Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (2016)
34 slides from Grupo Argos's investor presentation, 2016
Slide 1: Holding Company with Sustainable Investments in Infrastructure
Holding Company with SUSTAINABLE investments in infrastructure
Slide 2: Investment Principles
Basic sectors of the economy STRATEGY Investment With Natural entry barriers Principles Capital intensive Our investments in high-quality real assets generate stable, LONG-TERM CASH FLOWS AND PROVIDE AN INFLATION HEDGE With long business cycles 2
Slide 3: Our Investments
STAKE STRATEGIC Cement 55,3%* In Infrastructure Energy 52,5% Concessions Roads and airports 54,7% Our Investments Ports 50% STAKE PORTFOLIO Real Estate Listed companies Real Estate Fund 50% account for 82% of our holdings, giving us Urban Development 100% greater financial flexibility and high level
Slide 4: History
History 2005 2006 2007 2009 2011 2012 2013 2014 2015 Expansion in the United States Entry into concession business through the acquisition of through the acquisition of a 54.7% 1934 Founding of Lafarge’s assets stake in Odinsa Divestment of coal mines Compañía de Acquisition of Holcim’s plants in Pa
Slide 5: Footprint
Footprint 17 Countries of the Americas 12.670 Employees Sectoral and geographical diversification, which reduces the impact of the different stages of the economic cycle Cement Concessions Energy Cementos Argos S.A. has a presence in Venezuela through its subsidiary Corporación de Cemento Andino C.A
Slide 6: Strengths
Strengths BOARD OF DIRECTORS SHAREHOLDERS NAME ROLE Rosario Córdoba Independent Chairman of the Board 35,6% GRUPO SURA 65% Mario Scarpetta Independent 13,1% PENSION FUNDS Ana Cristina Arango Independent PENSION FUNDS COMMON 12,4% PREFFERED 5% Armando Montenegro Independent STOCK GRUPO NUTRESA STOCK
Slide 7: Performance
Performance 230 Grupo Argos’ Advantages 210 as a Holding Company 190 170 Correlation among its 150 businesses, enabling synergies 130 110 Access to better financing terms 90 70 Strategic alignment among 50 subsidiaries GRUPO ARGOS CEMARGOS CELSIA IGBC ODINSA Optimal resource allocation 7
Slide 8: Portfolio Growth
Portfolio Growth BY ASSET VALUE* 2015 53% Cement 2010 16% 2005 Land bank 76% Cement COP 12% COP 4,6 100% Cement COP 10,6 24% Energy 11,8 billion Energy 11% Concessions ** billion billion 4% Property 4% Other DIVIDEND GROWTH*** 8% CAGR $281,287 $267,098 $249,785 $239,881 $233,988 Cemento $ 177,41 Ene
Slide 9: Debt Profile
Debt Profile COP COP COP 1,66 1,55 BILLONES BILLONES BILLION (USD 513 million)* 600 400 550 200 390 LT Credit 254 132 Ordinary Bond 108 115 0 2016 2017 2019 2020 2024 2029 figures in billion pesos Cost of Individual Debt 2,3x Debt / Ebitda 10,50% 10,00% 10,07% 9,58% 9,50% 9,43% 9,00% January Februar
Slide 10: Results
Results REVENUES USD $ million EBITDA 36% 30% USD $ million Margin % 28% 24% 25% 23% 1.400 21% 5.000 4472 4558 18% 19% 18% 4.082 1.200 12% 1.023 1047 4.000 3.717 971 1.000 876 883 899 3.129 2.899 756 3.000 800 2.020 2.125 600 1.837 2.000 1.495 368 400 340 270 1.000 730 200 87 - - 2005 2006 2007 2008
Slide 11: Business: Cement
Cement BUSINESS rN La GRUPO ARGOS
Slide 12: Strategic Focus
COMMITMENT Provide our customers the best value proposition LOGISTICS STRATEGIC Continually enhance our distribution channels and logistics network FOCUS EFFICIENCY Improve operating efficiencies and reduce production costs EXPANSION Selectively pursue attractive acquisition opportunities EMPHASIS M
Slide 13: Footprint
Footprint • Logistical synergies due to our geographical location, port infrastructure, and maritime expertise • Balance between developed and emerging economies • Countries with potential for per-capita consumption growth • Economies with different economic cycles History of Strategic Acquisitions
Slide 14: Competitive Advantages
Well-Established Competitive Advantages Distribution Network 2 Competitive Advantages: Strategically located assets and broad distribution and logistics network enhances flexibility U.S. plants provide additional flexibility 23 Ports/Terminals • Efficient cement plants with access to distribution Lo
Slide 15: Results
Results REVENUES USD $ million EBITDA USD $ million Margin % 20% 19% 19% 19% 18% 17% 2.833 2.881 600 534 553 3.000 2.656 18% 524 16% 2.437 2.500 440 450 1.955 1.983 369 2.000 329 1.602 1.594 303 304 284 1.500 300 243 1.000 150 500 83 - - 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 20
Slide 16: Business: Energy
Energy Business
Slide 17: Strategic Focus
REACH Focus on end customer. INNOVATION STRATEGIC Adoption of state-of-the-art technologies and implementation of new business models. FOCUS NON-CONVENTIONAL RENEWABLE ENERGIES Become a major player in large-scale, grid-connected non-conventional renewable energies. DISTRIBUTED ENERGY Small-scale, r
Slide 18: Presence
Presence Risk Diversification • Presence in 3 countries: Colombia, Panama, and Costa Rica • Electricity generating technologies: hydropower, thermal, and wind History of Strategic Acquisitions 2007 Acquisition of Termoflores (now Zona Franca Celsia), Colombia Acquisition of Meriléctrica, the Rio Pie
Slide 19: Results
Results REVENUES USD $ million EBITDA USD $ million Margin % 40% 39% 1.600 37% 36% 600 35% 1.294 1.346 1.276 19% 500 26% 463 447 1.200 414 1.001 1.024 386 916 400 343 768 11% 800 300 249 200 400 265 69 82 100 - - 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 DIVIDEN
Slide 20: Concessions: Roads & airports
Concessions Roads & airports
Slide 21: Strategic Focus
SUSTAINABLE GROWTH STRATEGIC Selective pursue of projects. FOCUS REGIONAL EXPANSION Expansion into strategic areas of interest as the countries in the Pacific Alliance. EFFICIENCY Improve operating efficiency. 21
Slide 22: Footprint
Footprint History of successful projects in the region that provided entry to new markets History of International Projects 2000 Autopistas del Nordeste Project, Dominican Republic 2007 Boulevard Turístico del Atlántico Project, Dominican Republic Viadom Project, Dominican Republic 2008 Energy Secto
Slide 23: Operations
Operations ROAD CONCESSIONS 4 existing road concessions in Colombia, 2 in the Dominican Republic, and 1 in Aruba 1 4G project awarded (Pacifico 2) - 98 Km Diverse business 2 private initiative PPP awarded: Malla Vial del Meta (354 Km) and Vias del Nus (157 Km) lines that guarantee AIRPORTS /PORTS st
Slide 24: Results
Results REVENUES USD $ million EBITDA USD $ million Margin % 500 468 460 42% 35% 200 41% 32% 32% 392 166 162 400 372 29% 27% 148 327 150 29% 300 109 105 217 100 200 148 59 121 50 50 42 100 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 DIVIDEND COP $ MARKET CAP U
Slide 25: Potential in Colombia
Potential in Colombia Infrastructure improvement is one of the government’s main objectives More than COP$ 45 trillion pesos* are being invested for that purpose Quality of roads rankings 4G Projects (public initiative) 0 • 30 new concessions 20 31 • Investments totaling more than COP$ 30 trillion 4
Slide 26: Ports
7) =| i) a7) 7) 7) 12) =| i) O COMPAS rN 26 GRUPO ARGOS wa
Slide 27: Strategic Focus
COMMITMENT STRATEGIC Provide our clients with the best value proposal FOCUS EMPHASIS Maintain emphasis in security, our employees and sustainable development. LOGISTICS Continually enhance our facilities. 27
Slide 28: Footprint
Footprint Multi-purpose terminals in the Atlantic and the Pacific oceans allow Compas to serve different multi-purpose industries and markets 50 Accessible Countries 9 Port Terminals 300 US$ Million Invested Terminals with Operating 20% Colombia’s Grain Agreements Import/Export Volume Terminals unde
Slide 29: Investment Portfolio
Portfolio Investment rN i 4 GRUPO ARGOS 29 rN La GRUPO ARGOS
Slide 30: Portfolio Investments
Current GLA 440.000 mts2 REAL ESTATE Real Estate Fund 4-year target GLA 700,000 mts2 Barranquilla 1,200 ha Land Bank Baru 1,300 ha Other 2,600 ha Portfolio Investments PORTFOLIO Financial Services 37% stake* US$ 2.7 billion Bancolombia 1,5% stake** US$ 59 million 9.8% stake * 37% of the ordinary sha
Slide 31: Real-Estate Fund
Real-Estate Fund
Slide 32: Benefits of the Alliance
Benefits of the Alliance FINANCIAL STRENGTH INTERNATIONAL AND CAPACITY PLATFORM RECOGNITION Investment portfolio valued Presence in more than 80 years in the market at US$6.3 billion 17 countries via its subsidiaries PROJECT DEVELOPMENT VERTICAL INTEGRATION OPERATING EXPERIENCE CAPABILITY Presence i
Slide 33: Footprint
Footprint 16 Shopping Malls 115,000 m2 of leasable space 8 Commercial Establishments 81,500 m2 of leasable space 14 Industrial Complexes 180.000m2 of leasable space 5 Hotels 697 guestrooms 9 Office Buildings 41.100m2 of leasable space 8 Self-Storage Complexes 20,500 m2 of leasable space 33
Slide 34: Investor Relations Contacts
ALEJANDRO PIEDRAHÍTA SEBASTIÁN VELÁSQUEZ CFO Investors Relations Grupo Argos Grupo Argos Phone: (57) 4 3198450 Phone: (57) 4 319 87 12 apiedrahita@grupoargos.com svelasquez@grupoargos.com 34