Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2021 Earnings Presentation
40 slides from Grupo Argos's earnings presentation, Feb 1, 2022
Slide 1: Fourth Quarter 2021 Results Presentation
QUARTERLY RESULTS PRESENTATION Four th Quar ter 2021 Results Presentation February 2022 1 February 2022 Cementos Argos Cartagena Port
Slide 2: Disclaimer
Resultados QUARTERLYPrimer RESULTS Trimestre PRESENTATION 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 forecasts, circ
Slide 3: Cumulative results for the year show strong operational leverage
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Cumulative results for the year show strong operational leverage Revenue1 EBITDA1 Net Income1 Net Income Cont.1 Figures in COP trillion +17% +29% +498% +1,273% 16.3 4.4 0.8 1.4 0.7 13.9 0.7 3.4 0.6 0.5 0.4 0.3 0.2 0.2 0.1 -0.1 0.0 2020 2021 2
Slide 4: Operating Results – Grupo Argos Businesses
QUARTERLY RESULTS PRESENTATION Operating Results – Grupo Argos Businesses 4 February 2022
Slide 5: CemArgos: Strong operating performance across all company regions
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 CemArgos: Strong operating performance across all company regions Historical record for annual EBITDA (COP 2.2 trillion in 2021)1 • Adjusted EBITDA for the year is the highest figure in the company's entire history and the adjusted EBITDA mar
Slide 6: 2021 ends with the highest EBITDA in history
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 2021 ends with the highest EBITDA in history and the highest EBITDA margin since 2005 (annual) Operational Revenue COP bn EBITDA1 COP bn 4Q2021 vs 4Q2020 +9% 4Q2021 vs 4Q2020 21% Cement Cemento Volumen volumes (YOY)1 (YOY)1 2.50 4Q2021 vs 1 5
Slide 7: Celsia: The company ends 2021 with a record EBITDA
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Celsia: The company ends 2021 with a record EBITDA of COP 1.4 billion EBITDA closes at COP 1.4 trillion (+11% YOY) for 2021 • Highest figure in the company's history • EBITDA grows to COP 1.5 trillion after incorporating the EBITDA generated
Slide 8: Increased generation and sales support financial growth in the quarter
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Increased generation and sales support financial growth in the quarter Operational Revenue1 COP bn EBITDA1 COP bn 4Q2021 vs 4Q2020 +34% 4Q2021 vs 4Q2020 +20% Generation(ex. Generación (ex.ZF) ZF) Commercialization Comercialización (YOY)1 (YOY
Slide 9: Odinsa: Accelerated growth in airport and road traffic
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Odinsa: Crecimiento acelerado del tráfico aeroportuario y del tráfico vial Opain moved over 3 million passengers in December • This is the highest traffic recorded by the airport since the start of the pandemic and is close to the average mon
Slide 10: Divestment in highway concessions in the Dominican Republic for an IRR of 19%
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Divestment in highway concessions in the Dominican Republic (ADN and BTA) for an IRR of 19% Strategic Sale Rationale Economic Result of the Sale Figures in millions of USD IRR: 19% nominal USD 319 01 Low investment scalability • No PPP invest
Slide 11: Airport traffic for December was 3.3 mn PAX and highway TPD was 133 thousand
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Airport traffic for December was 3.3 mn PAX and highway TPD was 133 thousand at the end of the quarter Operational Revenue1 COP bn EBITDA1 COP bn 4Q2021 vs 4Q2020 +26% 4Q2021 vs 4Q2020 +188% Carreteras (TPD) Highways (TPD) Aeropuertos (PAX) A
Slide 12: Real Estate: National VIS demand drives the commercial strategy at Mallorquín
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Real Estate: National VIS demand drives the commercial strategy at Mallorquín with excess demand Real Estate Business Pactia COP bn Cash flow 2021 2020 Var (%) 2.5 2.3 2.4 Revenue 161 71 127% Net cash flow 80 14 486% 2.0 2.1 12,263 • Net cash
Slide 13: 63% YOY EBITDA growth for the quarter, ending with a 47% margin
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 63% YOY EBITDA growth for the quarter, ending with a 47% margin EBITDA Distribution (Cumulative) COP bn Main Figures COP bn 9 163 3 PACTIA FCP -3 46 COP bn 4Q2021 4Q2020 Var.(%) Dec-21 Dec-20 Var.(%) Revenue 108 74 45% 357 282 26% Operating C
Slide 14: Consolidated and separate financial results
QUARTERLY RESULTS PRESENTATION Consolidated and separate financial results 14 February 2022
Slide 15: Proforma EBITDA closes at COP 4.4 trillion, 29% higher than 2020
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Proforma EBITDA closes at COP 4.4 trillion, 29% higher than 2020 and 11% than 2019 Summary P&L Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 4Q - 2021 4Q - 2020 Var.(%) Dec-21 Dec-20 Var.(%) Dec-19 Var.
Slide 16: 24% revenue growth and 0% EBITDA growth due to improved operating leverage
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2021 24% revenue growth (YOY) and 40% EBITDA growth (YOY) due to improved operating leverage Consolidated Revenue 4Q2021 (Proforma) COP bn Consolidated EBITDA 4Q2021 (Proforma) COP bn 1,211 1,300 5,000 140 118 10 4,428 4,500 148 9 -3
Slide 17: Commitment to maintaining efficiencies and austerity policy on structural expenses
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2021 Commitment to maintaining efficiencies and austerity policy regarding structural expenses Consolidated Expenditure1 Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +6%1 +5% +3%1 +11%1 OPAIN 88 90 509 252
Slide 18: Financial discipline and cash generation enable reduced indebtedness
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 4Q2021 Financial discipline and cash generation enable reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16,737 16,349 328 993 15,436 14,891 21 1,594 1,475 -1,381 1,569 1,459 65 241 4,494 4,195
Slide 19: Pro forma EBITDA for 2021 is 4.9 times that of 2020
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 Pro forma EBITDA for 2021 is +4.9 times that of 2020 and +2.0 times that of 2019 Summary P&L Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 4Q - 2021 4Q - 2020 Var.(%) Dec-21 Dec-20 Var.(%) Jun-19 Var.(%) Re
Slide 20: The greatest increase in revenue contribution came from the cement business
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 The greatest increase in revenue contribution came from the cement business (+ COP 53 bn YOY) Revenue distribution 4Q2021 COP bn Controllable Expenses 4Q2021 COP bn % Variation (YOY) 35 40 +16% +999000% +24% +101% +1545% +111% -45% +
Slide 21: Ongoing search for efficiency in expenditures at Grupo Argos and Real Estate
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 Ongoing search for efficiency in expenditures at Grupo Argos and the Real Estate Business (NDU) Expenses at Grupo Argos COP bn Expenses at the Real Estate Business (NDU) COP bn Detailed Expenses for the Real Estate Business ▪ Propert
Slide 22: Normalization of minimum cash strategy
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Normalization of minimum cash strategy Cash flow COP bn Notes 1 Net dividends Dividendos netos 214 1. Dividends received: COP 472 bn, dividends paid: COP 258 billion 2 NDU Revenue Ingresos NDU 161 2. Urbanized lots: COP 153 bn , in divestment
Slide 23: Cost of debt increases less than inflation thanks to Treasury strategies
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 4Q2021 Cost of debt increases less than inflation thanks to Treasury strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life 6% 0% 16% 24% 7% 9% 0% 26% 0% 11% 27% 36% 38% Bancos Bonds 14.0% 12.0% Banks B
Slide 24: Recognition for good ESG practices
QUARTERLY RESULTS PRESENTATION SUSTAINABILITY Recognition for good ESG practices WE RANKED ON THE DJSI INDEX : OTHER ACKNOWLEDGEMENTS: • 1st place worldwide. • Highlighted on the Bloomberg Gender Equity Index. Only three Colombian companies included. • We were ranked on the Global Index, the Emergin
Slide 25: Climate Change Strategy
QUARTERLY RESULTS PRESENTATION SUSTAINABILITY Climate Change Strategy WE ARE COMMITTED TO REDUCE THE EMISSIONS OF THE GRUPO: Goal 2030: Goal 2030: Reduce direct and Reduce direct and indirect CO2e indirect CO2e emissions intensity emissions. per million COP in revenue. 2021 Progress - 23% of CO2e T
Slide 26: Results Guidance 2022
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Results Guidance 2022 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 Grupo Argos’ Consolidated Results Guidance for 2022 (operational guidance excludes the effect of non recu
Slide 27: Annexes
QUARTERLY RESULTS PRESENTATION Annexes 27 February 2022
Slide 28: Attractive valuation potential according to current arbitrage prices
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 4Q2021 Attractive valuation potential according to current arbitrage prices Grupo Argos Arbitrage Price1 (22/02/2022) COP / Share Historical Arbitrage Gap1 (Relative Prices) +38% (Ord stock) 120 Lockdown begins (Mar – 2020) +41% (Ord stock) +90% (Pf
Slide 29: Cement Business
QUARTERLY RESULTS PRESENTATION Cement Business 29 February 2022
Slide 30: Cement volume closes the quarter with 4.2 mm ton and 6% YOY growth
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 4Q2021 Cement volume closes the quarter with 4.2 mm ton and 6% YOY growth Cement Volumes* millions of tons Concrete Volumes* millions of m3 USA COL C y CA USA COL C y CA 0.1 4.2 4.0 0.1 1.9 0.0 1.9 0.0 0.1 -0.0 0.0 1.4 1.2 0.5 -0.2 0.6 Proforma (ex. Dal
Slide 31: Business dynamics enables EBITDA growth despite input and freight inflation
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 4Q2021 Business dynamics enables EBITDA growth even with a global inflation in input and freight prices Revenue COP bn Ebitda COP bn Net profit to the controlling share COP bn 13 11 542 112 65 0 2,537 157 2,322 62 1 -13 89 447 Proforma1 +21% +9% +45% +1
Slide 32: Energy Business
QUARTERLY RESULTS PRESENTATION Energy Business 32 February 2022
Slide 33: Energy generation grows due to greater hydro generation and renewables
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 4Q2021 Energy generation grows due to greater hydro generation and growth in non-conventional renewables Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regulado Regulated 5 933 418 11 1,614 876 53 467
Slide 34: Revenue, EBITDA and Net Income grow by double digits at Celsia
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 4Q2021 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 1,213 71 402 278 37 133 336 -5 47 117 898 52 97 Proforma1 Proforma1 +34% +20% 56 1,079 355 284 801
Slide 35: Concessions Business
QUARTERLY RESULTS PRESENTATION Concessions Business 35 February 2022
Slide 36: 3.3 million PAX moved through airports in December
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 4Q2021 3.3 million PAX moved through airports in December, equivalent to 92% of the figure for Dec-19 Average daily vehicles Thousands of vehicles Airport traffic Millions of passengers (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 12.8 132.6 3.3 -0.
Slide 37: Growing results thanks to highway consolidation and airport recovery
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 4Q2021 Growing results thanks to highway consolidation and airport recovery Revenue (proforma) COP bn Ebitda (proforma) COP bn Net income controlling interest (Proforma) COP bn 31 256 31 83 13 -2 15 26 -16 193 204 219 -67 -28 Proforma1 +568% 76 Pro
Slide 38: Opain ends December with 3 million PAX mobilized
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS - OPAIN 4Q2021 Opain ends the month of December with 3 million PAX mobilized, only 5% less than December 2019 Passengers Millions of passengers (PAX) 3.1 Doméstico Domestic Internacional International 3.0 2.8 2.7 2.1 2.1 2.0 2.2 1.6 1.8 1.4 1.3 1.4
Slide 39: CEO, CFO, IR contacts
QUARTERLY RESULTS PRESENTATION CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejia Tel: (574) 319 8712 Tel: (574) 315 8400 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com 39 February 2022
Slide 40: QUARTERLY RESULTS PRESENTATION February 2022
QUARTERLY RESULTS PRESENTATION 40 February 2022