Grupo Argos S.a. · BVC:GRUPOARGOS

Grupo Argos — Investor Presentation (September 2023)

42 slides from Grupo Argos's investor presentation, September 2023

  1. Slide 1: Corporate Presentation

    PRESENTACIÓN CORPORATIVA Corporate Presentation September 2023 1 September 2023

  2. Slide 2: Important Note

    PRESENTACIÓN CORPORATIVA 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

  3. Slide 3: Overview of Grupo Argos

    PRESENTACIÓN CORPORATIVA Overview of Grupo Argos Grupo Argos – Established footprint in the region with a robust portfolio focused on infrastructure Business highlights Company snapshot – 2Q23 Cement • 12 cement plants and 248 RMC plants in Colombia, the US, CentAm and business line the Caribbean 11

  4. Slide 4: Strategy

    PRESENTACIÓN CORPORATIVA Strategy Cemento Infra Portafolio 4 September 2023

  5. Slide 5: Key milestones

    PRESENTACIÓN CORPORATIVA Strategy Targeted M&A activity, coupled with deep know-how optimizing existing assets… Cement Infra Portfolio A Cement and energy businesses consolidation B Portfolio optimization towards key business lines and strategic assets (1/2) 2006 - 2008 2009 - 2011 2012 2014 - 2015

  6. Slide 6: Key milestones

    PRESENTACIÓN CORPORATIVA Strategy … has proven to be a differentiated factor generating attractive returns … Cement Infra Portfolio B Portfolio optimization towards key business lines and strategic assets (2/2) C Creation of strategic partnerships and focus on capital optimization 2016 2017 - 2018 2

  7. Slide 7: Unrivaled track record with ample asset management capabilities

    PRESENTACIÓN CORPORATIVA Strategy … resulting in unrivaled track record with ample asset management capabilities Cement Infra Portfolio Key strengths highlighting Grupo Argos positioning 1 2 3 4 5 6 Deep sector and Unique sourcing Strong value creation Asset optimization and Brand reputation with Te

  8. Slide 8: Main Figures - Accelerated growth in the infrastructure segment

    PRESENTACIÓN CORPORATIVA Strategy Main Figures - Accelerated growth in the infrastructure segment over the last decade Consolidated Revenue Consolidated EBITDA COP bn COP bn + 12% + 12% + 12% CAGR CAGR 2012 2012 – 2022 – 2Q23 (septLTM L12M) CAGR 2012 – 2022 2Q23 (sept LTM L12M) 23,0 25 7 → USD 5.5 b

  9. Slide 9: Consolidated base of infrastructure assets over the last decade

    PRESENTACIÓN CORPORATIVA Strategy During the last decade Grupo Argos consolidated an important base of infrastructure assets Cement Energy Concessions Real Estate Portfolio Energy ▪ Sura Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Nutresa COL & CCA Generation Commercia

  10. Slide 10: Simplification of structure and listing in the NYSE

    PRESENTACIÓN CORPORATIVA Strategy Simplification of structure in the infrastructure asset management business model and listing in the NYSE 2 Cement Alternative Asset Manager → Infrastructure Portfolio 1 31% stake in Energy ▪ Sura Argos Energy Energy Toll Road Airport Summit Transmission Real Estate

  11. Slide 11: Business plan focused on revealing and generating value for shareholders

    PRESENTACIÓN CORPORATIVA Strategy Business plan focused in revealing and generating value for our shareholders Historic Performance Revealing Value1 Long Term Value Generation2 +65% Arbitrage +13% upside TSR CAGR (2001 – 2023) USD 3.7 bn USD 1.5 bn 16,3 USD 2.3 bn 4,2 +6,5 9,9 2,4 GrupoArgos Grupo A

  12. Slide 12: Cement Business

    PRESENTACIÓN CORPORATIVA Cemento Infra Portafolio Cement Business 12 September 2023

  13. Slide 13: Main Figures of the Cement Business

    PRESENTACIÓN CORPORATIVA Cement Business Main Figures of the Cement Business Cemento Infra Portafolio Geographical Footprint Cement RMC 24.0 16.0 14.7 7.2 million tons of million tons million m3 of million m3 installed dispatched installed dispatched capacity 2022 capacity Financial Results LTM Reve

  14. Slide 14: Combining U.S. operations with Summit Materials

    PRESENTACIÓN CORPORATIVA We have bolstered Cementos Argos by combining the U.S. operations with Summit Materials, elevating their strenght, footprint, and capabilities By leveraging on the regional footprint and robust U.S. Platform… …We have managed to unlock additional value for Cementos Argos thr

  15. Slide 15: Combination as a step towards enhanced possibilities and synergies

    PRESENTACIÓN CORPORATIVA This combination marks a significant step towards a future of enhanced possibilities and strategic synergies STRATEGICALLY ALIGNED WITH OUR …POSITIONING THE COMPANY TO …CRYSTALIZED ON A TRANSFORMATIONAL TRANSACTION… INVESTMENT THESIS… UNLOCK SIGNIFICANT VALUE Delivering on p

  16. Slide 16: CemArgos: 17% growth in revenue and 30% in EBITDA

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 CemArgos: 17% year over year growth in revenue and 30% in EBITDA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 2Q2023 vs 2Q2022 +17% 2Q2023 vs 2Q2022 +30% (YOY) (YOY) 662 3.382 3.332 601 594 Cemento RMC 3.118 3.138 583 6 -5% 6,000

  17. Slide 17: Infrastructure Business

    PRESENTACIÓN CORPORATIVA Cemento Infra Portafolio Infraestructure Business 17 September 2023

  18. Slide 18: Creation of platforms by asset type

    PRESENTACIÓN CORPORATIVA Infrastructure Business Creation of platforms by asset type Cement Infra Portfolio Professional manager with proven experience operating infrastructure platforms in the region Infrastructure Asset Management Energy Energy Transmission Energy Toll Road Airport Real Estate Gen

  19. Slide 19: Celsia: Company revenue grows +31% YOY

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Celsia: Company revenue grows +31% YOY Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 2Q2023 vs 2Q2022 +31% 2Q2023 vs 2Q2022 +7% Generación Comercialización (YOY)1 (YOY)1 2.000 -15% 2.000 1 1.764 1.620 1.767 514 1.800 1.800 1.549

  20. Slide 20: Odinsa: Structural and accounting changes after concluding roadway and airport verticals

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Odinsa: Structural and accounting changes after concluding the roadway and airport verticals Cement Infra Portfolio Before vertical conclusion After vertical conclusion 50% Odinsa Odinsa 50% 23.25% 100% Subsidiaries Associates and Odinsa Equity Fun

  21. Slide 21: Odinsa: ADR stable YOY

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Odinsa: ADR stable YOY Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles 2Q2023 vs 2Q2022 IRR (E) -10% +10% +7% -1% 12% 37,9 37,1 36,8 33,9 24,0 22,5 22% 6,6 7,3 15% AKF P2 MVM CTAO jun-22 jun-23 20% Platform ADT → 102 thou

  22. Slide 22: Odinsa: Quiport reaches pre-pandemic traffic levels

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Odinsa: Quiport reaches pre-pandemic traffic levels Cement Infra Portfolio Passengers - Millions IRR (E) 9,4 9,0 17% 13% 1,4 1,1 OPAIN Quiport jun-22 jun-23 • Incremento en rentabilidad explicado por mayores 10.8 million PAX flujos al equity +6% YO

  23. Slide 23: Consolidation and Operational Performance of Private Equity Funds

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Consolidation and Operational Performance of Private Equtiy Funds Cement Infra Portfolio Energy Concessions Caoba C2 Energía Tesorito Laurel Roadways Airports • Thermal Gen. Platform • Solar platform < 8 MW • Partner: Macquarie Asset • Partner: Mac

  24. Slide 24: Pactia: EBITDA doubles in the last year

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Pactia: EBITDA doubles in the last year Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 2Q2023 vs 2Q2022 +31% 2Q2023 vs 2Q2022 +94% (YOY) (YOY) 1.400 109 110 111 1.200 103 61 59 52 52 1.000 85 812 GLA ('000) 800 30 600 0% 400 20

  25. Slide 25: Portfolio Investments

    PRESENTACIÓN CORPORATIVA Cemento Infra Portafolio Inversiones de Por tafolio 25 September 2023

  26. Slide 26: Negocio de Desarrollo Urbano

    PRESENTACIÓN CORPORATIVA Inversiones de Portafolio Negocio de Desarrollo Urbano Cemento Infra Portafolio Estrategia de Desarrollo Generación de Valor Nuestros Masterplans: establecen vías y zonas públicas, asignan áreas para equipamientos urbanos y zonas de Desde el 2016 el NDU ha generado +COP 450

  27. Slide 27: Investment in Grupo Sura and Grupo Nutresa

    PRESENTACIÓN CORPORATIVA Portfolio Investments Investment in Grupo Sura and Grupo Nutresa Cement Infra Portfolio Companies and Subsidiaries Long-term Benefits 1. Long-term Profitability ▪ Grupo Sura: +14% CAGR (TSR since 2000) ▪ Grupo Nutresa: +18 CAGR (TSR since 2000) 2. Enabling infrastructure gro

  28. Slide 28: Shareholding Structure

    PRESENTACIÓN CORPORATIVA Shareholders Shareholding Structure - The company has over 15,000 shareholders Shareholders 30/06/2023 Cross-Holding Structure 30/06/2023 Shareholding corresponds to political rights Political Rights Economic Rights 26% 27% 31% 36% 10% 36% 656.9 868.5 13% 28%1 million ordina

  29. Slide 29: Corporate Governance

    PRESENTACIÓN CORPORATIVA Board of Directors Corporate Governance Board of Directos Rosario Jorge Ana Cristina Armando Claudia Mauricio Esteban Córdoba Uribe Arango Montenegro Betancourt Ortega Piedrahita Independent Indepenent Independent Independent Patrimonial Independent Patrimonial (President of

  30. Slide 30: Financial Results

    PRESENTACIÓN CORPORATIVA Financial Results Cemento Infra Portafolio 30 September 2023

  31. Slide 31: Revenue grows 15% YOY and EBITDA 19% YOY

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Revenue grows 15% YOY and EBITDA 19% YOY Resumen P&G Resultados Trimestre Resultados Acumulados Año COP mil mn 2Q - 2023 2Q - 2022 Var.(%) jun-23 jun-22 Var.(%) Ingresos 6.392 5.898 8% 12.137 10.512 15% 12.1 tn Costos, gastos y otros ingresos 5.180

  32. Slide 32: Revenue grows 8% (YOY) and EBITDA grows 12% (YOY)

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Revenue grows 8% (YOY) and EBITDA grows 12% (YOY) Proforma consolidated revenue COP bn Proforma consolidated EBITDA COP bn 275 -47 7.000 1.148 6.392 9 16 1.553 156 -41 -175 -182 -143 6.000 332 1.325 476 5.000 4.794 4.000 3.000 2.000 +8% +12% 1.000

  33. Slide 33: Increased expenditure with improved operational dynamics and inflation

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Increased expenditure associated with improved operational dynamics and the effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa Expenditure +25% +18% +9% 69% Odinsa 312 72 605 96 264 88 482 42 2Q2022 2

  34. Slide 34: Sound equity structure supported by AAA rating

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Sound equity structure of Grupo Argos supported by AAA rating Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 14.584 12.141 13.387 1.018 11.781 492 2 1.636 923 1.433 567 1.040 42 192 701 346 5.444 5.658 5.014 5.127 31 215 52

  35. Slide 35: Separated EBITDA grows 136% YOY

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Separated EBITDA grows 136% YOY Resumen P&G Resultados Trimestre Resultados Acumulados Año COP mil mn 2Q - 2023 2Q - 2022 Var.(%) jun-23 jun-22 Var.(%) Ingresos 555 172 223% 984 457 115% Costos y otros egresos 114 15 683% 140 40 252% Gastos GA 32 3

  36. Slide 36: Separated revenue was COP 555 billion during 2Q2023

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Separated revenue was COP 555 billion during 2Q2023 Revenue distribution 2Q2023 COP bn % Variation (YOY) +53% +57% +234% -27% +134% +5% +51% +999000% +499000% -1000% 555 155 2 24 51 275 47 Real Estate Negocio Business Inmobiliario Financial Activid

  37. Slide 37: Available cash upon closing on jun-23

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Available upon closing on jun-23: COP 684 bn . Financial returns surpass COP 35 billion Cash flow Notes COP million COP million 1. Div. received: 307,421. Div. Paid: 233,176 1 Dividendos netos 74.245 2. Stock purchases/ sales: 275,906 from sale of

  38. Slide 38: Hedging and ESG loan with Bancolombia reduce cost of debt

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Hedging and compliance with the ESG loan with Bancolombia reduce Kd by 600 bps to 10.5% Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Net Debt = 0,95 tn (-8% YOY) 2% 0% 25% 7% 26% 0% 28% 0% 12% 4,5 13% 5,5 5,6 5,

  39. Slide 39: AAA ratings from rating agencies

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 AAA ratings from rating agencies AAA AAA 1 1 Observing Evolution Stable July 2023 May 2023 ▪ Evolution under Observation after MOU announcement ▪ Fulfilment of key milestones allowed monetizing assets, ▪ Rating reflects credit quality of the divide

  40. Slide 40: Sustainability milestones

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 Sustainability milestones Private Social Investment as a Opening of the Cauca River Forest Research and Conservation Center (CIRCA, priority to Grupo Argos in Spanish) • CIRCA opened its doors on July 21 to offer and develop alternatives for plant

  41. Slide 41: 2023 Results Guidance

    PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2023 2023 Results Guidance 22.0 - 22.5 5.2 - 5.5 COP trillion COP trillion Revenue 2023e EBITDA 2023e Guidance for 2023 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions) 41 September 2023

  42. Slide 42: PRESENTACIÓN CORPORATIVA September 2023

    PRESENTACIÓN CORPORATIVA 42 September 2023

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