Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2018 Earnings Presentation
29 slides from Grupo Argos's earnings presentation, 2019
Slide 1: Quarterly Earnings Presentation Fourth Quarter 2018
Quarterly Earnings Presentation Fourth Quarter 2018
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 current knowledge of events, expectations and forecasts, circumstances, and assumptions about future events. Many factors could cause the futur
Slide 3: Strategy: Year of strengthening of strategic businesses
STRATEGY YEAR OF STRENGTHENING OF OUR STRATEGIC BUSINESSES THAT TRANSLATES INTO POSITIVE RESULTS FOR GRUPO ARGOS OF COP 1,2 BILLIONS CAPITAL ALLOCATION CAPITAL PROFITABILITY GROWING RESULTS DIVESTMENT IN REAL ESTATE CAPITAL STRUCTURE BUSINESS OPTIMIZATION ✓ Historical consolidated net Leverage decre
Slide 4: Focus on profitable growth with EBITDA improvement
ESTRATÉGIA FOCUS ON PROFITABLE GROWTH WITH IMPROVEMENT AT THE EBITDA LEVEL AND GROWTH OF THE MARGIN AT THE CONSOLIDATED LEVEL OF 91 bp Positive results as an active holding Consolidated Ebitda for 2018: COP 4 trillion Consolidated Ebitda margin of 28% for 2018 +91 bp YoY Consolidated net income 2018
Slide 5: Record year for urban development business
ESTRATÉGIA RECORD YEAR FOR URBAN DEVELOPMENT BUSINESS IN TERMS OF TRANSACTIONS AND ADVANCES IN BARÚ BARU ✓ 2018 Milestones: 12 Ha sold for a hotel Project + signing of the contract for the ROL DE HOLDING construction ACTIVO of the Calablanca Hotel ✓ Calablanca Will be operated under the Sofitel Bran
Slide 6: Consolidated
CONSOLIDATED NET PROFIT OF THE CONTROLLER MULTIPLIES BY 3 FOR THE QUARTER ON AN INCREASE IN PROFITABILITY IMPORTANT FIGURES NOTES Consolidated Statement of Income 1 Consolidated Quarterly Consolidated Year to Date ✓ Income for the quarter grows 5% Change ✓ Contribution from Cement (+COP 60 billion)
Slide 7: Consolidated: Contribution by business
CONSOLIDATED CEMENTOS ARGOS AND REAL ESTATE BUSINESS WITH RELEVANT CONTRIBUTION IN EBITDA AND REVENUES FOR THE FOURTH QUARTER CONTRIBUTION BY BUSINESS REVENUES (COP billion) 62% 5% 3T2017 4Q2017 Cement Energy Real estate Portfolio Coal Concessions Other 4T2018 4Q2018 CONTRIBUTION BY BUSINESS EBIDTA
Slide 8: Individual
INDIVIDUAL GAINS FROM EQUITY METHOD INCREASED BY +200% IN THE QUARTER, DRIVEN BY HIGHER PROFITS IN THE CONCESSIONS AND CEMENT BUSINESS IMPORTANT FIGURES NOTES Separate Statement of Income COP billion 1 Distribution of revenues in 4Q 2018 773% Quarterly Year to Date 184 76 3 6 4Q - 2018 4Q - 2017 Var
Slide 9: Individual: Reduction in leverage indicators
INDIVIDUAL REDUCTION IN LEVERAGE INDICATORS THAT CLOSE IN 1.7x *** HISTORICALLY LOW INDEBTEDNESS* LEVERAGE INDICATORS COP billion +3% dic-2017 dic-2018 1,567 1,611 4.0x Max: 4.0x - 3.5x Adjusted EBIDTA** 350 Max: 3.5x (COP billion): 3.0x 759 2.5x • dic-2017: 679 Repos 0% PC • dic-2018: 944 2.0x 759
Slide 10: Individual: Cash flow
INDIVIDUAL CASH FLOW AS LEVERAGE TO STRENGTHEN OUR STRATEGIC BUSINESS COP million NOTES 1 DividendosNetnetos dividends 314,271 1 Net Dividends: COP 314 billion 2 UrbanIngresos NDU development income 82,072 2 Urbanized land COP 31 billion, lots in gross COP 42 billion, rents and others 8 billion 3 Ve
Slide 11: Concession Business
Concession Business
Slide 12: Executive Summary
EXECUTIVE SUMMARY OPERATING RESULTS DRIVEN BY GROWTH IN PASSENGER TRAFFIC IN BOTH AIRPORTS HIGHLIGHTS OF THIS QUARTER 4Q18 Consolidated ▪ Increase in airport traffic: ▪ Opain closes 2018 with 32.7 million pax. Growing 6% aprox. 2 times Colombia expected GDP growth for 2018 Revenue ▪ Quiport closes 2
Slide 13: Operating Results
OPERATING RESULTS FOURTH QUARTER OF 2018 WITH POSITIVE DYNAMICS IN AIRPORT TRAFFIC THAT ACHIEVED 38 MILLION AVERAGE DAILY VEHICLE TRAFFIC 4Q2018 -0.7% Thousands of vehicles AKF 77.3 78.3 Vehicle traffic in 4Q18 totaled 3.2 million, down -6% due to road works of Pacífico 3, which 1.3% affected traffi
Slide 14: Financial Results
FINANCIAL RESULTS STABLE REVENUES AND GROWING EBITDA WHEN ADJUSTED BY NON RECURRING PROVISIONS IN AUTOPISTAS DEL CAFÉ AND AUTOPISTAS DEL NORDESTE IN 2017 REVENUE EBIDTA NET PROFIT COP Billion COP Billion COP Billion AKF provision 24 reversión 33 ADN Maintenance 25 reversion 8 16 BTA insurance 104 re
Slide 15: Financial Results: Opain
FINANCIAL RESULTS RESULTS OF OPAIN SUPPORTED IN TRAFFIC GROWTH. EXTENSION OF COMMERCIAL ZONES WITH IMPROVEMENT IN NON-REGULATED REVENUES, WHICH GROW BY 8% PASSENGERS REVENUES (Regulated + Non-Regulated) Million COP Billion -1% Increase in 8.5 →Var YoY: 12% 1,062 1,052 revenues due to: 9 7.9 8.0 8.0
Slide 16: Cement Business
Cement Business
Slide 17: Executive Summary
EXECUTIVE SUMMARY FOCUS ON CASH FLOW OPTIMIZATION TO REDUCE LEVERAGE INDICATOR FROM 4,6x* ON 2017 TO 3,7x* ON 2018 HIGHLIGHTS OF THIS QUARTER 4Q2018 ▪ The BEST program results ▪ Divestment of two RMC plants in USA of USD 34 million ▪ Disinvestment of real estate in Colombia of USD 3.8 million REVENU
Slide 18: Operating Results
OPERATING RESULTS QUARTER WITH IMPROVEMENT IN COLOMBIAN DEMAND THAT CONFIRMS GROWTH TENDENCY BACKED BY CIVIL WORKS CEMENT VOLUMES CEMENT SALES (Tons, thousands) 4th quarter 2018 +7.7% Y/Y 4,026 96 3,904 85 32% 34% -9% Y/Y -6.5 % Y/Y USA 3,904 COL million MT -3% C y CA 34% 4Q2017 4Q2018 CONCRETE VOLU
Slide 19: Financial Results
FINANCIAL RESULTS VOLUME GROWTH IN COLOMBIA THAT BACK UP FOURTH QUARTER RESULTS REVENUE ADJUSTED EBITDA* NET PROFIT COP Billion COP Billion % 413 364 4 52 15 57 13 -2 165% 4% 364 356 0% -5.5%* -79 -80 4Q2017 4Q2018 4T2017 4Q2017 Colombia Caribe + Exp. EEUU 4T2018 4Q2018 Dic-2017 4Q2017 Dic-2018 4Q20
Slide 20: Energy Business
Energy Business |
Slide 21: Executive Summary
EXECUTIVE SUMMARY ADVANCE ON THE STRENGTHENING AND SIMPLIFICATION OF ITS STRUCTURE WITH THE TRANSFER OF ASSETS TO EPSA. INVESTMENT VEHICLE BUILD UP WITH FOCUS ON RENEWABLES AND DISTRIBUTION BUSINESS HIGHLIGHTS OF THIS QUARTER 4Q2018 ▪ EPSA board of directors approved the purchase Merilelectrica asse
Slide 22: Operating Statistics
OPERATING STATISTICS 11% GROWTH IN SALES TO THE NON-REGULATED MARKET IN COLOMBIA, ABOVE THE MARKET’S 6% ON ACTIVE COMMERCIAL EFFORTS GENERATION BREAKDOWN OF GWh GENERATION Celsia 5% CA 11% Zona Franca 21% -6.7% 1,649 GWh 4Q2017 4Q2018 EPSA 63% CHANGE IN ELECTRICITY SALES GWh ✓ Energy sales decreased
Slide 23: Financial Results
FINANCIAL RESULTS CONSOLIDATED EBITDA REACHED COP 316 BILLIO (+2% YoY), THE HIGHEST QUARTERLY EBITDA RECORDED IN THE LAST 4 YEARS REVENUE EBIDTA NET PROFIT OF THE CONTROLLING COMPANY COP billion COP billion % +18% YoY +9% YoY 64 -19% YoY -21% YoY 39 +10% +2% 64% Dic-2017 Dic-2018 4Q2017 4Q2018 4Q201
Slide 24: Real Estate Business
7) ” ® a 7) 3 a ® 2 © £ 7) 1 Lu S | ® "4
Slide 25: Executive Summary
EXECUTIVE SUMMARY PACTIA DIVESTS OF REAL ESTATE ASSETS FOLLOWING MATERIALIZATION OF INVESTMENT THESIS TO COMPLY WITH YOUR INVESTMENT POLICY Urban Development ▪ Two important businesss materialized during the quarter: 12 Ha ▪ An agreement for the restitution of contributions for COP 268 million was c
Slide 26: Financial Results
FINANCIAL RESULTS GLA CLOSES THE YEAR IN 720 THOUSAND M2 WITH ENTRANCE INTO OPERATION OF THE COMMERCIAL CENTER EL ENSUEÑO IN BOGOTA THAT ADDS 40 THOUSAN M2 PARTICIPATION IN PACTIA GLA % m2 110.0% 3.2% 2.3% 90.0% 17.6% 21.2% 24.4% 27.5% 27.5% 17.9% Industria 70.0% 36.3% 34.7% Industry 33.5% 32.1% 32.
Slide 27: Sustainability
ws Hey xe Sustainability
Slide 28: Sustainability: RobecoSAM Yearbook distinctions
Sustainability GOLD, SILVER Y BRONZE FOR GRUPO ARGOS, CEMENTOS ARGOS Y CELSIA IN ROBECOSAM´S SUSTAINABILITY YEARBOOK Sixth consecutive year in which Grupo Argos and Cementos Argos are part of this yearbook and the third time Celsia is included. Distinctions • Grupo Argos: most sustainable company in
Slide 29: Sustainability: Concrete advances in ESG matters
SUSTAINABILITY CONCRETE ADVANCES IN ESG MATTERS ECONOMIC SOCIAL ENVIORNMENTAL TALENT: CORPORATIVE GOBERNANCE: CLIMATE CHANGE: • Decrease CO2 emissions 31% per COP Gender equality: • 43% of women members on the Board million of revenue • 671 women in professional positions • 100% Assistance to the Bo