Cementos Pacasmayo Saa 6-K, filed Oct 27, 2021

UNITEDSTATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549

FORM6-K

REPORTOF FOREIGN ISSUERPURSUANT TO RULE 13a-16 OR 15b-16 OFTHE SECURITIES EXCHANGE ACT OF 1934

For themonth of October 2021

CommissionFile Number 001-35401

CEMENTOS PACASMAYO S.A.A.

(Exact name of registrant as specified in its charter)

PACASMAYOCEMENT CORPORATION

(Translation of registrant’s name into English)

Republicof Peru

(Jurisdiction of incorporation or organization)

CalleLa Colonia 150, Urbanización El Vivero

Surco, Lima

Peru

**(**Address of principal executive office)

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): ☐

CEMENTOSPACASMAYO S.A.A.

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The following exhibit is attached:

EXHIBIT NO.	****	DESCRIPTION
99.1		Unaudited interim condensed consolidated financial statements as of September 30, 2021 and for the three and nine-month periods then ended

1

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.

CEMENTOS PACASMAYO S.A.A.
By:	/s/ CARLOS JOSE MOLINELLI MATEO
Name:	Carlos Jose Molinelli Mateo
Title:	Stock Market Representative
Date:	October 27, 2021

2

Exhibit 99.1

Cementos Pacasmayo S.A.A. and Subsidiaries

Unaudited interim condensed consolidated financial statements

as of September 30, 2021 and for the three and nine-month periods then ended

Cementos Pacasmayo S.A.A. and Subsidiaries

Unaudited interim condensed consolidated financial statements as of September 30, 2021 and for the three and nine-month periods then ended

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Content

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Report on review of interim condensed consolidated financial statements	F-1
Interim condensed consolidated financial statements
Interim condensed consolidated statements of<br> financial position	F-2
Interim condensed consolidated statements of<br> profit or loss	F-3
Interim condensed consolidated statements of<br> other comprehensive income	F-4
Interim condensed consolidated statements of<br> changes in equity	F-5
Interim condensed consolidated statements of<br> cash flows	F-6
Notes to the interim condensed consolidated<br> financial statements	F-8

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i

Reporton review of interim condensed consolidated financial statements

To the Board of Directors and Shareholders of Cementos Pacasmayo S.A.A.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Cementos Pacasmayo S.A.A. (a Peruvian company) and its Subsidiaries (together the “Group”) as of September 30, 2021, and the related interim condensed consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for the three and nine-month periods then ended, and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with IAS 34 Interim Financial Reporting (IAS 34). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Auditing Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of the persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting.

Lima, Peru

October 26, 2021

Countersigned by:

Oscar Mere

C.P.C.C. Register No. 39990

F-1

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated statements of financial position

As of September 30, 2021 (unaudited) and December 31, 2020 (audited)

		Note		As<br> of <br> September  30, <br><br>2021				As<br> of<br> December  31, <br><br>2020
				S/(000)				S/(000)
Assets
Current assets
Cash and cash equivalents		3			298,914				308,912
Trade and other receivables		4			126,922				84,412
Income tax prepayments					12,247				18,076
Inventories		5			508,058				460,610
Prepayments					25,671				5,729
Total<br> current asset					971,812				877,739
Non-current assets
Miscellaneous receivables,net		4			22,446				5,215
Financial instruments designated at fair value<br> through other comprehensive income		15			692				692
Derivative financial instruments		15			123,489				42,247
Property, plant and equipment		6			1,961,765				2,014,508
Intangible assets					49,756				49,640
Goodwill					4,459				4,459
Deferred income tax assets					9,660				15,618
Right of use asset		7			5,056				6,006
Other assets					106				160
Total<br> non-current asset					2,177,429				2,138,545
Total<br> assets					3,149,241				3,016,284
Liability and equity
Current liabilities
Trade and other payables		8			211,989				180,190
Dividends payable		8			9,536				7,686
Financial obligations		9 y 15			233,448				65,232
Lease liabilities		7			1,804				1,531
Income tax payables					10,674				1,051
Provisions		10			15,644				9,380
Total<br> current liabilities					483,095				265,070
Non-current liabilities
Financial obligations		9 y 15			1,332,349				1,203,352
Lease liabilities		7			4,680				5,102
Non-current provisions		10			34,702				25,341
Deferred income tax<br> liabilities					149,733				149,864
Total<br> non-current liabilities					1,521,464				1,383,659
Total<br> liability					2,004,559				1,648,729
Equity
Capital stock					423,868				423,868
Investment shares					40,279				40,279
Investment shares holds in treasury					(121,258	)			(121,258	)
Additional paid-in capital					432,779				432,779
Legal reserve					168,636				168,636
Other accumulated comprehensive results					(19,628	)			(33,378	)
Retained earnings					220,006				456,629
Total<br> equity					1,144,682				1,367,555
Total<br> liability and equity					3,149,241				3,016,284

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

F-2

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated statements of profit or loss

For the three and nine-month periods ended September 30, 2021 and September 30, 2020 (unaudited)

				For<br> the three-month<br> period ended<br> September 30,								For<br> the nine-month <br><br>period ended<br><br>September 30,
		Note		2021				2020				2021				2020
				S/(000)				S/(000)				S/(000)				S/(000)
Sales of<br> goods		12			507,170				407,393				1,412,898				820,996
Cost<br> of sales					(358,767	)			(276,263	)			(1,014,868	)			(595,713	)
Gross<br> profit					148,403				131,130				398,030				225,283
Operating<br> income (expense)
Administrative<br> expenses					(50,675	)			(36,200	)			(144,977	)			(109,778	)
Selling<br> and distribution expenses					(14,204	)			(9,427	)			(42,559	)			(31,420	)
Other<br> operating income (expense), net					(93	)			327				336				(317	)
Total<br> operating expenses, net					(64,972	)			(45,300	)			(187,200	)			(141,515	)
Operating<br> profit					83,431				85,830				210,830				83,768
Other<br> income (expenses)
Finance<br> income					1,524				748				2,304				2,445
Finance<br> costs					(24,371	)			(23,172	)			(66,261	)			(66,985	)
Cumulative<br> net loss on settlement of derivative financial instruments					-				-				(1,569	)			-
Net<br> profit for valuation of trading derivative financial instruments					140				610				640				5,001
Gain<br> (loss) from exchange difference, net					510				(1,454	)			927				(8,350	)
Total<br> other expenses, net					(22,197	)			(23,268	)			(63,959	)			(67,889	)
Profit<br> before income tax					61,234				62,562				146,871				15,879
Income<br> tax expense		11			(19,118	)			(17,370	)			(45,290	)			(5,512	)
Profit<br> for the period					42,116				45,192				101,581				10,367
Earnings<br> per share
Basic<br> profit for the period attributable to equity holders of common shares and investment shares of the parent (S/ per share)		14			0.10				0.11				0.24				0.02

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

F-3

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated statements of other comprehensive income

For the three and nine-month periods ended September 30, 2021 and September 30, 2020 (unaudited)

				For<br> the three-month <br><br>period ended<br><br> September 30,								For<br> the nine-month<br><br> period ended<br><br> September 30,
		Note		2021				2020				2021				2020
				S/(000)				S/(000)				S/(000)				S/(000)
Profit<br> for the period					42,116				45,192				101,581				10,367
Other<br> comprehensive income
Other<br> comprehensive income to be reclassified to profit or loss in subsequent periods:
Net<br> (loss) gain on cash flow hedges		15(a)			13,071				(2,594	)			19,503				(821	)
Deferred<br> income tax		11			(3,856	)			766				(5,753	)			243
Other<br> comprehensive income for the period, net of income tax					9,215				(1,828	)			13,750				(578	)
Total<br> comprehensive income for the period, net of income tax					51,331				43,364				115,331				9,789

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

F-4

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated statements of changes in equity

For the nine-month period ended September 30, 2021 and September 30, 2020 (unaudited)

		Attributable<br> to equity holders of the parent
		Capital<br> <br> stock				Investment<br><br> shares				Treasury<br><br> shares				Additional<br><br> paid-in<br> capital				Legal<br><br> reserve				Unrealized<br> gain on<br> financial<br> instruments<br> designated at fair value				Unrealized<br> gain on <br>cash flow hedge				Retained<br> earnings				Total<br> <br> equity
		S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)
Balance<br> as of January 1, 2020			423,868				40,279				(121,258	)			432,779				168,636				(2,103	)			(17,750	)			497,200				1,421,651
Profit<br> for the period			-				-				-				-				-				-				-				10,367				10,367
Other<br> comprehensive income			-				-				-				-				-				-				(578	)			-				(578	)
Total<br> comprehensive income			-				-				-				-				-				-				(578	)			10,367				9,789
Balance<br> as of September 30, 2020			423,868				40,279				(121,258	)			432,779				168,636				(2,103	)			(18,328	)			507,567				1,431,440
Balance<br> as of January 1, 2021			423,868				40,279				(121,258	)			432,779				168,636				(14,463	)			(18,915	)			456,629				1,367,555
Profit<br> for the period			-				-				-				-				-				-				-				101,581				101,581
Other<br> comprehensive income			-				-				-				-				-				-				13,750				-				13,750
Total<br> comprehensive income			-				-				-				-				-				-				13,750				101,581				115,331
Dividends,<br> note 8			-				-				-				-				-				-				-				(338,204	)			(338,204	)
Balance<br> as of September 30, 2021			423,868				40,279				(121,258	)			432,779				168,636				(14,463	)			(5,165	)			220,006				1,144,682

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

F-5

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated statements of cash flows

For the three and nine-month period ended September 30, 2021 and September 30, 2020 (unaudited)

				For<br> the three-month<br><br> period ended<br><br> September 30								For<br> the nine-month<br><br> period ended<br><br> September 30
		Note		2021				2020				2021				2020
				S/(000)				S/(000)				S/(000)				S/(000)
Operating<br> activities
Profit  before<br> income tax					61,234				62,562				146,871				15,879
Non-cash<br> adjustments to reconcile profit before income tax to net cash flows
Depreciation<br> and amortization					33,853				34,731				101,538				103,383
Finance<br> costs					24,371				23,172				66,261				66,985
Long-term<br> incentive plan		13			3,060				1,440				6,699				4,319
Net<br> gain on settlement of trading derivative financial instruments					-				-				1,569				-
Estimate<br> expected credit loss		4			324				111				1,517				2,287
Unrealized<br> exchange difference related to monetary transactions					(6,929	)			305				(13,831	)			6,319
Finance<br> income					(1,524	)			(748	)			(2,304	)			(2,445	)
Net<br> gain on disposal of property, plant and equipment		6			(170	)			(677	)			(1,329	)			(2,309	)
Net<br> gain on the valuation of trading derivative financial instruments					(140	)			(610	)			(640	)			(5,001	)
Other<br> operating, net					2,266				(77	)			2,701				(1,367	)
Working<br> capital adjustments
(Increase)<br> decrease in trade and other receivables					(26,549	)			(7,547	)			(37,712	)			27,932
(Increase)<br> decrease in prepayments					1,647				(553	)			(19,942	)			127
(Increase)<br> decrease in inventories					(8,154	)			69,111				(47,785	)			62,437
Increase<br> in trade and other payables					37,295				58,885				55,140				15,510
					120,584				240,105				258,753				294,056
Interests<br> received					2,145				1,091				3,969				1,685
Interests<br> paid					(35,224	)			(36,569	)			(67,848	)			(68,007	)
Income<br> tax paid					(14,674	)			(3,661	)			(38,932	)			(18,255	)
Net<br> cash flows provided by operating activities					72,831				200,966				155,942				209,479

F-6

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Interim condensed consolidated statements of cash flows (continued)

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				For<br> the three-month <br><br>period ended<br> September 30,								For<br> the nine-month <br><br>period ended<br> September 30,
		Note		2021				2020				2021				2020
				S/(000)				S/(000)				S/(000)				S/(000)
Investing activities
Proceeds<br> from sale of property, plant and equipment					440				1,567				3,694				3,368
Collection<br> of loan granted to third parties					145				-				427				91
Purchase<br> of property, plant and equipment					(10,981	)			(5,327	)			(40,378	)			(23,553	)
Loans<br> granted to related parties					(17,122	)			-				(17,122	)			-
Purchase<br> of intangibles assets					(2,145	)			(657	)			(6,133	)			(3,466	)
Redemption<br> of term deposits with original maturity greater than 90 days					-				31,000				-				158,990
Opening<br> of term deposits with original maturity greater than 90 days.					-				-				-				(208,990	)
Loans<br> granted to third parties					-				(1,776	)			-				(4,189	)
Net<br> cash flows provided by (used in) investing activities					(29,663	)			24,807				(59,512	)			(77,749	)
Financing<br> activities
Loan<br> received		9			220,000				578,920				220,000				791,270
Income<br> from settlement of derivative financial instrument					-				-				3,879				-
Dividends<br> returned					35				52				232				292
Dividends<br> paid					(336,106	)			(12	)			(336,586	)			(45,918	)
Payment<br> of hedge finance cost					(8,012	)			(7,953	)			(15,214	)			(15,685	)
Payment<br> of lease liabilities		7			(612	)			(640	)			(1,786	)			(1,171	)
Loan<br> paid					-				(609,465	)			-				(609,465	)
Payment<br> of bank overdraft					-				(70,691	)			-				(70,921	)
Bank<br> overdraft					-				-				-				70,921
Net<br> cash flows (used in) provided by financing activities					(124,695	)			(109,789	)			(129,475	)			119,323
Net<br> increase (decrease) in cash and cash equivalents					(81,527	)			115,984				(33,045	)			251,053
Net<br> foreign exchange difference					11,789				2,051				23,047				1,666
Cash<br> and cash equivalents at the beginning of the period					368,652				202,950				308,912				68,266
Cash<br> and cash equivalents at the end of the period		3			298,914				320,985				298,914				320,985
Transactions<br> with no effect in cash flows:
Unrealized<br> exchange difference related to monetary transactions					(6,929	)			305				(13,831	)			6,319
Recognition<br> of right-of-use assets and lease liabilities during the period		7			-				-				217				7,504

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

F-7

Cementos Pacasmayo S.A.A. and Subsidiaries

Notes to interim condensed consolidated financial statements (unaudited)

As of September 30, 2021 and 2020, and December 31, 2020

1.	Economic<br> activity
(a)	Economic<br> activity -
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Cementos Pacasmayo S.A.A. (hereinafter “the Company”) was incorporated in 1957 and, in accordance with the General Law of Peruvian Companies, is an open stock corporation with publicly traded share. The Company is a subsidiary of Inversiones ASPI S.A., which holds 50.01 percent of the Company’s common shares as of September 30, 2021, December 31, 2020 and September 30, 2020.

The address registered by the Company is Calle La Colonia No.150, Urbanización El Vivero, Santiago de Surco, Lima, Peru.

The main activity of the Company is the production and commercialization of cement, precast, concrete and quicklime in the northern region of Peru.

The interim condensed consolidated financial statements of the Company and its subsidiaries (hereinafter the “Group”) as of September 30, 2021 and for the nine-month period then ended, were approved for issuance by the Company’s Management on October 26, 2021. The consolidated financial statements as of December 31, 2020 have been approved by the General Meeting of Shareholders, on March 23, 2021.

(b)	COVID<br> 19 -

COVID-19, an infectious disease caused by a new virus, was declared a world-wide pandemic by the World Health Organization (“WHO”) on March 11 2020.The measures to slow the spread of COVID-19 have had a significant impact on the global economy.

On March 15, 2020, the Peruvian government declared a nationwide state of emergency, effectively shutting down all business considered non-essential (with exception of food production and commercialization, pharmaceuticals and health). As a result, since that date, we shut-down our three plants until the Peruvian government allowed us to restart production and commercial activities on May 20, 2020.

On August 14, 2021 the Government has decided to extend the state of health emergency nationwide for 180 calendar days from September 3, 2021, to March 1, 2022 in order to continue with the prevention, control and health care actions for the protection of the population of the entire country.

F-8

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

During the halt period, we were unable to generate income; however, the Company largely returned to the operating levels prior to the shut-down as of the month of August 2020. The Group has prepared interim condensed consolidated financial statements until September 30 2021 on a going concern basis, which assumes continuity of current business activities and the realization of assets and settlement of liabilities in the ordinary course of business.

Regarding financial obligations, we have not yet seen any changes in our access and cost of funding, however, at the beginning of the nationwide emergency state we took a bank overdraft line and short-term loans as a precautionary measure in order to cover our working capital needs, some of these loans have already been canceled and others are still outstanding as shown in note 9.

The Company has taken various measures to preserve the health of its employees and to prevent contagion in its administrative and operational areas, such as remote work, rigorous cleaning of work environments, distribution of personal protective equipment, test of suspicious cases and body temperature measurement.

2.	Basis<br> of preparation and changes to the Group’s accounting policies
2.1	Basis<br> of preparation -
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The interim condensed consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reportingas issued by the International Accounting Standards Board (IASB). The interim condensed consolidated financial statements have been prepared on a historical cost basis, except for financial instruments designated at fair value through other comprehensive income (OCI) and derivatives financial instruments that have been measured at fair value. The interim condensed consolidated financial statements are presented in soles and all values are rounded to the nearest thousand (S/000), except when otherwise indicated. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Management consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with Group’s annual consolidated financial statements as of December 31, 2020.

New standards, interpretations and amendments

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with the policies considered in the preparation of the consolidated financial statements of the Group at December 31, 2020, except for the adoption of new standards effective as of 1 January 2021. The standards and interpretations relevant to the Group, that are effective since January 1, 2021 are disclosed below.

F-9

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

-	Amendments to IFRS 7, IFRS 9 and IAS 39 Interest Rate Benchmark Reform

Theamendments to IFRS 9 and IAS 39 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedgingrelationships that are directly affected by interest rate benchmark reform, “LIBOR”. A hedging relationship is affected ifthe reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument.These amendments have no impact on the consolidated financial statements of the Group since it does not have financial debt agreed withthe reference interest rate “LIBOR” or associated hedging relationships.

The Group has not adopted in advance any other standard, interpretation or modification that has been issued but has not yet entered into force.

2.2	Basis<br> of consolidation -<br><br><br><br> The interim condensed consolidated financial statements comprise the financial statements<br> of the Company and its subsidiaries as of September 30, 2021 and 2020.

As of September 30, 2021 and 2020, there was no changes in the participation of the common shares that the Company’s had on its subsidiaries; the main activities and information about subsidiaries are revealed on the consolidated financial statements as of December 31, 2020.

2.3	Seasonality<br> of operations -<br><br><br><br> Seasonality is not relevant to the Group’s activities.

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3.	Cash<br> and cash equivalents
(a)	This<br> caption consists of the following:
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		As<br> of <br>September 30, <br>2021				As<br> of <br>December 31, <br>2020
---	---	---	---	---	---	---	---	---
		S/(000)				S/(000)
Cash on hand			235				177
Cash at banks (b)			231,491				22,510
Term deposits with original<br> maturities of ninety days or less (c)			67,188				286,225
			298,914				308,912
(b)	Cash<br> at banks is denominated in local and foreign currencies, is deposited in domestic and foreign<br> banks and is freely available. The cash at banks interest yield is based on daily bank deposit<br> rates.
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(c)	The<br> short-term deposits held in domestic banks were freely available and earned interest at the<br> respective short-term market rates.
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F-10

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

4.	Trade<br> and other receivables

As of September 30, 2021 and December 31, 2020 this caption mainly include trade receivables, value-added tax credit (VAT), interest receivables and accounts receivables from related parties. At those dates, approximately S/58,703,000 and S/46,484,000, respectively of the trade receivables were guaranteed by banks guarantees and mortgages. These amounts correspond to 56 percent and 63 percent of the trade receivables as of that dates, respectively.

As of September 30, 2021 and 2020, the Group recorded S/1,517,000 and S/2,287,000, respectively, related to the provision for expected credit losses for trade receivables, which are presented in the caption “Sales and distribution expenses” of the interim condensed consolidated statement of income and; correspond to the best estimate of Management considering the current situation. The Group’s Management will continue evaluating the conditions of its client portfolio and, if deemed necessary, the corresponding provisions will be made.

The movement of the allowance for expected credit losses on trade and others receivable for the three-month period ended as of September 30, 2021 and 2020 is as follows:

		2021				2020
		S/(000)				S/(000)
Opening balance			14,358				12,781
Additions			1,517				2,287
Recoveries and others			17				(7	)
Ending balance			15,892				15,061

On March 22, 2021, the Company received Tax Court Resolution N° 00905-4-21 that declares the calculation of Mining Royalty should be based on gross sale of the final product (cement) for the years 2008 and 2009. This is an opposite position to what is established by the Constitutional Court in the STC Exp. N° 1043-2013-PA/TC that declares founded the writ of protection presented by the Company and its right to calculate the Mining Royalty exclusively based on the value of the mining component, without considering in any way the value of the final products derived from industrial and manufacturing processes.

Faced with the threat of a forced collection of this debt notified with coercive resolution by SUNAT; the Company made, under protest, partial payments of the debt arbitrarily placed in collection. These payments as of September 30, 2021 amount to approximately S/ 17,600, 000 and are presented in the caption “Miscellaneous receivables, net”, non-current assets. To date, the Company has already initiated the corresponding legal actions to recover said payments and in the opinion of Management and its external legal advisors, it has a high probability of obtaining a favorable result.

5.	Inventories

As of September 30, 2021 and December 31, 2020 includes goods and finished products, work in progress, raw materials and other supplies to be used in the production process.

F-11

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

6.	Property,<br> plant and equipment, net

During the three- and nine-month periods ended September 30, 2021 the Group’s additions amounted approximately to S/14,093,000 and S/42,513,000, respectively (S/7,311,000 and S/20,665,000 during the three- and nine-month periods ended September 30, 2020, respectively).

Assets with a net book value of S/939,000 were sold during the nine-month period ended September 30, 2021 (S/1,695,000 for the nine-month period ended September 30, 2020), resulting in a net gain on disposal of S/1,287,000 (S/2,309,000 for the nine-month period ended September 30, 2020).

As of September 30, 2021 the Group maintains accounts payable related to the acquisition of property, plant and equipment for S/2,134,000 (S/4,830,000 as of December 31, 2020).

7.	Leases

The Group has lease contracts with third parties, mainly a 5-year lease contract of trucks.

The Group also leases certain minor equipment for less than 12 months, the Group has decided to apply the recognition exemption for short term leases (less than 12 months) and for leases of low value assets. The expense for this type of lease amounted to S/992,000 for the nine-month period ended September 30, 2021 (S/1,255,000 as of September 30, 2020) and was recognized in the “Administrative expenses” caption of the interim condensed consolidated statement of profit or loss.

F-12

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

The movement of the right of use assets recognized by the Group is shown below:

		Transportation<br> units				Other				Total
		S/(000)				S/(000)				S/(000)
Cost -
Balance as of January 1, 2020		-				109				109
Additions			7,504				-				7,504
Sales and/or retirement			-				(72	)			(72	)
Balance as of September<br> 30, 2020			7,504				37				7,541
Balance as of January 1, 2021			7,504				38				7,542
Additions			217				-				217
Sales and/or retirement			-				(3	)			(3	)
Balance as of September<br> 30, 2021			7,721				35				7,756
Accumulated depreciation<br> -
Balance as of January 1, 2020			-				63				63
Additions			1,126				26				1,152
Sales and/or retirement			-				(61	)			(61	)
Balance as of September<br> 30, 2020			1,126				28				1,154
Balance as of January 1, 2021			1,501				35				1,536
Additions			1,164				-				1,164
Balance as of September<br> 30, 2021			2,665				35				2,700
Net book value
As of December 31,<br> 2020			6,003				3				6,006
As of September 30,<br> 2021			5,056				-				5,056

F-13

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

---

The movement of the lease liabilities recognized by the Group is shown below:

		2021				2020
		S/(000)				S/(000)
Balance as<br> of January, 1			6,633				57
Additions			217				7,504
Financial interest expense			285				303
Lease payments			(1,786	)			(1,171	)
Disposals			-				(19	)
Others			1,135				285
Balance<br> as of September 30			6,484				6,959
Maturity
Current portion			1,804				1,512
Non-current<br> portion			4,680				5,447
Balance<br> as of September 30			6,484				6,959

The future cash disbursements in relation to lease liabilities have been disclosed in note 9.

8.	Trade,<br> dividend and other payables

As of September 30, 2021 and December 31, 2020, this caption includes trade payables, account payables to related parties, interest payable, dividends payable among other minor payables.

On April 29, 2021, the Board of Directors agreed to distribute dividends amounting to S/338,204,000 (this amount does not include dividends corresponding to treasury shares), from unrestricted earnings for the years 2014 to 2019, which were paid during the first days of July of the year 2021.

As of September 30, 2021 dividends payable amounted to S/9,536,000 (S/7,686,000 as of December 31, 2020).

9.	Financial<br> Obligations

Corporate bonds

On January 31, 2019, corporate bonds were issued in soles for S/260,000,000 at an interest rate of 6.688 percent per year and maturity of 10 years and; 15-year bonds for S/310,000,000 at an interest rate of 6.844 percent per year. As of September 30, 2021 and as of December 31, 2020 the corporate bonds issued in US Dollars amounts to US$131,612,000 with an annual interest rate of 4.5 per cent and maturity in 2023.

For the nine-month period ended September 30, 2021 and 2020, the corporate bonds generated interests that have been recognized in the interim condensed consolidated financial statement of profit or loss for S/47,681,000 and S/45,550,000, respectively.

F-14

---

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

Bank loans

As of September 30, 2021 and December 31, 2020, the Company maintains two loans of S/79,500,000 each maturing in January 2022 with an effective annual interest rate of 2.62 percent. Also, as of December 31, 2020, the Company maintains a loan of US$18,000,000 maturing in July 2021 with an effective annual interest rate of 2.20 percent, this loan was renegotiated with maturity in July 2022 and an effective annual interest rate of 1.80 percent.

On July 1, 2021 the Company acquired two medium-term promissory notes with Banco de Crédito del Perú S.A. for the amount of S/ 110,000,000 each one, with maturity date December 23, 2022 and an effective annual interest rate of 1.55 percent.

Medium-term Corporate Loan under “Club deal” modality:

On August 6, 2021, the Company established the conditions of a medium-term corporate loan under “Club Deal” modality with Banco de Crédito del Perú S.A. and Scotiabank Perú S.A.A. The loan amounts to S / 860,000,000 that will allow the payment of all the financial obligations that the company maintains with maturity until February 2023 and will be disbursed based on the maturity of each of them, so it would be expected that the first disbursement will be on January 2022. The loan conditions include a grace / availability period of 18 months from August 6 and a payment term of 7 years from the last disbursement, which is estimated for February 2023. Since that date, the loan will be paid in 22 equal quarterly installments and has an annual interest rate of 5.82 percent.

As part of the loan conditions, the Company would assume the following obligations:

I.	Comply<br>with the following financial safeguards:
a.	Debt<br>Ratio (Financial Debt / EBITDA) <= 3.50x
---	---
b.	Debt<br>Service Coverage Ratio (FCSD / SD)> = 1.15x
---	---
c.	Debt<br>Service Coverage Ratio (EBITDA / SD) = 1.50x
---	---

These financial safeguards will be calculated and verified at the end of each calendar quarter, considering the information of consolidated financial statements of the Company for the last 12 months, prepared in accordance with International Financial Reporting Standards - IFRS.

II.	It<br>maintains the following main obligations to do:
a.	Subordinate<br>any obligation the Company had or may have to this loan.
---	---
b.	Maintain<br>the loan with a status equal to other senior financing of the Company.
---	---
c.	Keep<br>your assets in good condition and properly insured.
---	---
d.	Maintain<br>all licenses, authorizations, concessions, permits, titles and rights required by government authorities.
---	---
III.	It<br>maintains the following obligations not to do:
---	---
a.	Refrain<br>from paying dividends, reducing capital stock or any other distribution to its shareholders if this event make the Company not comply<br>with the obligations assumed.
---	---
b.	That<br>the Company and its subsidiaries participate in processes of liquidation, transformation, corporate reorganization, acquisition of companies,<br>merger or spin-off.
---	---

F-15

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

c.	Transfer,<br>sell, alienate, donate or give in usufruct, lease, give in fiduciary domain, encumber their assets, income flows and / or collection<br>rights.
d.	Grant<br>financing, personal or real guarantees in favor of third parties.
---	---

Financial covenants –

The contracts for corporate bonds issued in US dollars and soles have the following covenants to limit incurring indebtedness for the Company and its guarantor subsidiaries, which are measured prior to the following transactions: issuance of debt or equity instruments, merger with another company or disposal or rental of significant assets. The covenants are the following:

-	The<br>debt service coverage ratio (includes amortization plus interest) must be at least 2.5 to 1.
-	The<br>financial debt to Ebitda ratio may not be greater than 3.5 to 1.
---	---

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

		In<br> sight				Less<br> than 3 months				3<br> to 12 months				1<br> to 5 <br> years				More<br> than 5 years				Total
		S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)
As of September 30, 2021
Financial<br> obligations			-				-				233,448				634,290				570,000				1,437,738
Interests			-				-				65,524				170,855				154,851				391,230
Trade<br> and other payables			-				137,382				63,557				-				-				200,939
Dividends<br> payable			9,536				-				-				-				-				9,536
Hedge<br> finance cost payable			-				-				16,182				8,091				-				24,273
Lease<br> liabilities			-				452				1,427				4,605				-				6,484
As<br> of December 31, 2020
Financial<br> obligations			-				-				65,232				572,993				570,000				1,208,225
Interests			-				30,033				35,056				186,607				193,454				445,150
Trade<br> and other payables			-				134,567				38,235				-				-				172,802
Dividends<br> payable			7,686				-				-				-				-				7,686
Hedge<br> finance cost payable			-				8,032				8,032				24,096				-				40,160
Lease<br> liabilities			-				-				383				1,148				5,102				6,633

---

10.	Provisions

As of September 30, 2021 and December 31, 2020, this caption includes workers’ profit sharing, provision for contingencies, long-term incentive plan and rehabilitation provision.

F-16

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

11.	Income<br> tax

The Group calculates income tax expense of the period using the tax rate that would be applicable to the expected total annual earnings.

The major components of the income tax expense in the interim condensed consolidated statement of profit or loss and statement of other comprehensive income are:

	For the three-month<br><br> period ended<br> September 30,						For the nine-month<br><br> period ended<br> September 30,
	2021			2020			2021			2020
	S/(000)			S/(000)			S/(000)			S/(000)
Current income tax		(18,365	)		(3,696	)		(45,215	)		(5,609	)
Deferred income tax		(753	)		(13,674	)		(75	)		97
Total income tax expense (benefit) recognized in the interim consolidated statements of profit or loss		(19,118	)		(17,370	)		(45,290	)		(5,512	)
Income tax recognized in other comprehensive income		(3,856	)		766			(5,753	)		243
Total income tax		(22,974	)		(16,604	)		(51,043	)		(5,269	)

The movement of the Group’s deferred income tax assets and liabilities is shown below:

	For the three-month <br><br>period ended<br> September 30,						For the nine-month <br><br>period ended<br> September 30,
	2021			2020			2021			2020
	S/(000)			S/(000)			S/(000)			S/(000)
(Decrease) increase of deferred income tax asset (*)		(3,779	)		1,551			(5,958	)		9,164
Increase of deferred income tax liability(**)		(830	)		(14,459	)		130			(8,824	)
Total variation of deferred income tax		(4,609	)		(12,908	)		(5,828	)		340
Deferred income tax expense recognized in interim condensed consolidated statements of profit or loss		(753	)		(13,674	)		(75	)		97
Deferred income tax recognized in other comprehensive income		(3,856	)		766			(5,753	)		243
Total variation of deferred income tax		(4,609	)		(12,908	)		(5,828	)		340
(*)	As<br> of September 30, 2020 corresponds to the increase of tax-loss carry forward in the subsidiaries<br> Distribuidora Norte Pacasmayo S.R.L. and Dinoselva Iquitos S.A.C.
---	---
(**)	As<br> of September 30, 2020 corresponds to difference of bases.
---	---

F-17

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

---

Following is the composition of deferred tax related to items recognized in other comprehensive income:

	For the three-month <br><br>period ended<br> September 30,					For the nine-month<br><br> period ended<br> September 30,
	2021			2020		2021			2020
	S/(000)			S/(000)		S/(000)			S/(000)
(Loss) gain unrealized on derivative financial instruments		(3,856	)		766		(5,753	)		243
Total deferred income tax in OCI		(3,856	)		766		(5,753	)		243
12.	Sales<br> of goods
---	---

This caption is made up as follows:

	Cement, concrete and precast		Quicklime		Construction Supplies		Other		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
For the three-month period ended September 30, 2021
Revenue from external customers		469,131		7,854		30,185		-		507,170
Revenue from external customers		469,131		7,854		30,185		-		507,170
For the nine-month period ended September 30, 2021
Revenue from external customers		1,305,234		23,970		83,466		228		1,412,898
Revenue from external customers		1,305,234		23,970		83,466		228		1,412,898
For the three-month period ended September 30, 2020
Revenue from external customers		368,143		8,985		29,855		410		407,393
Revenue from external customers		368,143		8,985		29,855		410		407,393
For the nine-month period ended September 30, 2020
Revenue from external customers		747,858		22,231		50,246		661		820,996
Revenue from external customers		747,858		22,231		50,246		661		820,996

F-18

---

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

---

13.	Related<br> party transactions

During the nine-months periods ended September 30, 2021 and 2020, the Group carried out the following main transactions with Inversiones ASPI S.A. and its related parties:

		For<br> the three-month <br><br>period ended<br><br> September 30,								For<br> the nine-month<br><br> period ended<br><br> September 30,
		2021				2020				2021				2020
		S/(000)				S/(000)				S/(000)				S/(000)
Income
Inversiones ASPI S.A.
Fees from office lease			5				3				15				9
Fees for management and administrative services			25				(206	)			73				66
Compañía Minera<br> Ares S.A.C. (Ares)
Fees from land rental services			310				343				890				1,003
Fees from leasing of parking			87				87				307				252
Fosfatos del Pacífico<br> S.A. (Fospac)
Fees from office lease			5				7				14				21
Fees for management and administrative services			12				(57	)			143				523
Fossal S.A.A.  (Fossal)
Fees from office lease			3				3				13				11
Fees for management and administrative services			14				16				39				36
Asociación Sumac<br> Tarpuy
Fees from office lease			5				-				15				-
Expenses
Security services provided by Compañía<br> Minera Ares S.A.C.			660				475				1,980				1,425

F-19

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

As a result of these and other transactions, the Group had the following rights and obligations with Inversiones ASPI S.A. and its related parties as of September 30, 2021 and December 31, 2020:

	September 30, 2021				December 31, 2020
	Accounts <br> receivable		Accounts <br> payable		Accounts <br>  receivable		Accounts <br> payable
	S/(000)		S/(000)		S/(000)		S/(000)
Fossal S.A.A.		14,514		-		-		-
Fosfatos del Pacífico S.A.		4,122		8		1,449		-
Compañía Minera Ares S.A.C.		542		1,455		678		1,348
Inversiones ASPI S.A.		-		105		-		211
Other		72		-		85		-
		19,250		1,568		2,212		1,559

Outstanding balances are interest free, except for the loans granted in August 2021 to Fossal S.A.A. and Fosfatos del Pacífico S.A. for the amounts of US3,477,000 and US700,000 respectively, which have an effective annual interest rate of 1.6% percent, these loans were partially collected in October 2021. There have been no guarantees provided or received from any related party. As of September 30, 2021 and December 31, 2020, the Group has not recorded any allowance for expected credit losses on receivables from related parties.

Compensationof key management personnel of the Group –

The compensation paid to key management personnel includes expenses for profit-sharing, compensation and other concepts for members of the Board of Directors and the key management. The total short-term compensations expense amounted to S/6,395,000 and S/16,665,000 during the three and nine-month periods ended September 30, 2021, respectively (S/5,897,000 and S/18,388,000, during the three and nine-month periods ended September 30, 2020), and the total long-term compensations expense amounted to S/3,060,000 and S/6,701,000 during the three and nine-month periods ended September 30, 2021, respectively (S/1,440,000 and S/4,319,000 during the three and nine-month period ended September 30, 2020, respectively). The Group does not compensate Management with post-employment or contract termination benefits or share-based payments.

14.	Earnings<br> per share (EPS)

Basic earnings per share amounts are calculated by dividing net profit for the nine-month period ended September 30, 2021 and 2020 by the weighted average number of common and investment shares outstanding during those periods.

The Group has no dilutive potential common shares as of September 30, 2021 and 2020.

F-20

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

Calculation of the weighted average number of shares and the basic earnings per share is presented below:

		For<br> the three-month<br><br> period ended<br><br> September 30,								For<br> the nine-month<br><br> period ended<br><br> September 30,
		2021				2020				2021				2020
		S/(000)				S/(000)				S/(000)				S/(000)
Numerator
Net<br> profit attributable to ordinary equity holders of the Parent			42,116				45,192				101,581				10,367

---

		For<br> the three-month <br><br>period ended September 30,								For<br> the nine-month<br><br> period ended September 30,
****	****	2021		****	****	2020		****	****	2021		****	****	2020		****
		S/(000)				S/(000)				S/(000)				S/(000)
Denominator
Weighted<br> average number of common and investment shares (thousands)			428,107				428,107				428,107				428,107
Basic<br> profit for common and investment shares			0.10				0.11				0.24				0.02

There have been no other transactions involving common and investment shares between the reporting date and the date of completion of these interim condensed consolidated financial statements.

15.	Financial assets and liabilities
(a)	Financial<br> asset –
---	---

Derivatives assets of hedging –

Foreigncurrency risk –

As of September 30, 2021 the Group maintains Cross currency swap contracts for a nominal amount of US$132,000,000 (US$150,000,000 as of December 31, 2020), with maturity in 2023 and average rate of 2.97%. Of this total, US$131,612,000 have been designated as hedging instruments for Senior notes that are denominated in U.S. dollars, with the intention of reducing the foreign exchange risk.

The cash flow hedge of the expected future payments was assessed to be highly effective and an unrealized gain of S/19,503,000 and an unrealized loss of S/821,000 for the nine-month period ended September 30, 2021 and September 30, 2020 respectively included in the interim condensed consolidated statement of other comprehensive income. The amounts retained in other comprehensive income as of September 30, 2021 are expected to mature and affect the consolidated statement of profit or loss in 2023, settlement year of cross currency contracts.

Derivate assets from trading -

As of September 30, 2021 and 2020, cross currency swaps that do not have an underlying hedging relationship amounts to US$388,000 and US$18,388,000, respectively, have been designated as trading. The effect on profit or loss from its measurement at fair value was a gain of S/640,000 and S/5,001,000 for the nine-month period ended September 30, 2021 and 2020, respectively.

F-21

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

(b)	Fair values<br> and fair value accounting hierarchy –

Set out below is a comparison of the carrying amounts and fair values of financial instruments of the Group, as well as the fair value accounting hierarchy:

		Carrying<br> amount								Fair<br> value								Fair<br> value hierarchy
		2021				2020				2021				2020				2021/2020
		S/(000)				S/(000)				S/(000)				S/(000)
Financial<br> assets
Cash<br> and cash equivalents			298,914				308,912				298,914				308,912				Level<br> 1
Trade<br> and other receivables			130,669				89,139				130,669				89,139				Level<br> 2
Derivative<br> financial assets -“cross currency swaps”			123,489				42,247				123,489				42,247				Level<br> 2
Financial<br> instruments at fair value through other comprehensive income			692				692				692				692				Level<br> 3
Total<br> financial assets			553,764				440,990				553,764				440,990
Financial<br> liabilities
Trade<br> and other payables			200,939				169,712				200,939				169,712				Level<br> 2
Dividends<br> payable			9,536				7,686				9,536				7,686				Level<br> 2
Senior<br> notes			1,112,349				1,044,352				1,123,976				1,118,492				Level<br> 1
Fixed<br> rate notes			453,448				224,232				452,010				221,607				Level<br> 2
Total<br> financial liabilities			1,776,272				1,445,982				1,786,461				1,517,497

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy. As of September 30, 2021 and December 31, 2020, there were no transfers between the fair value hierarchies.

F-22

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

Management assessed that cash and term deposits, trade and other receivables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

-	The<br> fair value of cross currency swaps is measured by using valuation techniques where inputs<br> are based on market data. The most frequently applied valuation techniques include swap valuation<br> models, using present value calculations. The models incorporate various inputs, including<br> the credit quality of counterparties, foreign exchange, forward rates and interest rate curves.

A credit valuation adjustment (CVA) is applied to the “Over-The-Counter” derivative exposures to take into account the counterparty’s risk of default when measuring the fair value of the derivative. CVA is the mark-to market cost of protection required to hedge credit risk from counterparties in this type of derivatives portfolio. CVA is calculated by multiplying the probability of default (PD), the loss given default (LGD) and the expected exposure (EE) at the time of default.

A debit valuation adjustment (DVA) is applied to incorporate the Group’s own credit risk in the fair value of derivatives (that is the risk that the Group might default on its contractual obligations), using the same methodology as for CVA.

-	The<br> fair value of the quoted senior notes is based on the current quotations value at the reporting<br> date.
-	The<br> fair value of the promissory note is calculated using the results of cash flow discounted<br> at the indebtedness market rates effective as of the date of estimation.
---	---
16.	Commitments<br> and contingencies
---	---

Operating lease commitments – Group as lessor

As of September 30, 2021, the Group, as lessor, has a land lease with Compañía Minera Ares S.A.C., a related party of Inversiones ASPI S.A. This lease is annually renewable, and provided a rent for the nine-month period ended September 30, 2021 and 2020 for S/890,000 and S/1,003,000, respectively.

Capital commitments

As of September 30, 2021, the Group had no significant capital commitments.

Environmental matters

The Group exploration and exploitation activities are subject to environmental protection standards. Such standards are the same as those disclosed on the consolidated financial statement as of December 31, 2020.

---

F-23

---

Notes to interim condensed consolidated financial statements (unaudited)

(continued)

---

Taxsituation

The Company is subject to Peruvian tax law. As of September 30, 2021 and 2020, the income tax rate is 29.5 percent of the taxable profit after deducting employee participation, which is calculated at a rate of 8 to 10 percent of the taxable income.

For purposes of determining income tax, transfer pricing transactions with related companies and companies resident in territories with low or no taxation, must be supported with documentation and information on the valuation methods used and the criteria considered for determination. Based on the analysis of operations of the Group, Management and its legal advisors believe that as a result of the application of these standards will not result in significant contingencies for the Group as of September 30, 2021 and December 31, 2020.

During the four years following the year tax returns are filed, the tax authority has the power to review and, as applicable, correct the income tax computed by each individual company.

The income tax and value-added tax returns for the following years are open for review by the tax authority

		Years open to review by Tax Authorities
Entity		Income<br> tax		Value-added<br> tax
Cementos Pacasmayo S.A.A.		2016-2020		Dec.2016-2021
Cementos Selva S.A.		2016-2020		Dec.2016-2021
Distribuidora Norte Pacasmayo S.R.L.		2016-2020		Dec.2016-2021
Empresa de Transmisión Guadalupe S.A.C.		2016-2020		Dec.2016-2021
Salmueras Sudamericanas S.A.		2016-2020		Dec.2016-2021
Calizas del Norte S.A.C. (on liquidation)		2016-2020		Dec.2016-2021
Soluciones Takay S.A.C.		2019-2020		May to Dec.2019-2021

Due to possible interpretations that the tax authorities may give to legislation in effect, it is not possible to determine whether any of the tax audits that may be performed will result in increased liabilities for the Group. For that reason, tax or surcharge that could arise from future tax audits would be applied to the income during the period in which it is determined. However, in management’s opinion, any possible additional payment of taxes would not have a material effect on the interim condensed consolidated financial statements as of September 30, 2021 and the consolidated financial statements as of December 31, 2020.

Legal claim contingency

As of September 30, 2021, some third parties have commenced actions against the Group in relation with its operations which claims in aggregate represent S/11,718,000. From this total amount, S/3,441,000 corresponded to labor claims from former employees; S/7,681,000 linked to resolutions of determination and fine on the property tax of the periods 2009 to 2014 issued by the District Municipality of Pacasmayo and S/596,000 related to the tax assessments received from the tax administration corresponding to 2009 tax period, which was reviewed by the tax authority during 2012.

Management expects that these claims will be resolved within the next five years based on prior experience; however, the Group cannot assure that these claims will be resolved within this period because the authorities do not have a maximum term to resolve cases.

The Group has been advised by its legal counsel that it is only possible, but not probable, that these actions will succeed. Accordingly, no provision for any liability has been made in these interim condensed consolidated financial statements.

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Mining royalty

The Group signed agreements with third parties and with Peruvian Government related to the use of concessions for extraction activities on process of cement production. The information of the payment of royalties are reveled on the consolidated financial statements of the Group as of December 31, 2020.

F-24

Notes to interim condensed consolidatedfinancial statements (continued)

17.	Segment<br> information

For management purposes, the Group is organized into business units based on their products and activities, and have three reportable segments as follows:

-	Production<br> and marketing of cement, concrete and precast in the northern region of Peru.
-	Sale of construction<br> supplies in the northern region of Peru.
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-	Production<br> and marketing of quicklime in the northern region of Peru.
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No operating segments have been aggregated to form the above reportable operating segments.

Management monitors the profit before income tax of each business units separately for the purpose of making decisions about resource allocation and performance assessment.

Transfer prices between operating segments are on an arm’s length basis in a similar manner to transactions with third parties.

		Revenues<br> from external customers								Gross<br> margin								Profit<br> (loss) before income tax								Income<br> <br>tax								Profit<br> (loss) for the period
		2021				2020				2021				2020				2021				2020				2021				2020				2021				2020
		S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)				S/(000)
For the three-month period ended September 30,
Cement,<br> concrete and precast			469,131				368,143				147,005				128,219				63,473				61,650				(19,818	)			(17,393	)			43,655				44,257
Construction<br> supplies			30,185				29,855				696				1,638				(1,710	)			1,194				535				(243	)			(1,175	)			951
Quicklime			7,854				8,985				1,282				1,481				701				1,016				(217	)			(368	)			484				648
Other			-				410				(580	)			(208	)			(1,230	)			(1,298	)			382				634				(848	)			(664	)
Total			507,170				407,393				148,403				131,130				61,234				62,562				(19,118	)			(17,370	)			42,116				45,192
For<br> the nine-month period ended September 30,
Cement,<br> concrete and precast			1,305,234				747,858				393,294				220,835				152,540				18,615				(47,038	)			(6,462	)			105,502				12,153
Construction<br> supplies			83,466				50,246				2,334				2,216				(4,619	)			(648	)			1,424				225				(3,195	)			(423	)
Quicklime			23,970				22,231				2,857				2,659				1,165				1,187				(359	)			(412	)			806				775
Other			228				661				(455	)			(427	)			(2,215	)			(3,275	)			683				1,137				(1,532	)			(2,138	)
Total			1,412,898				820,996				398,030				225,283				146,871				15,879				(45,290	)			(5,512	)			101,581				10,367

F-25

Notesto interim condensed consolidated financial statements (unaudited)(continued)

		Segment<br> <br>assets				Other<br> <br>Assets (**)				Total<br> <br>asset				Total<br> liabilities <br>by segment
		S/(000)				S/(000)				S/(000)				S/(000)
As of September 30, 2021
Cement, concrete and precast			2,871,394				123,117				2,994,511				1,922,593
Construction supplies			47,945				-				47,945				81,885
Quicklime			74,570				-				74,570				-
Other (*)			31,151				1,064				32,215				81
Total			3,025,060				124,181				3,149,241				2,004,559
As of December 31, 2020
Cement, concrete and precast			2,806,803				37,068				2,843,871				1,590,105
Construction supplies			51,225				-				51,225				58,517
Quicklime			83,621				-				83,621				-
Other (*)			31,696				5,871				37,567				107
Total			2,973,345				42,939				3,016,284				1,648,729
	(*)	The “Other”<br> segment includes activities that do not meet the threshold for disclosure under IFRS 8.13<br> and represent non-material operations of the Group.
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(**)	As of September<br> 30, 2021 corresponds to the financial instruments designated at fair value through other<br> comprehensive income and to the fair value of derivative financial instruments (cross currency<br> swap) for approximately S/692,000 and S/123,489,000, respectively. As of December 31, 2020<br> corresponds to the financial instruments designated at fair value through other comprehensive<br> income for approximately S/692,000 and fair value of derivative financial instruments (cross<br> currency swap) for approximately S/42,247,000. The fair value of hedge derivative financial<br> instruments is allocated to the segment of cement, and the financial instruments designated<br> at fair value through other comprehensive income and the fair value of the trading derivative<br> financial instrument are presented as “Other”.
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Geographic information

As of September 30, 2021 and December 31, 2020, all non-current assets are located in Peru and all revenues are from Peruvian clients.

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F-26

Notes to interim condensed consolidatedfinancial statements (continued)

18.	Financial<br> risk management, objectives and policies

The Group´s main financial assets include cash and short-term deposits (with maturity less than 360 days) and trade and other receivables that derive directly from its operations. The Group also holds financial instruments designated at fair value through OCI, cash flow hedges instruments and derivative financial instruments of trading. The Group’s main financial liabilities comprise trade payables and other payables, loans and borrowings, with short-term and long-term maturities. The main purpose of these financial liabilities is to finance the Group’s operations.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. The Group’s senior management is supported by financial management that advises on financial risks and the appropriate financial risk governance framework for the Group. The financial management provides assurance to the Group’s senior management that the Group’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group´s policies and risk objectives.

The Management reviews and agrees policies for managing each of these risks as mentioned in the consolidated financial statements as of December 31, 2020.

Foreigncurrency risk -

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange relates primarily to the Group’s operating activities (when revenue or expense is denominated in a different currency from the Group’s functional currency).

The Group hedges its exposure to fluctuations on the translation into soles of its Senior Notes which are denominated in US dollars, by using cross currency swaps contracts, see note 15.

F-27

Notesto interim condensed consolidated financial statements (unaudited)(continued)

Foreigncurrency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate, with all other variables held constant. The impact on the Group’s profit before income tax is due to changes in the fair value of monetary assets and liabilities.

As<br> of September 30, 2021		Change<br> in US rate			Effect<br> on <br>consolidated profit <br>before tax
U.S. Dollar		%			S/(000)
			+5				10,732
			+10				21,465
			-5				(10,732	)
			-10				(21,465	)

All values are in US Dollars.

As of September<br> 30, 2020		Change<br> in US rate			Effect<br> on <br>consolidated profit <br>before tax
U.S. Dollar		%			S/(000)
			+5				2,426
			+10				4,853
			-5				(2,426	)
			-10				(4,853	)

All values are in US Dollars.

Liquidityrisk -

The Group monitors its risk of shortage of funds using a recurring liquidity planning tool.

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and debentures of long term. Access to fund sources is sufficiently available and debt maturing within 12 months can be rolled over under the same conditions with existing lenders, if necessary.

As of September 30, 2021 and December 31, 2020, no portion of the corporate bonds will mature in less than one year.

Riskmanagement activities –

As a result of its activities, the Group is exposed to the foreign currency exchange rate risk, thereof the Company has acquired hedging financial instruments to cover this risk. Since November 2014, the Group has hedged its exposure to foreign currency from its corporate bonds (denominated in US dollars). During the nine-month period ended September 30, 2021, there was moderate volatility in the US dollar exchange rate with respect to the soles, whose effects were partially mitigated by the exchange rate hedge maintained by the Company.

As of September 30, 2021 and December 31, 2020, except for the derivatives financial instruments (cross currency swaps) signed by the Company to hedge the foreign currency risk of its Senior Notes, the Group had no other financial instruments to hedge its foreign exchange risk, interest rates or market price (purchase price of coal) fluctuations.

F-28