Grupo Argos S.a. · BVC:GRUPOARGOS

Grupo Argos — Investor Presentation (September 2014)

44 slides from Grupo Argos's investor presentation, September 2014

  1. Slide 1: Corporate presentation

    Corporate presentation a! wu 4 GRUPO ARGOS

  2. Slide 2: Disclaimer

    Disclaimer This document contains forward-looking statements relating to GRUPO ARGOS and its subsidiaries based upon management projections. These projections reflect GRUPO ARGOS’ opinion on future events that may be subject to a number of risks, uncertainties and assumptions. Various factors may ca

  3. Slide 3: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 3

  4. Slide 4: Strategic Investments and 2Q2014 Results

    Strategic Investments Coal Ports 3% 3% Cement Energy Cement Listed Real Estate 56% 20% 60,7% 52,4% USD 7,8 billion Not Listed Ports Coal Real Estate Energy 50% Assets 100% 18% 100% Revenues EBITDA Dividends 2014 3% 2% 2Q2014 Results 37% 32% USD 2.2 USD 576 USD 98 47% billion 50% million million 63%

  5. Slide 5: Portfolio Investments

    Portfolio Investments Grupo Nutresa 17% 29,4% 9,8% Financial Processed Services food Ba ncolombia 5% Grupo Sura (P) 2% USD 3,9 billion Grupo Sura 76% 2,5% Banking NOTE: Dividends 2014 1. 29.2% Stake held of the ordinary shares with voting rights and 4% stake held of the preferred shares. Grupo 2. Gr

  6. Slide 6: Total Value of Investments and Dividends Flow (Million USD)

    Total Value of Investments and Dividends Flow (Million USD) Food Ports 6% 2% $141 $134 $130 Financial Services Cement $96 27% 38% USD 11.7 billion Coal 2% Real Estate Energy 2011 2012 2013 2014 13% 12% Cement Energy Grupo Sura Grupo Nutresa Bancolombia Grupo Sura Preferencial 6

  7. Slide 7: Grupo Argos benefits from its structure

    Grupo Argos benefits from its structure CAPITAL ASSET PRICING MODEL The market rewards Grupo Argos with a lower BENCHMARK EMERGING MARKETS IN LATAM cost of equity as a diversified firm. ke The actual beta is lower than those estimated Equity Company Industry Beta [USD as a weighted average (w and w/

  8. Slide 8: Market rewards management decisions

    Market rewards management decisions 225 210 195 180 165 150 135 120 105 90 75 60 may.-12 may.-13 may.-14 feb.-12 feb.-13 abr.-12 oct.-12 abr.-13 oct.-13 feb.-14 abr.-14 jul.-12 jul.-13 jul.-14 ene.-12 ago.-12 sep.-12 nov.-12 ene.-13 ago.-13 sep.-13 nov.-13 ene.-14 mar.-12 mar.-13 mar.-14 dic.-11 jun

  9. Slide 9: Grupo Argos: Main Figures

    Grupo Argos: Main Figures Consolidated revenues US$ million Consolidated EBITDA US$ million 4.082 1.600 4.000 3.717 36% 1.400 30% 28% 24% 25% 3.500 18% 19% 18% 3.129 1.200 12% 2.899 1.023 3.000 1.000 899 876 883 2.500 756 2.020 2.125 800 2.000 1.837 600 1.495 1.500 400 340 368 270 1.000 730 200 87 5

  10. Slide 10: 2Q2014: Consolidated Results - Revenues

    2Q2014: Consolidated Results -Revenues + 135 +6 4.483 +6 +1 + 204 +5 + 35 + 426 3.665 Revenues Cement Energy Coal Ports Real Estate Corporative Divestment Dividends Revenues June 2013 June 2014 10

  11. Slide 11: 2Q2014: Consolidated Results - Ebitda

    2Q2014: Consolidated Results - Ebitda +8 +3 + 13 +9 +6 1.201 + 128 -4 + 56 981 EBITDA June Cement Energy Coal Ports Real Estate Corporative Divestment Dividends EBITDA June 2013 2014 11

  12. Slide 12: During 3Q2014 Grupo Argos issued bonds to optimize its financial structure

    During 3Q2014 Grupo Argos issued bonds to optimize its financial structure USD 500 million* Interests Amortization Average Maturity 195,052 9.6 years 127,159 66,125 57,481 54,181 Mandatory Convertible Bonds Total Debt by Maturity Average Cost of Debt = 7.14% 750 11% Net Debt / EBITDA = 1.7 x 500 2 Y

  13. Slide 13: Investment Criteria

    Investment Criteria Investment Management Criteria Cement • Growth Potential Energy • Controlling Stake Real Estate • Economical, environmental and social performance Ports • Corporate Governance Coal • Brand development 70 years in 6 years in the market the market Real Estate Emerging Opportunities

  14. Slide 14: Highest Standards of Corporate Governance

    Highest Standards of Corporate Governance - Important role of independent Directors: - Audit and Finance, Corporate Governance and Compensation Committees all lead by individual Directors GRUPO ARGOS CEMENTOS ARGOS CELSIA BVC: GrupoArgos BVC: CEMARGOS / ADR nivel 1: CMTOY.PK BVC: CELSIA Board of Dir

  15. Slide 15: Administrative Structure in place to secure and obtain common objectives

    Administrative Structure in place to secure and obtain common objectives Steering Committee Special Groups Ethics and Conduct Committee Objective: To analyze and discuss Objective: To create a common specific issues with the set of values and behavior subsidiaries, strategy and M&A, through the whol

  16. Slide 16: Increase Diversified Ownership

    Increase Diversified Ownership Shareholders Shareholders Volume Ordinary Shares Preferred Shares 100.000 90.000 80.000 Grupo Sura 70.000 31,22% Million COP 27,12% 35,54% Colombian 60.000 Grupo Nutresa Pension Funds 50.000 Colombian International 40.000 Pension Funds Funds 30.000 International Retail

  17. Slide 17: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 17

  18. Slide 18: Potential Growth: Real Estate

    Potential Growth: Real Estate 18

  19. Slide 19: Real Estate Business Structure

    Real Estate Business Structure Property Business Land Bank Track Record of 12 years in Barranquilla and more 350 hectares developed. Highest standard in Colombia Developer of the land bank Actual Commitment Actual Appraisal For US$ 250 Million Value US$ 1.5 Billion 19

  20. Slide 20: Land Bank

    Land Bank USD 1.5 Billion of Actual Land Bank in Strategic Locations Barranquilla . Barú . Others . – 1,200 hectares – 1,300 hectares – 2,600 hectares – Area with the highest projected growth – 22 Km of coast line – Located throughout Colombia in Barranquilla and Puerto Colombia – Near Cartagena, ci

  21. Slide 21: Real Estate Expected Returns

    Real Estate Expected Returns Types of assets Why Grupo Argos? • Industrial properties and distribution centers. • Strong reputation and financial strength. • Office and corporate buildings . • Deep knowledge of real estate business through its • Data centers. cement subsidiary and Situm. • Retail, r

  22. Slide 22: Property Completion Schedule

    Property Completion Schedule Total CapEx: US$ 250 Million* S.M Viva Villavicencio TATA building S.M Mayorca Etapa 3 CapEx: US$ 60 million CapEx: US$ 25 million CapEx: US$ 71 million GLA: 25,324 GLA:27,871 GLA:27,239 2014 01 02 03 04 05 06 07 08 09 10 11 12 2015 01 02 03 04 05 06 07 08 09 10 11 12 20

  23. Slide 23: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 23

  24. Slide 24: Potential Growth: Ports

    Potential Growth: Ports Foreign Trade Agreement Foreign Trade Projection 6% IMF Volumes 76 129 ML ML TON TON 2013 2003 x In force 13 29 x Subscribed ML ML TON x In negociation TON 2013 2003 24

  25. Slide 25: Compas – Only Company in Colombia with diversified locations and multipurpose terminals

    Compas – Only Company in Colombia with diversified locations and multipurpose terminals. Cartagena Port Barranquilla Port Tolú Port Buenaventura Port Houston Port • 25 Hectares • 25 Hectares • Port Concession until 2021 • 11 Hectares • 22 Hectares • Port concession until Feb. • Public port since 201

  26. Slide 26: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 26

  27. Slide 27: Sator

    Sator Production* In Thousands Tons 700 650 600 550 500 Area: 10.443 ha 450 Capacity: 1.000.000 tpa 400 Inventory: 974 Mt 2012 2013 2014 • One underground mine (Nechí) and one open pit mine Area: 554 ha (Bijao). Capacity: 132.000 tpa Technical inventory: 11 Mt • Five underground mines divested due t

  28. Slide 28: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 28

  29. Slide 29: 80 years of profitable and continuous growth

    80 years of profitable and continuous growth 2006 Holding Structure prior to 2006 After the merger of 8 cement companies 70% Cementos Argos Merger of 8 cement companies under the name of Cementos Argos 29

  30. Slide 30: Last 10 years: Path of expansion and consolidation

    Last 10 years: Path of expansion and consolidation Energy Cement and Grupo Argos 2008 2012 Acquisition of 24% of Celsia a SPIN-OFF AND CONTRIBUTION INTO I.A. diversified company that started New a process of focalizing in energy. Minority preferred shares GRUPO ARGOS shareholders 2009  Acquisition

  31. Slide 31: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 31

  32. Slide 32: Potential Growth: Cement

    Potential Growth: Cement Housing # people Infrastructure US housing Deficit per house Investment Prices 36% 4 Decrease 3,5 99 BL 3% 2022 GDP June May December 4ML 2020 2012 2006 2013 LATAM Per Capita Consumption Population 660 252 kg/hab 790ML 390 316 278 271 2050 267 248 245 245 229 205 205 191 227

  33. Slide 33: Cementos Argos

    Cementos Argos • Market Cap. Dec. 2013: US$ 7.3 billion • Revenues Dec.2013: US$ 2.7 billion • EBITDA Dec.2013: US$ 524 million • Net Debt Dec.2013: US$ 966 million • Portfolio Investment: US$ 752 million • Exports to 40 countries • ~7800 employees Colombia’s leader in Cement, Ready Mix Concrete and

  34. Slide 34: Cementos Argos

    Cementos Argos 13 Colombia . United States. Cement Plants Cement Cement • Second largest producer of the • ~49% Market share 390 • Installed Capacity: 9.9 mm TPA Southeast Ready mix plants • Installed Capacity : 6.6mm TPA • Plants: 9 • Plants: 3 • Grinding Stations: 1 • Grinding Stations: 3 9 • Port

  35. Slide 35: Cementos Argos – Results

    Cementos Argos – Results US$ million Consolidated EBITDA Consolidated revenues US$ million 3.000 18% 19% 19% 18% 20% 2.656 17% 16% 18% 2.437 600 2.500 524 440 1.955 1.983 450 2.000 1.824 369 1.602 329 1.594 303 304 284 1.454 300 243 1.500 1.000 150 500 - 2006 2007 2008 2009 2010 2011 2012 2013 - EBI

  36. Slide 36: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 36

  37. Slide 37: Potential Growth: Energy

    Potential Growth: Energy Per Capita KWH 37

  38. Slide 38: Celsia

    Celsia • Revenues Dec.2013: US$1,3 billion • EBITDA Dec.2013 : US$463 million • Net Debt Dec.2013: US$437 million • Market Cap. Dec. 2013: US$2.2 billion • 1.000 employees Power generator in Thermal power 4º Colombia 2º generator Energy distributor in 5º Colombia Barranquilla Plant, Gas powered CC 6

  39. Slide 39: Celsia – Geographic Coverage

    Celsia – Geographic Coverage Power generation . Transmission . • 2,312 MW installed capacity • 274 km 220 kV power lines 610 MW • 21 plants in operation • Seven 220 kV substations • 49% hydro, 49% thermo and 50 MW 2% Eolic 485 MW • 9,645 GWh-year (10% of Colombia in 2013) 40 MW 167 MW • 487MW (+28%)

  40. Slide 40: Celsia – Results

    Celsia – Geographic Coverage US$ million Consolidated EBITDA Consolidated revenues US$ million 1.276 39% 600 37% 37% 36% 1.200 1.126 32% 26% 1.001 500 463 1.000 916 414 386 400 343 800 300 600 200 400 82 265 259 100 69 200 - 2008 2009 2010 2011 2012 2013 - EBITDA EBITDA Margin 2008 2009 2010 2011 20

  41. Slide 41: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa 41

  42. Slide 42: Grupo Sura

    Grupo Sura Sura Asset Management Grupo Bancolombia Protección • Market Cap. Dec. 2013: US$ 10.7 billion • Revenues Dec.2012: US$ 7.4 billion • Net Income Dec.2012: US$ 309 million • BVC, ADR level I y LATIBEX Holding company: Investments in the financial, insurance and social security sectors. Stron

  43. Slide 43: Grupo Nutresa

    Grupo Nutresa • Market Cap. Dec. 2013: US$ 6.6 billion • Revenues Dec.2013: US$ 3.1 billion • EBITDA Dec.2013: US$ 432 million • Presence in 14 countries • Product sold in 70 countries • ~31.650 employees Colombia’s leading processed food company and one of the top ten regional players in the Latin

  44. Slide 44: Thanks

    Thanks a! wu 4 GRUPO ARGOS

Grupo Argos — Investor Presentation (September 2014) on 6ix