Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q1 2023 Earnings Presentation
43 slides from Grupo Argos's earnings presentation, May 2023
Slide 1: Results Presentation First quarter May 2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Results Presentation First quarter May 2023 1 Mayo2023
Slide 2: Disclaimer
PRESENTACIÓN Resultados DE RESULTADOS Primer Trimestre TRIMESTRALES del 2019 QUARTERLY RESULTS PRESENTATION Disclaimer This presentation contains certain forward-looking representations and information related to GRUPO ARGOS and its subsidiaries based on currently known facts, expectations and forec
Slide 3: Double-digit growth in consolidated results for the first quarter vs 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Double-digit growth in consolidated results for the first quarter of the year vs 2022 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% +25% +28% +14%
Slide 4: Progress with plan to close the gap between price and fundamental value
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 We made progress with our comprehensive plan to close the gap between price and fundamental Cement value Infra Portfolio Deleveraging + 15% 1. +COP 3.0 tn last 3 years Strategic value catalysts Increased dividend 1. Grupo Argos Infra
Slide 5: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 5 Mayo2023
Slide 6: CemArgos: Favorable dynamics in all regions
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 CemArgos: Favorable dynamics in all 3 regions Cement Infra Portfolio Operating dynamics result in growth in all regions • Consolidated revenue grows +30%, proforma EBITDA 65% and net income 249% • Colombia +13% in Revenue and +39% in
Slide 7: CemArgos: 31% revenue growth and 65% adjusted EBITDA growth
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 CemArgos: 31% year over year growth in revenue and 65% in adjusted EBITDA Cement Infra Portfolio Operational 1 Revenue COP bn EBITDA1 COP bn 1Q2023 vs 1Q2022 +31% 1Q2023 vs 1Q2022 +65% (YOY) (YOY) 3.382 601 594 Cemento RMC 3.118 3.13
Slide 8: Celsia: Operational excellence fostered extraordinary results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Celsia: Operational excellence and market conditions fostered extraordinary results Cement Infra Portfolio Sound operating results for the business • Growth in the Generation segment is highlighted • Consolidated revenue was COP 1.5
Slide 9: Celsia: Company revenue grows 15% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Celsia: Company revenue grows 15% YOY Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 4Q2022 vs 4Q2021 +15% 4Q2022 vs 4Q2021 +13% Generación Comercialización (YOY)1 (YOY)1 2.000 +7% 2.000 1 1.764 1.645 1.620 1.767 51
Slide 10: Odinsa: Sound results as a transportation infrastructure asset manager
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Odinsa: Sound results as a transportation infrastructure asset manager Cement Infra Portfolio Outstanding operating results • 10.4 million PAX were mobilized through airports, growing 18% compared to the previous quarter • TPD on the
Slide 11: Odinsa: Accounting process before and after roadway and airport vertical
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Odinsa: Accounting process before and after the roadway and airport vertical Cement Infra Portfolio Before conclusion of the vertical After conclusion of the vertical Odinsa 50% Odinsa roadways roadways 50% 100% Subsidiaries Associat
Slide 12: Odinsa: Sound profitability of the roadway platform
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Odinsa: Sound profitability of the roadway platform Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles IRR (E) -1% -6.9% +8% +8% 11% 39,1 38,7 37,5 34,9 24,5 22,7 22% 22% 7,6 7,1 15% 14% AKF P2 MVM CTAO mar-22
Slide 13: Odinsa: Airport traffic grows by double digits
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Odinsa: Airport traffic grows by double digits Cement Infra Portfolio Passengers - Millions IRR (E) 9,2 17% vs 17% 8,0 2023 2022 14% vs 13% 2023 2022 1,2 0,8 OPAIN Quiport mar-22 mar-23 • Increased profitability mainly explained by 1
Slide 14: Consolidation and Operational Performance of Private Equity Funds
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Consolidation and Operational Performance of Private Equtiy Funds Cement Infra Portfolio Energy Concessions Caoba C2 Energía Tesorito Laurel Roadways Airports • Thermal Gen. Platform • Solar platform < 8 MW • Partner: Macquarie Asset
Slide 15: Pactia: Revenue and EBITDA remain stable despite slight GLA reduction
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Pactia: Revenue and EBITDA remain stable despite a slight reduction in GLA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 1Q2023 vs 1Q2022 +13% 1Q2023 vs 1Q2022 +16% (YOY) (YOY) 1.400 109 110 61 103 98 1.200 53 5
Slide 16: Real Estate Business: Net cash flow for the quarter is COP 26 billion
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Real Estate Business: Net cash flow for the quarter is COP 26 billion Cement Infra Portfolio Urban Development in Barranquilla Cash flow1 Mar - 2023 Mar - 2022 Var (%) Revenue 62 36 70% Net cash flow 26 4 564% • COP 12 billion in rev
Slide 17: Consolidated and separated financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Consolidated and separated financial results 17 Mayo2023
Slide 18: Revenue grows 25% YOY and EBITDA 28% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Revenue grows 25% YOY and EBITDA 28% YOY Summary P&L Quarterly Results Cumulative Results YTD COP bn 1Q - 2023 1Q - 2022 Var.(%) Mar-23 Mar-22 Var.(%) Revenue 5,745 4,614 25% 5,745 4,614 25% Costs, expenses, and other revenue 4,543 3
Slide 19: 25% revenue growth and 38% EBITDA growth
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 25% revenue growth (YOY) and 38% EBITDA growth (YOY) Proforma consolidated revenue COP bn Proforma consolidated EBITDA COP bn 1.700 1.558 41 119 5.745 124 6.000 192 14 58 801 -36 1.500 42 -8 237 5.000 4.614 1.300 -25 1.130 1.100 4.00
Slide 20: Increased expenditure from improved operational dynamics and inflation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +9% +27% +6% -8% 322 84 Odinsa OPAIN 542 7
Slide 21: Net Debt/EBITDA of 2.7x supports soundness of equity structure
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 A Net Debt/EBITDA Indicator of 2.7x supports the soundness of Grupo Argos’s equity structure Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16.812 15.796 1.018 14.282 14.211 439 1.653 1.469 1.453 1.194 2.084
Slide 22: Separated EBITDA grows 78% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Separated EBITDA grows 78% YOY Summary P&L Quarterly Results Cumulative Results YTD COP bn 1Q - 2023 1Q - 2022 Var.(%) Mar-23 Mar-22 Var.(%) Revenue 429 285 51% 429 285 51% Costs and other expenditures 26 25 3% 26 25 3% GA Expenses 4
Slide 23: Separated revenue distribution
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Separated revenue was COP 429 billion during 1Q2022 Revenue distribution 4Q2022 COP bn % Variation (YOY) +53% +57% +234% -27% +134% +5% +51% +999000% +499000% -1000% 429 40 2 40 8 224 115 Real Estate Negocio Business Inmobiliario Fin
Slide 24: Financial returns from hedges mitigated financial expenses by 24%
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Financial returns from hedges and temporary inv. have mitigated financial expenses by 24% Cash flow Notes COP million COP million 1 Dividendos netos 37.711 1. Div. received: 146,159. Div. Paid: 108,448 Ingresos NDU 61.737 2. 40,811 f
Slide 25: Cost of debt reduced by 150 bps during the quarter
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Cost of debt reduced by 150 bps during the quarter Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Vida media (años) Kd (sin coberturas) Deuda Neta = 1.2 bn (-18% a/a) Kd (Real) IPC 3% 0% 25% 7% 26%
Slide 26: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 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 an
Slide 27: Energy Transition, Climate Change and Equity as priorities
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Energy Transition, Climate Change and Equity as priorities for our organization ENERGY TRANSITION CLIMATE CHANGE EQUITY IN THE VALUE CHAIN 95.8% of the energy generated by CELSIA AGREEMENT WITH UNIVERSIDAD NACIONAL Grupo Empresarial
Slide 28: 2023 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 2023 Results Guidance 22.0 - 22.5 5.2 - 5.5 COP trillion COP trillion Revenue 2023e EBITDA 2023e Guidance for 2023 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions) 28 Mayo2023
Slide 29: Annexes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 29 Mayo2023
Slide 30: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 30 Mayo2023
Slide 31: 3.9 million tons of cement shipped at end of the quarter
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 3.9 million tons of cement shipped at the end of the quarter Cement Volumes millions of tons Concrete Volumes millions of m3 1 USA COL C y CA USA COL C y CA 1,8 0,00 0,01 1,8 0,07 0,1 0,1 3,95 0,1 0,06 3,93 0,02 1,1 1,0 0,6 0,6 1,5 1
Slide 32: Cement financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Found financial results Revenue COP bn Ebitda COP bn Net profit to the controlling COP bn interest 78 3.382 594 80 353 101 573 51 66 2.577 -201 445 -70 22 +31% +33% +259% 1Q - 1Q USA COL CC & CA y CA Other Otros 1Q- 1Q 1Q - 1Q USA CO
Slide 33: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 33 Mayo2023
Slide 34: Accumulated generation grows 7% compared to first quarter 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Accumulated generation for the year grows 7% compared to the first quarter of 2022 Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regulado Regulated 913 127 1.764 58 863 1.645 -8 2
Slide 35: Revenue and EBITDA grow by double digits at Celsia
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Revenue and EBITDA grow by double digits at Celsia Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 54 227 1.507 5 514 103 1.309 -29 150 455 42 96 38 180 472 1.356 417 1.130 +15% +13% 1Q 1Q - 2022 C
Slide 36: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 36 Mayo2023
Slide 37: Traffic grows 18% in airports and 3% on roadways
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Traffic maintains a very positive trend, growing 18% in airports and 3% on roadways Thousands of Millions of passengers Average daily vehicles Airport traffic vehicles (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 10,4 2,7 107,8 0,4 10
Slide 38: Roadways: ADT continues growing in 2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Roadways: ADT continues growing in 2023, after double digit growth in 2022 Autopistas del Café ADT per month and YTD (thousands of vehicles) Túnel de Oriente ADT per month and YTD (thousands of vehicles) Pacífico 2 ADT per month and YTD (thousands of vehicles)
Slide 39: Roadways: Asset performance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Roadways: Asset performance Revenue % Variation (YOY) +13% +38% +7.3% +58% 92.185 66.690 62.686 67.238 55.704 49.226 42.322 26.835 Túnel de Oriente Pacífico 2 AKF Malla Vial del Meta 2022 2023 EBITDA % Variation (YOY) +6% +32% +10% -43% 79.226 60.239 37.796 40
Slide 40: Airports: Quiport passengers close to pre-pandemic levels
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Airports: Quiport passengers very close to pre-pandemic levels (99% vs 2019), Opain +14% vs 2019 Opain: Monthly passengers Millions of Quiport: Monthly passengers Thousands of PAX PAX +13% +18% +19% +11% +16% +56% +74% +52% +41% +54% 9,2 468 1.233 3,4 8,0 3,1
Slide 41: Opain ends March with 3.2 million PAX mobilized
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 1Q2023 Opain ends March with 3.2 million PAX mobilized, +11% compared to 2022 Passengers Millions of passengers (PAX) Doméstico Internacional 3,2 3,2 3,1 3,2 3,2 3,4 3,1 3,2 3,1 2,8 2,7 3,0 2,6 2,4 2,9 3,0 3,0 3,1 2,9 2,2 1,6 1,8 2,1 2,1 2,
Slide 42: Contact
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Senior Lead Juan Esteban Mejia Carolina Arango David González (574) 315 8400 315 8400 315 8400 jemejia@grupoargos.com carangoz@grupoargos.com dgonzalez@grupoargos.com wwwˌgrupoargosˌcom
Slide 43: PRESENTACIÓN DE RESULTADOS TRIMESTRALES Mayo2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 43 Mayo2023