Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (September 2017)
31 slides from Grupo Argos's investor presentation, September 2017
Slide 1: Holding Company with Sustainable Investments in Infrastructure
Holding Company with SUSTAINABLE INVESTMENTS IN INFRASTRUCTURE September 2017
Slide 2: Grupo Argos at a glance
Grupo Argos at a glance • Only liquid vehicle to invest in infrastructure in Colombia 3 • Strategic focus in Cement, Energy, Road and Airport Regions Concessions 18 • Holding company with a solid and articulated portfolio with Countries USD 16 billion in AUM • With a balanced portfolio in regions, c
Slide 3: Balanced portfolio with a focus in infrastructure
Balanced portfolio with a focus in infrastructure Mkt Cap1 Revenue2 EBITDA2 USD 5.8 bn USD 4.9 bn USD 1.2 bn STRATEGIC - In Infrastructure Revenue and Ebitda contribution from Strategic Portfolio Cement Energy Concessions 20% 12% Cement 45% 24% Energy 65% 55,3%3 52,9% 99,7% 35% Concessions Revenues:
Slide 4: Grupo Argos as a strategic architect
Grupo Argos as a strategic architect • Corporate Governance • Corporate Strategy • Risks and Audit • Innovation Institutional Strategic • Reputation, branding and communications • Sustainability and Corporate *Acquisition of Odinsa and reshaping of Citizenship (Philanthropy) portfolio. • Human strat
Slide 5: Proven track record with emphasis in profitability
Proven track record with emphasis in profitability Growth Profitability 1 1. Acquisitions in the cement business to expand its 11. Strategic capital allocation geographic footprint ✓ Divestment of non-core assets (Bancolombia, Compas) ✓ Portfolio simplification (Concessions, Cement and Energy) 2 2.
Slide 6: Rational behind the road concession business
Rational behind the road concession business Geographical environment Odinsa’s strategy ✓ Presence in Country Position / 138 ✓ Consolidate strategic corridors in Colombia index – Quality of roads* developing Global competitiveness Ecuador 24 and the region. countries with a ✓ Experience and credenti
Slide 7: Rational behind the airport concession business
Rational behind the airport concession business Geographical environment Odinsa’s strategy ✓ For the next 20 years the Trips per Capita* ✓ Busiest airports in Colombia and 3.0 6% middle class will grow in about Ecuador to take advantage of the 2.5 5% 2 bn, leveraging the growth of regional traffic g
Slide 8: Rational behind the cement business
Rational behind the cement business Geographical environment Cementos Argos’ strategy 150 Cement Consumption* 600 ✓ Residential sector 115 ✓ Acquisition of a cement plant in main driver for cement Kg / capita 100 400 Martinsburg to become 4th largest MM Ton 69 demand recovery. cement producer in the
Slide 9: Rational behind the power sector business
Rational behind the power sector business Sector analysis (Colombia + Panamá + Costa Rica) Celsia’s strategy ✓ Energy consumption growth potential (low per capita ✓ Leader in the countries where it operates. consumption). ✓ Project Pipeline to capture growth opportunities ✓ Hydro (+350 MW) Per Capit
Slide 10: Recognition and solid commitment to corporate governance
Recognition and solid commitment to corporate governance BOARD OF DIRECTORS SHAREHOLDERS ROSARIO CÓRDOBA (Chairman of the Board) - Independent Grupo Sura - 36% MARIO SCARPETTA Colombian Pension Funds - 65% Independent Grupo Nutresa -12% COMMON PREFFERED International Funds - 9% ANA CRISTINA ARANGO S
Slide 11: Contribution by business
Contribution by business Grupo Argos Consolidated Revenues (COP bn) Grupo Argos Consolidated EBITDA (COP bn) USD 4.8 bn USD 1.2 bn 14,553 3,620 12,700 2,635 9,296 2,225 7,629 7,427 1,907 1,829 6,681 6,922 1,727 1,616 2012 2013 2014 2015 2,016 1H16 1H17 2012 2013 2014 2015 2,016 1H16 1H17 Grupo Argos
Slide 12: Indicador de apalancamiento a nivel separado cierra el semestre en 2.7x
Indicador de apalancamiento a nivel separado cierra el semestre en 2.7x y se evidencia mejora en costos financieros Endeudamiento (COP miles mm) Indicadores de Apalancamiento jun-2017 jun-2017 EBITDA Ajustado** +14% 1,762 (COP miles mm): 1,550 • jun-2016:463 • jun-2017: 664 57%51% 65% REPO Max: 3.5x
Slide 13: Stock Performance
Stock Performance Ticker Market Cap1 ADTV (YTD) Dividend Yield1 GRUPOARG CB COP 17.6 tn Common: USD 1.5 mm (USD 5.8 bn) 1.5% PFGRUPOA CB Common non voting: USD 0.8 mm Stock Evolution Dividends Paid Dividends Paid Dividends Growth IPC CPI(last (lastyear) year) Growth growth USD COP Bn 150 90 mm 140 3
Slide 14: Concessions: Roads & airports
Concessions Roads & airports
Slide 15: Active transformation in the concession business
Active transformation in the concession business Key Figures (1H17) Revenue by business with Revenue by business EBITDA by business equity method 1H17 adjusted* adjusted* Construction, Construction, Airport, 10% 11% 4 21% Roads, Roads, Airport, Roads, 33% Construction, 60% 30% Airport, 57% Countries
Slide 16: Successful consolidation in the airport and road concession business
Successful consolidation in the airport and road concession business 2015 End of Year Actual Situation Santa Marta AKF BTA Hatovial In Operation Under Construction ADN – Paraguachón. ✓ Control in ADN and BTA in AKF Pacífico II 43% 43% 40% 22% D.R. 62% ✓ Acquisition of control in Pacifico 2, a 4G pro
Slide 17: Recent performance
Recent performance Passengers (MM PAX) Traffic per day (1H17) 40.0 35.4 36.0 35.0 33.1 Autopistas del Café 30.5 5% 30.0 27.8 25.5 15% Malla Vial del Meta 25.0 17.2 17.8 20.0 TPD 47% Pacífico 2 15.0 9% 73,772 10.0 Autopistas del Nordeste 5.0 0.0 25% Boulevard Turistico del 2011 2012 2013 2014 2015 20
Slide 18: Cement Business
( Cement arcos BUSINESS rN AR - GRUPO ARGOS
Slide 19: Cement and concrete leader in the Americas
Cement and concrete leader in the Americas Key Figures (1H17) 3 3 Revenue by Geography Product Mix EBITDA by Geography Regions Colombia Colombia 14 14 28% RMC 43% USA 23% Countries USA Cement 40% 52% 57% CCA CCA 37% 20% 9,166 9.850 Employees 1H17: COP 4,231 bn / USD 1.4 bn Cement Volume 1H17: 8 Mtpa
Slide 20: Results that evidence a growing operation benefited by geographical diversification
Results that evidence a growing operation benefited by geographical diversification Cement volume (Mtpa) RMX Volume (Mcmpa) 14.3 14.0 12.6 11.1 11.5 11.3 10.8 11.4 9.4 8.6 9.3 7.8 8.0 7.0 7.0 5.9 5.8 5.4 2010 2011 2012 2013 2014 2015 2016 1H16 1H17 2010 2011 2012 2013 2014 2015 2016 1H16 1H17 Revenu
Slide 21: Energy Business
rN AR - GRUPO ARGOS
Slide 22: A process of successful transformation and growth with focus
A process of successful transformation and growth with focus Key Figures (1H17) Revenue by Geography Revenue by type of generation EBITDA by Geography CCA Wind CCA 24% Thermo 3% 20% 3 10% Hydro Countries Colombia 87% 76% Colombia 1,600 80% Employees 1H17: COP 1,495 bn / USD 498 MM 1H17: COP 523 MM /
Slide 23: Recent Performance
Recent Performance Generation (GWh) Regulated and non regulated market sales (GWh) 8,129 600 7,754 7,135 6,170 550 5,039 500 3,928 3,105 450 400 350 2012 2013 2014 2015 2016 1H16 1H17 300 Colombia CCA 1T12 3T12 1T13 3T13 1T14 3T14 1T15 3T15 1T16 3T16 1T17 Revenues (COP$ bn) Ebitda (COP$ bn) – Ebitda
Slide 24: Real Estate
Real Estate rN AR - GRUPO ARGOS
Slide 25: Land Bank with cash generation potential
Land Bank with cash generation potential Situm ~2.000 Ha (Barranquilla and Barú) 416 Ha developed up to 2015 2002 2017 Land use: 56% ✓ ~ 2.000 Ha to develop between Barranquilla and Barú. residential ▪ Land development in Barranquilla: 833 Ha equivalent to 2,5x Central Park in NYC. 31% ▪ Land develo
Slide 26: Property Joint Venture with COP 2,800 bn of assets under management
Property Joint Venture with COP 2,800 bn of assets under management Pactia Evolution of Pactia GLA m2 (000’) 3 Countries 31 807 501 559 433 346 258 14 Colombian 2013 2014 2015 2016 2017 2018-2026 Conconcreto Grupo Argos Pactia States ✓ Real estate developers with growth potential in Colombia and the
Slide 27: Recent transactions
Recent transactions rN - GRUPO ARGOS
Slide 28: 2016 and 2017 have been years of action towards reaching our long term plan
2016 and 2017 have been years of action towards reaching our long term plan Interiorized strategy of efficient capital Built powerful infrastructure allocation with an active portfolio investment/divestment focus COP1.3 trillion in investments over 2016 Strategic focus on Cement, Energy and Concessi
Slide 29: Advances in the consolidation of Grupo Argos as an Infrastructure Holding
Advances in the consolidation of Grupo Argos as an Infrastructure Holding with the acquisition of Odinsa and Opain, backed up by the financial market El Dorado Airport Successful Grupo Argos’ Takeover Bid (TOB) with ~44% acceptances, reaching a total participation of 99% 99% in Odinsa. Of voting rig
Slide 30: Sale of Compas reaffirms our commitment to manage efficiently our investment portfolio
Sale of Compas reaffirms our commitment to manage efficiently our investment portfolio Investment in Compas and transaction • Múltiplos multiples • Múltiplos Rational Múltiplos • Accounting Impacts GA ▪ Since 2012 Grupo Argos has contributed to ▪ Fulfillment of investment thesis COP billions P&L P&L
Slide 31: Contact
Contact JORGE MARIO VELASQUEZ CEO Grupo Argos jvelasquez@grupoargos.com ALEJANDRO PIEDRAHITA CFO Grupo Argos apiedrahita@grupoargos.com NATALIA AGUDELO Investor Relation Director Grupo Argos Phone: (57) 4 3198712 nagudelop@grupoargos.com 31