Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (March 2023)
40 slides from Grupo Argos's investor presentation, March 2023
Slide 1: Corporate Presentation March 2023
PRESENTACIÓN CORPORATIVA Corporate Presentation March 2023 1 March 2023
Slide 2: Important Note
PRESENTACIÓN CORPORATIVA Embalse del Calima Important Note This presentation contains certain forward-looking representations and information related to Grupo Argos and its subsidiaries based on currently known facts, expectations and forecasts, circumstances and assumptions regarding future events.
Slide 3: Overview of Grupo Argos
PRESENTACIÓN CORPORATIVA Overview of Grupo Argos Grupo Argos – Established footprint in the region with a robust portfolio focused on infrastructure Business highlights Company snapshot – 2022 Cement • 12 cement plants and 248 RMC plants in Colombia, the US, CentAm and business line the Caribbean 11
Slide 4: Strategy and Business Segments
PRESENTACIÓN CORPORATIVA Strategy and Business Segments Cement Infra Portfolio 4 March 2023
Slide 5: Key milestones (1/2)
PRESENTACIÓN CORPORATIVA Strategy Targeted M&A activity, coupled with deep know-how optimizing existing assets… Cement Infra Portfolio A Cement and energy businesses consolidation B Portfolio optimization towards key business lines and strategic assets (1/2) 2006 - 2008 2009 - 2011 2012 2014 - 2015
Slide 6: Key milestones (2/2)
PRESENTACIÓN CORPORATIVA Strategy … has proven to be a differentiated factor generating attractive returns … Cement Infra Portfolio B Portfolio optimization towards key business lines and strategic assets (2/2) C Creation of strategic partnerships and focus on capital optimization 2016 2017 - 2018 2
Slide 7: Unrivaled track record with ample asset management capabilities
PRESENTACIÓN CORPORATIVA Strategy … resulting in unrivaled track record with ample asset management capabilities Cement Infra Portfolio Key strengths highlighting Grupo Argos positioning 1 2 3 4 5 6 Deep sector and Unique sourcing Strong value creation Asset optimization and Brand reputation with Te
Slide 8: Proven strategy to develop regional infrastructure platforms
PRESENTACIÓN CORPORATIVA Strategy Proven strategy to develop regional infrastructure platforms Transportation Proven strategy for platform consolidation Energy Real Estate Ports Infrastructure 01. Identify business opportunities Acquisition of Odinsa Acquisition of Colinversiones Land portfolio and
Slide 9: Main Figures - Accelerated growth in the infrastructure segment
PRESENTACIÓN CORPORATIVA Strategy Main Figures - Accelerated growth in the infrastructure segment over the last decade Consolidated Revenue Consolidated EBITDA COP bn COP bn + 12% + 12% + 12% CAGR 2012 CAGR –2012 2022– (sept 2022L12M) CAGR CAGR 2012 2012 – 2022 – 2022 (sept L12M) 25 6 21.3 → USD 5.0
Slide 10: Consolidated an important base of infrastructure assets
PRESENTACIÓN CORPORATIVA Strategy During the last decade Grupo Argos consolidated an important base of infrastructure assets Cement Energy Concessions Real Estate Portfolio Energy ▪ Sura Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Nutresa COL & CCA Generation Commercia
Slide 11: Simplification of structure and listing in the NYSE
PRESENTACIÓN CORPORATIVA Strategy Simplification of structure in the infrastructure asset management business model and listing in the NYSE 2 Cement Alternative Asset Manager → Infrastructure Portfolio 1 Energy ▪ Sura Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Nutresa
Slide 12: Business plan focused on revealing and generating value for shareholders
PRESENTACIÓN CORPORATIVA Strategy Business plan focused in revealing and generating value for our shareholders Historic Performance Revealing Value1 Long Term Value Generation2 +69% Arbitrage +11% upside TSR CAGR (2002 – 2022) USD 3.7 bn USD 1.5 bn 17.0 USD 2.3 bn 4.4 +6.9 10.0 2.5 Grupo Argos Net D
Slide 13: Cement Business
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Cement Business 13 March 2023
Slide 14: Main Figures of the Cement Business
PRESENTACIÓN CORPORATIVA Cement Business Main Figures of the Cement Business Cemento Infra Portafolio Geographical Footprint Cement RMC 23.1 16.2 14.7 7.5 million tons of million tons million m3 of million m3 installed dispatched installed dispatched capacity 2022 capacity Financial Results 2022 Rev
Slide 15: CemArgos: 24% year over year growth in revenue and 11% in EBITDA
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 CemArgos: 24% year over year growth in revenue and 11% in EBITDA Cement Infra Portfolio Operational 1 Revenue2 COP bn EBITDA2 COP bn 4Q2022 vs 4Q2021 +24% 4Q2022 vs 4Q2021 +11% (YOY) (YOY) 3,118 3,138 Cemento RMC 2,851 583 601 2,537 2,577 542 6 -7.
Slide 16: Infrastructure Business
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Infrastructure Business 16 March 2023
Slide 17: Creation of platforms by asset type
PRESENTACIÓN CORPORATIVA Infrastructure Business Creation of platforms by asset type Cement Infra Portfolio Professional manager with proven experience operating infrastructure platforms in the region Infrastructure Asset Management Energy Energy Transmission Energy Toll Road Airport Real Estate Gen
Slide 18: Celsia: Company revenue grew 46% YOY
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Celsia: Company revenue grew 46% YOY Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn 4Q2022 vs 4Q2021 +46% 4Q2022 vs 4Q2021 +10% Generación Comercialización (YOY)1 (YOY)1 2,000 +0% 2,000 2 455 449 444 1,620 1,645 1,620 1,767 424 1
Slide 19: Odinsa: solid profitability of the roadway platform
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Odinsa: solid profitability of the roadway platform Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles IRR (E) +12% -8% -6% +7% Malla Vial del Meta 11% 43.7 40.3 40.9 36.1 22% Autopistas del Café 23.2 24.8 22% 7.8 7.2 14% Pá
Slide 20: Odinsa: Roadway platform operating metrics continue to improve
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Odinsa: Roadway platform operating metrics continue to improve Cement Infra Portfolio Passengers - Millions IRR (E) 17% vs 13% 9.8 4Q 2022 4Q 2021 7.9 11% vs 10.0% 4Q 2022 4Q 2021 0.8 1.2 OPAIN Quiport 4Q2021 4Q2022 • Increased profitability mainly
Slide 21: Pactia: Revenue and EBITDA remain stable
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Pactia: Revenue and EBITDA remain stable with a slight reduction in GLA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 4Q2022 vs 4Q2021 +1% 4Q2022 vs 4Q2021 +2% (YOY) (YOY) 1,400 108 109 53 52 52 103 51 98 1,200 1,000 85 804 GL
Slide 22: Portfolio Investments
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Por tfolio Investments 22 March 2023
Slide 23: Real Estate Business
PRESENTACIÓN CORPORATIVA Portfolio Investments Real Estate Business Cement Infra Portfolio Development Strategy Value Creation Our Masterplans: Develop roads and public areas, assign areas for urban facilities and areas of environmental Since 2016, the NDU has generated COP 315 billion of net cash f
Slide 24: Investment in Grupo Sura and Grupo Nutresa
PRESENTACIÓN CORPORATIVA Portfolio Investments Investment in Grupo Sura and Grupo Nutresa Cement Infra Portfolio Companies and Subsidiaries Long-term Benefits 1. Long-term Profitability ▪ Grupo Sura: +16% CAGR (TSR since 2000) ▪ Grupo Nutresa: +18 CAGR (TSR since 2000) 2. Enabling infrastructure gro
Slide 25: Shareholding Structure - over 15,000 shareholders
PRESENTACIÓN CORPORATIVA Shareholders Shareholding Structure - The company has over 15,000 shareholders Shareholders 31/12/2022 Cross-Holding Structure 31/12/2022 Shareholding corresponds to political rights Political Rights Economic Rights 28% 27% 31% 36% 10% 36% 657.6 869.5 13% 28%1 million ordina
Slide 26: Corporate Governance: Board of Directors
PRESENTACIÓN CORPORATIVA Board of Directors Corporate Governance Board of Directors Rosario Jorge Ana Cristina Armando Claudia Córdoba Uribe Arango Montenegro Betancourt Independiente Independiente Independiente Patrimonial Patrimonial (Presidente de la JD) 1 2 4 3 4 1 4 1 2 Board Committees Recogni
Slide 27: Financial Results
PRESENTACIÓN CORPORATIVA Financial Results Cement Infra Portfolio 27 March 2023
Slide 28: Solid operating growth translated into higher net income
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Solid operating growth translated into COP 881 bn of Net Income to the Controlling Interest (+49% YOY) Revenue EBITDA Net Income Net Inc. Controlling Interest Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +32% +31% +14% +2
Slide 29: Proforma EBITDA was COP 5.2 trillion, 20% higher
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Proforma EBITDA was COP 5.2 trillion, 20% higher than the previous year Summary P&L Quarterly Results Cumulative Results for the Year COP bn 4Q - 2022 4Q - 2021 Var.(%) Dec-22 Dec-21 Var.(%) Revenue 5,740 4,434 29% 21,340 16,309 31% 21.3 tn Costs,
Slide 30: 29% revenue growth and 9% EBITDA growth
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 29% revenue growth (YOY) and 9% EBITDA growth (YOY) Proforma consolidated revenue COP bn Proforma consolidated EBITDA COP bn 1,500 3 5,720 35 88 1,324 6,000 579 5 47 27 78 23 1,300 1,211 -0 570 5,000 -48 4,428 1,100 4,000 900 3,000 700 500 2,000 +2
Slide 31: Increased expenditure from operational dynamics and inflation
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +16% +15% +25% = 113 Odinsa OPAIN 593 291 134 135 90 509
Slide 32: Reduced indebtedness through financial discipline and divestments
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Financial discipline, cash flow generation and divestments result in reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16,349 16,464 15,013 449 1,121 14,035 1,475 1,380 1,459 27 -1,006 1,128 13 2,161 3,484
Slide 33: Separated EBITDA grows 13% YOY
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Separated EBITDA grows 13% YOY Summary P&L Quarterly Results Cumulative Results for the Year COP bn 4Q - 2022 4Q - 2021 Var.(%) Dec-22 Dec-21 Var.(%) Revenue 156 73 113% 779 653 19% Costs and other expenditures 58 34 71% 126 114 11% GA Expenses 60
Slide 34: Separated revenue was COP 156 billion during 4Q2022
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Separated revenue was COP 156 billion during 4Q2022 Revenue distribution 4Q2022 COP bn % Variation (YOY) +79% -100% -49% -116% +130% -40% +113% +999000% +499000% -1000% 156 -10 7 33 28 99 Real Estate Negocio Business Inmobiliario Financial Activida
Slide 35: Closed the year with a flexible cash position of COP 252 billion
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Available: we closed the year with a flexible cash position of COP 252 billion Cash flow Notes COP million COP million 1 Dividendos netos 510,287 1. Div. received: 826,107 (Odinsa: 360,957). Div. Paid: 325,820 Ingresos NDU 223,920 2. Purchased 3,08
Slide 36: Cost of debt increases less than inflation thanks to hedging
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Cost of debt increases less than inflation thanks to hedging strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life 0% 17% 26% 7% 10% 0% 28% 0% 12% 5.5 5.5 5.6 5… 5.2 0.19 5.3 6.0 5.0 0.17 15.5% 13% 13.5% 58% 0
Slide 37: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Grupo Argos has the highest credit rating from Fitch and S&P AAA AAA 1 1 Stable Stable June 2022 May 2022 ▪ Credit quality and dividend flow stability even in challenging ▪ Fulfilment of key milestones that enabled debt reductions and environments
Slide 38: Top 10 of MERCO Empresas and Bloomberg's Equality Index
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Grupo Argos was included in the Top 10 of MERCO Empresas and highlighted on Bloomberg’s Equality Index MERCO Bloomberg Gender Equality Index Sector Ranking Ranked 1st in business Second consecutive year among the best conglomerates performing compa
Slide 39: CEO, CFO, IR Manager
PRESENTACIÓN CORPORATIVA CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Juan Esteban Mejia Carolina Arango Tel: (574) 315 8400 Tel: (574) 315 8400 E-mail: jemejia@grupoargos.com E-mail: carangoz@grupoargos.com www.grupoargos.com 39 March 2023
Slide 40: PRESENTACIÓN CORPORATIVA March 2023
PRESENTACIÓN CORPORATIVA 40 March 2023