Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2016 Earnings Presentation
41 slides from Grupo Argos's earnings presentation, 2017
Slide 1: Results Presentation 4Q2016
Results Presentation 4Q2016
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 knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events. Many factors could cause the future r
Slide 3: 2016 a year of actions towards reaching our long term plan
2016 a year of actions towards reaching our long term plan Strengthened our Strategic Architects, defining Built powerful infrastructure 1 2 3 infrastructure pillar four pursuance focus portfolio COP1,3 trillion in Strategic focus on Cement, investments over 2016. Strategic Energy and Concession
Slide 4: A successful year for Grupo Argos and its affiliates
A successful year for Grupo Argos and its affiliates Consolidated Results 2016 Separated Results 2016 Revenues 14,553 Revenues 1,097 EBITDA 3,620 EBITDA 518 Net Income 1,132 Net Income 352 Cement Concessions Energy Revenues 8,517 Revenues 1,486 Revenues 3,795 Consolidated EBITDA 1,595 Consolidated E
Slide 5: A year of concrete events exercising its role as Strategic Architect
A year of concrete events exercising its role as Strategic Architect REAL ESTATE SUMMA Private equity fund started and includes Proteccion Pension Fund. Creation of Summa, a Shared Services COP$ 2,5 trillion AUM. Center for Grupo Argos and its affiliates. Increases flexibility to finance expansion p
Slide 6: A year of concrete events exercising its role as Strategic Architect
A year of concrete events exercising its role as Strategic Architect REAL ESTATE SUMMA Private equity fund started and includes Proteccion Creation of Summa, a Shared Services Company Pension Fund. for Grupo Argos and its affiliates. Development and COP$ 2,5 trillion AUM. operation of shared process
Slide 7: Un año de hecho concretos ejerciendo su rol como arquitecto estratégico
Un año de hecho concretos ejerciendo su rol como arquitecto estratégico REAL ESTATE SUMMA Private equity fund started and includes Proteccion Creation of Summa, a Shared Services Company Pension Fund. for Grupo Argos and its affiliates. Development and COP$ 2,5 trillion AUM. operation of shared proc
Slide 8: Un año de hecho concretos ejerciendo su rol como arquitecto estratégico
Un año de hecho concretos ejerciendo su rol como arquitecto estratégico REAL ESTATE SUMMA Private equity fund started and includes Proteccion Creation of Summa, a Shared Services Company Pension Fund. for Grupo Argos and its affiliates. Development and COP$ 2,5 trillion AUM. operation of shared proc
Slide 9: Advances in the consolidation of Grupo Argos as an Infrastructure Holding
Advances in the consolidation of Grupo Argos as an Infrastructure Holding, backed up by the financial market El Dorado Airport Successful Grupo Argos’ Takeover Bid (TOB) with ~44% acceptances, reaching a total participation Assets portfolio 99% of 99% in Odinsa. Divestment Strategy Of voting rights
Slide 10: Accounting policy change in investment properties to fair value
Accounting policy change in investment properties to fair value – aligned with nature of business Adjusted Cost Fair Value Cost of acquisition plus costs necessary to put the asset under Cost of acquisition plus costs necessary to put the operation. asset under operation. Is depreciated Not
Slide 11: Robecosam ratifies our commitment with sustainability
Robecosam ratifies our commitment with sustainability The sustainability yearbook selects the most sustainable companies in the world in each industry as determined by the Dow Jones. Sustainability Index DJSI. Recognizes good practices in terms of sustainability in the economic, environmental an
Slide 12: Consolidated results that reflect strong business performance
Consolidated results that reflect strong business performance Significant figures - Income Statement Notes 2015 4Q2015 Var Q/Q (%) 1 Billions of COP 2016 Var Y/Y (%) 4Q2016 Restated Restated Positive variation in revenues of Odinsa that in 2016 consolidated throughout the year vs 2015 when it only
Slide 13: Consolidated results reflecting strong business performance
Consolidated results reflecting strong business performance Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 3.620 14.553 2 3 ,6 883 12.700 3.739 26,2 -6% 2.635 2016 +71% 26,3 3.998 516 883 23,7 3.362 +5% 683 +29% 3.212 3.396 892 1 2 ,9 +19% 2.850 765 +17% 21,3 2015 26,9 4.056 963 2.
Slide 14: Concession and energy businesses stand out for their contribution
Concession and energy businesses stand out for their contribution in revenues and Ebitda for Argos Group Business Contribution - Revenue Billions of COP 12.700 +728 14,553 Consolidated 12 months of Odinsa in 2016. +98 -30 +478 -3 +1 +580 Increase in Odinsa attributable to consolidation of Quipor
Slide 15: Consolidated Balance Sheet - December 2016
Consolidated Balance Sheet - December 2016 December 2016 Assets Trillions of COP Short-term Corto Plazo (ST) 14% 22% 21,1 Inversiones Long-term (LT) Investments Assets Activos Permanentes 44,7 Equity Patrimonio 23% PP&E PP&E 23,6 Liabilities Pasivo 41% Assets Activos Equity & Patrimonio Pasivo Liabi
Slide 16: Separate results in 2016 non comparable on portfolio divestments
Separate results in 2016 non comparable on portfolio divestments Significant figures - Income Statement Notas 2015 4Q2015 Var Q/Q Billions of COP 2016 Var Y/Y (%) 4Q2016 1 Restated Restated (%) Revenues Distribution 1 Revenue 1.097 1.144 (4.2%) 622 152 309% Venta de inversiones Financial income ($54
Slide 17: Individual Balance Sheet - December 2016
Individual Balance Sheet - December 2016 December 2016 Assets Trillions of COP Short-term Corto Plazo (ST) 11% 3% 1,8 0% Long-term (LT) Investments Inversiones Assets Activos Permanentes 17,0 15,2 Equity Patrimonio PP&E PP&E Liabilities Pasivo 85% Assets Activos Equity Pasivo&&Liabilities Patrimonio
Slide 18: Leverage ratios (separate) healthy and within the limits
Leverage ratios (separate) healthy and within the limits established by the rating agencies Debt (COP trillions) Leverage ratios 1.650 • Indicators within 6% 1.442 6,8x the limits 33% established by risk 38% agencies. Foreignextranjeros Bancos Banks Max: 3.5x National Bancos banks nacionales 2,9x 2.
Slide 19: Investment Portfolio grows 16.3%
Investment Portfolio grows 16.3% as a result of the consolidation in the concessions business Decembre 2015 December 2016 Cement Cemento Cement Cemento FinancialFinancieros Servicios Services FinancialFinancieros Servicios Services COP$ 17,4 Real Estate Inmobiliario COP$ 20,2 Real Estate Inmobiliari
Slide 20: Cement Business
Cement Negocio Business de Cemento
Slide 21: United States most representative division + Efficiency Focus
United Stated most representative división + Efficiency Focus Productive Development of an Transformation OUTSTANDING FOOTPRINT Sabanagrande and San Gil Savings of In the USA ~COP 30 bn/year Reduce the BEST Greater clinker / cement DIVERSIFICATION factor Shared service center Vertical Savings Integr
Slide 22: Lower cement and ready-mix sales' volume due to competitive environment in Colombia
Lower cement and ready-mix sales’ volumen due to a competitve environment in Colombia Cement (TMT) Cement sales 4Q2016 3.642 Colombia -363 +116 Colombia 3.441 +46 28% +13,6% YoY 37% -22,2% YoY +4,0% YoY 3,441 Caribe y CA and CA Caribbean -5,5% TMT 35% USA - Sureste USA – Southeast 4Q2015 4T2015 Colo
Slide 23: Exposure to markets with different economic cycles
Exposure to markets with different economic cycles allowed to generate resilient results in a challenging market in Colombia Revenues EBITDA EBITDA Margin (%) COP$ Billions COP$ Billions 1.652 8.517 7.912 1.519 2.004 396 19,8 -7% -5% 2.152 415 18,7 2016 19,9 2.111 395 -8% -9% 19,2 2.284 433 2.189 43
Slide 24: Energy Business
Energy Business
Slide 25: Year of recovery after El Niño Phenomenon
Year of recovery after El niño Phenomenon REVENUES Operating improvements COP$ 3,794 oriented to gain efficiency EBITDA Plan 5 Caribe COP$ 1,031 Participated in guild discussions to define the regulatory issues EBITDA Margin 27,2% that are used to define the thermal assets’strategy NET RESULT
Slide 26: GX and DX Energy Volumes. Fourth Quarter
GX and DX Energy Volumes. Fourth Quarter Generation in GWh Power Generated in GWh 8.129 7.751 7.135 6.170 1.592 5.039 1.616 1.729 2.195 2012 2013 2014 2015 4Q16 Energy Sales in GWh Energy Traded (Reg. + Non-reg.) 10.470 10.433 2.097 1.585 9.244 1.930 1.852 1.957 1.819 7.932 1.647 505 1.917 6.145 3.7
Slide 27: Financial Results
Financial Results Revenue EBITDA EBITDA Margin (%) COP$ Billions COP$ Billions +3% 3.795 3.692 1.031 +51% 32,3 793 -41% 256 31,7 1.339 2016 +118% 30,5 777 684 -3% 246 19,6 117 797 +61% 862 152 +13% 8,8 263 765 201 +31% 19,1 2015 26,3 1.363 791 +72% 267 26,9 213 +25% 2015 2016 2015 2016 1Q 1T 2T 2Q 3
Slide 28: Concessions Business
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Slide 29: Portfolio Optimization, Positioning Itself in Colombia's Infrastructure Sector
Portfolio Optimization, Positioning Itself as One of the Main Companies in Colombia's Infrastructure Sector Autopistas del Café Simplification of the strategy, focusing on the portfolio 2 Airport Concessions Positioning in the infrastructure sector Optimal growth platform Under Construction Pa
Slide 30: Stable behavior in passengers and vehicle traffic
Stable behavior in passengers and vehicle traffic Average Daily Traffic (Road Concessions) Revenue Number of cars (Thousands of Millions) 81,6 82,2 4 4 Boulevard Turistico del 10 10 +1% 23% Atlántico 6 6 Autopistas del Nordeste 9 9 Pacífico 2 18 20 COP 1.4 bn Santa Marta 13% 64% Malla Vial 33 34 Aut
Slide 31: PPA adjustments affect the comparability of the numbers
PPA adjustments affect the comparability of the numbers 2015 vs 2016 results Comparative financial results - Odinsa 2015 2016 Odinsa’s results are different from the ones that Real For GA Real For GA Real - recurrent appear in Grupo Argos’ financial statements due to: Revenue 902 891 1,486 1,079 1.0
Slide 32: Financial Results
Financial Results Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 1.486 1.066 +65% 29 448 +265% 45 2016 902 605 56 -16% 303 52 361 +48% +21% 261 89 216 308 +19% 17 +47% 221 118 60 +61% 46 150 99 123 2015 +44% 252 76 +79% 51 175 131 73 42 2015 2016 2015 2016 1Q 1T 2Q 2T 3Q 3T 4Q 4T 4
Slide 33: Real Estate Business
Real Estate Business Desarrollo urbanístico, Barranquilla
Slide 34: Acceleration of the Development Strategy of the Land and Real Estate Business
Acceleration of the Development Strategy of the Land and Real Estate Business Creation of the Pactia Private Equity Fund. Sale 182ha to Amarilo in Barranquilla. Partnership with Pension Fund Protección to develop the Resolution 0330 / November 1, 2016, was issued, real estate fund. GA contri
Slide 35: Operating Figures – Real Estate Portfolio
Operating Figures – Real Estate Portfolio Shareholding in PA Pactia (%) GLA 504.384 m2 100% 3,9% 2,9% 80% 39,0% 40,0% 40,0% 40,1% 44,1% 13,7% Industry Industria 60% 39,7% Commerce Comercio Grupo Argos 40% Conconcreto Offices Oficinas 61,0% 60,0% 60,0% 59,9% 55,9% Self storage Autoalmacenamiento 20%
Slide 36: Port Business
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Slide 37: Operating Figures–Challenging Year of Strategic Alliances and Investments
Operating Figures–Challenging Year of Strategic Alliances and Investments Mobilized Containers Import and Export Containers -2% 75.000 69.625 25.000 23.591 23.163 65.000 15.474 5.848 +40% -4% 52.272 20.000 55.000 8.181 45.000 20.260 14.842 15.000 6.340 -18% -50% 35.000 5.199 10.135 -18% 10.000 25.00
Slide 38: Financial Results
Financial Results* Revenue Billions of COP EBITDA Billions of COP EBITDA Margin (%) 180 65 160 60 160 55 31 140 44 129 17 -36% 27 -48% 44 2016 120 45 35 28 9 41 100 38 15 -22% 35 29 -45% 80 8 25 60 39 14 -17% 11 38 -15% 33 15 39 40 2015 35 20 39 38 15 16 -3% 5 +6% 38 0 2015 2016 -5 2015 2016 0 10 20
Slide 39: Annexes
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Slide 40: Grupo Argos – Contribution by Business
Grupo Argos – Contribution by Business 3 4 Var. Var. Var. Var. Var. Var. Var. Eliminaciones Consolidado Var. 1 Ingresos from Revenuepor Ordinary Activities actividades ordinarias 8.517.382 8% 3.794.910 3% 203.737 10% 128.687 -20% 1.383.509 6% 69.123 -9% 1.078.655 208% -623.118 14.552.884 15% 1 Utili
Slide 41: Thank you
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