Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (September 2020)
39 slides from Grupo Argos's investor presentation, September 2020
Slide 1: Grupo Argos Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation September 2020 1 September 2020
Slide 2: Important Note
CORPORATE PRESENTATION Important Note This presentation contains certain forward-looking representations and information related to Grupo Argos and its subsidiaries based on currently known facts, expectations and forecasts, circumstances and assumptions regarding future events. Many factors could c
Slide 3: Grupo Argos Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation 3 September 2020
Slide 4: Grupo Argos at a glance
CORPORATE PRESENTATION WHO WE ARE Grupo Argos at a glance Liquid vehicle1 to invest in infrastructure in Colombia Strategic focus in Cement, Energy, Road and Airport Concessions 3 REGIONS Solid and articulated portfolio with ~ USD 14 billion2 in consolidated assets Balanced in regions, currency, and
Slide 5: Focus: from cement investments to infrastructure asset manager (2012 vs 2019)
CORPORATE PRESENTATION 2012 2019 FOCUS: Investments related with the cement FOCUS: Infrastructure asset manager, focus on capital industry allocation ASSETS: In different sectors and segments of ASSETS: Articulated portfolio focused on cement, the economy energy, concessions and real estate MANAGEME
Slide 6: Grupo Argos 2012 vs 2019 comparison
CORPORATE PRESENTATION 2012 2019 Assets: COP 27 trillion Assets: COP 56 trillion *Data last twelve months (LTM) as of March 2020 Revenues: COP 6.7 trillion Revenue: COP 16.7 trillion Ebitda: COP 1.6 trillion Ebitda: COP 4.6 trillion Net profit: COP 344 billion Net profit: COP 1.1 trillion Employees:
Slide 7: Strategic portfolio focused on infrastructure
CORPORATE PRESENTATION PORTFOLIO Strategic portfolio focused on infrastructure USD 2.1 bn USD 4.2 bn USD 1.2 bn MARKET CAP *1 REVENUES *2 EBITDA *2 CEMENT ENERGY CONCESSIONS In Infrastructure STRATEGIC 58.1% *3 52.9% *8 99.9% Revenues: USD 2.4 bn Revenues: USD 1.0 bn Revenues: USD 0.43 bn (+0.2 bn o
Slide 8: Who we are: diversified Ebitda contribution
CORPORATE PRESENTATION WHO WE ARE? In the last 5 years we have been able to diversify the contribution in terms of Ebitda COP 53.9 trillion Consolidated Assets (June 2020) COP 907 billion Consolidated Net Profit (LTM June 2020) COP 402 billion Net Profit of the parent company (LTM June 2020) Consoli
Slide 9: Key messages that support our value generation strategy
CORPORATE PRESENTATION HOW WE GENERATE VALUE Key messages that support our value generation strategy 1 Track record that demonstrates the ability of Grupo Argos to acquire, transform and generate value successfully from the companies it controls Odinsa: Simplification, capital structure and 7 2 pipe
Slide 10: Odinsa: Capital structure optimization to leverage growth
CORPORATE PRESENTATION STRATEGY Odinsa: Capital structure optimization to leverage growth Strategy Consolidation and growth of the business in toll roads and airport concessions to become a regional leader Plan and execute projects for the development of the regions in which we operate During 2019 w
Slide 11: Celsia: Energy platform of Grupo Argos
CORPORATE PRESENTATION STRATEGY Celsia: Energy platform of Grupo Argos Strategy Consolidate the portfolio in strategic assets Become one of the most powerful platforms in the energy segment in the region, leaders in innovation applied to customer service, and in the development of renewable energies
Slide 12: Cementos Argos: Efficiencies achieved reflected in results
CORPORATE PRESENTATION STRATEGY Cementos Argos: Efficiencies achieved reflected in companies results Strategy Decrease leverage ratio below 3.5 times net debt/ Ebitda Responsible and efficient cash flow management Continue innovating in products to maintain leadership in the construction materials s
Slide 13: We added 2.4 times what we took from society
CORPORATE PRESENTATION HOW WE GENERATE VALUE We added 2.4 times what we took from society equivalent to USD 220.3 million Value added statement of Grupo Argos 2019 (USD million) ECONOMIC SOCIAL ENVIROMENTAL 0,048 220,3 87,5 0,5 7,1 -0,008 -0,007 -0,033 19,4 13,4 92,4 Retained Benefits Salaries and B
Slide 14: Share price affected by market liquidity, not reflecting fundamental value
CORPORATE PRESENTATION SOTP Share price affected by market liquidity, not reflecting companies fundamental value SOTP Analyst average target price (price/share) SOTP market prices (price/share) 16,000, 000.00 16,720 14,000, 000.00 12,000. 00 14,037 11,969 12,000, 000.00 28,323 6,540 10,000. 00 -7,37
Slide 15: Committed with our corporate governance – 57% independent board members
CORPORATE PRESENTATION HOW WE GENERATE VALUE Committed with our corporate governance – 57% independent board members Board of Directors Shareholders ROSARIO CÓRDOBA (Chair of the Board) - Independent GrupoSura Grupo Sura 27% 21% CLAUDIA BETANCOURT 35% Colombian Non – Independent Grupo GrupoNutresa N
Slide 16: Discipline translated into positive results with Ebitda CAGR 16%
CORPORATE PRESENTATION FINANCIAL RESULTS Discipline that has translated into positive results with Ebitda CAGR 16% in the last 5 years Consolidated revenues of Grupo Argos (COP billion) Consolidated Ebitda of Grupo Argos (COP billion) CAGR (2014 – 2019) 12,6% CAGR EBITDA (2014 – 2019) 16,6% 5,900 27
Slide 17: Financial flexibility as no maturity until 2022
CORPORATE PRESENTATION GRUPO ARGOS INDIVIDUAL RESULTS Financial flexibility as no maturity until 2022 – Kd drops over 100 bp Indebtedness1 COP billions Profile of maturities (principal) COP billions 7% 0% 0% 22% 22% 15% 9% 0% 23% 0% 10% 37% 37% COP 1,742 mn INDEXED 212 Bonds Bonos 436 390 Bancos Ban
Slide 18: Fitch and S&P maintain Grupo Argos rating
CORPORATE PRESENTATION GRUPO ARGOS INDIVIDUAL RESULTS Fitch and S&P maintain Grupo Argos rating and remain confident with the company´s strategy CALIFICACIÓN EMISOR1 CALIFICACIÓN EMISOR Y PEC2 AAA Stable AA+ Stable June 2020 May 2020 “Grupo Argos's ratings are based on a solid capital structure, as
Slide 19: Leverage ratios evolution in line with capital allocation strategy
CORPORATE PRESENTATION CAPITAL STRUCTURE Leverage ratios evolution in line with efficient capital allocation strategy Net debt Deuda bruta Ebitda Ebitda Net debt Deuda / Ebitdaadj. br/EBITDA adj. 3,000 3.0x 2.6x 2.5x 2,500 2.4x 2.3x 2.5x From 2015 to 2018 Grupo Argos has: 944 2,000 695 1.7x 2.0x 679
Slide 20: We ended 2019 with cash flow equivalent to one day of revenue
CORPORATE PRESENTATION GRUPO ARGOS 2019 CASH FLOW We ended 2019 with cash flow equivalent to one day of the Company’s revenue Cash flow Notes COP billion COP billion 1. Dividends received: COP 588, dividends paid: COP 295 1 Dividendos netos Net dividends 293 2. Sale of 6,495,205 shares in Epsa: COP
Slide 21: We increased the dividends flow with a positive spread
CORPORATE PRESENTATION HOW WE GENERATE VALUE We increased the dividends flow with a positive spread of COP 200 billion HISTORIC DIVIDENDS COP billions 700 Positive dividend spread USD 143 mn (received - paid) 591 600 583 500 115 14 70 + 4,2x 463 27 between 2016 and 2019 25 50 400 161 78 65 314 49 28
Slide 22: Controllable management expenses decreased 5.1%
CORPORATE PRESENTATION HOW WE GENERATE VALUE In the last 5 years, controllable management expenses of Grupo Argos have decreased 5.1% in real terms SG&A COP billions 165 Grupo Argos Controllable Management Cost 143 -5.1% 28 +1% 141 135 133 1 7 16 11 18 -26% 17 22 CAGR (2015 – 2019) 3 3 31 19 30 27 2
Slide 23: Become an asset manager that enables institutional capital investment in infrastructure
CORPORATE PRESENTATION “ Become an asset manager that enables the investment of institutional capital in the infrastruc ture sector in Latin America. Grupo Argos has demonstrated its ability to transform and grow businesses in this region, such as Cementos Argos, C e l s i a a n d O d i n s a . W e
Slide 24: COVID-19
COVID-19
Slide 25: COVID-19
CORPORATE PRESENTATION COVID - 19 25 September 2020
Slide 26: Our collaborators: key to our COVID-19 strategy
CORPORATE PRESENTATION SITUATION MANAGEMENT Our collaborators: a key part of our success in implementing our COVID-19 strategy Transcendence Inspiration Integrity Commitment PURPOSE “At Grupo Empresarial Argos we positively transform people’s lives through our investments and operations in those ter
Slide 27: The five priorities identified have proven to be in the right path
CORPORATE PRESENTATION SITUATION MANAGEMENT The five priorities identified have proven to be in the right path 1. Life, Health and 2. Care for 3. Operational 4. Philanthropy and 5. Institutional Wellbeing Employment Continuity corporate citizenship Support Our number one priority is Preserve employm
Slide 28: From COP 2.3 tn identified savings in March to COP 2.8 tn in June
CORPORATE PRESENTATION BUSINESS CONTINUITY From a COP 2.3 tn identified savings in March to COP 2.8 tn in June CAPEX $ 415 $ 868 1 (COP billion) $ 293 $ 160 OPEX $ 45 $ 324 $ 119 $ 20 $ 508 2 (COP billion) Liquidity Credits 3 (COP billion) $ 443 $ 400 $ 117 $ 150 $ 1,394 Taxes devolutions 4 (COP bil
Slide 29: Annexes: Financial Results
A n ex xe s F i n a n c i a l Re s u l t s 2 Q 2 0
Slide 30: Confirms a positive trend towards business recovery
CORPORATE PRESENTATION BUSINESS CONTINUITY Confirms a positive trend towards business recovery Monthly Revenues COP billion Monthly EBITDA COP billion 7,630 2,037 -22% -12% -9% -9% -22% -16% +1% -15% 1,272 6,962 1,175 1,188 1,196 366 1,709 1,096 984 306 287 245 256 199 +9% +84% Enero Febrero Marzo A
Slide 31: Grupo Argos Consolidated Results Q2'2020
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Proportional variation in revenue and Ebitda confirmed our commitment to reduce costs and expenses RELEVANT FIGURES COP billion 2Q - 2020 2Q - 2019 Var.(%) Jun-2020 Jun-2019 Var.(%) Revenue 3,346 3,915 -15% 6,962 7,630 -9% Cost, expense
Slide 32: Contributions by businesses exceed expectation made at start of pandemic
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Contributions by businesses exceed the expectation made at the beginning of the pandemic Contribution by business to consolidated revenue 2Q2020 COP billion -15% 2Q2019 Cement Energy Real estate Portfolio Coal Concessions Other 2Q2020 C
Slide 33: Decrease in SG&A proves rapid capacity to respond
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Decreased in SG&A proof our rapid capacity for responding to the current situation Consolidated1 COP billion -14% 459 394 -23% +8% -7% 261 103 96 201 77 71 103 96 Opain Opain Odinsa 54 52 Mar-2019 2Q2019 Mar-2020 2Q2020 2Q2019 Mar-2019
Slide 34: Financial expenses remain constant despite devaluation effect on debt
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Financial expenses remain constant despite the effect of devaluation on consolidated debt Consolidated Debt COP billion Net Debt COP billion Net Financial Expenses COP billion 1,306 -545 17,785 18,454 345 - 16,734 330 - 1,742 16,653 1,4
Slide 35: Grupo Argos Individual Results Q2'2020
CORPORATE PRESENTATION GRUPO ARGOS INDIVIDUAL RESULTS Q2’2020 Real Estate Business contribute with COP 40 bn in revenues from future divestments deals RELEVANT FIGURES COP billion 2Q - 2020 2Q - 2019 Var.(%) Jun-2020 Jun-2019 Var.(%) Revenue 28 96 -71% 229 404 -43% 16 6 181% 41 67 -39% 6 bn Costs an
Slide 36: Controllable expenses decrease 13% YoY
CORPORATE PRESENTATION GRUPO ARGOS INDIVIDUAL RESULTS Q2’2020 Controllable expenses decrease 13% YoY, adding to the efforts of the last 4 years 1. Revenue Distribution 2Q2020 COP billions 2. Equity Method Distribution 2Q2020 COP billions 96 65 3 -18 27 6 65 -71% 8 -120% 28 Act. Financiera Financial
Slide 37: COP 117 bn in cash as a response to the current situation
CORPORATE PRESENTATION SEPARATED RESULTS GRUPO ARGOS Q2’2020 COP 117 bn in cash as a response to the current situation Cashflow Notes COP billion -7 1. Dividends paid: COP 155 bn Dividends received: COP 148 bn 1 Dividendos netos Net dividends 2. Developed plots: COP 26 bn, Disinvestments: COP 3.5 bn
Slide 38: Investor relations contacts
CORPORATE PRESENTATION CEO Jorge Mario Velasquez CFO Alejandro Piedrahita IRO Natalia Agudelo Tel: (574) 319-8712 E-mail: nagudelop@grupoargos.com IR Analyst Jaime Andres Palacio Tel: (574) 3198400 ext 22388 E-mail: jpalaciop@grupoargos.com www.grupoargos.com 38 September 2020
Slide 39: CORPORATE PRESENTATION September 2020
CORPORATE PRESENTATION 39 September 2020