Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (November 2021)
29 slides from Grupo Argos's investor presentation, Nov 1, 2021
Slide 1: Grupo Argos Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation November 2021 1 Nov 2021 Hotel Calablanca Barú
Slide 2: Important Note
CORPORATE PRESENTATION 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 c
Slide 3: Corporate Presentation
CORPORATE PRESENTATION 3 Nov 2021
Slide 4: Focus and portfolio transformation 2012 to 2021
CORPORATE PRESENTATION 2012 2021 FOCUS: Investments related with the cement FOCUS: Infrastructure asset manager, focus on capital industry allocation ASSETS: In different sectors and segments of ASSETS: Articulated portfolio focused on cement, the economy energy, concessions and real estate MANAGEME
Slide 5: The most recent step in Grupo Argos's consolidation as an infrastructure asset manager
CORPORATE PRESENTATION HISTORY The most recent step in Grupo Argos’s consolidation as an infrastructure asset manager Alliance between Grupo GA reorganizes the Colinversiones Argos and Conconcreto to portfolio with a focus on energy create a private real estate 2008 (since the acquisition between eq
Slide 6: The most recent step in Grupo Argos's consolidation as an infrastructure asset manager
CORPORATE PRESENTATION HISTORY The most recent step in Grupo Argos’s consolidation as an infrastructure asset manager Having realized the Corporate reorganization Partnership between Grupo investment thesis, Grupo between Celsia and EPSA Argos/Odinsa and Macquarie to Argos sells its share of (now Ce
Slide 7: Grupo Argos becomes consolidated as an infrastructure asset manager
CORPORATE PRESENTATION STRATEGY Grupo Argos becomes consolidated as an infrastructure asset manager Transportation Proven strategy for platform consolidation Energy Real Estate Ports Infrastructure 01. Business opportunity Acquisition of Land portfolio and real CemArgos port assets Acquisition of Od
Slide 8: Grupo Argos at a glance
CORPORATE PRESENTATION CURRENT FOOTPRINT Grupo Argos at a glance Liquid vehicle to invest in infrastructure in Colombia 18 Strategic focus in Cement, Energy, Road and Airport Concessions Solid and articulated portfolio with ~ USD 14 billion1 in COUNTRIES consolidated assets Balanced in regions, curr
Slide 9: Strategic portfolio focused on infrastructure
CORPORATE PRESENTATION INVESTMENT PORTFOLIO Strategic portfolio focused on infrastructure Revenue1: USD 4.2 bn EBITDA1: USD 1.1 bn Market Cap2: USD 2.5 bn 59% 53% 100% C C C Cement Energy Concessions Real Estate Portfolio Revenue1: USD 2.6 bn Revenue1: USD 1.0 bn Revenue1: USD 0.4 bn Value6 = USD 0.
Slide 10: Portfolio transformation and growth along with the acquisition of the concessions business
CORPORATE PRESENTATION PORTFOLIO TRANSFORMATION Portfolio transformation and growth along with the acquisition of the concessions business Consolidated Revenues Consolidated EBITDA +10.1% CAGR +11.5% CAGR 18 5 4.2 16 15.5 4 14 9% 4 15% 12 3 24% 10 3 30% 8 6.7 2 1.6 6 2 30% 62% 45% 4 1 47% 66% 49% 2
Slide 11: Recovery in the first semester of 2021 to improve margins and profitability
CORPORATE PRESENTATION FINANCIAL RESULTS Recovery in the first semester of 2021 to improve margins and profitability Consolidated revenues of Grupo Argos (COP bn) Consolidated Ebitda of Grupo Argos (COP bn) CAGR (2014 – 2020) 7.1% CAGR EBITDA (2014 – 2020) 7.1% 16,799 28% 28% 27% 18,000 6,000 27% 30
Slide 12: Dividends received: business diversification
CORPORATE PRESENTATION DIVIDENDS RECEIVED Business diversification allows greater absorption of impacts on different businesses Historical Dividends COP bn Positive dividend spread 12% (received - paid) CAGR 2015 - 2020 COP bn 700 Millares 591 588 USD 600 130 mn1 14 27 314 115 293 70 482 462 500 25
Slide 13: Ongoing search for efficiency in expenditures at Grupo Argos and the Real Estate Business
CORPORATE PRESENTATION EXPENSES Ongoing search for efficiency in expenditures at Grupo Argos and the Real Estate Business (NDU) Expenses at Grupo Argos COP bn Expenses at the Real Estate Business (NDU) COP bn Detailed Business Expenses at the Real Estate Business 140 ▪ Property Taxes (2020) = COP 24
Slide 14: Normalization of minimum cash strategy
CORPORATE PRESENTATION CASH FLOW Normalization of minimum cash strategy Cash flow COP bn Notes 1 Net dividends Dividendos netos 32 1. Dividends received: COP 289 billion, dividends paid: COP 258 billion I. Grupo Argos paid 100% of the dividend corresponding to its 2020 results to its 2 NDU Revenue I
Slide 15: Cost of debt increases less than inflation thanks to treasury strategies
CORPORATE PRESENTATION SEPARATED DEBT Cost of debt increases less than inflation thanks to treasury strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life 3% 8% 0% 17% 24% 6% 8% 0% 24% 0% 10% 14.0% 35% 7% Bridging credit Bonds Bancos 12.0% for dividend 6.6 6.1 5
Slide 16: Fitch ratifies GA rating and S&P improves outlook to positive
CORPORATE PRESENTATION SEPARATED DEBT Fitch ratifies GA rating and S&P maintains rating and improves outlook from stable to positive AAA AA+ 1 1 Stable Positive June 2021 May 2021 ▪ Robust and diversified portfolio by sectors and geographies ▪ Adequate capacity for payment in adverse scenarios like
Slide 17: Grupo Argos enables a new tool to monitor ESG progress
CORPORATE PRESENTATION SUSTAINABILITY Grupo Argos enables a new tool to monitor ESG progress Tool Features Tool Example Grupo Argos has made available a new tool for more streamlined access to ESG-related materials at Grupo Argos. https://www.grupoargos.com/es-co/sostenibilidad/perfil-asg 17 Nov 202
Slide 18: Attractive valuation potential according to current arbitrage prices
CORPORATE PRESENTATION SHARE PRICE Attractive valuation potential according to current arbitrage prices Grupo Argos Arbitrage Price1 (11/11/2021) COP / Share Historical Arbitrage Gap1 (Relative Prices) +53% (Ord acc.) 120 Lockdown begins (Mar – 2020) +108% (Pf acc.) +33% (Ord acc.) +81% (Pf acc.) 10
Slide 19: Committed with our corporate governance – 57% independent board members
CORPORATE PRESENTATION SHAREHOLDERS AND BOARD OF DIRECTORS Committed with our corporate governance – 57% independent board members Board of Directors Shareholders June 30, 2021 ROSARIO CÓRDOBA (Chair of the Board) - Independent GrupoSura Grupo Sura 22% Fondos Colombian CLAUDIA BETANCOURT 29% Colombi
Slide 20: Asset manager that enables investment of institutional capital in infrastructure
CORPORATE PRESENTATION “ Asset manager that enables the investment of institutional capital in the infrastruc ture sector in Latin America. Grupo Argos has demonstrated its ability to transform and grow businesses in this region, such as Cementos Argos, C e l s i a a n d O d i n s a . W e h a v e t
Slide 21: Annexes: Financial Results
CORPORATE PRESENTATION . A n n exe s F i n a n c i a l Re s u l t s 3 Q 21 21 Nov 2021
Slide 22: Grupo Argos consolidated results 3Q2021
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Operating results translate into a 28% consolidated Ebitda margin for the period P&L Summary Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 3Q - 2021 3Q - 2020 Var.(%) Sep-21 Sep-20 Var.(%) Sep-19 Var.(%) Revenu
Slide 23: 19% revenue growth and 35% EBITDA growth YOY
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 19% revenue growth (YOY) and 35% EBITDA growth (YOY) due to improved operating leverage Consolidated revenue 3Q2021 COP bn Consolidated Ebitda 3Q2021 COP bn 4,500 1,200 77 15 1,159 23 4,115 29 76 155 17 4,000 252 156 3,453 126 1,000 3,50
Slide 24: Commitment to maintaining efficiencies and austerity policy regarding structural expenses
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Commitment to maintaining efficiencies and austerity policy regarding structural expenses Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure -3% +1% -23% +10% 417 406 OPAIN Odinsa 92 216 218
Slide 25: Financial discipline and cash generation enable reduced indebtedness
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Financial discipline and cash generation enable reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 18,262 16,698 16,067 17,059 266 257 1,742 1,626 1,640 18 -1,115 -89 1,645 22 4,551 4,291 70 4,31
Slide 26: Grupo Argos separate results 3Q2021
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 Proforma cumulative EBITDA and net income growth of 26% and 57% respectively vs 2019 P&L Summary Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 3Q - 2021 3Q - 2020 Var.(%) Sep-21 Sep-20 Var.(%) Jun-19 Var.(%) Revenu
Slide 27: Greater revenue contributions from all businesses for a total increase of 607% YOY
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 Greater revenue contributions from all businesses for a total increase of 607% YOY Revenue distribution 3Q2021 COP bn Controllable Expenses 3Q2021 COP bn % Variation (YOY) 30 27 -13% +999000% +225% -100% +71% +37% +182% +422% +607% 24 +79900
Slide 28: Contacts
CORPORATE 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 28 Nov 2021
Slide 29: CORPORATE PRESENTATION Nov 2021
CORPORATE PRESENTATION 29 Nov 2021