Loma Negra Compania Industrial Argentina SA (LOMA) 2024 Q2 法說會逐字稿

Good morning and welcome to the Loma Negra second-quarter 2024 conference call and webcast. (Operator instructions) Please note this event is being recorded. I will now turn the conference over to Mr. Diego Jalon, Head of Investor Relations. Please Diego go ahead.

早上好，歡迎來到 Loma Negra 2024 年第二季電話會議和網路廣播。（操作員說明）請注意此事件正在被記錄。我現在將會議交給投資者關係主管迭戈·賈隆 (Diego Jalon) 先生。請迭戈繼續。

Thank you. Good morning and welcome to Loma Negra's earnings conference calls. By now everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close.

謝謝。早上好，歡迎參加 Loma Negra 的財報電話會議。到目前為止，每個人都應該可以訪問我們的收益新聞稿和今天電話會議的演示文稿，這兩者都是在昨天收盤後發布的。

Joining me on the call this morning, will be Sergio Damian, our CEO and Vice President of the Board of Directors; and our CFO, Marcos Isabelino. Both of them will be available for the Q&A session.

今天早上與我一起參加電話會議的還有我們的執行長兼董事會副總裁 Sergio Damian；以及我們的財務長馬科斯‧伊莎貝拉 (Marcos Isabelino)。他們兩人都將參加問答環節。

Before we proceed, I would like to make the following Safe Harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

在我們繼續之前，我想發表以下安全港聲明。今天的電話會議將包含前瞻性聲明，我建議您參閱我們的收益報告和最近向美國證券交易委員會提交的文件中的前瞻性聲明部分。我們不承擔更新或修改任何前瞻性陳述以反映新的或變更的事件或情況的義務。

This conference call will also include discussion on non-GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release.

本次電話會議也將討論非公認會計準則財務指標。相應財務指標的全面調節已包含在收益新聞稿中。

Now I would like to turn the call over to Sergio.

現在我想把電話轉給塞爾吉奧。

Thank you, Diego. Hello, everyone, and thank you for joining us this morning. I would like to start my presentation by discussing the highlights of the quarter. Then Marcos, will take you through our market review and financial result. Following that, I will share some final remarks before opening the call to your questions.

謝謝你，迭戈。大家好，感謝您今天早上加入我們。我想透過討論本季的亮點來開始我的演講。然後，Marcos 將帶您了解我們的市場回顧和財務結果。接下來，在開始回答大家的問題之前，我將分享一些最後的評論。

Starting with slide 2, we are glad to report another set of solid results after starting the year in a very challenging scenario with significant year-over-year volume decline. Our business delivery in the second quarter and a segment EBITDA margin expansion driven by our constant focus on profitability and cost control initiatives. This demonstrate our strong capability for efficiency and flexibility in adapting the challenging scenarios. Fortunately, we are starting to see a gradual and consistent recovery in cement volumes.

從投影片 2 開始，我們很高興地報告另一組紮實的業績，因為今年伊始就面臨著非常具有挑戰性的情況，銷量同比大幅下降。在我們對獲利能力和成本控制計劃的持續關注的推動下，我們第二季度的業務交付和部門 EBITDA 利潤率的擴張。這證明了我們在適應挑戰性場景方面強大的效率和靈活性能力。幸運的是，我們開始看到水泥產量逐漸持續恢復。

But before diving into the detail of the industry, let's review the financial highlights of the quarter. As I mentioned before, in the second quarter, Loma has demonstrated resilience and its operational and competitive strengths. Our top line has stood up ARS166.1 billion, decreasing 28% in the quarter, with cement volume down 32.5%.

但在深入了解該行業的細節之前，讓我們先回顧一下本季的財務亮點。正如我之前提到的，在第二季度，Loma 展現了韌性及其營運和競爭優勢。我們的營收達到 1,661 億阿根廷比索，本季下降 28%，其中水泥銷量下降 32.5%。

The consolidated segment EBITDA reached $51 million or ARS38 billion in the second quarter, only down 11.7% despite the hard drop of volume, despite. This result was possible due to the good expansion of the EBITDA margin of the cement segment. The push consolidated EBITDA margin to 28.1%, expanding 520 basis points year-on-year. In the same sense, EBITDA per ton peaches, the trademark fuel of $45, up 23% on and 15% on a secondary basis.

儘管銷量大幅下降，但第二季合併業務 EBITDA 達到 5,100 萬美元，即 380 億澳元，僅下降 11.7%。此結果的實現得益於水泥業務 EBITDA 利潤率的良好擴張。這使得綜合 EBITDA 利潤率達到 28.1%，比去年同期擴大 520 個基點。同樣的道理，每噸桃子（商標燃料）的 EBITDA 為 45 美元，年增 23%，年增 15%。

On the financial side, our balance sheet remains strong with net debt of $270 million. On the upcoming quarter, with less the mining capital needs, we will use our cash generation to gradually reduce our short tons pesos [invents].

在財務方面，我們的資產負債表依然強勁，淨債務為 2.7 億美元。在接下來的季度，隨著採礦資本需求的減少，我們將利用我們的現金產生來逐步減少我們的短噸比索[發明]。

I will now hand off the call to Marcos Isabelino, who will take you through our market review and financial results. Please, Marcos, go ahead.

我現在將把電話轉交給馬科斯·伊莎貝拉諾，他將帶您了解我們的市場回顧和財務表現。馬科斯，請繼續。

Thank you, Sergio, and good morning, everyone. Please turn to slide 4. As shown in the chart on the lower left the Central Bank markets expectations reports suggest that the economy might have experienced its most significant quarterly downturn in the first quarter of this year. With almost domestic forecast for the second half when we examine the figures for our industry, the construction activity indicator, we will see a gradual improvement after hitting a low in March.

謝謝你，塞爾吉奧，大家早安。請翻到幻燈片 4。正如左下圖所示，央行市場預期報告表明，今年第一季經濟可能經歷了最嚴重的季度下滑。國內對下半年的預測大致一致，當我們檢視產業數據時，建築活動指標，在3月觸及低點後，將會逐步改善。

The monthly cement search chart for the industry reflects the same pattern of continuous sequential recovery, even though June, seems to break the trend when removing the effect of fewer working days during the month, the average daily dispatches show that the positive trend is in place. Additionally, this July data suggest we are reaching a new level for the second half of this year.

業界月度水泥搜尋圖反映了同樣的連續環比復甦的格局，儘管6月份似乎打破了這一趨勢，但在消除當月工作日減少的影響後，日均發貨量顯示積極趨勢已經到位。此外，今年 7 月的數據顯示我們今年下半年將達到新水準。

The macroeconomic conditions remain challenging, but as economic variables stabilize, the industry can find a solid foundation for growth. The industry's Bulk cement dispatches remain the most affected by this context, down 41% year-on-year while back seven posted a contraction of 24%.

宏觀經濟情勢依然充滿挑戰，但隨著經濟變數穩定，產業可以找到堅實的成長基礎。該行業的散裝水泥出貨量仍然是受此影響最大的行業，年減 41%，而前七月份的出貨量則下降了 24%。

When looking at the breakdown by dispatch mode for the quarter, Bulk shipments represent 49% of the total dispatches, while the Bulk format gain turn reaching 61%, 6-percentage-points above the second-quarter of 2023.

從本季按出貨方式細分來看，散裝出貨量佔總出貨量的 49%，而散裝形式的增幅達到 61%，比 2023 年第二季高出 6 個百分點。

Turning to slide 5, for an overview of our top line performance by segment. The first quarter top line show a decrease of 28%, mainly due to our lower top line performance of the cement business, followed by the rest of the segments. The [cement measurement cement] and then segment was down 26.1% with volumes contracting 42.5% year on year. The decline in volume was partially offset by a strong price performance.

請參閱投影片 5，概述我們按細分市場劃分的營收表現。第一季營收下降 28%，主要是因為我們的水泥業務營收表現較低，其次是其餘業務部門。[水泥測量水泥]及隨後的細分市場下降了 26.1%，銷量較去年同期萎縮 42.5%。強勁的價格表現部分抵銷了銷量的下降。

Although the construction affected both dispatch modes, both segment was hit the hardest in our bulk client segmentation industry and construction companies remain significantly down by public works only begun to show some early signs of activity towards the end of the quarter. Concrete revenues decreased by 47% in the quarter, mainly due to the 45% decrease in dispatches. The type of projects that are the core of our business are still lagging behind in terms of activity reactivation. Aggregates segments show a decrease of 46%, with volume down 25% following the trend of the Concrete segment.

儘管施工影響了兩種調度模式，但這兩個細分市場在我們的大宗客戶細分行業中受到的打擊最為嚴重，建築公司仍然因公共工程而大幅下滑，直到本季度末才開始顯示出一些活動的早期跡象。本季混凝土收入下降 47%，主要是由於出貨量減少 45%。作為我們業務核心的專案類型在活動重啟方面仍然落後。骨材細分市場下降了 46%，銷量跟隨混凝土細分市場的趨勢下降了 25%。

Finally, Railroad revenues decreased by 14.5% in the quarter. Transported volumes were down 22.5%, primarily affected by the lower level of activity in the construction sector, partially compensated by improvements in transported volumes of [Rexam] and [grades]. The positive price dynamics also help compensated for the lower volume.

最後，本季鐵路收入下降了 14.5%。運輸量下降 22.5%，主要受到建築業活動量較低的影響，[Rexam] 和 [Rexam] 運輸量的增加部分彌補了這一影響[成績]。正向的價格動態也有助於彌補成交量的下降。

Moving on to slide 7. The consolidated gross profit for the quarter declined 18.1% with a margin expansion of 329 basis points to 27%. That partially offset the volume contraction on our core business.

繼續看投影片 7。該季度綜合毛利下降 18.1%，利潤率擴大 329 個基點至 27%。這部分抵消了我們核心業務的銷售萎縮。

Regarding the salmon segment, the silver price trend and strict cost management, along with reduced depreciation, partially mitigate the impact of lower sales volume. Considering the cost of cement sales, technical usage during this quarter. What's most people using the warmer months 100 inputs were lower.

關於鮭魚領域，白銀價格趨勢和嚴格的成本管理以及折舊減少，部分緩解了銷售下降的影響。考慮到本季水泥銷售成本、技術使用情況。大多數人在溫暖的月份使用 100 輸入較低。

To mitigate higher energy costs and a potential natural gas shortage. Most of our [peers] were shut down during this quarter. We plan to utilize our clinker stock until spring at which point we will restart key operations.

緩解能源成本上升和潛在的天然氣短缺問題。我們的大多數[同業]在本季度都被關閉了。我們計劃利用我們的熟料庫存直到春季，屆時我們將重新啟動關鍵業務。

In terms of electrical energy, the company decreased its energy requirements by halting the primary grinding phase on the salmon production process. This enabled us to increase the proportion of renewable energy in our metrics to 61%, up from 46% in the second quarter of 2023. Consequently, reducing energy costs. Railroad also show our margin expansion, while Concrete and Aggregates posted significant contraction as the segments were more affected by the current context.

在電能方面，該公司透過停止鮭魚生產過程的初級研磨階段來降低能源需求。這使我們能夠將再生能源在指標中的比例從 2023 年第二季的 46% 提高到 61%。因此，降低了能源成本。鐵路也顯示出我們的利潤率擴張，而混凝土和骨材則大幅收縮，因為這些領域受當前環境的影響更大。

Finally, while SG&A expenses increased sharply by 28.5%, mainly due to lower salaries, a decrease in turnover tax, our freight costs related to lower volume. Another question, insurance cost as a percentage of sales remains flat at 9.4% despite the decrease in the top line.

最後，雖然SG&A費用大幅增加28.5%，主要是因為薪資下降、流轉稅減少，但我們的貨運成本與銷售下降有關。另一個問題是，儘管收入下降，保險成本佔銷售額的比例仍維持在 9.4%。

Please turn to slide 8. Our consolidated adjusted EBITDA for the quarter stood at USD51 million. In pesos adjusted EBITDA was down 11.7%, reaching ARS38 billion with a consolidated EBITDA margin of 28.1%, showing an expansion of 520 basis points year-on-year. On a sequential basis, the emerging show anywhere [calgary] increase jumping 552 basis points.

請翻到幻燈片 8。本季我們的綜合調整後 EBITDA 為 5,100 萬美元。以比索計算，調整後 EBITDA 下降 11.7%，達到 380 億阿根廷比索，綜合 EBITDA 利潤率為 28.1%，較去年同期成長 520 個基點。季比來看，新興展會（卡加利）上漲了 552 個基點。

Seven segment adjusted EBITDA margin stood at 31.5% expanding 565 basis points. The positive price performance update, cost management and better energy inputs mitigates the lower sales volume. In a per-ton basis, EBITDA reached USD45 per ton, increasing 22.6% year on year. Concrete adjusted EBITDA decreased ARS1.1 billion compared to the same quarter of last year with a margin contraction of 796 basis points, reaching minus 5%. It is primarily due to the sharp drop in dispatches that the recovery of these types of works that are targeted by these segments are still lagging behind the recovery.

七個部門調整後 EBITDA 利潤率為 31.5%，擴大 565 個基點。正面的性價比更新、成本管理和更好的能源投入緩解了銷售下降的影響。以每噸計算，EBITDA達到每噸45美元，年增22.6%。具體調整後的 EBITDA 與去年同期相比減少了 11 億澳元，利潤率收縮了 796 個基點，達到負 5%。主要是由於出貨量大幅下降，導致這些細分市場所針對的此類工程的恢復仍落後於復甦。

Adjusted EBITDA margin of aggregates contracted to minus 10.8% from 5.3% in the second quarter of 2023, mainly due to both lower volumes, lower fixed cost absorption and our price performance affected by product mix.

調整後的 EBITDA 整體利潤率從 2023 年第二季的 5.3% 縮減至負 10.8%，這主要是由於銷售下降、固定成本吸收降低以及我們的價格表現受到產品組合的影響。

Finally, the adjusted EBITDA margin of the Railroad segment expanded by 153 basis points in the quarter to 6.3%, primarily due to the positive performance and boosted by the increase on the average transported distance. Moving on to the bottom line on slide 10. This quarter, we posted a net profit attributable to owners of the company of ARS29.6 billion compared to a net profit of ARS9.5 billion in the second quarter of 2023.

最後，鐵路部門調整後的 EBITDA 利潤率在本季擴大了 153 個基點，達到 6.3%，這主要得益於積極的業績以及平均運輸距離成長的推動。繼續看投影片 10 的最後一行。本季度，我們公佈的歸屬於公司所有者的淨利潤為 296 億澳元，而 2023 年第二季的淨利潤為 95 億澳元。

The solid operational performance despite reduced volumes and a higher overall financial gains account for the improved results. Financially, the positive effect of inflation on the net monetary position is a primary factor for this variation, along before reduced impact from exchange rate difference due to the reduced pace of the valuation, a lower net financial cost. However, this gain was partially offset by interest income tax expense.

儘管銷售量減少，但穩健的營運績效和更高的整體財務收益是業績改善的原因。從財務角度來看，通膨對淨貨幣部位的正面影響是造成這種變化的主要因素，此外，由於估值步伐放緩、淨財務成本降低而導致匯率差異的影響減弱。然而，這項收益被利息所得稅費用部分抵銷。

Moving on to the balance sheet. As you can see on slide 11, we ended the quarter with a net debt of ARS118 billion. Consequently, our net debt-to-EBITDA ratio stood at 1.6 times compared to 1.4 times at the end of 2023, maintaining a comfortable indebtedness position.

繼續看資產負債表。正如您在幻燈片 11 中看到的那樣，本季末我們的淨債務為 1,180 億阿根廷比索。因此，我們的淨負債與 EBITDA 比率為 1.6 倍，而 2023 年底為 1.4 倍，維持了舒適的負債狀況。

Our operating activities, cash generation stood at ARS16 billion compared to a cash generation of 44% in the same period 2023. Well the decrease is mainly due to a lower relative performance, higher working capital needs. Our clinker inventories will mostly be used during the winter seasons when most of the gains will remain shut down.

我們的經營活動產生的現金為 160 億澳元，而 2023 年同期的現金產生率為 44%。下降的主要原因是相對業績較低、營運資金需求較高。我們的熟料庫存將主要在冬季使用，屆時大部分產能仍將關閉。

Regarding capital expenditures, we allocated ARS16.3 billion, mostly for maintenance CapEx for the 25 kilos back approach. During the quarter, the company used ARS2.1 billion in financing activities, primarily for interest payments, which were mostly offset by proceeds from borrowings, net of repayments. In dollar terms, our total debt reached $220 million, standing our net debt at $217 million at the end of this quarter.

關於資本支出，我們分配了 163 億ARS，主要用於 25 公斤回程的維護資本支出。本季度，該公司在融資活動中使用了 21 億阿根廷比索，主要用於支付利息，其中大部分被扣除還款後的借款收益所抵銷。以美元計算，我們的總債務達到 2.2 億美元，截至本季末我們的淨債務為 2.17 億美元。

With valuation of one year breaking it down by currency, the dollar-denominated debt represents 63% of the total debt, but the rest is pesos. The company will address the maturity of the Class 1 bond issued in pesos during this third quarter. As the second half of the year require less capital due to the recession of stocks during the winter, we will meet our short-term obligation with our cash generation and our bank credit line.

以貨幣劃分的一年期估值，以美元計價的債務佔總債務的 63%，其餘為比索。該公司將在第三季解決以比索發行的 1 級債券的到期問題。由於冬季股市衰退，下半年所需資金減少，我們將透過現金產生和銀行信貸額度來履行短期債務。

Now for our final remarks, I would like to hand the call back to Sergio. Thank you.

現在，我想把電話轉給塞爾吉奧，作為我們的最後發言。謝謝。

Thank you, Marcos. Now to finalize the presentation, I please ask you to turn to slide 13. Following a challenging start to the year, what the macro environment had a significant impact on the cemetery part. The second quarter start to show clear signs of recovery, which have continued strength in recent months, which July cumulate being very promising. By leveraging our expertise on operational efficiencies, Loma achieved another boost quarter by notable margin growth.

謝謝你，馬科斯。現在，為了結束簡報，請大家翻到投影片 13。經歷了今年充滿挑戰的開局後，宏觀環境對墓地部分產生了重大影響。第二季開始顯示出明顯的復甦跡象，近幾個月持續強勁，7 月的復甦非常有希望。透過利用我們在營運效率方面的專業知識，Loma 透過顯著的利潤成長實現了另一個季度的成長。

We are hopeful that the activity level we maintained the oncology recovery trajectory. With the tabulation of crucial economic factors, including a significant reduction in inflation I mentioned our main attractive foreign direct investments among other initiatives, we are confident that the construction industry has had a [mobile] opportunity on the horizon.

我們希望我們的活動量能夠維持腫瘤學恢復軌跡。透過列出關鍵的經濟因素，包括通貨膨脹的大幅下降，我提到了我們主要有吸引力的外國直接投資以及其他舉措，我們相信建築業即將迎來一個[移動]機會。

Finally, I would like to thank all our employees for the amendment and extend my gratitude to the rest of our stakeholders.

最後，我要感謝所有員工的修改，並向其他利害關係人表示感謝。

This is the end of our prepared remarks. We are now ready to take questions. Operator please open the call for questions.

我們準備好的演講到此結束。我們現在準備好回答問題。接線生請打開電話提問。

(Operator instructions)

（操作員說明）

Paul Smith, UBS.

保羅史密斯，瑞銀集團。

Hi, good morning. Actually to sell better valuations because institutions on our number, I think it says you are not losing deals before particularly pressure had two. First one, it's about July volumes and price, we see are much better reach of the more, it's a trend or it was a one-off not.

嗨，早安。實際上，為了出售更好的估值，因為機構對我們的數字進行了評估，我認為這表明在特別有壓力的兩筆交易之前，您不會失去交易。第一個是關於 7 月的銷量和價格，我們看到更多的人達到了更好的水平，這是一種趨勢，或者不是一次性的。

And if you permit my second question, it's about margins in terms of [receive] volumes dropping strong more than 10% year over year, but we've seen margin increase. My question is, is this sustainable for the future was amazing job a bond for you guys in terms of any [season] given the inventory on the summer. But I'd like to see for the future, which you can keep on this pace or if you could see some reversal on margins. Thank you very much.

如果您允許我提出第二個問題，那就是關於[接收]量的利潤率同比大幅下降 10% 以上，但我們已經看到利潤率增加。我的問題是，考慮到夏季的庫存，這種對未來可持續發展的工作是否對你們來說是一項了不起的工作，在任何[季節]方面都是如此。但我希望看到未來，你可以保持這個速度，或者你是否可以看到利潤率出現一些逆轉。非常感謝。

Hi, a lot of thank you for your question. (interpreted) Volumes of July, as you have seen, have a very interesting recovery from the volume shows in June, we believe due to several test which we have achieved in Argentina we are reaching a new level of dispatches. The consolidation of lower inflation the gap between FX's and what our some of the factors that are improving the situation in Argentina.

您好，非常感謝您的提問。（解釋）正如您所看到的，7 月的銷量較 6 月的銷量有非常有趣的恢復，我們相信，由於我們在阿根廷實現的多項測試，我們的發貨量正在達到新的水平。較低的通貨膨脹率和外匯之間差距的鞏固是改善阿根廷局勢的一些因素。

The recovery of real wages and the increase in credit, especially in mortgages, mortgage loans are also factors that are boosting the dispatches. We are starting to see some moderate increases in the level of activity of public works, and we expect to see that trend also improving in the second semester.

實質薪資的回升和信貸的增加，尤其是抵押貸款、抵押貸款的增加，也是提振出貨的因素。我們開始看到公共工程活動水準略有增加，我們預計這一趨勢在第二學期也會有所改善。

We believe that it will improve in the coming months. Regarding prices, we expect to maintain this level of prices. Our politics regarding prices as we always say it follows different issues as the effects, but also the evolution of our internal costs.

我們相信，未來幾個月情況將會有所改善。關於價格，我們預計將維持這個價格水準。正如我們常說的那樣，我們關於價格的政治遵循不同的問題作為影響，但也遵循我們內部成本的演變。

And we are not seeing any change in this strategy for the future. Regarding margins, even though we might see some impact in the upcoming quarter due to thermal energy. This effect must be very, very soft, we don't expect a huge change there. And also you have to consider that in September, we are going to start using the contract that we already signed.

我們沒有看到這一未來戰略有任何變化。關於利潤率，儘管我們可能會在下一季看到熱能帶來的一些影響。這種效果一定非常非常柔和，我們預計不會有巨大的變化。而且你還必須考慮到，在九月份，我們將開始使用我們已經簽署的合約。

And this contract showed a very significant decrease from the levels of the energy inputs that we have been using. So for the rest of the year, we are expecting to maintain our margins and even see some improvement in the fourth quarter of the year (inaudible)

這份合約顯示，與我們一直使用的能源投入水準相比，有非常顯著的下降。因此，在今年剩餘時間裡，我們預計將保持利潤率，甚至在第四季度看到一些改善（聽不清楚）

[Pedro Maulhardt], Latin Securities.

[Pedro Maulhardt]，拉丁證券。

Hi, good morning. Thanks for taking my question. So you mentioned that you expect the recent uptick activity to continue during the second half of the year. What do you believe will be the main drivers of recovery? Will it be the resumption of public works or private procession? And could the approval of [rishi] have any positive impact on cement dispatches?

嗨，早安。感謝您提出我的問題。您提到您預計近期的上漲活動將在今年下半年持續。您認為復甦的主要動力是什麼？是恢復公共工程還是私人遊行？[rishi]的批准會對水泥調度產生正面影響嗎？

Hi, Marina, thank you for your question. (interpreted) The drivers are the ones that we just mentioned, and they are impacting more in private works than in public works. As we believe in the next two weeks, we are going to see what the documentation for the for the rishi program. And there are projects, especially in the mining sector that our standby and probably with this new regime, they will be ready to start.

你好，瑪麗娜，謝謝你的問題。（解釋）驅動因素就是我們剛才提到的那些，它們對私人工程的影響比對公共工程的影響更大。正如我們相信在接下來的兩週內，我們將看到 rishi 程序的文檔。我們已經準備好一些項目，特別是採礦業的項目，並且可能在這個新制度下，它們將準備好啟動。

So with the Rishi and also with the increase in credit lines and with the start of several private works that we have been seen in the past few weeks or months, and the pillars that we expect to see the future world to sustain.

因此，隨著聖人的出現，信貸額度的增加，以及過去幾週或幾個月我們看到的幾項私人工程的啟動，以及我們期望看到未來世界得以維持的支柱。

Thank you.

謝謝。

(inaudible) BBA.

（聽不清楚）BBA。

Hi, Sergio. Hi, Marcos. Hi, Ron. Thanks for taking my question here. A hedge to the first is related to capital allocation. The company has been able to deliver is to decent resource during the first half of this year despite the economic headwinds and so on. And also the companies to have a strong and healthy capital structure.

嗨，塞爾吉奧。嗨，馬科斯。嗨，羅恩。感謝您在這裡提出我的問題。第一個因素的避險與資本配置有關。儘管面臨經濟逆風等因素，該公司今年上半年仍能提供充足的資源。而公司也擁有強大而健康的資本結構。

So I'd like to understand in terms of capital allocation, what are the company’s or management’s views regarding dividends and CapEx for this year. So this is my first question.

因此，我想了解在資本配置方面，公司或管理階層對今年的股利和資本支出有何看法。這是我的第一個問題。

And the second question is related to market share. You guys mentioned that you expect to maintain such price levels fall for the second half of this year. So I'd like to know then how is the company thinking about maintaining its market share and to submit marketing [Argentina]. So these are my two questions. Thank you, guys.

第二個問題與市場佔有率有關。你們提到預計今年下半年價格將維持這樣的下降水準。所以我想知道該公司如何考慮保持其市場份額並提交行銷[阿根廷]。這是我的兩個問題。謝謝你們，夥計們。

Hi, Marcelo. Thank you for your question. (interpreted) The level of prices and market share are two things that we follow upsells. The market share obviously have a monthly variations in plus or minus variation where we felt comfortable. But we don't have a policy of growing market share with lower prices because we believe that this will destroy value for the company in the long term.

嗨，馬塞洛。謝謝你的提問。（解釋）價格水準和市場份額是我們追蹤追加銷售的兩件事。市佔率顯然每月都會有正負變化，只要我們感到舒服。但我們沒有以更低的價格擴大市場份額的政策，因為我們認為從長遠來看這會損害公司的價值。

So the price in this quarter and the price that you will see in the future are going to be alongside a level of market share in where we feel comfortable. Regarding capital allocation in the next quarter, we have some maturities of short-term debt, and we expect to address that with some cash generation and our short-term lines with the banks.

因此，本季的價格以及您將來看到的價格將與我們感到滿意的市場份額水平保持一致。關於下個季度的資本配置，我們有一些短期債務到期，我們預計透過一些現金產生和與銀行的短期貸款來解決這個問題。

Regarding also capital allocation, we are seeing all the alternatives that might add value to the shareholders. So in the upcoming months, we will decide what is going to be the destiny of the cash generation second semester.

關於資本配置，我們看到了所有可能為股東增加價值的替代方案。因此，在接下來的幾個月裡，我們將決定現金生成第二學期的命運。

Okay. Thank you so much, guys, and congrats on the results.

好的。非常感謝你們，夥伴們，祝賀結果。

Alejandra Obregon, Morgan Stanley.

亞歷杭德拉‧奧布雷貢，摩根士丹利。

Hi, good morning, Damian, I think thank you for taking my question. I was wondering if you can give us some color on the mix of your volumes, meaning Bag versus Bulk today? And where do you see that going towards 2025?

嗨，早上好，達米安，謝謝你提出我的問題。我想知道您能否給我們一些關於您的捲的組合的信息，即今天的袋裝與散裝？您認為到 2025 年會怎麼樣？

And finally, when you talk about maintaining prices for the second half of the year. Just curious if there's a mix effect embedded into that comment as you shift away from that. Thank you.

最後，當你談論下半年維持價格時。只是好奇，當您遠離該評論時，該評論中是否嵌入了混合效果。謝謝。

Hi Alejandra, thank you for your question. (interpreted) After that, I'm going to ask you to repeat the second question because we didn't actually get it. Regarding the first one on the percentages or the participation of Bag on Bulk hire within the historic parameters.

你好亞歷杭德拉，謝謝你的問題。（解釋）之後，我要請你重複第二個問題，因為我們實際上並沒有得到它。關於第一個關於歷史參數內散裝袋租賃的百分比或參與度的問題。

But in the case of actually what is happening in this past quarter. In June and July, we saw a recovery a more sharp recovery of them back mode of dispatch, and that should be due to the recovery of the real wages and also the positive impact of the increased credit lines on the mortgage line. That the percentages are still 60% Bulk and 40% Bag, with some minor variations month to month.

但就上個季度實際發生的情況而言。6月和7月，我們看到了調度模式的恢復，而且恢復得更快，這應該是由於實際工資的恢復以及信貸額度增加對抵押貸款額度的正面影響。百分比仍然是 60% 散裝和 40% 袋裝，每個月都有一些細微的變化。

That's very clear. So perhaps a follow up. And so when you're mentioning 60% to 40% mix today, but I would assume that maybe as we move forward into 2025 than Bulk will start to contribute more to the mix. So how should we think of pricing given that you know that there's a shift in mix were Bulk we'll likely have a negative effect from the price mix.

這非常清楚。所以也許是後續行動。因此，當您今天提到 60% 到 40% 的混合時，但我認為，也許隨著我們進入 2025 年，散裝將開始為混合做出更多貢獻。那麼，鑑於您知道散裝產品組合發生了變化，我們應該如何考慮定價，我們可能會受到價格組合的負面影響。

So when you talk about maintaining prices, does that mean that you are expecting perhaps more price increases on that side of the mix. That's perhaps a little bit more clear.

因此，當您談論維持價格時，這是否意味著您預計這一方面的價格可能會出現更多上漲。這也許更清楚一點。

(interpreted) The strategy of pricing is very similar in both modes of dispatch. And margins in both in Bulk and Bag is also very similar. And our market share in both dispatch mode are also very similar.

（解釋）兩種調度模式的定價策略非常相似。Bulk 和 Bag 中的邊距也非常相似。而且我們在兩種調度模式下的市佔率也非常相似。

And we have seen cases in the past where we saw a variation in the participation of these two parts of dispatches, and we didn't see any impact in on pricing.

我們在過去看到過這樣的案例，我們發現這兩部分調度的參與程度有所不同，但我們沒有看到對定價有任何影響。

Got you. That's very clear. Thanks again for taking my questions.

明白你了。這非常清楚。再次感謝您回答我的問題。

Your welcome.

別客氣。

Thank you. And this concludes our question and answer session. I would like to turn the call back over (inaudible) for any closing.

謝謝。我們的問答環節到此結束。我想將電話轉回（聽不清楚）以便結束。

Thank you all for joining us today. We really appreciate your participation, and we expect to meet you again in our next call. Thank you very much and have a nice morning.

感謝大家今天加入我們。我們非常感謝您的參與，我們期待在下次電話會議中再次見到您。非常感謝您，祝您早安。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。