Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (May 2022)
39 slides from Grupo Argos's investor presentation, May 2022
Slide 1: Corporate Presentation 2022
CORPORATE PRESENTATION Corporate Presentation 2022 May 2022 1 May 2022 Cementos Argos Cartagena Port
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: Grupo Argos - Infrastructure asset manager in The Americas
CORPORATE PRESENTATION Grupo Argos Introduction Grupo Argos - Infrastructure asset manager in The Americas Main Operating Figures - 2021 Geographical Footprint Cement ▪ 17.1 million tons of cement dispatched ▪ 7.8 million m3 of concrete dispatched 18 countries Infrastructure Asset Management ▪ 1,788
Slide 4: Main Figures - Accelerated growth in the infrastructure segment over the last decade
CORPORATE PRESENTATION Grupo Argos Introduction Main Figures - Accelerated growth in the infrastructure segment over the last decade Investment Portfolio1 Consolidated Revenue Consolidated EBITDA COP tn COP tn COP tn + 1.3% + 10.4% + 11.6% CAGR 2012 - 2021 CAGR 2012 - 2021 CAGR 2012 - 2021 USD 4.4 b
Slide 5: Strategy and Business Segments
CORPORATE PRESENTATION Strategy and Business Segments Cement Infra Portfolio 5 May 2022
Slide 6: Evolution of Grupo Argos into an infrastructure asset manager (1/2)
CORPORATE PRESENTATION Strategy Evolution of Grupo Argos into an infrastructure asset manager (1/2) Partnership between Grupo GA reorganizes the Colinversiones Argos and Conconcreto to portfolio with a focus on energy create a private equity real 2008 (since the acquisition between estate fund. Prot
Slide 7: Evolution of Grupo Argos into an infrastructure asset manager (2/2)
CORPORATE PRESENTATION Strategy Evolution of Grupo Argos into an infrastructure asset manager (2/2) Corporate reorganization Partnership between Grupo Having realized its investment between Celsia and EPSA Argos/Odinsa and Macquarie to thesis, Grupo Argos sells its (now Celsia Colombia) to create a
Slide 8: Proven strategy to develop regional infrastructure platforms
CORPORATE PRESENTATION Strategy Proven strategy to develop regional infrastructure platforms 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 Odinsa id
Slide 9: Consolidated base of infrastructure assets over the last decade
CORPORATE PRESENTATION 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 Commerciali
Slide 10: Simplification of structure and listing in the NYSE
CORPORATE PRESENTATION Strategy Simplification of structure in the infrastructure asset management business model and listing in the NYSE 2 Cement Alternative Asset Manager → Infrastructure Portfolio 1 Energy ▪ Sura Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Nutresa C
Slide 11: Business plan focused on revealing and generating value for shareholders
CORPORATE PRESENTATION Strategy Business plan focused in revealing and generating value for our shareholders Historic Performance Revealing Value1 Long Term Value Generation2 Figures in USD bn USDCOP = 3,966 +44% Arbitrage +14% upside TSR CAGR (2002 – 2022) 4.9 +1.5 1.4 3.4 Net Debt + 0.6 1.0 Overhe
Slide 12: Cement Business
CORPORATE PRESENTATION Cement Infra Portfolio Cement Business 12 May 2022
Slide 13: Main Figures of the Cement Business
CORPORATE PRESENTATION Cement Business Main Figures of the Cement Business Cement Infra Portfolio Geographical Footprint Cement RMC 23.1 17.1 14.7 7.8 million tons of million tons million m3 of million m3 installed dispatched in installed dispatched in capacity 2021 capacity 2021 Financial Results 2
Slide 14: 2021 ends with the highest EBITDA margin since 2005
CORPORATE PRESENTATION Cement Business 2021 ends with the highest EBITDA margin since 2005 Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 4Q2021 vs 4Q2020 +9% 4Q2021 vs 4Q2020 21% Cement Cemento Volumen volumes (YOY)1 (YOY)1 2.50 4Q2021 vs 1 542 2.00 4Q2020 2,473 2,489 2,537 516 2,
Slide 15: Infrastructure Business
CORPORATE PRESENTATION Cement Infra Portfolio Infrastructure Business 15 May 2022
Slide 16: Creation of platforms by asset type
CORPORATE PRESENTATION 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 Gener
Slide 17: Energy - Solid operational performance supports financial results growth
CORPORATE PRESENTATION Infrastructure Business Energy – Solid operational performance supports financial results growth Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn 4Q2021 vs 4Q2020 +34% 4Q2021 vs 4Q2020 +20% Generation(ex. Generación (ex.ZF) ZF) Commercialization Comercializaci
Slide 18: Concessions - In December 2021 airport traffic reached 3.3 mm PAX
CORPORATE PRESENTATION Infrastructure Business Concessions - In december 2021 airport traffic reached 3.3 mm PAX Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn 4Q2021 vs 4Q2020 +26% 4Q2021 vs 4Q2020 +188% Carreteras (TPD) Highways (TPD) Aeropuertos (PAX) Airports (PAX) (YOY)1 (YOY
Slide 19: Real Estate - 65% YoY growth in EBITDA
CORPORATE PRESENTATION Infrastructure Business Real Estate – 65% YoY growth in EBITDA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 4Q2021 vs 4Q2020 +46% 4Q2021 vs 4Q2020 +65% dec-21 vs (YOY) (YOY) dec-20 - 1% 1,000 108 867 51 900 850 855 852 838 800 88 80 81 39 74 38 700 36 600 GL
Slide 20: Portfolio Investments
CORPORATE PRESENTATION Cement Infra Portfolio Por tfolio Investments 20 May 2022
Slide 21: Real Estate Business
CORPORATE PRESENTATION Portfolio Investments Real Estate Business Cement Infra Portfolio Development Strategy Value Creation Our Masterplans: Develop roads and public areas, assign areas for urban facilities and areas of environmental Since 2016, the NDU has generated COP 315 billion of net cash flo
Slide 22: Investment in Grupo Sura and Grupo Nutresa
CORPORATE PRESENTATION Portfolio Investments Investment in Grupo Sura and Grupo Nutresa Cement Infra Portfolio Companies and Subsidiaries Long-term Benefits 1. Long-term Profitability ▪ Grupo Sura: 19.3% CAGR (TSR since 2000) ▪ Grupo Nutresa: 18.9% CAGR (TSR since 2000) 2. Enabling infrastructure gr
Slide 23: Shareholding - The company has over 12,000 shareholders
CORPORATE PRESENTATION Shareholders Shareholding - The company has over 12,000 shareholders Shareholders 31/12/2021 Cross-Holding Structure 31/12/2021 Shareholding corresponds to political rights Political Rights Economic Rights 29% 28% 27% 36% 10% 36% 657.6 869.5 13% 28%1 million ordinary mm total
Slide 24: Corporate Governance - Board of Directors
CORPORATE PRESENTATION Board of Directors Corporate Governance Board of Directors Rosario Jorge Ana Cristina Armando Claudia Gonzalo Carlos Ignacio Córdoba Uribe Arango Montenegro Betancourt Pérez Gallego Independent Independent Independent Non Independent Non Independent Non Independent Non Indepen
Slide 25: Financial Results
CORPORATE PRESENTATION Financial Results Cement Infra Portfolio 25 May 2022
Slide 26: Cumulative results for the year show strong operational leverage
CORPORATE PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Cumulative results for the year show strong operational leverage Revenue1 EBITDA1 Net Income1 Net Cont. Income1 Figures in COP trillion +17% +29% +498% +1,273% 16.3 4.4 0.8 1.4 0.7 13.9 0.7 3.4 0.6 0.5 0.4 0.3 0.2 0.2 0.1 -0.1 0.0 2020 2021 2020 2021
Slide 27: Attractive valuation potential according to current arbitrage prices
CORPORATE PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Attractive valuation potential according to current arbitrage prices Grupo Argos Arbitrage Price1 (30/04/2022) COP / Share Historical Arbitrage Gap1 (Relative Prices) 120 Lockdown begins (Mar – 2020) +38% (Ord stock) +120% (Pf stock) 100 100 19,902 A
Slide 28: Proforma EBITDA closes at COP 4.4 trillion
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Proforma EBITDA closes at COP 4.4 trillion, 29% higher than 2020 and 11% than 2019 Summary P&L Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 4Q - 2021 4Q - 2020 Var.(%) Dec-21 Dec-20 Var.(%) Dec-19 Var.(%) Reve
Slide 29: 24% revenue growth and 40% EBITDA growth due to improved operating leverage
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2021 24% revenue growth (YOY) and 40% EBITDA growth (YOY) due to improved operating leverage Consolidated Revenue 4Q2021 (Proforma) COP bn Consolidated EBITDA 4Q2021 (Proforma) COP bn 1,211 1,300 5,000 140 118 10 4,428 4,500 148 9 -3 310 1,10
Slide 30: Commitment to maintaining efficiencies and austerity policy
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2021 Commitment to maintaining efficiencies and austerity policy regarding structural expenses Consolidated Expenditure1 Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +6%1 +5% +3%1 +11%1 OPAIN 88 90 509 252 Odinsa 4
Slide 31: Financial discipline and cash generation enable reduced indebtedness
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2021 Financial discipline and cash generation enable reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16,737 16,349 328 993 15,436 14,891 21 1,594 1,475 -1,381 1,569 1,459 65 241 4,494 4,195 4,129 3
Slide 32: Pro forma EBITDA for 2021 is 4.9 times that of 2020
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 Pro forma EBITDA for 2021 is +4.9 times that of 2020 and +2.0 times that of 2019 Summary P&L Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 4Q - 2021 4Q - 2020 Var.(%) Dec-21 Dec-20 Var.(%) Jun-19 Var.(%) Revenue 73
Slide 33: Greatest increase in revenue contribution came from cement business
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 The greatest increase in revenue contribution came from the cement business (+ COP 53 bn YOY) Revenue distribution 4Q2021 COP bn Controllable Expenses 4Q2021 COP bn % Variation (YOY) 35 40 +999000% +799000% +599000% +24% +101% +1545% +111% -
Slide 34: Ongoing search for efficiency in expenditures at Grupo Argos and Real Estate
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 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 Expenses for the Real Estate Business ▪ Property Taxes
Slide 35: Normalization of minimum cash strategy
CORPORATE PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Normalization of minimum cash strategy Cash flow COP bn Notes 1 Net dividends Dividendos netos 214 1. Dividends received: COP 472 bn, dividends paid: COP 258 billion 2 NDU Revenue Ingresos NDU 161 2. Urbanized lots: COP 153 bn , in divestments: COP 4
Slide 36: Cost of debt increases less than inflation thanks to Treasury strategies
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 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 6% 0% 16% 24% 7% 9% 0% 26% 0% 11% 27% 36% 38% Bancos Bonds 14.0% 12.0% Banks Bonos 6.4
Slide 37: Grupo Argos has the highest credit rating from Fitch and S&P
CORPORATE PRESENTATION SEPARATED DEBT Grupo Argos has the highest credit rating from Fitch and S&P AAA AAA 1 1 Stable Stable June 2021 May 2022 ▪ Robust and diversified portfolio by sectors and geographies ▪ Adequate capacity for payment in adverse scenarios like 2020 ▪ Predictability and stability
Slide 38: CEO, CFO, Investor Relations Manager
CORPORATE PRESENTATION CEO CFO Jorge Mario Velásquez Alejandro Piedrahita Investor Relations Manager Juan Esteban Mejía Tel: (57) 311 302 8427 E-mail: jemejia@grupoargos.com www.grupoargos.com 38 May 2022
Slide 39: Corporate Presentation May 2022
CORPORATE PRESENTATION 39 May 2022