Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (September 2021)
30 slides from Grupo Argos's investor presentation, Sep 1, 2021
Slide 1: Grupo Argos Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation September 2021 1 Sep 2021
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: CORPORATE PRESENTATION Sep 2021
CORPORATE PRESENTATION 3 Sep 2021
Slide 4: Evolution of focus, assets and management 2012 to 2021
CORPORATE PRESENTATION 2012 2021 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 5: The most recent step in Grupo Argos's consolidation as an infrastructure asset manager
CORPORATE PRESENTATION HISTORY The most recent step in Grupo Argos’s consolidation as an infrastructure asset manager Alliance between Grupo GA reorganizes the Colinversiones Argos and Conconcreto to portfolio with a focus on energy create a private real estate 2008 (since the acquisition between eq
Slide 6: The most recent step in Grupo Argos's consolidation as an infrastructure asset manager
CORPORATE PRESENTATION HISTORY The most recent step in Grupo Argos’s consolidation as an infrastructure asset manager Having realized the Corporate reorganization Partnership between Grupo investment thesis, Grupo between Celsia and EPSA Argos/Odinsa and Macquarie to Argos sells its share of (now Ce
Slide 7: Grupo Argos becomes consolidated as an infrastructure asset manager
CORPORATE PRESENTATION STRATEGY Grupo Argos becomes consolidated as an infrastructure asset manager Transportation Proven strategy for platform consolidation Energy Real Estate Ports Infrastructure 01. Business opportunity Acquisition of Land portfolio and real CemArgos port assets Acquisition of Od
Slide 8: Grupo Argos at a glance
CORPORATE PRESENTATION CURRENT FOOTPRINT Grupo Argos at a glance Liquid vehicle to invest in infrastructure in Colombia 18 Strategic focus in Cement, Energy, Road and Airport Concessions Solid and articulated portfolio with ~ USD 14 billion1 in COUNTRIES consolidated assets Balanced in regions, curr
Slide 9: Strategic portfolio focused on infrastructure
CORPORATE PRESENTATION INVESTMENT PORTFOLIO Strategic portfolio focused on infrastructure Revenue1: USD 4.0 bn EBITDA1: USD 1.1 bn Market Cap2: USD 2.3 bn 59% 53% 100% C C C Cement Energy Concessions Real Estate Portfolio Revenue1: USD 2.6 bn Revenue1: USD 1.0 bn Revenue1: USD 0.3 bn Value6 = USD 0.
Slide 10: Portfolio transformation and growth along with the acquisition of the concessions business
CORPORATE PRESENTATION PORTFOLIO TRANSFORMATION Portfolio transformation and growth along with the acquisition of the concessions business Consolidated Revenues Consolidated EBITDA +9.8% +10.9% Revenue CAGR 2012 – LTM (jun-21) Ebitda CAGR 2012 – LTM (jun-21) 16 14.8 5 4 3.9 8% 14 12 4 12% 24% 3 10 3
Slide 11: Recovery in the first semester of 2021 to improve margins and profitability
CORPORATE PRESENTATION FINANCIAL RESULTS Recovery in the first semester of 2021 to improve margins and profitability Consolidated revenues of Grupo Argos (COP bn) Consolidated Ebitda of Grupo Argos (COP bn) CAGR (2014 – 2020) 7.1% CAGR EBITDA (2014 – 2020) 7.1% 16,799 28% 28% 18,000 6,000 27% 26% 30
Slide 12: Business diversification allows greater absorption of impacts on different businesses
CORPORATE PRESENTATION DIVIDENDS RECEIVED Business diversification allows greater absorption of impacts on different businesses Historical Dividends COP bn Positive dividend spread 12% (received - paid) CAGR 2015 - 2020 COP bn 700 Millares 591 588 USD 600 130 mn1 14 27 314 115 293 70 482 462 500 25
Slide 13: Expenses have decreased significantly during the last years
CORPORATE PRESENTATION EXPENSES 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 bn 140 ▪ Maintenance + vigilance of
Slide 14: Normalization of the treasury's minimum cash strategy
CORPORATE PRESENTATION CASH FLOW 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 2020 results to its 2 NDU Revenue
Slide 15: Debt levels stable YOY at COP 1.7 tn, including bridging credit to pay dividends
CORPORATE PRESENTATION SEPARATED DEBT 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% Bridging loan Bancos Bonds 7.0% for divi
Slide 16: Fitch ratifies GA rating and S&P improves outlook from stable to positive
CORPORATE PRESENTATION SEPARATED DEBT 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 for payment in adverse scenarios like
Slide 17: Highlighted social and environmental events during the quarter
CORPORATE PRESENTATION SUSTAINABILITY 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 Group recognized by the 01 Employment G
Slide 18: Attractive potential for valuation according to current arbitrage pricing
CORPORATE PRESENTATION SHARE PRICE 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. Sh.) +38% (Com. Sh.) +77% (Pref
Slide 19: Committed with our corporate governance – 57% independent board members
CORPORATE PRESENTATION SHAREHOLDERS AND BOARD OF DIRECTORS Committed with our corporate governance – 57% independent board members Board of Directors Shareholders June 30, 2021 ROSARIO CÓRDOBA (Chair of the Board) - Independent GrupoSura Grupo Sura 22% Fondos Colombian CLAUDIA BETANCOURT 29% Colombi
Slide 20: Asset manager that enables the investment of institutional capital in infrastructure
CORPORATE PRESENTATION “ 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 h a v e t
Slide 21: Annexes Financial Results Q2
CORPORATE PRESENTATION . A n n exe s F i n a n c i a l Re s u l t s 2 Q 21 21 Sep 2021
Slide 22: Grupo Argos Consolidated Results 2Q2021
CORPORATE PRESENTATION 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.(%) Jun-19 Var.(%) Re
Slide 23: 20% YOY growth with positive contributions from all segments
CORPORATE PRESENTATION 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 3,500 3,346 3,50
Slide 24: Proforma EBITDA for the quarter passes COP 1 trillion
CORPORATE PRESENTATION 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 1,200 -16 79 17 1
Slide 25: Increased expenses are due to operational growth and are less than EBITDA and Profit growth
CORPORATE PRESENTATION 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 Odinsa 201 96 69 92
Slide 26: Financial discipline and cashflow generation result in reduced indebtedness
CORPORATE PRESENTATION 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 4,570 4,201 4,69
Slide 27: Grupo Argos Separate Results 2Q2021
CORPORATE PRESENTATION 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 Var.(%) Jun-1
Slide 28: Business performance increases revenues from the equity method by COP 125 bn
CORPORATE PRESENTATION 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% +673% +799000% 24 +
Slide 29: CEO, CFO, IR contacts
CORPORATE 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 29 Sep 2021
Slide 30: CORPORATE PRESENTATION Sep 2021
CORPORATE PRESENTATION 30 Sep 2021