Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q1 2018 Earnings Presentation
27 slides from Grupo Argos's earnings presentation, 2018
Slide 1: Quarterly Earnings Report 1Q2018
Quarterly Earnings Report 1Q2018
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 knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events. Many factors could cause the future res
Slide 3: Strategy: Odinsa strengthened its portfolio and became private
STRATEGY FIRST QUARTER WITH STRENGTHENED PROFITABILITY IN ALL BUSINESSES Odinsa: Strengthened its portfolio and became a private company DELISTING PROCESS FINISHED ARBITRAL AWARD IN FAVOR OF ODINSA´S PRESENTS PRIVATE INITIATIVE FOR NEW INTEREST CARTAGENA AIRPORT • According to the concession contrac
Slide 4: Strategy: Celsia simplification and capital structure strengthening
STRATEGY FIRST QUARTER WITH STRENGTHENED PROFITABILITY IN ALL BUSINESSES Celsia: Simplification and strengthening of its capital structure SIMPLIFICATION OF THE STRUCTURE AND STRENGTHENING OF THE ENERGY BUSINESS STRUCTURE SIMPLIFICATION STRENGTHENING ENERGY PLATFORM Follow on ~COP$ 1.5 tn / USD 500
Slide 5: Strategy: Cementos Argos sale of non-strategic assets
STRATEGY FIRST QUARTER WITH STRENGTHENED PROFITABILITY IN ALL BUSINESSES Cementos Argos: Sale of non-strategic assets SALE OF 3 INSIDE THE FENCE POWER PLANTS IN COLOMBIA Sale of 3 Autogeneration assets that supply the plants of Nare and Cairo Efficient allocation of in Antioquia and Sogamoso in Boya
Slide 6: Grupo Argos
GRUPO ARGOS 6
Slide 7: Consolidated: stability in revenues, EBITDA and net profit expansion
CONSOLIDATED RESULTS AT A CONSOLIDATED LEVEL REFLECT STABILITY IN REVENUES AND EXPANSION OF EBITDA AND NET PROFIT OF 9% AND 53% RESPECTIVELY RELEVANT FIGURES NOTES Consolidated Income Statement 1 ✓ Power business Contribution (+ COP 102 bn) due to higher energy sales and increase in COP bn mar-2018
Slide 8: Consolidated: business contribution to revenues and EBITDA
CONSOLIDATED POSITIVE CONTRIBUTION FROM ALL STRATEGIC BUSINESSES IN EBITDA FOR THE THIRD CONSECUTIVE QUARTER THAT CONFIRMS ALIGNMENT TOWARDS PROFITABILITY BUSINESS CONTRIBUTION REVENUES (COP bn) 3,357 + 102 + 19 + 21 3,311 - 170 - 14 -4 -1 62% -1,4% Ingresos Revenues1T2017 1T2017 Cemento Cement Ener
Slide 9: Individual: significant annual growth from sale of EPSA shares
INDIVIDUAL SIGNIFICANT ANNUAL GROWTH IN ALL LINES FROM THE SALE OF EPSA SHARES. HIGHLIGHTING POSITIVE CONTRIBUTION OF ALL STRATEGIC BUSINESS RELEVANT FIGURES NOTES Individual income statement 1 Revenues Distribution 1Q2018 mar-2018 mar-2017* Var.(%) 851 76 COP bn 376% Concessions 3 1 Revenue 851 179
Slide 10: Individual: leverage indicator at minimum of 1.8x
INDIVIDUAL LEVERAGE INDICATOR AT THE INDIVIDUAL LEVEL CLOSESS AT A MINIMUM OF 1.8X PROVIDING FLEXIBILITY TO CONTINUE PORTFOLIO GROWTH DEBT LEVERAGE RATIOS COP bn +17% 7.0x 1,847 mar-2017 mar-2018 Adjusted Ebitda** 6.0x 1,577 350 (COP bn): 5.0x • mar-2017: 504 30 Repo Repos Max: 4.0x • mar-2018: 1,04
Slide 11: Individual: cash flow
INDIVIDUAL CASH FLOW MIRRORS SIMPLIFICATION OF THE ENERGY PORTFOLIO AND STRATEGIC INCREASE IN PARTICIPATION OF CEMENTOS ARGOS COP mm NOTAS Dividendos netos -4,749 1 1 Dividends Received COP 61,5 bn, dividends paid COP 66,3 bn Ingresos NDU +12,352 2 2 Divestment of lots COP 12,3 bn Venta acciones +65
Slide 12: Concessions Business
Concessions Business 12
Slide 13: Executive Summary
EXECUTIVE SUMMARY CONSTRUCTION WORKS PROGRESS IN SCHEDULE WITH PACÍFICO 2 STANDING OUT FROM THE 4G PROGRAM WITH AN ADVANCE OF 38% HIGHLIGHTS OF THE QUARTER 1T18 consolidated ▪ Arbitration award issued in favor of Autopistas de Café. Operation Revenues will continue until January 2027 COP 184 bn ▪ Ad
Slide 14: Operational Results
OPERATIONAL RESULTS 2018 BEGINS WITH A 4% GROWTH IN AIRPORT CONCESSIONS AND STABILITY IN ROAD CONCESSION TRAFFIC AVERAGE DAILY TRAFFIC 4T2017 Thousand vehicles AKF 75.4 -0.4% 75.1 Total traffic of vehicles in 1Q18 of 3 million, decreasing -5.5% due to the closure of the Irra 3.9 4.7 Boulevard Turíst
Slide 15: Financial Results
FINANCIAL RESULTS FIRST QUARTER RESULTS WITH STABILITY AT CONSOLIDATED REVENUES REVENUES EBITDA NET INCOME COP bn COP bn COP bn 183 +7 184 - 15 +7 +2 180 150% 54 160 + 18 - 12 135 +2 - 18 130% 140 125 110% 120 90% 100 74% 70% 80 68% 50% 20 60 30% 40 +1% -8% -63% 20 10% - -10% mar-2017 mar-2018 Marge
Slide 16: Financial Results: Opaín
FINANCIAL RESULTS OPAÍN CLOSES THE FIRST QUARTER WITH GROWTH IN REVENUES AND EBITDA, MAINTAINING STABILITY IN THE EBITDA MARGIN AT 32%. INTERNATIONAL PASSENGER GROWTH PASSANGERS REVENUES MILLION PAX COP bn 7.78 8.00 7.94 →Var YoY: 4.3% 224 7.61 7.60 Increase in revenues due to: 2.49 2.62 2.72 2.58 2
Slide 17: Cement Business
Cement Business 17
Slide 18: Executive Summary
EXECUTIVE SUMMARY ARGOS SEES MATERIALIZED THE EFFICIENCY PROGRAM WITH GROWTH IN EBITDA HIGHLIGHTS OF THE QUARTER 1Q2018 ▪ Sale of three inside the fence power generation assets in Colombia and 13 concrete block manufacturing plants in the USA as part of the efficient capital allocation strategy, pro
Slide 19: Operational Results
OPERATIONAL RESULTS CEMENT VOLUME IN CENTRAL AMERICA GROWS 11% YoY, COMPENSATING THE FALL IN THE COLOMBIAN AND AMERICAN MARKET CEMENT VOLUME CEMENT SALES (TMT) 1Q2018 +11% YoY 3,842 + 126 3,686 -191 - 91 Colombia Colombia -14% YoY -7% YoY 34% 32% 3,686 Caribe y CAExports CCA and (incl. TMT Exportaci
Slide 20: Financial Results
FINANCIAL RESULTS STRONG GROWTH IN EBITDA MARGIN, ELIMINATING NON RECURRING EFFECTS GROWS 2% YoY. CONSOLIDATED EBITDA MARGIN ADVANCES TO 19% REVENUE EBITDA NET INCOME COP bn COP bn COP bn +0% 2,077 +1 +111% +1% 1,907 + 91 55 +2 371 - 79 400 - 92 -0 24.0% -13% -1 -4 350 -9% 283 22.0% 300 -1% 20.0% +3
Slide 21: Energy Business
Energy Business 21
Slide 22: Executive Summary
EXECUTIVE SUMMARY END OF THE SIMPLIFICATION PROCESS AND CAPITAL STRUCTURE STRENGTHENING IN THE POWER BUSINESS A GREAT STEP TOWARDS PROFITABLE GROWTH HIGHLIGHTS OF THE QUARTER 1Q2018 ▪ ▪ Consolidated revenue of COP 847 bn, growing 14% YoY Consolidated SG&A of COP 56 bn in the quarter, 23% lower YoY ▪
Slide 23: Operational Results
OPERATIONAL RESULTS DURING 1Q18 SALES AND GENERATION OF ENERGY GROW DOUBLE DIGIT GENERATION GENERATION MIX GWh GWh Celsia 3% 105% YoY 33% YoY 1% YoY + 202 + 79 1,753 1,487 +0 - 15 Zona Franca 22% -1% YoY 1,753 GWh EPSA 56% 18% CA 18% Generación Energy 1T17 Generation Celsia Celsia Zona Zona Franca F
Slide 24: Financial Results
FINANCIAL RESULTS AND EBITDA MARGIN EXPANDS TO 34% ON A REDUCTION IN COSTS AND EXPENSES REVENUES EBITDA NET INCOME COP bn COP bn COP bn +3% YoY +18% YoY 847 + 99 +6 350 100% 66% YoY 742 51 +9% YoY + 32 290 90% 300 + 17 80% 250 241 70% 60% 200 50% 150 40% +14% 30% +20% 34% 100 33% 20% 50 10% 1 - 0% m
Slide 25: Real Estate Business
Real Estate Business 25
Slide 26: Executive Summary
EXECUTIVE SUMMARY NEGOTIATION OF LAND ADVANCES AND GROWTH IN THE REAL ESTATE FUND STRENGTHENS WITH A GLA OF 719,000 m2 Urban Development ▪ Progress in the negotiation of land. ▪ Pactia´s unit value has yielded 6.76% since its start in January 20, 2017. Unit ▪ For the quarter, 90,116 m2 were sold and
Slide 27: Financial Results
FINANCIAL RESULTS EFFECTIVE GROSS INCOME GROWS BY 31% IN LINE WITH GROWTH IN GLA STAKE IN PACTIA GLA % m2 9.6% 9.6% 3.2% 1.9% 17.60% 17.6% 21.2% 40.0% 40.0% 40.1% 44.1% 39.8% 39.8% 36.3% 36.3% 16.1% Industry Industria 34.7% Proteccion Commerce Comercio Grupo Argos 719,372 m 2 46.5% Oficinas Offices