Grupo Argos S.a. · BVC:GRUPOARGOS

Grupo Argos — Q2 2021 Earnings Presentation

40 slides from Grupo Argos's earnings presentation, August 2021

  1. Slide 1: Second Quarter 2021 Results Presentation

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Second Quar ter 2021 Results Presentation August 2021 El Carmelo Solar Farm 1 Agosto 2021

  2. 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

  3. Slide 3: 2Q 2021 Results

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Strategy implemented enables profitability growth compared to 2020 and 2019 2Q 2021 Results Vaccination Plan Value Driver Financial Discipline ✓ 10,200 Corporate Group ✓ Light structure (decreased costs ✓ Total debt reduced by over C

  4. Slide 4: Operational Results – Grupo Argos Businesses

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operational Results – Grupo Argos Businesses 4 Agosto 2021

  5. Slide 5: CemArgos: Net Debt/EBITDA at 3.1x thanks to operational growth and Dallas divestment

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 CemArgos: Net Debt/EBITDA at 3.1x thanks to operational growth and divestment in the Dallas operations US$ 184M divestment in Dallas RMC operations • The sale of 24 concrete plants in Dallas, Texas to SRM Concrete was closed for a to

  6. Slide 6: Proforma EBITDA grows 26% leveraged by operational efficiencies and higher sales volumes

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Proforma EBITDA grows 26% leveraged by operational efficiencies and higher sales volumes Operating Revenue COP bn EBITDA1 COP bn 2Q2021 vs 2Q2020 +16% 2Q2021 vs 2Q2020 +68% CementCemento Volumen Volume (YOY) (YOY) EBITDA grows 26% ex

  7. Slide 7: Progress with corporate growth projects – solar plants and Termo Tesorito

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Progress with corporate growth projects – 2 solar plants and Termo Tesorito Collections at 98% driven by better service • Consolidated collections for the quarter were at 98%, evincing business resilience during the national strike •

  8. Slide 8: Energy: Revenue and EBITDA growth excluding Zona Franca option

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Revenue and EBITDA grow proportionally if the option to sell for Zona Franca in 2020 is excluded Operating Revenue COP bn EBITDA COP bn 2Q2021 vs 2Q2020 +5% 2Q2021 vs 2Q2020 +0% Generation(ex. Generación (ex.ZF) ZF) Comercialization

  9. Slide 9: Fitch ratifies Odinsa rating and Pacifico 2 is refinanced

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Fitch ratifies the rating for Odinsa with a stable Outlook and Pacifico 2 is refinanced Fitch Ratings ratifies Odinsa’s AA- rating • Long-term national scale rating of ‘AA-(col)’ with a Stable Outlook • Considered: Presence of Grupo

  10. Slide 10: Airport traffic reached 2.1 million passengers in June, driving Odinsa's recovery

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Airport traffic reached 2.1 million passengers in June, driving Odinsa’s recovery Operating Revenue COP bn EBITDA COP bn 2Q2021 vs 2Q2020 +55% 2Q2021 vs 2Q2020 +49% Toll Roads (TPD) Carreteras (TPD) Airports (PAX) Aeropuertos (PAX) (

  11. Slide 11: Real Estate Business – Sales at Ribera de Mallorquín drive revenue growth

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Real Estate Business – Sales at Ribera de Mallorquín result in revenue growth of 115% YOY Real Estate Business Proyecto Calablanca en Barú COP mil mn P&L 2Q21 2Q20 Var (%) Revenue 84 39 115% EBITDA 24 23 4% • Revenue grows 115% and E

  12. Slide 12: Pactia – Favorable occupation in commercial, logistics, and office assets

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Pactia – Favorable occupation in comercial, logistics, and office assets EBITDA Distribution (Cumulative) COP billions Main Figures COP billions 74 PACTIA FCP -2 -2 -1 COP bn 2Q21 2Q20 Var.(%) jun-21 jun-20 Var.(%) 24 Revenue 81 57 4

  13. Slide 13: Financial Results

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Financial Results 13 Agosto 2021

  14. Slide 14: Cumulative net profit as of June is almost 4x the net profit of all 2020

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS CONSOLIDATED RESULTS 2Q2021 Cumulative net profit as of June is almost 4x the net profit recorded in all of 2020 P&L Summary Quarterly Results Cumulative Results for the Year Cum. '21 vs '19 COP bn 2Q - 2021 2Q - 2020 Var.(%) Jun-21 Jun-20 Var.(%)

  15. Slide 15: 20% YOY revenue growth with positive contributions from all segments

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS CONSOLIDATED RESULTS 2Q2021 20% (YOY) growth with positive contributions from all segments Consolidated Revenue 2Q2021 COP bn Consolidated Revenue 2Q2021 (PROFORMA*) COP bn 4,500 4,500 47 4,027 47 4,025 4,000 180 65 4,000 180 65 347 46 -4 347 46 -5

  16. Slide 16: Proforma EBITDA passes COP 1 trillion with 27% growth

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS CONSOLIDATED RESULTS 2Q2021 Proforma EBITDA for the quarter passes COP 1 trillion with 27% growth compared to 2Q 2020 Consolidated Ebitda 2Q2021 COP bn Consolidated Ebitda 2Q2021 (PROFORMA*) COP bn 1,303 1,400 1,400 43 7 79 17 283 1,128 43 6 1,200

  17. Slide 17: Increased expenses due to operational growth, less than EBITDA and profit growth

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS CONSOLIDATED RESULTS 2Q2021 Increased expenses are due to operational growth and are less than EBITDA and Profit growth Consolidated Expenses Cementos Argos Expenses Celsia Expenses Odinsa + Opain Expenses +6% +16% -10% - 4% 419 233 OPAIN 394 77 Od

  18. Slide 18: Financial discipline and cashflow generation result in reduced indebtedness

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS CONSOLIDATED RESULTS 2Q2021 Financial discipline and cashflow generation result in reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 18,545 16,645 17,008 15,902 345 1,742 1,626 -1,532 1,722 39 -5 1,724 274

  19. Slide 19: Separate results: proforma EBITDA and net profit grow vs. 2019

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS SEPARATE RESULTS 2Q2021 Proforma cumulative EBITDA and proforma cumulative Net Profit grow 26% and 52% respectively vs. 2019 Summary P&L Quarterly Results Cumulative Results for the Year Cum. '21 vs '19 COP bn 2Q - 2021 2Q - 2020 Var.(%) Jun-21 Jun

  20. Slide 20: Business performance increases equity method revenues by COP 125 bn

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS SEPARATE RESULTS 2Q2021 Business performance increases revenues from the equity method (EM) by COP 125 bn Revenue distribution 2Q2021 COP bn Controllable expenses 2Q2021 COP bn Variation % (YOY) 30 28 +19% +999000% +140% +2351% +1227% -22% +111% +6

  21. Slide 21: Ongoing search for expense efficiencies at Grupo Argos and Real Estate Business

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS SEPARATE RESULTS 2Q2021 Ongoing search for expense efficiencies at Grupo Argos and the Real Estate Business (NDU) Grupo Argos Expenses COP bn Real Estate Business (NDU) Expenses COP bn Total Expenses (GA) / AUM4 = 0.3% Expense Details for the Real

  22. Slide 22: Normalization of the treasury's minimum cash strategy

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Normalization of the treasury’s minimum cash strategy Cashflow COP bn Notes 1 Net Dividends Dividendos netos -51 1. Dividends received : COP 207 bn, dividends paid: COP 258 bn I. Grupo Argos paid 100% of the dividend corresponding to

  23. Slide 23: Debt levels stable YOY at COP 1.7 tn, including bridging credit

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS SEPARATE RESULTS 2Q2021 Debt levels stable YOY at COP 1.7 tn, including bridging credit to pay dividends Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and halflife 10.0% 9.0% 8% 7% 0% 18% 21% 6% 8% 0% 23% 0% 10% 7% 8.0% 35% Br

  24. Slide 24: Fitch ratifies GA rating and S&P improves outlook to positive

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS SEPARATE RESULTS 2Q2021 Fitch ratifies GA rating and S&P maintains rating and improves outlook from stable to positive AAA AA+ 1 1 Stable Positive June 2021 May 2021 ▪ Robust and diversified portfolio by sectors and geographies ▪ Adequate capacity

  25. Slide 25: Highlighted social and environmental events during the quarter

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS SEPARATE RESULTS 2Q2021 Highlighted social and environmental events during the quarter Social Value Creation – 3 lines for social impact are ongoing Leadership in Energy and Environmental Design (LEED) Constructions with the seal of the Corporate G

  26. Slide 26: Attractive potential for valuation according to current arbitrage pricing

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Attractive potential for valuation according to current arbitrage pricing Grupo Argos Arbitrage Price1 (12/08/2021) COP / Share Historical Arbitrage Gap1 (Relative Prices) +71% (Com. Sh.) 120 Lockdown begins (Mar – 2020) +119% (Pref.

  27. Slide 27: Results Guidance 2021

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2021 Results Guidance 2021 15.6 – 16.2 4.2 – 4.5 1.0 – 1.2 Trillion COP Trillion COP Trillion COP Revenue 2021e EBITDA 2021e Net Profit 2021e Grupo Argos consolidated results for 2021 (results include EBITDA generated by the sale of the D

  28. Slide 28: Annexes

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 28 Agosto 2021

  29. Slide 29: Cement Business

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 29 Agosto 2021

  30. Slide 30: Cement volumes close at 4.5M tons with historical volumes in Central America

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS 2Q2021 Cement volumes close at 4.5M tons with historical volumes in Central America and the Caribbean Cement volumes* M of tons Concrete volumes* M of cubic meters USA COL C y CA USA COL C y CA 0.7 4.5 2.0 2.0 0.2 0.0 0.0 0.0 0.5 0.3 1.7 -0.2 0

  31. Slide 31: 24% growth in proforma EBITDA to close with a 21% margin

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS 2Q2021 24% growth in proforma EBITDA to close with a 21% margin (+170bps) Revenue COP bn Ebitda COP bn Net profit controlling entity COP bn 71 696 164 2,473 Sale of Dallas 172 62 2,135 217 -13 38 -0 162 174 -50 414 Proforma Proforma +26% +10x 1

  32. Slide 32: Energy Business

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 32 Agosto 2021

  33. Slide 33: Double digit growth in energy generation, sales, and commercialization

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS 2Q2021 Double digit growth in energy Generation, Sales, and Commercialization Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Un-regulated Regulado Regulated 47 1,709 24 854 770 59 1,354 1,494 45 169 245

  34. Slide 34: Revenue and proforma EBITDA grow 5% YOY

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS 2Q2021 Revenue and Proforma Ebitda grow 5% YOY even while starting from a favorable comparative basis in 2020 Revenue COP bn Ebitda COP bn Net profit controlling entity COP bn COL C.A COL C.A 30 940 891 19 312 313 15 73 118 88 37 -14 52 57 Prof

  35. Slide 35: Concessions Business

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 35 Agosto 2021

  36. Slide 36: 2.1 million PAX moved through the airports in June

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS 2Q2021 2.1 million PAX moved through the airports in June, exceeding expectations for recovery Daily average vehicular traffic Thousands of vehicles Airport traffic Millions of passengers (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 100.7 4

  37. Slide 37: Results that grow thanks to solid highways and airport recovery

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS 2Q2021 Results that grow thanks to solid highways and airport recovery Revenue COP bn Ebitda COP bn Net profit controlling entity COP bn 61 4 137 61 234 -5 -10 -7 38 92 1 151 -5 27 -10 +228% +55% +49% 2020 Otros 2021 2020 2021 Otros Aeropu

  38. Slide 38: OPAIN: Traffic recovery surpasses expectations

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS - OPAIN 2Q2021 Traffic recovery surpasses expectations and is reflected by improved financial results Passengers Millions of Passengers (PAX) 3.1 Doméstico Domestic Internacional International 2.8 1.9 1.6 1.4 1.4 1.3 1.2 1.3 1.0 1.1 0.6 0.

  39. Slide 39: CEO, CFO, IR Manager contacts

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velásquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejía Tel: (574) 319 8712 Tel: (574) 315 8400 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com 39 Agosto 2021

  40. Slide 40: PRESENTACIÓN DE RESULTADOS TRIMESTRALES Agosto 2021

    PRESENTACIÓN DE RESULTADOS TRIMESTRALES 40 Agosto 2021

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