Q2 2026 Unacemcorp SAA Earnings Call

August 18, 2026

Speaker #1: Greetings, and welcome to the Grupo Unacem Second Quarter 2026 Results Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation.

Operator: Greetings, and welcome to the Grupo Unacem Q2 2026 results conference call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. You can also ask a question via the webcast. Please ask your questions, it will be answered accordingly. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alicia Campos, Corporate Chief Strategy Officer. Thank you, Alicia. You may begin.

Speaker #1: If anyone does require operator assistance during the conference, please press star zero on your telephone keypad. You can also ask a question via the webcast.

Speaker #1: Please ask your questions. They will be answered accordingly. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alicia Campos, Corporate Chief Strategy Officer.

Speaker #1: Thank you, Alicia. You may begin.

Speaker #2: Thank you, Kevin. Good morning, and welcome to our earnings conference call. My name is Alicia Campos, and I am pleased to be joined by Pedro Lerner, our CEO, and Álvaro Morales, our CFO.

Alicia Campos: Thank you, Kevin. Good morning, and welcome to our earnings conference call. My name is Alicia Campos, and I am pleased to be joined by Pedro Lerner, our CEO, and Álvaro Morales, our CFO. After their presentation, you will have the opportunity to ask your questions. Please note that we might disclose some forward-looking statements related to Grupo Unacem based on currently known facts, expectations, and forecasts, circumstances, and assumptions regarding future events. Many factors could cause the future results, performance, and achievements of Grupo Unacem to be different from those expressed or assumed herein. So this should be considered for reference only. Pedro, you may begin.

Alicia Campos: Thank you, Kevin. Good morning, and welcome to our earnings conference call. My name is Alicia Campos, and I am pleased to be joined by Pedro Lerner, our CEO, and Álvaro Morales, our CFO. After their presentation, you will have the opportunity to ask your questions. Please note that we might disclose some forward-looking statements related to Grupo Unacem based on currently known facts, expectations, and forecasts, circumstances, and assumptions regarding future events. Many factors could cause the future results, performance, and achievements of Grupo Unacem to be different from those expressed or assumed herein. So, this should be considered for reference only. Pedro, you may begin.

Speaker #2: After their presentation, you will have the opportunity to ask your questions. Please note that we might disclose some forward-looking statements related to Grupo Unacem.

Speaker #2: Based on currently known facts, expectations, and forecast circumstances and assumptions regarding future events, many factors could cause the future results, performance, and achievements of Grupo Unacem to be different from those expressed or assumed herein.

Speaker #2: So, this should be considered for reference only. Pedro, you may begin.

Speaker #3: Thank you, Alicia. Ladies and gentlemen, good morning. It is a pleasure, once again, to share with you our performance this past quarter. Our consolidated EBITDA for the quarter reached 468 million soles, up 19.7% from the second quarter of 2025.

Pedro Lerner: Thank you, Alicia. Ladies and gentlemen, good morning. It is a pleasure once again to share with you our performance this past quarter. Our consolidated EBITDA for the quarter reached PEN 468 million, up 19.7% from Q2 2025. This solid performance reflected both strong top-line growth and higher profitability. Revenue increased 10.6% year-over-year to PEN 1,931 million, while the EBITDA margin reached 24.2%, 180 basis points above Q2 2025. This positive trend is in line with our expectations, supported by strong demand and favorable pricing across our Latin American markets. In Peru, we are encouraged by President Fujimori's initial message, as her government's priorities seem to be focused on infrastructure investment, preparing for the upcoming El Niño phenomenon, and improving overall safety conditions. In Ecuador, higher fuel costs were offset by a more balanced energy mix, strong volumes, and favorable pricing.

Speaker #3: This solid performance reflected both strong top-line growth and higher profitability. Revenue increased 10.6% year over year, to S/ 1,931 million, while the EBITDA margin reached 24.2%, 180 basis points above the second quarter of 2025.

Speaker #3: This positive trend is in line with our expectations, supported by strong demand and favorable pricing across our Latin American markets. In Peru, we're encouraged by President Fujimori's initial message, as our government's priorities seem to be focused on infrastructure investment, preparing for the upcoming El Niño phenomenon, and improving overall safety conditions.

Pedro Lerner: This positive trend is in line with our expectations, supported by strong demand and favorable pricing across our Latin American markets. In Peru, we are encouraged by President Fujimori's initial message, as her government's priorities seem to be focused on infrastructure investment, preparing for the upcoming El Niño phenomenon, and improving overall safety conditions. In Ecuador, higher fuel costs were offset by a more balanced energy mix, strong volumes, and favorable pricing.

Speaker #3: In Ecuador, higher fuel costs were offset by a more balanced energy mix, strong volumes, and favorable pricing. In Chile, we completed our first quarter of operations with additional installed capacity at the Puente Alto mill, resulting in a significant increase in volumes.

Pedro Lerner: In Chile, we completed our first quarter of operations with additional installed capacity at the Puente Alto mill, resulting in a significant increase in volumes. Our energy operations in Peru also posted a solid recovery from the prior quarter, supported by the normalization of the Camisea gas pipeline service and the addition of new clients to our portfolio. Regarding our US operations, market trends have started to improve in Arizona but are still lagging in California. Having said that, our team is focused on achieving operating efficiencies at the plant level and working capital management, all of which will improve our competitiveness in the current market conditions.

Pedro Lerner: In Chile, we completed our Q1 of operations with additional installed capacity at the Puente Alto mill, resulting in a significant increase in volumes. Our energy operations in Peru also posted a solid recovery from the prior quarter, supported by the normalization of the Camisea gas pipeline service and the addition of new clients to our portfolio. Regarding our US operations, market trends have started to improve in Arizona but are still lagging in California. Having said that, our team is focused on achieving operating efficiencies at the plant level and working capital management, all of which will improve our competitiveness in the current market conditions.

Speaker #3: Our energy operations in Peru also posted a solid recovery from the prior quarter, supported by the normalization of the Kamisea gas pipeline service and the addition of new clients to our portfolio.

Speaker #3: Regarding our U.S. operations, market trends have started to improve in Arizona but are still lagging in California. That said, our team is focused on achieving operating efficiencies at the plant level and managing working capital, all of which will improve our competitiveness in the current market conditions.

Speaker #3: At the corporate level, our priorities are to complete our initial strategic plan. Following the formalization of Grupo Unacem and the establishment of our new corporate structure in 2022, we launched our first group-wide strategic plan focused on standardizing operations and generating synergies across all business units.

Pedro Lerner: At the corporate level, our priority is to complete our initial strategic plan. Following the formalization of Grupo Unacem and establishment of our new corporate structure in 2022, we launched our first group-wide strategic plan, focused on standardizing operations and generating synergies across all business units. Key initiatives included the creation of our Global Business Services hub, our corporate safety program, Vida Primero, and our roadmap toward carbon neutrality. As we conclude the unlocking value phase, we are defining the priorities for our next strategic cycle to maximize value and build on the progress achieved. We will share further details in the coming months. That will be all on my side. Thank you very much for your attendance this morning, and now I will pass it over to Alvaro for a detailed analysis of our financial results.

Pedro Lerner: At the corporate level, our priority is to complete our initial strategic plan. Following the formalization of Grupo Unacem and establishment of our new corporate structure in 2022, we launched our first group-wide strategic plan, focused on standardizing operations and generating synergies across all business units. Key initiatives included the creation of our Global Business Services hub, our corporate safety program, Vida Primero, and our roadmap toward carbon neutrality. As we conclude the unlocking value phase, we are defining the priorities for our next strategic cycle to maximize value and build on the progress achieved. We will share further details in the coming months. That will be all on my side. Thank you very much for your attendance this morning, and now I will pass it over to Álvaro for a detailed analysis of our financial results.

Speaker #3: Key initiatives included the creation of our Global Business Service Hub, our corporate safety program, Vida Primero, and our roadmap toward carbon neutrality. As we conclude the Unlocking Value phase, we're defining the priorities for our next strategic cycle to maximize value and build on the progress achieved.

Speaker #3: We will share further details in the coming months. That will be all on my side. Thank you very much for your attendance this morning, and now I will pass it over to Álvaro for a detailed analysis of our financial results.

Speaker #4: Thank you, Pedro. Good morning, everyone. Thank you for joining us today. I am pleased to discuss our second quarter and year-to-date financials. As Pedro mentioned, this period reflects the strong performance of most of our business lines across our operations.

Álvaro Morales: Thank you, Pedro. Good morning, everyone. Thank you for joining us today. I am pleased to discuss our Q2 and year-to-date financials. As Pedro mentioned, this period reflects the strong performance of most of our business lines across our operations. During the Q2 2026, our consolidated revenues were driven by strong volume performance. We posted higher cement volumes overall, improvement in the ready-mix market in Chile, and continued growth in our energy platform. In the US, improved market activity drove higher volumes across all our business lines. These results led to a 10.6% growth versus the Q2 2025. Year to date, our consolidated volumes were also strong across most of our markets. In Peru, cement volumes showed sound performance, while ready-mix volumes declined due to the absence of large-scale projects.

Speaker #4: During the second quarter of 2026, our consolidated revenues were driven by strong volume performance. We posted higher cement volumes overall, improvement in the ready-mix market in Chile, and continued growth in our energy platform.

Speaker #4: In the U.S., improved market activity drove higher volumes across all our business lines. These results led to a 10.6% growth versus the second quarter of 2025.

Speaker #4: Year-to-date, our consolidated volumes were also strong across most of our markets. In Peru, cement volumes showed sound performance, while ready-mix volumes declined due to the absence of large-scale projects.

Speaker #4: Our energy business continued to grow, supported by higher generation at Celepsa following the addition of new clients. Ecuador posted growth in both cement and ready-mix, driven by ongoing demand recovery.

Álvaro Morales: Our energy business continued to grow, supported by higher generation at Celepsa, following the addition of new clients. Ecuador posted growth in both cement and ready-mix, driven by an ongoing demand recovery. In the United States, the Arizona market is picking up steadier than California, but we are recording higher volumes across all business sectors. In Chile, both cement and ready-mix volumes showed encouraging growth. Overall, these trends resulted in an 8.9% increase in revenues compared to 2025. As you can see in the chart, our portfolio volumes performed well across the board, with the exception of ready-mix in Peru. In Peru, during this quarter, cement dispatches registered 1.5 million tons, an increase of 6.4% versus the Q2 2025, reflecting both cement sold and internal transfers for ready-mix production.

Speaker #4: In the United States, the Arizona market is picking up steadier than California, but we're recording higher volumes across all business sectors. In Chile, both cement and ready-mix volumes showed encouraging growth.

Speaker #4: Overall, these trends resulted in an 8.9% increase in revenues compared to 2025. As you can see in the chart, our portfolio volumes performed well across the board, with the exception of ready-mix in Peru.

Speaker #4: In Peru, during this quarter, cement dispatches registered 1.5 million tons, an increase of 6.4% versus the second quarter of 2025, reflecting both cement sold and internal transfers for ready-mix production.

Speaker #4: On the other hand, clinker exports through the Conchal Terminal reached 204,000 tons, 20.9% higher than in the second quarter 2025, consistent with the expansion of our Chilean operations.

Álvaro Morales: On the other hand, clinker export through the Conchán terminal reached 204,000 tons, 20.9% higher than in Q2 2025, consistent with the expansion of our Chilean operations. Year to date, dispatches were 8.6% higher. Average prices were higher, reflecting a price increase implemented in Q2 2026 through the traditional channel. Our ready-mix business in Peru recorded 501,000 cubic meters, compared to 612,000 cubic meters in Q2 2025, a decrease of 18.1% due to lower demand in housing, private projects, and the mining sector. Year to date, volumes were 15% lower. Celepsa consolidated volume was 61.1% higher than in Q2 2025, with energy sales reaching 1,498 gigawatts hour. Year to date, energy sales increased by 41.2%, reaching 2,799 gigawatts hour, driven by the addition of Minera Antapaccay and Luz del Sur as clients since the beginning of the year. Ecuador.

Speaker #4: Year-to-date, dispatches were 8.6% higher. Average prices were higher, reflecting a price increase implemented in the second quarter of 2026 through the traditional channel. Our ready-mix business in Peru recorded 501,000 cubic meters, compared to 612,000 cubic meters in the second quarter of 2025, a decrease of 18.1%.

Speaker #4: Due to lower demand in housing, private projects, and the mining sector, year-to-date volumes were 15% lower. Celepsa consolidated volume was 61.1% higher than in the second quarter 2025, with energy sales reaching 1,498 gigawatt-hours.

Speaker #4: Year-to-date, energy sales increased by 41.2%, reaching 2,799 gigawatt-hours, driven by the addition of Mineran Tapacay and Luz del Sur as clients since the beginning of the year.

Speaker #4: Ecuador: Cement volumes increased by 14.9% to 347,000 tons, compared to 302,000 tons in the second quarter of 2025. Ready-mix volumes were 63,000 cubic meters, slightly down by 0.4% versus the second quarter of 2025.

Álvaro Morales: Cement volumes increased by 14.9% to 347,000 tons, compared to 302,000 tons in Q2 2025. Ready-mix volumes were 63,000 cubic meters, slightly down by 0.4% versus Q2 2025. Year to date, cement volumes grew 13.1%, and ready-mix grew 6.9%, reflecting market growth, higher private investment, and domestic consumption. US operations. Unacem North America reported 370,000 metric tons of cementitious materials during Q2 2026, versus 331,000 cubic meters in Q2 2025, an increase of 11.8%. This overall growth showed mixed trends by market, with trade volumes growing by 23%, while Tehachapi's grew by 1.7%. Ready-mix operations recorded 349,000 cubic meters, 27% higher than in Q2 2025. Aggregates volumes were 55.6% higher, amounting to 571,000 metric tons. Cement prices were slightly lower, and ready-mix prices declined due to market conditions. In contrast, aggregates prices were slightly higher.

Speaker #4: Year-to-date, cement volumes grew 13.1%, and ready-mix grew 6.9%, reflecting market growth, higher private investment, and domestic consumption. U.S. operations: Unacem North America reported 370,000 metric tons of cementitious materials during the second quarter of 2026, versus 331,000 metric tons in the second quarter of 2025, an increase of 11.8%.

Speaker #4: This overall growth showed mixed trends by market, with trade volumes growing by 23%, while the HAPIs grew by 1.7%. Ready-mix operations recorded 349,000 cubic meters, 27% higher than in the second quarter of 2025.

Speaker #4: Aggregates volumes were 55.6% higher, amounting to 571,000 metric tons. Cement prices were slightly lower, and ready-mix prices declined due to market conditions. In contrast, aggregate prices were slightly higher.

Speaker #4: Year-to-date, overall cement dispatches increased 13.6%, reaching 696,000 metric tons, driven by higher market demand, mainly in Arizona. Ready-mix increased 19.2% to 604,000 cubic meters, and aggregates increased 31.6% to 959,000 metric tons.

Álvaro Morales: Year-to-date, overall cement dispatches increased 13.6%, reaching 696,000 metric tons, driven by higher market demand, mainly in Arizona. Ready-mix increased 19.2% to 604,000 cubic meters, and aggregates increased 31.6% to 959,000 metric tons. Chile. Cement dispatches recorded 216,000 tons during the quarter, 63.6% higher year over year, driven primarily by the additional capacity and consequently new clients from the Puente Alto plant since 1 April. Ready-mix dispatches were up by 5.8%, with 292,000 cubic meters dispatched, driven by solid performance in the metropolitan region and the addition of two new plants during the quarter. Year-to-date, cement dispatches reached 353,000 metric tons, up 36.6%, while ready-mix reached 587,000 cubic meters, up 9.5%. Average prices for both cement and ready-mix were high. Consolidated cost of sales increased by 6.9% in Q2 2026, growing gross margin up to 26.3% for 23.8% in Q2 2025.

Speaker #4: Chile: Cement dispatches recorded 216,000 tons during the quarter, 63.6% higher year over year. This was driven primarily by the additional capacity and, consequently, new clients from the Puente Alto plants since April 1st.

Speaker #4: Ready-mix dispatches were up by 5.8%, with 292,000 cubic meters dispatched, driven by solid performance in the metropolitan region and the addition of two new plants during the quarter.

Speaker #4: Year-to-date, cement dispatches reached 353,000 metric tons, up 36.6%, while ready-mix reached 587,000 cubic meters, up 9.5%. Average prices for both cement and ready-mix were high.

Speaker #4: Consolidated cost of sales increased by 6.9% in the second quarter of 2026, growing gross margin up to 26.3% from 23.8% in the second quarter of 2025.

Speaker #4: The main drivers were lower cement cost in Unacem North America, in line with our expectations, as annual maintenance of both U.S. cement plants was completed in the first quarter of 2026, compared to the prior year, when overhauls were executed in the second quarter of 2025.

Álvaro Morales: The main drivers were lower cement costs in Unacem North America, in line with our expectations, as annual maintenance of both US cement plants was completed in Q1 2026, compared to the prior year, when overhauls were executed in Q2 2025. Additionally, higher cement margins in Peru and Chile, as well as a stronger energy margin at Celepsa, contributed with a higher profitability and offset higher energy costs in Ecuador. Year-to-date, results were impacted by the Camisea gas pipeline incident in Q1 2026. As a result, consolidated cost of goods sold increased by 11.2%, pressuring year-to-date gross margin to 22.8% compared to 24.4% in the same period of 2025.

Speaker #4: Additionally, higher cement margins in Peru and Chile, as well as a stronger energy margin at Celebsa, contributed to higher profitability and offset higher energy costs in Ecuador.

Speaker #4: Year-to-date, results were impacted by the Camisea gas pipeline incident in the first quarter of 2026. As a result, consolidated cost of goods sold increased by 11.2%, pressuring year-to-date gross margin to 22.8% compared to 24.4% in the same period of 2025.

Speaker #4: Our administrative expenses in the second quarter were 5% higher than in the second quarter of 2025, driven by higher consultancy costs supporting the development of the strategic agenda and long-term business plans across all business units.

Álvaro Morales: Our administrative expenses in Q2 were 5% higher than in Q2 2025, driven by higher consultancy costs supporting the development of the strategic agenda and long-term business plans across all business units, as well as higher personal expenses at Unacem North America to reinforce the management team. Despite this increase, as a percentage of revenues, administrative expenses reached 7%, slightly lower than the 7.4% recorded in Q2 2025. Year-to-date, administrative expenses decreased 2.4%, reaching 7.2% of revenues due to accounting reclassification from expenses to costs at Unacem North America. Selling expenses were 36% higher than in Q2 2025, driven by the strong market activity and higher innovation services and advertising costs to strengthen UNACEM Perú commercial strategy. As a percentage of revenue, selling expenses reached 2.6% compared to 2.1% in Q2 2025.

Speaker #4: As well as higher personal expenses at Unacem North America to reinforce the management team. Despite this increase, as a percentage of revenues, administrative expenses reached 7%, slightly lower than the 7.4% recorded in the second quarter of 2025.

Speaker #4: Year-to-date, administrative expenses decreased 2.4%, reaching 7.2% of revenues, due to an accounting reclassification from expenses to cost at Unacem North America. Selling expenses were 36% higher than in the second quarter of 2025, driven by strong market activity and higher innovation services and advertising costs to strengthen Unacem's Peru commercial strategy.

Speaker #4: As a percentage of revenues, selling expenses reached 2.6%, compared to 2.1% in the second quarter of 2025. Year-to-date, selling expenses increased 21.8%, reaching 2.2% of revenues, driven by higher innovation services in Peru and, to a lesser extent, by higher personnel expenses at Unacem North America.

Álvaro Morales: Year-to-date, selling expenses increased 21.8%, reaching 2.2% of revenues, driven by higher innovation services in Peru and to a lesser extent by higher personal expenses at Unacem North America. In Q2, other net expenses amounted PEN 12 million, compared to a gain of PEN 1 million in Q2 2025. This shift was primarily driven by lower other income, reflecting the absence of non-recurring items recorded in Q2 2025. Specifically, insurance indemnification income at UNACEM Perú, and a one-time efficiency bonus released at Termochilca. Additionally, other expenses increased due to higher demurrage charges at UNACEM Perú. Year-to-date, other net expenses amounted PEN 24 million, compared to a gain of PEN 6 million in the same period of 2025, reflecting the same dynamics observed in the quarter.

Speaker #4: In the second quarter, other net expenses amounted to 12 million soles, compared to a gain of 1 million soles in the second quarter of 2025. This shift was primarily driven by lower other income, reflecting the absence of non-recurring items recorded in the second quarter of 2025.

Speaker #4: Special insurance indemnization income at Unacem Peru and a one-time efficiency bonus released at Termochilca. Additionally, other expenses increased due to higher demurrage charges at Unacem Peru.

Speaker #4: Year-to-date, other net expenses amounted to 24 million soles, compared to a gain of 6 million soles in the same period of 2025, reflecting the same dynamics observed in the quarter.

Speaker #4: Consolidated EBITDA for the second quarter reached 468.1 million soles, 18.7% higher than in the second quarter of 2025, with margin expanding to 24.2% compared to 22.4% in the second quarter of 2025.

Álvaro Morales: Consolidated EBITDA for Q2 reached PEN 468.1 million, 18.7% higher than in Q2 2025, with margin expanding to 24.2% compared to 22.4% in Q2 2025. This strong quarterly performance was both based across most of our operations, led by Unacem North America, following the completion of our maintenance at both plants, which, as we mentioned earlier, was executed in Q1 2026, compared to Q2 2025 last year. Celepsa also posted higher margins with the addition of new clients. In Chile, results continue to improve, driven by the stronger market and by the additional installed capacity from the Puente Alto plant, as well as the addition of precast projects to the portfolio. Ecuador also posted solid EBITDA growth, supported by volume and price improvement, which offset higher energy costs.

Speaker #4: This strong quarterly performance was broad-based across most of our operations, led by Unacem North America, following the completion of our maintenance at both plants, which, as was mentioned earlier, was executed in the first quarter of 2026 compared to the second quarter of 2025 last year.

Speaker #4: Celebsa also posted higher margins with the addition of new clients. In Chile, results continued to improve, driven by the stronger market and by the additional installed capacity from the Puente Alto plant, as well as the addition of precast projects to the portfolio.

Speaker #4: Ecuador also posted solid EBITDA growth, supported by volume and price improvements, which offset higher energy costs. These gains were partially offset by Unacem Peru, where a higher share of lower-margin products in the sales mix weighed on results.

Álvaro Morales: These gains were partially offset by UNACEM Perú, where a higher share of lower margin products in the sales mix weighed on results. Year-to-date, EBITDA reached PEN 788 million, 0.9% above H1 2025, with margin declining to 21.2% from 22.8% in the same period last year. This more moderate result largely reflects the negative impact of the Camisea gas incident in Q1 2026, which significantly increased energy cost and pressured Celepsa year-to-date margin. To a lesser extent, by weaker results in the precast segment in Chile and Ecuador during Q1. Net profit reached PEN 175 million in Q2 2026, 65.5% higher than in Q2 2025, with net margin expanding to 9.1% from 6.1% in the prior year period.

Speaker #4: Year-to-date, EBITDA reached 788 million soles, 0.9% above the first half of 2025, with margin declining to 21.2% from 22.8% in the same period last year.

Speaker #4: This more moderate result largely reflects the negative impact of the Camisea gas incident in the first quarter of 2026, which significantly increased energy costs and pressured Celepsa's year-to-date margins.

Speaker #4: And to a lesser extent, by weaker results in the pre-cast segment in Chile and Ecuador during the first quarter. Net profit reached S/175 million in the second quarter of 2026, 65.5% higher than in the second quarter of 2025, with net margin expanding to 9.1% from 6.1% in the prior-year period.

Speaker #4: This improvement was primarily driven by the recovery in operating margins across our cement and energy operations, as we have just discussed. Additionally, financial expenses declined to 88 million soles in the second quarter of 2026, compared to 102 million soles in the second quarter of 2025, reflecting improved interest rates and a lower debt balance compared to the same quarter last year.

Álvaro Morales: This improvement was primarily driven by the recovery in operating margins across our cement and energy operations, as we have just discussed. Additionally, financial expenses declined to PEN 88 million in Q2 2026, compared to PEN 102 million in Q2 2025, reflecting improved interest rates and a lower debt balance compared to the same quarter last year. These gains were partially offset by lower foreign exchange gains, which came in at PEN 30 million in Q2 2026, compared to PEN 20.6 million in Q2 2025. Year-to-date, net profit reached PEN 174 million, 19.9% below H1 2025, with net margin declining to 4.7% from 6.4% in the same period last year. As we have discussed throughout this presentation, the year-to-date results reflect the pressure from lower operating margins, as well as the absence of non-recurring income recorded in 2025.

Speaker #4: These gains were partially offset by lower foreign exchange gains, which came in at 30 million soles in the second quarter of 2026, compared to 20.6 million soles in the second quarter of 2025.

Speaker #4: Year-to-date, net profit reached 174 million soles, 19.9% below the first half of 2025, with net margin declining to 4.7% from 6.4% in the same period last year.

Speaker #4: As we have discussed throughout this presentation, the year-to-date results reflect the pressure from lower operating margins, as well as the absence of non-recurring income recorded in 2025.

Speaker #4: Additionally, the foreign exchange shifted from a gain of 48.8 million soles in the first half of 2025 to a loss of 8.4 million soles in 2026.

Álvaro Morales: Additionally, the foreign exchange shift from a gain of PEN 48.8 million in H1 2025 to a loss of PEN 8.4 million in 2026, as the Peruvian sol devaluated against the US dollar. These effects were partially offset by lower financial expenses, which declined to PEN 175 million from PEN 189 million in the same period of 2025. In terms of CapEx, disbursement totaled PEN 363 million, compared to PEN 349 million last year. Our main investments are on our ongoing projects in the new line plant in association with Calidra, with a total CapEx of PEN 94.7 million so far.

Speaker #4: As the Peruvian sol devalued against the US dollar, these effects were partially offset by lower financial expenses, which declined to 175 million soles from 189 million soles in the same period of 2025.

Speaker #4: In terms of CAPEX, disbursements totaled 353 million soles, compared to 349 million soles last year. Our main investments are in our ongoing projects, such as the New Line plan in association with Calidra, with total CAPEX of 94.7 million soles so far, and several projects at Unacem Peru.

Álvaro Morales: UNACEM Perú, several projects, namely the new primary crusher, Gas Suspension Absorber, the roofing of the clinker fields, and the construction of the electric transmission system that will ensure energy supply at our Atocongo plant, as well as new mixer trucks and pump trucks at UNICON Perú. In Ecuador, the maneuver and dispatch yard and projects to improve the use of the roller crusher are underway. While in the US, investments are focused on equipment upgrades to existing facilities. Consolidated net debt was PEN 5.1 billion as of June 2026, higher compared to the end of last year, reflecting CapEx execution, primarily the PEN 75.7 million in financing allocated to the construction of Calcem. The Net Debt to EBITDA ratio was 3.15x above the figure at the end of the previous year, that was 3.04x. Thank you. That will be all from my side.

Speaker #4: Namely, the new primary crusher gas suspension absorber, the roofing of the clinker fields, and the construction of the electrical transmission system that will ensure energy supply at our Atacongo plant.

Speaker #4: As well as new mixer trucks and pump trucks at UNACEM UNICON Peru. In Ecuador, the maneuvering dispatch yard and projects to improve the use of the roller crusher are underway.

Speaker #4: While in the US, investments are focused on equipment upgrades to existing facilities. Consolidated net debt was S/5.1 billion as of June 2026, higher compared to the end of last year, reflecting CAPEX execution, primarily the S/75.7 million in finances allocated to the construction of Calcem. The net debt to EBITDA ratio was 3.15 times, above the figure at the end of the previous year, which was 3.04 times.

Speaker #4: Thank you. That will be all from my side. Now, we open the microphone for your questions.

Álvaro Morales: Now we open the microphone for your questions.

Speaker #1: Thank you. We'll now be conducting a question-and-answer session. If you'd like to ask a question, we ask that you please type your question into the webcast.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question today, we ask you to please type your question into the webcast. Once again, if you would like to ask a question today, please type your question using the webcast. One moment please while we poll for questions. I will turn the floor over to management. Once again, if you do have any

Speaker #1: Once again, if you would like to ask a question today, please type your question using the webcast. One moment, please, while we pull up our questions.

Speaker #1: I'll turn the floor over to management. Once again, if you do have any—oh, go ahead. Go ahead.

Alicia Campos: Thank you, Kevin.

Operator: Go ahead. Go ahead.

Speaker #2: Sorry. Thank you, Kevin. We have our first two questions on our US operations. The first question is from Marianne Gonif from Credit Corp Capital, and her question is: Do you expect this positive trend in the US volumes to be sustained for the rest of the year and into 2027?

Alicia Campos: Sorry. Thank you, Kevin. We have our first 2 questions on our US operations. The first question is from Marianne Goñi, from Credicorp Capital, and her question is, do you expect this positive trend in the US volumes to be sustained for the rest of the year and into 2027? The second question comes from Gabriel Pérez, also from Credicorp Capital. His question is, taking into account that other geographies in the US are posting weak cement demand volumes, why do you think that your current operation is having positive results? What are your expectations for the rest of the year in terms of demand? Alvaro.

Speaker #2: And the second question comes from Gabrielle Perez, also from Credit Corp Capital. His question is: Taking into account that other geographies in the U.S. are posting weak cement demand volumes, why do you think that your current operation is having positive results?

Speaker #2: What are your expectations for the rest of the year in terms of demand?

Speaker #3: Thank you for the questions. For the first one, although the expectation is for the market to remain flat, our Arizona operations are outperforming and recovering market share, with the planned operation close to full capacity.

Álvaro Morales: Thank you for the questions. The first one, the expectation is for the market to remain flat, our Arizona operations are outperforming and recovering market share, with the plant operating close to full capacity. Regarding California's plant, we are reviewing our go-to market strategy to increase our client base. The other question, thank you very much for Gabriel. The new management in place at Unacem North America is working on several efficiencies at the plant level, logistic and working capital level, which will enable us to reach a broader geographic coverage and gain market share. Si.

Speaker #3: Regarding California's plan, we are reviewing our go-to-market strategy to increase our client base. And the other questions, thank you very much for Gabrielle. No?

Speaker #3: The new management in place at Unacem North America is working on several efficiencies at the plant level, as well as at the logistics and working capital levels, which will enable us to reach broader geographic coverage and gain market share.

Speaker #2: Thank you, Álvaro. We have an additional question from Gabrielle Ramos at Calpasap. Her question is: Following the addition of Antapacay, should we expect Cellepsis generation to remain above 2025 levels through the remainder of this year and into 2027?

Alicia Campos: Thank you, Alvaro. We have an additional question from Gabriel Ramos from Kallpa SAB. His question is, following the addition of Antapaccay, should we expect Celepsa generation to remain above 2025 levels through the remaining of this year and into 2027? That is one question. The other question is, how should we think about the hydro versus thermal generation mix given the potential impact of El Niño on hydrological conditions? Do you see any risk of a less favorable hydro thermal mix and consequently higher marginal costs over the coming quarters? Pedro, do you want to answer this?

Alicia Campos: Thank you, Álvaro. We have an additional question from Gabriel Ramos from Kallpa SAB. His question is, following the addition of Antapaccay, should we expect Celepsa generation to remain above 2025 levels through the remaining of this year and into 2027? That is one question. The other question is, how should we think about the hydro versus thermal generation mix given the potential impact of El Niño on hydrological conditions? Do you see any risk of a less favorable hydro thermal mix and consequently higher marginal costs over the coming quarters? Pedro, do you want to answer this?

Speaker #2: That's one question. And then the other question is, how should we think about the hydro versus thermal generation mix, given the potential impact of El Niño on hydrological conditions?

Speaker #2: Do you see any risk of a less favorable hydrothermal mix and, consequently, higher marginal costs over the quarters? Pedro, do you want to answer this?

Speaker #3: We are now—thank you, Gabrielle. We are now experiencing higher marginal costs as we speak. Usually, when we have El Niño, the El Niño phenomenon on a hydrological level, we have a dry year.

Pedro Lerner: Thank you, Gabriel. We are now experiencing higher marginal costs as we speak. Usually, when we have El Niño, the El Niño phenomenon on a hydrological level, we have a dry year. So hydropower production for this year is expected to be at a lower level, and the country level is expected to be lower than average. We have a solid thermal generation capacity in the country. So we shouldn't be expecting curtailments, but we should be expecting higher marginal costs and higher spot prices in the electricity market.

Speaker #3: So hydropower production for this year is expected to be at a lower level, country level is expected to be lower than average. So we have a solid thermal generation capacity, and the country, but we should be expecting so we shouldn't be expecting curtailments, but we should be expecting higher marginal costs and higher spot prices in the electricity market.

Speaker #2: Thank you, Pedro. Give us one minute to review the next question, please. Okay. So, our next question comes from José Pizarro from Bank of America.

Alicia Campos: Thank you, Pedro. Give us one minute that we review the next question, please. Okay, our next question comes from Jose Pizarro, from Bank of America. Could you share the breakdown of CapEx between maintenance and expansion growth initiatives in Q2 2026 and provide some color on whether maintenance CapEx is expected to remain at similar levels in H2 of the year? Alvaro.

Speaker #2: Could you share the breakdown of CAPEX between maintenance and expansion growth initiatives in the second quarter of 2026, and provide some color on whether maintenance CAPEX is expected to remain at similar levels in the second half of the year?

Speaker #2: Álvaro.

Speaker #3: Thank you for the questions. Our CAPEX budget for the year is around S/ 1.1 billion. Of that, S/ 74 million is for maintenance, and the rest is for growth and sustainability initiatives.

Álvaro Morales: Thank you for the questions. Our CapEx budget for the year is around PEN 1.1 billion. From that, PEN 74 million are for maintenance, and the rest is for growing and sustainability initiatives. CapEx for sustainability and growth.

Speaker #3: No, CAPEX for sustainability and growth.

Speaker #2: Thank you. Thank you, Álvaro.

Alicia Campos: Thank you. Thank you, Alvaro. I think, Kevin, I think we do not have any additional questions at the moment.

Alicia Campos: Thank you. Thank you, Álvaro. I think, Kevin, I think we do not have any additional questions at the moment.

Speaker #3: One second.

Speaker #2: I think, Kevin, we don't have any additional questions at the moment.

Speaker #1: Okay, so no further—yeah, so no further questions. I'd like to turn the floor back over. Do you have any further closing comments?

Operator: Okay. So no further questions. I was just going to flip back. Do you have any further closing comments?

Speaker #2: I think Pedro has closing comments. No?

Alicia Campos: I think Pedro has closing comments. No?

Speaker #3: Closing comments, sure. Well, thank you. Thank you, Kevin. Thank you very much. Thank you very much to all of you for your time this morning.

Pedro Lerner: Closing comments? Thank you, Kevin. Thank you very much. Thank you very much to all of you for your time this morning, and please do not hesitate to reach out to Alicia should you have any follow-up questions. Have a great day.

Speaker #3: And please do not hesitate to reach out to Alicia should you have any follow-up questions. Have a great day.

Speaker #1: Thank you. That does conclude today's teleconferencing webcast. Let me just connect your lines at this time, and have a wonderful day. We thank you for your participation today.

Operator: Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

Q2 2026 Unacemcorp SAA Earnings Call

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