Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (December 2020)
38 slides from Grupo Argos's investor presentation, December 2020
Slide 1: Grupo Argos Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation December 2020 1 December 2020
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 Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation 3 December 2020
Slide 4: Evolution from 2012 to 2019: infrastructure asset manager
CORPORATE PRESENTATION 2012 2019 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: Grupo Argos 2012 vs 2019 key figures
CORPORATE PRESENTATION 2012 2019 Assets: COP 27 trillion Assets: COP 54 trillion *Data last twelve months (LTM) as of Sep 2020 Revenues: COP 6.7 trillion Revenue: COP 14.4 trillion Ebitda: COP 1.6 trillion Ebitda: COP 3.9 trillion Net profit: COP 344 billion Net profit: COP 0.5 trillion Employees: 9
Slide 6: Grupo Argos at a glance
CORPORATE PRESENTATION WHO WE ARE Grupo Argos at a glance Liquid vehicle1 to invest in infrastructure in Colombia Strategic focus in Cement, Energy, Road and Airport Concessions 3 REGIONS Solid and articulated portfolio with ~ USD 14 billion2 in consolidated assets Balanced in regions, currency, and
Slide 7: Strategic portfolio focused on infrastructure
CORPORATE PRESENTATION PORTFOLIO Strategic portfolio focused on infrastructure USD 2.5 bn USD 3.8 bn USD 1.0 bn MARKET CAP *1 REVENUES *2 EBITDA *2 CEMENT ENERGY CONCESSIONS In Infrastructure STRATEGIC 58.1% *3 52.9% *8 99.9% Revenues: USD 2.4 bn Revenues: USD 0.9 bn Revenues: USD 0.3 bn 7 *7 *7 EBI
Slide 8: Diversified contribution to revenues and Ebitda
CORPORATE PRESENTATION WHO WE ARE? In the last 5 years we have been able to diversify the contribution in terms of Ebitda COP 54 trillion Consolidated Assets (Sep 2020) COP 463 billion Consolidated Net Profit (LTM Sep 2020) COP 108 billion Net Profit of the parent company (LTM Sep 2020) Consolidated
Slide 9: Key messages that support our value generation strategy
CORPORATE PRESENTATION HOW WE GENERATE VALUE Key messages that support our value generation strategy 1 Track record that demonstrates the ability of Grupo Argos to acquire, transform and generate value successfully from the companies it controls Odinsa: Simplification, capital structure and 7 2 pipe
Slide 10: Odinsa: Capital structure optimization to leverage growth
CORPORATE PRESENTATION STRATEGY Odinsa: Capital structure optimization to leverage growth Strategy Consolidation and growth of the business in toll roads and airport concessions to become a regional leader Plan and execute projects for the development of the regions in which we operate During 2019 w
Slide 11: Celsia: Energy platform of Grupo Argos
CORPORATE PRESENTATION STRATEGY Celsia: Energy platform of Grupo Argos Strategy Consolidate the portfolio in strategic assets Become one of the most powerful platforms in the energy segment in the region, leaders in innovation applied to customer service, and in the development of renewable energies
Slide 12: Cementos Argos: Efficiencies achieved reflected in results
CORPORATE PRESENTATION STRATEGY Cementos Argos: Efficiencies achieved reflected in companies results Strategy Decrease leverage ratio below 3.5 times net debt/ Ebitda Responsible and efficient cash flow management Continue innovating in products to maintain leadership in the construction materials s
Slide 13: We added 2.4 times what we took from society
CORPORATE PRESENTATION HOW WE GENERATE VALUE We added 2.4 times what we took from society equivalent to USD 220.3 million Value added statement of Grupo Argos 2019 (USD million) ECONOMIC SOCIAL ENVIROMENTAL 0,048 220,3 87,5 0,5 7,1 -0,008 -0,007 -0,033 19,4 13,4 92,4 Retained Benefits Salaries and B
Slide 14: Share price affected by market liquidity, not reflecting fundamental value
CORPORATE PRESENTATION SOTP Share price affected by market liquidity, not reflecting companies' fundamental value SOTP Analyst average target price (price/share) SOTP market prices (price/share) 18,000. 00 COP / Acc. 18,000. 00 COP / Acc. 16,376 16,000. 00 16,000. 00 13,712 13,633 5,191 14,000. 00 1
Slide 15: Committed with our corporate governance – 57% independent board members
CORPORATE PRESENTATION HOW WE GENERATE VALUE Committed with our corporate governance – 57% independent board members Board of Directors Shareholders ROSARIO CÓRDOBA (Chair of the Board) - Independent GrupoSura Grupo Sura 20% Colombian Fondos Colombia CLAUDIA BETANCOURT 27% Non – Independent 36% Grup
Slide 16: Maturity profile and favorable cost of debt ensure financial flexibility
CORPORATE PRESENTATION SEPARATE RESULTS GRUPO ARGOS Q3’2020 The maturity profile and favorable cost of debt ensure valuable financial flexibility Indebtedness1 COP billion Maturity profile (capital) COP billions 7% 0% 0% 17% 27% 15% 9% 0% 22% 0% 10% 37% $136 in bonds exchanged in October improves ma
Slide 17: Leverage ratios evolution in line with efficient capital allocation strategy
CORPORATE PRESENTATION CAPITAL STRUCTURE Leverage ratios evolution in line with efficient capital allocation strategy Deuda bruta Net debt Ebitda Ebitda Net debt Deuda / Ebitdaadj. br/EBITDA adj. 3,000 3.0x 2.6x 2.5x 2,500 2.4x 2.3x 2.5x From 2015 to 2018 Grupo Argos has: 944 2,000 695 1.7x 2.0x 679
Slide 18: Fitch and S&P maintain Grupo Argos rating
CORPORATE PRESENTATION GRUPO ARGOS INDIVIDUAL RESULTS Fitch and S&P maintain Grupo Argos rating and remain confident with the company´s strategy CALIFICACIÓN EMISOR1 CALIFICACIÓN EMISOR Y PEC2 AAA Stable AA+ Stable June 2020 May 2020 “Grupo Argos's ratings are based on a solid capital structure, as
Slide 19: We ended 2019 with cash flow equivalent to one day of revenue
CORPORATE PRESENTATION GRUPO ARGOS 2019 CASH FLOW We ended 2019 with cash flow equivalent to one day of the Company’s revenue Cash flow Notes COP billion COP billion 1. Dividends received: COP 588, dividends paid: COP 295 1 Dividendos netos Net dividends 293 2. Sale of 6,495,205 shares in Epsa: COP
Slide 20: Discipline translated into positive results with Ebitda CAGR 16%
CORPORATE PRESENTATION FINANCIAL RESULTS Discipline that has translated into positive results with Ebitda CAGR 16% in the last 5 years Consolidated revenues of Grupo Argos (COP billion) Consolidated Ebitda of Grupo Argos (COP billion) CAGR (2014 – 2019) 12,6% CAGR EBITDA (2014 – 2019) 16,6% 5,900 27
Slide 21: We increased the dividends flow with a positive spread
CORPORATE PRESENTATION HOW WE GENERATE VALUE We increased the dividends flow with a positive spread of COP 200 billion HISTORIC DIVIDENDS COP billions 700 Positive dividend spread USD 159 mn (received - paid) 591 600 583 500 115 14 70 + 4.2x 463 27 between 2016 and 2019 25 50 400 161 78 65 314 49 28
Slide 22: Controllable management expenses decreased 5.1% in real terms
CORPORATE PRESENTATION HOW WE GENERATE VALUE In the last 5 years, controllable management expenses of Grupo Argos have decreased 5.1% in real terms SG&A COP billions 165 Grupo Argos Controllable Management Cost 143 -5.1% 28 +1% 141 135 133 1 7 16 11 18 -26% 17 22 CAGR (2015 – 2019) 3 3 31 19 30 27 2
Slide 23: Become an asset manager that enables institutional capital investment in infrastructure
CORPORATE PRESENTATION “ Become an asset manager that enables the investment of institutional capital in the infrastruc ture sector in Latin America. G r u po A r g o s h a s d e m o n s t r a t e d i t s a b i l i t y t o t r ans f or m a n d g r o w b u s i nes s es i n t h i s region, such as Cem
Slide 24: COVID-19
COVID-19
Slide 25: Keeping our commitment to the priorities defined at the beginning
BUSINESS CONTINUITY Keeping our commitment to the priorities defined at the beginning of the situation Life, health and wellbeing → our number one priorty • Over 10,000 tests, equivalent to over 73% of the population. New work realities as competitive leverage • 30% of collaborators working remotely
Slide 26: Emergency plan fully executed as of September
BUSINESS CONTINUITY The emergency plan has been fully executed as of September guaranteeing the flexibility required CAPEX $ 415 $ 868 1 (Uses – billions) $ 293 $ 160 (100%*) OPEX $ 45 $ 324 $ 119 $ 20 $ 508 (101%*) 2 (Uses – billions) Liquidity loans 3 (Sources – billions) $ 443 $ 684 $ 117 $ 150 $
Slide 27: Annexes: Financial Results Q3
A n ex xe s F i n a n c i a l Re s u l t s 3 Q 2 0
Slide 28: Gradual revenue and profitability recovery confirm a positive trend
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Gradual revenue and profitability recovery confirm a positive trend Monthly Revenue COP billions Monthly Ebitda COP billions 2.00 1% 5% -2% -22% -12% -9% -13% -19% -13% 100% 0.60 6% 7% -15% -30% -17% 1% -12% -23% -15% 1
Slide 29: Corporate commitment to adapt to a challenging environment
CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Corporate commitment to adapt to a challenging environment that shows signs of recovery RELEVANT FIGURES COP billions Q3 – 2020 Q3 - 2019 Var.(%) Sep-2020 Sep-2019 Var.(%) Revenue 3,453 5,228 -34% 10,415 12,858 -19% Costs, expenses and other income 3,027 4,24
Slide 30: Business contributions surpass projections: consolidated revenue
CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Business contributions surpass projections made at the start of the pandemic Consolidated revenue Q3’2020 COP billions Consolidated Revenue Q3’2020 (PROFORMA) COP billions -34% -17% * Excludes divestment in Zona Franca (Revenue: COP 1.087 mil mn), which enter
Slide 31: Business contributions surpass projections: consolidated Ebitda
CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Business contributions surpass projections made at the start of the pandemic Consolidated Ebitda Q3’2020 COP billions Consolidated Ebitda Q3’2020 COP billions -39% -22% * Excludes divestment in Zona Franca (Revenue: COP 1.087 mil mn), which enters under the “
Slide 32: Savings in structural expenses in line with strategy
CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Savings in structural expenses in line with strategy implemented CONSOLIDATED1 COP billions -2% Increase mainly due to the definition of the SSPD2 under which an additional contribution must be made to the corporate 427 fund. Excluding this effect, expenses 4
Slide 33: Lower cost of debt reflected in decrease in financial expenses
CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 A lower cost of debt was reflected by a COP 60 billion decrease in financial expenses Consolidated debt COP billions Net debt1 COP billions Net financial expenses COP billions 17,793 + 995 18,262 326 - 526 1,742 16,509 16,697 23 1,582 266 1,580 1,626 66 4,261
Slide 34: Successful bond conversion to improve credit profile
SEPARATE RESULTS GRUPO ARGOS Q3’2020 Successful bond conversion to improve credit profile and better manage the current situation RELEVANT FIGURES COP billions Q3 – 2020 Q3 – 2019 Var.(%) Sep-2020 Sep-2019 Var.(%) Revenue 24 256 -91% 253 660 -62% 3 -2 -225% 43 65 -34% Costs and other expenses GA exp
Slide 35: 2020 cumulative expenses remain 4% below September 2019
SEPARATE RESULTS GRUPO ARGOS Q3’2020 2020 cumulative expenses remain 4% below expenses as of September 2019 1. Revenue distribution Q3’2020 COP billions 2. Equity method distribution Q3’2020 COP billions 213 256 8 163 -95% Otros Other Act. Financiera Financial act. 213 10 Cemento Cement MPP Equity M
Slide 36: Cash in response to the situation
SEPARATE RESULTS GRUPO ARGOS Q3’2020 116 billion in cash as a response to the situation Cash flow COP mn Notes COP mn 1 Net Dividends Dividendos netos 56 1. Dividends paid: COP 235 billion, dividends received: COP 292 billion Real Estate Revenue Ingresos NDU 41 2. Sale of shares in Odempa: COP 36 bi
Slide 37: CEO, CFO, IR contacts
CEO CFO Jorge Mario Velásquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejía Tel: (57) 312 796 4775 Tel: (57) 311 302 8427 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com
Slide 38: CORPORATE PRESENTATION December 2020
CORPORATE PRESENTATION 38 December 2020