Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2022 Earnings Presentation
41 slides from Grupo Argos's earnings presentation, Mar 1, 2023
Slide 1: Results Presentation Fourth Quarter
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Results Presentation Fourth Quarter March 2023 1 march 2023
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: Solid operating growth translated into COP 881 bn of Net Income to the Controlling Interest
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2021 Solid operating growth translated into COP 881 bn of Net Income to the Controlling Interest (+49% YOY) Revenue EBITDA Net Income Net Inc. Controlling Interest Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +3
Slide 4: Comprehensive plan to close the gap between market price and fundamental value
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2021 Comprehensive plan to close the gap between the market price and the fundamental value Cement Infra Portfolio 1 2 Decoupling between equity value and market value Decoupling between operating results and market value 21 6 20 5,2 18 1
Slide 5: Comprehensive plan to close the gap between market price and fundamental value
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Comprehensive plan to close the gap between the market price and the fundamental value Cement Infra Portfolio Deleveraging + 15% 1. More than COP 3.0 tn last 3 years Strategic value catalysts Increased dividend per 1. Grupo Argos Inf
Slide 6: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 6 march 2023
Slide 7: CemArgos: SPRINT Program Launched
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 CemArgos: SPRINT Program Launched Cement Infra Portfolio Historic results and corporate deleveraging • Pricing strategy accompanied by an appreciation of the USD boosted the quarter's results • Revenue was COP 11.7 trillion and EBITD
Slide 8: CemArgos: 24% year over year growth in revenue and 11% in EBITDA
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 CemArgos: 24% year over year growth in revenue and 11% in EBITDA Cement Infra Portfolio Operational 1 Revenue2 COP bn EBITDA2 COP bn 4Q2022 vs 4Q2021 +24% 4Q2022 vs 4Q2021 +11% (YOY) (YOY) 3.118 3.138 Cemento RMC 2.851 583 601 2.537
Slide 9: Celsia: Operational excellence and market conditions fostered extraordinary results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Celsia: Operational excellence and market conditions fostered extraordinary results Cement Infra Portfolio A year of historic results for the energy business • COP 5.6 trillion in revenue for the year, 36% growth compared to 2021 • E
Slide 10: Celsia: Company revenue grew 46% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Celsia: Company revenue grew 46% YOY Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn 4Q2022 vs 4Q2021 +46% 4Q2022 vs 4Q2021 +10% Generación Comercialización (YOY)1 (YOY)1 2.000 +0% 2.000 2 455 449 444 1.620 1.645 1.
Slide 11: Odinsa: solid results as an asset manager focused in transportation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Odinsa: solid results as an asset manager focused in transportation Cement Infra Portfolio Outstanding operating results • 3.7 million PAX were mobilized through airports, growing 27% compared to • TPD on the roadway vertical was 113
Slide 12: Odinsa: Accounting process before and after the roadway and airport vertical
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Odinsa: Accounting process before and after the roadway and airport vertical Cement Infra Portfolio Before conclusion of the vertical After conclusion of the vertical Odinsa 50% Odinsa roadways roadways 50% 100% Subsidiaries Associat
Slide 13: Odinsa: solid profitability of the roadway platform
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Odinsa: solid profitability of the roadway platform Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles IRR (E) +12% -8% -6% +7% Malla Vial del Meta 11% 43,7 40,3 40,9 36,1 22% Autopistas del Café 23,2 24,8 22%
Slide 14: Odinsa: Roadway platform operating metrics continue to improve
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Odinsa: Roadway platform operating metrics continue to improve Cement Infra Portfolio Passengers - Millions IRR (E) 17% vs 13% 9,8 4Q 2022 4Q 2021 7,9 11% vs 10.0% 4Q 2022 4Q 2021 0,8 1,2 OPAIN Quiport 4Q2021 4Q2022 • Increased profi
Slide 15: Pactia: Revenue and EBITDA remain stable with a slight reduction in GLA
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Pactia: Revenue and EBITDA remain stable with a slight reduction in GLA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 4Q2022 vs 4Q2021 +1% 4Q2022 vs 4Q2021 +2% (YOY) (YOY) 1.400 108 109 53 52 52 103 51 98 1.200
Slide 16: Real Estate Business: Cash flow generation of COP 99 billions in 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Real Estate Business: Cash flow generation of COP 99 billions in 2022 Cement Infra Portfolio Urban Development in Barranquilla • Net cash flow grew 29% YOY (to COP 99 bn) due to pledges signed for Ciudad Mallorquín stage 4 • Transfer
Slide 17: Consolidated and separated financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Consolidated and separated financial results 17 march 2023
Slide 18: Proforma EBITDA was COP 5.2 trillion, 20% higher than the previous year
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Proforma EBITDA was COP 5.2 trillion, 20% higher than the previous year Summary P&L Quarterly Results Cumulative Results for the Year COP bn 4Q - 2022 4Q - 2021 Var.(%) Dec-22 Dec-21 Var.(%) Revenue 5,740 4,434 29% 21,340 16,309 31%
Slide 19: 29% revenue growth (YOY) and 9% EBITDA growth (YOY)
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 29% revenue growth (YOY) and 9% EBITDA growth (YOY) Proforma consolidated revenue COP bn Proforma consolidated EBITDA COP bn 1.500 3 5.720 35 88 1.324 6.000 579 5 47 27 78 23 1.300 1.211 -0 570 5.000 -48 4.428 1.100 4.000 900 3.000 7
Slide 20: Increased expenditure associated with improved operational dynamics and effects of inflation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +16% +15% +25% = 113 Odinsa OPAIN 593 291
Slide 21: Financial discipline, cash flow generation and divestments result in reduced indebtedness
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Financial discipline, cash flow generation and divestments result in reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16.349 16.464 15.013 449 1.121 14.035 1.475 1.380 1.459 27 -1.006 1.128
Slide 22: Separated EBITDA grows 13% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Separated EBITDA grows 13% YOY Summary P&L Quarterly Results Cumulative Results for the Year COP bn 4Q - 2022 4Q - 2021 Var.(%) Dec-22 Dec-21 Var.(%) Revenue 156 73 113% 779 653 19% Costs and other expenditures 58 34 71% 126 114 11%
Slide 23: Separated revenue was COP 156 billion during 4Q2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Separated revenue was COP 156 billion during 4Q2022 Revenue distribution 4Q2022 COP bn % Variation (YOY) +79% -100% -49% -116% +130% -40% +113% +999000% +499000% -1000% 156 -10 7 33 28 99 Real Estate Negocio Business Inmobiliario Fin
Slide 24: We closed the year with a flexible cash position of COP 252 billion
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Available: we closed the year with a flexible cash position of COP 252 billion Cash flow Notes COP million COP million 1 Dividendos netos 510.287 1. Div. received: 826,107 (Odinsa: 360,957). Div. Paid: 325,820 Ingresos NDU 223.920 2.
Slide 25: Cost of debt increases less than inflation thanks to hedging strategies
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 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 0% 17% 26% 7% 10% 0% 28% 0% 12% 5,5 5,5 5,6 5… 5,2 0,19 5,3 6,0 5,0 0,17 15,5%
Slide 26: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 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 27: Grupo Argos included in Top 10 of MERCO Empresas and Bloomberg's Equality Index
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Grupo Argos was included in the Top 10 of MERCO Empresas and highlighted on Bloomberg’s Equality Index MERCO Bloomberg Gender Equality Index Sector Ranking Ranked 1st in business Second consecutive year among the best conglomerates p
Slide 28: 2022 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 2022 Results Guidance 21.3 5.2 1.4 COP trillion COP trillion COP trillion 17.0 – 17.5 4.4 - 4.6 1.2 - 1.3 COP trillion COP trillion COP trillion Revenue 2022e EBITDA 2022e Net Income 2022e We surpassed the guidance for Grupo Argos co
Slide 29: 2023 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 2023 Results Guidance 22.0 - 22.5 5.2 - 5.5 COP trillion COP trillion Revenue 2023e EBITDA 2023e Guidance for 2023 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions) 29 march 2023
Slide 30: Annexes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 30 march 2023
Slide 31: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 31 march 2023
Slide 32: Cement volumes end the quarter at 3.9 million tons shipped
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Cement volumes end the quarter at 3.9 million tons shipped Cement Volumes millions of tons Concrete Volumes millions of m3 USA COL C y CA 1,9 1 USA COL C y CA 0,0 0,07 0,02 1,8 4,20 0,03 0,11 0,19 0,1 3,86 0,21 0,6 1,1 0,9 0,7 1,6 1,
Slide 33: Cost inflation affected margins even with 24% revenue growth
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Cost inflation affected margins for the period even with 24% revenue growth Revenue COP bn Ebitda COP bn Net profit to the controlling COP bn interest 3.138 112 45 129 10 601 427 -0 542 36 39 2.537 -26 57 +24% +11% -49% 4Q - 4Q USA C
Slide 34: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 34 march 2023
Slide 35: Cumulative generation for the year grows 11% compared to 2021
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Cumulative generation for the year grows 11% compared to 2021 Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regulado Regulated 933 2 920 109 1.620 1.620 2.053 -15 -109 1.922 128 2
Slide 36: Revenue and EBITDA grow by double digits at Celsia
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Revenue and EBITDA grow by double digits at Celsia Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 65 11 1.767 444 543 145 402 -24 23 117 47 1.213 133 1.622 421 355 1.079 +46% +10% 4Q - 2021 4Q - 2
Slide 37: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 37 march 2023
Slide 38: Airport traffic in December 2022 was higher than in December 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Airport traffic in December 2022 was higher than in December 2019 Thousands of Millions of passengers Average daily vehicles Airport traffic vehicles (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 4,2 132,6 1,6 11,0 5,7 -2,8 -0,6 0,4 16
Slide 39: Opain had mobilized 3.4 million PAX at the end of December
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 4Q2022 Opain had mobilized 3.4 million PAX at the end of December, +8% compared to December 2019 Passengers Millions of passengers (PAX) Doméstico Internacional 3,2 3,2 3,1 3,2 3,2 3,4 3,1 2,8 2,7 3,0 2,6 2,4 2,9 3,0 3,0 3,1 2,2 1,6 1,8 2,1
Slide 40: Contact
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Senior Lead Juan Esteban Mejia Carolina Arango David González (574) 315 8400 315 8400 315 8400 jemejia@grupoargos.com carangoz@grupoargos.com dgonzalez@grupoargos.com wwwˌgrupoargosˌcom
Slide 41: PRESENTACIÓN DE RESULTADOS TRIMESTRALES march 2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 41 march 2023