Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (May 2024)
41 slides from Grupo Argos's investor presentation, May 2024
Slide 1: Corporate Presentation May 2024
Corporate Presentation Corporate Presentation May 2024 1 May 2024
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: Overview of Grupo Argos
Corporate Presentation Overview of Grupo Argos Grupo Argos – Established footprint in the region with a robust portfolio focused on infrastructure Business highlights Company snapshot – 2023 Cement • 7 cement plants with an installed capacity of 14 million tons in Colombia, business line 11.500 Cent
Slide 4: Strategy
Corporate Presentation Strategy Cemento Infra Portafolio 4 May 2024
Slide 5: Key milestones (1/2)
Corporate Presentation Strategy Targeted M&A activity, coupled with deep know-how optimizing existing assets… Cement Infra Portfolio A Cement and energy businesses consolidation B Portfolio optimization towards key business lines and strategic assets (1/2) 2006 - 2008 2009 - 2011 2012 2014 - 2015 Ce
Slide 6: Key milestones (2/2)
Corporate Presentation Strategy … has proven to be a differentiated factor generating attractive returns … Cement Infra Portfolio B Portfolio optimization towards key business lines and strategic assets (2/2) C Creation of strategic partnerships and focus on capital optimization 2016 2017 - 2018 201
Slide 7: Unrivaled track record with ample asset management capabilities
Corporate Presentation Strategy … resulting in unrivaled track record with ample asset management capabilities Cement Infra Portfolio Key strengths highlighting Grupo Argos positioning 1 2 3 4 5 6 Deep sector and Unique sourcing Strong value creation Asset optimization and Brand reputation with Team
Slide 8: Successful closing of the combination of Argos USA with Summit Materials
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Successful closing of the combination of Argos USA with Summit Materials Combination with Summit Materials 1. Market capitalization +200% (COP 7.2 tn) since the announcement 2. Profit of COP 5.3 trillion upon transaction closing (Summit Materials + A
Slide 9: Market cap of the group's companies has increased by COP 15 tn
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 The market cap of the corporate group’s companies has increased by COP 15 tn over the last 12 months 350% Price per share variation (last 12 months) Px/sh 300% 9/05/2024 7,110 8,420 11.920 16.240 4.205 Px/sh 9/05/2023 2,240 3,050 5.305 8.700 2.700 25
Slide 10: Simplification of structure in infrastructure asset management and NYSE listing
Corporate Presentation Strategy Simplification of structure in the infrastructure asset management business model and listing in the NYSE 2 Cement Alternative Asset Manager → Infrastructure Portfolio 1 31% stake in Energy Argos Energy Energy Toll Road Airport Summit Transmission Real Estate ▪ Grupo
Slide 11: Not all assets in our Portfolio consolidate line by line
Corporate Presentation Not all assets in our Portfolio1 consolidate line by line our Consolidated Financial Statements Cement Energy Concessions Real Estate Portfolio 31% of Real Argos Energy Asset Tollroads Airport • SP Summit Pactia Estate Grupo Sura COL & CCA Services Management Concessions2 Conc
Slide 12: Relevant changes in Consolidated Financial Statements from 2023 to 2024
Corporate Presentation Relevant changes in Grupo Argos' Consolidated Financial Statements from 2023 to 2024 *Only the Green Corridor 2023 2024 concession (Aruba) consolidates line by line Equity method Summit Materials (formerly Argos USA) Consolidation - Restatement of 2023 Financial Statements Arg
Slide 13: Cement Business
Corporate Presentation Cemento Infra Portafolio Cement Business 13 May 2024
Slide 14: Main Figures of the Cement Business
Corporate Presentation Cement Business Main Figures of the Cement Business Cemento Infra Portafolio Argos LATAM Operations 2023 Revenue* 2023 EBITDA* 1.23bn USD 255m USD 7.5bn USD Market Cap 921m USD 44% 42% 31% ownership Pro-forma EBITDA 2023 56% 58% 4th Largest cement player in US 6th Largest aggr
Slide 15: CemArgos: EBITDA Margin reaches 22%
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 CemArgos: EBIDTA Margin reaches 22% Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 1Q2024 vs 1Q2023 -6% 1Q2024 vs 1Q2023 +2% 4.000 Cemento RMC 2.000 (YOY) (YOY) 1.800 EBITDA grows +24% (YOY) 3.500 1.402 1.360 measured in USD (CCA fun
Slide 16: Infrastructure Business
Corporate Presentation Cemento Infra Portafolio Infraestructure Business 16 May 2024
Slide 17: Creation of platforms by asset type
Corporate Presentation Infrastructure Business Creation of platforms by asset type Cement Infra Portfolio Professional manager with proven experience operating infrastructure platforms in the region Infrastructure Asset Management Energy Energy Transmission Energy Toll Road Airport Real Estate Gener
Slide 18: Consolidation and Operational Performance of Investment Platforms
Corporate Presentation Consolidation and Operational Performance of Investment Platforms Cement Infra Portfolio Energy Concessions Caoba C2 Energía Tesorito Laurel Roadways Airports • Thermal Gen. Platform • Solar platform < 8 MW • Partner: Macquarie Asset • Partner: Macquarie Asset • Tx and Dx Plat
Slide 19: Celsia – Two businesses, one Company
Corporate Presentation Energy Business Celsia – Two business, one Company Cemento Infra Portafolio Electric Utilities Asset Management 1.486 MW 1.3 M USD 138,3 M USD 734,2 M Installed Capacity Clients (Homes and Businesses) Ebitda Platforms 2023 AUM Celsia Celsia C2 Energía Laurel Tesorito Caoba Sol
Slide 20: Celsia: Platform EBITDA decreases 20%
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Celsia: Platform EBITDA decreases 20%, adjusted for divestments in Central America Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 1Q2024 vs 1Q2023 -3%* 1Q2024 vs 1Q2023 -20%* Generación Comercialización (YOY) (YOY) Platform EBITDA* 2
Slide 21: Odinsa Toll Roads
Corporate Presentation Odinsa Toll Roads Cement Infra Portfolio Odinsa Vïas 59.7% 78.9% 52.6% 92% 100% Concession 1997-2027 2014-2043(1) 1997-2039(1) 2015-2045 2013-2035 Period DAT 2023 35,9k 7,2K 37,8K(2) 24K N/A Lenght 256km 136km 64km 267km 34km 2023a COP99bn COP302bn COP195bn COP16bn COP19k EBIT
Slide 22: Odinsa Airports
Corporate Presentation Odinsa Airports Cement Infra Portfolio Odinsa Airports 46,5% 65% Mariscal Sucre El Dorado 2013-2041 2007-2029(1) Concession Period ( Concession Fee 11,17%(2) 46,16%(3) 5,4 40,5 2023a PAX Millones Millones 2023a COP602bn COP556bn EBITDA(4) [US$150m] [US$139m] Notss: US$1 = COP4
Slide 23: Robust Pipeline of Private Initiatives in Colombia
Corporate Presentation Robust Pipeline of Private Initiatives in Colombia with more USD 6,0 bn Cement Infra Portfolio IP Nuevo Aeropuerto de IP Bogotá El Dorado Max IP Campo de Vuelo Fase II Túnel de Oriente IP Conexión Centro IP Perimetral de la Sabana Cartagena Expansion project to maximize Projec
Slide 24: Odinsa: TPD and EBITDA remain stable year-over-year
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Odinsa: TPD and EBITDA remain stable year-over-year Cement Infra Portfolio Quarterly Results IRR (E) -1% +23% +3% +52% 108 107 317 160 165 60 11% 257 40 22% 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 TPD (miles) Ingresos (COP k mm) EBITD
Slide 25: Odinsa: airport traffic grows YOY
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Odinsa: airport traffic grows 16% YOY Cement Infra Portfolio Quarterly Results (in USD) IRR (E) +20% +22% +11% +26% 13 74 167 66 29 10 137 23 17% 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 PAX (mm) Ingresos (USD mm) EBITDA (USD mm) Ut. N
Slide 26: Pactia: EBITDA grows 10% with stable GLA
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Pactia: EBITDA grows 10% with stable GLA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 1.400 1Q2024 vs 1Q2023 +10% 1Q2024 vs 1Q2023 +10% (YOY) (YOY) 1.200 121 113 116 67 110 111 1.000 61 59 60 60 812 GLA ('000) 800 600 0% 400 20
Slide 27: Other investments
Corporate Presentation Cemento Infra Portafolio Other investments 27 May 2024
Slide 28: NDU land portfolio in Colombia
Santa Marta NDU oversees a U$600 million land portfolio located throughout Colombia. Ciénaga Barranquilla, Pto. Colombia Cartagena Tubará Juan de Acosta Portfolio Composition Tamalameque The land portfolio includes different types of land such as: urban, suburban, rural, protection and port land. Al
Slide 29: Development Strategy
NDU´s main development activity is concentrated in Cartagena (Barú) and Barranquilla. Development Strategy Barranquilla, Our masterplans establish roads and public zones, allocate areas for urban facilities and zones Pto. Colombia of environmental relevance, define private lots for real estate devel
Slide 30: NDU's strategy is to divest land as quickly as possible
The NDU's strategy is to divest land as quickly as possible in a prudent and sustainable manner. NDU´s Strategy: Foundational Concepts • NDU´s cost of capital exceeds the expected annual appreciation of the land minus operating expenses. Time value of money is critical. • Demand for built real estat
Slide 31: Corporate Governance: Board of Directors
Corporate Presentation Board of Directors Corporate Governance Board of Directos Rosario Jorge Ana Cristina Jaime Palacio Claudia Juana Francisca Ricardo Córdoba Uribe Arango Indepenent Betancourt Llano Jaramillo Independent Independent Independent Non-independent Non-independent Non-independent (Pr
Slide 32: 12 years among the most sustainable companies according to S&P
Inducción Sostenibilidad 12 years among the most sustainable companies in the world according to S&P "Grupo Argos and Cementos 1st 2nd 3rd Argos were recognized in the Dow Jones Sustainability Index as global leaders for their best practices in economic, social, environmental, and corporate governan
Slide 33: Effort to reduce leverage while increasing sustainable financing
Inducción Sostenibilidad Effort to reduce leverage while increasing the weight of sustainable financing– COP billions Deuda convencional ESG % 1% 16% 21% 26% 15,4 14,9 14 13,5 2,6 3,4 3,6 15,3 12,3 10,6 10,8 2020 2021 2022 2023 ✓ In Grupo Argos, the annual savings are 0.25% annually, this means 1% e
Slide 34: Argos USA project receives grant from US Department of Energy
Inducción Sostenibilidad Project from Argos USA receives grant from de Department of Energy of USA • The United States Department of Energy released the list of high-impact projects aimed at reducing CO2 emissions, with initiatives totaling more than USD 20 billion, as part of its commitment to find
Slide 35: Financial Results
Corporate Presentation Financial Results Cemento Infra Portafolio 35 May 2024
Slide 36: Revenue & EBITDA grow
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Revenue & EBITDA grow 21% and 90% respectively Inc. Net income Revenue EBITDA Net Income controlling interest Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +32% +21% +90% +14% +13% +1,041% +833% 3.791 6.509 4,5 2,4 3,8 1,2 5
Slide 37: Separated net income reaches COP 2.6 trillion
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Separated net income reaches COP 2.6 trillion Revenue EBITDA Net Income Figures in COP bn Figures in COP bn Figures in COP bn +593% +32% +730% +14% +13% +644% 2.973 2.575 2.937 429 354 346 4T2022 Mar23 4T2023 Mar24 4T2022 4T2023 4T2022 4T2023 Mar23 M
Slide 38: Sound equity structure supported by a AAA rating
Corporate Presentation GRUPO ARGOS RESULTS 1Q2024 Grupo Argos sound equity structure supported by a AAA rating Gross Debt Consolidated COP bn Consolidated Net Debt1 COP bn Net financial expenses COP bn 13.129 395 1.194 15.326 1.653 316 11.846 5.436 7.646 222 1.628 5.696 789 167 -23% 5.272 -42% 4.704
Slide 39: The cost of Grupo Argos' separate debt stands at 8.7%
Corporate Presentation The cost of Grupo Argos' separate debt stands at 8.7% Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Net Debt = 0.789 tn (-34% YOY) 0% 0% 21% 32% 0% 33% 0% 14% 5,5 16,6% 16,3% 5,3 5,2 5,0 15,7% 15,5% 4,5 14,7% 13,5% 4,3 13% 34% of guaranteed
Slide 40: www.grupoargos.com
Corporate Presentation CEO CFO Jorge Mario Velasquez Alejandro Piedrahita Chief Officer for Corporate IR Director Affairs Carolina Arango Juan Esteban Mejia 315 8400 (574) 315 8400 carangoz@grupoargos.com jemejia@grupoargos.com www.grupoargos.com 40 May 2024
Slide 41: Corporate Presentation May 2024
Corporate Presentation 41 May 2024