UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 6‑K



REPORT OF FOREIGN PRIVATE ISSUER
 
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
 
For the month of June, 2021
 
Commission File Number: 001-38262


 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
(Exact Name of Registrant as Specified in its Charter)
 
LOMA NEGRA CORPORATION
(Translation of Registrant’s name into English)


 
Cecilia Grierson 355, 4th Floor
Zip Code C1107CPG – Capital Federal
Republic of Argentina
(Address of principal executive offices)


 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F  ☒   Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐
 

Table of Contents
 
Item
 
                                                      Description
1
 
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”).
 



SIGNATURES 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Loma Negra Compañía Industrial Argentina Sociedad Anónima
       
Date: June 8, 2021
By:
/s/ Marcos I. Gradin  
  Name: Marcos I. Gradin  
  Title: Chief Financial Officer  
       








Loma Negra Compañía Industrial
Argentina Sociedad Anónima


Consolidated condensed interim financial statements as of March 31, 2021 and for the three- month periods ended March 31, 2021 and 2020




Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020


CONTENTS

Unaudited consolidated condensed interim statement of profit or loss and other comprehensive income
Unaudited consolidated condensed interim statement of financial position
Unaudited consolidated condensed interim statement of changes in equity
Unaudited consolidated condensed interim statement of cash flows
Notes to the unaudited consolidated condensed interim financial statements:
1 Legal information
2 Basis of preparation
3 Critical accounting judgments and key sources used for estimating uncertainty
4 Sales revenues
5 Cost of sales
6 Selling and administrative expenses
7 Other net gains and losses
8 Tax on bank accounts debits and credits
9 Financial results, net
10 Income tax expense
11 Earnings per share
12 Property, plant and equipment
13 Inventories
14 Related party transactions and balances
15 Other receivables
16 Right of use of assets and lease liabilities
17 Trade accounts receivable
18 Investments
19 Capital stock and other capital related accounts
20 Accumulated other comprehensive income
21 Borrowings
22 Accounts payable
23 Provisions
24 Tax liabilities
25 Cash and cash equivalents
26 Financial instruments
27 Non-cash transactions
28 Segment information
29 Compromises
30 Sale of interest in Yguazú Cementos S.A. - Discontinued operations
31 Argentine economic context
32 Effects of COVID-19 on the Group
33 Officially stamped books
34 Subsequent events


Information Report



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)

         
Three months
 
   
Notes
     
03.31.2021
     
03.31.2020
 
                       
Revenues
   
4
     
13,175,464
     
9,734,301
 
Cost of sales
   
5
     
(8,399,819
)
   
(6,767,916
)
Gross profit
           
4,775,645
     
2,966,385
 
                         
Selling and administrative expenses
   
6
     
(1,079,001
)
   
(852,352
)
Other gains and losses
   
7
     
42,710
     
62,470
 
                         
Tax on bank accounts debits and credits
   
8
     
(125,074
)
   
(145,782
)
                         
FINANCIAL RESULTS, NET
                       
Exchange rate differences
   
9
     
21,037
     
(238,664
)
Gain on net monetary position
           
558,024
     
176,321
 
Financial income
   
9
     
41,873
     
23,139
 
Financial expenses
   
9
     
(479,524
)
   
(531,090
)
                         
Profit before tax
           
3,755,690
     
1,460,427
 
                         
INCOME TAX EXPENSE
                       
Current
   
10
     
(1,554,744
)
   
(364,026
)
Deferred
   
10
     
366,645
     
(96,700
)
                         
NET PROFIT FOR THE PERIOD FROM CONTINUED OPERATIONS
           
2,567,591
     
999,701
 
                         
DISCONTINING OPERATIONS
                       
Net profit for the period from discontinued operations
   
30
     
-
     
256,344
 
                         
NET PROFIT FOR THE PERIOD
           
2,567,591
     
1,256,045
 
                         
OTHER COMPREHENSIVE INCOME
                       
Other comprehensive loss that may be reclassified
to profit or loss in subsequent periods:
                       
Exchange differences on translation of foreign operations
           
-
     
(166,049
)
                         
TOTAL OTHER COMPREHENSIVE LOSS
           
-
     
(166,049
)
                         
TOTAL COMPREHENSIVE INCOME
           
2,567,591
     
1,089,996
 
                         
Net profit for the period attributable to:
                       
  Owners of the Company
           
2,600,615
     
1,222,894
 
  Non-controlling interests
           
(33,024
)
   
33,151
 
NET PROFIT FOR THE PERIOD
           
2,567,591
     
1,256,045
 
                         
Total comprehensive income attributable to:
                       
  Owners of the Company
           
2,600,615
     
1,138,208
 
  Non-controlling interests
           
(33,024
)
   
(48,212
)
TOTAL COMPREHENSIVE INCOME
           
2,567,591
     
1,089,996
 
                         
Earnings per share (basic and diluted) in Argentine pesos
                       
From continued operations
   
11
     
4.3658
     
1.8324
 
From discontinued operations
   
11
     
4.3658
     
2.0517
 
                         
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
 
 


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
1

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF MARCH 31, 2021 AND DECEMBER 31, 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


The accompanying notes are an integral part of these consolidated condensed interim financial statements.

   
Notes
     
03.31.2021
     
12.31.2020
 
ASSETS
                     
Non-current assets
                     
Property, plant and equipment
   
12
     
60,038,063
     
60,494,273
 
Right of use of assets
   
16
     
476,905
     
217,246
 
Intangible assets
           
197,661
     
3,932
 
Investments
   
18
     
3,932
     
39,214
 
Goodwill
           
39,214
     
2,435,439
 
Inventories
   
13
     
2,425,711
     
543,096
 
Other receivables
   
15
     
503,069
     
505,366
 
Total non-current assets
           
63,684,555
     
64,238,566
 
                         
Current assets
                       
Inventories
   
13
     
6,820,389
     
6,203,129
 
Other receivables
   
15
     
1,275,615
     
1,374,851
 
Trade accounts receivable
   
17
     
3,396,259
     
3,376,603
 
Investments
   
18
     
5,799,726
     
4,641,149
 
Cash and banks
           
248,010
     
301,161
 
Total current assets
           
17,539,999
     
15,896,893
 
Total assets
           
81,224,554
     
80,135,459
 

The accompanying notes are an integral part of these consolidated condensed interim financial statements.


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
2

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF MARCH 31, 2021 AND DECEMBER 31, 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


   
Notes
     
03.31.2021
     
12.31.2020
 
SHAREHOLDERS’ EQUITY AND LIABILITIES
                     
Capital stock and other capital related accounts
   
19
     
16,743,002
     
16,998,228
 
Reserves
           
21,144,148
     
21,144,148
 
Retained earnings
           
15,421,930
     
12,821,315
 
Equity attributable to the owners of the Company
           
53,309,080
     
50,963,691
 
Non-controlling interests
           
273,320
     
306,344
 
Total shareholders’ equity
           
53,582,400
     
51,270,035
 
                         
LIABILITIES
                       
Non-current liabilities
                       
Borrowings
   
21
     
624,652
     
2,111,749
 
Accounts payable
   
22
     
-
     
115,703
 
Provisions
   
23
     
537,031
     
550,607
 
Salaries and social security payables
           
72,090
     
43,224
 
Lease liabilities
   
16
     
409,154
     
440,974
 
Other liabilities
           
72,271
     
126,249
 
Deferred tax liabilities
   
10
     
7,851,929
     
8,218,574
 
Total non-current liabilities
           
9,567,127
     
11,607,080
 
                         
Current liabilities
                       
Borrowings
   
21
     
6,063,179
     
5,163,368
 
Accounts payable
   
22
     
5,201,358
     
6,091,569
 
Advances from customers
           
750,091
     
826,729
 
Salaries and social security payables
           
1,556,731
     
1,606,096
 
Tax liabilities
   
24
     
4,207,682
     
3,257,629
 
Lease liabilities
   
16
     
144,074
     
158,589
 
Other liabilities
           
151,912
     
154,364
 
Total current liabilities
           
18,075,027
     
17,258,344
 
Total liabilities
           
27,642,154
     
28,865,424
 
Total shareholders’ equity and liabilities
           
81,224,554
     
80,135,459
 

The accompanying notes are an integral part of these consolidated condensed interim financial statements.
 

 

Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
3

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF MARCH 31, 2021
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)
 

   
Owners contributions
                                           
   
Capital
   
Capital corresponding to treasury shares
   
Capital Adjustments
   
Capital adjustments of own shares
   
Share premium
   
Share premium for treasury shares
   
Merger premium
   
Cost of treasury shares
   
Legal reserve
   
Environmental reserve
   
Optional reserve
   
Retained earnings
   
Equity
attributable to
owners of the
Company
   
Non-controlling interests
   
Total
 
Balances as of January 1, 2021
   
59,603
     
-
     
5,367,956
     
-
     
9,800,327
     
-
     
1,770,342
     
-
     
1,085,512
     
8,473
     
20,050,163
     
12,821,315
     
50,963,691
     
306,344
     
51,270,035
 
                                                                                                                         
Purchase of treasury shares (Note 19)
   
(145
)
   
145
     
(13,037
)
   
13,037
     
(222,341
)
   
222,341
             
(255,226
)
                                   
(255,226
)
           
(255,226
)
                                                                                                                         
Income for the period
                                                                                           
2,600,615
     
2,600,615
     
(33,024
)
   
2,567,591
 
Balances as of March 31, 2021
   
59,458
     
145
     
5,354,919
     
13,037
     
9,577,986
     
222,341
     
1,770,342
     
(255,226
)
   
1,085,512
     
8,473
     
20,050,163
     
15,421,930
     
53,309,080
     
273,320
     
53,582,400
 


The accompanying notes are an integral part of these consolidated condensed interim financial statements.




Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
4

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES  IN SHAREHOLDERS’ EQUITY  AS OF MARCH 31, 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


                                                                               
   
Owners contributions
                           
     Accumulated other comprehensive income                          
   
Capital
   
Capital Adjustments
   
Share premium
   
Merger premium
   
Legal reserve
   
Environmental
reserve
   
Optional reserve
   
Future dividends reserve
   
Exchange differences on translation of foreign operations
gains / (losses)
   
Retained earnings
   
Equity
attributable to
owners of the
Company
   
Non-controlling interests
   
Total
 
Balances as of
January 1, 2020
   
59,603
     
5,367,956
     
9,800,327
     
1,770,342
     
889,146
     
8,473
     
17,289,495
     
71,264
     
507,789
     
5,903,702
     
41,668,097
     
3,430,311
     
45,098,408
 
                                                                                                         
Other comprehensive income
                                                                   
(84,686
)
           
(84,686
)
   
(81,363
)
   
(166,049
)
Income for the period
                                                                           
1,222,894
     
1,222,894
     
33,151
     
1,256,045
 
Balances as of
March 31, 2020
   
59,603
     
5,367,956
     
9,800,327
     
1,770,342
     
889,146
     
8,473
     
17,289,495
     
71,264
     
423,103
     
7,126,596
     
42,806,305
     
3,382,099
     
46,188,404
 



The accompanying notes are an integral part of these consolidated condensed interim financial statements.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
5

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS AS OF MARCH 30, 2021 AND 2020 (All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


             
     
03.31.2021
     
03.31.2020
 
CASH FLOWS FROM OPERATING ACTIVITIES
               
Net profit for the period from continuing operations
   
2,567,591
     
999,701
 
Net profit for the period from discontinued operations
   
-
     
256,344
 
Net profit for the period
   
2,567,591
     
1,256,045
 
Adjustments to reconcile net profit to net cash generated by operating activities
               
Income tax expense
   
1,188,099
     
486,859
 
Depreciation and amortization
   
966,732
     
968,456
 
Provisions
   
(872
)
   
76,641
 
Interest expense
   
112,003
     
470,561
 
Exchange rate differences
   
(151,232
)
   
(16,521
)
Interest income
   
(12,560
)
   
-
 
Income on disposal of property, plant and equipment
   
(19,612
)
   
9,227
 
Income from the operation of Yguazْ Cementos S.A. (Note 30)
   
-
     
(282,477
)
Allowance for contributions paid to the Trust Fund to Strengthen the Inter-urban Railroad System
   
12,929
     
-
 
Changes in operating assets and liabilities
               
Inventories
   
(523,683
)
   
(1,016,289
)
Other receivables
   
(272,417
)
   
(283,649
)
Trade accounts receivable
   
(402,005
)
   
187,306
 
Advances from customers
   
(22,007
)
   
45,948
 
Accounts payable
   
168,438
     
(715,655
)
Salaries and social security payables
   
164,361
     
(72,937
)
Provisions
   
(9,262
)
   
(79,338
)
Tax liabilities
   
113,893
     
(392,893
)
Other liabilities
   
(54,477
)
   
(12,081
)
Gain on net monetary position
   
(558,024
)
   
(176,323
)
Income tax paid
   
(339,028
)
   
(292,987
)
Net cash generated by operating activities
   
2,928,867
     
159,893
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
Proceeds from the operation of Yguazْ Cementos S.A. (Note 30)
   
94,170
     
-
 
Proceeds from disposal of property, plant and equipment
   
37,094
     
19,646
 
Payments to acquire property, plant and equipment
   
(1,059,268
)
   
(5,744,937
)
Payments to acquire intangibles assets
   
-
     
(3,523
)
Payments to acquire investments
   
(1,673,135
)
   
-
 
Contributions to F.F.F.S.F.I.
   
(19,979
)
   
(30,109
)
Net cash used in investing activities
   
(2,621,118
)
   
(5,758,923
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
Proceeds from borrowings
   
88,251
     
7,991,892
 
Interest paid
   
(176,614
)
   
(972,923
)
Lease liabilities
   
(38,653
)
   
(43,485
)
Repayment of borrowings
   
(316,344
)
   
(1,209,033
)
Purchase of treasury shares
   
(255,226
)
   
-
 
Net cash (used in) / generated by financing activities
   
(698,586
)
   
5,766,451
 
                 
Net (decrease) increase in cash and cash equivalents
   
(390,837
)
   
167,421
 
Cash and cash equivalents at the beginning of the period
   
4,942,310
     
2,005,532
 
Effect of restating in constant currency of cash and cash equivalents
   
(35,868
)
   
(58,162
)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
   
(153,564
)
   
807
 
Cash and cash equivalents at the end of the period
   
4,362,041
     
2,115,598
 

The accompanying notes are an integral part of these consolidated condensed interim financial statements.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
6

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)

 
1. LEGAL INFORMATION
 
Legal address:

Boulevard Cecilia Grierson 355, 4th Floor, City of Buenos Aires, Argentina.

Fiscal year number:

Fiscal year number 97, beginning January 1, 2021.

Principal business of the Company:

The Company and its subsidiaries, mentioned below, are referred to in these consolidated condensed interim financial statements as the “Group”.

The main activity of the Group is the manufacturing and selling of cement and its derivatives, as well as the exploration of mineral resources that are used in the production process.

Currently, the Group has 9 cement factories in Argentina, in the provinces of Buenos Aires, Neuquén, San Juan and Catamarca. The Company also has 9 concrete plants.

The Group, through its subsidiary Cofesur S.A.U., has a controlling interest in Ferrosur Roca S.A., a company operating the rail freight network of the Roca Railroad under a concession granted by the Argentine government in 1993 for a period of 30 years, which allows access from several of Loma Negra’s cement production plants to the rail network. On March 8, 2018 and with the due approval of its majority shareholder (Cofesur S.A.U.), Ferrosur Roca S.A. requested the Enforcement Authority an extension of the concession for an additional term of 10 years, pursuant to the provisions of the Bidding Terms and Conditions and the Concession Agreement. This requirement is now subject to the renegotiation and readjustment of the concession contract in order to mitigate the consequences that seriously affect the company´s business and alter the balance of the concession contract. As of the date of issuance of these consolidated condensed interim financial statements, Ferrosur Roca S.A. has not yet been called to initiate the renegotiation process, together with the Special Commission for Contract Renegotiation.  The Group considers the extended concession period for the purposes of all required assessments and accounting estimates, especially those related to the recoverability of certain non-current assets affected by the concession

The Group also has a controlling interest in Recycomb S.A.U., a company engaged in the treatment and recycling of industrial waste intended to be used as fuel or raw material, and a controlling interest in Yguazْ Cementos S.A., a company organized in Paraguay engaged in the manufacturing and marketing of cement.

Finally, on August 21, 2020, the Company sold its stake in Yguazْ Cementos S.A., a company incorporated in the Republic of Paraguay dedicated to the manufacture and sale of cement. The information related to the sale of the participation and its main effects are described in Note 30.

Date of registration in the Argentine General Inspection of Justice (IGJ):

-
Registration of the bylaws: August 5th, 1926, under No 38, Book 46.
 
-
Last amendment registered to the bylaws: August 29th, 2017, under No. 17,557 Book 85 of Companies by shares.
 
-
Correlative Number of Registration with the IGJ: 1,914,357.
 
-
Tax identification number [CUIT]: 30-50053085-1.
 
-
Date of expiration: July 3, 2116.

The Ordinary and Extraordinary General Assembly of April 16, 2020 resolved to modify article fourteen of the Bylaws, in order to incorporate the power of the Company's Board of Directors to decide on the issuance of negotiable obligations, in accordance with the provisions of article 9 of the Negotiable Obligations Law No. 23,576 and its amendments. As of the date of issuance of these condensed consolidated interim financial statements, said modifications are pending registration with the General Inspection of Justice (“IGJ”).



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
7

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


Parent company:

InterCement Trading e Inversiones Argentina S.L. with 51.0437% of the Company’s capital stock and votes.

Capital structure:
 
The subscribed for and paid in capital amounts to $ 59,602,649, represented by 596,026,490 book-entry common shares with a nominal value of $ 0.10 each, and each entitling to one vote (Note 19).
 
 
2. BASIS OF PREPARATION
 
2.1 Basis of preparation
 
The accompanying consolidated condensed interim statement of financial position as of March 31, 2021, the consolidated condensed interim statement of profit or loss and other comprehensive income, consolidated condensed interim statement of changes in equity and of cash flows for the three-month periods ended March 31, 2021 and 2020 and the notes to the consolidated condensed interim financial statements (hereinafter, the “interim financial statements”) are unaudited and have been prepared as interim financial information. These interim financial statements are prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, pursuant to the provisions in Technical Resolution No. 26 (as amended) issued by the Argentine Federation of Professional Councils of Economic Sciences [FACPCE] and the Regulations issued by the Argentine Securities Commission [“Comisiَn Nacional de Valores” (CNV)].
 
Consequently, not all of the disclosures required in accordance with International Financial Reporting Standards (“IFRS”) for annual financial statements are included herein, hence, these interim financial statements shall be read in conjunction with the Group’s consolidated financial statements for the fiscal years ended December 31, 2020 and 2019 issued on March 10, 2021. In the opinion of the Group’s Management, these unaudited consolidated condensed interim financial statements include all normal recurring adjustments, which are necessary for a fair representation of financial results for the interim periods presented.
 
The financial information as of December 31, 2020 presented in these unaudited consolidated condensed interim financial statements arises from our audited consolidated financial statements for the fiscal year ended December 31, 2020, restated in closing currency of the reported period, following the guidelines in IAS 29. Such guidelines have been described in Note 2.2 to our consolidated financial statements as of December 31, 2020.
 
The results of operations for the three-month periods ended March 31, 2021 and 2020 do not necessarily reflect the results for the full years. The Company believes that the disclosures are appropriate and adequate to consider that the information presented is not misleading.
 
As a consequence of the pandemic caused by the COVID-19 virus, which has caused global economic disruption, the Group has implemented active prevention programs in its different locations and contingent plans to minimize the risk related to the pandemic and continue with its operations; being the main measures and effects described in Note 32 to these interim consolidated financial statements. The Group's Management has considered the impact of COVID-19, and the current conditions of the economy and the market, for the preparation of the interim financial information, concluding that there are no changes in judgments and significant estimates disclosed in the consolidated financial statements as of December 31, 2020.
 
Due to the sale of the shareholding in Yguazْ Cementos SA, described in Note 30, the results of the aforementioned business are presented as discontinued operations in accordance with the provisions of IFRS 5 "Non-current assets held for sale and discontinued operations". Consequently, all amounts related to discontinued operations within each item of the consolidated statement of comprehensive income are reclassified as discontinued operations. The cash flows from discontinued operations and earnings per share disclosed separately in Note 30, as well as additional information related to the operation carried out.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
8

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)
 

These consolidated condensed interim financial statements were approved for issue by the Board of Directors on May 12, 2021, the date when the interim financial statements were available for issuance.

2.2 Basis of consolidation
 
These interim financial statements include the unaudited consolidated condensed interim statement of financial position, results of operations and cash flows of the Company and its consolidated subsidiaries. The basis of consolidation and the subsidiaries are the same as for the Company’s audited consolidated financial statements for the year ended December 31, 2020, issued on March 10, 2021.
 
On August 21, 2020, the Group sold its stake in Yguazْ Cementos S.A., losing its control. For this reason, the information for the three-month periods ended March 31, 2021, related to said company is presented as discontinued operations (Note 30).
 
The consolidated information disclosed in these condensed interim financial statements include the following subsidiaries:

   Main business    Country     % of direct and indirect ownership as of        
 
           
03.31.21
     
12.31.20
     
03.31.12
 
Subsidiary name:
                             
Cofesur S.A.U.
Investment
 
Argentina
   
100.00
     
100.00
     
100.00
 
Ferrosur Roca S.A. (1)
Rail freight transportation
 
Argentina
   
80.00
     
80.00
     
80.00
 
Recycomb S.A.U.
Waste recycling
 
Argentina
   
100.00
     
100.00
     
100.00
 
 
(1) Directly controlled by Cofesur S.A.U.
                           

Below is a summary of the financial information of Ferrosur Roca S.A., a subsidiary with material non-controlling interests.


     
03.31.2021
     
12.31.2020
 
                 
Current assets
   
1,178,390
     
1,097,602
 
Non-current assets
   
1,617,373
     
1,794,019
 
Current liabilities
   
1,078,174
     
993,033
 
Non-current liabilities
   
350,986
     
366,865
 
Equity attributable to the owners of the company
   
1,093,283
     
1,225,378
 
Non-controlling interests
   
273,320
     
306,344
 

     
03.31.2021
     
03.31.2020
 
Three-month period
               
Sales revenues
   
952,186
     
1,090,366
 
Financial results, net
   
20,540
     
(156,568
)
Depreciations
   
(188,757
)
   
(247,308
)
Income tax
   
(9,862
)
   
(43,738
)
Loss for the period (*)
   
(165,119
)
   
(462,274
)
(*) The net loss as of March 31, 2021 includes a gain of 5,145 from eliminations of intragroup transactions.
 
   
     
03.31.2021
     
03.31.2020
 
Three-month period
               
Net cash generated by operating activities
   
78,000
     
754,467
 
Net cash used in investing activities
   
(47,260
)
   
(124,002
)
Net cash used in financing activities
   
(18,186
)
   
(625,359
)
Financial and holding results generated by cash
   
(3,088
)
   
(6,148
)



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
9

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


2.3 Accounting policies
 
These consolidated condensed interim financial statements have been prepared using the same accounting policies and criteria used in the preparation of the audited consolidated financial statements for the year ended December 31, 2020, except for the adoption of new standards and interpretations effective as of January 1, 2021, if any.


2.3.1 Application of new and revised International Financial Reporting Standards (IFRS)

Adoption of new and revised IFRS

The Group has adopted all of the new and revised standards and interpretations issued by the International Accounting Standards Board (“IASB”) that are relevant to its operations and that are mandatorily effective as of March 31, 2021, as described in Note 2.2 to the Group's annual consolidated financial statements as of December 31, 2020. 

The Group has not opted for early adoption of any other standard, interpretation or amendment that has been issued but is not yet in force.

New standards

New standards and interpretations issued during the three-month period ended March 31, 2021 and the standards and interpretations issued but not mandatory as of that date are described in Note 2.2 to the consolidated financial statements as of December 31, 2020.

 
3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES USED FOR ESTIMATING UNCERTAINTY
 
In the application of the Group´s accounting policies, the Group´s management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.

In the ordinary course of its business, the Group selects tax criteria and accounting positions based on a reasonable interpretation of current regulations, also taking into account the opinion of its tax and legal advisors together with the evidence available up to the date of issue of these financial statements. However, there may be situations in which the assessment that a third party could make of them and the eventual realization of damage to the Group is uncertain. For such cases, the Group has evaluated the issues considering their significance in relation to the financial statements and has not made a provision as it is not required by current accounting standards.

Underlying estimates and assumptions are continuously reviewed. Changes in estimates are accounted for prospectively.

The unaudited consolidated condensed interim financial statements reflect all adjustments which are, in the opinion of Management, necessary to make a fair statement of the results for the interim periods presented.

There are no significant changes to the critical judgements used by Management in applying accounting policies to the critical judgements disclosed in the annual consolidated financial statements for the year ended December 31, 2019.

As a consequence of the activities in which the Group is engaged, its transactions do not have a significant cyclical or seasonal character. Nevertheless, during the second half of the year, the volume of sales in Argentina has historically showed a slight increase.


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
10


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


4. REVENUES
 
     
03.31.2021
     
03.31.2020
 
Three-month period
               
Sales of goods
   
17,883,799
     
12,347,181
 
Domestic market
   
17,875,243
     
12,334,494
 
External customers
   
8,556
     
12,687
 
                 
Services rendered
   
528,044
     
702,813
 
                 
(-) Bonus / Discounts
   
(5,236,379
)
   
(3,315,693
)
Total
   
13,175,464
     
9,734,301
 

5. COST OF SALES
 
           
03.31.2021
           
03.31.2020
 
Three-month period
                           
Inventories at the beginning of the year
         
8,638,568
           
9,859,073
 
Finished products
   
532,059
             
694,423
         
Products in progress
   
1,016,533
             
2,168,324
         
Raw materials, materials, fuel and spare parts
   
7,089,976
             
6,996,326
         
                                 
Purchases and production expenses for the period
           
9,007,351
             
7,772,967
 
                                 
Inventories at the end of the period
           
(9,246,100
)
           
(10,864,124
)
Finished products
   
(572,292
)
           
(617,812
)
       
Products in progress
   
(1,404,847
)
           
(3,068,746
)
       
Raw materials, materials, fuel and spare parts
   
(7,268,961
)
           
(7,177,566
)
       
                                 
Cost of sales
           
8,399,819
             
6,767,916
 




Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
11

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


The detail of production expenses is as follows:
     
03.31.2021
     
03.31.2020
 
Three-month period
               
Fees and service fees
   
179,560
     
151,756
 
Salaries, wages and social security contributions
   
1,421,286
     
1,433,084
 
Transport and travelling expenses
   
58,812
     
52,386
 
Data processing
   
4,412
     
5,571
 
Taxes, contributions and commissions
   
182,840
     
137,221
 
Depreciation and amortizations
   
986,142
     
1,007,165
 
Preservation and maintenance costs
   
1,165,720
     
806,390
 
Communications
   
10,394
     
10,074
 
Leases
   
9,567
     
12,304
 
Employee benefits
   
36,141
     
25,147
 
Water, natural gas and energy services
   
1,751
     
2,448
 
Freight
   
878,959
     
456,275
 
Fuel
   
960,489
     
1,189,000
 
Insurance
   
26,114
     
21,103
 
Packaging
   
396,785
     
283,899
 
Electrical power
   
862,926
     
804,882
 
Contractors
   
672,845
     
628,650
 
Tolls
   
3,385
     
889
 
Canon (concession fee)
   
8,582
     
8,236
 
Security
   
40,281
     
49,668
 
Others
   
118,604
     
131,613
 
Total
   
8,025,595
     
7,217,761
 

6. SELLING AND ADMINISTRATIVE EXPENSES
 
     
03.31.2021
     
03.21.2020
 
Three-month period
               
Managers and directors compensation and fees
   
68,610
     
53,427
 
Fees and compensation for services
   
88,197
     
88,689
 
Salaries, wages and social security contributions
   
276,448
     
200,582
 
Transport and travelling expenses
   
7,764
     
9,780
 
Data processing
   
34,829
     
18,399
 
Advertising expenses
   
23,845
     
16,276
 
Taxes, contributions and commissions
   
276,492
     
213,297
 
Depreciation and amortizations
   
64,774
     
86,196
 
Preservation and maintenance costs
   
5,552
     
5,513
 
Communications
   
8,932
     
9,516
 
Leases
   
1,836
     
1,637
 
Employee benefits
   
7,146
     
6,786
 
Water, natural gas and energy services
   
734
     
1,004
 
Freight
   
169,821
     
94,640
 
Insurance
   
24,619
     
22,233
 
Allowance for doubtful accounts
   
-
     
5,714
 
Security
   
2,280
     
2,359
 
Others
   
17,122
     
16,304
 
Total
   
1,079,001
     
852,352
 
                 
 

Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
12

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


7. OTHER GAINS AND LOSSES
 
     
03.31.2021
     
03.31.2020
 
Three-month period
               
Loss (gain)on disposal of property, plant and equipment
   
19,612
     
(9,227
)
Donations
   
(5,000
)
   
(6,164
)
Technical assistance services provided
   
2,070
     
2,228
 
Gain on tax credit acquired
   
4,781
     
-
 
Contingencies
   
(11,137
)
   
(4,538
)
Leases
   
30,355
     
55,033
 
Collection of sinester´s insurance
   
-
     
17,825
 
Miscellaneous
   
2,029
     
7,313
 
Total
   
42,710
     
62,470
 
 
8. TAX ON BANK ACCOUNTS DEBITS AND CREDITS
 
The general tax rate on bank debits and credits is 0.6% for the amounts debited and credited in the bank accounts of the Group. For the amounts debited and credited, 33% of both items may be taken as payment on account of other taxes. The 67% of the tax paid is included in this line item in the statement of profit or loss and other comprehensive income.
 
Pursuant to Law No. 27,432, the Argentine Executive Branch may set forth that the percentage of the tax mentioned that is not computable as payment on account of income tax should be progressively written down by up to 20% per year as from January 1, 2018. It can be established that in 2022 the tax set forth in Law No. 25,413, as subsequently amended, shall be fully computed as payment on account of income tax. On May 7, 2018, Decree 409/2018 was published in the Official Gazette; it established that taxpayers within the scope of the general twelve per thousand tax may apply 33% of the amounts credited and debited in the respective bank accounts to partial payment of income tax.

9. FINANCIAL RESULTS, NET
 
     
03.31.2021
     
03.31.2020
 
Three-month period
               
Exchange rate differences
               
Foreign exchange gains
   
65,698
     
-
 
Foreign exchange losses
   
(44,661
)
   
(238,664
)
Total
   
21,037
     
(238,664
)
                 
Financial income
               
Unwinding of discounts on provisions and liabilities
   
41,874
     
23,139
 
Total
   
41,874
     
23,139
 
                 
Financial expenses
               
Interest from short-term investments
   
(261,631
)
   
(18,165
)
Interest on borrowings
   
(99,431
)
   
(318,936
)
Interest on leases
   
(12,572
)
   
(16,301
)
Tax interest
   
(2,705
)
   
(28,151
)
Unwinding of discounts on receivables
   
(23,063
)
   
(15,369
)
Others
   
(80,123
)
   
(134,168
)
Total
   
(479,525
)
   
(531,090
)



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
13


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


10. INCOME TAX EXPENSE
 

Income tax expense is recognized on the basis of the actual profit for the period and the statutory rate expected at year-end.

This criterion does not significantly differ from the criterion established in IAS 34, which requires income tax expense to be recognized in each interim period based on the best estimate of the effective tax rate expected as of year-end.

The reconciliation of income tax expense for the three-month periods ended March 31, 2021 and 2020 and that which would result from applying the statutory rate in force on the net profit before income tax expense that arises from the condensed interim statement of profit or loss and other comprehensive income for each period is as follows:


     
03.31.2021
     
03.31.2020
 
                 
Profit before income tax expense from continued operations
   
3,755,690
     
1,460,427
 
Profit before income tax expense from discontinued operations
   
-
     
282,477
 
Total profit before income tax expense
   
3,755,690
     
1,742,904
 
Statutory income tax rate
   
30
%
   
30
%
Income tax at statutory rate
   
(1,126,707
)
   
(522,871
)
Adjustments for calculation of the effective income tax:
               
Effects of disposal of shareholding of Yguazْ Cementos S.A.
   
-
     
56,495
 
Non-recognized loss carryforwards in subsidiaries
   
-
     
(97,888
)
Effects of the fiscal revaluation and adjustment to reflect inflation for accounting and tax purposes
   
113,391
     
300,689
 
Effect of change in tax rate
   
(160,990
)
   
(229,518
)
Other non-taxable income or non-deductible expense, net
   
(13,793
)
   
6,234
 
Total income tax expense
   
(1,188,099
)
   
(486,859
)
INCOME TAX
               
Current
   
(1,554,744
)
   
(384,694
)
Deferred
   
366,645
     
(102,165
)
Total
   
(1,188,099
)
   
(486,859
)

Income tax included in the statement of comprehensive income
(1.188.099)
 
(460.726)
Income tax from discontinued operations
-
 
(26.133)

Likewise, the breakdown of deferred income as of March 31, 2021 and December 31, 2019 is as follows:

     
03.31.2021
     
12.31.2020
 
Deferred tax assets
               
Loss carryforward from subsidiary
   
144,416
     
161,788
 
Leases
   
25,166
     
27,881
 
Provisions
   
58,811
     
61,087
 
Other receivables
   
28,896
     
33,108
 
Accounts payable
   
4,621
     
-
 
Salaries and social security payables
   
18,022
     
10,806
 
Other liabilities
   
24,129
     
25,604
 
Trade accounts receivable
   
14,597
     
19,321
 
Others
   
1,607
     
7,060
 
Total deferred tax assets
   
320,265
     
346,655
 
                 


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
14

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


             
Deferred tax liabilities
           
Investments
   
(38,620
)
   
(26,412
)
Property, plant and equipment
   
(6,164,717
)
   
(6,047,430
)
Inventories
   
(892,240
)
   
(854,621
)
Taxes payable (adjustment to reflect inflation for tax purposes)
   
(1,075,698
)
   
(1,633,097
)
Others
   
(919
)
   
(3,669
)
Total deferred tax liabilities
   
(8,172,194
)
   
(8,565,229
)
Total net deferred tax liabilities
   
(7,851,929
)
   
(8,218,574
)

11. EARNINGS PER SHARE
 
Basic and diluted earnings per share

The earnings and the weighted average number of common shares used in the calculation of basic and diluted earnings per share are as follows:

   
Three months
 
     
03.31.2021
     
03.31.2020
 
 
Profit attributable to the owners of the parent company used in the calculation of earnings per share – basic and diluted
               
- From continued operations
   
2,600,615
     
1,092,154
 
- From continued and discontinued operations
   
2,600,615
     
1,222,894
 
                 
Weighted average number of common shares for purposes of basic and diluted earnings per share (in thousands)
   
595,684
     
596,026
 
                 
Basic and diluted earnings per share (in pesos)
               
- From continued operations
   
43658
     
1.8324
 
- From continued and discontinued operations
   
4.3658
     
2.0517
 

12. PROPERTY, PLANT AND EQUIPMENT
 
     
03.31.2021
     
12.31.2020
 
                 
Cost
   
138,567,317
     
138,049,682
 
Accumulated depreciation
   
(78,529,254
)
   
(77,555,409
)
Total
   
60,038,063
     
60,494,273
 
                 
Land
   
767,260
     
767,260
 
Plant and buildings
   
10,718,820
     
10,938,776
 
Machinery, equipment and spare parts
   
14,038,571
     
14,302,128
 
Transport and load vehicles
   
1,350,317
     
1,430,648
 
Furniture and fixtures
   
54,935
     
58,363
 
Quarries
   
4,498,147
     
4,565,936
 
Tools
   
55,540
     
60,859
 
Construction in progress
   
28,554,473
     
28,370,303
 
Total
   
60,038,063
     
60,494,273
 
During the three-month period ended on March 31, 2021, the construction of the new cement plant L´Amalي II, in the City of Olavarrيa, Province of Buenos Aires, continues with the construction works, under stringent health protocols established by the Provincial Government and the Group. As of March 31, 2021, the amount invested in such plant totaled 27.043.056.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
15

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


12.1 Borrowing costs
 
The Group has taken several borrowings and has used instruments to pay accounts payable in foreign currency in order to fund a part of the investment mentioned above. IAS 23 sets forth that borrowing costs or other liabilities that are directly attributable to the acquisition, construction or production of an eligible asset that requires a substantial period before being ready for use, are capitalized as part of the cost of said asset, except for the portion of these costs that compensate the creditor for the effects of inflation, always provided that they may result in future economic benefits for the Group and may be measured on a reliable basis. All other borrowing costs are accounted for as expenses in the period in which they are incurred. Borrowing costs include interest, foreign exchange losses and other costs incurred by the Group in connection with the execution of the respective borrowing agreements.
 
Due to the fact that the aforementioned indebtedness of the Group is mostly in foreign currency , it evaluates at each closing date whether the exchange gain or loss arising from such debts attributable to the construction of such asset constitutes an adjustment of the interest costs of those borrowings that should be capitalized together with those interests.. Based on the foregoing, the Group has not capitalized interest and foreign exchange losses during the three-month period ended March 31, 2021, the figures corresponds to the amount that would have corresponded to a rate equivalent in pesos net of the effects of inflation on the liabilities that generate them.
 
13. INVENTORIES
 
     
03.31.2021
     
12.31.2020
 
Non-current
               
Spare parts
   
2,513,371
     
2,520,749
 
Allowance for obsolete inventories
   
(87,660
)
   
(85,310
)
Total
   
2,425,711
     
2,435,439
 
                 
Current
               
Finished products
   
572,292
     
532,059
 
Production in progress
   
1,404,847
     
1,016,533
 
Raw materials, materials and spare parts
   
4,148,245
     
3,964,380
 
Fuels
   
695,005
     
690,157
 
Total
   
6,820,389
     
6,203,129
 
 
14. RELATED PARTY TRANSACTIONS AND BALANCES
 
The outstanding balances between the Group and related parties as of March 31, 2021 and December 31, 2020 are as follows:

     
03.31.2021
     
12.31.2020
 
Related companies:
               
InterCement Brasil S.A.
               
  Accounts payable
   
(91,910
)
   
(99,520
)
InterCement Trading e Inversiones S.A.
               
  Other receivables
   
228,909
     
240,143
 
  Accounts payable
   
(20,085
)
   
(21,749
)
Intercement Participaçُes S.A.
               
  Other receivables
   
78,305
     
51,997
 
  Accounts payable
   
(175,241
)
   
(202,387
)


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
16

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


                 
Summary of balances as of March 31, 2021 and December 31, 2020 is as follows:
 
     
03.31.2021
     
12.31.2020
 
Other receivables
   
307,214
     
292,140
 
Accounts payable
   
(287,236
)
   
(323,656
)
                 

The transactions between the Group and related parties for the periods ended March 31, 2021 and 2020 are detailed as follows:

     
03.31.2021
     
03.31.2020
 
                 
InterCement Brasil S.A. – Purchases of goods and services
   
-
     
(87
)
InterCement Trading e Inversiones S.A. – Sales of services
   
-
     
20,268
 
InterCement Portugal S.A. – Services received
   
-
     
(92,285
)
InterCement Participaçُes S.A. – Services received
   
(130,795
)
   
(21,916
)
InterCement Participaçُes S.A. – Sales of services
   
28,329
     
-
 

The amount recognized in the consolidated statement of profit or loss and other comprehensive income related to key management salaries, wages and fees amounted to 50,218 and 35,191 for the three-month periods ended March 31, 2021 and 2020, respectively. Additionally a loss has been accrued under the long-term incentive program for a total of 31,210 and 18,907 during the three-month periods ended March 31, 2021 and 2020, respectively.

The Group did not recognize any expense in the current period, or in previous ones, regarding bad or doubtful accounts related to amounts owed by related parties.

The outstanding amounts as of March 31, 2021 are not secured and will be settled in cash. No guarantees have been granted or received on the outstanding balances.

15. OTHER RECEIVABLES
 
     
03.31.2021
     
12.31.2020
 
Non-current
               
Advances to suppliers
   
390,303
     
350,512
 
Credit for sale of interest in Yguazْ Cementos S.A.
   
-
     
47,499
 
Tax credits
   
44,408
     
43,287
 
Contributions to the Trust Fund to Strengthen the Inter-urban Railroad System (F.F.F.S.F.I.)
   
144,713
     
148,854
 
Prepaid expenses
   
66,992
     
92,261
 
Guarantee deposits
   
1,366
     
1,544
 
Others
   
-
     
7,993
 
Subtotal
   
647,782
     
691,950
 
Allowance for doubtful receivables
   
(144,713
)
   
(148,854
)
Total
   
503,069
     
543,096
 
                 



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
17

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


                 
     
03.31.2021
     
12.31.2020
 
Current
               
Value added tax credits
   
1,645
     
-
 
Turnover tax credits
   
73,953
     
130,576
 
Other tax credits
   
3,154
     
-
 
Credit for sale of interest in Yguazْ Cementos S.A.
   
551,978
     
617,489
 
Related parties receivables (Note 14)
   
307,214
     
292,140
 
Prepaid expenses
   
220,895
     
205,330
 
Guarantee deposits
   
184
     
208
 
Reimbursements receivable
   
31,021
     
35,902
 
Advances to suppliers
   
26,443
     
26,241
 
Salaries advances and loans to employees
   
7,266
     
1,381
 
Receivables from sales of property, plant and equipment
   
15,872
     
31,608
 
Miscellaneous
   
35,990
     
33,976
 
Total
   
1,275,615
     
1,374,851
 

16. RIGHT OF USE OF ASSETS AND LEASE LIABILITIES
 
The Group has entered into lease agreements primarily for the lease of offices and premises. The evolution of the right of use of assets and lease liabilities as of March 31, 2021 and December 31, 2020 is as follows:

     
03.31.2021
     
12.31.2020
 
                 
Lease liabilities:
               
At the beginning of the period/year
   
599,563
     
679,448
 
Additions
   
2,530
     
5,258
 
interest accrued in the period/year
   
12,572
     
56,474
 
Foreign exchange losses
   
(22,784
)
   
24,549
 
Payments
   
(38,653
)
   
(166,166
)
At the end of the period/year
   
553,228
     
599,563
 

             
At the beginning of the period/year
   
505,366
     
627,322
 
Additions
   
2,530
     
5,258
 
Depreciations
   
(30,991
)
   
(127,214
)
At the end of the period/year
   
476,905
     
505,366
 

17. TRADE ACCOUNTS RECEIVABLE
 
     
03.31.2021
     
12.31.2020
 
                 
Accounts receivable
   
3,376,404
     
3,294,948
 
Accounts receivable in litigation
   
56,770
     
64,124
 
Notes receivable
   
11,820
     
18,926
 
Foreign customers
   
14,068
     
75,373
 
Subtotal
   
3,459,062
     
3,453,371
 
Allowance for doubtful accounts
   
(62,803
)
   
(76,768
)
Total
   
3,396,259
     
3,376,603
 



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
18


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


18. INVESTMENTS
 
     
03.31.2021
     
12.31.2020
 
Non-current
               
Investments in other companies
               
- Cementos del Plata S.A.
   
3.932
     
3.932
 
Total
   
3.932
     
3.932
 
                 
Current
               
Short-term investments
               
- Mutual funds in pesos
   
2,106,885
     
2,673,252
 
- Fix-term deposits in pesos
   
2,007,146
     
1,967,897
 
Public securities in pesos
   
1,685,695
     
-
 
Total
   
5,799,726
     
4,641,149
 
                 
 
19. CAPITAL STOCK AND OTHER CAPITAL RELATED ACCOUNTS
 
     
03.31.2021
     
12.31.2020
 
                 
Capital
   
59,603
     
59,603
 
Adjustment to capital
   
5,367,956
     
5,367,956
 
Cost of treasury stock
   
(255,226
)
   
-
 
Share premium
   
9,800,327
     
9,800,327
 
Merger premium
   
1,770,342
     
1,770,342
 
Total
   
16,743,002
     
16,998,228
 

The issued, paid-in and registered capital, consists of:
           
Common stock with a face value of $ 0.1 per share
and entitled to 1 vote each, fully paid-in (in thousand)
   
596,026
     
596,026
 

Acquisition of Treasury Stock

On February 12, 2021, the Board of Directors of the Company approved a plan for the acquisition of treasury stock, for a period of 90 days and a maximum amount of 750 million. Acquisitions will be carried out in accordance with the market opportunities, dates, prices and quantities established by the Company’s Management.

The purpose of the approved repurchase plan is to efficiently dispose of a portion of the Company’s liquidity, which may result in a greater return of value to the shareholders considering the current attractive value of the share.

The maximum amount to be invested is up to 750 million or the lowest amount resulting from the acquisition to reach 10% of the capital stock. Treasury stock may not, on the whole, exceed the limit of 10% of the capital stock in accordance with Article 64 of the Capital Market Law. Such acquisition shall be made with realized and liquid profits, since the Company has the necessary liquidity to carry out the approved acquisition of treasury stock without affecting its solvency.

Until the date of issuance of these financial statements, the Company acquired 2,644,608 treasury shares for a total value of 475,945.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
19

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)
 

20. ACCUMULATED OTHER COMPREHENSIVE INCOME
 
     
03.31.2021
     
03.31.2020
 
Accrual for translation of foreign operations
               
Balance at the beginning of the year
   
-
     
507,789
 
Exchange differences on translating foreign operations
   
-
     
(84,686
)
Balance at the end of the year
   
-
     
423,103
 
 
21. BORROWINGS
 
21.1 Composition of borrowings
 
 
03.31.2021
       
12.31.2020
 
 
Company
 
Interest rate
 
Maturity date
 
Amount
   
Amount
 
Borrowings in foreign currency – USD
                             
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Mar-21
   
-
     
245,979
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Apr-21
   
276,462
     
288,648
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
May-21
   
767,640
     
801,648
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Jun-21
   
184,543
     
192,677
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Jul-21
   
45,446
     
47,449
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Aug-21
   
964,131
     
1,006,629
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Sep-21
   
152,870
     
159,609
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Oct-21
   
313,821
     
327,654
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Nov-21
   
402,485
     
420,237
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Dec-21
   
284,292
     
296,823
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
 
6 Month-Libor + 4.25%
 
Jan-22
   
81,333
     
84,917
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A
 
6 Month-Libor + 4.25%
 
Feb-22
   
42,582
     
44,459
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A
 
6 Month Libor + 7,375%
 
Jan-22
   
643,144
     
677,848
 
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A
 
6 Month Libor + 7,375%
 
Jan-22
   
582,880
     
614,333
 
Industrial and Commercial Bank of China (Dubai)
Loma Negra C.I.A.S.A.
 
3-Month Libor + 7,5%
 
Nov-23
   
718,654
     
741,412
 
                                   
Borrowings in foreign currency – EUR
                                 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
Apr-21
   
147,217
     
157,614
 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
May-21
   
35,123
     
37,602
 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
Jun-21
   
186,628
     
199,791
 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
Jul-21
   
462,767
     
507,040
 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
Aug-21
   
40,914
     
44,831
 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
Sep-21
   
18,915
     
2,132
 
Banco Itaْ S.A.
Loma Negra C.I.A.S.A.
     
4
%
Oct-21
   
300,396
     
340,197
 
Total borrowings in foreign currency
                     
6,652,243
     
7,239,529
 
 
03.31.2021
       
12.31.2020
 
 
Company
 
Interest rate
 
Maturity date
 
Amount
   
Amount
 
Borrowings in local currency
                                 
Overdrafts
Loma Negra C.I.A.S.A.
     
45
%
Apr-21
   
33,807
     
19,958
 
Overdrafts
Ferrosur Roca S.A.
     
45
%
Apr-21
   
1,203
     
15,630
 
Overdrafts
Loma Negra C.I.A.S.A.
     
45
%
Apr-21
   
578
     
-
 
Total borrowings in local currency
                     
35,588
     
35,588
 
Total
                     
6,687,831
     
7,275,117
 



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
20

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


Summary of borrowings by Company:
   
03.31.2021
     
12.31.2020
 
                 
Loma Negra C.I.A.S.A.
   
6,686,050
     
7,259,487
 
Ferrosur Roca S.A.
   
1,203
     
15,630
 
Recycomb S.A.U.
   
578
     
-
 
Total
   
6,687,831
     
7,275,117
 

21.3 Movements of borrowings
 
The movements of borrowings for the three-month period ended March 31, 2021 are as disclosed below:
       
Balances as of January 1, 2021
   
7,275,117
 
New borrowings
   
88,251
 
Interest accrued
   
99,431
 
Effect of exchange rate differences
   
(282,010
)
Interest payments
   
(176,614
)
Principal payments
   
(316,344
)
Balances as of March 31, 2021
   
6,687,831
 

As of March 31, 2021, the long-term borrowings have the following maturity schedule:

Fiscal year
     
2022
   
267,563
 
2023
   
357,089
 
Total
   
624,652
 
         
 
22. ACCOUNTS PAYABLE
 
     
03.31.2021
     
12.31.2020
 
Non-current
               
Accounts payable for investments in property, plant and equipment
   
-
     
115,703
 
Total
   
-
     
115,703
 
                 
Current
               
Suppliers
   
3,057,120
     
3,617,157
 
Related parties (Note 14)
   
287,236
     
323,656
 
Accounts payable for investments in property, plant and equipment and intangible assets
   
735,673
     
1,198,860
 
Expenses accrual
   
1,121,329
     
951,896
 
Total
   
5,201,358
     
6,091,569
 

23. PROVISIONS
 
     
03.31.2021
     
12.31.2020
 
                 
Labor and social security
   
108,498
     
113,039
 
Environmental restoration
   
324,692
     
327,671
 
Civil and others
   
103,841
     
109,897
 
Total
   
537,031
     
550,607
 


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
21

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


Changes in the provisions were as follows:

   
Labor and social security
   
Environmental restoration
   
Civil and others
   
Total
 
                         
Balances as of January 1, 2021
   
113,039
     
327,671
     
109,897
     
550,607
 
Increases (*)
   
(3,249
)
   
(2,979
)
   
(2,944
)
   
(9,172
)
Uses (**)
   
(1,292
)
   
-
     
(3,112
)
   
(4,404
)
Balances as of March 31, 2021
   
108,498
     
324,692
     
103,841
     
537,031
 

(*) Includes the effect of the inflation adjustment.
(**) Includes the application of provisions to their specific purposes.
 
24. TAX LIABILITIES
 
     
03.31.2021
     
12.31.2020
 
                 
Income tax
   
3,441,413
     
2,558,293
 
Value added tax
   
540,643
     
460,524
 
Turnover tax
   
107,755
     
115,025
 
Other taxes, withholdings and perceptions
   
117,871
     
123,787
 
Total
   
4,207,682
     
3,257,629
 
 
25. CASH AND CASH EQUIVALENTS
 
For purposes of the consolidated condensed interim statement of cash flows, cash and cash equivalents include cash, banks accounts and short-term investments with high liquidity (with maturities of less than 90 days from the date of acquisition). Cash and cash equivalents at the end of each reporting period/year as shown in the consolidated condensed interim statement of cash flows can be reconciled to the related items in the consolidated condensed interim statement of financial position as follows:


     
03.31.2021
     
12.31.2020
 
                 
Cash and banks
   
248,010
     
301,161
 
Short-term investments (Note 18)
   
4,114,031
     
4,641,149
 
Cash and cash equivalents
   
4,362,041
     
4,942,310
 
                 
                 
 
26. FINANCIAL INSTRUMENTS

26.1 Net debt to equity ratio

The net debt to equity ratio of the reported period/fiscal year is as follows:

     
03.31.2021
     
12.31.2020
 
                 
Debt (i)
   
6,687,831
     
7,275,117
 
Cash and cash equivalents
   
6,047,736
     
4,942,310
 
 
Net debt
   
640,095
     
2,332,807
 
Equity (ii)
   
53,582,400
     
51,270,035
 
Net debt to equity ratio
   
0.01
     
0.05
 

(i) Debt is defined as current and non-current borrowings.
(ii) Shareholders’ equity includes all the non-controlling interests, which are managed as capital.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
22

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


26.2 Categories of financial instruments
 
     
03.31.2021
     
12.31.2020
 
Financial assets
At amortized cost:
               
Cash and banks
   
248,010
     
301,161
 
Investments
   
3,692,841
     
2,039,535
 
Accounts receivable
   
4,339,885
     
4,397,463
 
At fair value through profit and loss:
               
Investments
   
2,106,885
     
2,669,261
 
                 
Financial liabilities
               
Amortized cost
   
18,503,103
     
19,269,514
 

26.3 Financial risks

The Group´s activities are exposed to a variety of financial risks: market risk (including foreign currency risk, interest rate risk and price risk considering the current inflation rates), credit risk and liquidity risk. The Group maintains an organizational structure and systems that allow the identification, measurement and control of the risks to which it is exposed.

These consolidated condensed interim financial statements do not include all the information and disclosures on financial risks, therefore, they should be read in conjunction with the Group´s consolidated financial statements for the fiscal years ended December 31, 2020 and 2019 issued on March 10, 2021.

26.4 Fair value measurement

Fair value measurement is described in Note 33.8 to the annual consolidated financial statements.

From December 31, 2020 through March 31, 2021, there have been no significant changes in the industry’s economic activity affecting the fair value of the Group´s financial assets and liabilities, either measured at fair value or amortized cost. In addition, there were no transfers among the different levels of fair value hierarchy to assess the fair value of the Group's financial instruments during the three-month period ended March 31, 2021.

The carrying amounts of financial assets and liabilities recognized at amortized cost, included in the consolidated financial statements as of March 31, 2021 and December 31, 2020, approximate to their fair values. Borrowings are measured at amortized cost considering the effective interest rate method, which approximate to their fair value given their cancellation period.

The Group’s Management considers that the liquidity risk exposure is low since the Group has been generating cash flows from its operating activities, supported on profits, and has access to loans and financial resources, as explained in Note 21.

26.5 Exchange risk management

The Group carries out transactions in foreign currency and is hence exposed to exchange rate fluctuations. Exposures in the exchange rate are managed within approved policy parameters using foreign exchange contracts.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
23

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


The carrying amounts of monetary assets and liabilities stated in currencies other than the functional currency of each company consolidated at the end of the reporting period/year are as follows:

     
03.31.2021
     
12.31.2020
 
Liabilities
               
United States Dollars
   
5,911,473
     
7,191,637
 
Euro
   
493,741
     
1,848,382
 
Real
   
41
     
46
 
                 
Assets
               
United States Dollars
   
1,278,115
     
1,320,301
 
Euro
   
20,168
     
22,728
 
Real
   
4
     
4
 

Foreign currency sensitivity analysis

The Group is mainly exposed to the US Dollar and euro.

The following table shows the sensitivity of the Group to an increase in the US Dollar and the Euro exchange rate. The sensitivity rate is that used when reporting to the top executive level and represents the management’s assessment of a possible reasonable change in exchange rates. The sensitivity analysis only includes outstanding foreign-currency monetary items and adjusts traslation of such items on the end of the period tems considering a reasonably possible 25% increase in the exchange rate.

   
Effect of US Dollars
 
Effect of the Euro
         
   
03.31.2021
 
03.31.2021
Loss for the period
 
1,158,339
 
118,393
Decrease in of shareholder's Equity
 
1,158,339
 
118,393
         
 
27. NON-CASH TRANSACTIONS

Below is a detail of the transactions that did not involve cash flow movements during the three-month periods ended March 31, 2021 and 2020, respectively:

   
03.31.2021
 
03.31.2020
 
           
- Acquisitions of property, plant and equipment financed with trade payables
 
620,231
 
27,785
 
- Right of use of assets
 
2,529
 
-
 
 
28. SEGMENT INFORMATION
 
The Group has adopted IFRS 8 – “Operating Segments”, that require operating segments to be identified on the basis of internal reports regarding components of the Group that are regularly reviewed by the Executive Committee, chief operating decision maker, in order to allocate resources to the segments and to assess their performance. This analysis is based on monthly information concerning historical figures of the identified segments. The information reviewed by the main decision maker basically consists in the historical details corresponding to each month accumulated until the end of the reporting period. It is for this reason that they differ from the inflation-adjusted figures as described in Note 2.2.


Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
24

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


For the purposes of managing its business both financially and operatively, the Group has classified the continuing operations of its businesses as follows:

i)
Cement, masonry cement and lime: this segment includes the results from the cement, masonry cement and lime business in Argentina, and comprises the procurement of raw materials from quarries, the manufacturing process of clinker / quicklime and their subsequent grinding with certain additions in order to obtain the cement, masonry cement and lime.
 
ii)
Concrete: this segment includes the results generated from the production and sale of ready-mix concrete. It also includes the delivery of the product at the worksite and, depending on the circumstances, the pumping of concrete up to the place of destination.
 
iii)
Aggregates: this segment includes the results generated from the production and sale of granitic aggregates.
 
iv)
Railroad: this segment includes the results generated from the provision of the railroad transportation service.
 
v)
Others: this segment includes the results of the industrial waste treatment and recycling business to produce materials for use as fuel.
 
In the classification of activities by segments and in the information presented below, the “Cement - Paraguay” segment has been excluded since said operation has been discontinued as of August 21, 2020 due to the sale of the shareholding in said company (Note 30).
 
     
03.31.2021
     
03.31.2020
 
Sales revenue
               
Cement, masonry cement and lime
   
11,317,458
     
5,787,448
 
Concrete
   
1,086,045
     
467,813
 
Railroad
   
913,801
     
742,033
 
Aggregates
   
128,860
     
62,308
 
Others
   
71,620
     
48,035
 
Inter-segment eliminations
   
(882,906
)
   
(498,925
)
Subtotal
   
12,634,878
     
6,608,712
 
Reconciliation - Effect from restatement in constant currency
   
540,586
     
3,125,589
 
Total
   
13,175,464
     
9,734,301
 

             
Cost of sales
           
Cement, masonry cement and lime
   
6,043,045
     
3,296,237
 
Concrete
   
1,160,364
     
523,908
 
Railroad
   
905,802
     
739,329
 
Aggregates
   
132,460
     
78,558
 
Others
   
43,897
     
30,751
 
Inter-segment eliminations
   
(882,906
)
   
(498,925
)
Subtotal
   
7,402,662
     
4,169,858
 
Reconciliation - Effect from restatement in constant currency
   
997,157
     
2,598,058
 
Total
   
8,399,819
     
6,767,916
 



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
25

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


     
03.31.2021
     
03.31.2020
 
Selling, administrative expenses and other gains and losses
               
Cement, masonry cement and lime
   
840,303
     
445,929
 
Concrete
   
22,336
     
(3,325
)
Railroad
   
54,984
     
30,614
 
Aggregates
   
1,600
     
(3,549
)
Others
   
24,135
     
18,298
 
Subtotal
   
943,358
     
487,967
 
Reconciliation - Effect from restatement in constant currency
   
92,933
     
301,915
 
Total
   
1,036,291
     
789,882
 

             
Depreciation and amortization
           
Cement, masonry cement and lime
   
252,752
     
173,965
 
Concrete
   
16,811
     
16,742
 
Railroad
   
66,995
     
56,401
 
Aggregates
   
5,730
     
5,397
 
Others
   
1,122
     
1,127
 
Subtotal
   
343,410
     
253,632
 
Reconciliation - Effect from restatement in constant currency
   
592,331
     
714,824
 
Total
   
935,741
     
968,456
 

             
Sales revenue less cost of sales, selling, administrative expenses and other gains and losses
           
Cement, masonry cement and lime
   
4,434,110
     
2,045,282
 
Concrete
   
(96,655
)
   
(52,770
)
Railroad
   
(46,985
)
   
(27,910
)
Aggregates
   
(5,200
)
   
(12,701
)
Others
   
3,588
     
(1,014
)
Subtotal
   
4,288,858
     
1,950,887
 
Reconciliation - Effect from restatement in constant currency
   
(549,504
)
   
225,616
 
Total
   
3,739,354
     
2,176,503
 
                 
Reconciling items:
               
 Tax on bank accounts debits and credits
   
(125,074
)
   
(145,782
)
 Financial results, net
   
141,410
     
(570,294
)
 Income tax
   
(1,188,099
)
   
(460,726
)
 Income from discontinued operations
   
-
     
256,344
 
 Net profit for the year
   
2,567,591
     
1,256,045
 

No customer has contributed 10% or more of the Group´s revenue for the three-month periods ended March 31, 2021 and 2020, respectively.
 
29. COMMITMENTS
 
The Group’s commitments are described in Note 36 to the annual consolidated financial statements for the fiscal year ended December 31, 2020.

Likewise, the Group has agreed not to operate in the territory of Paraguay for five years from August 2020 and to provide certain assistance in the transition to the new direction in control of Yguazْ Cementos for a period of 36 months.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
26

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)

 
30. SALE OF INTERES IN YGUAZU CEMENTOS S.A. – DISCONTINUED OPERATIONS
 
On August 21, 2020, Loma Negra C.I.A.S.A. (the “Company”) sold its total stake in the Paraguayan company Yguazْ Cementos S.A. (“Yguazْ”), which represented 51.0017% of the capital stock of Yguazْ. The sale was made to the local shareholder of Yguazْ. For further information regarding this transaction, refer to Note 42 of the financial statements issued as of December 31, 2020.

As of the date of issuance of these financial statements, the Group has collected 94% of the total amount agreed for the operation, with the remaining balance to be collected in equal monthly installments, the last being collected in January 2022.

Due to the operation described above, the Group classified the results associated with the operation of Yguazْ Cementos S.A. as a discontinued operation, which represented the entire operating segment of cement in Paraguay until March 31, 2020. With these results classified as discontinued operations, the cement segment in Paraguay is no longer presented in the segment note. Additionally, the balances and results as of March 31, 2020, which are presented for comparative purposes and that arise from the consolidated financial statements as of such date, have certain reclassifications related to the sale of participation mentioned for the purposes of its comparative presentation with those of the present period.

The results generated by the operation of Yguazْ Cementos S.A. for the period ended March 31, 2020 are presented below:

     
03.31.2020
 
         
Revenues
   
1,342,702
 
Cost of sales and selling and administrative expenses
   
(979,926
)
Financial results, net
   
(80,299
)
Profit before tax
   
282,477
 
         
Income tax expense
   
(26,133
)
Income from discontinued operations
   
256,344
 
         
Net profit from discontinued operations for the period attributable to:
       
Owners of the Company
   
130,740
 
Non-controlling interests
   
125,604
 
         
Earnings per share from discontinued operations (basic and diluted) attributable to:
       
Owners of the Company (in Argentine pesos)
   
0.2194
 
Non-controlling interests (in Argentine pesos)
   
0.2107
 

The summarized information of the cash flow statement generated by the operation of Yguazْ Cementos S.A. for the periods ended March 31, 2021 and 2020, it is presented below:

     
03.31.2021
 
Net cash generated by operating activities
   
261,032
 
Net cash used in investing activities
   
(34,531
)
Net cash used in financing activities
   
(1,043,302
)
Effects of exchange rate variation on cash and cash equivalents in foreign currency
   
(56,953
)
Net decrease in cash and cash equivalents from discontinued operations
   
(873,754
)



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
27


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


31. THE ARGENTINE ECONOMIC CONTEXT
 
On October 27, 2019, Argentina held presidential elections, which ended up in the election of Alberto Fernلndez as President of the Nation, who was inaugurated on December 10, 2019 and started a process of change from the previous administration.
 
The priority of the new administration was to implement solutions for the difficulties in the economic and social areas. To this end, the national government has carried out the necessary efforts to renegotiate the payment of the external debt, and has incorporated measures aimed at preserving the reserves of the Central Bank of the Argentine Republic, reducing the fiscal deficit and obtaining improvements in productive capacity, among other various measures mentioned below.
 
The central issues of the macroeconomic scenario in Argentina are as follows:
 
- The economic activity in 2019 showed a fall that was subsequently sustained and increased due to the effect of the COVID-19 pandemic occurred in 2020.

- The fall in activity and the consequent reduction in revenues has also produced a major tax imbalance.

-  This imbalance has been particularly driven by the issuance of money to finance the expansion of public spending allocated to subsidies to alleviate the effects of the COVID-19 pandemic.

- The fall in the international reserves of the Central Bank of Argentina (“BCRA”), accompanied by an increase in its monetary liabilities, has led to a tightening of the foreign exchange regulations that imposed restrictions on the accumulation and use of foreign currency and on foreign payments, which in turn created a significant gap between the official exchange rate and that of freer foreign exchange markets.

- The agreement reached in August 2020 with foreign private creditors for the exchange of notes for USD 63,500 million with maturities between 2029 and 2046 has been regarded as a positive aspect that made it possible to extend the first interest and principal payments until 2024 and represents savings of about USD 38 billion over the next 10 years.

- The national consumer price index published by INDEC accumulated 36.1% in the year 2020 and 13% for the first quarter of fiscal year 2021. This increase occurs in an inflation scenario repressed by the prevailing recession, and due to a framework of uncertainty.

32.
EFFECTS OF COVID-19 ON THE GROUP
 
On March 11, 2020, the outbreak of a novel coronavirus (COVID-19) was declared a pandemic by the World Health Organization (WHO). In this regard, on March 19, 2020, the Argentine Executive Branch passed Executive Decree No. 297/2020, mandating social distancing in Argentina to prevent the effects of the pandemic.
 
In compliance with such decree, the Group: (i) temporarily suspended the production and dispatch of cement, concrete and aggregates until such time as the necessary conditions to resume activities are in place; (ii) temporarily suspended the construction project of the second line of L´Amalي plant, in the City of Olavarrيa, until such time as the necessary conditions to resume activities are in place; (iii) implemented teleworking practices among its back office staff; and (iv) has created a Crisis Management Committee tasked with monitoring and assessing the adoption of measures to mitigate the effects of this crisis.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
28

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)
 

Accordingly, effective since April 6, 2020, the Group has resumed the production and dispatch of cement, concrete and aggregates. On the other hand, the Company has secured a permit to continue with the construction works of the second line of L´Amalي plant, under stringent health protocols established by the Provincial Government and the Group.

As a consequence of the second wave of COVID-19 infections that Argentina has been experiencing since March 2021, and as cases continue to increase, in accordance with Decrees No. 235 and No. 241/2021, the Executive Branch reinstated a limited number of restrictions on certain commercial operations and movement of people (such as the restriction of group tourist trips, closing of shopping centers, restrictions on the operation of stores between 7:00 p.m. and 6:00 a.m. 00:00 and 6:00 the next day) in the most affected areas (including the City of Buenos Aires and its surroundings), initially until April 30, 2021 and then extended until May 21, 2021. If these restrictions spread or broaden, economic activity could continue to decline, and all other economic indicators would continue to deteriorate.

Concerning the railroad business operated through the subsidiary Ferrosur Roca S.A., in the first quarter of this year the effect of COVID-19 has occasionally hindered the operation due to simultaneous cases in the Operations Control Center (CCO). Although some positive case required hospital admission, no deceased has been registered to date.
 
33.
OFFICIALLY STAMPED BOOKS
 
As of date of these interim financial statements, for administrative purposes, consolidated financial statements were not yet transcribed in the relevant certified books.
 
34. SUBSEQUENT EVENTS

34.1 Destination of reserves and unallocated results for fiscal year 2020

On April 20, 2021, the Ordinary and Extraordinary General Shareholders' Meeting was held, which, among other things, decided to modify the destination of the Optional Reserve that had originally been established taking into consideration the investment plans in property, plant and equipment that were in execution. Considering the high degree of progress of the L'Amalي plant expansion project, and the need for a smaller amount of funds for the project, the destination of the Facultative Reserve was modified so that, from now on, it can be used for future distributions of dividends being its new name "Optional reserve for future dividends". Likewise, it considered the destination of the unallocated results as of December 31, 2020 for a total amount of 11,351,024, providing for the increase in the balance of the Optional Reserve for future dividends for said amount.
 
34.2 Acquisition of Treasury Stock

Until the date of issuance of these financial statements, the Company continued the treasury share buy-back as mentioned in Note 19.



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
29

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


INFORMATION REPORT
 
1. ACTIVITIES OF THE COMPANY
 
During the current period Loma Negra C.I.A.S.A. and its subsidiaries dispatched 1,384,158 tons of cement and lime, and their net sales amounted to 13,175,464. Dispatches overall were 38% higher from those for the same period of the prior year.
 
Gross income amounted to 4,775,645 and the total comprehensive income for the three-month period was 2,567,591. Said income accounts for a 136% increase compared to the comprehensive income for the same period of the prior year.
 
On February 12, 2021, the Board of Directors of the Company approved a plan for the acquisition of treasury stock for a period of 90 days. The purpose of the repurchase is to efficiently dispose of a portion of the Company’s liquidity, which may result in a greater return of value to the shareholders considering the current attractive value of the share. Until the date of issuance of these interim financial statements, the Company acquired 2,644,608 treasury shares for a total value of 475,945.
 
2. EQUITY STRUCTURE, COMPARATIVE (*)
 
     
03.31.2021
     
03.31.2020
     
03.31.2019
     
03.31.2018
 
 Current assets
   
17.539.999
     
15.896.893
     
16.806.857
     
20.408.124
 
 Non-current assets
   
63.684.555
     
64.238.566
     
54.808.862
     
39.173.440
 
 Total assets
   
81.224.554
     
80.135.459
     
71.615.719
     
59.581.564
 
                                 
 Current liabilities
   
18.075.027
     
17.258.344
     
23.179.207
     
16.597.063
 
 Non-current liabilities
   
9.567.127
     
11.607.080
     
10.086.729
     
12.196.877
 
 Total liabilities
   
27.642.154
     
28.865.424
     
33.265.936
     
28.793.940
 
                                 
 Non-controlling interests
   
273.320
     
306.344
     
308.424
     
415.072
 
 Shareholders’ equity attributable to owners of the company
   
53.309.080
     
50.963.691
     
38.041.359
     
30.372.552
 
 Total shareholders’ equity
   
53.582.400
     
51.270.035
     
38.349.783
     
30.787.624
 

3. STRUCTURE OF RESULTS, COMPARATIVE (*)
 
     
03.31.2021
     
03.31.2020
     
03.31.2019
     
03.31.2018
 
Gross income
   
4.775.645
     
2.966.385
     
4.027.898
     
3.162.678
 
Selling and administrative expenses
   
(1.079.001
)
   
(852.352
)
   
(1.274.256
)
   
(1.118.068
)
Other gains and losses
   
42.710
     
62.470
     
(4.891
)
   
9.942
 
Tax on bank accounts debits and credits
   
(125.074
)
   
(145.782
)
   
(234.903
)
   
(216.339
)
Financial results, net
   
141.410
     
(570.294
)
   
(167.478
)
   
(52.165
)
Profit before tax
   
3.755.690
     
1.460.427
     
2.346.370
     
1.786.048
 
Income tax
   
(1.188.099
)
   
(460.726
)
   
(402.423
)
   
(459.261
)
Net profit for the period from continued operation
   
2.567.591
     
999.701
     
1.943.947
     
1.326.787
 
                                 
Net profit for the period from discontinued operations
   
-
     
256.344
     
314.612
     
202.461
 
Net profit for the period
   
2.567.591
     
1.256.045
     
2.258.559
     
1.529.248
 
                                 
Net profit for the period attributable to:
                               
Owners of the company
   
2.600.615
     
1.222.894
     
2.145.669
     
1.419.750
 
Non-controlling interests
   
(33.024
)
   
33.151
     
112.890
     
109.498
 
                                 
Other comprehensive income
                               
Due to exchange differences
   
-
     
(166.049
)
   
(20.069
)
   
21.374
 
Total other comprehensive income for the period
   
-
     
(166.049
)
   
(20.069
)
   
21.374
 
Total comprehensive income for the period
   
2.567.591
     
1.089.996
     
2.238.490
     
1.550.622
 



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
30

LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2021 AND 2020
(All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)


4. COMPARATIVE CASH FLOWS STRUCTURE (*)
 
     
03.31.2021
     
03.31.2020
     
03.31.2019
     
03.31.2018
 
Net cash flows generated by / (used in) operating activities
   
2.928.867
     
159.893
     
751.901
     
(242.601
)
Funds used in investing activities
   
(2.621.118
)
   
(5.758.923
)
   
(4.024.705
)
   
(2.976.104
)
Funds (used in) / generated by financing activities
   
(698.586
)
   
5.766.451
     
(233.241
)
   
(379.898
)
Total funds (used in) / generated by during the period
   
(390.837
)
   
167.421
     
(3.506.045
)
   
(3.598.603
)

5. STATISTICAL DATA (*) (In tons)
 
     
03.31.2021
     
03.31.2020
     
03.31.2019
     
03.31.2018
 
Production volume (**)
   
1.370.220
     
978.534
     
1.370.677
     
1.572.522
 
                                 
Sales volume (**)
                               
   Argentina
   
1.382.980
     
1.001.303
     
1.369.970
     
1.580.773
 
   Abroad
   
1.178
     
1.664
     
1.607
     
1.607
 
Total
   
1.384.158
     
1.002.967
     
1.371.577
     
1.582.380
 

6. INDEXES

     
03.31.2021
     
03.31.2020
     
03.31.2019
     
03.31.2018
 
Liquidity
   
0,97
     
0,92
     
0,73
     
1,23
 
Solvency
   
1,94
     
1,78
     
1,15
     
1,07
 
Capital immobilization
   
0,78
     
0,80
     
0,77
     
0,66
 

7. FUTURE PROSPECTS (*)
 
Forecasts for the Argentine economy show a GDP interannual growth for 2021 of about 6.4%, which will be a partial recovery after the sharp fall in 2020. The construction sector could be expected to show a stronger recovery in the first half of the year, with the second half being subject to the evolution of the country’s economic situation and to the then-existing pandemic scenario.
 
(*) The information presented for comparative purposes has been modified to give retroactive effect to the deconsolidation of the Yguazْ Cementos S.A. operation. discontinued as of August 21, 2020.
 
(**) Information not examined or covered by the Review



Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
 
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