Grupo Argos S.a. · BVC:GRUPOARGOS

Grupo Argos — Investor Presentation (June 2013)

40 slides from Grupo Argos's investor presentation, June 2013

  1. Slide 1: Grupo Argos

    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: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 3

  4. Slide 4: Portfolio

    Portfolio Strategic Investments Cement, Energy, Ports, Coal, Real Estate 60.7% 50.2% 50% 100% 100% Cement Energy Ports Coal Real Estate Portfolio Investments 29.2% (1) 9.8% Commercial value of the portfolio USD Financial Services, 9.7 billion. Insurance, Pension Processed food Funds NOTE: 1. 29.2% S

  5. Slide 5: Strategy

    Strategy We like to invest in businesses intrinsically related to economic development Since our inception, our management and culture We add strong financial are devoted to work with support to our Economic, Environmental investments and Social Sustainability We look for industry and geographic div

  6. Slide 6: Corporate Governance at Grupo Argos

    GobiernoCorporate Corporativo Governance at GRUPO ARGOS Board of Directors 5 Independent Members Independent Chairman 2 Non independent Members Audit Committee Corporate Governance Committee Compensation Committee  2 Independent members  2 Independent members  2 Independent members  1 Non indepe

  7. Slide 7: A Culture of Corporate Governance in our listed companies

    A Culture of Corporate Governance in our listed companies  GRI, WBCSD GRUPO ARGOS BVC: INVARGOS Board of Directors David Bojanini Rosario Córdoba* Carlos Piedrahita Guillermo Heins* Ana Arango* CEMENTOS Mario Scarpetta* CELSIA ARGOS BVC: CELSIA BVC: CEMARGOS / ADR nivel 1: CMTOY.PK Esteban Giraldo*

  8. Slide 8: Relevance in our Geographic Coverage

    Relevance in our Geographic Coverage Investment and Management Criteria  Growth potential  Controlling stakes  Economical, environmental and social performance  Corporate governance  Strong Brand and Customer Management (High Market Share) Argos (Cement) Celsia (Energy) Situm (Real Estate) Comp

  9. Slide 9: Diversified Ownership: IFs increasing its position

    Diversified Ownership: IF´s increasing its position Shareholders – Ordinary Shares Shareholders – Preferred Shares 26,91% Grupo Sura Colombian Pension 35,71% 34,76% Grupo Nutresa Funds Colombian Pension Funds International Funds 53,78% International Funds 8,42% Retail Investors Retail Investors 16,5

  10. Slide 10: Growth Potential: Cement

    Growth Potential: Cement Average Household Size Housing Deficit Infrastructure Investment US Housing prices Latam Population Per Capita Cement Consumption June 2012 May 2006 March 2013 10

  11. Slide 11: Growth Potential: Energy

    Growth Potential: Energy Per Capita KWH Energy Mix Average Latam 11

  12. Slide 12: Growth Potential: Ports

    Growth Potential: Ports Foreign Trade Agreement In force Subscribed In negociation Foreign Trade Projection Foreign Trade Behavior 12

  13. Slide 13: Growth Potential: Real Estate

    Growth Potential: Real Estate Colombia Population Housing Deficit Government Project 13

  14. Slide 14: Grupo Argos: Strong Balance Sheet

    Grupo Argos: Strong Balance Sheet Consolidated revenues Consolidated EBITDA US$ millones US$ millones 1.600 4.000 3.717 1.400 36% 30% 3.500 28% 24% 3.129 1.200 18% 19% 18% 2.899 12% 3.000 1.000 876 883 899 2.500 756 2.020 2.125 800 2.000 1.837 1.495 600 1.500 340 368 400 270 1.000 730 200 87 500 - -

  15. Slide 15: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 15

  16. Slide 16: Real Estate: Property and Land Development

    Real Estate: Creating an unique mix of Property and Land Development Land Development:  Track Record in Barranquilla  12 years and > 300 hectares developed.  Highest standard in Colombia  Establishing a Land Bank in small-medium cities looking for first mover advantage View: one of the sites dev

  17. Slide 17: USD 1.5 Billion of Land Bank in Strategic Locations

    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 beach front  Located throughout Colombia in Barranquilla and Puerto Colombia  Beaches, swamps and cliffs  Pote

  18. Slide 18: Opportunity to Develop the Property Business

    REIT returns Opportunity to Develop the Property Business The return profile for REITs exhibits characteristics of both equities and bonds The return profile for REITs exhibits characteristics of both equities and bonds. Through the lease structure, REITs receive a steady stream of income, like bond

  19. Slide 19: Shopping Centers: Colombia starting the trend

    Shopping Centers: Colombia starting the trend . . . GLA/1.000 Habitants 220 200 180 160 140 120 100 80 60 40 20 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Source: McKinsey Fuente: McKinsey. Per capita GDP Thousand USD 19

  20. Slide 20: Segment with high potential: Opportunities under Development

    Segment with high potential Opportunities under Development:  Alliance with EXITO (Member of Casino Group)  One under construction and two under feasibility study  Using existing and probed VIVA Villavicencio locations Gross Leasable Area 49,799 mt2 . (sqmt) 215, anchor: Exito, Ripley y Flamingo.

  21. Slide 21: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 21

  22. Slide 22: Compas – Port owner and operator

    Compas – Port owner and operator 7 Ports in Colombia Pacific and Atlantic Locations Mostly Cargo Origin-Destiny no transhipping Leader in Grains Compas Port managed under commercial agreements Port under development 22

  23. Slide 23: Compas: Best Platform in Colombia

    Compas: Best Platform in Colombia Only company with offerings in any important port in Colombia Multipurpose terminals Strong Reputation Highest OSHA standards  4,2 Million Tons moved in 2012  Revenues Dic.2012: COP$ 114 billion  EBITDA Dic.2012: COP$ 29 billion  ~320 employees Puerto Cartagena

  24. Slide 24: Port facilities with expansion potential

    Port facilities with a expansion potential Cartagena Port Barranquilla Port Tolu Port  25 Hectares  25 Hectares  22 Hectares  17,000 m2 of warehouse  Port concession until Feb.  Public port since 2011 2029  3.5 millions tons of capacity  1.5 millions tons of capacity  1.5 millions tons of c

  25. Slide 25: Starting Operations in Panama and Houston

    Starting Operations in Panama and Houston (USA) Buenaventura Port Panama Port Houston Port  Port Concession until 2021  5 Hectares  11 Hectares  1.1 millions tons of capacity  1.5 millions tons of  1.0 million tons of capacity capacity  100% Bulk 25

  26. Slide 26: New locations with strong partners

    New locations with strong partners Buenavista Port (Cartagena) Sociedad Puerto Industrial Aguadulce S.A  Future port in Buenaventura  New facility in Cartagena  Partner: ICTSI from the Philippines  40 hectares – In land logistics (top 5 container terminal operator in available the world)  Partn

  27. Slide 27: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 27

  28. Slide 28: Cementos Argos

    Cementos Argos Colombia’s leader in Cement, Ready Mix Concrete and Aggregates since 1934. 5th cement producer in LATAM 4th concrete producer in the US  Market Cap. Dic. 2012: US$ 6.6 billion  Revenues Dic.2012: US$ 2.4 billion  EBITDA Dic.2012: US$ 440 million  Net Debt Dic.2012: US$ 1.6 billion

  29. Slide 29: Cementos Argos – Geographic Coverage

    Cementos Argos – Geographic Coverage Colombia Estados Unidos Cement Cement  ~49% Market share  Second largest producer of  Installed capacity: 9.9 mm TPA the Southeast2  Plants: 9  Installed capacity: 3.2mm TPA  Grinding Stations: 1  Plants: 2  Ports: 1  Grinding stations: 1 Ready - mix  P

  30. Slide 30: In May Successfully placed USD 880 Million in Pref. Shares

    In May Succesfully placed USD 880 Million in Pref. Shares Consolidated revenues Consolidated EBITDA 3.000 US$ millones US$ millones 600 2.437 17% 18% 16% 19% 18% 19% 2.500 12% 500 440 1.955 1.983 2.000 1.824 400 369 1.602 1.594 329 304 303 284 1.454 300 1.500 243 200 1.000 100 500 - - 2006 2007 2008

  31. Slide 31: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 31

  32. Slide 32: Celsia is positioned to grow along with Colombia

    Celsia is positioned to grow along with Colombia 4th power generator in Colombia 2nd thermal power generator 5th energy distributor in Colombia  Revenues Dec.2012: US$1 billones  EBITDA Dec.2012 : US$414 million  Net Debt Dec.2012: US$533 million Barranquilla Plant, Gas powered CC 640 MW  Market

  33. Slide 33: Celsia – Geographic Coverage

    Celsia – Geographic Coverage  1,777 MW installed capacity 17 plants in operation  55% hydro, 45% thermo Power 610MW  9,645 GWh-year firm energy 32% Generation (10% of Colombia) Unique Mix  487MW (+28%) in ongoing and under development Celsia projects  274 km 220 kV power lines Transmission 40MW

  34. Slide 34: Celsia: Strong Balance for Continuous Growth

    Celsia: Strong Balance for Continous Growth Consolidated revenues Consolidated EBITDA US$ millones US$ millones 700 1.200 1.126 1.001 600 39% 37% 37% 1.000 916 500 32% 386 414 800 400 26% 343 300 600 200 400 69 82 265 259 100 200 - 2008 2009 2010 2011 - 2008 2009 2010 2011 2012 EBITDA EBITDA Margin

  35. Slide 35: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 35

  36. Slide 36: Coal Business

    Coal Business  9 mining titles located mainly in departments of Córdoba and Antioquia, Colombia  SGS GEOSTAT was retained to evaluate the mine’s resources under JORC code standards  Production domestically consumed 36

  37. Slide 37: Contents

    Contents 1. Grupo Argos 2. Investments  Situm  Compas  Argos  Celsia  Sator 3. Overview of Portfolio Companies  Grupo Sura  Grupo Nutresa 37

  38. Slide 38: Grupo Sura: 29% of direct ownership

    Grupo Sura: 29% of direct ownership Holding company: Investments in the financial, insurance and social security sectors. Strong LATAM presence  Market Cap. Mar. 2013: US$ 12.4 billion  Revenues Dic.2012: US$ 7.4 billion  Net Income Dic.2012: US$ 309 million  BVC, ADR level I and LATIBEX 38

  39. Slide 39: Grupo Nutresa: 9.8% of direct ownership

    Grupo Nutresa: 9,8% of direct ownership Colombia’s leading processed food company and one of the top ten regional players in the Latin American food sector. Its Brands and market share are very strong.  Market Cap. Mar. 2013: US$ 6.5 billion  Revenues Dic.2012: US$ 2.96 billion  EBITDA Dic.2012:

  40. Slide 40: Ricardo Sierra, Nicolás Valencia

    www.grupoargos.com Ricardo Sierra Nicolás Valencia CFO Investor Relations rsierra@grupoargos.com Tel.: (574) 319.87.12 Medellín, Colombia nvalenciap@grupoargos.com Medellín, Colombia 40

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