Good day, ladies and gentlemen. Welcome to Pacasmayo's third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. And please note that the call is being recorded. At the conclusion of our prepared remarks, we will conduct a question and answer session. I would now like to introduce your host for today's call, Mrs. Claudia Bustamante. Investor Relations Managing Director. Mrs. Bustamante, you may begin.

Thank you, Roberto. Good morning, everyone. Joining me on the call today is Mr. Humberto Nadal, our Chief Executive Officer, and Ely Hayashi, our Chief Financial Officer. Mr. Nadal will begin our call with an overview of the quarter, focusing primarily on our strategic outlook and operational highlights. Hayashi will then follow with additional commentary on our financial results. We'll then turn the call over to your questions.

Please note that this call will include certain forward-looking statements.

These statements relate to expectations, beliefs, projections, trends, and other matters that are not a circle of facts and are therefore subject to risks and advantages that might affect future events or results. Descriptions of these risks are set forth in the company's regulatory advice. With that, I'd now like to call the Thank you Claudia.

Welcome everyone to today's conference call and thank you for joining us to discuss our third quarter results. In the third quarter of 2026, our operational performance remained exceptionally solid. We experienced a 14.2% increase in the sales volume of cement, concrete, and precast. This robust demand particularly for bulk cement in mining and social work and back cement for self-construction directly contributed to a 16.3% rise in revenues with reached 667 million solid. We successfully leveraged this growth alongside higher selling prices and cost efficiencies to achieve a consolidated EBITDA of 217 billion solid, an outstanding 45% increase compared to the third world of last year. Consequently, our competitive PTA margin expanded by 7 percentage points to reach an impressive 34.9%. Complementing this strong performance, our net income rose by almost 70% to 121.4 million pesos. In addition to our strong financial performance, we are driving growth through high-margin specialized construction solutions. A key success factor has been our prefabricated concrete seed pile to suffer Faster project delivery, high precision, full control of the construction process, and enhanced reliability in aggressive environments. EmoTranix throws the mass of its solutions to secure an additional 4.4 kilometers of concrete sheet fire for the ongoing Ciudad River defense project. We also recognize that great infrastructure is built by people. To support the talent in Northern Peru, our culturally-expert digital ecosystem continues to thrive. We now have more than 5,000 foremen and with access to benefits and learning opportunities. Alongside a 157% growth in accumulation of . From a formal growth, what we build together grows as well. Finally, we continue to build trust and generate a positive impact in the country. We're immensely proud to announce that we reached the ninth position nationwide in the Merco ranking, maintaining our position as leaders in the cement sector for 11 uninterrupted years. We also received significant recognitions for our community initiatives, including winning the first edition of the Socios en Salud 2026 award for Juntos contra la Anemia. Thanks to this collaborative effort, we successfully reduced the prevalence of salud anemia in a district of Elías O'Flynn from 17 to 9%. Maintaining this leadership and achieving this community milestones is a direct result of hard work and resilience of an extremely committed team of Pacasmayo. I will now turn the call over to Ely to go into a more detailed panel data.

Thank you Humberto and good afternoon everyone. For the third quarter of 2026, our revenue growth was very strong, reaching 667.4 million soles up to 16.3% compared to a third quarter of 2025. This brought our revenue for the first nine months of the year to 1,781.9 million soles, representing a 14.4% increase year over year. This performance was permanently driven by higher sales volumes of bulk cement for the public and private segments, as well as bulk cement. Gross profit for the quarter increased by 33.7% to 299.4 million soles, mainly due to improved selling prices and a better cost structure. Turning to operating expenses, administrative expenses increased by 6.9% in the third quarter of 2016 to 31.2 million soles, and by 5.1% for the first nine months of the year. This reduction across both periods was mainly driven by lower personal expenses, Firmly reflecting a lower collective by gaining bonus compared to last year. On the other hand, selling expenses for the quarter increased by 9.8% to $27 million, mainly driven by higher personal expenses and other compensation costs. Moving to overall profitability, our consolidated EBITDA reached $233.1 million for the quarter, an outstanding 45.1% increase. For the first nine months of the year, EBITDA rose 37.7% to 585.8 million soles. Consequently, our EBITDA margin expanded by 7.0% to 34.9% in the third quarter of 2016. This remarkable profitability was driven by top-line growth, but also by lower electricity rates secured through our new long-term energy contract, combined with a lower thinker factor. Breaking down our results by business segments, Salmon revenues grew 21.3% to 571.6 million soles in the third quarter of 26. In terms of margin, the gross margin for salmon in the third quarter of 26 expanded by 2.50%, highly supported by new energy contracts that lower our average cost, as well as the cost efficiency from a lower thinker factor mentioned before. For the concrete pavement and mortar segment, quarterly revenues decreased by 19.7% to 65.6 million soles. This decline is due to reduced volume following the finalization of deliveries for the Chana Quarta, Motupe and Piura airport projects. However, despite lower volumes, gross margins expanded significantly by 21 percentage points in the third quarter of 2016 to reach 19.8%. This notable expansion was driven by a disciplined commercial strategy focused on profitability. along with cost savings following the completion of the Pura Airport project. Our precast segment also delivered solid progress. Revenues rose 23.1% to 11.3 million soles in the third quarter of 2016, primarily due to stronger demand for concrete pavements for public and private projects, particularly in Pura, Trujillo and Chiclayo. Cross-margin expanded by 5.1 percentage points to 16.1 percentage in the quarter, reflecting higher self-volume and lower cost of self-return. Finally, our consolidated net income for the third quarter increased by 69.8 percentage to $131 million. This strong bottom-line growth stems directly from higher operating profits. Additionally, we maintain a very healthy balance sheet, with our next debt-to-elaboration reaching two times as of September 13, 2026. To summarize, our third quarter performance reflects a successful execution of our commercial strategy and structure of cost efficiency, allowing us to expand our margins significantly across our segments. Operator, can we now open the call for questions?

Thank you.

So, we will now move to the question and answer section. If you would like to ask a question, please press star 2 on your phone and wait to be prompted. If you are dialed in by the web, you can type your question in the box provided or request to ask a voice question.

We'll just wait a moment or two for the questions to come in. Our first question comes from Gabriel Perez, the Credit Corp Capital.

Your line is open. Please go ahead, Gabriel. Hi, guys.

Thank you for the presentation. Do you hear me? Yes, we can hear you. Okay, thank you. So my first question will be, given the strong volume growth in this quarter, how sustainable do you believe the current recovery in cement demand is heading into 2027? And my second question would be regarding the potential impact of El Niño on cement demand in the region.

Yeah, regarding the projections, I mean, we all expect them to see what's going to happen with El Niño, but we still believe that next year we will see a growth of approximately 4% of volumes, but like I said before, it's all going to depend on the strength of El Niño.

Okay, thank you. Thank you, Gabriel.

Our next question comes from Francisco Suarez from Scotiabank. Francisco, your line is open. Please go ahead.

Thank you. Thank you for the call. And on a personal note, thanks for the many, many years of wonderful experiences and learning from you, Humberto and Claudia. The question that I have, it relates with a It was a great improvement in overall margins this quarter, far more than we expected. My question relates with the potential synergies between you and the network of operations within Holcim. Is that already taking place? Because it seems to me that we are at early stages of those synergies unfolding, but I would like to I don't understand if already you have been benefited from potential savings from procurement, for instance, or anything on that front.

Hi, Francisco. Thank you for your question. Nice always hear from you. The answer would be no. We are still in a very early stages, so there's no reflection really of any synergies in our results.

Fantastic. And also, perhaps this is actually a question for Holcim, but now Heidelberg, we have seen a similar move in the central market of Peru. Do you see potentially expanding yourselves in other regions within Peru?

Uh, like you said Francisco, that's probably a question of opposing. I mean, I cannot get it.

Perfect. Thank you. Thank you. Thanks again and congrats for the results.

Thank you Francisco. Just a reminder, if you would like to ask a question, please press start to owner phone and wait to be prompted. If you are downloading by web, you can either type your question in the box provided or request to ask a voice question. We just wait a moment or two for the questions to come in.

Could you please go ahead with the questions that are already lining up?

Sure. Our next question is a text question for Mario Velasquez. Are you going to announce dividends in the next days? During the last two years, you announced them in October.

As of today, the Board of Directors has not adopted any decision regarding dividend distribution.

OK. The next question from Alvaro Velasquez as well. What is going to happen with the investment shares? Are you planning a buyback?

There's no plans for a buyback at this point.

Okay. We have a next question from Reset from Luan. Regarding the recent tender offer, could you provide more details on its current status and the next steps? Also, what are the potential implications for minority shareholders? And could this transaction eventually lead to delisting?

Sure, as you all know, I mean, we have a neutrality position in Pacasmayo, but based on valid information, it was launched last week, it will last until November 20th, and all steps are moving according to the regulators. That's all I can comment at this point.

Okay, thanks.

So, I'm not seeing any more questions, so perhaps I can hand it back to Mr. Humberto Nadal for closing remarks. Thank you.

In closing, we conclude this quarter with confidence in our strategic momentum and operational strength. As we move forward alongside Holcim, our progress reflects a meaningful contribution to produce economic and social development. This journey is just beginning and I am convinced that Holcim will only bring value to our company and to our country. Beyond the financial results, we are creating tangible opportunities through initiatives that aim to improve living standards for thousands of Peruvians while generating sustainable value for all our stakeholders. Running a responsible business is about building solid foundations of trust. The future of Peru is built every day through decisions, hard work, and commitment of millions, and we remain dedicated to doing our part. Thank you once again for your continued trust and support for our company. Have a nice day.

That concludes the call for today. Thank you and have a nice day.