Loma Negra CompañÃa Industrial Argentina Sociedad Anónima (NYSE:LOMA) Q1 2021 Earnings Conference Call May 13, 2021 10:00 AM ET  Company Participants Gastón Pinnel – Head of Investor Relations Sergio Faifman – Chief Executive Officer and Vice President of the Board of Directors Marcos Gradin – Chief Financial Officer Conference Call Participants Nikolaj Lippmann – Morgan Stanley Alberto Valerio – UBS Operator Good morning, and welcome to Loma NegraÂ's First Quarter 2021 Conference Call and Webcast. All par ...

PART I [Key Information](index=12&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section presents selected financial data for 2018-2020, highlighting a 2020 revenue decrease but net profit increase, and details significant risks from Argentina's volatile macroeconomic environment. Selected Financial Data - The company's financial statements from 2018 to 2020 have been restated into constant currency to reflect the effects of hyperinflation in Argentina, in accordance with IAS 29[37](index=37&type=chunk) Consolidated Statement of Profit or Loss (in millions of Ps.) | Indicator | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Revenues** | 41,623.3 | 47,753.1 | 51,238.2 | | **Gross profit** | 12,596.9 | 13,046.9 | 12,844.7 | | **Net profit from continuing operations** | 6,253.5 | 4,485.0 | 3,341.4 | | **Net profit from discontinued operations** | 5,128.6 | 1,020.3 | 743.7 | | **Net profit** | 11,382.1 | 5,505.3 | 4,085.1 | | **Earnings per share (continuing & discontinued)** | 19.0445 | 8.7692 | 6.3243 | Consolidated Statement of Financial Position (in millions of Ps.) | Indicator | As of Dec 31, 2020 | As of Dec 31, 2019 | | :--- | :--- | :--- | | **Total assets** | 70,945.9 | 75,725.6 | | **Total liabilities** | 25,555.3 | 35,798.9 | | **Total shareholders' equity** | 45,390.6 | 39,926.7 | Risk Factors - The company's operations are heavily exposed to Argentina's macroeconomic conditions, including high inflation, currency devaluation, and political instability, which could adversely affect results[44](index=44&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk) - Argentina's high inflation rates (**36.1% in 2020, 53.8% in 2019**) increase operating costs, particularly labor, and reduce consumer purchasing power, potentially impacting demand and financial results[60](index=60&type=chunk)[61](index=61&type=chunk)[68](index=68&type=chunk) - Significant devaluation of the Argentine peso against the U.S. dollar (**40.5% in 2020, 59.0% in 2019**) negatively impacts the ability to service foreign currency-denominated debt and can fuel inflation[76](index=76&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - Government measures in response to the COVID-19 pandemic, such as mandatory quarantines and business restrictions, have negatively impacted production, supply chains, and demand for the company's products[171](index=171&type=chunk)[173](index=173&type=chunk)[183](index=183&type=chunk) - The cyclical nature of the cement industry, which is sensitive to construction activity levels, exposes the company to potential decreases in revenue and profit margins during economic downturns[195](index=195&type=chunk) - The company faces competition from other major cement producers in Argentina, such as Holcim and Avellaneda, who are also expanding their production capacity, which could intensify market competition[196](index=196&type=chunk)[197](index=197&type=chunk) - The company's railway concession (Ferrosur Roca), which expires in 2023, is subject to renegotiation and potential termination by the Argentine government, which could materially impact logistics and business operations[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) [Information on the Company](index=43&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) Loma Negra is Argentina's leading vertically-integrated cement company, holding a 43.8% market share in 2020, with nationwide operations and a major plant expansion nearing completion. History and Development of the Company - Founded in 1926, Loma Negra has grown through acquisitions and organic expansion, including the L'Amalí plant construction[330](index=330&type=chunk)[332](index=332&type=chunk)[334](index=334&type=chunk) - In 2005, the company became part of the InterCement Group and completed its IPO on the NYSE and MERVAL in October 2017[335](index=335&type=chunk)[338](index=338&type=chunk) - A major expansion of the L'Amalí plant, initiated in 2017 with an investment of approximately **US$350 million**, is underway to add **2.7 million tons** of annual capacity[339](index=339&type=chunk) - On August 21, 2020, the company sold its entire **51% stake** in Yguazú Cementos (Paraguay) for **US$107 million**, using proceeds to repay debt and distribute an extraordinary dividend[341](index=341&type=chunk) Business Overview - Loma Negra is the leading cement producer in Argentina with a **43.8% market share** in terms of sales volume for the year ended December 31, 2020[344](index=344&type=chunk) Installed Production Capacity (as of Dec 31, 2020) | Product | Annual Installed Capacity | | :--- | :--- | | Cement | 8.4 million tons | | Clinker | 5.2 million tons | | Concrete | 0.9 million m³ | | Aggregates | 2.2 million tons | | Lime | 0.5 million tons | - The company estimates its limestone reserves are sufficient for approximately **158 years** of operation based on 2020 production levels[345](index=345&type=chunk)[390](index=390&type=chunk) - Energy is a significant cost component, representing **26% of the total cost of sales in 2020**, with the company utilizing a mix of thermal and electrical power, including increasing renewable sources[404](index=404&type=chunk) - In 2020, **71% of total cement sales** were made to wholesale distributors, **20% to concrete producers**, and the remainder to industrial customers and construction companies[424](index=424&type=chunk) - The company is the only cement producer in Argentina with nationwide coverage, with its main competitors being Holcim Argentina, Cementos Avellaneda, and PCR, who have strong regional market positions[458](index=458&type=chunk)[461](index=461&type=chunk) Property, Plants and Equipment - As of December 31, 2020, the company owned **eight cement manufacturing plants**, **eleven concrete plants**, and **one granitic aggregates plant** in Argentina[477](index=477&type=chunk) - The L'Amalí plant expansion project is expected to increase annual cement production capacity by **2.7 million tons** with a total capital expenditure of approximately **US$350 million**[504](index=504&type=chunk) - As of December 31, 2020, the L'Amalí expansion project was **96% complete**, with approximately **Ps. 22,490 million** invested, and clinker production expected by May 2021 with full commissioning in the second half of the year[504](index=504&type=chunk)[510](index=510&type=chunk) [Operating and Financial Review and Prospects](index=69&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section details the company's financial performance, heavily influenced by Argentina's macroeconomic conditions, showing a 2020 revenue decrease but a significant net profit increase driven by asset sales. Operating Results Year-over-Year Performance Comparison (in millions of Ps.) | Indicator | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | 41,623.3 | 47,753.1 | -12.8% | | **Gross Profit** | 12,596.9 | 13,046.9 | -3.4% | | **Net Profit from Continuing Operations** | 6,253.5 | 4,485.0 | +39.4% | | **Net Profit** | 11,382.1 | 5,505.3 | +106.8% | - Revenues in 2020 decreased by **12.8% to Ps. 41.6 billion**, primarily due to sales volume declines across all segments, with the concrete segment most affected (**-62.5% volume**) by the COVID-19 lockdown[708](index=708&type=chunk)[711](index=711&type=chunk) - Cost of sales decreased **16.4% in 2020**, more than the revenue decline, driven by lower volumes, reduced energy costs, and tighter cost controls in response to the pandemic[712](index=712&type=chunk) - Net financial results improved from a loss of **Ps. 2.1 billion in 2019** to a gain of **Ps. 1.1 billion in 2020**, mainly due to positive exchange rate differences and lower financial expenses[720](index=720&type=chunk) - Net profit from discontinued operations was **Ps. 5.1 billion in 2020**, reflecting the gain from the sale of the company's stake in Yguazú Cementos S.A[706](index=706&type=chunk)[707](index=707&type=chunk) Liquidity and Capital Resources Consolidated Cash Flows (in millions of Ps.) | Cash Flow Source | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Continuing Operating Activities** | 11,387.6 | 9,326.2 | 7,007.3 | | **Continuing Investing Activities** | (1,429.5) | (15,972.9) | (8,679.0) | | **Continuing Financing Activities** | (10,503.3) | 3,498.0 | (4,284.1) | - Net cash from continuing operating activities increased to **Ps. 11.4 billion in 2020** from **Ps. 9.3 billion in 2019**[758](index=758&type=chunk)[759](index=759&type=chunk) - Net cash used in continuing investing activities decreased significantly to **Ps. 1.4 billion in 2020** from **Ps. 16.0 billion in 2019**, mainly due to proceeds from the sale of Yguazú Cementos offsetting capital expenditures for the L'Amalí expansion[761](index=761&type=chunk) - As of December 31, 2020, total outstanding borrowings were **Ps. 6.4 billion**, a significant reduction from **Ps. 12.5 billion** at year-end 2019, with **99.5%** denominated in foreign currency (USD and EUR)[773](index=773&type=chunk)[774](index=774&type=chunk) Contractual Obligations Contractual Obligations as of December 31, 2020 (in millions of Ps.) | Obligation | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial borrowings** | 6,756.6 | 4,780.0 | 1,976.6 | — | — | | **Accounts payable** | 5,513.1 | 5,395.4 | 117.7 | — | — | | **Taxes payable** | 2,884.1 | 2,884.1 | — | — | — | | **Lease liabilities** | 730.3 | 148.5 | 192.5 | 179.7 | 209.6 | | **Total** | **17,628.9** | **14,784.3** | **2,427.0** | **207.0** | **210.5** | [Directors, Senior Management and Employees](index=108&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's Board of Directors and executive management, outlining compensation, board committees including an independent Audit Committee, and employee numbers. Directors and Senior Management - The Board of Directors consists of **nine members**, led by President Flávio Mendes Aidar and Vice-President & CEO Sergio Damián Faifman, with **four independent directors**[799](index=799&type=chunk) Compensation - Aggregate cash compensation paid to senior management was **Ps. 214 million in 2020**, up from **Ps. 190 million in 2019**[822](index=822&type=chunk) - The company had a long-term incentive program based on phantom stock rights, which was terminated in February 2021 and replaced by two new stock-based compensation plans[831](index=831&type=chunk)[841](index=841&type=chunk) Board Practices - The company has an Audit Committee composed of **three independent members**, in compliance with CNV, SEC, and NYSE requirements[862](index=862&type=chunk) - In 2019, the Board established three new committees: Results, Finance and Strategy; People and Governance; and Risk and Reputation[870](index=870&type=chunk)[871](index=871&type=chunk)[872](index=872&type=chunk) Employees Employees by Business Segment | Business Segment | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Cement | 1,404 | 1,375 | 1,574 | | Concrete | 272 | 156 | 386 | | Aggregates | 44 | 61 | 73 | | Railroad | 1,151 | 1,221 | 1,232 | | Others | 29 | 31 | 32 | | **Total** | **2,900** | **2,844** | **3,297** | [Major Shareholders and Related Party Transactions](index=119&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) As of March 2021, Intercement Trading e Inversiones Argentina, S.L. was the controlling shareholder, and the company engages in ordinary course related party transactions. Major Shareholders Beneficial Ownership of Shares (as of March 19, 2021) | Name of Beneficial Owner | Percentage | | :--- | :--- | | Intercement Trading e Inversiones Argentina, S.L. | 51.04% | | The Capital Group Companies Inc. | 8.50% | | Redwood Capital Management, LLC. | 5.45% | Related Party Transactions - In August 2020, the company entered into a know-how transfer agreement with its indirect parent, Intercement Participações S.A., for a royalty fee of **1% of the company's revenues**[893](index=893&type=chunk) - The company has cost-plus service agreements with affiliates for consulting, training, and technical assistance related to the L'Amalí Line 2 expansion project[894](index=894&type=chunk) [Financial Information](index=122&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section covers legal proceedings, including antitrust investigations and a class action lawsuit, and outlines the company's dividend policy. Consolidated Statements and Other Financial Information - As of December 31, 2020, the company was party to **459 legal proceedings** with total claims of **Ps. 965.5 million**, for which it had provisioned **Ps. 197.3 million** for probable losses[899](index=899&type=chunk)[900](index=900&type=chunk) - The company is subject to several ongoing market investigations by Argentina's antitrust commission (CNDC) regarding competitive conditions in the cement market[904](index=904&type=chunk)[905](index=905&type=chunk)[907](index=907&type=chunk) - A putative class action lawsuit filed in New York State related to the 2017 IPO remains ongoing, while a similar federal class action was dismissed in the company's favor in 2020[909](index=909&type=chunk)[910](index=910&type=chunk)[914](index=914&type=chunk) - The company's dividend policy requires allocating **5% of annual net earnings** to a legal reserve until it reaches **20% of share capital**, with distributions subject to shareholder approval and financial condition[917](index=917&type=chunk)[919](index=919&type=chunk)[922](index=922&type=chunk) [Additional Information](index=129&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section details the company's corporate structure, Argentina's stringent exchange controls, and material Argentine and U.S. federal income tax considerations for shareholders. Exchange Controls - Argentina has reinstated rigid foreign exchange controls, requiring prior Central Bank authorization for many transactions, including portfolio investments, dividend payments, and foreign debt pre-payment[970](index=970&type=chunk)[971](index=971&type=chunk) - Proceeds from the export of goods and services are subject to mandatory repatriation into Argentina and conversion into Pesos within specified timeframes[971](index=971&type=chunk) - Access to the FX Market for payments requires an affidavit stating the entity has not sold foreign currency-settled securities within the preceding 90 days and will not do so in the following 90 days[973](index=973&type=chunk) Taxation - Dividends paid to non-residents from income generated after January 1, 2018, are subject to a **7% income tax withholding** in Argentina[985](index=985&type=chunk) - Capital gains from the sale of shares by non-residents are generally exempt from Argentine income tax if publicly offered and traded on authorized stock markets, which applies to the company's shares and ADSs[991](index=991&type=chunk)[992](index=992&type=chunk) - For U.S. Holders, dividends are generally treated as foreign-source income, and those paid on NYSE-listed ADSs may be considered "qualified dividends" subject to reduced tax rates, assuming the company is not a PFIC[1021](index=1021&type=chunk)[1022](index=1022&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=143&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks from interest rate and foreign currency fluctuations, with most borrowings at floating rates and significant foreign currency debt, leading to peso devaluation exposure. - The company is exposed to interest rate risk, with **82.3% of its Ps. 6.46 billion** in total borrowings at floating rates as of December 31, 2020[1041](index=1041&type=chunk) - Significant foreign currency risk exists as **99.5% of borrowings** were denominated in foreign currencies (**82% in USD, 18% in EUR**) as of year-end 2020[1045](index=1045&type=chunk) - A hypothetical **25% depreciation** of the peso against the U.S. dollar would have increased the company's foreign currency-denominated indebtedness by approximately **Ps. 1.7 billion** as of December 31, 2020[1046](index=1046&type=chunk) - The company reported a negative working capital balance of **Ps. 1.2 billion** as of December 31, 2020, which it considers manageable due to predictable cash flows from its principal activities[1048](index=1048&type=chunk) [Controls and Procedures](index=146&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020. - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[1065](index=1065&type=chunk) - Management assessed the company's internal control over financial reporting based on the COSO 2013 framework and concluded it was effective as of December 31, 2020[1069](index=1069&type=chunk) [Principal Accountant Fees and Services](index=148&type=section&id=ITEM%2016C.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) The company's independent registered public accounting firm, Ernst & Young Global, billed Ps. 87.2 million in 2020 and Ps. 66.3 million in 2019, primarily for audit services, with all fees pre-approved. Accountant Fees (in thousands of Ps.) | Fee Type | 2020 | 2019 | | :--- | :--- | :--- | | Audit fees | 83,683.3 | 65,376.9 | | Audit related fees | 2,855.0 | 360.0 | | Tax fees | 644.9 | 594.5 | | **Total** | **87,183.2** | **66,331.4** | [Purchases of Equity Securities by the Issuer and Affiliated Purchasers](index=148&type=section&id=ITEM%2016E.%20PURCHASES%20OF%20EQUITY%20SECURITIES%20BY%20THE%20ISSUER%20AND%20AFFILIATED%20PURCHASERS) On February 12, 2021, the Board approved a share repurchase plan for up to Ps. 750 million or 10% of capital stock, effective for 90 days, with no repurchases in 2020. - A share repurchase plan was approved on February 12, 2021, authorizing the company to buy back up to **Ps. 750 million** of its shares over a 90-day period[1078](index=1078&type=chunk)[1080](index=1080&type=chunk) [Corporate Governance](index=149&type=section&id=ITEM%2016G.%20CORPORATE%20GOVERNANCE) As a "foreign private issuer" and "controlled company," Loma Negra follows Argentine corporate governance practices, differing from some NYSE requirements, but maintains an Audit Committee compliant with independence rules. - The company leverages its status as a "foreign private issuer" and "controlled company" to follow home country (Argentine) corporate governance practices, which differ from NYSE standards for domestic US companies[1083](index=1083&type=chunk) - Key differences from NYSE rules include not requiring a majority-independent board and not mandating compensation or nominating committees composed entirely of independent directors[1085](index=1085&type=chunk)[1086](index=1086&type=chunk) PART III [Financial Statements](index=151&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the audited consolidated financial statements for 2018-2020, prepared under IFRS and restated for hyperinflation, reflecting the Yguazú Cementos sale and COVID-19 impact. - The financial statements were prepared in accordance with IFRS and restated into constant currency to reflect Argentina's hyperinflationary environment as required by IAS 29[1137](index=1137&type=chunk)[1138](index=1138&type=chunk) - The sale of the company's **51% interest** in Yguazú Cementos S.A. on August 21, 2020, is accounted for as a discontinued operation under IFRS 5, with its results presented separately[1140](index=1140&type=chunk)[1485](index=1485&type=chunk) - The COVID-19 pandemic and related government measures, such as mandatory isolation, led to temporary suspensions of production and construction projects, impacting the company's operations and financial performance in 2020[1497](index=1497&type=chunk)[1499](index=1499&type=chunk) - An impairment loss of **Ps. 947 million** was recognized in 2020 on property, plant, and equipment, primarily related to the rail services (**Ps. 784 million**) and aggregates (**Ps. 163 million**) cash-generating units due to decreased demand[1352](index=1352&type=chunk)[1356](index=1356&type=chunk)[1357](index=1357&type=chunk)

Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) Q4 2020 Earnings Conference Call March 11, 2021 10:00 AM ET Company Participants Gastón Pinnel - Head of Investor Relations Manager Sergio Faifman - Chief Executive Officer & Vice President of the Board of Directors Marcos Gradin - Chief Financial Officer Conference Call Participants Nikolaj Lippmann - Morgan Stanley Alberto Valerio - UBS Coleman Clyde - HSBC Operator Good morning, and welcome to Loma Negra Fourth Quarter 2020 Conference ...

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Loma Negra CompanÃa Industrial Argentina S.A (NYSE:LOMA) Q3 2020 Results Conference Call November 11, 2020 10:00 AM ET Company Participants Gastón Pinnel - Head of Investor Relations Manager Sergio Faifman - Vice President and Chief Executive Officer Marcos Gradin - Chief Financial Officer Conference Call Participants Alejandra Obregon Martinez - Morgan Stanley Coleman Clyde - HSBC Eric Neguelouart - BofA Merrill Lynch Operator Good morning, and welcome to the Loma Negra Third Quarter 2020 Earnings Conferen ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Table of Contents As filed with the Securities and Exchange Commission on April 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38262 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPOR ...