Loma Negra Reports 4Q23 results Buenos Aires, March 6, 2024 – Loma Negra, (NYSE: LOMA; BYMA: LOMA), (“Loma Negra” or the “Company”), the leading cement producer in Argentina, today announced results for the three-month period ended December 31, 2023 (our “4Q23 Results”). FY23 Key Highlights Net revenues decreased 6.6% YoY to Ps. 422,161 million (US$ 790 million) mainly driven by the top line decrease in our core segment, Cement, while the positive performance of Concrete and Aggregates compensated the result of the Railroad segment. Consolidated Adjusted EBITDA reached Ps. 100,351 million, decreasing 25.7% YoY in adjusted pesos, while in dollars it reached 252 million, with a decrease of 12.7% YoY. The YoY comparison is affected by a non-core asset sale in 4Q22. Consolidated Adjusted EBITDA margin stood at 23.8%, contracting 610 basis points from 2022. Excluding the result of the asset sale in 2022, the contraction would have amounted to 378 basis points. Net income was Ps. 10,305 million, showing an increase of 70.7% YoY. During FY23, we distributed dividends for Ps. 39.4 billion (US$ 120 million), Ps. 67.53 per outstanding share (Ps. 337.63 per ADR). Loma Negra is presenting its third Sustainability Report for the fiscal year 2023, with the goal of sharing with all our stakeholders our journey and commitment to sustainable development. 4Q23 Key Highlights Net sales revenues decreased by 13.2% YoY to Ps. 99,398 million (US$ 182 million), mainly explained by a top line decrease in the Cement segment, with the other businesses following the same trend as our main segment. Consolidated Adjusted EBITDA reached Ps. 22,678 million, decreasing 44.7% YoY in adjusted pesos, while in dollars it reached 61 million, down 33.0% from 4Q22. Excluding the extraordinary result from the base of comparison, the decrease in pesos stood at 25.8%. The Consolidated Adjusted EBITDA margin stood at 22.8%, contracting 1,302 basis points YoY from 35.8%. Excluding the result of the asset sale in 2022, the contraction would have amounted to 389 basis points. Net Loss of Ps. 19,780 million, down from a gain of Ps. 22,746 million in the same period of the previous year, mainly explained by a higher financial cost. The Company issued its Class 4 of domestic bonds in the total principal amount of US$ 10.0 million, with an interest rate of 6% p.a. and with maturity in the second quarter of 2026. Net Debt stood at Ps. 140.636 million (US$ 174 million), representing a Net Debt/LTM Adjusted EBITDA ratio of 1.40x compared with 0.37x in FY22. Mainly due to the devaluation of the peso in December 2023. The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29. Commenting on the financial and operating performance for the fourth quarter of 2023, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We have reached the end of a very challenging year for Argentina, where the construction industry has shown all its resilience, allowing me to present another solid year for LOMA. Despite the lower volumes of the fourth quarter, affected by the lower level of activity due to the electoral period and the following change of administration, the industry showed strong adaptability to the economic environment and closed the year with the second-best dispatch volume in history, only behind the record reached in 2022. We are very satisfied with the results achieved in these challenging conditions, ratifying the position of leadership of LOMA, fulfilling our role as key players of the industry in Argentina, being close to our clients, suppliers, and other stakeholders. Working together, we can address the challenges our country faces, confident in our ability to bolster its growth potential once a less volatile environment is achieved. Also, with great satisfaction, we publish a new edition of Loma Negra's Sustainability Report to share with all our stakeholders our work and commitment to sustainable development. We are continuously evolving and progressing towards becoming a company dedicated to addressing the challenges and demands of our environment. It is a path we traverse with responsibility. This sustainability report mirrors our journey. I encourage you to read it to discover the most noteworthy achievements of our company.”
Table 1: Financial Highlights (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Net revenue 99,398 114,483 -13.2% 422,161 451,954 -6.6% Gross Profit 26,018 30,375 -14.3% 105,907 122,049 -13.2% Gross Profit margin 26.2% 26.5% -36 bps 25.1% 27.0% -192 bps Adjusted EBITDA 22,678 41,021 -44.7% 100,351 134,981 -25.7% Adjusted EBITDA Mg. 22.8% 35.8% -1,302 bps 23.8% 29.9% -610 bps Net Profit (Loss) (20,188) 23,207 n/a 9,681 5,627 72.0% Net Profit (Loss) attributable to owners of the Company (19,780) 22,746 n/a 10,305 6,037 70.7% EPS (33.9003) 38.9166 n/a 17.6599 10.3144 71.2% Average outstanding shares (*) 583 584 -0.2% 583 585 -0.3% Net Debt 140,636 49,388 184.8% 140,636 49,388 184.8% Net Debt /LTM Adjusted EBITDA 1.40x 0.37x 2.83x 1.40x 0.37x 2.83x (*) Net of shares repurchased Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29) In million Ps. Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Net revenue 81,222 34,933 132.5% 233,339 109,243 113.6% Adjusted EBITDA 27,022 14,742 83.3% 74,408 37,758 97.1% Adjusted EBITDA Mg. 33.3% 42.2% -893 bps 31.9% 34.6% -267 bps Net Profit (Loss) (32,668) 8,962 n/a (17,110) 14,009 n/a Net Debt 140,636 49,388 184.8% 140,636 49,388 184.8% Net Debt /LTM Adjusted EBITDA 1.40x 0.37x 2.83x 1.40x 0.37x 2.83x In million US$ Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Ps./US$, av 445.34 162.70 173.7% 295.21 130.81 125.7% Ps./US$, eop 808.48 177.13 356.4% 808.48 177.13 356.4% Net revenue 182 215 -15.1% 790 835 -5.4% Adjusted EBITDA 61 91 -33.0% 252 289 -12.7% Adjusted EBITDA Mg. 33.3% 42.2% -893 bps 31.9% 34.6% -267 bps Net Profit (Loss) (73) 55 n/a (58) 107 n/a Net Debt 174 279 -37.6% 174 279 -37.6% Net Debt /LTM Adjusted EBITDA 1.40x 0.37x 2.83x 1.40x 0.37x 2.83x
Overview of Operations Sales Volumes Table 2: Sales Volumes2 Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Cement, masonry & lime MM Tn 1.52 1.69 -10.1% 6.42 6.72 -4.5% Concrete MM m3 0.12 0.15 -17.5% 0.58 0.58 0.2% Railroad MM Tn 1.00 1.09 -9.0% 4.20 4.54 -7.5% Aggregates MM Tn 0.29 0.33 -12.3% 1.29 1.24 3.9% 2 Sales volumes include inter-segment sales Sales volumes of Cement, masonry, and lime during 4Q23 decreased by 10.1% to 1.5 million tons. Even though the lower volume was across both dispatch modes, the bulk mode of dispatch was impacted by the political transition and the economic environment, especially in the last month of the period. The bagged cement showed a more moderate decrease, following the trend of the previous quarters. In terms of the volume of the Concrete segment, it exhibited a decrease of 17.5% YoY. Projects carried out by the private sector began the quarter at a promising pace but experienced a slowdown in December. Conversely, public sector works were significantly impacted by the transition in the national administration and the prevailing political context. Similarly, volumes for the Aggregates segment declined by 12.3% The volumes of the Railway segment experienced a contraction of 9.0% compared to the same quarter of 2022. The lower level of activity in the construction sector impacted our main cargo shippers, especially in Aggregates. Additionally, the storm that hit Bahía Blanca in December temporarily knocked out of service the two plants from which we transport chemicals. For fiscal year 2023, our main segment, Cement, masonry and lime, registered a year-on-year decrease of 4.5%, mainly explained by the soft dynamic of the economy in the second semester, affected by the election process. The bagged cement was more impacted by this environment, partially compensated by bulk dispatches, that ended the year in positive figures, primarily for the performance during the first half of the year. The Concrete segment ended the year almost flattish with an increase of 0.2%, while the Aggregates segments was up 3.9% YoY. Concrete demand was one of the principal drivers of the growth in bulk cement shipments, dispatch mode that ended the year with positive growth figures, primarily on the back of the volumes posted in the first half of the year. The volume of the Railroad segment experienced a decrease of 7.5%, primarily attributed to lower transported volumes of construction materials and fracsand. The transportation market in 2023 was characterized by being affected by the poor harvest due to the strong drought, which caused grain trucks to shift to other sectors, affecting our main transportation flows, specifically for construction materials.
Review of Financial Results Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Net revenue 99,398 114,483 -13.2% 422,161 451,954 -6.6% Cost of sales (73,379) (84,108) -12.8% (316,254) (329,905) -4.1% Gross profit 26,018 30,375 -14.3% 105,907 122,049 -13.2% Share of loss of associates - - n/a - - n/a Selling and administrative expenses (9,959) (9,965) -0.1% (38,666) (38,959) -0.8% Other gains and losses (79) 10,940 n/a 918 10,542 -91.3% Impairment of property, plant and equipment - - n/a - - n/a Tax on debits and credits to bank accounts (1,082) (1,187) -8.9% (4,677) (4,532) 3.2% Finance gain (cost), net Gain on net monetary position 54,584 19,055 186.5% 138,760 42,810 224.1% Exchange rate differences (73,152) (9,359) 681.6% (117,212) (23,104) 407.3% Financial income 166 585 -71.7% 5,710 5,065 12.7% Financial expense (18,923) (9,096) 108.0% (73,323) (79,607) -7.9% Profit (Loss) before taxes (22,427) 31,348 n/a 17,418 34,264 -49.2% Income tax expense Current 36 (1,783) n/a (3,810) (12,782) -70.2% Deferred 2,203 (6,358) n/a (3,928) (15,855) -75.2% Net profit (Loss) (20,188) 23,207 n/a 9,681 5,627 72.0% Net Revenues Net revenue decreased 13.2% to Ps. 99,398 million in 4Q23, from Ps. 114,483 million in the comparable quarter last year, with a decline across all segments, being more moderate in the Aggregates and Railroad segments. The cement, masonry cement, and lime segment was down 16.0% YoY, with volumes contracting by 10.1%, the bulk mode of dispatch was impacted by political transition and the economic environment, especially in the last month of the period. The bagged cement showed a more moderate decrease, following the trend of the previous quarters. Additionally, this effect was coupled with a softer price dynamic that, despite moving with inflation, showed a decrease due to higher monthly inflation figures and the timing of price adjustments. Concrete registered a decrease in its topline of 20.3% compared to 4Q22, primarily due to lower volumes, which were down by 17.5%. The Aggregates segment posted a decrease in revenues of 9.5%, where the positive price performance partially offset the lower volume. Railroad revenues decreased by 10.5% in 4Q23 compared to the same quarter of 2022, primarily due to a lower transported volume, which decreased by 9.0% in the quarter, mainly affected by the decrease in transported volumes of aggregates. For fiscal year 2023, net revenue decreased by 6.6% to Ps. 422,161 million from Ps. 451,954 million in fiscal year 2022, primarily due to lower topline performance of our core business, Cement, followed by the Railroad segment. This was partially offset by a better performance of Concrete and Aggregates. Cost of sales, and Gross profit Cost of sales decreased by 12.8% YoY, reaching Ps. 73,379 million in 4Q23, mainly due to the decrease in sales volumes across all segments and the lower impact of depreciations in the Cement and Railroad segments. Regarding the cost of sales for Cement, the segment posted a decrease of 7.0% on a per-ton basis. The main reason for this was the reduction in energy inputs, primarily driven by lower consumption of thermal energy per ton, coupled with a decrease in natural gas prices. Similarly, the cost of electrical energy improved as the proportion of hydraulic energy, which has a lower cost, increased in the country's electrical generation matrix. Additionally, there was lower depreciation than that registered in 4Q22. Gross Profit decreased 14.3% YoY to Ps. 26,018 million in 4Q23, from Ps. 30,375 million in 4Q22, with a gross profit margin contraction of only 36 basis points YoY to 26.2%. During fiscal year 2023, Gross Profit decreased 13.2% to Ps. 105,907 million with a gross profit margin contracting 192 basis points to 25.1%.
Selling and Administrative Expenses Selling and administrative expenses (SG&A) in 4Q23 remained flat, with a variation of only -0.1% YoY to Ps. 9,959 million, from Ps. 9,965 million in 4Q22. As a percentage of sales, SG&A showed an increase against 4Q22 of 132 basis points, reaching 10.0% due to the decrease in the top line. During fiscal year 2023, SG&A decreased by 0.8% compared with the previous year, and as a percentage of sales stood at 9.2%, increasing 54 bps. Adjusted EBITDA & Margin Table 4: Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Adjusted EBITDA reconciliation: Net profit (Loss) (20,188) 23,207 n/a 9,681 5,627 72.0% (+) Depreciation and amortization 6,698 9,672 -30.7% 32,191 41,349 -22.1% (+) Tax on debits and credits to bank accounts 1,082 1,187 -8.9% 4,677 4,532 3.2% (+) Income tax expense (2,239) 8,141 n/a 7,738 28,637 -73.0% (+) Financial interest, net 14,708 7,035 109.1% 57,812 14,143 308.8% (+) Exchange rate differences, net 73,152 9,359 681.6% 117,212 23,104 407.3% (+) Other financial expenses, net 4,049 1,476 174.3% 9,802 60,399 -83.8% (+) Gain on net monetary position (54,584) (19,055) 186.5% (138,760) (42,810) 224.1% (+) Share of profit (loss) of associates - - n/a - - n/a (+) Impairment of property, plant and equipment - - n/a - - n/a Adjusted EBITDA 22,678 41,021 -44.7% 100,351 134,981 -25.7% Adjusted EBITDA Margin 22.8% 35.8% -1,302 bps 23.8% 29.9% -610 bps Adjusted EBITDA decreased 44.7% YoY in the fourth quarter of 2023 to Ps. 22,678 million from Ps. 41,021 million in the same period of the previous year, mainly affected by lower adjusted EBITDA generated by our cement business, also followed by the other businesses. Likewise, the Adjusted EBITDA margin contracted 1,302 basis points to 22.8% compared to 35.8% in 4Q22. The sale of a non- core asset in 4Q23 affected the base of comparison, and accounts for 913 basis points. Excluding this effect, the margin contracted 389 basis points, with margins decreasing across all segments. In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment contracted 1,254 bps to 26.6%. Excluding the previously mention asset sale from the base of comparison, the margin contracted 217 bps. Prices, despite being adjusted by inflation, decreased when compared with 4Q22 due to high monthly inflation figures and the timing of the price adjustments. The lower top line performance was partially offset by efficient cost management driven by improved energy inputs. Concrete Adjusted EBITDA margin contracted 121 bps, and stood at 1.5%, from 2.7% in 4Q22. Despite the cost and expenses controls, it couldn't fully offset the lower top line. The Adjusted EBITDA margin of Aggregates contracted to 14.2%, from 25.9% in 4Q22, mainly due to higher sales costs and the effect of lower volumes, partially compensated by a positive price performance. Finally, the Adjusted EBITDA margin of the Railroad segment contracted 922 bps to -4.2% in the fourth quarter, from 5.1% in 4Q22, principally due to higher costs, coupled with lower transported volumes. During FY23, Adjusted EBITDA decreased 25.7% reaching Ps. 100,351 million from Ps. 134,981 million in FY22, with an Adjusted EBITDA margin compression of 610 basis points, from 29.9% in 2022 to 23.8% in 2023. Excluding the sale of the non- core asset of the base of comparison, the Adjusted EBITDA decreased 19.4%, contracting 378 basis points.
Finance Costs-Net Table 5: Finance Gain (Cost), net (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Chg. 2023 2022 % Chg. Exchange rate differences (73,152) (9,359) 681.6% (117,212) (23,104) 407.3% Financial income 166 585 -71.7% 5,710 5,065 12.7% Financial expense (18,923) (9,096) 108.0% (73,323) (79,607) -7.9% Gain on net monetary position 54,584 19,055 186.5% 138,760 42,810 224.1% Total Finance Gain (Cost), Net (37,325) 1,185 n/a (46,065) (54,837) -16.0% During 4Q23, the Company reported a total Net Financial Cost of Ps. 37.3 billion compared to a total net financial gain of Ps. 1.2 billion in 4Q22, mainly due to the impact in of the devaluation of the peso in exchange rate differences, partially offset by a gain in the net monetary position. In the same sense, we had an increase in the financial expense due to the higher debt position. During FY 2023, the Company recorded a total net financial cost of Ps. 46.1 billion, compared to a net financial cost of Ps. 54.8 billion in 2022. Net Profit and Net Profit Attributable to Owners of the Company Net loss of Ps. 20,188 million in 4Q23 compared to a net profit of Ps. 23,207 million in the same period of the previous year. The higher total financial cost due to the devaluation, along with the sale of the non-core asset in 4Q22, are the principal reasons for the variation. Net Loss Attributable to Owners of the Company stood at Ps. 19,780 million. During the quarter, the Company reported a loss per common share of Ps. 33.9003 and an ADR loss of Ps. 169.5014, compared to a gain per common share of Ps. 38.9166 and a gain per ADR of Ps. 194.5830 in 4Q22. During fiscal year 2023, Net Income Attributable to Owners of the Company increased 70.7% YoY, to Ps. 10,305 million, from Ps. 6,037 million in fiscal year 2022, mainly as a result of a lower total net financial cost coupled with a lower tax position thar compensated a lower operational result. Capitalization Table 6: Capitalization and Debt Ratio (amounts expressed in millions of pesos, unless otherwise noted) As of December 31, 2023 2022 Total Debt 147,370 64,680 - Short-Term Debt 37,225 33,914 - Long-Term Debt 110,146 30,766 Cash, Cash Equivalents and Investments (6,734) (15,293) Total Net Debt 140,636 49,388 Shareholder's Equity 294,222 361,069 Capitalization 441,592 425,749 LTM Adjusted EBITDA 100,351 134,981 Net Debt /LTM Adjusted EBITDA 1.40x 0.37x As of December 31, 2023, total Cash, Cash Equivalents, and Investments were Ps. 6,734 million compared with Ps. 15,293 million as of December 31, 2022. Total debt at the close of the quarter stood at Ps. 147,370 million, composed by Ps. 37,225 million in short-term borrowings, including the current portion of long-term borrowings (or 25% of total borrowings), and Ps. 110,146 million in long-term borrowings (or 75% of total borrowings). At the close of the fourth quarter of 2023, 76% (or Ps. 111,359 million) of Loma Negra’s total debt was denominated in U.S. dollars, and 24% (or Ps. 36,011 million) was in Pesos.
As of December 31, 2023, 24% of the Company's consolidated loans accrued interest at a variable rate and accrued interest based on BADLAR, as it is debt in pesos. The remaining 76% accrues interest at a fixed rate in foreign currency. In the quarter the company issued a domestic bond in the total principal amount of US$ 10.0 million with maturity in 2Q26. Additionally, the company cancelled all remaining cross-border, US dollar short-term debt, extending the average duration of Loma Negra’s total debt to 1.7 years. The Net Debt to Adjusted EBITDA (LTM) ratio increased to 1.40x as of December 31, 2023, from 0.37x as of December 31, 2022, as a result of an increase in the debt position primarily due to the devaluation of the peso. Cash Flows Table 7: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net Profit (Loss) (20,188) 23,207 9,681 5,627 Adjustments to reconcile net profit (loss) to net cash provided by operating activities 31,403 2,401 67,038 107,404 Changes in operating assets and liabilities 14,979 9,427 8,312 (15,367) Net cash generated by operating activities 26,194 35,035 85,030 97,664 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. - (0) 649 290 Property, plant and equipment, Intangible Assets, net (18,200) (7,931) (35,898) (21,835) Contributions to Trust (102) (71) (577) (603) Investments, net - (1,290) - 7,459 Net cash (used in) investing activities (18,302) (9,292) (35,825) (14,689) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / Repayments from borrowings, Interest paid (31,494) (20,610) 45,759 (3,670) Dividends paid (12) 0 (86,845) (67,905) Share repurchase plan - (2,414) - (5,598) Net cash generated by (used in) by financing activities (31,506) (23,024) (41,086) (77,172) Net increase (decrease) in cash and cash equivalents (23,614) 2,719 8,119 5,802 Cash and cash equivalents at the beginning of the year 32,051 12,657 15,293 20,052 Effect of the re-expression in homogeneous cash currency ("Inflation- Adjusted") (5,575) (413) (23,219) (11,272) Effects of the exchange rate differences on cash and cash equivalents in foreign currency 3,872 331 6,541 710 Cash and cash equivalents at the end of the period 6,734 15,293 6,734 15,293
In 4Q23, our operating cash generation stood at Ps. 26,194 million, compared to Ps. 35,035 million in the same period of the previous year, where the decrease in the net profit adjusted to reconcile to net cash provided by operating activities was partially compensated by a positive effect of the working capital, mainly due to lower income tax advances. During 4Q23, the Company used cash in financing activities for Ps. 31,506 million, mainly for the repayment of borrowings, and interests. We also issued the Class 4 bond that, along with short term borrowings, partially offset these effects. Regarding cash used in investing activities, The Company used a total of Ps. 18,200 million, primarily for maintenance capex and the ongoing project of adapting our dispatch facilities to use 25kg bags. During fiscal year 2023, the Company made capital investments for a total of Ps. 35,898 million. The cash flow generated by operating activities was Ps. 85,030 million compared to Ps. 97,664 million in FY 2022, and net cash used in financial activities for Ps. 41,086 million compared to Ps. 77,172 million the previous year, mainly explained by the increase in the debt position. Domestic Bond Issuance On November 2, 2023, the Company issued its Class 4 of domestic bonds in the total principal amount of US$ 10.0 million. Terms of the issue are as outlined below. Amount of Issue US$ 10 million Issue Price 100% of principal amount Interest rate 6% per annum Interest payments semiannually Maturity Bullet - 30 months Stipulation of Settlement Agreement On October 11th, the Company announced a stipulation of settlement with respect to the shareholder class action lawsuit captioned “Dan Kohl v. Loma Negra CIASA, et al. – Index No. 653114/2018 (District Court for the Southern District of New York)” (the “Class Action”). The settlement was preliminarily approved by the Court on November 30, 2023. Class members have been notified of the settlement and they have the opportunity to submit objections by March 20, 2024. A final approval hearing is scheduled for April 10, 2024. All material payment obligations under the settlement are covered by D&O insurance policies. The settlement contains no admission of concession of any liability of wrongdoing by Loma Negra or other defendant in the Class Action and provides a full release of all the claims.
4Q23 Earnings Conference Call When: 10:00 a.m. U.S. ET (12:00 p.m. BAT), March 7, 2024 Dial-in: 0800-444-2930 (Argentina), 1-833-255-2824 (U.S.), 1-866-605-3852 (Canada), 1-412-902-6701 (International) Password: Loma Negra Call Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=U8uXvhvL Replay: A telephone replay of the conference call will be available until March 14, 2024. The replay can be accessed by dialing 1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International). The passcode for the replay is 4477215. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com Definitions Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players. Net Debt is calculated as borrowings less cash, cash equivalents and short-term investments. About Loma Negra Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol “LOMA”. One ADS represents five (5) common shares. For more information, visit www.lomanegra.com. Note The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters. Rounding: We have made rounding adjustments to reach some of the figures included in this annual report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them. Disclaimer This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward- looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. IR Contacts Marcos I. Gradin, Chief Financial Officer and Investor Relations Diego M. Jalón, Investor Relations Manager +54-11-4319-3050 investorrelations@lomanegra.com --- Financial Tables Follow ---
Table 8: Condensed Interim Consolidated Statements of Financial Position (amounts expressed in millions of pesos, unless otherwise noted) As of December 31, As of December 31, 2023 2022 ASSETS Non-current assets Property, plant and equipment 482,128 477,921 Right to use assets 2,546 3,271 Intangible assets 1,585 1,463 Investments 32 32 Goodwill 318 318 Inventories 22,671 19,868 Other receivables 1,848 3,491 Total non-current assets 511,128 506,365 Current assets Inventories 76,486 63,540 Other receivables 21,748 18,217 Trade accounts receivable 22,749 28,410 Investments 1,710 13,223 Cash and banks 5,024 2,070 Total current assets 127,717 125,460 TOTAL ASSETS 638,845 631,826 SHAREHOLDER'S EQUITY Capital stock and other capital related accounts 121,976 118,151 Reserves 165,388 236,274 Retained earnings 6,876 6,037 Accumulated other comprehensive income - - Equity attributable to the owners of the Company 294,239 360,462 Non-controlling interests (18) 607 TOTAL SHAREHOLDER'S EQUITY 294,222 361,069 LIABILITIES Non-current liabilities Borrowings 110,146 30,766 Accounts payables - - Provisions 6,742 4,071 Salaries and social security payables 527 294 Debts for leases 2,773 2,439 Other liabilities 478 511 Deferred tax liabilities 106,599 102,672 Total non-current liabilities 227,264 140,753 Current liabilities Borrowings 37,225 33,914 Accounts payable 57,255 55,117 Advances from customers 4,382 5,485 Salaries and social security payables 8,874 13,846 Other liabilities - Related companies - - Tax liabilities 2,951 9,078 Debts for leases 1,215 879 Other liabilities 5,458 11,684 Total current liabilities 117,359 130,004 TOTAL LIABILITIES 344,623 270,757 TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 638,845 631,826
Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (unaudited) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 % Change 2023 2022 % Change Net revenue 99,398 114,483 -13.2% 422,161 451,954 -6.6% Cost of sales (73,379) (84,108) -12.8% (316,254) (329,905) -4.1% Gross Profit 26,018 30,375 -14.3% 105,907 122,049 -13.2% Selling and administrative expenses (9,959) (9,965) -0.1% (38,666) (38,959) -0.8% Other gains and losses (79) 10,940 n/a 918 10,542 -91.3% Tax on debits and credits to bank accounts (1,082) (1,187) -8.9% (4,677) (4,532) 3.2% Finance gain (cost), net Gain on net monetary position 54,584 19,055 186.5% 138,760 42,810 224.1% Exchange rate differences (73,152) (9,359) 681.6% (117,212) (23,104) 407.3% Financial income 166 585 -71.7% 5,710 5,065 12.7% Financial expenses (18,923) (9,096) 108.0% (73,323) (79,607) -7.9% Profit (loss) before taxes (22,427) 31,348 n/a 17,418 34,264 -49.2% Income tax expense Current 36 (1,783) n/a (3,810) (12,782) -70.2% Deferred 2,203 (6,358) n/a (3,928) (15,855) -75.2% Net Profit (Loss) (20,188) 23,207 n/a 9,681 5,627 72.0% Net Profit (Loss) for the period attributable to: Owners of the Company (19,780) 22,746 n/a 10,305 6,037 70.7% Non-controlling interests (408) 461 n/a (625) (410) 52.2% NET PROFIT (LOSS) FOR THE PERIOD (20,188) 23,207 n/a 9,681 5,627 72.0% Earnings per share (basic and diluted): (33.9003) 38.9166 n/a 17.6599 10.3144 71.2%
Table 10: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 2022 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net Profit (Loss) (20,188) 23,207 9,681 5,627 Adjustments to reconcile net profit to net cash provided by operating activities Income tax expense (2,239) 8,141 7,738 28,637 Depreciation and amortization 6,698 9,672 32,191 41,349 Provisions 2,776 1,041 6,994 4,053 Exchange rate differences 62,715 6,032 95,095 15,042 Interest expense 14,807 6,863 62,212 15,899 Loss on transactions with securities 718 (0) 1,836 54,919 Gain on disposal of property, plant and equipment 177 (10,480) (451) (10,486) Gain on net monetary position (54,584) (19,055) (138,760) (42,810) Impairment of trust fund 102 168 (212) 603 Share-based payment 233 19 396 197 Changes in operating assets and liabilities Inventories (7,840) (4,743) (14,575) (9,859) Other receivables (5,332) (3,734) (4,793) (9,894) Trade accounts receivable (3,054) (5,478) (25,045) (22,255) Advances from customers 1,117 112 1,504 750 Accounts payable 24,178 21,630 45,212 34,765 Salaries and social security payables 3,220 4,489 6,742 8,769 Provisions 32 (411) (672) (1,256) Tax liabilities (6,410) 3,590 (1,596) 16,553 Other liabilities 5,248 245 7,068 176 Income tax paid 3,821 (6,274) (5,533) (33,116) Net cash generated by (used in) operating activities 26,194 35,035 85,030 97,664 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. - (0) 649 290 Proceeds from disposal of Property, plant and equipment (248) 10,177 825 10,264 Payments to acquire Property, plant and equipment (17,735) (17,890) (36,053) (31,774) Payments to acquire Intangible Assets (217) (218) (670) (325) Proceeds from maturity investments - (1,290) - 7,459 Contributions to Trust (102) (71) (577) (603) Net cash generated by (used in) investing activities (18,302) (9,292) (35,825) (14,689) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from non-convertible negotiable obligations 4,387 - 142,487 - Proceeds from borrowings 13,004 2,023 69,469 161,017 Loss on transactions with securities 1,118 54,919 - - Interest paid (15,594) (6,261) (54,374) (14,810) Dividends paid (12) 0 (86,845) (67,905) Debts for leases (239) (429) (961) (882) Repayment of borrowings (34,170) (70,862) (110,862) (148,995) Share repurchase plan - (2,414) - (5,598) Net cash generated by (used in) financing activities (31,506) (23,024) (41,086) (77,172) Net increase (decrease) in cash and cash equivalents (23,614) 2,719 8,119 5,802 Cash and cash equivalents at the beginning of the period 32,051 12,657 15,293 20,052 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (5,575) (413) (23,219) (11,272) Effects of the exchange rate differences on cash and cash equivalents in foreign currency 3,872 331 6,541 710 Cash and cash equivalents at the end of the period 6,734 15,293 6,734 15,293
Table 11: Financial Data by Segment (figures exclude the impact of IAS 29) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended December 31, Twelve-months ended December 31, 2023 % 2022 % 2023 % 2022 % Net revenue 81,222 100.0% 34,933 100.0% 233,339 100.0% 109,243 100.0% Cement, masonry cement and lime 71,974 88.6% 30,739 88.0% 205,007 87.9% 96,499 88.3% Concrete 6,899 8.5% 3,263 9.3% 21,866 9.4% 9,390 8.6% Railroad 6,517 8.0% 2,727 7.8% 18,451 7.9% 8,720 8.0% Aggregates 2,381 2.9% 988 2.8% 7,071 3.0% 2,775 2.5% Others 524 0.6% 189 0.5% 1,355 0.6% 664 0.6% Eliminations (7,073) -8.7% (2,973) -8.5% (20,411) -8.7% (8,805) -8.1% Cost of sales 47,563 100.0% 21,877 100.0% 143,313 100.0% 69,225 100.0% Cement, masonry cement and lime 39,414 82.9% 18,378 84.0% 118,764 82.9% 58,125 84.0% Concrete 6,627 13.9% 3,065 14.0% 20,728 14.5% 8,925 12.9% Railroad 6,320 13.3% 2,569 11.7% 17,254 12.0% 8,308 12.0% Aggregates 1,952 4.1% 734 3.4% 6,081 4.2% 2,283 3.3% Others 324 0.7% 103 0.5% 897 0.6% 390 0.6% Eliminations (7,073) -14.9% (2,973) -13.6% (20,411) -14.2% (8,805) -12.7% Selling, admin. expenses and other gains & losses 7,732 100.0% (702) 100.0% 19,489 100.0% 5,397 100.0% Cement, masonry cement and lime 7,010 90.7% (1,005) 143.3% 17,260 88.6% 4,345 80.5% Concrete 88 1.1% 89 -12.7% 681 3.5% 337 6.3% Railroad 422 5.5% 135 -19.2% 1,022 5.2% 469 8.7% Aggregates 26 0.3% 9 -1.3% 73 0.4% 33 0.6% Others 186 2.4% 71 -10.1% 453 2.3% 211 3.9% Depreciation and amortization 1,096 100.0% 985 100.0% 3,871 100.0% 3,137 100.0% Cement, masonry cement and lime 910 83.0% 767 77.9% 3,097 80.0% 2,411 76.9% Concrete 33 3.0% 12 1.2% 104 2.7% 57 1.8% Railroad 167 15.2% 174 17.7% 547 14.1% 608 19.4% Aggregates (15) -1.4% 30 3.1% 117 3.0% 56 1.8% Others 1 0.1% 1 0.1% 5 0.1% 5 0.2% Adjusted EBITDA 27,022 100.0% 14,742 100.0% 74,408 100.0% 37,758 100.0% Cement, masonry cement and lime 26,460 97.9% 14,133 95.9% 72,081 96.9% 36,440 96.5% Concrete 217 0.8% 121 0.8% 561 0.8% 185 0.5% Railroad (58) -0.2% 197 1.3% 721 1.0% 550 1.5% Aggregates 388 1.4% 276 1.9% 1,035 1.4% 515 1.4% Others 16 0.1% 16 0.1% 10 0.0% 68 0.2% Reconciling items: Effect by translation in homogeneous cash currency ("Inflation-Adjusted") (4,344) 26,279 25,943 97,223 Depreciation and amortization (6,698) (9,672) (32,191) (41,349) Tax on debits and credits banks accounts (1,082) (1,187) (4,677) (4,532) Finance gain (cost), net (37,325) 1,185 (46,065) (54,837) Income tax 2,239 (8,141) (7,738) (28,637) Share of profit of associates - - - - Impairment of property, plant and equipment - - - - NET PROFIT (LOSS) FOR THE PERIOD (20,188) 23,207 9,681 5,627
