Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (January 2017)
29 slides from Grupo Argos's investor presentation, January 2017
Slide 1: Holding Company with Sustainable Investments in Infrastructure
Holding Company with SUSTAINABLE INVESTMENTS IN INFRASTRUCTURE January 2017
Slide 2: Principles of our Strategy
Principles of our Strategy Investment focus Searching Allowing Basic sectors of the economy Returns above Geography the cost of capital and industry diversification With natural entry barriers Exploit possibilities within the investment focus Capital intensive Efficient capital allocation Limit nega
Slide 3: Grupo Argos as a Strategic Architect
Grupo Argos as a Strategic Architect Strategic / Institutional Transformer Focused on the Group's relationship with the exterior Focused on defining the Group's FUTURE • Sustainability agenda at the corporate level • Defines Corporate Strategy. • Relationships with stakeholders at the corporate leve
Slide 4: Grupo Argos' Portfolio
Grupo Argos’ Portfolio Mkt Cap1 Revenue* EBITDA* USD 5,6 bn USD 4,9 bn USD 1,2 bn STRATEGIC PORTFOLIO In Infrastructure Cement Energy Concessions Real Estate Financial Protein Services Chain Roads and Ports Real Estate Urban airports Fund Development 55,3%** 52,5% 98,55% 50% 40%*** 100% 35,9%**** 9,
Slide 5: History
History 2005 2006 2007 2009 2011 2012 2013 2014 2015 2016 Entry into concession 1934 business through the Expansion in the United States acquisition of a 54.7% through the acquisition of stake in Odinsa Acquisition Martinsburg Plant Lafarge’s assets in West Virginia (US) Founding of Compañía Divestm
Slide 6: Recognition and Solid Commitment to Corporate Governance
Recognition and Solid Commitment to Corporate Governance BOARD OF DIRECTORS SHAREHOLDERS ROSARIO CÓRDOBA (Chairman of the Board) - Independent Grupo Sura - 36% MARIO SCARPETTA Colombian Pension Funds - Grupo Nutresa -12% 61% Independent COMMON PREFFERED International Funds - 3% ANA CRISTINA ARANGO S
Slide 7: Grupo Argos' Advantages as a Holding Company
Performance 250 200 Grupo Argos’ Advantages as a Holding Company 150 Correlation among its businesses, enabling synergies 100 Access to better financing terms 50 Strategic alignment among subsidiaries 0 ene.-13 ene.-14 ene.-15 ene.-16 may.-15 may.-16 jul.-12 jul.-13 mar.-16 jul.-16 jul.-14 jul.-15 m
Slide 8: Strategic Portfolio Diversification
Strategic Portfolio Diversification Portfolio Growth* 2005 2010 2016 Cement - 49% COP Energy - 13% COP 10,6 COP Cement - 76% 16 Land Bank - 19% Concessions - 13% 4,6billion Cement - 100% billion Energy - 24% billion Property - 3% Other - 3% Revenues (COP bn) EBITDA (COP bn) US$4,771 bn US$1,187 bn 1
Slide 9: Leverage ratios healthy and within the limits established by rating agencies
Leverage ratios (separate) healthy and within the limits established by the rating agencies Debt (COP trillions) Leverage ratios 1.650 USD 487 mm • Indicators within 6,8x the limits 6% 1.442 established by risk 33% agencies. 38% Foreignextranjeros Bancos Banks Max: 3.5x National Bancos banks naciona
Slide 10: Cement Business
( Cement arcos BUSINESS rN AR - GRUPO ARGOS
Slide 11: Cement and Concrete leader in the Americas
Cement and Concrete leader in the Americas Key Figures (2016) 3 3 Revenue by Geography Revenue by product EBITDA by Geography Regions USA 14 14 Colombia 30% RMC 44% 30% Colombia 36% USA Cement Countries 50% 56% CCA CCA 34% 9,166 20% 9.850 Employees 2016: COP 8,5 bn / US$2,790bn Cement Volume 2016: 1
Slide 12: Profitability of the strategy supported by increase in demand
Profitability of the strategy supported by increase in demand Strategy #1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas Flexible Operations with Vertical Integration and Extensive Logistics Network Contribution to Grupo Argos Operating in Countries with S
Slide 13: Results
Results CEMENT VOLUME RMC VOLUME Mtpa Mcmpa 16 14 14,3 14,0 14 12,6 11,1 11,5 11,3 12 11,4 12 10,8 10 9,4 9,3 8,6 10 7,8 8 7,0 8 5,9 6 6 4 4 2 2 0 0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 REVENUES EBITDA Margin % COP $ bn COP $ bn 9.000 8.517 1.800 18% 19% 18% 20% 17%
Slide 14: Energy Business
rN AR - GRUPO ARGOS
Slide 15: Balanced Portfolio in the Power and Distribution Businesses
Balanced Portfolio in the Power and Distribution Businesses Key Figures (9M16) Revenue by Geography Revenue by type of generation EBITDA by Geography CCA Wind 16% 3% CCA Hydro 23% 3 41% Colombia Countries Colombia 77% 84% Thermo 56% 1.600 Employees 2016: COP 1,031 bn 2016: COP 3,795 bn Gx: 54,9% Gx:
Slide 16: Balanced portfolio with stable cash flow generation
Balanced portfolio with stable cash flow generation Strategy Balanced portfolio in technologies (Hydro, Thermal, Wind, and Solar) and geographies (Colombia and CCA) Cash flow stability through asset selection. Contribution to Maximizing returns Become a relevant player in large-scale, grid-c
Slide 17: Recent Performance
Recent Performance GENERATION GWh REGULATED AND NON REGULATED MARKET SALES GWh 9.000 8.129 600 7.754 8.000 7.135 7.000 550 6.170 6.000 5.039 500 5.000 4.000 450 3.000 2.000 400 1.000 - 350 2012 2013 2014 2015 2016 300 Colombia CCA 1T2012 3T2012 1T2013 3T2013 1T2014 3T2014 1T2015 3T2015 1T2016 3T2016
Slide 18: Concessions: Roads & Airports
Concessions Roads & airports
Slide 19: Active transformation in the concession business
Active transformation in the concession business Pacífico II Construction Malla Vial del Meta Assets Under 51% 79% Roads AKF ADN + BTA 3 Countries 60% In Operation 68% Assets OPAIN Quiport Odinsa: Airports 35% 47% 3 highway concessions in Grupo Argos: 30% operations 2 Long-term infrastructure conc
Slide 20: Solid Growth Platform in the concession's business
Solid Growth Platform in the concession’s business Strategy Focused in Airports and Roads concession business in Latam Majority stake holding in all of the investment guaranteeing control and an active management strategy Contribution to Diversified portfolio in roads and airports concessions
Slide 21: Successful consolidation in the Airport and Road concession business
Successful consolidation in the Airport and Road concession business 2015 End of Year Expected Situation YE2016 Santa Marta AKF BTA Hatovial In Operation Under Construction ADN – Paraguachón. Control in ADN and BTA in AKF Pacífico II 43% 43% 40% 22% D.R. 62% Acquisition of control in Pacifico 2,
Slide 22: Recent Performance
Recent Performance PASSENGERS M pax TRAFFIC 2015 40,0 35,0 5,0 16 5,4 30,0 5,5 5,5 25,0 5,4 5,4 20,0 34 15,0 27,6 30,0 31,0 22,4 25,0 9 10,0 20,1 5,0 0,0 6 2011 2012 2013 2014 2015 2016 Opain Quiport AKF Pacífico II Sta. Marta - Para. ADN + BTA REVENUES* EBITDA Margin % COP $ bn COP$ 1,486 bn COP $
Slide 23: Real Estate
(ib) Real - Estate SITUM | L.PACTIA rN AR - GRUPO ARGOS
Slide 24: Land Bank with cash generation potential
Land Bank with cash generation potential Situm ~2.000 Ha (Barranquilla and Barú) 416 Ha developed up to 2015 2002 2009 Land use: 56% ~ 2.000 Ha to develop between Barranquilla and Barú. residential Land development in Barranquilla: 833 Ha equivalent to 2,5x Central Park in NYC. 31% Land develo
Slide 25: Property Joint Venture with growth potential
Property Joint Venture with growth potential Evolution of Conconcreto and Grupo Argos Pactia 2 Countries GLA m2 (000’) 14 Colombian 31 720 States 433 504 345 258 152 160 89 2010 2011 2012 2013 2014 2015 2016 … 2019 - 2022 Conconcreto Grupo Argos Pactia ~ 500.000 m2 EBITDA CAGR projected 2016 – 202
Slide 26: Concessions: Ports
mM j RS Concessions compas| Ports rN - GRUPO ARGOS
Slide 27: Integrated logistic with strong partnerships
Integrated logistic with strong partnerships 9 Port Terminals Commercial Partnership Port terminals Cartagena Tolú Buenaventura Barranquilla Houston (Operation) Cartagena Buenaventura Boscoal (Buenaventura) Comship Brokers 5 mn tons Handled in 2015 Invest in the modernization a
Slide 28: Recent Performance
Recent Performance REVENUES* EBITDA* COP mn COP mn 180.000 70.000 38% 40% 159.995 34% 160.000 35% 60.000 140.000 127.663 128.687 29% 60.249 50.000 26% 30% 120.000 103.076 US$44 mn 43.819 25% 100.000 40.000 36.521 US$ 15 mn 20% 80.000 26.800 30.000 60.000 15% 20.000 40.000 10% 20.000 10.000 5% - - 0%
Slide 29: Contact
Contact ALEJANDRO PIEDRAHITA NATALIA AGUDELO CFO Investor Relation Director Grupo Argos Grupo Argos apiedrahita@grupoargos.com Phone: (57) 4 3198712 nagudelop@grupoargos.com 29