4Q17 Results Conference Call Disclaimer and Forward Looking - - PowerPoint PPT Presentation

SLIDE 1

4Q17 Results Conference Call

SLIDE 2

Disclaimer and Forward Looking Statement

This presentation may contain forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are

• nly predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations,

liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward- looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. Note: The Company presented some figures converted from Argentine pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters.

SLIDE 3

4Q17 Highlights: Loma Negra Reports Solid Set of Results

Solid market dynamics, with volumes and prices picking up, on positive Argentina market environment Strong & profitable growth

AR$ US$ Revenues +57% +38%

• Adj. EBITDA

+57% +38% Net Income a/ Owners +221% +182%

Robust operating cash flow, further supported by net IPO proceeds of US$ 106 million (AR$1,867 million) to support capacity expansion strategy

SLIDE 4

Market leader in Argentina uniquely positioned to capture increasing cement demand…

#1 cement player in Argentina and #2 in Paraguay, with 45% and 44% market shares, respectively(1) Operating in a 4-player landscape in Argentina, a fast growing market with low cement per capita consumption and high-growth potential

Strong brand recognition through superior quality and nationwide presence (90-yr track record)

Strategically located and vertically-integrated cement, concrete and aggregate facilities

Limestone reserves support operations for +100 years(2) Manages railway concession to support network

(1) Argentina and Paraguay market shares according to AFCP and management estimates, respectively, in 2017. (2) According to 2016 production levels and Company reserves estimates

Revenue Breakdown Adjusted EBITDA Breakdown Fiscal Year 2017

73% 7% 12% 6% 1% 1% 80% 12% 1% 6% 0% 1%

SLIDE 5

… driven by economic rebound and immediate reaction in construction activity

36% 37% 37% 36% 40% 64% 63% 63% 64% 60% 2013 2014 2015 2016 2017 Bulk Bags

(1) Source INDEC and Market Expectations Survey as of January 2018 (2) Source INDEC (3) Based on AFCP

2,30

• 2,60

2,40

• 2,20

3,00 3,00 0,40 2,90 4,20 2013 2014 2015 2016 2017e 2018e 1Q17 2Q17 3Q17

• 7,8
• 2,4
• 3,4

10,8 10,5 10,3 17,0 20,3 13,0 13,4 25,4 21,6 14,5 GDP Growth1 (%) Construction Activity2 (YoY Growth, %) 0,7 1,8

• 0,4

16,0 11,6 9,8 17,1 19,8 7,5 13,0 23,5 16,5 6,8 Monthly Cement Sales3 (YoY Growth, %) Annual Cement Sales by Type3 (%)

SLIDE 6

Accelerated volume and sales growth…

Sales Volumes (Cement, Masonry & Lime)

In million of tons

Argentine operations volume growth accelerated to 14% YoY with revenues up 47% in 4Q17 Starting, 2017 Loma Negra began to fully consolidate Yguazu Cementos’ (Paraguay) adding 0,13 millions of tons sold in 4Q17

1,54 1,76 5,89 6,42 0,57

4Q16 4Q17 FY16 FY17

Argentina Paraguay 1.89 6.99

Net Revenue

AR$ million

2.834 4.169 9.874 14.134 1.153 4.452 15.287

4Q16 4Q17 FY16 FY17

Argentina Paraguay Total +47% +43% 183 254 668 923 US$ million +9% +14%

SLIDE 7

… across all products and markets

Robust concrete volumes, up 54% YoY in 4Q17 driven by strong pick-up in public infrastructure in our markets - City of Buenos Aires and Greater Buenos Aires, and Rosario in the province of Santa Fe Railroad volume up 6% YoY driven by solid demand in transportation services Aggregates volume increased +7% YoY due to capacity constraints despite strong demand

Sales Volumes (Cement, Masonry & Lime)

4Q17 4Q16 % Chg. 2017 2016 % Chg. Cement, masonry & lime Argentina MM Tn 1.76 1.54 14% 6.42 5.89 9% Paraguay MM Tn 0.13

• n/a

0.57

• n/a

Cement, masonry & lime total 1.89 1.54 22% 6.99 5.89 19% Argentina: Concrete MM m3 0.24 0.16 54% 0.82 0.60 37% Railroad MM Tn 1.29 1.22 6% 4.98 4.64 7% Aggregates MM Tn 0.28 0.26 7% 1.07 0.97 10%

SLIDE 8

Costs and expenses declining on a relative basis, benefiting from operational leverage

Gross Profit & Margin

AR$ Million

Argentine operations posted a 47% increase in gross profit with gross margin stable at 29.1% SG&A as a % of sales in Argentina declined YoY by 270bps to 8.0% Selling, General & Administrative

AR$ Million

303 335 929 1.156 12 43 347 1.199

4Q16 4Q17 FY16 FY17

Argentina Paraguay Total

As a % of Sales

7.8% 9.4% 7.8% 10.7% 826 1.212 2.610 4.087 83 349 1.295 4.436

4Q16 4Q17 FY16 FY17

Argentina Paraguay Total

Gross Margin

29.1% 26.4% 29.0% 29.1% +57% +47% +24% +11%

SLIDE 9

4Q17 Adjusted EBITDA up 57% & Net Income more than tripled driven by robust revenues and operating leverage

Adjusted EBITDA & Margin

AR$ Million

Excluding one-time gains of AR$ 84 million from Ferrosur Roca’s canon (concession fee) recovery in 4Q16 and AR$ 69 million related to the International Offering in 4Q17, Adjusted EBITDA would have increased 66%, with Adj. EBITDA Margin expanding 136 bps to 25.4% Argentine operation posted comparable YoY increases of 47% in Adjusted EBITDA

Net Profit attributable to Owners

AR$ Million

207 665 491 1.591

'- 3,3 6,7 10,0 13,4 16,7 20,0 23,4 26,7 30,1 33,4 36,8 40,1 43,4 46,8 50,1 53,5 56,8 60,1 63,5 66,8 70,2 73,5 76,8 80,2 83,5 86,9 90,2 93,6 96,9 100,2 103,6 106,9 110,3 113,6 116,9 120,3 123,6 127,0 130,3 133,6 137,0 140,3 143,7 147,0 150,3 153,7 157,0 160,4 163,7 167,1 170,4 173,7 177,1 180,4 183,8 187,1 190,4 193,8 197,1 200,5 203,8 207,1 210,5 213,8 217,2 220,5 223,9 227,2 230,5 233,9 237,2 240,6 243,9 247,2 250,6 253,9 257,3 260,6 263,9 267,3 270,6 274,0 277,3 280,7 284,0 287,3 290,7 294,0 297,4 300,7 304,0 307,4 310,7 314,1 317,4 320,7 324,1 327,4 330,8 334,1 337,5 340,8 344,1 347,5 350,8 354,2 357,5 360,8 364,2 367,5 370,9 374,2 377,5 380,9 384,2 387,6 390,9 394,2 397,6 400,9 404,3 407,6 411,0 414,3 417,6 421,0 424,3 427,7 431,0 434,3 437,7 441,0 444,4 447,7 451,0 454,4 457,7 461,1 464,4 467,8 471,1 474,4 477,8 481,1 484,5 487,8 491,1 494,5 497,8 501,2 504,5 507,8 511,2 514,5 517,9 521,2 524,6 527,9 531,2 534,6 537,9 541,3 544,6 547,9 551,3 554,6 558,0 561,3 564,6 568,0 571,3 574,7 578,0 581,4 584,7 588,0 591,4 594,7 598,1 601,4 604,7 608,1 611,4 614,8 618,1 621,4 624,8 628,1 631,5 634,8 638,2 641,5 644,8 648,2 651,5 654,9 658,2 661,5 664,9 668,2 671,6 674,9 678,2 681,6 684,9 688,3 691,6 694,9 698,3 701,6 705,0 708,3 711,7 715,0 718,3 721,7 725,0 728,4 731,7 735,0 738,4 741,7 745,1 748,4 751,7 755,1 758,4 761,8 765,1 768,5 771,8 775,1 778,5 781,8 785,2 788,5 791,8 795,2 798,5 801,9 805,2 808,5 811,9 815,2 818,6 821,9 825,3 828,6 831,9 835,3 838,6 842,0 845,3 848,6 852,0 855,3 858,7 862,0 865,3 868,7 872,0 875,4 878,7 882,1 885,4 888,7 892,1 895,4 898,8 902,1 905,4 908,8 912,1 915,5 918,8 922,1 925,5 928,8 932,2 935,5 938,8 942,2 945,5 948,9 952,2 955,6 958,9 962,2 965,6 968,9 972,3 975,6 978,9 982,3 985,6 989,0 992,3 995,6 999,0 1.002,3 1.005,7 1.009,0 1.012,4 1.015,7 1.019,0 1.022,4 1.025,7 1.029,1 1.032,4 1.035,7 1.039,1 1.042,4 1.045,8 1.049,1 1.052,4 1.055,8 1.059,1 1.062,5 1.065,8 1.069,2 1.072,5 1.075,8 1.079,2 1.082,5 1.085,9 1.089,2 1.092,5 1.095,9 1.099,2 1.102,6 1.105,9 1.109,2 1.112,6 1.115,9 1.119,3 1.122,6 1.126,0 1.129,3 1.132,6 1.136,0 1.139,3 1.142,7 1.146,0 1.149,3 1.152,7 1.156,0 1.159,4 1.162,7 1.166,0 1.169,4 1.172,7 1.176,1 1.179,4 1.182,7 1.186,1 1.189,4 1.192,8 1.196,1 1.199,5 1.202,8 1.206,1 1.209,5 1.212,8 1.216,2 1.219,5 1.222,8 1.226,2 1.229,5 1.232,9 1.236,2 1.239,5 1.242,9 1.246,2 1.249,6 1.252,9 1.256,3 1.259,6 1.262,9 1.266,3 1.269,6 1.273,0 1.276,3 1.279,6 1.283,0 1.286,3 1.289,7 1.293,0 1.296,3 1.299,7 1.303,0 1.306,4 1.309,7 1.313,1 1.316,4 1.319,7 1.323,1 1.326,4 1.329,8 1.333,1 1.336,4 1.339,8 1.343,1 1.346,5 1.349,8 1.353,1 1.356,5 1.359,8 1.363,2 1.366,5 1.369,9 1.373,2 1.376,5 1.379,9 1.383,2 1.386,6 1.389,9 1.393,2 1.396,6 1.399,9 1.403,3 1.406,6 1.409,9 1.413,3 1.416,6 1.420,0 1.423,3 1.426,6 1.430,0 1.433,3 1.436,7 1.440,0 1.443,4 1.446,7 1.450,0 1.453,4 1.456,7 1.460,1 1.463,4 1.466,7 1.470,1 1.473,4 1.476,8 1.480,1 1.483,4 1.486,8 1.490,1 1.493,5 1.496,8 1.500,2 1.503,5 1.506,8 1.510,2 1.513,5 1.516,9 1.520,2 1.523,5 1.526,9 1.530,2 1.533,6 1.536,9 1.540,2 1.543,6 1.546,9 1.550,3 1.553,6 1.557,0 1.560,3 1.563,6 1.567,0 1.570,3 1.573,7 1.577,0 1.580,3 1.583,7 1.587,0 1.590,4 1.593,7 1.597,0 1.600,4 1.603,7 1.607,1 1.610,4 1.613,8 1.617,1 1.620,4 1.623,8 1.627,1 1.630,5 1.633,8 1.637,1 1.640,5 1.643,8 1.647,2 1.650,5 1.653,8 1.657,2 1.660,5 1.663,9 1.667,2 1.670,6

4Q16 4Q17 FY16 FY17

Net Profit attrib. to Owners 765 1.078 2.350 3.465 120 477 1.199 3.942

'- 8,3 16,6 24,8 33,1 41,4 49,7 57,9 66,2 74,5 82,8 91,1 99,3 107,6 115,9 124,2 132,5 140,7 149,0 157,3 165,6 173,8 182,1 190,4 198,7 207,0 215,2 223,5 231,8 240,1 248,3 256,6 264,9 273,2 281,5 289,7 298,0 306,3 314,6 322,8 331,1 339,4 347,7 356,0 364,2 372,5 380,8 389,1 397,4 405,6 413,9 422,2 430,5 438,7 447,0 455,3 463,6 471,9 480,1 488,4 496,7 505,0 513,2 521,5 529,8 538,1 546,4 554,6 562,9 571,2 579,5 587,8 596,0 604,3 612,6 620,9 629,1 637,4 645,7 654,0 662,3 670,5 678,8 687,1 695,4 703,6 711,9 720,2 728,5 736,8 745,0 753,3 761,6 769,9 778,2 786,4 794,7 803,0 811,3 819,5 827,8 836,1 844,4 852,7 860,9 869,2 877,5 885,8 894,0 902,3 910,6 918,9 927,2 935,4 943,7 952,0 960,3 968,5 976,8 985,1 993,4 1.001,7 1.009,9 1.018,2 1.026,5 1.034,8 1.043,1 1.051,3 1.059,6 1.067,9 1.076,2 1.084,4 1.092,7 1.101,0 1.109,3 1.117,6 1.125,8 1.134,1 1.142,4 1.150,7 1.158,9 1.167,2 1.175,5 1.183,8 1.192,1 1.200,3 1.208,6 1.216,9 1.225,2 1.233,5 1.241,7 1.250,0 1.258,3 1.266,6 1.274,8 1.283,1 1.291,4 1.299,7 1.308,0 1.316,2 1.324,5 1.332,8 1.341,1 1.349,3 1.357,6 1.365,9 1.374,2 1.382,5 1.390,7 1.399,0 1.407,3 1.415,6 1.423,9 1.432,1 1.440,4 1.448,7 1.457,0 1.465,2 1.473,5 1.481,8 1.490,1 1.498,4 1.506,6 1.514,9 1.523,2 1.531,5 1.539,7 1.548,0 1.556,3 1.564,6 1.572,9 1.581,1 1.589,4 1.597,7 1.606,0 1.614,2 1.622,5 1.630,8 1.639,1 1.647,4 1.655,6 1.663,9 1.672,2 1.680,5 1.688,8 1.697,0 1.705,3 1.713,6 1.721,9 1.730,1 1.738,4 1.746,7 1.755,0 1.763,3 1.771,5 1.779,8 1.788,1 1.796,4 1.804,6 1.812,9 1.821,2 1.829,5 1.837,8 1.846,0 1.854,3 1.862,6 1.870,9 1.879,2 1.887,4 1.895,7 1.904,0 1.912,3 1.920,5 1.928,8 1.937,1 1.945,4 1.953,7 1.961,9 1.970,2 1.978,5 1.986,8 1.995,0 2.003,3 2.011,6 2.019,9 2.028,2 2.036,4 2.044,7 2.053,0 2.061,3 2.069,6 2.077,8 2.086,1 2.094,4 2.102,7 2.110,9 2.119,2 2.127,5 2.135,8 2.144,1 2.152,3 2.160,6 2.168,9 2.177,2 2.185,4 2.193,7 2.202,0 2.210,3 2.218,6 2.226,8 2.235,1 2.243,4 2.251,7 2.259,9 2.268,2 2.276,5 2.284,8 2.293,1 2.301,3 2.309,6 2.317,9 2.326,2 2.334,5 2.342,7 2.351,0 2.359,3 2.367,6 2.375,8 2.384,1 2.392,4 2.400,7 2.409,0 2.417,2 2.425,5 2.433,8 2.442,1 2.450,3 2.458,6 2.466,9 2.475,2 2.483,5 2.491,7 2.500,0 2.508,3 2.516,6 2.524,9 2.533,1 2.541,4 2.549,7 2.558,0 2.566,2 2.574,5 2.582,8 2.591,1 2.599,4 2.607,6 2.615,9 2.624,2 2.632,5 2.640,7 2.649,0 2.657,3 2.665,6 2.673,9 2.682,1 2.690,4 2.698,7 2.707,0 2.715,2 2.723,5 2.731,8 2.740,1 2.748,4 2.756,6 2.764,9 2.773,2 2.781,5 2.789,8 2.798,0 2.806,3 2.814,6 2.822,9 2.831,1 2.839,4 2.847,7 2.856,0 2.864,3 2.872,5 2.880,8 2.889,1 2.897,4 2.905,6 2.913,9 2.922,2 2.930,5 2.938,8 2.947,0 2.955,3 2.963,6 2.971,9 2.980,2 2.988,4 2.996,7 3.005,0 3.013,3 3.021,5 3.029,8 3.038,1 3.046,4 3.054,7 3.062,9 3.071,2 3.079,5 3.087,8 3.096,0 3.104,3 3.112,6 3.120,9 3.129,2 3.137,4 3.145,7 3.154,0 3.162,3 3.170,6 3.178,8 3.187,1 3.195,4 3.203,7 3.211,9 3.220,2 3.228,5 3.236,8 3.245,1 3.253,3 3.261,6 3.269,9 3.278,2 3.286,4 3.294,7 3.303,0 3.311,3 3.319,6 3.327,8 3.336,1 3.344,4 3.352,7 3.360,9 3.369,2 3.377,5 3.385,8 3.394,1 3.402,3 3.410,6 3.418,9 3.427,2 3.435,5 3.443,7 3.452,0 3.460,3 3.468,6 3.476,8 3.485,1 3.493,4 3.501,7 3.510,0 3.518,2 3.526,5 3.534,8 3.543,1 3.551,3 3.559,6 3.567,9 3.576,2 3.584,5 3.592,7 3.601,0 3.609,3 3.617,6 3.625,9 3.634,1 3.642,4 3.650,7 3.659,0 3.667,2 3.675,5 3.683,8 3.692,1 3.700,4 3.708,6 3.716,9 3.725,2 3.733,5 3.741,7 3.750,0 3.758,3 3.766,6 3.774,9 3.783,1 3.791,4 3.799,7 3.808,0 3.816,3 3.824,5 3.832,8 3.841,1 3.849,4 3.857,6 3.865,9 3.874,2 3.882,5 3.890,8 3.899,0 3.907,3 3.915,6 3.923,9 3.932,1 3.940,4 3.948,7 3.957,0 3.965,3 3.973,5 3.981,8 3.990,1 3.998,4 4.006,6 4.014,9 4.023,2 4.031,5 4.039,8 4.048,0 4.056,3 4.064,6 4.072,9 4.081,2 4.089,4 4.097,7 4.106,0 4.114,3 4.122,5 4.130,8 4.139,1

4Q16 4Q17 FY16 FY17

Argentina Paraguay Total 13 38 33 96 US$ million 49 68 159 238 US$ million 26.9% 23.8% 25.8% 27.0%

Adjusted EBITDA Margin Comparable Adj EBITDA Mg. up 136 bps, to 25.4% in 4Q17 from 24.0% in 4Q16

+47% +41%

SLIDE 10

Healthy balance sheet with adequate FX and currency exposure; strong cashflow generation

US$ 43% PYG 34% AR$ 23% Other Floating 6% BADLAR 10% Libor 41% Fixed rate 43%

Debt by Currency Debt by Interest Rate Cash position of AR$ 3.2 billion in Dec’17, from AR$0.8 billion in Dec’16 Total debt stable YoY at AR$ 4.4 billion in Dec’17 Net Debt down by AR$ 2.4 billion to AR$ 1.2 billion (US$ 62 million) at Dec’17 Net Debt/Adj. EBITDA ratio down to 0.3x in FY17 from 1.5x in FY16 Reinvestment of 2017 earnings Almost doubled operating cash flow, further supported by IPO proceeds

FY 2017 FY 2016 Net cash generated by operating activities 3,220 1,613 Net cash generated by investing activities (1,258) (463) Net cash (used in) generated by financing activities 298 (697) Dividends paid (443) (853) Capital increase 1,867 Cash and cash equivalents at the end of the period 3,180 803

SLIDE 11

Advancing with L’Amalí expansion to maximize attractive growth opportunity in Argentina and further improve margins

Expanding plant capacity by 2.7 million tn/year in a region that accounts for ~42% of Argentina’s cement consumption Production inputs in-place with capacity to sustain new demand, i.e. electric power and natural gas Cost efficiency gains and proximity to limestone reserves US$350 million capex (US$130/ton), US$ 3 million in FY17 Schedule: July ’17: EPC contract with Sinoma (China) 4Q17 completed Phase 1, involving basic engineering of new plant and study of soil Relevant permits obtained during the quarter Currently in Phase 2, including equipment provision and plant construction, anticipated to take 26 months Start-up planned for early 2020

SLIDE 12

Looking ahead

Fundamentally healthy market dynamics in Argentina and Paraguay Expect solid cement demand driven by public infrastructure works and private construction, adjusting down from current high recovery levels Leveraging leading market position with strategically located facilities and nationwide distribution coverage to capture growth in demand Focused on advancing expansion of the L’Amalí plant to maximize growth opportunity Maintain strong cash flow generation and solid balance sheet

SLIDE 13

Questions & Answers

SLIDE 14

Exhibit: Summary Financial Statements

SLIDE 15

Income Statement

15

(amounts expressed in millions of pesos, unless otherwise noted) 2017 2016 % Change 2017 2016 % Change Net revenue 4.452 2.834 57,1% 15.287 9.874 54,8% Cost of sales (3.157) (2.008) 57,2% (10.850) (7.265) 49,4% Gross Profit 1.295 826 56,8% 4.436 2.610 70,0% Share of profit (loss) of associates

• (8,6)
• 100,0%
• 37
• 100,0%

Selling and administrative expenses (347) (303) 14,6% (1.199) (929) 29,0% Other gains and losses 82 109

• 25,0%

79 124

• 36,5%

Tax on debits and credits to bank accounts (59) (34) 73,3% (188) (140) 34,3% Finance costs, net Exchange rate differences (98) (60) 63,1% (313) (261) 19,9% Financial income 65 15 334,2% 104 41 152,3% Financial expenses (134) (186)

• 28,2%

(633) (721)

• 12,3%

Profit before tax 805 359 124,4% 2.286 760 200,9% Income tax expense Current (194) (126) 54,1% (651) (239) 172,8% Deferred 82 (8)

• 1163,0%

66 (19)

• 444,5%

Net profit 692 225 207,7% 1.700 502 238,7% Net Profit attributable to owners of the Co 665 207 221,2% 1.591 491 223,9% Three-months ended December 31, Year ended December 31,

SLIDE 16

Balance Sheet

16

2017 2016

ASSETS Non-Current assets

Property, plant and equipment

5.979 4.881

Intangible assets

75 57

Investments Goodwill

39 39

Inventories

215 176

Other receivables

145 229

Trade accounts receivable

• 78

Total non-current assets

6.454 5.461

Current assets

Inventories

1.834 1.717

Other receivables

242 226

Trade accounts receivable

1.263 629

Investments

2.991 694

Cash and banks

189 234

Total current assets

6.519 3.501

TOTAL ASSETS

12.972 8.962

As of December 31, SHAREHOLDERS' EQUITY

Capital stock and other capital related accounts

1.922 87

Reserves

59 44

Retained earnings

1.591 460

Accumulated other comprehensive income

250 149

Equity attributable to the owners of the Company

3.823 740

Non-controlling interests

593 390

TOTAL SHAREHOLDERS' EQUITY

4.416 1.131

LIABILITIES

Non-current liabilities Borrowings

2.604 1.277

Accounts payable

71 82

Provisions

161 121

Tax liabilities

1

Other liabilities

16 28

Deferred tax liabilities

229 293

Total non-current liabilities

3.082 1.802

Current liabilities Borrowings

1.760 3.062

Accounts payable

2.362 2.226

Advances from customers

206 107

Salaries and social security payables

542 380

Tax liabilities

573 225

Other liabilities

32 29

Total current liabilities

5.474 6.030

TOTAL LIABILITIES

8.556 7.832

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

12.972 8.962

2017 2016 As of December 31,

SLIDE 17

Statement of Cash Flows

17

(amounts expressed in millions of pesos, unless otherwise noted) 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net profit for the year 1.700 502 Adjustments to reconcile net profit to net cash provided by operating activities 2.053 1.489 Changes in operating assets and liabilities: (533) (379) Net cash generated by operating activities 3.220 1.613 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment, Intangible Assets, net (1.261) (647) Others 2 184 Net cash used in investing activities (1.258) (463) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from / Repayments off borrowings, Interest paid (1.126) 156 Dividends paid (443) (853) Proceeds from initial public offering, net of issuance costs 1.867 Net cash generated by (used in) financing activities 298 (697) Net decrease in cash and cash equivalents 2.260 453 Cash and cash equivalents at the beginning of the year 803 328 Effects of the exchange rate differences on cash and cash equivalents in foreign currency 116 22 Cash and cash equivalents at the end of the year 3.180 803 Year ended December 31,

SLIDE 18

Adjusted EBITDA Reconciliation & Margin

18

(amounts expressed in millions of pesos, unless otherwise noted)

2017 2016 % Chg. 2017 2016 % Chg. Adjusted EBITDA reconciliation: Net profit 692 225 207,7% 1.700 502 238,7% (+) Financial interest, net 63 116

• 46,2%

441 572

• 22,9%

(+) Income tax expense 112 134

• 16,0%

586 258 127,2% (+) Depreciation and amortization 168 140 19,9% 626 509 22,9% (+) Exchange rate differences 98 60 63,1% 313 261 19,9% (+) Other financial expenses, net 6 55

• 88,6%

88 108

• 18,4%

(+) Tax on debits and credits to bank accounts 59 34 73,3% 188 140 34,3% Adjusted EBITDA 1.199 765 56,8% 3.942 2.350 67,7% Adjusted EBITDA Margin 26,9% 27,0%

• 6 bps

25,8% 23,8% +199 bps Three-months ended December 31, Year ended December 31,

SLIDE 19

IR Contact

Marcos I. Gradin Chief Financial Officer and IRO +54-11-4319-3050 investorrelations@lomanegra.com