Slide 1: Presentation of Results Second Quarter, 2018
Presentation of Results Second Quarter, 2018
Slide 2: Important Note
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, expectations and forecasts, circumstances, and assumptions about future events. Many factors could cause the futur
Slide 3: Strategy
STRATEGY PROFIT GROWTH AT A 26% RATE FOR THE FIRST SEMESTER ON STRUCTURAL STRENGTHENING OF LEVERAGE. COST OF DEBT OF GRUPO ARGOS IN MINIMUM Improvement in Ebitda margin of all Significant reduction in the cost of Strengthened performance of the businesses debt holding company • Grupo Argos performed
Slide 4: Consolidated
CONSOLIDATED NET PROFIT OF THE CONTROLLING COMPANY GREW BY 39% Y/Y IN THE QUARTER, EXCLUDING NON- RECURRING ITEMS IMPORTANT FIGURES NOTES Consolidated Statement of Income COP Billion Consolidated Quarterly Consolidated Year to Date 1 2Q2018 2Q2017 Change (%) Jun-2018 Jun-2017 Change (%) ✓ Revenues g
Slide 5: Consolidated: contributions to revenues and EBITDA by business
CONSOLIDATED POSITIVE CONTRIBUTIONS TO REVENUES FROM ALL STRATEGIC BUSINESSES CONTRIBUTION BY BUSINESS REVENUES (COP billion) 3,565 + 30 + 73 +3 3,617 - 29 - 16 -3 -5 62% +1% Revenues Ingresos 2T2017 Cement Cemento Energy Energía Real Estate Inmobiliario Portfolio Portafolio Coal Carbón Concessions
Slide 6: Separate
SEPARATE RECURRING AND CONTROLLABLE ADMINISTRATION EXPENSES OF GRUPO ARGOS DECREASED BY 3% IN THE FIRST HALF, RATIFYING OUR COMMITMENT WITH EFFICIENCY IMPORTANT FIGURES NOTES Separate Statement of Income Change Change 1 Distribution of revenues in 2Q2018 COP, billion 2Q2018 2Q2017 Jun-2018 Jun-2017
Slide 7: Separate: indebtedness, leverage and cost of debt
SEPARATE HEALTHY PERFORMANCE INDICATORS AND COST OF DEBT AT LOWEST LEVEL SINCE 2015 INDEBTEDNESS* LEVERAGE INDICATORS COP billion 6.0x 1,762 +0.6% 1,772 jun-2017 jun-2018 5 Adjusted EBIDTA** 94 5.0x 91 Max: 4 x (COP billion): Repos • Jun-2017 696 Repos 892 4.0x Max: 3.5x -14.8% 759 • Jun-2018 977 PC
Slide 8: Separate: year-to-date cash flow
SEPARATE YEAR-TO-DATE CASH FLOW REFLECTS THE SIMPLIFICATION OF THE ENERGY PORTFOLIO AND STRATEGIC ACQUISITIONS OF SHARES IN CEMENT COP billion NOTES 1 Dividendos netos Net dividends 84,391 1 Dividends received: COP 221 billion, dividends paid: COP 137 billion 2 Ingresos Urban NDU Development 28,366
Slide 9: Concessions Business
Concessions Business: 9
Slide 10: Executive Summary
EXECUTIVE SUMMARY FITCH MAINTAINS A RATING OF AA- WITH STABLE OUTLOOK AND VIEWS POSITIVELY THE PRESENCE OF GRUPO ARGOS AS CONTROLLING SHAREHOLDER HIGHLIGHTS OF THIS QUARTER 2Q18 consolidated ▪ Fitch maintains a rating of AA- with stable outlook and highlights: ▪ It views positively the strategic re-
Slide 11: Operating Results
OPERATING RESULTS GROWTH CONTINUES IN SECOND QUARTER WITH 3% INCREASE IN PASSANGERS AND STABLE TRAFFIC AT ROAD CONCESSIONS AVERAGE DAILY VEHICLE TRAFFIC 2Q2018 Thousands of vehicles 72.8 -0.7% 72.2 AKF 3.91 4.94 Total vehicle traffic in 2Q18 of 2.8 million decreased by -9% due to closing of bridge a
Slide 12: Financial Results
FINANCIAL RESULTS POSITIVE CONTRIBUTION FROM ROAD AND AIRPORT CONCESSIONS IN THE SECOND QUARTER OF 2018. BASIS FOR COMPARISON IS AFFECTED BY THE DISINVESTMENT OF THE SANTA MARTA PARAGUANCHON CONCESSION IN 2Q17 REVENUE EBIDTA NET PROFIT COP Billion COP Billion COP Billion +1 160 137* +7 +4 127 100% 2
Slide 13: Financial Results: Opain
FINANCIAL RESULTS OPAÍN CLOSED THE SECOND QUARTER WITH GROWTH IN REVENUES AND EBIDTA, WITH EBIDTA MARGIN REMAINING STABLE AT 32%. HIGHLIGHT: THE INCREASE IN INTERNATIONAL PASSENGERS PASSENGERS REVENUES (Regulated + Non-Regulated) MILLIONS OF COP Billion 9 PASSENGERS 8.0 8.0 7.6 7.8 7.6 7.9 →Change Y
Slide 14: Cement Business
Cement Business 14
Slide 15: Executive Summary
EXECUTIVE SUMMARY THE EFFICIENCY PROJECT CONTINUES TO HAVE A POSITIVE IMPACT ON RESULTS. USA AND CENTRAL AMERICAN REGIONS STAND OUT IN TERMS OF EBIDTA HIGHLIGHTS OF THIS QUARTER 2Q2018 ▪ Positive growth in demand for cement and concrete in United States ▪ Double-digit growth of concrete sales in the
Slide 16: Operating Results
OPERATING RESULTS CEMENT AND CONCRETE VOLUMES DISPLAY POSITIVE TREND IN UNITED STATES CEMENT VOLUMES CEMENT SALES (Tons, thousands) 2nd quarter 2018 +1% Y/Y +3% Y/Y 4,169 4,205 +15 + 49 - 28 Colombia Colombia -2% Y/Y 31% 38% 4.205 Caribbean and CA (incl. Caribe y CA (incl. Exports) millions MT Expor
Slide 17: Financial Results
FINANCIAL RESULTS HIGHLIGHT: ADJUSTED EBIDTA, EXCLUDING NON-RECURRING EFFECTS, GREW BY 6% Y/Y REVENUE EBIDTA NET PROFIT COP Billion COP Billion % 450 +1 % -2% 404 24.0% 2,154 +5 + 25 0 2,184 400 +10% 370 +1% + 20 +6% 328 22.0% +2 350 -1 72 0% -3 + 60 300 20.0% 250 -74% 18.0% 200 18,5% 48 17% 16.0% +
Slide 18: Energy Business
Energy Business 18
Slide 19: Executive Summary
EXECUTIVE SUMMARY THE STRENGTHENED CAPITAL STRUCTURE AND BETTER OPERATIONAL RESULTS HAVE TRANSLATED INTO SOLID NET PROFIT RESULTS FOR THE CONTROLLING COMPANY HIGHLIGHTS OF THIS QUARTER 2Q2018 ▪ EPSA issued a first tranche of green bonds for CoP 70 billion, of an overall quota of COP 420 billion. The
Slide 20: Operating Statistics
OPERATING STATISTICS GROWTH OF 5.2% IN NON-REGULATED MARKET, WITH A POSITIVE IMPACT ON CONTRACT SALES GENERATION BREAKDOWN OF GWh GENERATION Celsia 4% 6% Y/Y 20% Y/Y 21% Y/Y 1,618 +5 + 44 + 62 1,655 - 73 -7% Y/Y Zona Franca 19% 1.656 GWh EPSA 57% 2% CA 20% Generation Generación Celsia Celsia Zona Fr
Slide 21: Financial Results
FINANCIAL RESULTS NET PROFIT OF THE CONTROLLING COMPANY INCREASED BY 56% TO COP 67 BILLION REVENUE EBIDTA CONTROLLING COMPANY NET PROFIT COP billion COP billion % +14% Y/Y +0% Y/Y + 77 +0 821 743 +7% Y/Y 300 279 269 50% +4 45% 67 250 - 13 40% -6% Y/Y 38% 35% 43 200 33% 30% 150 25% 20% +10% 100 -3% 1
Slide 22: Real Estate Business
Real Estate Business 22
Slide 23: Executive Summary
EXECUTIVE SUMMARY REAL ESTATE FUND CONTINUES TO GROW STRONGLY, REACHING GLA OF 721,000 M2 INCREASING 40% YOY Development Urban ▪ Substantial progress was made in the sale of plots, particularly in ▪ Fund unit prices increased by 6.96% EA to 11,019,853 at the end of 2Q18 July (including dividends) ▪
Slide 24: Financial Results
FINANCIAL RESULTS GROSS CASH REVENUE INCREASED BY 25%, IN LINE WITH THE INCREASE IN GROSS LEASABLE AREA PARTICIPATION IN PACTIA GLA % m2 9.6% 9.6% 3.2% 1.9% 17.60% 17.6% 21.2% 24.4% 39.8% 39.8% 36.3% 36.3% 16.3% Industria Industry 34.7% 33.5% Proteccion Comercio Retail Grupo Argos 46.5% 721,674 m2 O