Good morning. Welcome to Loma Negra First Quarter 2020 Conference Call and Webcast. [Operator Instructions]. Please note that this event is being recorded.I would now like to turn the conference over to Mr. Gastón Pinnel, IR Manager. Please go ahead. Gastón Pinnel: Thank you. Good morning, and welcome to our first quarter 2020 earnings release conference call. Above all, we hope you and your families are safe and well. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Faifman, our CEO and Vice President of the Board of Directors; and our CFO, Marcos Gradin. Both of them will be available for the Q&A session.Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or change events or circumstances. This conference call will also include discussion on non-financial GAAP measures. The full reconciliation to the corresponding financial measures is included in the earnings press release.Now I would like to turn the call over to Sergio. Please, Sergio, go ahead.

Thank you, Gastón. Hello, everyone, and thank you for joining us today. First, I hope you and your family are safe and well during this unprecedented time. Clearly, we are operating in a cyclical environment, and we expect from now on think to start improving gradually. I want to thank all our people in Argentina and Paraguay, who faced enormous struggle and showed a great resourcefulness to keep this business running, to produce and sell products that people rely on every single day to provide themselves, their family and their community the infrastructure and shelter they need. Our concern to our employee, our customer, our supply and our community has never been more imperative, and we treat it with the utmost importance. And we tend to do our best for our stakeholder. I would like to mention a few highlights of the quarter. And then Marcos will take you through our market review and financial results. Afterward, I will provide some final remarks. And then we will open the call for your questions.Starting with Slide 3. Let me share with you the key measure that we took in above crisis commitment that we create in order to manage the effect of coronavirus crisis. Our people health and safety are nonnegotiable and is our main priority always. This is why we suspend national and international trips, and we implement as fast as possible a home-office scheme mainly to protect our people and their family. On March 20, and in compliance with the government's declaration of wide ranging lockdown, we temporarily suspend our production facility under L´Amalí expansion project. After the first week of April, we resumed production and dispatch of cement with the adoption of new sanitation protocols. As of today and after government permits were granted, L´Amalí expansion work have…

Thank you, Sergio. Good day, everyone. I also hope you and your beloved ones are safe and well. As you can see on Slide 5, Argentina is in the middle of economic activity construction and neither the construction sector nor the cement industry are exceptions to this situation. Argentina faces important challenges to achieve sustainable growth over time, and forecast for the Argentine economy at the beginning of this year already reveal a drop in GDP for 2020 compared to 2019. On top of this negative expectation, we now need to factor in the health and economic crisis caused by the COVID outbreak by the end of March.In the first month of this year, bulk segment was the most impacted by the delay in the execution of public and private construction project. By contrast, the bulk segment was better supporting the economic construction. Consequently, the share of cement sold in bulk increased by almost 8 percent points from 56% in first quarter 2019 to almost 64%. This trend will continue in the following months, where bulk will continue to gain share as public and private infrastructure sectors are suffering the most.Initially, on March '20, the national government declared a broad quarantine providing for social preventing and mandatory isolation in the context of the COVID-19 pandemic. We virtually made a full stop in all of our production and in parallel demand dropped by nearly 0 during the first few days since March '20. Afterwards, in April 3, the government decided to include mining and building material provided by building material depots in the special product list. Since that moment, some of the demand for cement was restored. Consequently, we resumed cement production. Certainly, we are cautious and we are attentive to the development of the pandemic in the country and the…

Thanks, Marcos. Now to wrap up the presentation, I please ask you to turn to Slide 11. We believe that the unique time is an opportunity to prove to ourself our true values. Health and safety of our employee are always a priority as it is our commitment with our community, our supplier and customer and, of course, our shareholder. At this moment, it seem pointless trying to provide a guideline for 2020 industry trends as recovery depend of the local economy turnaround, sovereign debt negotiation and the evolution of the coronavirus pandemic among other challenges. Yet, at the beginning of April, we have already resumed production adopting new sanitation protocols and more recently work on L´Amalí expansion projects were restarted. We need to keep looking forward, searching for alternative that will help us navigate through this new environment, united and taking care of each other.This is end of our prepared remarks. We are now ready to take questions. Operator, please open the call for questions.

[Operator Instructions]. Also please note that Mr. Sergio Faifman will be responding in Spanish immediately following an English translation. [Operator Instructions].Our first question is from Alejandra Obregon with Morgan Stanley.

This is related to infrastructure works and how do you think -- or how do you envision the outlook for infrastructure once we exit the coronavirus outbreak? And then if you could provide some color on what you're seeing for the month of April in terms of demand and dispatches in Argentina?

Thank you for your question. Our view is that the government is preparing an ambitious infrastructure plan that once the sovereign debt and the coronavirus situation are solved, they're going to start to implement. From our conversations with government officials, they're going to be focusing on -- mainly on housing and middle- to small-sized infrastructure works. And we believe that this is one of the key elements that the government is betting on in order to boost the economy once the coronavirus situation is over.Regarding the April volume, the industry ended up with minus 56% drop in volumes compared to last year. We need to remind that in the first 8 to 10 days of the month, we had built really zero shipping since it was forbidden to produce and to operate in our plants. Considering only the last 15 days of the month, the average drop will be around 40%. One key factor from this volume is that it is mostly bulk segment, mainly because the large infrastructure projects, either public or private, are hold. So we are optimistic that once -- in the next few months once these larger infrastructure projects start to being execute again, the volume should increase consequently.

[Operator Instructions]. The next question is from Nicolas Zalles from LW Investment Management.

I just have a quick question. I mean, against the possibility of a possible sovereign default, could you comment on how would you see a change in your operations just in general and how that would change the business environment in Argentina?

Thank you, Nicolas, for your question. We are working on a scenario that -- on a base case scenario that -- where there is no default. And according to the last signals, there should be an agreement with the bondholders. So even in the scenario of a default, of course, it will have an impact in the economy and in the economy's growth, and particularly in the financing of the public works, yes and other government expenditures. But we need to remind that during 2002 until 2007, where Argentina was in a default, the economy grew. We also need to remind that our industry, in particular, is considered as value haven, and in particular, for the infrastructure works, it's also a lever that the government can take in order to boost the economy and also to try to underpin the labor market.

Our next question is from Antonella Rapuano from Santander.

Actually, I had two question, if I may. The first one is related to the EBITDA margins, which were very impressive, in my view, considering the volume drop. So I was wondering how much of this cost efficiency is sustainable along the year? Regarding this, how much of the cost reductions came from lower energy costs and how much from the fixed cost from your adequacy effort on the fixed structure side? And my second question relies on the L´Amalí project. How -- I was wondering how much CapEx -- remaining CapEx is spending for the rest of the year to be deployed in this project?

Thank you, Antonella, for your question. Regarding our margins, it is in line with all the structure adequacies that we have implemented last year. Last year, we did this before-mentioned restructurings and also including staff reduction. And this year, we already observed the benefits from this restructuring. The margins we mainly have an effect in the Cement segment. And we did a few -- we took a few measures in order to improve this margin even with the drop of volumes. Regarding energy, both thermal and electrical, on average, we have a reduction of around 25% compared to last year. Additionally, with the drop in volumes, we have the ability to produce in a more efficient way in our most efficient facilities. So regarding L´Amalí too, we have already resumed our plan to -- for the expansion. And we expect to be ready by the year-end. And the remaining of the CapEx is approximately between $60 million and $50 million. Most probably part of this $50 million to $60 million are going to be disbursed in the following year, in 2021.

Our next question is from Coleman Clyde from HSBC.

I was going to ask on margins, and a lot of that was already answered. But just to follow-up with that. Do you -- what improvement do you expect to see from the L´Amalí plant expansion? I mean, you've made some impressive improvements already in margins. And I know that you expected that plant to add to your efficiency. So do you still expect to see a further margin improvement once that plant is underway? And then my second question would be on prices. I see that prices were up 1% in the first quarter. How are you seeing prices during the second quarter? Has it been more challenging to pass along cost inflation given the current environment? Those would be my two questions.

Thank you, Clyde, for your question. Yes. Clearly, L´Amalí still has some further improvements in our EBITDA. We still have some minor improvements in variable cost and also some improvements in fixed cost structure. And regarding prices, we foresee the price environment similar to what we observed in the past considering the inflation and the FX and always trying to keep our profitability under control.

And this concludes our question-and-answer session. I would now like to turn the conference back to Gastón Pinnel for closing remarks. Gastón Pinnel: Thank you for joining us today. We appreciate your participation in these unprecedented times and your interest in our company. We look forward to meeting more of you over the coming months and providing financial and business updates next quarter. In the meantime, the team remains available to answer any question that you may have. Thanks again, and be safe.

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