Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q2 2022 Earnings Presentation
43 slides from Grupo Argos's earnings presentation, August 2022
Slide 1: Second Quarter 2022 Results Presentation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Second Quar ter 2022 Results Presentation August 2022 1 agosto 2022 Celsia Solar Comayagua - Honduras
Slide 2: Disclaimer
PRESENTACIÓN Resultados DE RESULTADOS Primer Trimestre TRIMESTRALES del 2019 QUARTERLY RESULTS PRESENTATION Disclaimer This presentation contains certain forward-looking representations and information related to GRUPO ARGOS and its subsidiaries based on currently known facts, expectations and forec
Slide 3: Progress consolidating Grupo Argos Infrastructure
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Grupo Argos Infrastructure We continue to make progress with consolidating Grupo Argos Infra Cement Alternative asset manager→ GA Infrastructure Portfolio √ √ √ √ √ Energy ▪ Sura Argos Energy Energy Roadway Airport Real Estate Argos USA Distribution ▪ Nutresa
Slide 4: Successful closure of the roadway vertical with a world-class partner
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Grupo Argos Infrastructure Successful closure of the roadway vertical with a world-class partner Relevant Data on the Roadway Vertical 100% Grupo Argos COP 4 tn AUM 50% 50% Odinsa Roadways Focus on Investments in COP 4.5 tn Private equity fund Colombia and the
Slide 5: Airport Vertical currently being structured
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Grupo Argos Infrastructure Airport Vertical currently being structured The Airports Platform will consolidate the #1 and #2 airport in South America according to Skytrax 1 OPAIN 2 Ecuador 3 Lima 4 Guayaquil 5 Sao Paulo GRU 6 Santiago 7 Rio de Janeiro GIG 8 Med
Slide 6: The year begins with a favorable operational and financial dynamic
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 The year begins with a favorable operational and financial dynamic Cement Infra Portfolio Net income controlling Revenue EBITDA Net Income interest1 Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +35% +16% +25
Slide 7: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 7 agosto 2022
Slide 8: CemArgos: Divestment of non-integrated concrete assets in the United States
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 CemArgos: Divestment of non-integrated concrete assets in the United States Cement Infra Portfolio Highest revenues in the history of CemArgos reach COP 2.9 billion during 2Q2022 • Favorable price and volume dynamics, particularly in
Slide 9: CemArgos: Cost inflation affects EBITDA and margins
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 CemArgos: Cost inflation affects EBITDA and margins Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 2Q2022 vs 2Q2021 +15% 2Q2022 vs 2Q2021 -1% Cement Cemento RMC (YOY) (YOY) 6 6,0 +6%* 2.851 2.577 1 542 5 4,5 5,0 2.47
Slide 10: CemArgos: Pricing and efficiency strategies in monthly results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 CemArgos: Pricing and efficiency strategies strategy were in evidence in the monthly results Cement Infra Portfolio Revenue EBITDA COP bn Net income controlling interest COP bn +4% cement volumes +5% RMC volumes +15% 47 1.028 +33% 198
Slide 11: Celsia: Operational excellence fostered extraordinary results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 Celsia: Operational excellence and market conditions fostered extraordinary results Cement Infra Portfolio The company reported the best results in its history in the first half of 2022 • EBITDA 2Q2022 COP 458 billion (+46%) • Net inc
Slide 12: Celsia: EBITDA grows 43% y/y
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 Celsia: EBITDA grows 43% y/y Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn Generación Generation Comercialización Commercialization 2Q2022 vs 2Q2021 +29% 2Q2022 vs 2Q2021 +43% (YOY)1 (YOY)1 +14% 2.000 2.000 1.620 1
Slide 13: Odinsa: Accelerated growth of airport and roadway traffic continues
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 Odinsa: Accelerated growth of airport and roadway traffic continues Cement Infra Portfolio Closure of the Roadway Vertical • 50% Macquarie Asset Management, the world's largest infrastructure manager • Odinsa Vías, will manage the Odi
Slide 14: Odinsa: Ongoing accelerated growth in road and airport traffic
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS2Q2022 Odinsa: Ongoing accelerated growth in road and airport traffic Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn Roadways (TPD) Carreteras (TPD) Airports (PAX) Aeropuertos (PAX) 2Q2022 vs 2Q2021 -42% 2Q2022 vs 2Q2021 +
Slide 15: Pactia: Recurring revenue and EBITDA growth
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Pactia: Recurring revenue and EBITDA growth Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 2Q2022 vs 2Q2021 +5% 2Q2022 vs 2Q2021 -15% (YOY) (YOY) 1.400 1.200 108 53 51 98 1.000 88 85 855 852 838 837 809 81 39 36
Slide 16: Real Estate Business: Progress with tourism development in Baru
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Real Estate Business: Progress with tourism development in Baru Cement Infra Portfolio Financial Results COP bn Tourism development in Baru Cash flow1 2022 2021 Var (%) Revenue 93 52 80% Net cash flow 43 6 649% • 1Q22 revenue +80% YO
Slide 17: Consolidated and separated financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Consolidated and separated financial results 17 agosto 2022
Slide 18: Proforma EBITDA ends the semester at COP 2.5 trillion
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2021 Proforma EBITDA ends the semester at COP 2.5 trillion, 18% higher than the previous year Consolidated Summary P&L Quarterly Results Cumulative Results for the Year COP bn 2Q - 2022 2Q - 2021 Var.(%) Jun-22 Jun-22 Var.(%) Revenue 5,89
Slide 19: 19% revenue growth and 20% EBITDA growth (YOY)
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 19% revenue growth (YOY) and 20% EBITDA growth (YOY) Consolidated revenue (Proforma) COP bn Consolidated EBITDA (Proforma) COP bn 1.500 29 1.325 20 20 147 -6 1.300 1.122 1.100 -7 900 700 500 +19% +20% 300 100 Otros Energía Concesione
Slide 20: 19% revenue growth and 20% EBITDA growth (YOY)
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 19% revenue growth (YOY) and 20% EBITDA growth (YOY) Consolidated revenue (Proforma) COP bn Consolidated EBITDA (Proforma) COP bn 1.500 6.000 29 1.325 20 20 147 -6 1.300 5.000 73 32 4.794 1.122 308 -23 1.100 4.025 378 -7 4.000 900 3.
Slide 21: Increased expenditure associated with operational dynamics and inflation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure1 Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +15% +13% +27% +9% Odinsa OPAIN 264 88 10
Slide 22: Financial discipline results in reduced indebtedness
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Financial discipline, cash flow generation and divestments result in reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 17.008 15.884 1.724 14.856 346 578 1.724 1.433 31 4.692 -2.759 13.194 2
Slide 23: Separated summary P&L and proforma EBITDA
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Proforma EBITDA for 1Q2022 is 32% higher than the previous year Separated Summary P&L Quarterly Results Cumulative Results for the Year COP bn 2Q - 2022 2Q - 2021 Var.(%) Jun-22 Jun-22 Var.(%) Revenue 172 219 -22% 457 409 12% Costs a
Slide 24: Separated revenue was COP 172 billion during 2Q2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Separated revenue was COP 172 billion during 2Q2022 Revenue distribution 2Q2022 COP bn Controllable Expenses 2Q2022 COP bn % Variation (YOY) +999000% 40 37 +799000% +599000% +399000% -20% -94% -97% +85% +216% +112% -22% +32% 35 +1990
Slide 25: Treasury investments result in a positive carry regarding cost of debt
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Treasury investments result in a positive carry regarding the cost of debt Cash flow COP bn Notes COP bn COP million 1 Dividendos netos 455.526 1. Div. received: 563,989 (Odinsa: 360,957). Div. Paid: 108,463 2 Ingresos NDU 92.756 2.
Slide 26: Cost of debt increases less than inflation thanks to hedging
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Cost of debt increases less than inflation thanks to hedging strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Vida media (años) Kd (sin coberturas ni inversiones) Kd (Real) IPC 3% 0% 16% 25
Slide 27: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Grupo Argos has the highest credit rating from Fitch and S&P AAA AAA 1 1 Stable Stable June 2022 May 2022 ▪ Credit quality and dividend flow stability even in challenging ▪ Fulfilment of key milestones that enabled debt reductions an
Slide 28: Sustainability milestones
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Sustainability milestones Climate change strategy Value Added Statement Goal: carbon neutral by 2050 3.8x -76% Of its retained benefits returned by Grupo Empresarial Argos to society In emissions over the last four years USD 154.5 mi
Slide 29: 2022 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 2022 Results Guidance 17.0 – 17.5 4.4 - 4.6 1.2 - 1.3 COP¨bn COP¨bn COP¨bn Revenue 2022e EBITDA 2022e Net Income 2022e Guidance for 2022 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions)
Slide 30: Annexes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 30 agosto 2022
Slide 31: Increased valuation potential according to current arbitrage prices
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Increased valuation potential according to current arbitrage prices Grupo Argos Arbitrage1 Price (30/06/2022) COP / Share Historical Arbitrage Gap1 (Relative Prices) 120 Lockdown begins (Mar – 2020) +16% (acc. Ord) +137% (acc. Pf) 10
Slide 32: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 32 agosto 2022
Slide 33: Cement volumes end the quarter at 4.2 mm tons shipped
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS 2Q2022 Cement volumes end the quarter at 4.2 mm tons shipped (-6% YOY) Cement Volumes millions of tons Concrete Volumes millions of m3 USA COL C y CA USA COL C y CA 0,2 0,45 4,5 0 1,98 4,2 0,0 1,96 0,0 0,1 0,1 1,5 1,1 0,5 -0,2 0,7 Proforma Prof
Slide 34: Cost inflation affected margins even with 15% revenue growth
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS 2Q2022 Cost inflation affected margins for the period even with 15% revenue growth Revenue COP bn Ebitda COP bn Net profit to the controlling COP bn share 145 29 0 2.851 164 696 2.473 204 180 1 44 509 -183 -48 -0 Proforma1 -1% 5 +15% -27% -97%
Slide 35: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 35 agosto 2022
Slide 36: Growth in P and Q support Celsia's performance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS 2Q2022 Growth in "P" and "Q" support Celsia's good performance for the period Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regulado Regulated 144 22 1.876 3 923 67 30 1.549 1.709 854 164 26
Slide 37: Revenue, EBITDA, and Net Income grow by double digits at Celsia
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS 2Q2022 Revenue, EBITDA, and Net Income grow by double digits at Celsia Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 9 457 15 1.208 134 253 61 106 133 940 313 118 52 57 1.075 395 822 +29% +46% +85% 261 2Q 2
Slide 38: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 38 agosto 2022
Slide 39: Airport traffic in March 2022 was higher than in March 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS 2Q2022 Airport traffic in March 2022 was higher than in March 2019 Thousands of Millions of passengers Average daily vehicles Airport traffic vehicles (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 13,5 4,9 10,1 1,0 10,8 103,8 0,6 100,7 -20,0
Slide 40: Significant EBITDA growth excluding the effect of ADN and BTA
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS 2Q2022 Significant EBITDA growth excluding the effect of ADN and BTA Revenue COP bn Ebitda COP bn Net income controlling interest (Proforma) COP bn 234 96 1 -42% +121% 304 222 Proforma Proforma -19 229 2 197 2 -2% +22% 36 135 14 222 -96 -1
Slide 41: Opain ends with 3.1 million PAX mobilized
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS 2Q2022 Opain ends March with 3.1 million PAX mobilized, +6% compared to June 2019 Passengers Millions of passengers (PAX) 3,1 Doméstico Internacional 3,0 3,0 3,0 3,1 2,8 2,7 2,7 2,70 2,4 2,1 2,1 2,0 2,2 1,6 1,8 1,4 1,3 1,1 1,4 1,2 1,3 1,0
Slide 42: CEO, CFO, IR Manager
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Juan Esteban Mejia Carolina Arango Tel: (574) 315 8400 Tel: (574) 315 8400 E-mail: jemejia@grupoargos.com E-mail: carangoz@grupoargos.com www.grupoargos.com 42 agosto 2022
Slide 43: PRESENTACIÓN DE RESULTADOS TRIMESTRALES agosto 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 43 agosto 2022