Group 1 - The core investment strategy of Quipus Capital focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - Quipus Capital emphasizes understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations from Quipus Capital will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - The articles produced by Quipus Capital aim to provide important information for future investors and introduce a healthy skepticism in a generally bullish market [1]

Financial Data and Key Metrics Changes - The consolidated margin for the quarter stood at 21.2%, showing a year-over-year decline primarily due to a challenging competitive environment [6] - Adjusted EBITDA for the quarter was $34 million, down 31% in real terms when measured in pesos, reflecting a contraction in EBITDA margin [7][17] - Net profit attributable to owners of the company totaled ARS 0.4 billion for the quarter, a significant decline from ARS 41 billion in the same quarter of 2024 [20] Business Line Data and Key Metrics Changes - Cement dispatch volumes grew by 14% year-over-year, but the Cement segment revenue declined by 9.9% due to weaker pricing [11][12] - Concrete revenues declined by 1.1% despite a 44% increase in volumes, impacted by price pressures [14] - The Aggregates segment posted a slight revenue increase of 0.8%, driven by a 44% increase in volumes [14] Market Data and Key Metrics Changes - The Argentine economy showed a year-over-year growth of 5.8% in the first quarter, with forecasts for the full year around 5% [9][10] - The Construction Activity Index (ISAC) indicates a positive rebound in the industry, although recovery is not uniform across all sectors [11] Company Strategy and Development Direction - The company is focused on operational efficiency and innovation, with a commitment to transitioning to 25-kilogram cement bags [27] - The management remains optimistic about the future, expecting double-digit growth in cement dispatches for 2025 [26] Management Comments on Operating Environment and Future Outlook - Management noted that the recovery is still in the early stages, with potential political volatility due to upcoming midterm elections [11] - The competitive environment is stable, with expectations for pricing recovery in the second half of the year [34][64] Other Important Information - The company successfully issued a new corporate bond for $112.9 million to address upcoming debt maturity and improve its maturity profile [8][24] - Cash flow used in operational activities totaled ARS 22.3 billion, driven by lower operational results and higher income tax paid [22] Q&A Session Summary Question: Timing of price increases and competitive trends - Management indicated that the competitive environment has been challenging, but they foresee an increase in pricing above inflation by the end of the year [33][34] Question: Outlook for construction in the second half of the year - Management expects a gradual moderate growth in construction activity, driven by public works and private investments [39] Question: Expectations for volume growth in 2025 - Management maintains a double-digit growth forecast for volumes in 2025, with specific expectations for low to mid-teens growth [42][50] Question: Impact of energy prices on margins - Management acknowledged that both energy prices and competitive dynamics have affected margins, but they expect a recovery in pricing [56][64] Question: Public work program recovery outlook - Management believes there is significant potential in public infrastructure projects, but the impact in the second half of the year may be limited [67]

Financial Performance - Net revenues reached Ps 174511 million, down 80% (US$ 149 million)[12] - Adjusted EBITDA stood at Ps 37005 million, down 306% (US$ 34 million)[12] - Consolidated Adjusted EBITDA margin reached 212%, with a contraction of 691 bps YoY from 281%[11] - Net Profit Attributable to Owners of the Company in 2Q25 was Ps 04 billion, down from Ps 41309 million in 2Q24[36] - Consolidated Gross Profit declined 305% year-over-year, while margin contracted by 659 basis points to 204%[28] Volumes and Sales - Cement business dispatches continue its recovery, growing 11% YoY[9] - Total Net Revenues decreased by 80% year-over-year[22] - Concrete sales volumes improved by 440% year-over-year[22] - Aggregates sales volumes increased by 341% year-over-year[22] Balance Sheet - Balance sheet remains solid, with Net Debt of US$ 215 million, representing a Net Debt/LTM Adjusted EBITDA ratio of 134x[11] - Cash position and Investments of Ps 159 billion and total debt at Ps 2721 billion as of end of 2Q25[37] - Successful US$1129 million Class 5 bond issuance in July to refinance short-term debt, extending average duration and preserving a balanced maturity profile[11]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Loma Negra Compania Industrial Argentina (LOMA) as a strong value stock opportunity based on its financial metrics and rankings [2][4][6]. Company Analysis - Loma Negra Compania Industrial Argentina (LOMA) holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock has a Forward P/E ratio of 10.14, which is lower than the industry average of 10.65, suggesting it may be undervalued [4]. - Over the past 52 weeks, LOMA's Forward P/E has fluctuated between a high of 17.60 and a low of 7.84, with a median of 10.50, indicating volatility but also potential for recovery [4]. Financial Metrics - LOMA has a P/CF ratio of 6.31, which is attractive compared to the industry's average P/CF of 7.89, further supporting the notion of undervaluation [5]. - The P/CF ratio has ranged from a high of 8.14 to a low of 3.35 over the past year, with a median of 5.66, reflecting its cash flow strength [5]. - These financial metrics suggest that LOMA is likely undervalued at present, making it an appealing option for value investors [6].

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $40 million, reflecting a 3.2% decrease in pesos, translating to $36 per ton [9][20] - Net profit attributable to owners of the company totaled ARS 21.5 billion, down from ARS 79 billion in the first quarter of 2024, primarily due to lower financial results [23] - The net debt increased sequentially to ARS 187 billion, with a debt to EBITDA ratio of 0.96x, slightly up from 0.89x at the end of 2024 [24][25] Business Line Data and Key Metrics Changes - The Cement segment experienced a 10.9% revenue drop despite an 8.9% year-over-year increase in volumes, attributed to a softer pricing environment [14] - Concrete revenues declined by 1.4%, with a 22.8% increase in volumes offset by price pressures [14] - The Aggregates segment saw a 14.2% revenue decline despite a 29% increase in sales volumes, impacted by a weak market and pricing dynamics [15][22] Market Data and Key Metrics Changes - Cement consumption showed improvement, with April figures indicating a 28% year-over-year increase and a 14% sequential increase [12][8] - The Argentine economy is projected to grow approximately 5% in 2025, following a 1.7% contraction in 2024 [11][7] - The construction sector is expected to benefit from this economic growth, potentially fueling a more robust recovery [7] Company Strategy and Development Direction - The company remains focused on driving efficiency and controlling costs to protect profitability while delivering quality products and services [29] - The management expressed optimism about the recovery in the construction sector and the overall economy, anticipating a more sustained recovery in the coming quarters [27][28] - The company is also looking to capitalize on investment projects that have been on hold due to previous economic uncertainties [28] Management Comments on Operating Environment and Future Outlook - Management noted that the industry is still in the early stages of recovery, with expectations for a stronger performance as the year progresses [12][28] - The stabilization of economic conditions and easing of capital controls are seen as critical steps for long-term benefits [28] - The management is optimistic about the potential for growth in cement volumes, expecting double-digit growth in 2025 [42] Other Important Information - The company invested ARS 11.1 billion in capital expenditures during the quarter, mainly for ongoing projects [24] - SG&A expenses decreased by 7.8%, primarily due to lower marketing and IT expenditures [19] Q&A Session Summary Question: Competitive dynamics and market share - Management indicated that market share dynamics are in line with their strategy, and climate issues impacted different regions [32][34] Question: Pricing power and cement volume expectations - Management expects pricing to remain around $115 per ton and anticipates a year-over-year growth in cement volumes in the range of 15% to 20% [39][42] Question: Volume outlook and project backlogs - Management is optimistic about upcoming projects, particularly in the renewable energy and public works sectors, which are expected to drive demand [48]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $40 million, reflecting a 3.2% decrease in pesos, translating to $36 per ton [9][20] - Net profit attributable to owners of the company totaled ARS 21.5 billion, down from ARS 79 billion in the first quarter of 2024, primarily due to lower financial results [23] - The net debt increased sequentially to ARS 187 million, with a debt to EBITDA ratio of 0.96x, slightly up from 0.89x at the end of 2024 [24][25] Business Line Data and Key Metrics Changes - The Cement segment experienced a 10.9% revenue drop despite an 8.9% year-over-year increase in volumes, attributed to a softer pricing environment [14] - Concrete revenues declined by 1.4% despite a 22.8% increase in volumes, impacted by competitive pricing pressures [14] - The Aggregates segment saw a 14.2% revenue decline despite a 29% increase in sales volumes, affected by pricing dynamics and a lower average price due to the sales mix [15][22] Market Data and Key Metrics Changes - Cement consumption showed signs of improvement, with April figures indicating a 28% year-over-year increase and a 14% sequential increase [12][8] - The Argentine economy is projected to grow approximately 5% in 2025, following a 1.7% contraction in 2024, which is expected to benefit the construction sector [11][7] Company Strategy and Development Direction - The company remains focused on driving efficiency and controlling costs to protect profitability while delivering quality products and services [29] - The management expressed optimism about the recovery of the industry, indicating that the stabilization plans and easing of capital controls could unlock investment projects [28] Management Comments on Operating Environment and Future Outlook - Management noted that the industry is in the early stages of recovery, with expectations for a more sustained recovery in the coming quarters [27][28] - The company is optimistic about the potential for increased cement demand driven by infrastructure projects and a recovering housing market [48] Other Important Information - The company invested ARS 11.1 billion in capital expenditures during the quarter, primarily for the final stage of the 25-kilogram bag projects [24] - SG&A expenses decreased by 7.8%, mainly due to lower marketing and IT expenditures [19] Q&A Session Summary Question: Competitive dynamics and market share - Management indicated that market share dynamics are consistent with their strategy, and climate issues impacted different regions [32] Question: Pricing power and cement volume expectations - Management expects pricing to remain around $115 per ton and maintains expectations for double-digit growth in cement volumes for 2025 [40][42] Question: Volume outlook and project demand - Management noted positive forecasts for cement demand, with many tenders moving forward for projects expected to start in the second semester [48]

Financial Data and Key Metrics Changes - The Argentine economy is projected to grow approximately 5% in 2025, following a contraction of 1.7% in 2024, which positively impacts the construction sector [6][11] - The company reported an adjusted EBITDA of $40 million, reflecting a 3.2% decrease in pesos, translating to $36 per ton [8][19] - Net profit attributable to owners of the company totaled ARS 21.5 billion, down from ARS 79 billion in Q1 2024, primarily due to lower financial results [22] Business Line Data and Key Metrics Changes - The Cement segment experienced a 10.9% revenue drop despite an 8.9% year-over-year increase in volumes, attributed to a softer pricing environment [14] - Concrete revenues declined by 1.4%, with a 22.8% increase in volumes offset by price pressures [14] - The Aggregates segment saw a 14.2% revenue decline despite a 29% increase in sales volumes, impacted by a weak market activity [15] Market Data and Key Metrics Changes - Cement consumption showed a year-over-year increase of 28% in April, indicating a recovery trend [7][12] - The company’s gross profit declined by 4.7%, but gross margin expanded by 116 basis points to 26.4% [17] - The railroad segment reported a 19.9% increase in transported volumes, although pricing pressures remained due to a higher share of lower-revenue grain transport [16][21] Company Strategy and Development Direction - The company aims to drive efficiency and control costs while safeguarding profitability and delivering quality products [28] - The management is optimistic about the recovery of the construction sector, expecting a more sustained recovery in the coming quarters [26] - Changes in exchange rate policy and easing of capital controls are seen as pivotal for unlocking investment projects [27] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the early stages of recovery in the construction sector, despite challenges from adverse weather conditions [6][12] - The company remains focused on maintaining a strong balance sheet and is committed to protecting profitability [8][28] - The outlook for cement demand is positive, with expectations of double-digit growth in 2025 [43] Other Important Information - The company ended the quarter with net debt of ARS 187 billion and a debt to EBITDA ratio of 0.96x, slightly up from 0.89x at the end of 2024 [23][24] - Cash flow used in operating activities improved significantly, totaling ARS 1.3 billion compared to ARS 12 million in Q1 2024 [23] Q&A Session Summary Question: Competitive dynamics and market share - Management indicated that market share dynamics are in line with their strategy, and weather conditions impacted regional performance [31][33] Question: Pricing power and cement volume outlook - Management expects pricing to remain around $115 per ton, with a positive outlook for volume growth, anticipating double-digit growth in 2025 [38][43] Question: Volume outlook related to construction projects - Management noted positive forecasts for cement demand, with several tenders moving forward, particularly in renewable energy and public works [47][51]

Financial Performance - Net revenues reached Ps 1632 billion, down 89% (US$ 149 million) [11] - Adjusted EBITDA stood at Ps 392 billion, down 32% (US$ 40 million) [11] - Consolidated Adjusted EBITDA margin reached 240%, with an expansion of 140 bps YoY from 226% [11] - Net Profit Attributable to Owners of the Company in 1Q25 was Ps 215 billion, down from Ps 791 billion in 1Q24 [36] - Total finance gain was Ps 89 billion in 1Q25, compared to a net gain of Ps 1032 billion in 1Q24 [36] Volumes and Sales - 1Q25 Volumes Up 11% YoY [14] - Cement, masonry & lime sales volumes increased by 89% year-over-year, but revenues decreased by 109% [21, 22] - Concrete sales volumes improved 228%, but revenues decreased 14% YoY [21, 22] - Railroad sales volumes increased 199%, but revenues decreased 12% YoY [21, 22] - Aggregates sales volumes increased 290%, but revenues decreased 142% year-over-year [21, 22] Balance Sheet and Cash Flow - Net Debt of US$ 174 million, representing a Net Debt/LTM Adjusted EBITDA ratio of 096x [11] - Cash position and Investments of Ps 106 billion and total debt at Ps 1972 billion as of end of 1Q25 [37] - In 1Q25, the cash used in Operating Activities reached Ps 13 billion from a utilization of cash of Ps 120 billion in 1Q24 [37]

[PART I](index=10&type=section&id=PART%20I) This part covers the company's foundational information, including key personnel, offer details, critical risk factors, and a comprehensive overview of its business operations and development [ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](index=10&type=section&id=ITEM%201.%20IDENTITY%20OF%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20ADVISERS) This section states that information regarding the identity of directors, senior management, and advisers is not applicable for this report - Information for Directors and Senior Management, Advisers, and Auditors is marked as 'Not applicable'[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE](index=10&type=section&id=ITEM%202.%20OFFER%20STATISTICS%20AND%20EXPECTED%20TIMETABLE) This section indicates that details regarding offer statistics and the expected timetable are not applicable for this report - Offer Statistics and Method and Expected Timetable are marked as 'Not applicable'[36](index=36&type=chunk)[37](index=37&type=chunk) [ITEM 3. KEY INFORMATION](index=10&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines key information about the company, including reserved items, capitalization and indebtedness, reasons for the offer and use of proceeds, and a comprehensive overview of risk factors - Sections A (Reserved), B (Capitalization and Indebtedness), and C (Reasons for the Offer and Use of Proceeds) are marked as 'Not applicable'[38](index=38&type=chunk)[39](index=39&type=chunk) - The company's business, financial condition, and results of operations are materially affected by macroeconomic, regulatory, social, and political conditions in Argentina, as well as exchange rates between the peso and foreign currencies, particularly the U.S. dollar[42](index=42&type=chunk)[43](index=43&type=chunk) - Investing in Argentina, a developing economy, entails inherent risks such as political, social, and economic instability, including price controls, foreign exchange controls, currency devaluations, high interest rates, and increased government intervention[44](index=44&type=chunk)[45](index=45&type=chunk) [D. Risk Factors](index=10&type=section&id=D.%20Risk%20Factors) The company faces significant risks primarily due to its operations in Argentina, including economic volatility, high inflation, peso devaluation, and government intervention [Risks Relating to Argentina](index=10&type=section&id=Risks%20Relating%20to%20Argentina) Risks related to Argentina include extreme economic volatility, high inflation (CPI **117.8% in 2024**), significant peso depreciation (**27.7% in 2024**), and stringent exchange controls Argentine Economic Indicators (2022-2024) | Indicator | 2024 | 2023 | 2022 | | :-------------------------------- | :----- | :----- | :----- | | GDP Growth | (1.7)% | (1.6)% | 5.0% | | CPI Inflation | 117.8% | 211.4% | 94.8% | | Peso Depreciation (YoY) | 27.7% | 356.44% | 70% | | BCRA International Reserves (Dec 31) | N/A | US$23.1B | US$65.7B (2018) | | Fiscal Surplus (as % of GDP) | 0.3% | (2.9)% | (2.4)% | - The new government, which took office in December 2023, implemented policies aimed at deregulating the economy, including declaring a public emergency and approving the 'Bases Law' for legislative delegations, large investments, labor modernization, and tax changes[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The Argentine banking system, despite recent growth in loans and deposits, remains vulnerable due to short-term deposits and limited long-term funding, posing risks of instability that could affect the company's sales and increase uncollectible accounts[122](index=122&type=chunk)[123](index=123&type=chunk)[126](index=126&type=chunk) [Risks Relating to Our Indirect Controlling Shareholder](index=21&type=section&id=Risks%20Relating%20to%20Our%20Indirect%20Controlling%20Shareholder) The company faces reputational and financial risks due to its indirect controlling shareholder, Mover Participações S.A., whose subsidiary CCCC was involved in Brazil's 'Operation Car Wash' corruption investigation - Construções e Comércio Camargo Corrêa S.A. (CCCC), a subsidiary of Mover Participações S.A., was involved in Brazil's 'Operation Car Wash' investigation, admitting to anti-corruption and antitrust law violations and agreeing to pay over **1,400 million Brazilian reais** in compensation[135](index=135&type=chunk)[136](index=136&type=chunk) - InterCement Participações S.A., the company's controlling shareholder, is undergoing a judicial reorganization process in Brazil, introducing uncertainty regarding its future operations and financial stability, and potentially leading to a change of control for Loma Negra[141](index=141&type=chunk) - A pledge of **52.14%** of Loma Negra's total capital stock by Intercement Trading e Inversiones S.A. (a subsidiary of the controlling shareholder) as collateral for debenture obligations could result in market fluctuations and a potential change of control if the pledge is executed[259](index=259&type=chunk) [Risks Relating to Our Business and Industry](index=22&type=section&id=Risks%20Relating%20to%20Our%20Business%20and%20Industry) The company's business is exposed to the cyclical nature of the cement industry, intense competition, and fluctuations in construction projects - The cement industry is cyclical and sensitive to economic conditions, leading to potential declines in demand and competitive pressure to lower prices, which could diminish profit margins[142](index=142&type=chunk) - Cement consumption is highly correlated with construction levels; a reduction in private or public construction projects in Argentina, such as the government's decision to stop financing public works, could significantly decrease demand for the company's products[148](index=148&type=chunk)[150](index=150&type=chunk) Energy Costs as Percentage of Total Cost of Sales | Energy Type | 2024 | 2023 | 2022 | | :------------ | :--- | :--- | :--- | | Thermal Energy | 13% | 16% | 16% | | Electricity | 8% | 8% | 9% | - The railway concession for Ferrosur Roca S.A. is provisionally extended until September 2025, but may be revoked earlier without compensation, and the government is implementing significant changes to railway infrastructure policies, potentially impacting the company's transportation operations[207](index=207&type=chunk)[208](index=208&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - Compliance with Resolution 54/2018, requiring cement bags to be reduced to a maximum net content of **25 kilograms** by July 1, 2025, could adversely affect operations and profitability due to uncertainties in commercialization of existing stock[190](index=190&type=chunk)[191](index=191&type=chunk) [Risks Relating to Our Ordinary Shares and the ADSs](index=33&type=section&id=Risks%20Relating%20to%20Our%20Ordinary%20Shares%20and%20the%20ADSs) The market price of the company's ADSs is subject to significant fluctuations due to various factors, including operational results, economic conditions in Argentina, and investor perceptions - The market price of the company's ADSs increased by **68% in 2024** and **4% in 2023**, but remains subject to significant fluctuations due to factors like operational changes, investor perceptions, economic trends in Argentina, and catastrophic events[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) - Argentine foreign exchange restrictions, including those reinstated in September 2019 and amended by BCRA Communication 'A' 8226, may limit the company's ability to transfer funds abroad for dividend payments to foreign shareholders, potentially affecting ADS holders[243](index=243&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - The controlling shareholder's **52.14%** ownership limits the ability of other shareholders to influence corporate matters, including board composition, mergers, dividends, and asset dispositions, and their interests may conflict with those of other shareholders[256](index=256&type=chunk)[257](index=257&type=chunk) - As a 'foreign private issuer' and 'controlled company,' Loma Negra follows Argentine corporate governance practices, which differ from NYSE standards (e.g., no majority independent directors, no independent compensation/nominating committees), potentially limiting protections for investors[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) [ITEM 4. INFORMATION ON THE COMPANY](index=32&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a comprehensive overview of Loma Negra, detailing its history, business operations, product portfolio, production processes, capacities, and market position - Loma Negra produces and distributes cement, masonry cement, aggregates, concrete, and lime, primarily for private and public construction, holding a **44.4% market share** in Argentina's cement sales volume as of December 31, 2024[288](index=288&type=chunk) Key Financial Data (2023-2024) | Metric | 2024 (Ps. millions) | 2023 (Ps. millions) | | :------------- | :------------------ | :------------------ | | Revenues | 699,179 | 919,313 | | Net Profit | 153,627 | 21,080 | | Net Profit Margin | 22.0% | 2.3% | | Net Debt | 162,348 | 306,254 | - The company's existing quarries have sufficient limestone reserves to support operations for approximately **149 years**, based on the cement production levels of the last five years[289](index=289&type=chunk) [A. History and Development of the Company](index=32&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Loma Negra, incorporated in 1926, has grown into a vertically-integrated cement and concrete company in Argentina - Loma Negra was incorporated on May 10, 1926, with a broad corporate purpose including industrial, mining, construction, transportation, and public services activities[277](index=277&type=chunk) - The company acquired concrete operations in the greater Buenos Aires area and Rosario in 1998, operating under the Lomax brand and becoming a leading concrete company in those regions[278](index=278&type=chunk) - In 2005, Loma Negra became part of the InterCement Group, leading to significant investments in production capacity and efficiency, including diversifying energy matrix with alternative fuels[280](index=280&type=chunk) - In December 2021, the second line of the L'Amalí plant was inaugurated, significantly increasing production capacity and incorporating high-efficiency, sustainable features like alternative fuel use[285](index=285&type=chunk) [B. Business Overview](index=33&type=section&id=B.%20Business%20Overview) Loma Negra is a vertically-integrated cement and concrete company in Argentina, producing cement, masonry cement, aggregates, concrete, and lime [Our Products](index=43&type=section&id=Our%20Products) Loma Negra offers a diverse portfolio of cement products, masonry cement (Plasticor brand), lime (Cacique Plus, Cacique Max, Loma Negra Plus), and concrete/aggregates (Lomax brand) - Cement accounted for approximately **88% of shipments in 2023** and **89% in 2024**, with bagged cement representing **56% of sales in 2023** and **60% in 2024**[291](index=291&type=chunk)[292](index=292&type=chunk) - The company's masonry cement brand, Plasticor, is a market leader in Argentina[295](index=295&type=chunk) - Lomax, the company's concrete brand, focuses on quality, operational and logistic capacity, and customized solutions for large construction projects[299](index=299&type=chunk) [Production Process](index=43&type=section&id=Production%20Process) The cement production process involves nine main stages: mining, transportation, primary crushing, pre-homogenization, grinding and homogenization (raw meal), clinkerization (burning raw meal), cooling and final milling, storage, and dispatch - Cement production follows a dry process, including extraction of limestone and clay, grinding into 'raw meal', burning in kilns at up to **1,450°C** to produce 'clinker', and final milling and storage[300](index=300&type=chunk)[301](index=301&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk) - Lime production involves calcination of limestone in rotary kilns at up to **1,200°C** to produce quicklime, which can then be processed into hydrated lime[316](index=316&type=chunk)[317](index=317&type=chunk)[319](index=319&type=chunk) - Masonry cement production blends clinker, gypsum, and plasticizing materials to create a mortar for brick, block, and stone masonry construction[322](index=322&type=chunk)[323](index=323&type=chunk) [Capacity and Volumes](index=46&type=section&id=Capacity%20and%20Volumes) As of December 31, 2024, Loma Negra's total installed cement capacity was **12.1 million tons** and clinker capacity was **7.3 million tons** Operating Data (Annual Capacity and Production Volume in Million Tons) | Metric | 2024 | 2023 | 2022 | | :-------------------------- | :--- | :--- | :--- | | Total installed cement capacity | 12.1 | 12.1 | 12.1 | | Total installed clinker capacity | 7.3 | 7.1 | 7.1 | | Installed concrete capacity (million m³) | 1.3 | 1.3 | 1.3 | | Installed aggregates capacity | 2.2 | 2.2 | 2.2 | | Installed lime capacity | 0.5 | 0.5 | 0.5 | | Cement, masonry and lime total production | 4.8 | 6.4 | 6.5 | | Clinker Total production | 3.1 | 4.3 | 4.3 | Annual Production of Cement, Masonry Cement and Lime by Plant (2022-2024) | Name | 2024 (million tons) | 2023 (million tons) | 2022 (million tons) | | :---------------- | :------------------ | :------------------ | :------------------ | | Barker | 0.1 | 0.1 | 0.1 | | Catamarca | 0.9 | 1.2 | 1.2 | | L'Amalí/LomaSer | 2.6 | 3.6 | 3.6 | | Olavarría | 0.6 | 0.8 | 0.9 | | San Juan | 0.1 | 0.2 | 0.2 | | Zapala | 0.3 | 0.3 | 0.3 | | Ramallo | 0.2 | 0.2 | 0.2 | | **Total** | **4.8** | **6.4** | **6.5** | [Quality Control](index=48&type=section&id=Quality%20Control) Loma Negra maintains stringent quality control measures throughout its cement production process, including chemical, physical, and x-ray tests on raw materials, clinker, and finished products - Quality control involves periodic chemical, physical, and x-ray tests on raw materials, clinker, and finished products at various stages of the production line[330](index=330&type=chunk)[331](index=331&type=chunk) - All of Loma Negra's plants have received ISO 9001 certification, reflecting the quality of products and operating procedures[331](index=331&type=chunk) [Raw Materials](index=48&type=section&id=Raw%20Materials) The primary raw materials for cement production include limestone, clay, gypsum, and clinker additions like slag and pozzolana, constituting **19% of total cost of sales in 2024** - Raw materials (gypsum, slag, iron ore, steel slabs, clay, sand, pozzolana) accounted for **19% of total cost of sales in 2024**, **18% in 2023**, and **15% in 2022**[152](index=152&type=chunk)[332](index=332&type=chunk) - All limestone used in 2024 was sourced from the company's own quarries, ensuring cost competitiveness[332](index=332&type=chunk) [Mining Operations Disclosure (Mineral Reserves)](index=48&type=section&id=Mining%20Operations%20Disclosure%20%28Mineral%20Reserves%29) Loma Negra operates four open-pit quarries, holding approximately **1,068.5 million tons of limestone reserves**, sufficient for about **149 years** of cement production - Loma Negra operates four open-pit quarries, with total limestone reserves of approximately **1,068.5 million tons**, estimated to supply **149 years** of cement production at current consumption rates[338](index=338&type=chunk) - Proven and probable reserve estimates are based on recoverable tons, geological interpretation, and statistical inferences from drilling and sampling, with limestone generally requiring at least **75% calcium carbonate (CaCO3) concentration**[334](index=334&type=chunk)[336](index=336&type=chunk)[346](index=346&type=chunk) Summary of Mineral Reserves as of December 31, 2024 (Million Tons) | Material | Proven (Million Tons) | Probable (Million Tons) | Total (Million Tons) | | :----------------- | :-------------------- | :---------------------- | :------------------- | | Limestone: | | | | | Doña Amalía | 49.2 | 56.2 | 105.4 | | El Salitral y Cerro Bayo | 30.4 | 48.4 | 78.8 | | Barker | 43.6 | 27.0 | 70.5 | | La Pampita y Entorno | 575.8 | 35.3 | 611.1 | | Cerro Soltero I | — | 53.5 | 53.5 | | Cerro Soltero II | — | 111.6 | 111.6 | | El Cerro | — | 37.6 | 37.6 | | Granitic aggregates: | | | | | La Preferida | 59.0 | 54.2 | 113.2 | [Summary Mining Operations Disclosure](index=49&type=section&id=Summary%20Mining%20Operations%20Disclosure) Loma Negra operates four open-pit limestone quarries and one granite quarry, all in the production stage, with total limestone reserves of approximately **1,068.5 million tons** - The company owns and operates four open-pit quarries for limestone and one for granite, all in the production stage, with total limestone reserves of approximately **1,068.5 million tons**[338](index=338&type=chunk)[340](index=340&type=chunk) - Mining capital expenditures are directed towards developing new quarries and sustaining investments in equipment, crushing systems, safety, and environmental compliance[340](index=340&type=chunk) Aggregate Production by Material (2022-2024) | Material | 2024 (thousand tons) | 2023 (thousand tons) | 2022 (thousand tons) | | :------------------- | :------------------- | :------------------- | :------------------- | | Limestone | 7,179.3 | 8,034.7 | 8,382.9 | | Granite | 1,100.6 | 1,459.8 | 1,310.7 | [Individual Properties Disclosure](index=52&type=section&id=Individual%20Properties%20Disclosure) The La Pampita y Entorno quarry, located in Olavarría, Buenos Aires, is a material mining operation supplying limestone to the L'Amalí and Olavarría cement plants - The La Pampita y Entorno quarry, encompassing La Pampita, Don Gabino, Los Abriles, and San Alfredo Sur II, is located **20 kilometers southeast of Olavarría** and has been exploited since 1999[351](index=351&type=chunk)[352](index=352&type=chunk) - The quarry supplies limestone to the L'Amalí and Olavarría cement plants, which are located **2 and 5 kilometers away**, respectively[376](index=376&type=chunk) La Pampita y Entorno Mineral Reserves as of December 31, 2024 | Reserve Type | Amount (Million Tons) | Grades/Qualities (% CaO) | | :------------- | :-------------------- | :----------------------- | | Proven | 575.8 | 47.4 | | Probable | 35.3 | 47.1 | | **Total** | **611.1** | **47.4** | - A life of mine of **122 years** has been calculated for the La Pampita y Entorno quarry based on the last five years of exploitation, or **66 years** considering the maximum capacity of the plants it supplies[397](index=397&type=chunk) [Energy Sources](index=58&type=section&id=Energy%20Sources) Energy is a significant cost component, accounting for **21% of total cost of sales in 2024**, with thermal energy at **13%** and electrical power at **8%** - Energy costs represented **21% of total cost of sales in 2024**, with thermal energy at **13%** and electrical power at **8%**[406](index=406&type=chunk)[407](index=407&type=chunk)[412](index=412&type=chunk) - The company's energy matrix is diversified, allowing flexibility to optimize fuel sources based on price and availability, with natural gas prevailing as the main source of thermal energy[407](index=407&type=chunk)[408](index=408&type=chunk)[411](index=411&type=chunk) - In 2024, **58%** of the company's electrical power requirements were covered by renewable energy sources, exceeding the **18% legal requirement for 2023** and moving towards the **20% goal by 2025**[415](index=415&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk) - Co-processing, which uses waste as an alternative fuel, accounted for **4.3% of total thermal energy consumption in 2024**, up from **2.2% in 2023**, contributing to sustainability and cost reduction[554](index=554&type=chunk) [Sales, Marketing and Customers](index=60&type=section&id=Sales%2C%20Marketing%20and%20Customers) Loma Negra serves over **1,000 clients** in Argentina through dedicated sales teams, maintaining long-term, often exclusive, relationships with approximately **65% of its customer base** - The company serves over **1,000 clients** in Argentina, with approximately **65% of its customer base** operating under long-standing, exclusive relationships, representing over **77% of total cement shipments**[423](index=423&type=chunk) - In 2024, **64% of total cement sales** were made directly to wholesale distributors, **26% to concrete producers**, **6% to industrial customers**, and **3% to construction companies and others**[424](index=424&type=chunk) - Marketing efforts include strengthening brand image at points of sale and through sponsorships, reinforcing Loma Negra as a synonym for cement in Argentina[430](index=430&type=chunk) [Distribution](index=61&type=section&id=Distribution) Loma Negra operates a nationwide distribution system across six regions in Argentina, with the Buenos Aires Complex (centered around LomaSer) serving the principal market - The company's distribution platform is divided into six regions: Buenos Aires, Central, Northwestern, Northeastern, Patagonia, and Cuyo, with the Province of Buenos Aires being the principal market (**44% of total volume sold in 2024**)[431](index=431&type=chunk) - LomaSer, located near Buenos Aires, acts as a blending, distribution, and logistics center, enabling quick response to client needs and delivering cement within **24 hours** in the Greater Buenos Aires area[435](index=435&type=chunk) - The Ferrosur Roca freight railway network, extending **3,100 kilometers** and connected to five of the company's plants, is utilized for shipping products and raw materials, and also generates revenue from third-party freight services[437](index=437&type=chunk) [Our Subsidiaries](index=62&type=section&id=Our%20Subsidiaries) Loma Negra's principal subsidiaries are Cofesur S.A.U. (**100% owned**), which indirectly controls Ferrosur Roca S.A. (**80% owned**) for rail freight, and Recycomb S.A.U. (**100% owned**) for industrial waste recycling Principal Subsidiaries and Equity Ownership | Subsidiary | Equity Ownership Interest (%) | Main Activity | | :------------------ | :---------------------------- | :------------ | | Ferrosur Roca S.A. | 80.00 | Rail freight | | Recycomb S.A.U | 100.00 | Waste recycling | - Ferrosur Roca S.A. operates a **3,100-kilometer** freight railway network, strategic for Loma Negra's business as it links directly to five of its plants and a distribution center[440](index=440&type=chunk) - Recycomb S.A.U. operates a blending facility for recycling industrial waste into alternative fuel sources, with an annual production capacity of **106,000 tons**[450](index=450&type=chunk) - Ferrosur Roca's railway concession, initially set to expire in March 2023, has been provisionally extended until September 10, 2025, with ongoing discussions regarding its future as a cargo operator under an open access scheme[445](index=445&type=chunk)[446](index=446&type=chunk)[448](index=448&type=chunk) [Information Technology](index=63&type=section&id=Information%20Technology) Loma Negra relies on its information technology infrastructure and automated operating systems to monitor production processes, ensure consistency, and support business growth - Information technology infrastructure and automated operating systems are critical for efficient operation, managing production processes, and supporting business growth[451](index=451&type=chunk) - The company uses an enterprise resource planning (ERP) model to develop production, sourcing, and pricing models based on anticipated consumer demand[451](index=451&type=chunk) - Loma Negra holds license agreements for intellectual property rights with companies such as Microsoft, SAP, Adobe, and Aveva[453](index=453&type=chunk) [Insurance](index=64&type=section&id=Insurance) Loma Negra maintains insurance policies against third-party damages, property loss, and business interruption risks for its plants, equipment, and buildings, with an aggregate value at risk of approximately **US$1.49 billion** as of December 31, 2024 - The company maintains insurance policies covering property loss and business interruption risks for its plants, equipment, and buildings, with an aggregate value at risk of approximately **US$1,494,572,633** as of December 31, 2024[454](index=454&type=chunk) - These policies have a deductible of **US$250,000 per claim**, and coverage for loss of profit derived from material damages is **21 days**[454](index=454&type=chunk) - As of December 31, 2024, the company's insurance does not cover losses associated with cybersecurity risks[219](index=219&type=chunk)[332](index=332&type=chunk) [Sustainability and Social Responsibility](index=64&type=section&id=Sustainability%20and%20Social%20Responsibility) Loma Negra is committed to sustainability through its Triple Impact concept, focusing on economic growth, social contribution, and environmental care - Loma Negra operates under a 'Triple Impact' concept, promoting economic growth, social contribution, and environmental care, and publishes an annual Sustainability Report[456](index=456&type=chunk)[457](index=457&type=chunk) - The company's 2030 Climate Roadmap focuses on reducing carbon footprint, promoting circular economy, diversifying energy matrix, and efficient resource use, aligning with Global Cement and Concrete Association (GCCA) guidelines[462](index=462&type=chunk)[463](index=463&type=chunk)[467](index=467&type=chunk) - In 2024, **57.5% of electricity** came from renewable sources, and **4.26% of thermal energy** from alternative fuels, resulting in a reduction of **907,347 t CO2e** compared to 2023[468](index=468&type=chunk) - The Loma Negra Foundation implements programs (Bridge, Commitment, Roots, Transform) aligned with UN Sustainable Development Goals, focusing on youth employment, community alliances, productive activities, and innovative solutions for social and environmental problems[470](index=470&type=chunk)[471](index=471&type=chunk)[472](index=472&type=chunk)[473](index=473&type=chunk)[474](index=474&type=chunk)[475](index=475&type=chunk) [Competition](index=66&type=section&id=Competition) The Argentine cement market is competitive, dominated by four main groups: Loma Negra, Cementos Avellaneda, Holcim Argentina, and Petroquímica Comodoro Rivadavia - The Argentine cement market is competitive, with four principal groups: Loma Negra, LafargeHolcim (through Juan Minetti S.A. and Corcemar S.A.), Cementos Avellaneda S.A., and Petroquímica Comodoro Rivadavia S.A[477](index=477&type=chunk) - Loma Negra is the only cement company in Argentina with nationwide coverage, while competitors like Holcim Argentina S.A. have strong market positions in specific provinces[480](index=480&type=chunk)[481](index=481&type=chunk) - In December 2021, Loma Negra inaugurated the second line of its L'Amalí plant, increasing its capacity by approximately **3 million tons annually** and making it one of the largest cement plants in South America[483](index=483&type=chunk) [Legal and Regulatory Matters](index=67&type=section&id=Legal%20and%20Regulatory%20Matters) Loma Negra operates under extensive environmental, health, and safety regulations at national and provincial levels, requiring permits and compliance certificates - The company operates under extensive environmental, health, and safety regulations at national and provincial levels, requiring permits and environmental compliance certificates[486](index=486&type=chunk)[487](index=487&type=chunk) - Loma Negra implements Annual Environmental Monitoring Plans (PAM-A) and engages authorized laboratories to ensure compliance with emissions and air quality regulations[488](index=488&type=chunk) - Mining activities are governed by the Argentine Mining Code, requiring environmental impact evaluation reports and declarations, which must be renewed every two years[489](index=489&type=chunk)[490](index=490&type=chunk)[491](index=491&type=chunk) - No significant monetary or non-monetary fines or sanctions for non-compliance with environmental laws or regulations were recorded in 2023 and 2024[487](index=487&type=chunk) [C. Organizational Structure](index=68&type=section&id=C.%20Organizational%20Structure) The organizational structure of Loma Negra includes its direct and indirect equity ownership interests in key subsidiaries - Loma Negra has an indirect ownership in Ferrosur Roca S.A. through Cofesur SAU, in which it holds a direct **100% equity ownership interest**. Cofesur SAU has an **80% direct equity ownership interest** in Ferrosur Roca S.A[494](index=494&type=chunk) [D. Property, Plants and Equipment](index=68&type=section&id=D.%20Property%2C%20Plants%20and%20Equipment) Loma Negra owns seven cement manufacturing plants, fourteen concrete plants (Lomax brand), and one granitic aggregates plant in Argentina - As of December 31, 2024, Loma Negra owned seven cement manufacturing plants, fourteen concrete plants operating under the Lomax brand, and one granitic aggregates plant in Argentina[494](index=494&type=chunk) - The L'Amalí plant, expanded in December 2021, is now the largest cement plant in Argentina and one of the largest in Latin America, with an annual installed production capacity of approximately **4.0 million tons of clinker** and **5.6 million tons of cement**[500](index=500&type=chunk)[502](index=502&type=chunk)[519](index=519&type=chunk) - LomaSer, located near Buenos Aires, serves as a blending, distribution, and logistics center, connected to other production facilities via the Ferrosur Roca freight railway[504](index=504&type=chunk)[505](index=505&type=chunk) - The company's most recent material investment is related to the legal requirement of adjusting cement bags to the **25 kilograms** format, effective July 1, 2025[287](index=287&type=chunk)[520](index=520&type=chunk) [Our Production Facilities](index=68&type=section&id=Our%20Production%20Facilities) Loma Negra's production facilities are strategically located across Argentina, including cement plants in Barker, Catamarca, L'Amalí/LomaSer, Olavarría, Ramallo, San Juan, and Zapala Production Facilities as of December 31, 2024 | Production Facility | Type of Plant | Location | | :------------------ | :------------ | :--------- | | Barker | Cement | Benito Juárez | | Catamarca | Cement | El Alto | | L'Amalí | Cement | Olavarría | | LomaSer | Blending/Distribution | Cañuelas | | Olavarría | Cement | Olavarría | | Ramallo | Grinding Mill | Ramallo | | San Juan | Cement | San Juan | | Zapala | Cement | Zapala | | La Preferida | Aggregates | Olavarría | - The L'Amalí plant has two kilns with a daily capacity of approximately **12,000 tons of clinker** and cement production, storage, and bulk loading capabilities, including a vertical mill producing **500 tons per hour**[502](index=502&type=chunk) - LomaSer, a blending, distribution, and logistics center, operates approximately **40% of the company's total cement dispatches** and is strategically located near the City of Buenos Aires[504](index=504&type=chunk)[509](index=509&type=chunk) - The Barker and San Juan plants were reconverted into grinding and distribution centers in 2019, adapting their cost structures to this new operational scenario[498](index=498&type=chunk)[514](index=514&type=chunk) [Investments](index=73&type=section&id=Investments) Following the completion of the L'Amalí plant's second line in December 2021, which significantly increased cement production capacity, the company's capital expenditures have decreased - The completion of the L'Amalí plant's second line in December 2021 significantly reduced capital expenditures needs[519](index=519&type=chunk) - The company's only other material investment plan is related to the legal requirement of adjusting cement bags to the **25 kilograms** format[520](index=520&type=chunk) [ITEM 4A. UNRESOLVED STAFF COMMENTS](index=64&type=section&id=ITEM%204A.%20UNRESOLVED%20STAFF%20COMMENTS) This section states that there are no unresolved staff comments applicable to the company - The section is marked as 'Not applicable'[520](index=520&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=64&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section provides a detailed analysis of Loma Negra's operating results, financial condition, and future prospects, highlighting the impact of macroeconomic conditions in Argentina [A. Operating Results](index=64&type=section&id=A.%20Operating%20Results) Loma Negra's operating results are heavily influenced by Argentina's macroeconomic conditions, including GDP growth, high inflation, and peso depreciation - The company's business is highly sensitive to macroeconomic factors such as GDP growth, with Argentina's economy decreasing by **1.7% in 2024** and **1.6% in 2023**[522](index=522&type=chunk)[523](index=523&type=chunk) Argentine Macroeconomic Data (2022-2024) | Indicator | 2024 | 2023 | 2022 | | :-------------------------------- | :----- | :----- | :----- | | Real GDP growth | (1.7)% | (1.6)% | 5.2% | | Average Ps./U.S. dollar exchange rate | 916.3 | 295.2 | 130.8 | | CPI inflation | 117.8% | 211.4% | 94.8% | | Private sector salary growth | 147.5% | 165.8% | 93.8% | - The company's financial statements are prepared in accordance with IFRS Accounting Standards and comprehensively recognize the effects of hyperinflation using IAS 29, with inflation rates of **117.8% in 2024**, **211.4% in 2023**, and **94.8% in 2022**[528](index=528&type=chunk)[529](index=529&type=chunk)[531](index=531&type=chunk) Cost of Sales Components (Percentage of Total Cost of Sales) | Component | 2024 (%) | 2023 (%) | 2022 (%) | | :-------------------------------- | :------- | :------- | :------- | | Salaries, wages and social security charges | 17.0 | 15.3 | 14.9 | | Thermal energy | 12.8 | 16.0 | 15.9 | | Depreciation | 12.4 | 10.1 | 12.3 | | Preservation and maintenance costs | 11.4 | 9.1 | 8.5 | | Freight | 9.4 | 10.5 | 10.7 | | Contractors | 9.3 | 7.9 | 6.9 | | Electrical power | 7.7 | 7.7 | 8.7 | | Raw materials (from other section) | 19.0 | 18.0 | 15.0 | [Principal Factors Affecting Our Results of Operations](index=64&type=section&id=Principal%20Factors%20Affecting%20Our%20Results%20of%20Operations) Loma Negra's operating results are significantly shaped by Argentina's volatile macroeconomic environment, including GDP fluctuations, high inflation, and peso depreciation - Argentina's GDP decreased by **1.7% in 2024** and **1.6% in 2023**, impacting cement demand due to the strong correlation between GDP growth and the construction industry[522](index=522&type=chunk)[523](index=523&type=chunk) - The peso depreciated by approximately **27.7% against the U.S. dollar in 2024**, following a **356.44% depreciation in 2023**, affecting foreign currency-denominated liabilities[538](index=538&type=chunk) - Thermal energy and electricity costs represented **21% of total cost of sales in 2024**, with the company mitigating risks through fuel diversification (including co-processing at **4.3% of thermal energy**) and renewable energy contracts (**58% of electrical power from renewable sources in 2024**)[545](index=545&type=chunk)[547](index=547&type=chunk)[549](index=549&type=chunk)[554](index=554&type=chunk) - Raw materials accounted for **19% of total cost of sales in 2024**, with the company primarily sourcing limestone from its own quarries to maintain cost competitiveness[559](index=559&type=chunk) [Financial Presentation and Accounting Practices](index=78&type=section&id=Financial%20Presentation%20and%20Accounting%20Practices) Loma Negra prepares its consolidated financial statements in accordance with IFRS Accounting Standards, with all figures restated in constant pesos due to Argentina's hyperinflationary economy (IAS 29) - Consolidated financial statements are prepared in accordance with IFRS Accounting Standards and are restated in constant pesos due to Argentina being a hyperinflationary economy, as per IAS 29[567](index=567&type=chunk)[568](index=568&type=chunk)[1138](index=1138&type=chunk)[1139](index=1139&type=chunk)[1142](index=1142&type=chunk) - Revenue from sales of goods is recognized when control is transferred to the customer, and for services, when rendered, with no significant financing components due to short credit terms (**20-35 days**)[590](index=590&type=chunk)[593](index=593&type=chunk)[1199](index=1199&type=chunk)[1202](index=1202&type=chunk) - The company applies the deferred tax method for income tax, considering temporary differences and tax loss carryforwards, with corporate tax rates ranging from **25% to 35%** and a **7% withholding tax on dividends**[608](index=608&type=chunk)[610](index=610&type=chunk)[1224](index=1224&type=chunk)[1225](index=1225&type=chunk)[1227](index=1227&type=chunk) - Critical accounting judgments and estimates are made for property, plant and equipment impairment, provisions for lawsuits and other contingencies, and environmental restoration obligations, which are subject to future events and market conditions[574](index=574&type=chunk)[575](index=575&type=chunk)[1331](index=1331&type=chunk)[1336](index=1336&type=chunk)[1338](index=1338&type=chunk)[1344](index=1344&type=chunk) [Components of Certain Statement of Profit or Loss and Other Comprehensive Income Line Items](index=93&type=section&id=Components%20of%20Certain%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20Line%20Items) This section details the components of Loma Negra's revenues, cost of sales, selling and administrative expenses, financial results, and income tax expense - Revenues are primarily derived from the sale of cement products, concrete, aggregates, and railway services, almost entirely denominated in pesos[697](index=697&type=chunk) Cost of Sales Components (2022-2024) | Component | 2024 (%) | 2023 (%) | 2022 (%) | | :-------------------------------- | :------- | :------- | :------- | | Salaries, wages and social security charges | 17.0 | 15.3 | 14.9 | | Thermal energy | 12.8 | 16.0 | 15.9 | | Depreciation | 12.4 | 10.1 | 12.3 | | Preservation and maintenance costs | 11.4 | 9.1 | 8.5 | | Freight | 9.4 | 10.5 | 10.7 | | Contractors | 9.3 | 7.9 | 6.9 | | Electrical power | 7.7 | 7.7 | 8.7 | | Packaging | 3.5 | 3.3 | 3.5 | | Taxes, contributions and commissions | 1.9 | 1.7 | 1.8 | | Transport and travelling expenses | 1.2 | 0.9 | 0.7 | | Fees and compensation for services | 1.0 | 1.5 | 1.9 | | Employee benefits | 0.7 | 0.5 | 0.4 | | Security | 0.7 | 0.5 | 0.5 | | Insurance | 0.4 | 0.4 | 0.3 | | Leases | 0.2 | 0.2 | 0.2 | | Communications | 0.1 | 0.1 | 0.1 | | Canon (concession fee) | 0.1 | 0.1 | 0.1 | | Data processing | 0.1 | 0.1 | 0.1 | | Water, natural gas and energy services | 0.0 | 0.0 | 0.0 | | Tolls | 0.0 | 0.0 | 0.0 | | Others | 1.7 | 1.2 | 1.4 | | **Production expenses** | **91.7** | **87.0** | **88.8** | | **Cost of sales** | **100.0** | **100.0** | **100.0** | Selling and Administrative Expenses Components (2022-2024) | Component | 2024 (%) | 2023 (%) | 2022 (%) | | :-------------------------------- | :------- | :------- | :------- | | Salaries, wages and social security charges | 26.2 | 25.0 | 25.1 | | Taxes, contributions and commissions | 20.5 | 21.5 | 24.3 | | Freight | 12.3 | 12.1 | 14.7 | | Fees and compensation for services | 8.3 | 8.6 | 6.6 | | Managers, directors and trustees' fees | 6.6 | 7.3 | 7.7 | | Depreciation and amortization | 5.5 | 5.2 | 6.5 | | Advertising expenses | 5.4 | 5.5 | 4.6 | | Data processing | 5.0 | 3.6 | 2.5 | | Insurance | 3.8 | 4.5 | 2.5 | | Others | 1.8 | 2.2 | 1.7 | | Transport and travelling expenses | 1.6 | 1.4 | 1.3 | | Employee benefits | 1.4 | 1.4 | 0.8 | | Leases | 0.7 | 0.4 | 0.3 | | Communications | 0.4 | 0.5 | 0.8 | | Preservation and maintenance costs | 0.3 | 0.3 | 0.2 | | Allowance for doubtful accounts | 0.1 | 0.3 | 0.2 | | Water, natural gas and energy services | 0.1 | 0.0 | 0.0 | | Security | 0.0 | 0.2 | 0.2 | | **Total selling and administrative expenses** | **100.0** | **100.0** | **100.0** | [Results of Operations](index=95&type=section&id=Results%20of%20Operations) In 2024, Loma Negra's net profit surged by **628.8% to Ps. 153,627 million**, with net margin expanding to **22.0%**, primarily due to lower costs and improved financial results Consolidated Statement of Profit or Loss and Other Comprehensive Income (2023-2024) | Metric | 2024 (Ps. millions) | 2023 (Ps. millions) | Variation (Amount) | Variation (%) | | :-------------------------------- | :------------------ | :------------------ | :----------------- | :------------ | | Revenue | 699,178.7 | 919,312.7 | (220,134.0) | (23.9) | | Cost of sales | (512,197.7) | (688,685.3) | 176,487.6 | (25.6) | | Gross profit | 186,981.0 | 230,627.4 | (43,646.4) | (18.9) | | Selling and administrative expenses | (73,175.4) | (84,199.9) | 11,024.5 | (13.1) | | Other gains and losses | 4,555.2 | 1,999.2 | 2,556.0 | 127.9 | | Tax on debits and credits to bank accounts | (7,420.4) | (10,183.8) | 2,763.4 | (27.1) | | Finance costs, net | 138,611.3 | (100,312.4) | 238,923.7 | 238.2 | | Profit before taxes | 249,551.8 | 37,930.5 | 211,621.3 | 557.9 | | Income tax expense | (95,925.3) | (16,849.9) | (79,075.4) | 469.0 | | **Net profit** | **153,626.5** | **21,080.6** | **132,545.9** | **628.8** | Consolidated Statement of Profit or Loss and Other Comprehensive Income (2022-2023) | Metric | 2023 (Ps. millions) | 2022 (Ps. millions) | Variation (Amount) | Variation (%) | | :-------------------------------- | :------------------ | :------------------ | :----------------- | :------------ | | Revenue | 919,312.7 | 984,191.5 | (64,878.8) | (6.6) | | Cost of sales | (688,685.3) | (718,413.3) | 29,728.0 | (4.1) | | Gross profit | 230,627.4 | 265,778.2 | (35,150.8) | (13.2) | | Selling and administrative expenses | (84,199.9) | (84,838.3) | 638.4 | (0.8) | | Other gains and losses | 1,999.2 | 22,957.7 | (20,958.5) | (91.3) | | Tax on debits and credits to bank accounts | (10,183.8) | (9,868.5) | (315.3) | 3.2 | | Finance costs, net | (100,312.4) | (119,414.1) | 19,101.7 | (16.0) | | Profit before taxes | 37,930.5 | 74,615.0 | (36,684.5) | (49.2) | | Income tax expense | (16,850.0) | (62,361.9) | 45,511.9 | (73.0) | | **Net profit** | **21,080.6** | **12,253.1** | **8,827.5** | **72.0** | [B. Liquidity and Capital Resources](index=102&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Loma Negra's liquidity and capital resources are managed through cash flow generation, debt management, and capital expenditures - The company believes its cash and cash equivalents, cash from operations, and available borrowings will be adequate to meet capital expenditure and liquidity needs for at least the next **12 months**[748](index=748&type=chunk) Cash Flows from Activities (2022-2024) | Activity | 2024 (Ps. millions) | 2023 (Ps. millions) | 2022 (Ps. millions) | | :-------------------------------- | :------------------ | :------------------ | :------------------ | | Net cash generated by operating activities | 124,718.1 | 185,164.9 | 212,676.1 | | Net cash used in investing activities | (72,893.9) | (78,014.6) | (31,987.1) | | Net cash used in financing activities | (48,265.9) | (89,469.4) | (168,053.4) | | Cash and cash equivalents at end of year | 8,553.4 | 14,664.6 | 33,302.5 | Total Outstanding Borrowings (2023-2024) | Category | 2024 (Ps. millions) | 2023 (Ps. millions) | | :-------------------------- | :------------------ | :------------------ | | Total outstanding borrowings | 170,901 | 320,919 | | Short-term borrowings | 100,680 | 81,062 | | Long-term borrowings | 70,221 | 239,857 | | Foreign currency-denominated | 156,366 | 242,499 | | Peso-denominated | 14,536 | 78,419 | Selected Financial Ratios (2022-2024) | Ratio | 2024 | 2023 | 2022 | | :-------------------------------- | :--- | :--- | :--- | | Liquidity (Current assets / Current liabilities) | 1.02 | 1.09 | 0.97 | | Solvency (Shareholder's equity / Total liabilities) | 1.29 | 0.85 | 1.33 | | Non-current assets to total assets ratio | 0.81 | 0.80 | 0.80 | | Profitability (Net profit / Average shareholder's equity) | 0.21 | 0.03 | 0.01 | [Cash Flows](index=103&type=section&id=Cash%20Flows) In 2024, net cash generated by operating activities was **Ps. 124,718 million**, primarily from profit before tax, partially offset by increases in inventories and trade receivables - Net cash generated by operating activities was **Ps. 124,718 million in 2024**, down from **Ps. 185,165 million in 2023**, mainly due to changes in inventories and trade accounts receivable[751](index=751&type=chunk)[752](index=752&type=chunk) - Net cash used in investing activities was **Ps. 72,894 million in 2024**, primarily for the acquisition of property, plant, and equipment (**Ps. 73,048 million**)[752](index=752&type=chunk) - Net cash used in financing activities was **Ps. 48,266 million in 2024**, mainly due to interest paid (**Ps. 61,591 million**), partially offset by net proceeds from borrowings (**Ps. 15,656 million**)[753](index=753&type=chunk) [Indebtedness and Financing Strategy](index=104&type=section&id=Indebtedness%20and%20Financing%20Strategy) As of December 31, 2024, Loma Negra's total outstanding consolidated borrowings were **Ps. 170,901 million**, with **59% short-term** and **91% denominated in U.S. dollars** - Total outstanding consolidated borrowings as of December 31, 2024, were **Ps. 170,901 million**, comprising **59% short-term** and **41% long-term debt**[762](index=762&type=chunk) - Approximately **91% of consolidated borrowings** were denominated in U.S. dollars, with **9% in pesos**. **9% of loans** accrued interest at a variable rate, and **91% at a fixed rate**[763](index=763&type=chunk) - The average maturity of the company's indebtedness was **0.9 years** as of December 31, 2024[765](index=765&type=chunk) - Debt contracts do not include restrictive clauses requiring the maintenance of specific financial ratios or non-financial commitments[766](index=766&type=chunk) [Contractual Commitments](index=106&type=section&id=Contractual%20Commitments) As of December 31, 2024, Loma Negra had total contractual obligations of **Ps. 335,948.46 million**, with the majority (**Ps. 261,410.09 million**) due within one year Contractual Obligations as of December 31, 2024 (in millions of Ps.) | Category | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :-------------------------- | :-------- | :--------------- | :-------- | :-------- | :---------------- | | Financial borrowings | 170,901.20 | 100,680.04 | 70,221.17 | - | - | | Accounts payable | 93,590.80 | 93,590.80 | - | - | - | | Taxes payable | 46,844.68 | 46,844.68 | - | - | - | | Salaries and social security contributions | 19,418.66 | 17,909.95 | 1,508.71 | - | - | | Lease liabilities | 3,186.64 | 1,388.36 | 1,782.34 | 15.95 | - | | Severance payment plans | 639.22 | 479.26 | 155.16 | 4.32 | 0.48 | | Other debts | 1,367.25 | 517.01 | - | - | 850.24 | | **Total** | **335,948.46** | **261,410.09** | **73,667.38** | **20.27** | **850.72** | [Selected Ratios](index=107&type=section&id=Selected%20Ratios) Loma Negra's liquidity ratio was **1.02 in 2024**, indicating sufficient current assets to cover current liabilities Selected Financial Ratios (2022-2024) | Ratio | 2024 | 2023 | 2022 | | :-------------------------------- | :--- | :--- | :--- | | Liquidity (Current assets / Current liabilities) | 1.02 | 1.09 | 0.97 | | Solvency (Shareholder's equity / Total liabilities) | 1.29 | 0.85 | 1.33 | | Non-current assets to total assets ratio | 0.81 | 0.80 | 0.80 | | Profitability (Net profit / Average shareholder's equity) | 0.21 | 0.03 | 0.01 | [Supply Contracts](index=107&type=section&id=Supply%20Contracts) Loma Negra maintains long-term supply agreements for key inputs, including a **15-year contract** for ground granulated blast-furnace slag and **20-year contracts** for wind-sourced electric power - The company has a **15-year agreement** with Siderar S.A.I.C. for the supply of ground granulated blast-furnace slag, entered into in 2007[772](index=772&type=chunk) - Long-term contracts with Genneia S.A. (2016) and Aluar Aluminio Argentino S.A.I.C. (2018) for wind-sourced electric power ensure compliance with renewable energy obligations, with the company exceeding requirements by sourcing approximately **58% of its energy from renewable sources**[774](index=774&type=chunk) [C. Research and Development, Patents and Licenses, etc.](index=107&type=section&id=C.%20Research%20and%20Development%2C%20Patents%20and%20Licenses%2C%20etc.) Loma Negra holds **120 registered trademarks** in Argentina, with one renewal pending, and additional registrations in Bolivia, Brazil, Chile, Paraguay, and Uruguay - Loma Negra holds **120 registered trademarks** in Argentina, with one renewal pending, and has also registered trademarks in Bolivia, Brazil, Chile, Paraguay, and Uruguay[775](index=775&type=chunk)[776](index=776&type=chunk) - The company does not own any registered patents, industrial models, or designs, and has no pending litigation related to trademark matters[775](index=775&type=chunk)[776](index=776&type=chunk) [Intellectual Property](index=107&type=section&id=Intellectual%20Property) Loma Negra manages its intellectual property through **120 registered trademarks** in Argentina and other South American countries, with no registered patents - Loma Negra holds **120 registered trademarks**, with one renewal pending, and has registered trademarks in Bolivia, Brazil, Chile, Paraguay, and Uruguay[775](index=775&type=chunk)[776](index=776&type=chunk) - The company does not own any registered patents, industrial models, or designs[775](index=775&type=chunk) - Loma Negra is involved in two administrative opposition proceedings against third-party trademarks and owns **13 internet domains**[777](index=777&type=chunk) [D. Trend Information](index=107&type=section&id=D.%20Trend%20Information) Argentina's economy faced significant challenges in 2023, including a severe drought and a federal budget deficit, with CPI inflation reaching **211.4%** - Argentina's CPI inflation was **211.4% in 2023** and **117.8% in 2024**, while the peso depreciated by **356.44% in 2023** and **27.7% in 2024**[781](index=781&type=chunk) - In 2024, Argentina's GDP contracted by **2.8%**, and cement dispatches decreased by **24% year-on-year to 9.56 million tons**, the lowest annual level since 2009[783](index=783&type=chunk)[1487](index=1487&type=chunk) - Forecasts for the Argentine economy estimate an approximate GDP growth of **4.5% year-on-year for 2025**, contingent on the consolidation of the economic model and its ability to generate confidence[1487](index=1487&type=chunk) - The BCRA's U.S. dollar reserves were low at **US$25.45 billion** on April 1, 2025, but a new **US$12 billion** disbursement on April 15, 2025, increased international reserves to **US$36,799 million**[782](index=782&type=chunk)[1001](index=1001&type=chunk) [E. Critical Accounting Estimates](index=108&type=section&id=E.%20Critical%20Accounting%20Estimates) This section states that there are no critical accounting estimates applicable to the company - The section is marked as 'Not applicable'[785](index=785&type=chunk) [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=108&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details Loma Negra's corporate governance structure, including its Board of Directors and Executive Officers, their compensation, and various incentive programs [A. Directors and Senior Management](index=108&type=section&id=A.%20Directors%20and%20Senior%20Management) Loma Negra's Board of Directors, elected annually, consists of a minimum of three and up to fourteen members, responsible for policies and supervision - The Board of Directors consists of a minimum of three and up to fourteen members, elected annually, and is responsible for determining policies and supervising executive officers[787](index=787&type=chunk)[788](index=788&type=chunk) Board of Directors Members as of December 31, 2024 | Name | Age | Position | Independent | | :------------------------ | :-- | :--------- | :---------- | | Paulo Diniz | 67 | President | No | | Sergio Damián Faifman | 50 | Vice-President | No | | Sergio Daniel Alonso | 62 | Director | Yes | | Cesar Javier Graña | 54 | Director | Yes | | Javier Enrique Patron | 62 | Director | No | | Laura Gé | 57 | Director | Yes | | Humberto Junqueira de Farias | 56 | Director | No | Executive Officers as of April 2025 | Name | Year of Birth | Position | | :-------------------- | :------------ | :------------------------------------ | | Sergio Damián Faifman | 1974 | Chief Executive Officer | | Marcos Isabelino Gradin | 1972 | Chief Financial Officer | | Gerardo Oscar Diez | 1967 | Commercial and Concrete Director | | Hector Fabian Gerez | 1968 | Ferrosur Roca S.A. General Director | | Lucrecia Loureiro | 1981 | Human Resources, Sustainability and Legal Director | | Lucas Amchite | 1975 | Industrial Director | [B. Compensation](index=112&type=section&id=B.%20Compensation) Executive officers receive cash compensation (base salary and bonus) and participate in welfare benefit programs, with aggregate cash compensation of **Ps. 3,608 million in 2024** - Aggregate cash compensation for senior management was **Ps. 3,608 million in 2024** and **Ps. 4,728 million in 2023**, with an additional **Ps. 768 million** and **Ps. 1,518 million** accrued for long-term incentive programs, respectively[807](index=807&type=chunk) - The company adopted a Clawback Policy effective November 8, 2023, to recover erroneously awarded incentive-based compensation from executive officers following accounting restatements[816](index=816&type=chunk) - The Phantom Stock Plan was terminated in February 2021, but existing grants remain in force. New Stock Compensation Plans, established in 2021, involve granting ordinary shares/ADSs or their cash equivalent (option added in November 2024) based on permanence or Total Shareholder Return (TSR)[818](index=818&type=chunk)[827](index=827&type=chunk)[828](index=828&type=chunk)[831](index=831&type=chunk)[1310](index=1310&type=chunk) - In January 2025, the cash equivalent to **27,336 ADRs** was paid to employees under the Stock Compensation Plan, and in March 2025, a cash payment equivalent to **22,952 ADRs** was made under the TSR Stock Compensation Plan[833](index=833&type=chunk)[837](index=837&type=chunk) [C. Board Practices](index=115&type=section&id=C.%20Board%20Practices) Directors are obligated to perform duties with loyalty and diligence, being jointly and severally liable for improper performance or violations - Directors are jointly and severally liable for improper performance of duties, violations of law or bylaws, and damages caused by fraud, abuse of authority, or gross negligence[839](index=839&type=chunk)[840](index=840&type=chunk) - The Supervisory Committee, consisting of three members, supervises management's compliance with Argentine law and bylaws, and reviews financial statements[848](index=848&type=chunk) - The Audit Committee, composed of three independent directors, oversees financial statements, internal controls, risk management, ethics, and external/internal audits[850](index=850&type=chunk)[851](index=851&type=chunk) - Other key committees include the Disclosure Policy Committee, Securities Operations Approval Committee, Ethics and Compliance Committee, People and Governance Committee, Results, Finance and Strategy Committee, and Risk and Reputation Committee, each with specific oversight responsibilities[852](index=852&type=chunk)[853](index=853&type=chunk)[855](index=855&type=chunk)[856](index=856&type=chunk)[858](index=858&type=chunk)[859](index=859&type=chunk) [D. Employees](index=119&type=section&id=D.%20Employees) As of December 31, 2024, Loma Negra had a total of **2,821 employees** across its business segments - As of December 31, 2024, Loma Negra had a total of **2,821 employees**[860](index=860&type=chunk) Employees by Business Segment as of December 31 | Business Segment | 2024 | 2023 | 2022 | | :--------------- | :--- | :--- | :--- | | Cement | 1,424 | 1,415 | 1,421 | | Concrete | 263 | 285 | 278 | | Aggregates | 71 | 74 | 63 | | Railroad | 1,028 | 1,077 | 1,090 | | Others | 35 | 34 | 34 | | **Total** | **2,821** | **2,885** | **2,886** | - The company has collective bargaining agreements with unions in the cement (AOMA), railway transportation (APDFA, La Fraternidad, Unión Ferroviaria), chemical (FESTIQyPRA), and construction (UOCRA) industries[860](index=860&type=chunk) - Loma Negra has not experienced any significant labor conflicts or lost working days due to union actions in 2024[860](index=860&type=chunk) [E. Share Ownership](index=119&type=section&id=E.%20Share%20Ownership) None of Loma Negra's directors or executive officers beneficially own one percent or more of the company's ordinary shares as of the date of this annual report - None of the company's directors or executive officers beneficially own one percent or more of its ordinary shares as of the date of this annual report[862](index=862&type=chunk) [F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation](index=119&type=section&id=F.%20Disclosure%20of%20a%20Registrant%27s%20Action%20to%20Recover%20Erroneously%20Awarded%20Compensation) This section states that there is no disclosure of a registrant's action to recover erroneously awarded compensation applicable to the company - The section is marked as 'Not Applicable'[863](index=863&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=119&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section identifies Loma Negra's major shareholders and details transactions with related parties [A. Major Shareholders](index=119&type=section&id=A.%20Major%20Shareholders) As of March 31, 2025, IC Trading Inversiones Argentina, S.L. is Loma Negra's major shareholder, beneficially owning **52.1% of outstanding ordinary shares** Beneficial Ownership of Ordinary Shares as of March 31, 2025 | Name of Beneficial Owner | Shares Beneficially Owned | Percentage of Capital Stock | | :----------------------- | :------------------------ | :-------------------------- | | IC Trading Inversiones Argentina, S.L. | 304,233,740 | 52.1% | | ANSES | 31,076,151 | 5.3% | | Directors and Executive Officers as a Group | * | * | - IC Trading Inversiones Argentina, S.L. is the controlling shareholder, owning **52.14% of the company's share capital** as of the date of this annual report[873](index=873&type=chunk) - The controlling shareholder, Intercement Participações S.A., filed for judicial reorganization on December 3, 2024, which could result in a change of control for Loma Negra[875](index=875&type=chunk) [Significant Changes in Percentage Ownership](index=120&type=section&id=Significant%20Changes%20in%20Percentage%20Ownership) There have been internal restructurings within Loma Negra's controlling shareholder group, including the transfer of ownership from Caue Austria Holding GmbH to Intercement Trading e Inversiones, S.A. - On January 21, 2020, Caue Austria Holding GmbH transferred its **304,233,740 ordinary shares** to Intercement Trading e Inversiones, S.A., which then transferred them to its subsidiary, Intercement Trading e Inversiones Argentina, S.L. on January 6, 2021[869](index=869&type=chunk)[872](index=872&type=chunk) - On June 4, 2020, Intercement Trading e Inversiones S.A. pledged **52.14% of Loma Negra's capital stock** as collateral for debenture obligations of its indirect shareholder, Intercement Participações S.A., and its subsidiary, Intercement Brasil S.A[870](index=870&type=chunk) - The controlling shareholder, Intercement Participações S.A., filed for judicial reorganization on December 3, 2024, after extrajudicial restructuring efforts failed, which may result in a change of control for Loma Negra[875](index=875&type=chunk) [B. Related Party Transactions](index=121&type=section&id=B.%20Related%20Party%20Transactions) Loma Negra engages in arm's length transactions with its shareholders and controlled companies, primarily for cost-sharing related to administrative functions and service provisions - The company enters into arm's length transactions with shareholders and controlled companies for cost-sharing and administrative functions, ensuring compliance with conflict of interest laws[876](index=876&type=chunk)[877](index=877&type=chunk) Related Party Balances as of December 31 (Ps. thousands) | Related Party | 2024 (Ps. thousands) | 2023 (Ps. thousands) | | :-------------------------------- | :------------------- | :------------------- | | InterCement Brasil S.A. - Accounts payable | (171,275) | (307,294) | | InterCement Trading e Inversiones S.A. - Other receivables | 2,163,306 | 3,688,455 | | InterCement Trading e Inversiones S.A. - Accounts payable | (944,321) | (1,694,215) | | Intercement Participações S.A. - Other receivables | 2,600,140 | 4,283,857 | | Intercement Participações S.A. - Accounts payable | (2,269,292) | (4,644,204) | - A know-how offer letter from InterCement Participações S.A. for technical know-how (**1% of revenues**) ended in August 2023, and a service provision agreement from Loma Negra to InterCement Participacoes S.A. (cost plus **8% return**) expired in September 2023[879](index=879&type=chunk)[881](index=881&type=chunk) [Other Transactions](index=121&type=section&id=Other%20Transactions) Loma Negra had a know-how transfer agreement with InterCement Participações S.A. (**1% of revenues**) that ended in August 2023, and a service provision agreement to InterCement Group that expired in September 2023 - A know-how offer letter from InterCement Participações S.A. for technical know-how (**1% of revenues**) was accepted by Loma Negra in August 2020 and ended in August 2023[879](index=879&type=chunk) - Loma Negra provided services to InterCement Participacoes S.A. or other InterCement Group companies, with fees representing net costs plus an **8% arm's length return**, under an agreement that expired in September 2023[881](index=881&type=chunk) [C. Interests of Experts and Counsel](index=122&type=section&id=C.%20Interests%20of%20Experts%20and%20Counsel) This section states that there are no interests of experts and counsel applicable to the company - The section is marked as 'Not applicable'[882](index=882&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=122&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section provides an overview of Loma Negra's consolidated financial statements, including details on legal proceedings and the company's dividend policy [A. Consolidated Statements and Other Financial Information](index=122&type=section&id=A.%20Consolidated%20Statements%20and%20Other%20Financial%20Information) Loma Negra's consolidated financial statements are included in this annual report, summarizing ongoing litigations and the framework governing dividend declarations and payments - The company's audited consolidated financial statements for the years ended December 31, 2024, 2023, and 2022 are included in this annual report[883](index=883&type=chunk) [Legal Proceedings](index=122&type=section&id=Legal%20Proceedings) Loma Negra is party to **378 legal and administrative proceedings**, with a total amount in controversy of **Ps. 15,185 million** as of December 31, 2024, for which a provision of **Ps. 3,796 million** has been established - As of December 31, 2024, Loma Negra was party to **378 legal and administrative proceedings**, with a total amount in controversy of approximately **Ps. 15,185 million**[884](index=884&type=chunk)[885](index=885&type=chunk) Summary of Legal and Administrative Proceedings as of December 31, 2024 | Type of Proceedings | Number of proceedings | Total Claims (in millions of Ps.) | Total Provision

Group 1 - The company is a leader in the Argentine cement industry, attributed to its dominant market position and vertical integration of products and services [1] - The long-term attractiveness of the company is emphasized, indicating solid potential for growth [1]