||||
Concrete |
||||||||||||
Rail services |
||||||||||||
Aggregates |
( |
) |
( |
) | ||||||||
Others |
||||||||||||
Total |
||||||||||||
Reconciliation—effect from restatement in constant currency |
||||||||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Depreciation and amortization |
||||||||||||
Cement, masonry cement and lime |
||||||||||||
Concrete |
||||||||||||
Rail services |
||||||||||||
Aggregates |
||||||||||||
Others |
||||||||||||
Total |
||||||||||||
Reconciliation—effect from restatement in constant currency |
||||||||||||
Total |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Revenues less cost of sales, selling and administrative expenses, and other gains and losses |
||||||||||||
Cement, masonry cement and lime |
||||||||||||
Concrete |
( |
) |
( |
) |
||||||||
Rail services |
( |
) |
( |
) |
||||||||
Aggregates |
( |
) |
( |
) | ||||||||
Others |
( |
) |
( |
) | ||||||||
Total |
||||||||||||
Reconciliation—Effect from restatement in constant currency |
( |
) |
||||||||||
Total |
||||||||||||
Reconciling items |
||||||||||||
Tax on debits and credits to bank accounts |
( |
) |
( |
) |
( |
) | ||||||
Loss from interest in companies |
— |
( |
) |
— |
||||||||
Asset impairment - Cement |
( |
) |
— |
— |
||||||||
Asset impairment—Rail Services |
— |
( |
) |
— |
||||||||
Asset impairment—Aggregates |
— |
( |
) |
— |
||||||||
Financial results (loss), net |
( |
) | ||||||||||
Income tax |
( |
) |
( |
) |
( |
) | ||||||
Net profit for the year from discontinued operations |
— |
|||||||||||
Net profit for the year |
||||||||||||
2021 |
2020 |
|||||||
Debt (i) |
||||||||
Cash and current investment |
||||||||
Net debt |
( |
) |
||||||
Shareholders’ Equity (ii) |
||||||||
Net debt-to-equity |
( |
) |
||||||
2021 |
2020 |
|||||||
Financial Assets |
||||||||
At amortized cost: |
||||||||
Cash and banks |
||||||||
Investments |
||||||||
Accounts receivable and other receivables |
||||||||
At fair value through profit or loss: |
||||||||
Investments |
2021 |
2020 |
|||||||
Financial Liabilities |
||||||||
Amortized cost |
2021 |
2020 |
|||||||
Liabilities: |
||||||||
United States Dollars |
||||||||
Euros |
||||||||
Reales |
2021 |
2020 |
|||||||
Assets: |
||||||||
United States Dollars |
||||||||
Euros |
||||||||
Reales |
— |
US Dollar effect |
Euro effect |
|||||||
Loss for the year |
||||||||
Decrease in of shareholders’ equity |
2021 |
2020 |
|||||||
Financial Assets: |
||||||||
Investments held to maturity (1) |
||||||||
Investments at fair value through profit or loss (2) |
||||||||
Financial Liabilities: |
||||||||
Amortized cost (3) |
(1) | Fixed-term deposits at fixed rates. |
(2) | Short-term investments at floating rates. |
(3) | Related to borrowings, as detailed in Note 25. |
Borrowings |
Weighted average effective interest rate % |
Less than 1 month |
From 1 to 3 months |
From 3 months to 1 year |
From 1 to 3 years |
From 3 to 6 years |
Total |
|||||||||||||||||||||
As of December 31, 2021 |
% |
|||||||||||||||||||||||||||
As of December 31, 2020 |
% |
Leases |
Weighted average effective interest rate % |
Less than 1 month |
From 1 to 3 months |
From 3 months to 1 year |
From 1 to 3 years |
From 3 to 6 years |
More than 6 years |
Total |
||||||||||||||||||||||||
As of December 31, 2021 |
( |
*) |
||||||||||||||||||||||||||||||
As of December 31, 2020 |
( |
*) |
Fair value at: |
Hierarchy level |
|||||||||||
Financial assets / (financial liabilities) |
2021 |
2020 |
||||||||||
Assets: |
||||||||||||
Mutual Funds |
2020 |
2019 |
|||||||
Revenues |
||||||||
Operating costs and expense s |
( |
) |
( |
) | ||||
Financial results, net |
( |
) |
( |
) | ||||
Reclassification of foreign exchange gains /(losses) recognized in other comprehensive income |
— |
|||||||
Gain on disposal of discontinued operations (*) |
— |
|||||||
Profit (loss) before income tax |
||||||||
Income tax |
( |
) |
( |
) | ||||
Net profit for the year from discontinued operations |
||||||||
Net profit for the year from discontinued operations attributable to: |
||||||||
Owners of the parent company |
||||||||
Non-controlling interest |
||||||||
Net profit for the year from discontinued operations per (basic and diluted) share attributable to: |
||||||||
Owners of the parent company (in pesos) |
||||||||
Non-controlling interest (in pesos) |
(*) | It is the agreed-upon price of the transaction, which amounted to |
2020 |
2019 |
|||||||
Net cash generated by operating activities |
||||||||
Net cash used in investing activities |
( |
) |
( |
) | ||||
Net cash used in financing activities |
( |
) |
( |
) | ||||
Effects of exchange rate differences on cash and cash equivalents in foreign currency |
( |
) |
||||||
Total cash used during the fiscal year for discontinued operations |
( |
) |
( |
) | ||||