Cementos Pacasmayo SAA Q4 FY2024 earnings call

• Digital Transformation: Made strides in digitalization, aligning tech with strategy to enhance efficiency and innovation. Developed operational digitalization initiatives, user center service model, AI-driven solutions, and data management/automation. Obtained ISO 27001 certification, the first Peruvian cement company to do so. - Building Solutions: Designed innovative river bank protection solution; participated in the Piura airport project, actively involved in every step. Viewed value-added building solutions as a strategic pillar. - Sustainability: First Peruvian cement company to get environmental product declaration (EPD) for three plants; included in sustainability yearbook for fifth year, ranked in top 10 responsible companies. - Manuel Ferreyros Retirement: Announced retirement as CFO effective March 31, 2025, with Eli Hayashi succeeding, maintaining his legacy.

Cement: This quarter, sales increased 1.8% year-over-year, with gross profit up 1.9% and gross margin flat. For the whole year 2024, sales decreased 2.2% year-over-year, but gross profit increased 7.6% and gross margin rose 4.1 percentage points due to cost optimization. Concrete payments and mortar sales: This quarter, increased 30.9%, and for the whole year 2024, increased 48.8% year-over-year. Gross margin decreased during the quarter and full year due to increased costs from the Piura airport project. Precast material sales: Fourth quarter 2024 was mostly in line with the fourth quarter of 2023. In 2024, sales increased 18% year-over-year, with gross margin up 10.7 percentage points due to higher sales volume diluting fixed costs.

• Sales volumes expected to show positive trend in 2025, similar to the last quarter of 2024. - Sustaining CapEx remains at around PEN100 million, with no additional CapEx expected in 2025 or 2026. - Confident in maintaining high EBITDA margins in 2025, with potential improvement if volumes exceed expectations.

• Cyber security challenges during digital transformation; need to strengthen operational technology protection. - Potential impact of security issues on construction activity, though Humberto Nadal doesn't see security worsening. - Cost overruns in the Piura airport project already accounted for in 2024 results.

Q: About sales volumes in 2025, CapEx, and higher costs A: Volumes expected to show positive trend in 2025, similar to last quarter of 2024. Sustaining CapEx remains at PEN100 million, with no additional CapEx expected. Higher costs due to increased personnel and profit shares, but EBITDA margin is sustainable Q: Energy cost per ton in 2024 and 2025 A: Energy cost down in 2024, expected to be flat in 2025. Fuels are local coal for kilns and electricity for mills, with a long-term contract for electricity Q: Outlook on cement volumes and EBITDA margins in 2025 A: Volumes expected to follow positive trend seen in last quarter of 2024. Confident in maintaining high EBITDA margins, with potential improvement if volumes exceed expectations Q: Vulnerability of cement volume recovery in 2025 and Piura airport cost overruns A: Upcoming elections not seen as a vulnerability; security issues not expected to worsen. Piura airport cost overruns already accounted for in 2024 results, with no future impact on gross margins