Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q2 2023 Earnings Presentation
40 slides from Grupo Argos's earnings presentation, August 2023
Slide 1: Results Presentation Second Quarter August 2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Results Presentation Second Quarter August 2023 1 Agosto2023
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 semester vs 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Double-digit growth in consolidated results for the first semester of the year vs 2022 Revenue EBITDA Net Income Net income controlling interest Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +32% +15% +19% +
Slide 4: Sound separated results from Grupo Argos
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Sound separated results from Grupo Argos Revenue EBITDA Net Income Figures in COP bn Figures in COP bn Figures in COP bn +115% +32% +136% +14% +13% +177% 763 704 984 457 324 254 2S22 2S23 2S22 2S23 2S22 2S23 4 Agosto2023
Slide 5: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 5 Agosto2023
Slide 6: CemArgos: progress with initiatives that transfer value to shareholders
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 CemArgos: progress with initiatives that transfer value to shareholders Cement Infra Portfolio Materialization of initiatives that aim to transfer value to shareholders • The shareholders' meeting held on June 22 issued an extraordin
Slide 7: CemArgos: 17% year over year growth in revenue and 30% in EBITDA
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 CemArgos: 17% year over year growth in revenue and 30% in EBITDA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 2Q2023 vs 2Q2022 +17% 2Q2023 vs 2Q2022 +30% (YOY) (YOY) 662 3.382 3.332 601 594 Cemento RMC 3.118 3.138
Slide 8: Celsia: prioritization of mitigation strategies for El Niño phenomenon
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Celsia: priorization of mitigation strategies for El Niño phenomenon Cement Infra Portfolio Balanced portfolio to mitigate the potential impact of the El Niño phenomenon • Celsia holds guaranteed fuel contracts for the operation of i
Slide 9: Celsia: Company revenue grows +31% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Celsia: Company revenue grows +31% YOY Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 2Q2023 vs 2Q2022 +31% 2Q2023 vs 2Q2022 +7% Generación Comercialización (YOY)1 (YOY)1 2 .0 0 -15% 2 .0 0 1 1.764 1.620 1.767 514 1
Slide 10: Odinsa: closed the airports vertical together with good dynamics in traffic
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Odinsa: closed the airports vertical together with good dynamics in traffic Cement Infra Portfolio After compliance with authorizations, the airport platform begins operations • Odinsa maintains a 50% share and will act as platform m
Slide 11: Odinsa: Structural and accounting changes after concluding the verticals
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Odinsa: Structural and accounting changes after concluding the roadway and airport verticals Cement Infra Portfolio Before vertical conclusion After vertical conclusion 50% Odinsa Odinsa 50% 23.25% 100% Subsidiaries Associates and Od
Slide 12: Odinsa: ADR stable YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Odinsa: ADR stable YOY Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles 2Q2023 vs 2Q2022 IRR (E) -10% +10% +7% -1% 12% 37,9 37,1 36,8 33,9 24,0 22,5 22% 6,6 7,3 15% AKF P2 MVM CTAO jun-22 jun-23 20% Platform
Slide 13: Odinsa: Quiport reaches pre-pandemic traffic levels
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Odinsa: Quiport reaches pre-pandemic traffic levels Cement Infra Portfolio Passengers - Millions IRR (E) +4% 9,4 9,0 17% 13% % +26 1,4 1,1 OPAIN Quiport jun-22 jun-23 • Incremento en rentabilidad explicado por mayores 10.8 million PA
Slide 14: Pactia: EBITDA doubles in the last year
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Pactia: EBITDA doubles in the last year Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 2Q2023 vs 2Q2022 +31% 2Q2023 vs 2Q2022 +94% (YOY) (YOY) 1 .4 0 0 109 110 111 1 .2 0 0 103 61 59 52 52 1 .0 0 85 812 GLA ('000
Slide 15: Real Estate Business: Cash income and cumulative P&G
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Real Estate Business: Cash income and cumulative P&G +20% YOY and +13% YOY respectively Cement Infra Portfolio Sofitel Baru Cash flow1 Jun-2023 Jun- 2022 Var (%) Revenue 111 93 20% Net cash flow 35 39 -11% • Higher revenue because pa
Slide 16: Consolidated and separated financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Consolidated and separated financial results 16 Agosto2023
Slide 17: Revenue grows 15% YOY and EBITDA 19% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Revenue grows 15% YOY and EBITDA 19% YOY Resumen P&G Resultados Trimestre Resultados Acumulados Año COP mil mn 2Q - 2023 2Q - 2022 Var.(%) jun-23 jun-22 Var.(%) Ingresos 6.392 5.898 8% 12.137 10.512 15% 12.1 tn Costos, gastos y otros
Slide 18: Revenue grows 8% (YOY) and EBITDA grows 12% (YOY)
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Revenue grows 8% (YOY) and EBITDA grows 12% (YOY) Proforma consolidated revenue COP bn Proforma consolidated EBITDA COP bn 275 -47 7 .0 0 1.148 6.392 9 16 1.553 156 -41 -175 -182 -143 6 .0 0 332 1.325 476 5 .0 0 4.794 4 .0 0 3 .0 0 2
Slide 19: Increased expenditure associated with improved operational dynamics and inflation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Increased expenditure associated with improved operational dynamics and the effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa Expenditure +18 +25% +9% 69% % Odinsa 312 72 605 96 264 88
Slide 20: Sound equity structure of Grupo Argos supported by AAA rating
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Sound equity structure of Grupo Argos supported by AAA rating Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 14.584 12.141 13.387 1.018 11.781 492 2 1.636 923 1.433 567 1.040 42 192 701 346 5.444 5.658 5.014
Slide 21: Separated EBITDA grows 136% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Separated EBITDA grows 136% YOY Resumen P&G Resultados Trimestre Resultados Acumulados Año COP mil mn 2Q - 2023 2Q - 2022 Var.(%) jun-23 jun-22 Var.(%) Ingresos 555 172 223% 984 457 115% Costos y otros egresos 114 15 683% 140 40 252%
Slide 22: Separated revenue was COP 555 billion during 2Q2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Separated revenue was COP 555 billion during 2Q2023 Revenue distribution 2Q2023 COP bn % Variation (YOY) + 9 9 + 4 0 0 0 9 9 % 0 0 0 % +53% +57% +234% -27% +134% +5% +51% -1 0 0 % 555 155 2 24 51 275 47 Real Estate Negocio Business I
Slide 23: Available upon closing on jun-23: COP 684 bn
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Available upon closing on jun-23: COP 684 bn . Financial returns surpass COP 35 billion Cash flow Notes COP million COP million 1. Div. received: 307,421. Div. Paid: 233,176 1 Dividendos netos 74.245 2. Stock purchases/ sales: 275,90
Slide 24: Hedging and compliance with the ESG loan reduce Kd by 600 bps
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Hedging and compliance with the ESG loan with Bancolombia reduce Kd by 600 bps to 10.5% Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Net Debt = 0,95 tn (-8% YOY) 2% 0% 25% 7% 26% 0% 28% 0% 12% 4,5
Slide 25: AAA ratings from rating agencies
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 AAA ratings from rating agencies AAA AAA 1 1 Observing Evolution Stable July 2023 May 2023 § Evolution under Observation after MOU announcement § Fulfilment of key milestones allowed monetizing assets, § Rating reflects credit qualit
Slide 26: Sustainability milestones
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Sustainability milestones Private Social Investment as a Opening of the Cauca River Forest Research and Conservation Center (CIRCA, priority to Grupo Argos in Spanish) • CIRCA opened its doors on July 21 to offer and develop alternat
Slide 27: 2023 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 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) 27 Agosto2023
Slide 28: Annexes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 28 Agosto2023
Slide 29: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 29 Agosto2023
Slide 30: Cement volumes end the quarter at 4.0 million tons shipped
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Cement volumes end the quarter at 4.0 million tons shipped Cement Volumes millions of tons Concrete Volumes millions of m3 1 USA COL C y CA USA COL C y CA 4,22 0,10 0,02 4,02 2,0 0,1 0,00 0,00 1,8 1,0 1,0 0,1 0,15 0,7 0,6 1,5 1,4 -5%
Slide 31: Sound financial results reflected by revenue, EBITDA and net income
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Sound financial results reflected by revenue, EBITDA and net income Revenue COP bn Ebitda COP bn Net profit to the controlling COP bn interest 120 57 341 3.332 11 93 662 340 132 101 2.851 100 -258 509 -82 80 60 40 5 +17% +30% 20 +174
Slide 32: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 32 Agosto2023
Slide 33: Generation for the quarter dropped compared to the same period last year
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Generation for the quarter dropped compared to the same period the previous year Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regul ado Regulated 1.876 1.549 1.647 267 969 -215 9
Slide 34: Revenue at Celsia growing by double digits
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Revenue at Celsia growing by double digits Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 1.585 39 29 348 481 106 161 458 -16 45 1.208 61 132 1.424 43 435 397 1.076 +31% +5% 2Q 2Q - 2022 COL C.A.
Slide 35: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 35 Agosto2023
Slide 36: Roadways: Stable ADT
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Roadways: Stable ADT YDT 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) +2% -3% -3% -11% -10%
Slide 37: Roadways: Asset performance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Roadways: Asset performance Revenue Variación % Variación % (A/A) (A/A) +19% +38% +0% +33% 96.971 65.533 70.468 66.369 66.479 55.210 61.030 46.000 Túnel de Oriente Pacífico 2 AKF Malla V ial del M eta 2022 2023 EBITDA Variación % (A/
Slide 38: Airports: Quiport exceeds pre-pandemic levels since April
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2023 Airports: Quiport exceeds pre-pandemic levels since April, Opain +13% vs 2019 Opain: Monthly passengers Millions of Quiport: Monthly passengers Thousands of PAX PAX +18% +19% +11% +1% +4% +7% +9% +74% +52% +41% +25% +20% +34% +38% 18
Slide 39: www.grupoargos.com
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 www.grupoargos.com
Slide 40: PRESENTACIÓN DE RESULTADOS TRIMESTRALES Agosto2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 40 Agosto2023