Grupo Argos S.a. · BVC:GRUPOARGOS

Grupo Argos — Investor Presentation (March 2015)

47 slides from Grupo Argos's investor presentation, March 2015

  1. Slide 1: Corporate presentation

    Corporate presentation a! wu 4 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: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa Cement plant, Yumbo, Colombia 3

  4. Slide 4: Strategic Investments

    Strategic Investments Coal Ports 3% 3% Cement Energy Listed Real Estate Cement 22% 53% 60,7% 52,4% USD 5,6 billion Non Listed Ports Coal Real Estate 50% Assets 100% Energy 100% 19% Revenues EBITDA Dividends 2014 3% 2% 45% 3Q2014 Results 37% 30% USD 3.1 USD 777 USD 98 billion million 53% million 63%

  5. Slide 5: Portfolio Investments

    Portfolio Investments Grupo Nutresa 18% Bancolombia 5% Grupo Sura (P) USD 3,0 1% billion 29,3% 9,8% Grupo Sura Financial Processed 76% Services*** food Dividends 2014 Grupo Sura (P) 4% NOTE: 2,5% Banking Bancolombia 12% 1. 29.2% Stake held of the ordinary shares with voting rights and 4% stake held

  6. Slide 6: Total Value of Investments and Dividends Flow (Million USD)

    Total Value of Investments and Dividends Flow (Million USD) Food 6% $141 $134 Cement $130 34% Financial $96 Services 29% USD 8.7 billion Coal 2% Ports Energy 2011 2012 2013 2014 2% Real Estate 12% 14% Cement Energy Grupo Sura Grupo Nutresa Bancolombia Grupo Sura Preferencial NOTE: Argos and Celsia,

  7. Slide 7: Increase Diversified Ownership

    Increase Diversified Ownership Shareholders Shareholders Ordinary Shares Preferred Shares 28,06% 31,22% 35,54% Grupo Sura Colombian Pension Funds Grupo Nutresa International Funds Colombian Pension Funds Retail Investors International Funds 9,29% Retail Investors 11,20% 56,38% 14,73% 12,37% Market C

  8. Slide 8: Grupo Argos benefits from its structure

    Grupo Argos benefits from its structure CAPITAL ASSET PRICING MODEL The market rewards Grupo Argos with a lower BENCHMARK EMERGING MARKETS IN LATAM cost of equity as a diversified firm. ke The actual beta is lower than those estimated Equity Company Industry Beta [USD as a weighted average (w and w/

  9. Slide 9: Market rewards management decisions

    60 75 90 105 120 135 150 165 180 195 210 225 2014 dic.-11 (06/07/12) ene.-12 Post – Spin off feb.-12 mar.-12 abr.-12 GRUPO ARGOS may.-12 decisions jun.-12 jul.-12 ago.-12 sep.-12 oct.-12 nov.-12 PF GRUPO ARGOS dic.-12 ene.-13 feb.-13 mar.-13 abr.-13 CEMARGOS may.-13 jun.-13 jul.-13 CELSIA ago.-13 se

  10. Slide 10: Grupo Argos: Main Figures

    Grupo Argos: Main Figures Consolidated revenues US$ millions Consolidated EBITDA US$ millions 5.000 1.600 4.472 4.500 36% 4.082 1.400 30% 28% 24% 25% 23% 19% 18% 4.000 3.717 1.200 1023 1047 3.500 1.000 876 883 899 3.129 2.899 800 756 3.000 600 2.500 2.020 2.125 340 368 400 2.000 1.837 200 1.500 2007

  11. Slide 11: 4Q2014: Consolidated Results - Revenues

    4Q2014: Consolidated Results -Revenues 8.920 + 200 +4 + 208 + 14 + 12 + 14 +5 + 834 7.629 Revenues Cement Energy Coal Ports Real Estate Corporative Divestment Dividends Revenues December 2013 December 2014 11

  12. Slide 12: 4Q2014: Consolidated Results - Ebitda

    4Q2014: Consolidated Results - Ebitda + 35 +4 2.072 +3 + 13 +6 + 26 - 1 + 79 1.907 EBITDA Cement Energy Coal Ports Real Estate Corporative Divestment Dividends EBITDA December 2013 December 2014 12

  13. Slide 13: During 3Q2014 Grupo Argos issued bonds to optimize its financial structure

    During 3Q2014 Grupo Argos issued bonds to optimize its financial structure USD 500 million* Interests Amortization Average Maturity 195,052 9.6 years 127,159 66,125 57,481 54,181 Mandatory Convertible Bonds Total Debt by Maturity 750 11% 2 Years 500 13% 39% 3 Years 5 Years 250 561 11% 10 Years 15 Ye

  14. Slide 14: Investment Criteria

    Investment Criteria Investment Management Criteria Cement • Growth Potential Energy • Controlling Stake Real Estate • Economical, environmental and social performance Ports • Corporate Governance Coal • Brand development 70 years in 6 years in the market the market Real Estate Emerging Opportunities

  15. Slide 15: Highest Standards of Corporate Governance

    Highest Standards of Corporate Governance - Important role of independent Directors: - Audit and Finance, Corporate Governance and Compensation Committees all lead by individual Directors GRUPO ARGOS CEMENTOS ARGOS CELSIA BVC: GrupoArgos BVC: CEMARGOS / ADR nivel 1: CMTOY.PK BVC: CELSIA Board of Dir

  16. Slide 16: Administrative Structure in place to secure and obtain common objectives

    Administrative Structure in place to secure and obtain common objectives Steering Committee Special Groups Ethics and Conduct Committee Objective: To analyze and discuss Objective: To create a common specific issues with the set of values and behavior subsidiaries, strategy and M&A, through the whol

  17. Slide 17: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa Almagran offices, Medellín, Colombia 17

  18. Slide 18: Potential Growth: Real Estate

    Potential Growth: Real Estate 18

  19. Slide 19: Real Estate Business Structure

    Real Estate Business Structure 50% 50% 100% Property Business Land Bank Developer of the land bank Track Record of 12 years in Barranquilla and more 350 Assets Under Actual Appraisal hectares developed. Highest standard in Colombia Management Value US$ 1.5 Billion US $600 million 19

  20. Slide 20: Real Estate Expected Returns

    Real Estate Expected Returns Types of assets Why Grupo Argos? • Industrial properties and distribution centers. • Strong reputation and financial strength. • Office and corporate buildings . • Deep knowledge of real estate business through its • Data centers. cement subsidiary and Situm. • Retail, r

  21. Slide 21: Grupo Argos – Conconcreto

    Grupo Argos – Conconcreto Real Estate Fund In December 2014, Grupo Argos reached an agreement with Conconcreto to jointly develop their property rental strategy, through the contribution of certain assets that enable the composition of a portfolio focused on development and operation. Shared Princip

  22. Slide 22: Current and 4-year target

    Grupo Argos – Conconcreto Real Estate fund Current Breakdown by Type of Property 3% 2% GLA: 437,863 17% Comerce 40% AUM: USD 600 MM Industry Offices Self Storage Hotels 4-year target 38% Breakdown by Geography GLA: 700,000 Bogotá 20% 25% Madrid AUM: USD 1200 MM Girardota 3% Palmira 4% 4% Tenjo Saban

  23. Slide 23: Some of our properties

    Some of our properties Torre Argos Offices (Bogotá) Almagran Offices (Medellín) Viva Villavicencio (Villavicencio) Use Offices Use Offices Use Commercial GLA* 4,949 GLA* 896 GLA* 26,585 Occupation 91% Occupation 100% Occupation 97% *In square meters, represents portion owned by the Grupo Argos-Conco

  24. Slide 24: Land Bank

    Land Bank 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 coast line – Located throughout Colombia in Barranquilla and Puerto Colombia – Near Cartagena, ci

  25. Slide 25: Land development – Barranquilla

    Land development – Barranquilla 25

  26. Slide 26: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa Energy plant, Calima, Colombia 26

  27. Slide 27: Potential Growth: Ports

    Potential Growth: Ports Foreign Trade Agreement Foreign Trade Projection 6% IMF Volumes 76 129 ML ML TON TON 2013 2003 x In force 13 29 x Subscribed ML ML TON x In negociation TON 2013 2003 27

  28. Slide 28: Compas – Only Company in Colombia with diversified locations and multipurpose terminals

    Compas – Only Company in Colombia with diversified locations and multipurpose terminals. Cartagena Port Barranquilla Port Tolú Port Buenaventura Port Houston Port • 25 Hectares • 25 Hectares • Port Concession until 2021 • 11 Hectares • 22 Hectares • Port concession until Feb. • Public port since 201

  29. Slide 29: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa Eolic energy plant, Guanacaste, Costa Rica 29

  30. Slide 30: Sator

    Sator Production* In Thousands Tons 700 650 600 550 Area: 10.443 ha 500 Capacity: 1.000.000 tpa Inventory: 974 Mt 450 400 2012 2013 2014 • One underground mine (Nechí) and one open pit mine (Bijao). • Five underground mines divested during 2014. Divested mines in 2014 • El Palmar: returned to Cement

  31. Slide 31: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa El Corro dam, Panamá 31

  32. Slide 32: 80 years of profitable and continuous growth

    80 years of profitable and continuous growth 2006 Holding Structure prior to 2006 After the merger of 8 cement companies 70% Cementos Argos Merger of 8 cement companies under the name of Cementos Argos 32

  33. Slide 33: Last 10 years: Path of expansion and consolidation

    Last 10 years: Path of expansion and consolidation Energy Cement and Grupo Argos 2008 2012 Acquisition of 24% of Celsia a SPIN-OFF AND CONTRIBUTION INTO I.A. diversified company that started New a process of focalizing in energy. Minority preferred shares GRUPO ARGOS shareholders 2009  Acquisition

  34. Slide 34: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa Tocumen plant, Panamá 34

  35. Slide 35: Potential Growth: Cement

    Potential Growth: Cement Housing # people Infrastructure US housing Deficit per house Investment Prices 36% 4 Decrease 3,5 99 BL 3% 2022 GDP June May December 4ML 2020 2012 2006 2014 LATAM Per Capita Consumption Population 660 252 kg/hab 790ML 390 316 278 271 2050 267 248 245 245 229 205 205 191 227

  36. Slide 36: Cementos Argos

    Cementos Argos • Market Cap: US$ 5.8 billion * • Revenues: US$ 2.9 billion • EBITDA: US$ 534 million • Net Debt: US$ 1,7 billion • Portfolio Investment: US$ 710 million • Exports to 40 countries • ~7800 employees Colombia’s leader in Cement, Ready Mix Concrete and Aggregates since 1934 Cement produc

  37. Slide 37: Cementos Argos

    Cementos Argos 13 Colombia . United States. Cement Plants Cement Cement • Second largest producer of the • ~49% Market share 390 • Installed Capacity: 9.9 mm TPA Southeast Ready mix plants • Installed Capacity : 6.6mm TPA • Plants: 9 • Plants: 3 • Grinding Stations: 1 • Grinding Stations: 3 9 • Port

  38. Slide 38: Cementos Argos – Results

    Cementos Argos – Results Consolidated revenues US$ millions Consolidated EBITDA US$ millions 3.500 18% 16% 19% 18% 19% 18% 20% 18% 3.000 2908 600 2.656 524 534 2.437 2.500 440 450 1.955 1.983 369 2.000 1.824 329 303 304 1.602 1.594 284 300 1.500 1.000 150 500 - 2007 2008 2009 2010 2011 2012 2013 201

  39. Slide 39: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa CTC coal energy plant, Panamá 39

  40. Slide 40: Potential Growth: Energy

    Potential Growth: Energy Per Capita KWH 40

  41. Slide 41: Celsia

    Celsia • Revenues: US$1,1 billion * • EBITDA : US$374 million • Net Debt: US$367 million • Market Cap.: US$1.8 billion • 1.000 employees Power generator in Thermal power 4º Colombia 2º generator Energy distributor in 5º Colombia Energy plant, Barranquilla, Colombia * As of December 2014 41

  42. Slide 42: Celsia – Geographic Coverage

    Celsia – Geographic Coverage Power generation . Transmission . • 2,332 MW installed capacity • 274 km 220 kV power lines 610 MW • 26 plants in operation • Seven 220 kV substations • 49% hydro, 49% thermo and 50 MW 2% Eolic 485 MW • 9,645 GWh-year (10% of Colombia in 2013) 40 MW 167 MW • 487MW (+28%)

  43. Slide 43: Celsia – Results

    Celsia – Geographic Coverage Consolidated revenues US$ millones Consolidated EBITDA US$ millones 1.400 1.294 1.276 37% 39% 40% 36% 1.200 600 32% 35% 1.024 26% 1.001 1.000 916 500 463 447 414 386 800 400 343 600 300 400 200 265 259 100 69 82 200 - - 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2

  44. Slide 44: Table of contents

    Table of contents 1. Grupo Argos 2. Investments  Real Estate  Compas  Sator 3. Annexes  Grupo Argos History  Argos  Celsia  Overview of Portfolio Companies • Grupo Sura • Grupo Nutresa Alto Achicayá dam, Colombia 44

  45. Slide 45: Grupo Sura

    Grupo Sura Sura Asset Management US$ 9.7 Market Cap billion Grupo Bancolombia Protección US$ Revenues 346 million US$ 281 Net Income million Grupo Sura: Investments in the financial, insurance and social security sectors. * Figures as of December 2014 45

  46. Slide 46: Grupo Nutresa

    Grupo Nutresa US$ 5.5 Market Cap billion US$ Revenues 2.9 billion US$ Ebitda 394 million < Malaysia Nutresa: Colombia’s leading processed food company and one of the top ten regional players in the Latin American food sector. Products sold in 72 countries 46

  47. Slide 47: Thanks

    Thanks a! wu 4 GRUPO ARGOS

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