Good day, ladies and gentlemen. Welcome to Pacasmayo's Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode, and please note that this 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 Manager. Mrs. Bustamante, you may begin. Thank you, Luis. Good morning, everyone. Joining me on the call today is Mr. Humberto Nadal, our Chief Executive Officer, Mr. Manuel Ferreyros, our Chief Financial Officer, and Ely Hayashi, our Finance Managing Director. Mr. Nadal will begin our call with an overview of the quarter, focusing primarily on our strategic outlook for the short and medium term. Mr. Ferreyros 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 historical facts and are therefore subject to risks and uncertainties that might affect future events or results. Descriptions of these risks are set forth in the company's regulatory filing. With that, I'd now like to turn the call over to Mr. Thank you, Claudia. Welcome, everyone, to today's conference call, and thank you for joining us today. Before beginning the analysis of this quarter's results, I would like to take a few minutes to talk about the recent announcement of Manuel Ferreyros' retirement as CFO. As most of you already know, at the end of last year, we announced that Manuel will be stepping down as CFO effective March 31st after an impeccable career that led him to be considered several times as one of the best CFOs in our industry in Latin America. His retirement is part of a succession plan carefully drawn up more than three years ago. In April 2025, a new chapter will begin for the company under the leadership of Ms. Ely Hayashi, who will maintain Manuel's legacy and learnings leading Pacasmayo to be better every day. Now, moving on to our results, this quarter we saw a reversal of the negative trend in sales volume, resulting in an increase of 2.6% year over year. This increase was mainly due to increased sales to the public sector and concrete and pavement for the Piura Airport project. For the whole year 2024, revenues increased 1.4% despite a slight decrease in sales volumes, mainly due to sales mix and our dynamic pricing strategy. Moreover, consolidated EBITDA reached a record PEN 549.3 million with an EBITDA margin of 27.8%. These results, considering a challenging demand environment, are outstanding and give us the confidence to believe that with a stronger demand scenario in 2025, we will be able to deliver even better results. I would now like to highlight the progress in 2024 of some key elements of our strategy. As we are all aware, the world is transforming fast. The understanding and use of new technologies such as AI and machine learning, and the immense power of data, are accelerating the pace of change. As a company, we are focusing on both developing and adapting digital tools and reinforcing the culture to adopt them. Throughout 2024, we made significant strides in digital transformation, aligning technology with our strategic objectives to enhance efficiency and innovation. We developed initiatives focused on the digitalization of operations, introduced a user-centered service model to improve customer interactions, and AI-driven solutions played a growing role in the company's evolution. Additionally, data management and automation played an increasingly crucial role in optimizing supply chain efficiency, modernizing logistic processes, streamlining operations, and reinforcing our commitment to continuous improvement. However, all of these technology adoption and data reliance brings its own challenges. Cybersecurity is paramount in the process of digital transformation. During 2024, we focused our efforts on strengthening the protection of operational technologies by increasing the maturity of the industrial network. We also consolidated an information security committee composed of representatives from various management positions to ensure a comprehensive approach to digital risk management. These efforts culminated in a major milestone as we became the first Peruvian cement company to obtain an ISO 27001 certification, the international standard for safeguarding the confidentiality and integrity of information. Another important pillar of our strategy is to continue to develop and strengthen our building solutions. During 2024, we embarked on two significant projects towards this goal. First, we designed an innovative solution for riverbank protection that is traditionally done with steel and rocks. But since there are parts of the north where rocks are not readily available, we designed a new solution using mainly cement, local materials, and mortar that is both more cost-effective and more durable. Secondly, we executed the reconstruction of the two runways and the perimeter fence of the Piura Airport, not only as a concrete and pavement provider but directly involved in the construction as part of the consortium. The way in which we approach this project is different from other airport improvement projects we have provided concrete for in the past, since in this case, we actively participated in every step, beginning with prospection and ending with actual delivery of the finished infrastructure project. This involvement in every step of the process has brought invaluable insights and learning opportunities, albeit at some additional cost. We remain really confident that value-added building solutions are the route forward for our company, and we will continue learning, adjusting, and improving in this journey. Finally, I would like to briefly mention some advancements and recommendations in terms of sustainability. We are extremely pleased to be the first Peruvian cement company to obtain an environmental product declaration from the Global EPD program for three of our cement plants, representing an estimated 75% of our current portfolio. Verified by AENOR, this international certification provides full transparency on the environmental impact of our products throughout the life cycle, reaffirming once more our leadership in sustainability and our commitment to responsible construction. In addition, we are honored to have been included for the fifth consecutive year in the Sustainability Event by S&P and thus maintain our position as industry leaders in the Merco Responsibility ESG ranking for the ninth year in a row. This evaluation, which considers environmental impact, social responsibility, ethics, and corporate governance, places us in the top 10 most responsible companies in the country. These recognitions reinforce our dedication to sustainability and drive us to continue embedding it at the core of our business strategy. I will now turn the call over to Manuel to go into the financial analysis. Thank you, Humberto. Good morning, everyone. This quarter's revenues increased 3% compared to the same period of 2023, reaching PEN 526.7 million. During this same period, the gross profit decreased 2.1% when compared to the same period of previous year, mainly due to higher costs related to the execution of the Piura Airport project. Consolidated EBITDA was PEN 142.5 million this quarter, and the EBITDA margin was 27.1% and 8.7% and a 3.4 percentage point decrease, respectively, when compared to the adjusted EBITDA and the 19.2% and 3.7 percentage point increase, respectively, when compared to the consolidated EBITDA of the same period of 2023. For the whole year of 2023, revenues increased 1.4%, consolidated EBITDA increased 14%, and the EBITDA margin also increased 3.3 percentage points when compared to the same period of last year. These positive results, as Humberto mentioned, are the outcome of a smart pricing strategy and solid operating efficiencies. Due to the operating expenses, administrative expenses for the fourth quarter of 2024 increased 16% and 9.2% in 2024 when compared to the same period of the previous year, respectively, mainly due to the increased personnel expenses because of a larger workforce, as well as a higher workers' profit share, and third-party services related to renewal fees for mining concession software and licenses, among others. Selling expenses during this quarter increased 34.8% and 17% in 2024 compared to the fourth quarter and 2023, respectively, mainly due to the increase in personnel expenses because of a larger workforce as well as a higher workers' profit share, advertising and promotion, as well as software and licenses. Moving on to the different segments, sales of cement increased 1.8% this quarter when compared to the same period of 2023, mainly due to an increase in average prices. The gross profit of this period also increased 1.9%, and the gross margin remained flat when compared to the fourth quarter of 2023. For the whole year of 2024, sales of cement decreased 2.2% when compared to the whole year of 2023, mainly due to a decrease in demand from the self-construction segment. Nonetheless, due to our continued focus on efficiencies, the gross profit increased 7.6%, and the gross margin increased 4.1 percentage points in 2024 when compared to 2023, mainly due to cost optimization. During this quarter, concrete pavements and mortar sales increased 30.9% and 48.8% for the whole year 2024 when compared to the same period of 2023, mainly due to an increased sales volume of pavements for the Piura Airport project, among others. Gross margin decreased during this quarter and the whole year, mainly due to an increased cost related to the execution of the Piura Airport project. There is a difference in exchange rate between the rate projected in the contract versus the real exchange rate, as well as the additional costs incurred because of the extension of the project beyond our planned execution period. As Humberto mentioned before, we remain confident that developing building solutions is the right path for our company, even if it entails some additional costs in the short term. Regarding precast material sales and gross margin for the fourth quarter of 2024 were mostly in line with the fourth quarter of 2023. During 2024, precast sales increased 18% compared to 2023, mainly due to an increased demand from the public sector. Moreover, gross margin increased 10.7 percentage points when compared to 2023, mainly due to the dilution of fixed costs because of this higher sales volume. Moving back to our consolidated result, the net profit increased 39.3% this quarter and 17.8% for the whole year when compared to the same period of last year, respectively, mainly due to increased operating profit, as mentioned before, as well as to the impairment loss of our vertical kilns included in the 2023 result. Finally, in terms of debt, our net debt to EBITDA ratio was 2.7 times below the level obtained the previous quarter as we continue delivering it. As Humberto mentioned, I have decided to step down as CFO as of March 31st. Pacasmayo has been my home for the past 17 years, as I will surely miss it. But it is time for the next generation to step forward, as the greatest legacy we can leave is a team of well-prepared and talented individuals. Ely Hayashi has worked for Pacasmayo for the last 20 years since her internship, and I have worked closely with her for the last five years. I am confident that she is more than ready to take on the challenge. I want to thank each and every one of you for your trust in me as CFO and in our company throughout this time. Operator, can we please now open the floor for questions? Thank you. So we'll now move to the question and answer section. If you'd like to ask a question, please press star 2 on your phone and wait to be prompted. If you're 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 questions to come in. Okay. Our first question comes from Marcelo Furlan from Itaú. Please go ahead. Hi, everyone. Can you hear me? Yes, please go ahead. Okay. Thank you, guys, for taking my question. So I have a couple of questions here. The first is related to sales volumes for 2025. I mean, when we see the volumes in this fourth year, it grows by 3% really every year. And actually, when we compare the second half sales volumes in 2024, it increased by 14% versus the first half of last year. So on top of that, I'd like to have more color on what are you guys expecting for sales volumes in 2025? This is my first question. The second question is, if you guys could please give a little bit more detail regarding the higher costs and expenses that you guys have in this fourth year. This would help as well. And finally, my third question is related to capital allocation ahead. So what are you guys forecasting for CapEx in 2025? And also, what are you guys forecasting for maybe increasing shareholders' return and so on and so forth? So that's pretty much it. Thank you. Sure. As we mentioned, I mean, the last quarter, we saw for the first time in 2024 an increase compared year to year. So we believe the volumes should show that positive trend in 2025, probably on the same positive numbers that we saw on the last quarter of 2024. Regarding the CapEx question you had, our sustaining CapEx remains at PEN 100 million, more or less. We don't see any additional CapEx in this coming year or even 2026. I think we are well prepared to deliver all the demand that will be showing up. And in terms of higher costs and expenses, I mean, I think I would like to drive your attention back to, in the end, we finished the EBITDA margin at a level which we think is very good, but more than good and competitive, it's very sustainable. Of course, we have had some increased costs in terms of we have more personnel, the company is growing, and everything. We also have some increased costs because of profit-sharing companies, according to the law. But in the end, the way you have to look at it is, I mean, I think the EBITDA margin which we closed the year is the one that we should be sustaining towards the future. Okay. Thank you so much, guys. Okay. Thank you. Our next question comes from Adriana Huerta from JPMorgan. Please go ahead. Thank you. Hi, Humberto and Manuel, and Manuel, best wishes on whatever you do. It was a privilege to work with you all these years, Manuel. My question is just on energy cost. You can just tell us how your energy cost per ton behaved during 2024 and what we could expect for this year, Humberto? Yeah. Energy cost. Hello, Adriana. Thank you. Energy cost 2024 has gone down compared with 2023, and we expect should be flat for 2025. Just remind me, what are the main fuels that you use? For the kilns, we use coal, anthracite coal, local coal. Basically, for the mills, we use electricity. Do you have fixed cost on that coal or you? No. In coal, we buy local coal. And basically, I would say it's quite steady, the price. We don't have a contract. We buy on spot. But we are the main buyer in Peru, so basically, I would say it's quite steady with price. And for electricity, yes, we have a long-term contract. Perfect. And just follow up on the previous question on cement volumes for this year. Can you elaborate just a little further on those positive trends that we saw in fourth year that could continue into this year? By segment, how do you see the different segments? Residential, non-residential, infrastructure? How do you see which should be the main drivers for this year for volumes? Sure. Yeah. I'm going to answer the question on volumes from a different angle than the segments you're asking me. I mean, for us, since 80% of our sales go to self-construction, the key proxy for us is employment. People have to be fully employed. We just closed last year our agriculture exports at a record level of $12 billion. That means, I mean, lots of thousands of people employed, very well employed, and extremely well paid. That's why this year has begun so strongly, and that's why the end of last year was so strong. Fishing also had a fantastic first season of the year. So all these things convey a potential residential demand that should be absolutely a positive side compared to last year. Second, we have just a new Minister of Economics appointed two weeks ago. Even though he's not a specialist in economics, he comes from a long and a very successful career in building infrastructure. So I think we already see that he has come in very strong in terms of unlocking some projects. So I think also from an infrastructure level, we're going to see the central and regional governments spending much more so. As we stand, we closed last year at a very high note in terms of volumes. This year has opened in similar tones, and all these things just make us feel very optimistic about volumes. Great. Thank you, Humberto Manuel. Okay. Thank you. Our next question is from Marian Goñi from Credicorp Capital. Thanks for the presentation. Why has the number of employees increased? Is it due to a specific project? Yeah. I mean, when we talk about the general numbers, I mean, it has to do a lot with specific projects. Sometimes, I mean, like we'll do the Piura project, so we hire a bunch of people, but the general project will be out. It has to do with that. I mean, in the ready-mix business, depending on the project, now we're going to have the Chavimochic irrigation. We have the Yanacocha project. Those things, I mean, are really temporary employment increase. In terms of increasing people that are going to stay for good, that's still increasing, but probably at a level of, I don't know, maybe 10 or 15 people a year, not a lot. Okay. Thank you. We have a question from Francisco Suárez from Scotiabank. Please go ahead, Francisco. Thank you so much. Good morning, gents, and congrats on the results. And Manuel, on a personal note, thank you for all your wonderful effort. It was quite a ride, and thank you so much for everything. Best wishes as well. The question that I have relates with overall utilization. I mean, you have reached levels that usually in the future may lead to a downward trend. Are you still optimistic on your overall utilization rates on your cement operations? And the second question that I have is if you can walk me a little bit through what are the structural features that make you think so bullish on your ability to maintain the current margins? Thank you. Thank you, Francisco. I mean, I think right now we're in terms of clinker at 70% utilization capacity. We are very confident that we're okay with that. Also, you have to bear in mind we keep lowering our clinker factor. Probably in the next couple of years, we should be somewhere around the 67%-68% which is really increasing capacity. And in terms of cement utilization, mills, we're talking about 60%. So yeah, I think we are not concerned at all about capacity. And in terms of EBITDA margins, I think Adriana made a very important question before. Energy costs, which are a fundamental part, have been flat over the last two years. If you add to that personnel cost, which go up with inflation, that really allows us to be very confident that the margins should be maintained. Our pricing policy has been very efficient over the last years, and I think those three factors allow us to think that the EBITDA margins going forward should be maintained. If anything, I mean, if the volumes pick up more than we expect, maybe you should see a little bit of improvement there. If I may, and thanks for your complete answer, you raised one thing that catches my attention. Clinker factors. What are the drivers behind improvement? What type of additions are you envisioning in addition to slag? Is anything happening on that front that explains such improvement? Thank you. Yeah. We are more than slag. I mean, we're focusing heavily in pozzolan materials, also in raw materials. I think those are the main drivers that are really driving our clinker factor lower. And more than that, Francisco, I mean, we have clinker products with 60% clinker factor. It's a commercial issue. The thing is, I mean, there are some cements that are required by the government with a clinker factor of 90%. So we're trying to change the frame of mind of people to understand that other cements with lower clinker factor are as good as the ones like the cement type one. It's not so much only production. It's also a very strong effort on the commercial side to move our portfolio and average to a lower clinker factor. That makes lots of sense. Thank you so much. Thank you. Okay. Thank you. Just a reminder, if you'd like to ask a question, please press star on your phone and wait to be prompted. If you're dialed in by the web, you can type your question in the box provided or request to ask a voice question. We'll wait a moment or two for questions to come in. So we have a question from Luis Ramos from LarraínVial. Hi, everyone. Thanks for taking my questions. First, how vulnerable is this projected recovery on the cement volumes in 2025, particularly considering the increase in insecurity and upcoming elections? Second, could you provide us more color on these cost overruns in the Piura Airport? How long will these negative effects last on gross margins? Thank you for the question. In terms of vulnerability, I don't think the upcoming elections are a vulnerability. I do think that increased insecurity may be a vulnerability because 80% of our market is self-construction, and this will need to get out to work. So yeah, I don't think upcoming elections are an issue. I think insecurity, it has been there for the last two years. I don't see it getting any worse than it has been. So I think that's a flat thing. In terms of Piura, first of all, all the cost overruns are already in the results. I mean, there's nothing coming into the future. Everything has gone under the bridge now. And I think fundamentally, like Manuel mentioned in his speech, exchange rate, we projected exchange rate that didn't happen. Point number two, we had overruns in terms of time. We should have completed the project some months before that we are actually completing it. These negative effects, like I said, I mean, they will have no effect in gross margins in the future. This is a project that's already almost done. The way we see it is, I mean, this year we should be at revenues of $500 million coming from building solutions. One of the key positioning factors of us has been that we are more than just a company that sells cement bags. Some things take a learning curve. The Piura Airport was one of them. Luckily, we were able to deliver the project in the end at a reasonable cost. All this has already been taken care of in the 2024 results. Okay. Thank you. We had a text question from Gabriel Perez from Credicorp Capital. He has two questions. I'll start with the first one. Could you give us more color on your expectations regarding 2025 in terms of cement deliveries and EBITDA margins? Yeah. I think I've answered that before. I think the color should be the trend that we saw in the last quarter of 2024 is the one that should be going forward. And in terms of EBITDA margins, we should be able to keep the high EBITDA margin we achieved at the end of 2024. Okay. Thank you. And the next question from Gabriel. Given new projects like Defensas Ribereñas, where we should expect higher concrete sales, do you believe gross margin could be lower than 2024? I think what we're going to expect in terms of concrete sales, I mean, we have a huge Yanacocha project coming in this year. Chavimochic project should come in probably towards the end of the year. We see there a ready-mix. And like I mentioned before, and I'll say it once more, EBITDA margins should remain at the level we saw at the end of 2024. Okay. Thank you. We are not seeing any more questions. Thank you, everyone who has sent questions. So perhaps I can hand it back to Mr. Humberto Nadal for concluding remarks. Thank you, everyone, for participating today. Today, indeed, it's a special call for all of us here in Pacasmayo, for me especially, as my dear friend is joining me for the last time. I would like to close on a more personal note because Manuel's retirement is, in fact, I would say, a very significant milestone for our company. Succession is never easy because it involves people, it involves human feelings, desires, and expectations, but it is clearly necessary. It is one of the greatest tests and ultimately the greatest demonstration of our professionals to recognize when it is time to pass the torch and to ensure it is placed in the right hands. While leadership may change, the essence of this company remains absolutely unchanged, built on the dedication, values, and vision that each of us upholds. Manuel has exemplified in a way I've never seen before this spirit for 17 extraordinary years, leaving a lasting impact that will guide us over. On behalf of all of us in Pacasmayo, and especially on my own behalf, we thank you for your leadership, your integrity, your uplifting spirit, and all the lessons you have shown us over these 17 years. You will always be part of this company's story, and we wish you nothing but the very best in this next chapter. We indeed miss you very much, my dear friend. With that in mind, thank you very much, everybody, for joining us today in the call. We close a record year, and hopefully, this year, as we did in 2024, we will be able to get even better results. Thank you so much for your new interest in our company. Have a very nice day. That concludes the call for today. Thank you and have a nice day.