Cementos Argos Sa · BVC:CEMARGOS
Cementos Argos Sa — Q3 2023 Earnings Presentation
25 slides from Cementos Argos Sa's earnings presentation, Nov 8, 2023
Slide 1: 3Q23 Results
Click to edit Master title style 3Q23 Results November 8th , 2023
Slide 2: Disclaimer
Disclaimer Click to edit Master title style This document contains forward-looking statements and information related to Cementos Argos S.A. and its subsidiaries (together referred to as “Argos”) that are based on the knowledge of current facts, expectations and projections, circumstances and assump
Slide 3: Consolidated results
01 Consolidated results
Slide 4: 3Q23 – Strong financial and operational results with emphasis on profitability
3Q23 – Strong financial and operational results with a special emphasis on profitability 24 % Best quarterly result Strong Cost EBITDA Margin in Cementos Argos’ pricing efficiency history dynamics initiatives +506 basis points COP 3.1 Tn COP 742 Bn Volumes - Adjusted 2022.Q3 QUARTER 2023.Q3 Var 2022
Slide 5: SPRINT: share buy-back program
SPRINT 3 ~ COP 250 billion share-buy-back program Transactional mechanism progress Independent mechanism strategy TOTAL Common 4.9 bn COP COP 4.1 bn To execute 100% of the first phase by 1Q24, we will initiate share buybacks In buybacks through the independent mechanism, by launching a series of per
Slide 6: SPRINT: List our US business in the New York Stock Exchange
SPRINT 4 List our US business in the New York Stock Exchange This transaction unlocks c. US$3.2bn of value through the strategic combination of our U.S. operations with Summit Materials STOCK CONSIDERATION BASE CASH CONSIDERATION1 US$36.0 54.7mm c. US$700mm c. US$500mm Closing price as of September
Slide 7: SPRINT: Closing Process
SPRINT 4 List our US business in the New York Stock Exchange Closing Process Announcement of the HSR Act waiting period was Summit’s General agreement met → no further approvals Shareholders’ required from an antitrust meeting perspective Customary closing conditions Closing 8-sep-23 23-oct-23 1Q24
Slide 8: SPRINT: Pro forma financials post combination
SPRINT 4 List our US business in the New York Stock Exchange figures in US$ mm2 2023E PF Post Assumptions combination Revenue 2,800 1,200 1 Deconsolidating 58% corresponding to the USA High end of the EBITDA guidance for 2023 and deconsolidating 53% EBITDA 600 300 2 corresponding to the USA Financia
Slide 9: SPRINT: Strategic synergies of the transaction
SPRINT 4 List our US business in the New York Stock Exchange Potential to streamline our export operations in a platform with access to a larger market, through our Cement Supply Agreement leveraging on the Cartagena Plant. Logistics service agreement will create opportunities to lever on our unique
Slide 10: US Region
02 US Region
Slide 11: 3Q23 – United States
3Q23 – United States +13.2 % +14.3 % Volumes - Adjusted 2022.Q3 QUARTER 2023.Q3 Var 2022.Q3 YTD 2023.Q3 Var FOB PRICE CEMENT YoY FOB PRICE RMX YoY Cement 000 MT 1,591 1,527 -4.0% 4,651 4,609 -0.9% RMC 000 M3 1,119 991 -11.5% 3,440 3,131 -9.0% QUARTER YTD -4.0 % -11.5 % Key Figures - Adjusted 2022.Q3
Slide 12: Colombian Region
03 Colombian Region
Slide 13: 3Q23 – Colombia
3Q23 – Colombia QUARTER YTD +15.0 % +21.6 % Volumes 2022.Q3 2023.Q3 Var 2022.Q3 2023.Q3 Var Cement 000 MT 1,537 1,540 0.2% 4,517 4,354 -3.6% Local Market 000 TM 1,218 1,160 -4.8% 3,623 3,321 -8.3% FOB PRICE CEMENT YoY FOB PRICE RMX YoY Exports 000 TM 319 380 19.2% 894 1,032 15.5% RMC 000 M3 712 635
Slide 14: Caribbean and Central America Region
04 Caribbean and Central America Region
Slide 15: 3Q23 - Caribbean and Central America
3Q23 - Caribbean and Central America +2.5 % +2.6 % QUARTER YTD Volumes 2022.Q3 2023.Q3 Var 2022.Q3 2023.Q3 Var Cement 000 TM 1,045 916 -12.3% 3,174 2,965 -6.6% FOB PRICE CEMENT YoY FOB PRICE RMX YoY Central America 000 TM 383 397 3.7% 1,189 1,258 5.8% Caribbean 000 TM 361 351 -2.8% 1,197 1,116 -6.8%
Slide 16: Balance Sheet
05 Balance Sheet
Slide 17: Debt Profile
Debt Profile ▪ For the full year we expect the various Net Debt / (EBITDA + Dividends Received) EBITDA / Financial expenses initiatives aimed at controlling interest 6.0x 5.9x 5.9x expenses to provide savings of ~200 5.0x billion pesos. 4.4x 4.6x 4.5x 3.7x 3.8x 3.8x 4.1x 3.9x 3.2x ▪ Net debt to EBIT
Slide 18: Outlook
06 Outlook
Slide 19: Outlook Argos: Guidance 2023e
Outlook Argos Guidance 2023e COP USD 2.45 - 2.55 Tn <3.0x 200 - 220mm 10% - 11% From 2.3 - 2.4 EBITDA LEVERAGE CAPEX ROCE Current Mid point of our Guidance represents 2022 leverage ratio closed below 3.0x Maintenance ~55% Complying with our 2022 Guidance, we a ~20% growth vs 2022 EBITDA and we inten
Slide 20: SPRINT: Focus on strong financial and operational results
SPRINT 1 Focus on strong financial and operational results with a special emphasis in profitability 2 Increase dividend payments to shareholders for a total of COP 445 billion in 2023, +15% vs 2022 3 ~ COP 250 billion share-buy-back program 4 List our US business in the New York Stock Exchange 5 Imp
Slide 21: Appendix
08 Appendix
Slide 22: IFRS results per regional / other businesses
IFRS results per regional / other businesses Revenue EBITDA COP Bn 2022.Q3 2023.Q3 Var 2022.Q3 Mgn (%) 2023.Q3 Mgn (%) Var Marg Colombia 705 769 9.1% ActualTotalCOPColombiaEBITDA 157 with IFRS16 209 22.3% 27.1% 481 USA 1,811 1,770 -2.2% ActualTotalCOPUnited 323 StatesEBITDA 17.8%with IFRS16 427 24.1
Slide 23: Reconciliation of adjusted figures
Reconciliation of adjusted figures QUARTER YTD QUARTER YTD Consolidated USA 2022.Q3 2023.Q3 2022.Q3 2023.Q3 2022.Q3 2023.Q3 2022.Q3 2023.Q3 RMC Volume m3 1,907 1,702 5,772 5,214 Revenue - IFRS USD M 414 437 1,190 1,296 Divested Operations RMC Volume Divested Operations P&P m3 -109 Divested Operation
Slide 24: Consolidated Cash flow
Consolidated Cash flow 3 Net Cash Flow generated during the Q3 was COP 216 bn. Usually during the second semester of a year our financial 4 results and cash generation are stronger, while during the first six months, our net cashflow is negative or neutral. 2 5 7 Reconciliations vs Accounting method
Slide 25: Contact Information
Contact Information IR Team Daniel Zapata dzapatat@argos.com.co Susana Gaviria susana.gaviria@argos.com.co Investor webpage ir.argos.co This recognition, called Reconocimiento Emisores – IR is given by the Colombian Stock Exchange, Bolsa de Valores de Colombia S.A. It is not a recognition that certi