Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q1 2021 Earnings Presentation
39 slides from Grupo Argos's earnings presentation, May 2021
Slide 1: Quarterly Results Presentation First Quarter 2021
QUARTERLY RESULTS PRESENTATION Fir st Quar ter 2021 Financial Results Presentation May 2021 1 May 2021
Slide 2: Disclaimer
Resultados QUARTERLYPrimer RESULTS Trimestre PRESENTATION 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 forecasts, circ
Slide 3: 2020 Milestones & Future Value Drivers
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Ideal competitive and operational position to drive growth during the next years 2020 Milestones & Future Value Drivers Diversification Operational Lever Finacial Discipline ✓ Exposure to economic recovery ✓ Lean operational structure ✓ Finan
Slide 4: Operational Results – Business Segments
QUARTERLY RESULTS PRESENTATION Operational Results – Business Segments 4 May 2021
Slide 5: Positive cement demand growth in our markets
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Positive cement demand growth in our markets Divestment of RMC operations in Dallas • An agreement was signed with SRM concrete to sell 24 RMC plants in Dallas for + USD 180 mm Colombia: Record in housing sales • 21,000 units sold in March 20
Slide 6: Operational lever enables 30% growth in Ebitda for the quarter
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Operational lever enables 30% growth in Ebitda for the quarter Operational Revenue COP k mm EBITDA COP k mm 1Q2020 vs 1Q2021 +6% 1Q2020 vs 1Q2021 +30% Cement Volume Volumen Cemento (y/y) (y/y) 2.50 2,364 2,322 2,318 2,180 2,135 1Q2021 vs 2.00
Slide 7: New businesses and innovation are the drivers of growth
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 New businesses and innovation are the drivers of growth Quarter revenue of COP 980 bn driven by innovation in households and industrial segments • Asset management: COP 644 bn (-10% y/y) • Households: COP 227 bn (+48% y/y) • Industrial: COP 1
Slide 8: Growth in energy generation during 2021 and stability in our operation
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Growth in energy generation during 2021 and stability in our operation Operational Revenue COP k mm EBITDA COP k mm 1Q2020 vs 1Q2021 +6% 1Q2020 vs 1Q2021 +2% Generation(ex. Generación (ex.ZF) ZF) Commercialization Comercialización (y/y) (y/y)
Slide 9: Resilience of road traffic is key for the portfolio stability
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Resilience of road traffic is key for the portfolio stability 114 k average daily traffic during the quarter • 11% y/y growth in traffic • Positive performance of Tunel de Oriente that decreases marginally (-2%) considering the lower airport
Slide 10: Road traffic grows 24% and airports operate at ~50% vs March 2019
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 By March 2021, road traffic grows 24% and airports operate at ~50% compared with March 2019 Operational Revenue COP k mm EBITDA COP k mm 1Q2020 vs 1Q2021 +9% 1Q2020 vs 1Q2021 +20% Highways (ADT) Carreteras (TPD) Airports (PAX) Aeropuertos (PA
Slide 11: NDU – Optimism with improving sector performance
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 NDU – Optimism with improving sector performance Growth Drivers Financial Results Calablanca Project in Barú COP bn 1 P&L 1Q21 1Q20 Var (%) Revenue 20 16 23% ✓ Tourism reactivation EBITDA -11 -13 12% • Revenue grows mainly due to rising valua
Slide 12: Pactia – Occupation levels reach maximum level since December 2019
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Pactia – Occupation levels reach maximum level since December 2019 Revenue Distribution COP bn Main Figures COP bn 80 3 6 PACTIA FCP COP bn 1Q - 2021 1Q - 2020 Var.(%) 17 Revenue 80 86 -7% 24 Operating Costs 26 29 -9% Operating Expenses 16 16
Slide 13: Financial Results
QUARTERLY RESULTS PRESENTATION Financial Results 13 May 2021
Slide 14: Consolidated Results 1Q2021
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 Proforma EBITDA grows 15% due to better operational results in the business segments P&L Summary COP bn 1Q - 2021 1Q - 2020 Var.(%) Revenue 3,733 3,616 3% Costs, expenses and other revenue Operating Profit Ebitda 3,208 525 952 3,
Slide 15: Contribution of Cementos Argos and Celsia overweights lower contribution from concessions
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 Contribution of Cementos Argos and Celsia overweights lower contribution from concessions Consolidated revenue 1Q2021 COP bn Consolidated revenue 1Q2021 (PRO FORMA*) COP bn 4,500 4,500 4,000 3,616 141 51 39 7 3,733 4,000 51 44 3,
Slide 16: EBITDA growth driven by the performance of the cement business
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 EBITDA growth driven by the performance of the cement business Consolidated Ebitda 1T2021 COP bn Consolidated Ebitda 1T2021 (PROFORMA*) COP bn 1,100 1,100 81 1 952 81 952 103 2 103 2 -6 819 825 900 900 -43 -11 -43 -11 700 700 500
Slide 17: All businesses continue with efficiency plan
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 All businesses continue with efficiency plan. Celsia is impacted by non-recurring events1 Consolidated Expenses Cementos Argos Expenses Celsia Expenses Odinsa + Opain Expenses +1% +2% +11% - 9% 230 75 OPAIN 439 443 225 67 103 Odi
Slide 18: Financial discipline and cash flow generation enabled a decrease in total debt
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 Financial discipline and cash flow generation enabled a decrease in total debt Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 18,609 17,125 16,208 17,397 300 1,717 1,602 -523 1,597 -689 1,599 26 4,843 4,5
Slide 19: Separated Results 1Q2021
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Proforma separated results with growth in every line of the P&L statement Summary P&L COP bn 1Q - 2021 1Q - 2020 Var.(%) Revenue 189 200 -6% Costs and other expenditures 3 24 -89% GA Expenses 49 47 4% Operating Profit 137 128 7% Ebi
Slide 20: Separated proforma revenues grow 15%
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Separated proforma revenues grow 15% due to the better performance of our strategic businesses 1Q2021 Revenue distribution COP bn 1T2021 Controllable expenses COP bn Variation % (y/y) 60 49 +999000% -24% -26% +857% +29% -15% +135% -
Slide 21: Expenses have decreased significantly during the last years
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Expenses have decreased significantly during the last years Grupo Argos Expenditures COP bn Real Estate Business Expenditures COP bn Total Expenditures (GA) / AUM4 = 0.3% Real Estate Expense Detail 140 ▪ Property tax (2020) = COP 24
Slide 22: Cost of debt closes at 4.7%
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Cost of debt closes at 4.7% thanks to treasury management and the favorable rate environment Debit1 COP bn Maturity Profile (capital) COP bn Cost of debt 10.0% 9.0% 0% 8% 0% 26% 23% 0% 9% 0% 24% 0% 10% 30% 8% 8.0% 7.0% 30% Bonds Bon
Slide 23: S&P assigns positive outlook and confirms AA+ rating
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 S&P assigns positive outlook and confirms AA + rating of Grupo Argos "The confirmation of the rating considers the adequate payment capacity of Grupo Argos in adverse scenarios such as 2020. This, as a result of the organization's q
Slide 24: Sustainable financing that generates value on all fronts
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Sustainable financing that generates value on all fronts We formalized the first loan tied to indicators of gender equality and climate change in Colombia The operation modifies the conditions of an existing debt of COP 392 bn, so t
Slide 25: Total discount per share could be over 47% according to analysts
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Total discount per share could be over 47% according to analyst recommendations (ANR)1 Sum of the Parts - Grupo Argos COP per share of Grupo Argos 1 Discount vs Analyst Valuations ANR (listed) & 1.0x BV Market price (listed assets) & VPN Over
Slide 26: Responsible cash management postposed short term investments at the holding level
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 1Q2021 Responsible cash management postposed short term investments at the holding level Cash Flow COP bn Notes 1. Dividends received: COP 137 bn, dividends payed: COP 80 bn 1 Net Dividends Dividendos netos 57 2. Developed lots: COP 17 bn, Others: C
Slide 27: Annexes
QUARTERLY RESULTS PRESENTATION Annexes 27 May 2021
Slide 28: Cement Business
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 28 May 2021
Slide 29: Cement demand picks up in Colombia and CCA
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 1Q2021 Cement demand picks up in Colombia and CCA to reach a volumen of 4.1 mm ton in the quarter Cement Volume mm ton RMC Volume mm m3 USA COL C y CA USA COL C y CA 4.1 2.1 0.3 2.0 0.1 0.0 0.2 3.6 0.0 0.1 -0.1 -0.0 1.4 0.6 0.6 1.2 1.2 1.0 +14% 1.5 -4%
Slide 30: EBITDA grows 30% vs the same quarter of the previous year
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 1Q2021 EBITDA grows 30% vs the same quarter of the previous year Revenue COP bn Ebitda COP bn Net controller profit COP bn 2,318 445 55 2,180 4 80 53 0 40 23 43 -4 343 +6% +30% +13x 4 1Q - 1Q USA COL C y CA Otros 1Q- 1Q 1Q - 1Q USA COL C y CA Otros 1Q-
Slide 31: Energy Business
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 31 May 2021
Slide 32: 18% growth in energy generation
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 1Q2021 18% growth in energy generation due to the entry of new power plants and better weather in Colombia Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A Non No Regulated Regulado Regulated Regulado 864 30 874 1,396 -20 -140
Slide 33: Net controller profit +28% due to better operational results
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 1Q2021 Net controller profit +28% due to better operational results and less financial expenses Revenue COP bn Ebitda COP bn Net controller profit COP bn COL C.A COL C.A 336 84 980 331 0 6 928 66 -14 47 42 136 122 65 858 289 289 792 +6% +2% +28% 1Q 1Q -
Slide 34: Concessions Business
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 34 May 2021
Slide 35: Airport impacts partially compensated by increase in road traffic
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 1Q2021 Impacts on the airport business are partially compensated by the increase in road traffic Daily vehicle average Thousands of vehicles Airport traffic Millions of Passengers (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 8.5 113.8 5.4 1.2 102.2
Slide 36: Airport segment negative contribution compensated by toll roads
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 1Q2021 Airport segment has a negative contribution on the consolidated results compensated by toll roads segment Revenue COP bn Ebitda COP bn Net controller profit COP bn 55 50 -11 135 209 3 192 -13 6 112 -22 -2 -22 -4 15 +9% +20% +250% 2020 Otros
Slide 37: Recovery affected by new mobility restrictions in 2021
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS – OPAIN 1Q2021 Recovery affected by new mobility restrictions in 2021 Passengers Mm PAX 3.1 Doméstico Domestic Internacional International 2.8 1.6 1.5 1.4 1.3 1.0 1.1 0.6 0.3 0.0 0.0 0.0 0.0 0.0 01/2020 02/2020 03/2020 04/2020 05/2020 06/2020 07/20
Slide 38: CEO, CFO, IR contacts
QUARTERLY RESULTS PRESENTATION CEO CFO Jorge Mario Velásquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejía Tel: (574) 319-8712 Tel: (57) 311 302 8427 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com 38 May 2021
Slide 39: QUARTERLY RESULTS PRESENTATION May 2021
QUARTERLY RESULTS PRESENTATION 39 May 2021