Loma Negra Compania Industrial Argentina Sa · BCBA:LOMA
Loma Negra Compania Industrial Argentina Sa — Q2 2018 Earnings Presentation
17 slides from Loma Negra Compania Industrial Argentina Sa's earnings presentation, 2018
Slide 1: 2Q18 Results Conference Call
2Q18 Results Conference Call
Slide 2: Disclaimer and Forward Looking Statement
Disclaimer and Forward Looking Statement This presentation may contain 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 assu
Slide 3: Loma Negra delivers solid performance in core business despite challenging macro dynamics
Loma Negra delivers solid performance in core business despite challenging macro dynamics in Argentina in 2Q18… Macro slowdown in 2Q18 drove slower demand growth in Argentina; pricing environment remains healthy Argentine cement business balanced market position and profitability delivering top line
Slide 4: Lower industry cement demand growth
… which resulted in lower industry cement demand growth GDP Growth1 (%) Construction Activity2 (YoY Growth, %) 27.8 22.8 3.80 3.90 3.60 21.5 21.3 19.5 19.3 2.30 2.40 2.90 2.50 3.00 14.7 12.6 15.5 14.4 1.50 10.3 12.1 10.6 8.4 7.0 -0.30 -1.8 -0.1 -2.60 -2.20 -5.6 2013 2014 2015 2016 2017 2018e 2019e 2
Slide 5: 37% YoY increase in revenues driven by core cement and concrete segments
Loma Negra reports 37% YoY increase in revenues driven by solid growth in core cement and concrete segments Revenue Performance: Argentine cement: up 33% YoY. Healthy pricing environment despite relatively flat volumes - challenging macro conditions Paraguay cement: up 49% YoY. Guarani appreciation
Slide 6: Gross Profit up 29%; SG&A as a % of revenues fell 20 bps
Gross Profit up 29% SG&A as a % of revenues fell 20 bps Argentine cement gross margin expanded 88 bps to 33.4% despite relatively flat volumes Consolidated gross profit up 29% YoY, while gross margin declined 189 bps to 28.0% mainly reflecting a weaker performance in railroad and Paraguay, as well a
Slide 7: EBITDA up 27% YoY, driven by core Argentine cement segment
EBITDA up 27% YoY, mainly driven by solid performance in core Argentine cement segment Argentine Cement segment Adjusted EBITDA up 36.6%, with margin expanding 60 bps to 28.0%. Argentine cement EBITDA represents 85% of consolidated figure Consolidated Adjusted EBITDA up 27% YoY in 2Q18 – Cement and
Slide 8: Net Majority Income impacted by non-cash FX loss due to peso depreciation
Net Majority Income impacted by non-cash FX loss due to Argentine peso depreciation Positive contributors to Net Profit: Finance Costs, net AR$ Million Adjusted EBITDA increased 27% YoY Effective tax rate declined to 30.7% in 2Q18 from 32.2% in 2Q17, as a result of the tax reform at year-end 2017 67
Slide 9: Healthy balance sheet and debt profile
Healthy balance sheet and debt profile Cash position of Ps.1.6 billion and total debt at Ps.5.4 billion in June’18 Debt by Currency Net Debt at Ps.3.8 billion (US$ 131 million) at June’18 US$ 38% Net Debt/Adj. EBITDA ratio up to 0.8x in 2Q18 from 0.3x in FY17 Operating cash flow in 1H18 declined YoY
Slide 10: Looking into 2018
Looking into 2018 Cautious optimism despite the adverse macro environment in Argentina and its potential impact on industry dynamics. Given current market conditions, full year cement demand could reach similar 2017 levels Maintain focus on profitability, leveraging leading market position L’Amalí p
Slide 11: Questions & Answers
Questions & Answers
Slide 12: Exhibit: Summary Financial Statements
Exhibit: Summary Financial Statements
Slide 13: Income Statement
Income Statement Condensed Interim Consolidated Statements of Profit or Loss (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended Six-months ended June 30, June 30, 2018 2017 % Change 2018 2017 % Change Net revenue 4,757 3,467 37.2% 9,291 6,669 39.3% Cost of sales (3,4
Slide 14: Balance Sheet
Balance Sheet Condensed Interim Consolidated Statements of Financial Position as of June 30, 2018 and December 31, 2017 (Unaudited) (amounts expressed in millions of pesos, unless otherwise noted) As of December SHAREHOLDERS' EQUITY As of June 30, 31, Capital stock and other capital related accounts
Slide 15: Statement of Cash Flows
Statement of Cash Flows Condensed Interim Consolidated Statement of Cash Flows for the Six-months and Three-months Ended June 30, 2018 and 2017 (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2018 2017 2018 2017 CASH FLOWS FROM O
Slide 16: Adjusted EBITDA Reconciliation & Margin
Adjusted EBITDA Reconciliation & Margin Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended Six-months ended June 30, June 30, 2018 2017 % Chg. 2018 2017 % Chg. Adjusted EBITDA reconciliation: Net profit 178 293 -39.3% 727 692 5
Slide 17: IR Contact
IR Contact Marcos I. Gradin Chief Financial Officer and Investor Relations Gaston Pinnel Investor Relations Manager +54-11-4319-3050 investorrelations@lomanegra.com
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