Loma Negra Compania Industrial Argentina Sa · BCBA:LOMA
Loma Negra Compania Industrial Argentina Sa — Q4 2017 Earnings Presentation
19 slides from Loma Negra Compania Industrial Argentina Sa's earnings presentation, 2018
Slide 1: 4Q17 Results Conference Call
4Q17 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: 4Q17 Highlights: Loma Negra Reports Solid Set of Results
4Q17 Highlights: Loma Negra Reports Solid Set of Results Solid market dynamics, with volumes and prices picking up, on positive Argentina market environment Strong & profitable growth AR$ US$ Revenues +57% +38% Adj. EBITDA +57% +38% Net Income a/ Owners +221% +182% Robust operating cash flow, furthe
Slide 4: Market leader in Argentina uniquely positioned to capture increasing cement demand
Market leader in Argentina uniquely positioned to capture increasing cement demand… Fiscal Year 2017 #1 cement player in Argentina and #2 in Paraguay, with 45% and 44% Revenue Breakdown Adjusted EBITDA Breakdown market shares, respectively(1) 6% 0% 1% 6% 1% 1% 1% Operating in a 4-player landscape in
Slide 5: Driven by economic rebound and immediate reaction in construction activity
… driven by economic rebound and immediate reaction in construction activity GDP Growth1 (%) Construction Activity2 (YoY Growth, %) 4,20 25,4 20,3 21,6 3,00 3,00 2,90 17,0 2,30 2,40 14,5 10,8 10,5 10,3 13,0 13,4 0,40 -2,20 -2,4 -3,4 -2,60 -7,8 2013 2014 2015 2016 2017e 2018e 1Q17 2Q17 3Q17 Monthly C
Slide 6: Accelerated volume and sales growth
Accelerated volume and sales growth… Argentine operations volume growth accelerated to 14% YoY with revenues up 47% in 4Q17 Starting, 2017 Loma Negra began to fully consolidate Yguazu Cementos’ (Paraguay) adding 0,13 millions of tons sold in 4Q17 Sales Volumes (Cement, Masonry & Lime) Net Revenue In
Slide 7: Across all products and markets
… across all products and markets Robust concrete volumes, up 54% YoY in 4Q17 driven by strong pick-up in public infrastructure in our markets - City of Buenos Aires and Greater Buenos Aires, and Rosario in the province of Santa Fe Railroad volume up 6% YoY driven by solid demand in transportation s
Slide 8: Costs and expenses declining on a relative basis, benefiting from operational leverage
Costs and expenses declining on a relative basis, benefiting from operational leverage Argentine operations posted a 47% increase in gross profit with gross margin stable at 29.1% SG&A as a % of sales in Argentina declined YoY by 270bps to 8.0% Gross Profit & Margin Selling, General & Administrative
Slide 9: 4Q17 Adjusted EBITDA up 57% & Net Income more than tripled
4Q17 Adjusted EBITDA up 57% & Net Income more than tripled driven by robust revenues and operating leverage Excluding one-time gains of AR$ 84 million from Ferrosur Roca’s canon (concession fee) recovery in 4Q16 and AR$ 69 million related to the International Offering in 4Q17, Adjusted EBITDA would
Slide 10: Healthy balance sheet with adequate FX and currency exposure; strong cashflow generation
Healthy balance sheet with adequate FX and currency exposure; strong cashflow generation Cash position of AR$ 3.2 billion in Dec’17, from AR$0.8 billion in Dec’16 Debt by Currency Total debt stable YoY at AR$ 4.4 billion in Dec’17 US$ 43% Net Debt down by AR$ 2.4 billion to AR$ 1.2 billion (US$ 62 m
Slide 11: Advancing with L'Amalí expansion to maximize attractive growth opportunity
Advancing with L’Amalí expansion to maximize attractive growth opportunity in Argentina and further improve margins Expanding plant capacity by 2.7 million tn/year in a region that accounts for ~42% of Argentina’s cement consumption Production inputs in-place with capacity to sustain new demand, i.e
Slide 12: Looking ahead
Looking ahead Fundamentally healthy market dynamics in Argentina and Paraguay Expect solid cement demand driven by public infrastructure works and private construction, adjusting down from current high recovery levels Leveraging leading market position with strategically located facilities and natio
Slide 13: Questions & Answers
Questions & Answers
Slide 14: Exhibit: Summary Financial Statements
Exhibit: Summary Financial Statements
Slide 15: Income Statement
Income Statement (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended Year ended December 31, December 31, 2017 2016 % C hange 2017 2016 % C hange Net revenue 4.452 2.834 57,1% 15.287 9.874 54,8% C ost of sales (3.157) (2.008) 57,2% (10.850) (7.265) 49,4% Gross Profit
Slide 16: Balance Sheet
Balance Sheet As of December 31, As of December 31, 2017 2016 2017 2016 ASSETS SHAREHOLDERS' EQUITY Non-Current assets Capital stock and other capital related accounts 1.922 87 Property, plant and equipment 5.979 4.881 Reserves 59 44 Intangible assets 75 57 Retained earnings 1.591 460 Investments 0
Slide 17: Statement of Cash Flows
Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Year ended December 31, 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net profit for the year 1.700 502 Adjustments to reconcile net profit to net cash provided by operating activities 2.053 1.489 Changes in op
Slide 18: Adjusted EBITDA Reconciliation & Margin
Adjusted EBITDA Reconciliation & Margin (amo unts expressed in millio ns o f peso s, unless o therwise no ted) Three-months ended Year ended December 31, December 31, 2017 2016 % C hg. 2017 2016 % C hg. Adjusted EBITDA reconciliation: Net profit 692 225 207,7% 1.700 502 238,7% (+) Financial interest
Slide 19: IR Contact
IR Contact Marcos I. Gradin Chief Financial Officer and IRO +54-11-4319-3050 investorrelations@lomanegra.com
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