Loma Negra Compania Industrial Argentina Sa · BCBA:LOMA
Loma Negra Compania Industrial Argentina Sa — Q3 2018 Earnings Presentation
17 slides from Loma Negra Compania Industrial Argentina Sa's earnings presentation, 2018
Slide 1: 3Q18 Results Conference Call
3Q18 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 reports strong adjusted EBITDA growth and margin expansion
Loma Negra reports strong adjusted EBITDA growth and margin expansion… Macro slowdown drives slower cement demand in Argentina, concrete remains solid; healthy pricing Balancing market position and profitability. Strong top line and Adjusted EBITDA growth, while Peso depreciation impacted the bottom
Slide 4: Weak demand environment affected by challenging macro dynamics
… despite a weak demand environment affected by challenging macro dynamics GDP Growth1 (YoY Growth, %) Construction Activity2 (YoY Growth, %) 27.8 3.8 3.90 3.90 22.8 19.5 2.9 3.0 19.3 2.3 2.4 2.4 15.5 14.4 8.4 7.0 0.7 0.1 -1.0 -0.1 -2.6 -2.2 -2.4 -4.2 -4,2 Monthly Industry Cement Sales3 (YoY Growth,
Slide 5: 47% YoY increase in revenues fueled by solid growth in core Argentina and Paraguay
47% YoY increase in revenues fueled by solid growth in core Argentina and Paraguay Cement, as well as concrete segment Revenue Performance: Argentine cement: increase 42% YoY. Favorable pricing environment despite slowdown in demand Paraguay cement: up 73% YoY. Guarani appreciation more than offsets
Slide 6: Gross Profit up 59% with solid margin expansion, while SG&A improves
Gross Profit up 59% with solid margin expansion, while SG&A improves as a percentage of sales Consolidated gross profit up 59% YoY, with gross margin expanding 229 bps to 30.2% mainly driven by Argentine Cement. Partially offset by weaker performance in Railroad and Aggregates, and faster growth in
Slide 7: Adjusted EBITDA up 69% YoY with margin expanding close to 360 bps
Adjusted EBITDA up 69% YoY with margin expanding close to 360 bps, mainly driven by Argentine cement Consolidated Adjusted EBITDA up 69% YoY in 3Q18 driven by strong growth in core cement in Argentina and Paraguay Consolidated Adjusted EBITDA Margin expanded 357 bps to 28% from 24% in 3Q17 Adjusted
Slide 8: Net Majority Income impacted by non-cash FX loss due to Argentine 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 69% YoY Effective tax rate declined to 20.7% in 3Q18 from 32.2% in 3Q17, as a result of higher profit in Paraguay and the
Slide 9: Healthy balance sheet and debt profile
Healthy balance sheet and debt profile Cash position of Ps.2.8 billion and total debt at Ps.7.3 billion in September’18 Debt by Currency Net Debt of Ps.4.6 billion (US$ 112 million) at September’18 US$ Net Debt/ LTM Adj. EBITDA ratio of 0.88x in 3Q18 compared with 0.30x in FY17 Ps. 49% 11% Operating
Slide 10: Looking at full year 2018
Looking at full year 2018 Remain cautiously optimistic despite cement contraction in the recent months on challenging macro backdrop. Expect industry cement sales volumes in 2018 to reach year-ago levels Remain focused on balancing growth and profitability, leveraging leading market position L’Amalí
Slide 11: Questions & Answers
Questions & Answers
Slide 12: Exhibit: Summary Financial Statements
Exhibit: Summary Financial Statements
Slide 13: Income Statement
Income Statement 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 September Nine-months ended September 30, 2018 2017 % Change 2018 2017 % Change Net rev
Slide 14: Balance Sheet
Balance Sheet Condensed Interim Consolidated Statements of Financial Position as of September 30, 2018 and December 31, 2017 (Unaudited) (amounts expressed in millions of pesos, unless otherwise noted) As of September 30, As of December 31, SHAREHOLDERS' EQUITY 2018 2017 C apital stock and other cap
Slide 15: Statement of Cash Flows
Statement of Cash Flows Condensed Interim Consolidated Statement of Cash Flows for the Nine-months and Three-months Ended September 30, 2018 and 2017 Three-months ended September 30, Nine-months ended September 30, (amounts expressed in millions of pesos, unless otherwise noted) 2018 2017 2018 2017
Slide 16: Adjusted EBITDA Reconciliation & Margin
Adjusted EBITDA Reconciliation & Margin Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Table 4: Adjusted EBITDA Reconciliation & Margin (amo unts expressed in millio ns o f peso s, unless o therwise no ted) Three-months ended Nine-months ende
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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