Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (June 2020)
41 slides from Grupo Argos's investor presentation, June 2020
Slide 1: Corporate Presentation June 2020
CORPORATE PRESENTATION Corporate Presentation 2020 June 2020 1 JUNE 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: COVID-19
CORPORATE PRESENTATION COVID - 19 3 JUNE 2020
Slide 4: Strategic plan to deal with Covid19
CORPORATE PRESENTATION COVID-19 MANAGEMENT We articulated, designed and implemented a strategic plan to deal with Covid19 1. Care and health 2. Employment 3. Business Of our collaborators and their families Preserve employment as far as Continuity and proactive management as our number one priority
Slide 5: Solid corporate government, capable of managing rapidly changing market dynamics
CORPORATE PRESENTATION COVID-19 MANAGEMENT Solid corporate government, capable of managing rapidly changing market dynamics Health and Life Finances and Risks Chief Administrative and Human CFO´s Talent Officers • Cash status • Health and wellbeing • Financial cycle • Personal and family support • C
Slide 6: Emergency plan: COP 2.8 trillion in savings to date
CORPORATE PRESENTATION BUSINESS CONTINUITY Emergency plan: An on-going exercise that has allowed us to identify COP 2.8 trillion in savings to date CAPEX 1 (COP billions) $ 293 $ 160 $ 415 $ 868 OPEX $ 57 $ 324 $ 119 $ 20 $ 520 2 (COP billions) Liquidity Credits 3 (COP billions) $ 497 $ 591 $ 117 $
Slide 7: Concessions business: reduction, liquidity and economic equilibrium
CORPORATE PRESENTATION CONCESSIONS BUSINESS Capex, Opex and Devex reduction, maintain liquidity and reestablish economic equilibrium of concessions COP bn COP bn Restart of tolls collection from June 1 Measure in concession contract: The parties may agree to an extension in time that exceeds the -34
Slide 8: Energy business: successful bonds issuance guarantees liquidity
CORPORATE PRESENTATION ENERGY BUSINESS Successful bonds issuance, guarantees liquidity in the actual context COP mil mn COP mil mn -14% 88% Costs Expenses Available Cash Opex – Capex reduction Collection 450 350 +COP COP April consolidated distribution business billion billion Progress since the sec
Slide 9: Cement business: geographic diversification mitigates impact
CORPORATE PRESENTATION CEMENT BUSINESS Geographic diversification mitigates impact from stoppage of operation in other regions Cement shipments in Colombia (Ton) COP billion COP billion 12,000 10,000 8,000 6,000 -6% 4,000 2,000 - Costs Expenses 1-abr 8-abr 15-abr 22-abr 29-abr 6-may 13- 20- may may
Slide 10: Grupo Argos
CORPORATE PRESENTATION GRUPO ARGOS 10 JUNE 2020
Slide 11: 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 12: Evolution from 2012 to 2019
CORPORATE PRESENTATION 2012 2019 FOCUS: Investmentes related with the FOCUS: Infraestructure asset manager, focus on capital cement industry allocation ASSETS: In different sectors and segments of ASSETS: Articulated portfolio focused on cement, the economy energy, concessions and real estate MANAGE
Slide 13: 2012 vs 2019 assets, revenues, Ebitda and net profit
CORPORATE PRESENTATION 2012 2019 Assets: COP 27 trillion Assets: COP 56 trillion *Data last twelve months (LTM) as of March 2020 Revenues: COP 6.7 trillion Revenue: COP 16.7 trillion Ebitda: COP 1.6 trillion Ebitda: COP 4.6 trillion Net profit: COP 344 billion Net profit: COP 1.1 trillion Employees:
Slide 14: Strategic portfolio focused in infrastructure
CORPORATE PRESENTATION PORTFOLIO Strategic portfolio focused in infraestructure USD 2.6 bn USD 3.7 bn USD 1.1 bn MARKET CAP *1 REVENUES *2 EBITDA *2 CEMENT ENERGY CONCESSIONS In Infrastructure STRATEGIC 58.1% *3 52.9% *8 99.9% Revenues: USD 2.3 bn Revenues: USD 0.9 bn Revenues: USD 0.47 bn (+0.2 bn
Slide 15: Diversified Ebitda contribution
CORPORATE PRESENTATION WHO WE ARE? In the last 5 years we have been able to diversify the contribution in terms of Ebitda COP 55.8 trillion Consolidated Assets (March 2020) COP 1.1 trillion Consolidated Net Profit (LTM March 2020) COP 513 billion Net Profit of the parent company (LTM March 2020) Con
Slide 16: 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 17: 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 region During 2019 we achieved Cashouts f
Slide 18: 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 19: Cementos Argos: Efficiencies 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 keep being leaders in the construction materials se
Slide 20: 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 21: Share price affected by market liquidity
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 18,000. 00 16,000. 00 17,746 16,000. 00 14,955 14,000. 00 14,000. 00 12,000. 00 27,866 6,638 12
Slide 22: Committed with 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 25% 22% CLAUDIA BETANCOURT 35% Colombian Non – Independent Grupo GrupoNutresa N
Slide 23: Ebitda CAGR 16% in the last 5 years
CORPORATE PRESENTATION RESULTADOS FINANCIEROS 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% 5,6
Slide 24: Financial flexibility as no maturities until 2022
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS Q1-2020 Financial flexibility as no maturities until 2022 – cost of debt remains at 7% Indebtedness1 COP billions Profile of maturities (principal) COP billions 7% 0% 0% 22% 22% 15% 9% 0% 23% 0% 10% 36% 36% COP 247 Bonds Bonos 1,717 bn INDEXED 376
Slide 25: S&P maintains AA+ rating for Grupo Argos
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE S&P maintains AA+ rating for Grupo Argos AA+ ~28% ~3 - 4x >1,5x Rating Ebitda Margin Net debt / Ebitda Sources / Uses S&P May 2020 Stable Profitability Controlled Leveratge Ratio Enough Liquidity Highlights Has demonstrated access to capital markets and ca
Slide 26: Leverage ratios evolution in line with capital allocation strategy
CORPORATE PRESENTATION CAPITAL STRUCTURE Levarage ratios evolution in line with efficient capital allocation strategy Deuda bruta Ebitda Deuda 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 679 628 558 Invested + COP 3.1 trillion 1
Slide 27: 2019 cash flow equivalent to one day of revenue
CORPORATE PRESENTATION GRUPO ARGOS 2019 CASH FLOW We ended the year 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:
Slide 28: 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 143 mn (received - paid) 591 600 583 500 115 14 70 + 4,2x 463 27 between 2016 and 2019 25 50 400 161 78 65 314 288 3
Slide 29: Controllable management expenses decreased 5.1%
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 30: Become an asset manager enabling institutional capital in infrastructure
CORPORATE PRESENTATION “ Become an asset manager that enables the investment of institutional capital in the infrastruc ture sector in Latin America. Grupo Argos has demonstrated its ability to transform and grow businesses in this region, such as Cementos Argos, C e l s i a a n d O d i n s a . W e
Slide 31: Contact: CEO, CFO, Investor Relations
CORPORATE PRESENTATION CEO Jorge Mario Velasquez CFO Alejandro Piedrahita Investor Relations Director Natalia Agudelo Tel: (574) 319-8712 E-mail: nagudelop@grupoargos.com Investor Relations Analyst Jaime Andres Palacio Tel: (574) 3198400 ext 22388 E-mail: jpalaciop@grupoargos.com www.grupoargos.com
Slide 32: Slide 32
Slide 33: Consolidated results Q1-2020 relevant figures
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Cementos Argos, Celsia, Odinsa and Urban Development Business confirm our diversification strategy RELEVANT FIGURES COP bn Mar-2020 Mar-2019 Var.(%) Revenue Cost, expenses & other revenues Operating profit 3,616 3,219 397 3,715 3,112 60
Slide 34: Contribution by business to revenue and Ebitda
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Consolidated contribution in revenues from strategic businesses of COP 58 billion Contribution by business to consolidated revenue 1Q2020 COP bn -3% 1Q2019 Cement Energy Real estate Portfolio Coal Concessions Other 1Q2020 Contribution b
Slide 35: Stable SG&A in light of current situation
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Stable SG&A as proof of quick response capacities in light of the current situation CONSOLIDATED1 COP bn -1% 229 225 443 52 67 108 439 47 103 59 31 28 5 5 15 14 Mar-2019 1Q2019 Mar-2020 1Q2020 Mar-2019 1Q2019 Mar-2020 1Q2020 Mar-2019 1Q
Slide 36: Stable financial expenses despite devaluation effect
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Stable financial expenses despite the effect of devaluation in the consolidated debt Consolidated Debt COP bn Net Financial Expenses COP bn 2,181 337 18,609 297 +0.7% 300 - 1,717 16,092 26 26 - 1,545 4,843 54 78 3,833 Grupo Argos Grupo
Slide 37: Separate results Q1-2020: Ebitda margin improves
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS Q1-2020 66% Ebidta margin improves by 100 basic points RELEVANT FIGURES COP bn Mar-2020 Mar-2019 Var.(%) Revenue 200 308 -35% Costs and other expenses 24 60 -60% GA expenses Operating profit Ebitda Ebitda margin 47 128 132 66% 52 196 200 65% -8% -3
Slide 38: Controllable expenses go down 8% year-on-year
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS Q1-2020 Controlable expenses go down 8% year-on-year 1. Revenue Distribution 1Q2020 COP billions 2. Equity Method Distribution* 1Q2020 COP billions 57 308 13 13 57 9 29 -75% 3 -35% 200 19 MPP Financial Otros Other 13 34 38 Negocio Inmobiliario Equi
Slide 39: Cash provides financial flexibility for dealing with Covid-19
CORPORATE PRESENTATION GRUPO ARGOS SEPARATE RESULTS Q1-2020 COP 115 bn in cash provides us with financial flexibility for dealing with Covid-19 Flujo de caja Notas COP mn 1. Net dividends: COP 19 bn, 1 Dividendos netos Net dividends 19 2. Developed plots: COP 11 bn, income and others: COP 3 bn 2 Ing
Slide 40: Contact: CEO, CFO, IR
CORPORATE PRESENTATION CEO Jorge Mario Velasquez CFO Alejandro Piedrahita IR Director Natalia Agudelo Tel: (574) 319-8712 E-mail: nagudelop@grupoargos.com IR Analyst Jaime Andres Palacio Tel: (574) 3198400 ext 22388 E-mail: jpalaciop@grupoargos.com www.grupoargos.com 40 JUNE 2020
Slide 41: Corporate Presentation June 2020
CORPORATE PRESENTATION 41 JUNE 2020