Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q3 2020 Earnings Presentation
36 slides from Grupo Argos's earnings presentation, November 2020
Slide 1: Results Presentation Third Quarter 2020
Results Presentation THIRD QUARTER 2020 November 2020
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: Situation management and business continuity plan
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Situation management and business continuity plan 3 November 2020
Slide 4: Keeping our commitment to the priorities defined at the beginning of the situation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES BUSINESS CONTINUITY Keeping our commitment to the priorities defined at the beginning of the situation Life, health and wellbeing → our number one priorty • Over 10,000 tests, equivalent to over 73% of the population. New work realities as competitive leverage
Slide 5: The emergency plan has been fully executed as of September
PRESENTACIÓN DE RESULTADOS TRIMESTRALES BUSINESS CONTINUITY The emergency plan has been fully executed as of September guaranteeing the flexibility required CAPEX $ 415 $ 868 1 (Uses – billions) $ 293 $ 160 (100%*) OPEX $ 45 $ 324 $ 119 $ 20 $ 508 (101%*) 2 (Uses – billions) Liquidity loans 3 (Sourc
Slide 6: Grupo Argos Results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Grupo Argos Results 6 November 2020
Slide 7: Gradual revenue and profitability recovery confirm a positive trend
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Gradual revenue and profitability recovery confirm a positive trend Monthly Revenue COP billions Monthly Ebitda COP billions 2.00 1% 5% -2% -22% -12% -9% -13% -19% -13% 100% 0.60 6% 7% -15% -30% -17% 1% -12% -23% -15% 1
Slide 8: Corporate commitment to adapt to a challenging environment that shows signs of recovery
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Corporate commitment to adapt to a challenging environment that shows signs of recovery RELEVANT FIGURES COP billions Q3 – 2020 Q3 - 2019 Var.(%) Sep-2020 Sep-2019 Var.(%) Revenue 3,453 5,228 -34% 10,415 12,858 -19% Cos
Slide 9: Business contributions surpass projections made at the start of the pandemic
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Business contributions surpass projections made at the start of the pandemic Consolidated revenue Q3’2020 COP billions Consolidated Revenue Q3’2020 (PROFORMA) COP billions -34% -17% * Excludes divestment in Zona Franca
Slide 10: Business contributions surpass projections made at the start of the pandemic
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Business contributions surpass projections made at the start of the pandemic Consolidated Ebitda Q3’2020 COP billions Consolidated Ebitda Q3’2020 COP billions -39% -22% * Excludes divestment in Zona Franca (Revenue: COP
Slide 11: Savings in structural expenses in line with strategy implemented
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 Savings in structural expenses in line with strategy implemented CONSOLIDATED1 COP billions -2% Increase mainly due to the definition of the SSPD2 under which an additional contribution must be made to the corporate 427
Slide 12: A lower cost of debt was reflected by a COP 60 billion decrease in financial expenses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS Q3’2020 A lower cost of debt was reflected by a COP 60 billion decrease in financial expenses Consolidated debt COP billions Net debt1 COP billions Net financial expenses COP billions 17,793 + 995 18,262 326 - 526 1,742 16,509
Slide 13: Successful bond conversion to improve credit profile and better manage the current situation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SEPARATE RESULTS GRUPO ARGOS Q3’2020 Successful bond conversion to improve credit profile and better manage the current situation RELEVANT FIGURES COP billions Q3 – 2020 Q3 – 2019 Var.(%) Sep-2020 Sep-2019 Var.(%) Revenue 24 256 -91% 253 660 -62% 3 -2 -225% 43
Slide 14: 2020 cumulative expenses remain 4% below expenses as of September 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SEPARATE RESULTS GRUPO ARGOS Q3’2020 2020 cumulative expenses remain 4% below expenses as of September 2019 1. Revenue distribution Q3’2020 COP billions 2. Equity method distribution Q3’2020 COP billions 213 256 8 163 -95% Otros Other Act. Financiera Financial
Slide 15: The maturity profile and favorable cost of debt ensure valuable financial flexibility
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SEPARATE RESULTS GRUPO ARGOS Q3’2020 The maturity profile and favorable cost of debt ensure valuable financial flexibility Indebtedness1 COP billion Maturity profile (capital) COP billions 7% 0% 0% 17% 27% 15% 9% 0% 22% 0% 10% 37% $136 in bonds exchanged in Oc
Slide 16: 116 billion in cash as a response to the situation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SEPARATE RESULTS GRUPO ARGOS Q3’2020 116 billion in cash as a response to the situation Cash flow COP mn Notes COP mn 1 Net Dividends Dividendos netos 56 1. Dividends paid: COP 235 billion, dividends received: COP 292 billion Real Estate Revenue Ingresos NDU 4
Slide 17: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS 17 November 2020
Slide 18: Progressive recovery of volumes and profitability
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS Q3’2020 Progressive recovery of volumes and profitability COP 960 bn in cash at the end of the quarter • COP 472 bn in free cash flow generated during the quarter confirms the operation’s strength, cost and expense efficiency, and WK optimizati
Slide 19: Cement volumes in September reached 1.3 mn tons, matching September 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINESS Q3’2020 Cement volumes in september were +1.3 mn ton achieving the figure for the same month in 2019 Cement volumes* Thousands of tons Cement sales +5% YOY 34% -21% YOY -12% YOY USA 3.7 36% COL -11% mill MT C y CA Q3’2019 3T2020 30% Concrete vo
Slide 20: Cash position and free cash flow generation reflect a well executed strategy
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEMENT BUSINES Q3’2020 Cash position and free cash flow generation reflect a well executed strategy Revenue COP billions Ebitda COP billions Net controller profit COP billions 55 -6% +8% +225% 17 Q3’2019 Q3’2020 Q3’2019 Q3’2020 Q3’2019 Sep-2019 Q3’2020 Sep-202
Slide 21: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS 21 November 2020
Slide 22: Selected investments and commissioning of renewable energy generation plants
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS Q3’2020 Selected investments and commissioning of renewable energy generation plants We inaugurated PCH Celsia San Andrés de Cuerquia • 20 MW of installed capacity equivalent to the consumption of 25,000 homes The company’s solar generation inc
Slide 23: Energy demand gradually recovers in Colombia with growth in September vs. 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS Q3’2020 Energy demand gradually recovers in Colombia with growth in September vs. 2019 Generation (GWh) Energy Sales (GWh) Retail Sales (GWh) -8% -20% 13% -20% -17% -26% -3% -12% -10% -9% -10% 10% 2,449 4,155 5,459 2,224 3,329 4,752 508 308 306
Slide 24: Comparable EBITDA improves 6% year on year and confirms business resilience
PRESENTACIÓN DE RESULTADOS TRIMESTRALES ENERGY BUSINESS Q3’2020 Comparable EBITDA improves 6% year on year and confirms business resilience Revenue COP billions Ebitda COP billions Net controller profit COP billion 321 308 +33% A/A 56 280 12 23 -76 -12% A/A -27% A/A -42% A/A 250 -82% -20% 265 257 56
Slide 25: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS 25 November 2020
Slide 26: Accelerated recovery of highways and action plan to mitigate impact from airports
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS Q3’2020 Accelerated recovery of highways and action plan to mitigate impact from airports Opain restarts operations in September • The airport ends the month of September with 293 thousand PAX while in August it reached 14 thousand PAX Veh
Slide 27: Gradual traffic recovery closes out September at 91%
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS Q3’2020 Gradual traffic recovery closes out September at 91% and improvement continues in October Daily vehicle average Thousands of vehicles Notes on Highways 102.4 Positive path for vehicular traffic recovery with considerable improvemen
Slide 28: Significant growth in highways despite the negative impact of the airport business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS Q3’2020 Significant growth in highways despite the negative impact of the airport business Revenue COP billions Ebitda COP billions Net controller profit COP billions 50.000 43 40.000 30.000 20.000 -93% +2% -14% 10.000 3 0.000 Sep-2019 3Q2
Slide 29: El Dorado Airport saw reactivation in September
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CONCESSIONS BUSINESS - OPAIN Q3’2020 El Dorado Airport saw reactivation in September and traffic has been growing slowly Passengers Millions of Passengers (PAX) Revenue COP billions 11.0 9.4 9.1 8.4 864 9.0 7.5 Cambia escala (cifras en miles de PAX) 2.9 2.8 -5
Slide 30: Real Estate Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES REAL ESTATE BUSINESS 30 November 2020
Slide 31: Real estate business with an upward trend in EBITDA and progress with the divestment plan
PRESENTACIÓN DE RESULTADOS TRIMESTRALES REAL ESTATE BUSINESS Q3’2020 Real estate business with an upward trend in EBITDA and progress with the divestment plan Pactia – EBITDA Evolution Real Estate Business (cumulative 2020) COP billions -45% -25% -35% -12% -3% • Clauses of contracts signed in previo
Slide 32: Strategic flexibility for portfolio transformation and adaptation to contextual changes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES REAL ESTATE BUSINESS Q3’2020 Strategic flexibility for portfolio transformation and adaptation to contextual changes Revenue & NOI COP billions GLA m2 RELEVANT FIGURES 26% Comercio Commercial COP billions Q3’2020 Q3’2019 Var A/A Cum. 2020 Cum. 2019 Var YOY Ind
Slide 33: Sustainability
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SUSTAINABILITY 33 November 2020
Slide 34: COSO-WBCSD guide implementation results and work plan with affiliates
PRESENTACIÓN DE RESULTADOS TRIMESTRALES SUSTAINABILITY R5 COSO-WBCSD guide implementation results and work plan with affiliates Holding company strategic risks: Business risk profile Financial risk profile ESG risk profile (Environmental, Social & Governance) R1 Compliance with business R2 Economic,
Slide 35: CEO, CFO and IR contacts
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velásquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejía Tel: (57) 312 796 4775 Tel: (57) 311 302 8427 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com 35 November 2020
Slide 36: PRESENTACIÓN DE RESULTADOS TRIMESTRALES November 2020
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 36 November 2020