Loma Negra Compania Industrial Argentina Sa · BCBA:LOMA
Loma Negra Compania Industrial Argentina Sa — Q2 2019 Earnings Presentation
17 slides from Loma Negra Compania Industrial Argentina Sa's earnings presentation, Aug 9, 2019
Slide 1: 2Q19 Results Conference Call
2Q19 Results Conference Call August 9, 10am (ET)
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 continues to deliver adjusted EBITDA growth and margin expansion in 2Q19
Loma Negra continues to deliver adjusted EBITDA growth and margin expansion in 2Q19 Argentina Cement volumes still impacted by a weaker but stabilizing economy; positive pricing dynamics; As reported results Net revenues -2.2% to Ps.7.5 billion (US$165 million) Adjusted EBITDA +7.1% to Ps.1.9 billio
Slide 4: Industry demand weakens further due to more challenging macro dynamics
… even as industry demand weakens further due to more challenging macro dynamics GDP Growth1 (YoY Growth, %) Construction Activity2 (YoY Growth, %) 2,7 2,7 2,2 2,5 1 0 -4 -5 -3 -1,4 -6 -8 -2,5 -2,1 -2,5 -12 -12 -16 -16 -3,8 -3,7 -21 -6,1 -5,8 2Q18 3Q18 4Q18 1Q19 2019e 2020e 2021e 2014 2015 2016 2017
Slide 5: Revenues down 2.2%, impacted by softer Concrete segment
Revenues down 2.2%, impacted by softer Concrete segment Revenue Performance: Argentine cement: flat YoY. Volumes contraction of 10.4% balanced by healthy pricing environment Concrete: dropped 17.6% YoY. Volumes down 12.8% as main projects entered into completion phase and new did not ramp up yet Par
Slide 6: Non-recurrent costs related to footprint-adequacy affected Gross Profit
Non-recurrent costs related to footprint-adequacy affected Gross Profit Consolidated gross profit down 4.9% YoY, with gross margin contraction of 72 bps to 25.7%, Excluding non-recurring costs of production footprint enhancement, gross profit would have expanded around 4.5% and gross profit margin w
Slide 7: Adjusted EBITDA increased by 7.1% YoY with solid margin expansion of 225 bps
Adjusted EBITDA increased by 7.1% YoY with solid margin expansion of 225 bps Consolidated Adjusted EBITDA up 7.1% YoY in 2Q19 driven by positive contribution of core cement segment in Argentina, Paraguay, and Railroad. However, it was dimmed by non-recurrent costs, and negative impact of Concrete Co
Slide 8: Net profit up 525% impacted by financial results
Net profit up 525% impacted by financial results Net Profit Attributable to Owners Net Profit Attributable to Owners of the Company in 2Q19 AR$ Million increased 525% YoY in peso terms and measured in US$ increased from US$8 million to US$16 million, mainly impacted by financial results 1,065 Total
Slide 9: Strong balance sheet and sound debt profile
Strong balance sheet and sound debt profile Cash position of Ps.1.2 billion and total debt at Ps.8.1 billion in June ‘19 Debt by Currency Net Debt of Ps.7.0 billion (US$ 164 million) at June ´19 Euro US$ 2% 35% Net Debt/ LTM Adj. EBITDA ratio of 0.76x in 2Q19 compared with 0.43 in Dec.18 Operating c
Slide 10: Looking ahead into 2H2019
Looking ahead into 2H2019 We remain focused on delivering strong results, leveraging our leadership position while seeking productivity gains Cement demand started to recover by mid-year on the back of overall economic turn around L’Amalí plant expansion on track. Completion in June 2020 L´Amalí 2:
Slide 11: Questions & Answers
Questions & Answers
Slide 12: Exhibit: Summary Financial Statements
Exhibit: Summary Financial Statements
Slide 13: Adjusted EBITDA Reconciliation & Margin
Adjusted EBITDA Reconciliation & Margin Table 4: Adjusted EBITDA Reconciliation & Margin (amo unts expressed in millio ns o f peso s, unless o therwise no ted) Three-months ended Six-months ended June 30, June 30, 2019 2018 % C hg. 2019 2018 % C hg. Adjusted EBITDA reconciliation: Net profit 1,100 1
Slide 14: Balance Sheet
Balance Sheet Table 8: Condensed Interim Consolidated Statements of Financial Position as of June 30, 2019 (unaudited) (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December 31, 2019 2018 ASSETS SHAREHOLDERS' EQUITY C apital stock and other capital related acc
Slide 15: Income Statement
Income Statement Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended Six-months ended June 30, June 30, % 2019 2018 % C hange 2019 2018 C hange Net revenue 7,470 7,637 -2.2% 15,615 15,495 0
Slide 16: Statement of Cash Flows
Statement of Cash Flows Table 10: Condensed Interim Consolidated Statement of Cash Flows for the Six-months and Three-months Ended June 30, 2019 and 2018 (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended Six-months ended June 30, June 30, 2019 2018 2019 2018 CASH FL
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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