Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2020 Earnings Presentation
37 slides from Grupo Argos's earnings presentation, Feb 1, 2021
Slide 1: Results Presentation Fourth Quarter 2020
QUARTERLY RESULTS PRESENTATION Results Presentation FOURTH QUARTER 2020 February 2021 1 Feb 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: Business continuity: emergency plan implemented satisfactorily
BUSINESS CONTINUITY Emergency plan implemented satisfactorily to ensure greater flexibility throughout the year CAPEX $ 840 $ 147 $ 415 $ 1,402 (162%*) 1 (Uses – bn) OPEX $ 42 $ 336 $ 135 $ 28 $ 541 (106%*) 2 (Uses – bn) Liquidity credits 3 (Sources – bn) $ 443 $ 684 $ 117 $ 150 $ 1,394 (100%*) Tax
Slide 4: Operational Results – Business Segments
QUARTERLY RESULTS PRESENTATION Operational Results – Business Segments 4 Feb 2021
Slide 5: Cementos Argos – Accelerated volume recovery and increased profitability
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2020 Cementos Argos – Accelerated volume recovery and increased profitability Operating Revenue COP bn EBITDA (Pro Forma) COP bn 4Q2019 vs 4Q2020 +16% Cement Volume Volumen Cemento (YOY)1 2.50 January 2020 2,364 2,322 Dec-19 vs 2,180 2,135 2.00 De
Slide 6: Celsia – Stability, resilience and operational continuity
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2020 Celsia – Stability, resilience and operational continuity to guarantee regional energy supply Operating Revenue COP bn EBITDA COP bn 4Q2019 vs 4Q2020 -3% Generation(ex. Generación (ex.ZF) ZF) Commercialization Comercialización (YOY)1 600 Janu
Slide 7: Odinsa – Mobility restrictions impact results but end-of-year recovery
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2020 Odinsa – Mobility restrictions that impact results but with an end-of-year recovery Operating Revenue COP bn EBITDA COP bn 4Q2019 vs 4Q2020 -16% Highways (ADT) Carreteras (TPD) Airports (PAX) Aeropuertos (PAX) (YOY)1 200 January 2020 7.0 180
Slide 8: NDU - Executed business ensuring COP 290 billion in revenue
QUARTERLY RESULTS PRESENTATION REAL ESTATE BUSINESS 4Q2020 NDU - Executed business ensuring COP 290 billion in revenue for the next 5 years Real Estate Business Milestones 136 billion in business deals throughout the year, which, together with deals signed in previous years, ensure 290 billion in re
Slide 9: Pactia - Most important portfolio segments maintain +90% occupation
QUARTERLY RESULTS PRESENTATION REAL ESTATE BUSINESS 4Q2020 Pactia - Most important portfolio segments maintain +90% occupation EBITDA Distribution (Cumulative) COP bn Main Figures COP bn 123 PACTIA FCP 43 -7 -5 4Q - 4Q - -3 COP bn Var.(%) dic-20 dic-19 Var.(%) 2020 2019 Revenue 74 87 -15% 282 309 -9
Slide 10: Financial Results
QUARTERLY RESULTS PRESENTATION Financial Results 10 Feb 2021
Slide 11: EBITDA margin (proforma) maintained at 25% due to emergency plan savings
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2020 EBITDA Margin (proforma) is maintained at 25% due to the savings from the emergency plan implemented P&L Summary COP bn 4Q - 2020 4Q - 2019 Var.(%) Dec-20 Dec-19 Var.(%) Revenue 3,576 3,941 -9% 13,991 16,799 -17% Costs, expenses
Slide 12: Operating conditions affecting concessions continue affecting quarterly revenues
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2020 Operating conditions that mainly affect concessions continue affecting quarterly revenues Consolidated revenue 4Q2020 COP bn Consolidated revenue 4Q2020 (PRO FORMA*) COP bn 4,500 4,500 4,000 3,941 4,000 3,941 -48 3,576 -53 41 3,6
Slide 13: Cross-cutting efficiencies result in stability in pro forma EBITDA
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2020 Cross-cutting efficiencies result in stability in the pro forma ebitda Consolidated Ebitda 4Q2020 COP bn Consolidated Ebitda 4Q2020 (PRO FORMA*) COP bn 1,600 1,600 1,400 1,338 1,400 -105 1,200 1,200 109 886 45 894 1,000 1,000 -25
Slide 14: Unprecedented efforts to confront the situation confirm ability to adapt
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2020 Unprecedented efforts to confront the situation confirm ability to adapt Consolidated Expenses Cementos Argos Expenses Celsia Expenses Odinsa + Opain Expenses -16% -2% -23% -33% 84 OPAIN 523 158 Odinsa 245 239 438 65 63 105 48 94
Slide 15: Financial discipline enables a slight decrease in net indebtedness
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2020 Financial discipline and cashflow generation enable a slight decrease in net indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16,290 326 16,737 121 15,451 15,436 134 1,592 1,594 1,590 1,569 7 4
Slide 16: Results affected by net loss of the concessions business booked as MPP
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2020 Results affected by the net loss of the concessions business booked as MPP Summary P&L COP bn 4Q - 2020 4Q - 2019 Var.(%) Dec-20 Dec-19 Var.(%) Revenue 4 185 -98% 256 846 -70% Costs and other expenditures GA Expenses Operating Profit
Slide 17: 24% savings achieved in Grupo Argos controllable expenses
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2020 24% savings achieved in Grupo Argos controllable expenses 4Q2020 Revenue distribution COP bn 4Q2020 Controllable expenses COP bn Variation % (YOY) +999000% 45 40 -49% n/a -80% -52% -307% +124% -98% +799000% +599000% +399000% 40 +1990
Slide 18: 92% of debt maturity occurs after 2023
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2020 92% of debt maturity occurs after 2023 and guarantee greater short-term flexibility Indebtedness1 COP bn Maturity profile (capital) COP bn 8% 0% 8% 0% 26% 23% 0% 9% 0% 24% 0% 10% 30% Bonos COP Bancos 1,594 mn 30% INDEXACIÓN 274 206 +
Slide 19: Final cashflow reflects resource management, return to minimum cash policy
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2020 Final cashflow reflects resource management, to return to a minimum cash policy Cashflow COP mn Notes COP mn 1 Net dividends Dividendos netos 166 1. Dividends received: COP 482 bn, dividends paid: COP 316 bn 2 Ingresos R. Estate NDU
Slide 20: Sustainability
QUARTERLY RESULTS PRESENTATION SUSTAINABILIT Y 20 Feb 2021
Slide 21: Grupo Argos commits to reducing CO2e emissions by 46% by 2030
QUARTERLY RESULTS PRESENTATION SUSTAINABILITY 4Q2020 Grupo Argos commits to reducing CO2e emissions by 46% for every million in revenue by 2030 C L I M AT E C H A N G E S T R AT E GY D O W J O N E S S U S TA I N A B I L I T Y I N D E X Commitment Recognition At the corporate group we are committed t
Slide 22: Annexes
QUARTERLY RESULTS PRESENTATION Annexes 22 Feb 2021
Slide 23: Cement Business
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 23 Feb 2021
Slide 24: Positive cement consumption dynamic in our regions
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 4Q2020 Positive cement consumption dynamic in our regions 3Q2020 → highest volumes of cement for the year • November and December 2020 moved more volume than the same months in 2019 • The trend towards recovery is confirmed together with a solid startin
Slide 25: November and December first months of pandemic to surpass 2019 cement volumes
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 4Q2020 November and December, the first months of the pandemic to surpass 2019 cement volumes Cement volumes* mm tons Concrete volumes* mm m3 USA COL C y CA USA COL C y CA 3.9 4.0 2.4 0.1 0.1 -0.0 -0.0 0.6 1.9 1.1 1.2 -0.4 0.0 -0.1 -0.0 0.5 1.3 1.3 +2%
Slide 26: Cash position and free cash flow generation reflect a well-executed strategy
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 4Q2020 Cash position and free cash flow generation reflect a well-executed strategy Revenue COP bn Ebitda COP bn Net controller profit COP bn 2,348 28 2,322 Proforma1 -0 385 +16% 448 34 -35 -18 479 15 374 4 -97 -27 7 -1% -22% -79% 4Q - 4Q USA COL CC&y C
Slide 27: Energy Business
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 27 Feb 2021
Slide 28: Year ends with stability and progress on strategic guidelines
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 4Q2020 Year ends with stability and progress made on strategic guidelines 876 GWh sold in 4Q2020 to 1.2 million clients • Stable energy sales Progress with Termotesorito to consolidate the grid with 200MW • An environmental license is obtained to move f
Slide 29: Stability in distribution and commercialization despite lower generation
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 4Q2020 Stability in the distribution and commercialization business despite lower generation Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A NoNon Regulado Regulated Regulado Regulated 1,330 -72 1,185 1,744 6 873 27 876 -74 1
Slide 30: Decrease in results partially explained by non-consolidation of CAOBA assets
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 4Q2020 Decrease in results (YOY) partially explained by the non-consolidation of the CAOBA assets Revenue COP bn Ebitda COP bn Net controller profit COP bn COL C.A Pro Forma1 379 +3% 368 967 COL C.A 116 898 379 153 -13 -56 97 34 336 -61 17 52 56 814 801
Slide 31: Concessions Business
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 31 Feb 2021
Slide 32: Highway traffic resilience is fundamental for portfolio stability
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 4Q2020 Highway traffic resilience is fundamental for portfolio stability Tunel de Oriente refinanced for COP 660 bn to maximize investment IRR Highway traffic recovering, reaching 110 thousand vehicles per day Addenda to the Malla Vial del Meta sig
Slide 33: Vehicle traffic continues recovering to similar levels as 2019
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 4Q2020 Vehicle traffic continues recovering and reaches similar levels to 2019 Daily vehicle average Thousands of vehicles Airport traffic Millions of Passengers (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 114.0 0.1 0.7 110.9 3.1 0.3 10.3 5.8 -0.8
Slide 34: Airport segment continues making a negative contribution to participation method
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 4Q2020 The airport segment continues making a negative contribution to the participation method Revenue COP bn Ebitda COP bn Net controller profit COP bn Proforma1 91 -16% 76 32 204 179 13 131 0 -18 -3 44 -28 -2 29 76 -18 -37 +13% -42% -140% 2019 O
Slide 35: Traffic recovering gradually with 1.4 million passengers in December
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS - OPAIN 4Q2020 Traffic recovering gradually with 1.4 million passengers in December Passengers Millions of Passengers (PAX) 3.0 3.2 3.1 Doméstico Domestic Internacional International 2.9 2.8 1.6 1.4 1.0 0.7 0.3 0.01 0.01 0.02 0.02 0.01 10/2019 11/2
Slide 36: CEO, CFO, IR Manager 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 36 Feb 2021
Slide 37: QUARTERLY RESULTS PRESENTATION Feb 2021
QUARTERLY RESULTS PRESENTATION 37 Feb 2021