Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q1 2019 Earnings Presentation
30 slides from Grupo Argos's earnings presentation, May 2019
Slide 1: Quarterly Earnings Presentation 1Q2019
Resultados Primer Trimestre del 2019 QUARTERLY EARNINGS PRESENTATION 1Q2019 Mayo 2019
Slide 2: Important Note
PRESENTACIÓN Resultados DE RESULTADOS Primer Trimestre TRIMESTRALES del 2019 Quarterly Earnings Presentation IMPORTANT NOTE This presentation contains certain forward-looking information and statements related to GRUPO ARGOS and its subsidiaries that are based on current knowledge of events, expecta
Slide 3: Results that strengthen the strategy led by the role of the holding company
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES RESULTS THAT STRENGTHEN THE STRATEGY LED BY THE ROLE OF THE HOLDING COMPANY COP 1,5 tn COP 1,7 tn USD 400 mm USD 40 mm GRUPO ARGOS DEBT ENERTOLIMA ASSETS QUIPORT BONDS GOAL BEST 2.0 USA 2019 COP 300 bn EPSA share Capital structure 1
Slide 4: Advances in profitability at a consolidated level
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES ADVANCES IN PROFITABILITY AT A CONSOLIDATED LEVEL 12 % 6 % 1 % 32 % REVENUES EBITDA NET INCOME NET CONTROLLING INCOME COP 3,7 tn COP 998 bn COP 223 bn COP 144 bn EBITDA Margin 27% *Excluding the sale of the self generation plants in
Slide 5: 2019 begins with application of IFRS 16
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES 2019 BEGGINS WITH APPLICATION OF IFRS 16 Rationale of IFRS 16: All leases are treated in a similar way to finance leases. Leases are ‘capitalised’ by recognizing the present value of the lease payments and showing them either as lea
Slide 6: EBITDA and net controlling income grow 6% and 32%, respectively
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS 1Q2019 EBITDA AND NET CONTROLLING INCOME GROW 6% AND 32%, RESPECTIVELY RELEVANT FIGURES Consolidated Income Statement 1. Quarter revenues grow 12%: COP billion mar-19 mar-18 Var.(%) 1 Revenues 3,721
Slide 7: Positive contribution in revenues from strategic businesses
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS 1Q2019 POSITIVE CONTRIBUTION IN REVENUES FROM STRATEGIC BUSINESSES CONTRIBUTION BY BUSINESS TO CONSOLIDATED REVENUE COP bn 12% Increase revenue YoY 12% 14% 1T2018 1Q2018 Cement Energy Real estate Por
Slide 8: Greater contribution from Cementos Argos on higher volumes and prices
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS 1Q2019 GREATER CONTRIBUTION FROM CEMENTOS ARGOS ON HIGHER VOLUMES AND PRICES CONTRIBUTION BY BUSINESS TO CONSOLIDATED EBITDA COP bn 10% * 6% Increase in EBITDA YoY 1T2018 1T2018 1Q2018 Cement Energy
Slide 9: Individual results: net income grows 26% excluding divestments
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES INDIVIDUAL RESULTS GRUPO ARGOS 1Q2019 UTILIDAD NETA CRECE 26% A/A EXCLUYENDO DESINVERSION DE EPSA Y AUTO GENERADORAS RELEVANT FIGURES Individual Income Statement COP bn mar-19 mar-18 Var.(%) 1 Revenue 308 851 -64% Costs and other ex
Slide 10: Grupo Argos controllable expenses decrease by 6% YoY
QUARTERLY QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS INDIVIDUAL RESULTS GRUPO ARGOS 1Q2019 GRUPO ARGOS CONTROLLABLE EXPENSES DECREASE BY 6% YOY 1. Revenue Distribution 1Q2019 COP bn 2. Equity Method Distribution 1Q2019 COP bn 852 76 Act.Financial Financiera
Slide 11: Grupo Argos debt decreases by 16% YoY
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS INDIVIDUAL RESULTS GRUPO ARGOS 1Q2019 GRUPO ARGOS DEBT DECREASES BY 16% YOY INDEBTEDNESS* COP bn LEVERAGE INDICATORS Max: 4.0x 1,847 -16% Max: 3.5x 350 1,545 Adjusted EBIDTA** - 40 - PC (COP billion): 759 -1% 748 Repos mar-2018 • Ma
Slide 12: Cash received from sale of EPSA used to decrease debt
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS RESULTADOSRESULTS INDIVIDUAL SEPARADOS GRUPO GRUPO ARGOS ARGOS 1Q2019 1T2019 CASH RECEIVED FROM SALE OF EPSA USED TO DECREASE DEBT INDIVIDUAL FREE CASH FLOW COP bn NOTES 1 DividendosNet netos dividends 28 1. Dividends received COP 9
Slide 13: Concessions Business
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS CONCESSIONS BUSINESS ODINSA Y OPAIN QUARTERLY RESULTS 1Q2019 13 May 2019
Slide 14: Quiport capital structure optimization for leverage reduction at Odinsa
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS CONCESSIONS BUSINESS FIRST QUARTER 2019 QUIPORT CAPITAL STRUCTURE OPTIMIZATION FOR LEVERAGE REDUCTION AT ODINSA NOTES REVENUES 8% (YoY) USD 400 bn Issuance of Quiport bonds 199 COP To strengthen the capital structure of Odina billio
Slide 15: 5% YoY growth in road traffic and stability in passenger traffic
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIO DE CONCESIONES CONCESSIONS BUSINESS FIRST PRIMER QUARTER TRIMESTRE 2019 DEL 2019 5% YOY GROWTH IN ROAD TRAFFIC AND STABILITY IN PASSENGER TRAFFIC AVERAGE DAILY VEHICLE TRAFFIC 1Q2019 Thousands of vehicles NOTES • AKF: During
Slide 16: All segments contribute positively to the generation of EBITDA
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIO DE CONCESIONES CONCESSIONS BUSINESS FIRST PRIMER QUARTER TRIMESTRE 2019 DEL 2019 ALL SEGMENTS CONTRIBUTE POSITIVELY TO THE GENERATION OF EBITDA REVENUE COP bn EBITDA COP bn CONTROLLER NET PROFIT COP bn 25 20 +8% +14% +25% Ma
Slide 17: Revenue per passenger in Opain grows 11% YoY
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS CONCESSIONS BUSINESS FIRST QUARTER 2019 REVENUE PER PASSENGER IN OPAIN GROWS 11% YOY PASSENGERS Millions of passengers (PAX) REVENUES COP bn 11 258 263 9 7,94 7,98 8,05 8,63 8,06 →Var YoY: 1% 7 2,66 2,74 2,82 2,85 2,87 → Var YoY: 7%
Slide 18: Cement Business
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS CEMENT BUSINESS CEMENTOS ARGOS QUARTERLY RESULTS 1Q2019 18 May 2019
Slide 19: Revenues in Colombia and USA grow supporting improvement in trend
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIOBUSINESS CEMENT DE CEMENTO PRIMER FIRST TRIMESTRE QUARTER 2019 DEL 2019 REVENUES IN COLOMBIA (+ 7%) AND USA (+ 11%) GROW SUPPORTING IMPROVEMENT IN TREND NOTES REVENUES Revenues grow 14% on 14% (YoY) better volume and prices C
Slide 20: Cement volume growth in the United States of 13% YoY
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIOBUSINESS CEMENT DE CEMENTO FIRST QUARTER 2019 CEMENT VOLUME GROWTH IN THE UNITED STATES OF 13% YoY CEMENT VOLUMES (Tons, thousands) CEMENT SALES +13% A/A +4% A/A 3,859 32% -3% A/A 37% USA 3,9 COL +5% mm TM C y CA 1Q2018 1Q201
Slide 21: 1Q19: efficiencies in the USA and recovery of prices in Colombia
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIOBUSINESS CEMENT DE CEMENTO FIRST QUARTER 2019 1Q19: EFFICIENCIES IN THE USA AND RECOVERY OF PRICES IN COLOMBIA REVENUES COP bn EBITDA COP bn CONTROLLER NET PROFIT COP bn 39 55 371 0 8 362 11 71 - 57 40 +14% -3% 300 311 15 -72
Slide 22: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS CELSIA QUARTERLY RESULTS 1Q2019 22 May 2019
Slide 23: Purchase of assets from Enertolima strengthens position in distribution
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIOBUSINESS ENERGY DE ENERGÍA PRIMER FIRST TRIMESTRE QUARTER 2019 DEL 2019 PURCHASE OF ASSETS FROM ENERTOLIMA STRENGTHENS POSITION IN THE DISTRIBUTION SEGMENT NOTES REVENUES 2% (YoY) COP 1,7 tn COP 861 bn Purchase assets Enertol
Slide 24: 95% increase in energy prices compensates lower generation levels
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIOBUSINESS ENERGY DE ENERGÍA FIRST QUARTER 2019 95% INCREASE IN ENERGY PRICES COMPENSATES LOWER GENERATION LEVELS GENERATION GWh BREAKDOWN OF GENERATION 0% 18% 20% Celsia Zona Franca 1,353 EPSA -23% GWh CA 1Q2018 1Q2019 62% CHA
Slide 25: Income and EBITDA in Colombia grow 7% and 13% YoY
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS NEGOCIOBUSINESS ENERGY DE ENERGÍA FIRST QUARTER 2019 INCOME AND EBITDA IN COLOMBIA GROW 7% YoY AND 13% YoY RESPECTIVELY REVENUES COP bn EBITDA COP bn CONTROLLER NET INCOME COP bn +7% YoY +13% YoY 51 -16% YoY -53% YoY 34 +2% -5% -33%
Slide 26: Real Estate Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES REAL ESTATE BUSINESS URBAN DEVELOPMENT BUSINESS AND PACTIA QUARTERLY RESULTS 1Q2019 26 May 2019
Slide 27: Pactia's EBITDA grows 17% in terms of same square meters
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS URBAN DEVELOPMENT BUSINESS AND PACTIA FIRST QUARTER 2019 PACTIA'S EBITDA GROWS 17% IN TERMS OF SAME SQUARE METERS Income distribution of COP 27 bn Revenues of COP 32 billion that are composed of: • Land Valuations: COP 10 bn Colgate
Slide 28: Pactia GLA increases 7% YoY
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS URBAN DEVELOPMENT BUSINESS AND PACTIA FIRST QUARTER 2019 PACTIA GLA AUMENTA 7% A/A POR APERTURA DE CENTRO DE DISTRIBUCION DE COLGATE Y HOTEL COLFERIAS PARTICIPATION IN PACTIA % GLA m2 3,5% 2,9% 27,7% Industry Industria 18,1% 40,3% C
Slide 29: Sustainability
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SUSTAINABILITY ADVANCES SUSTAINABILITY 1Q2019 29 May 2019
Slide 30: Grupo Argos added to society 1.8x the benefit taken
PRESENTACIÓN QUARTERLY DE RESULTADOS FINANCIAL TRIMESTRALES RESULTS GRUPO ARGOS ADDED TO THE SOCIETY 1,8X THE BENEFIT TAKEN , EQUIVALENT TO USD 332 MM VALUE ADDED STATEMENT OF GRUPO ARGOS 2018 (USD bn) ECONOMIC SOCIAL ENVIORNMENT 120.5 5.25 5.247761994 332.4 332,3904542 120.4569404 0.04 0.036919039