Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q3 2017 Earnings Presentation
28 slides from Grupo Argos's earnings presentation, 2017
Slide 1: Results Presentation 3Q 2017
Results Presentation 3Q 2017
Slide 2: Important Note
IMPORTANT NOTE This presentation contains certain forward-looking information and statements related to GRUPO ARGOS and its subsidiaries that are based on knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events. Many factors could cause the future res
Slide 3: Strategy: Coherence and Discipline
STRATEGY COHERENCE AND DISCIPLINE IN OUR STARTEGY: LEVERAGE OF EXCELENT RESULTS 1 Simplification and focus 2 Portfolio profitability 3 Profitable growth 4 Efficient capital allocation TYPE OF HOLDING: ACTIVE MANAGER 2014 2015 2016 ✓ 6.3 mm Sura PF ✓ Divestment of 300 ✓ Completed acquisition of 98.6%
Slide 4: Sale of Compas Reaffirms Commitment to Efficient Portfolio Management
STRATEGY SALE OF COMPAS REAFFIRMS OUR COMMITMENT TO MANAGE EFFICIENTLY OUR INVESTMENT PORTFOLIO • Múltiplos Strategic rational • Múltiplos Accounting Impact on Grupo Argos • Múltiplos Contribution to the 3Q17 strategy P&L P&L ▪ Fulfillment of investment thesis COP billion separate consolidated Chang
Slide 5: Celsia's Announcement in Line with Simplification Strategy
STRATEGY CELSIA’S ANNOUNCEMENT IS IN LINE WITH OUR SIMPLIFICATION AND EFFICIENT CAPITAL ALLOCATION STRATEGY Simplification of the strategic architecture of Grupo Argos • Consolidation of the energy business in a single vehicle • Greater clarity of the holding structure for the market Strengthening o
Slide 6: Recognized as Global Leaders in Sustainability
STRATEGY GRUPO ARGOS AND ITS SUBSIDIARY CEMENTOS ARGOS RECOGNIZED AS GLOBAL LEADERS IN SUSTAINABILITY Sustainability as the axis of our strategy Included for the 5th consecutive year as members of Included in the Dow Jones Sustainability Index Mila the Dow Jones Sustainability Global Index Pacific A
Slide 7: Grupo Argos
Grupo Argos
Slide 8: Executive Summary
EXECUTIVE SUMMARY CONSOLIDATED RESULTS REFLECT SUCCESSFUL CAPITAL ALLOCATION STRATEGY WITH 29% EBITDA MARGIN, THE HIGHEST IN THE LAST 2 YEARS CONSOLIDATED RESULTS 3Q17consolidated ▪ Revenues increased 20% in 3Q17 after a positive contribution from the sale of Compas (COP 403 bn), in line with an eff
Slide 9: Consolidated Results
CONSOLIDATED RESULTS AT CONSOLIDATED LEVEL WITH GROWTH IN ALL LINES. POSITIVE CONTRIBUTION OF THE CEMENT BUSINESS FOR THE FIRST TIME IN 2017 RELEVANT FIGURES NOTES Consolidated income statement COP bn 3Q2017 3Q2016 YoY Sept 17 Sept 16 YoY 1 Revenue 4,066 3,402 19.5% 10,988 10,829 1.5% 1 ✓ Positive c
Slide 10: Consolidated: Business Contribution to Revenue and EBITDA
CONSOLIDATED ADEQUATE PORTFOLIO ALLOCATION REFLECTED IN THE POSITIVE CONTRIBUTION OF ALL BUSINESSES TO REVENUE AND EBITDA BUSINESS CONTRIBUTION REVENUES (COP bn) 4,066 + 286 + 157 + 131 -4 -2 3,402 + 94 +2 38% +20% 62% BUSINESS CONTRIBUTION EBITDA (COP bn) +0 + 11 -1 1,193 + 98 + 119 936 + 15 + 16 +
Slide 11: Individual Results
INDIVIDUAL INDIVIDUAL EBITDA REFLECTS COMPASS DIVESTMENT AND RECOVERY OF CEMENTOS ARGOS AND CELSIA RELEVANT FIGURES NOTAS Individual income statement 1 COP billions 3Q2017 3Q2016 Var (%) Sept-2017 Sept-2016 Var (%) Revenues distribution 3Q 2017 755 1 Revenue 755 214 253% 1,142 496 130% 253% 2 505 11
Slide 12: Individual: Leverage and Debt Profile
INDIVIDUAL LEVERAGE INDICATOR AT THE INDIVIDUAL LEVEL CLOSES AT A MINIMMUM OF 2.2X, WITH CASH POSITION CLOSING AT COP 267 BN DEBT LEVERAGE RATIOS COP bn Adjusted EBITDA** (COP +9% 1,567 sep-2016 sep-2017 1,442 billions) (12 months)** 22% • sep-2016: 376 Papeles Commercial Max: 3.5x • sep-2017: 707 C
Slide 13: Concession Business
Concession Business
Slide 14: Executive Summary
EXECUTIVE SUMMARY MARKET CONFIDENCE IN A ROBUST PORTFOLIO WITH STRATEGIC FOCUS HIGHLIGHT OF THE QUARTER 3Q17consolidated ▪ Issuance of Odinsa bonds for COP 400 bn with an overdemand of 2.32x, which shows confidence in the strategy of the company ▪ First issuer of the real sector in the last 10 years
Slide 15: Operational Results
OPERATIONAL RESULTS THE QUARTER REGISTER INCREASE IN VEHICLE TRAFFIC AND AIR PASSENGERS OF 3% AVERAGE DAILY TRAFFIC REVENUES BREAKDOWN Thousand COP bn 71.4 73.5 +3.0% 12% 4.0 4.1 Boulevard Turístico del 10.3 11.1 Atlántico 6.0 6.6 Pacífico 2 17.5 17.6 Autopistas del Nordeste 26% COP 200 bn 62% Malla
Slide 16: Financial Results
FINANCIAL RESULTS EBITDA FOR THE QUARTER AFFECTED BY NON-RECURRING EXPENSE IN AKF'S WORK. ACCUMULATED EBITDA GROWS 28% Y / Y REVENUES EBITDA EBITDA MARGIN COP bn COP bn 14% 28% 342 577 46% 504 73 200 268 -14% 2016 61% +9% 183 84 55% 134 203 +66% 132 +53% 81 36% 2017 66% 189 -8% 135 174 103 +31% 78%
Slide 17: Cement Business
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Slide 18: Executive Summary
EXECUTIVE SUMMARY IMPROVEMENT IN OPERATIONAL RESULTS DESPITE ADVERSE CLIMATIC CONDITIONS IN THE USA AND THE CARIBBEAN HIGHLIGHT OF THE QUARTER 3Q2017 ▪ Improvement in operating results is highlighted despite the hurricane season in the US and the Caribbean that affected the economic dynamics REVENUE
Slide 19: Operational Results
OPERATIONAL RESULTS GROWTH IN CEMENT VOLUMES TROUGH ALL REGIONS CEMENT VOLUME CEMENT VOLUMES (TMT) 3Q17 +49% Y/Y +2% Y/Y +6% Y/Y 4,151 +500 3,557 + 22 + 72 Colombia 37% 32% 4,151 Caribe y CA (incl. M TM Exportaciones) +17% EEUU 31% 3T2016 Colombia Caribe + Exp. EEUU 3T2017 READY MIX VOLUME READY MIX
Slide 20: Financial Results
FINANCIAL RESULTS 3Q17 CLOSES WITH ANNUAL GROWTH IN REVENUES AND EBITDA AND A STABLE EBITDA MARGIN COMPARED YOY REVENUES EBITDA EBITDA MARGIN COP bn COP bn -1.3% 6,513 6,426 1,275 -16.8% 19% +4% 1,060 2016 20% 2,111 2,194 398 +2% 20% 407 2,189 -2% 2,154 439 -16% 370 19% 2017 17% 2,213 -6% 2,077 437
Slide 21: Energy Business
Energy Business
Slide 22: Executive Summary
EXECUTIVE SUMMARY IN 3Q17 CELSIA INAUGURATES FIRST 9.8MW SOLAR PLANT, A FIRM STEP IN ITS STRATEGY TO DIVERSIFY ITS GENERATION MATRIX HIGHLIGHT OF THE QUARTER 3Q2017 ▪ Revenues remain stable growing 1% YoY despite low energy prices in Colombia REVENUES ▪ Greater income from distribution assets to the
Slide 23: Operational Results
OPERATIONAL RESULTS OPERATIONAL FIGURES REFLECT A LOWER THERMAL GENERATION OFFSET BY A GREATER HYDRO GENERATION FROM EPSA GENERATION GENERATION MIX GWh Celsia 5% 1,618 -5 - 256 +142 - 56 1,442 Zona Franca 14% 1,440 -11% CA 19% Gwh EPSA 63% Energy Generation Generación 3T16 Celsia Celsia Zona ZonaFra
Slide 24: Financial Results
FINANCIAL RESULTS CELSIA CONTINUES TO IMPROVE ITS PROFITABILITY WITH A RISE OF 20% YoY IN EBITDA REVENUES EBITDA EBITDA MARGIN COP bn COP bn +5% 814 3,001 776 -24% 777 294 246 +20% 32% +1% 2,270 2016 30% 862 785 +6% 20% -14% 263 279 743 37% 1,363 2017 38% -46% 267 -10% 241 742 33% 2016 2017 2016 201
Slide 25: Real Estate Business
Real Estate Business
Slide 26: Executive Summary
EXECUTIVE SUMMARY ADVANCES THE NEGOTIATION OF LAND AND CONSOLIDATES REAL ESTATE PORTFOLIO THROUGH ALLIANCE WITH PROTECCION PENSION FUND Desarrollo Urbano ▪ Progress in the negotiation of land. ▪ Positive results in terms of value for Pactia real estate fund. Since the ▪ For the quarter, 19 thousand
Slide 27: Operational Results: Pactia Real Estate Fund
OPERATIONAL RESULTS OPERATIONAL FIGURES– REAL ESTATE PRIVATE EQUITY FUND, PACTIA STAKE IN PACTIA GLA % 2% 9.6% 9.6% 17.6% 4% 40.0% 40.0% 40.1% Commerce 44.1% 20% Comercio 39.8% 39.8% 36.3% Proteccion 40% Industry Industria Grupo Argos 588,492 m2 Oficinas Offices 60.0% 60.0% 59.9% Conconcreto Hoteles
Slide 28: Grupo Argos
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