Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (May 2019)
24 slides from Grupo Argos's investor presentation, May 2019
Slide 1: Corporate Presentation May 2019
CORPORATE PRESENTATION May 2019
Slide 2: Important Note
IMPORTANT NOTE This presentation contains certain forward-looking information and statements related to GRUPO ARGOS and its subsidiaries that are based on knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events. Many factors could cause the future res
Slide 3: Grupo Argos at a Glance
CORPORATE PRESENTATION MAY 2019 WHO WE ARE GRUPO ARGOS AT A GLANCE Only liquid vehicle to invest in infrastructure in Colombia Strategic focus in Cement, Energy, Road and Airport Concessions 3 REGIONS Solid and articulated portfolio with ~ USD 16.3 billion in consolidated assets Balanced in regions,
Slide 4: Strategic Portfolio Focused in Infrastructure
Presentación Corporativa Marzo 2019 PORTFOLIO STRATEGIC PORTFOLIO FOCUSED IN INFRASTRUCTURE USD 5.1 bn USD 4.9 bn USD 1.3 bn MARKET CAP *1 REVENUES *2 EBITDA *2 CEMENT ENERGY CONCESSIONS In Infrastructure STRATEGIC 58.0% 52.9% 99.9% *3 *8 *7 *7Revenues: USD 1.1 bn *7 Revenues: USD 2.8 bn Revenues: U
Slide 5: Well Balanced Sources of Revenue and EBITDA
Presentación Corporativa Marzo 2019 PORTAFOLIO WITH WELL BALANCED SOURCES OF REVENUE AND EBITDA REVENUE CONTRIBUTION STARTEGIC BUSINESS LTM MAR19 EBITDA CONTRIBUTION STARTEGIC BUSINESS LTM MAR19 14% 31% 44% 25% USD 4.7 bn USD 1.2 bn LTM DEC 2019 LTM DEC 2019 64% 31% Cementos Argos Celsia Odinsa 1 Re
Slide 6: Coherent Strategy in All Businesses Supporting Focus on Profitability
Presentación Corporativa Marzo 2019 STRATEGY COHERENT STRATEGY IN ALL BUSINESSES THAT WILL CONTINUE TO SUPPORT FOCUS IN PROFITABILITY CEMENTOS ARGOS • Efficiency Strategy to lever future growth • Argos as a regional platform Coherence • Focus on innovation and digital strategy as a source of EBITDA
Slide 7: Cementos Argos – Efficiency Focus
CORPORATE PRESENTATION MAY 2019 STRATEGY CEMENTOS ARGOS – EFFICIENCY FOCUS PROFITABLE GROWTH • Cost per ton reduction in Colombia (-USD 12 / ton). Efficiency project extends to USA in 2019 with estimated savings of USD 40 mm Net Income 2018 • Administration and sales expenses -5.6% YoY in 2018 • EBI
Slide 8: Celsia – Strategic Asset Allocation and Structure Simplification
CORPORATE PRESENTATION MAY 2019 STRATEGY CELSIA – STRATEGIC ASSET ALLOCATION AND STRUCTURE SIMPLIFICATION PROFITABLE GROWTH Consolidated • Focus in renewable energy with positive impact in profitability Net Income 2018 indicators • • Increase in Ebitda to COP1.13 bn + 1% in 2018 YoY Enertolima shoul
Slide 9: Odinsa – Platform with Regional Reach That Provides Growth Opportunities
CORPORATE PRESENTATION MAY 2019 STRATEGY ODINSA - PLATFORM WITH REGIONAL REACH THAT PROVIDES GROWTH OPPORTUNITIES PROFITABLE GROWTH ODINSA • AKF's contingency legal management allowed to maintain the Odinsa´s Consolidated concession until January 2027 Net Income 2018* OPAIN • Growth in unregulated r
Slide 10: Guideline Translated in Growing Results with EBITDA CAGR of 16% in 5 Years
CORPORATE PRESENTATION MAY 2019 FINANCIAL RESULTS GUIDELINE THAT HAS TRANSLATED IN GROWING RESULTS WITH EBITDA CAGR OF 16% IN LAST 5 YEARS GRUPO ARGOS CONSOLIDATED REVENUES (COP billions) GRUPO ARGOS CONSOLIDATED EBITDA (COP billions) CAGR (2013 – 2018) 13.4% CAGR (2013 – 2018) 15,8% 5500 27% 28% 30
Slide 11: Grupo Argos Guidelines as Strategic Architect – How We Generate Value
CORPORATE PRESENTATION MAY 2019 STRATEGY GRUPO ARGOS GUIDELINES AS STRATEGIC ARCHITECT – HOW WE GENERATE VALUE SUSTAINABLE GROWTH AND MAXIMIZE PROFITABILITY EFFICIENT CAPITAL ASSIGMENT + CORPORATE GOVERNANCE HIGH STANDARDS + SOCIAL RESPONSABILITY + HUMAN TALENT MANAGEMENT STRATEGY FINANCIAL INSTITUT
Slide 12: Variable Remuneration Scheme Aligns Shareholders and Company Objectives
Corporate Presentation May 2019 STRATEGY VARIABLE REMUNERATION SCHEME SEEKS TO ALIGN SHAREHOLDERS AND COMPANIES OBJECTIVES SHORT TERM LONG TERM SUSTAINABILITY OBJECTIVES OBJECTIVES • EBITDA • ROCE Maintain the category in • Net income for the • FCO / EBITDA the DJSI, or obtain a score parent company
Slide 13: Highly Committed with Sustainability
CORPORATE QUARTERLY PRESENTATION FINANCIAL RESULTS MAY 2019 SUSTAINABILITY HIGHLY COMMITED WITH SUSTAINABILITY. IN 2018 WE ADDED TO THE SOCIETY 1.8X THE BENEFIT TAKEN VALUE ADDED STATEMENT OF GRUPO ARGOS 2018 (USD bn) ECONOMIC SOCIAL ENVIRONMENT 332.4 120.5 120.4569404 0.04 0.036919039 5.25 5.247761
Slide 14: Solid Commitment to Corporate Governance
CORPORATEPresentation Corporate PRESENTATION MAY May 2019 2019 CORPORATE GOVERNANCE SOLID COMMITMENT TO CORPORATE GOVERNANCE BOARD OF DIRECTORS SHAREHOLDERS ROSARIO CÓRDOBA 35,5% (Chair of the Board) - Independent GrupoSura Grupo Sura 29,1% 25,7% CLAUDIA BETANCOURT Colombian Non – Independent Grupo
Slide 15: Grupo Argos Role as Holding Company – Capital Structure
CORPORATE PRESENTATION MAY 2019 GRUPO ARGOS ROLE AS HOLDING COMPANY CAPITAL STRUCTURE 15 May 2019
Slide 16: Grupo Argos Debt Decreases by 16% YoY
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS CAPITAL STRUCTURE GRUPO ARGOS DEBT DECREASES BY 16% YOY INDEBTEDNESS* COP bn LEVERAGE INDICATORS Max: 4.0x 1,847 -16% Max: 3.5x 350 1,545 Adjusted EBIDTA** - 40 - PC (COP billion): 759 -1% 748 Repos mar-2018 • Mar-2018: 1,041 Bonos • Mar-2019: 696 3,9x mar-201
Slide 17: Leverage Ratios Evolution in Line with Efficient Capital Allocation Strategy
CORPORATE PRESENTATION MAY 2019 GRUPO ARGOS CAPITAL STRUCTURE LEVARAGE RATIOS EVOLUTIONS IN LINE WITH EFFICIENT CAPITAL ALLOCATION STRATEGY 3000 7,00x Deuda bruta Gross Debt Ebitda adj. Adj EBITDA Deuda bruta Gross Debt / Ebitda / EBITDA 6,00x 2500 944 From 2015 to 2018 Grupo 695 5,00x Argos has: 67
Slide 18: Consolidated Debt Increases Due to Capital Markets
CORPORATE PRESENTATION MAY 2019 CONSOLIDATED CAPITAL STRUCTURE CONSOLIDATED DEBT INCREASES DUE TO CAPITAL MARKETS DEBT* COP billions 2018-2019: Consolidated Debt increases 4% YoY to COP 16 bn 16,092 15,407 1.365 1.379 +4% International Banks 34% (-5% A/A) 2.231 2.468 Local Banks Opain 20% (-7% A/A)
Slide 19: Highly Efficient Cash Management
CORPORATE QUARTERLY PRESENTATION FINANCIAL RESULTS MAY 2019 RESULTADOS GRUPO ARGOSSEPARADOS CAPITAL STRUCTURE GRUPO ARGOS 1T2019 HIGHLY EFFICIENT CASH MANAGEMENT INDIVIDUAL FREE CASH FLOW COP bn NOTES 1 DividendosNet netos dividends 28 1. Dividends received COP 98 bn, dividends paid COP 70 bn UrbanI
Slide 20: Controllable Management Expenses Decreased 8.3% in Real Terms 2015-2018
CORPORATE PRESENTATION MAY 2019 GRUPO ARGOS EXPENSES BETWEEN 2015 -2018, CONTROLLABLE MANAGEMENT EXPENSES HAVE DECREASED 8.3% IN REAL TERMS SG&A COP billions CAGR real: -4.0% Grupo Argos Controllable GA NDU Impuestos Taxes D&A Proyectos GA ProjectsGA Management Cost 165 28 141 -8.3% 135 133 7 CAGR (
Slide 21: Annex Financial Results 1Q19
ANNEX FINANCIAL RESULTS 1Q19 21 Mayo 2019
Slide 22: First Quarter with Results Strengthened by Role of the Holding Company
Corporate Presentation May 2019 CONSOLIDATED RESULTS GRUPO ARGOS 1Q2019 FIRST QUARTER WITH RESULTS STRENGTHENED BY THE ROLE OF THE HOLDING COMPANY COP 1,5 tn COP 1,7 tn USD 400 mm USD 40 mm GRUPO ARGOS DEBT ENERTOLIMA ASSETS QUIPORT BONDS GOAL BEST 2.0 USA 2019 COP 300 bn EPSA share Capital structur
Slide 23: EBITDA and Net Controlling Income Grow 6% and 32%
QUARTERLY FINANCIAL PRESENTACIÓN RESULTS DE RESULTADOS TRIMESTRALES CONSOLIDATED RESULTS GRUPO ARGOS 1Q2019 EBITDA AND NET CONTROLLING INCOME GROW 6% AND 32%, RESPECTIVELY RELEVANT FIGURES Consolidated Income Statement 1. Quarter revenues grow 12%: COP billion mar-19 mar-18 Var.(%) 1 Revenues 3,721
Slide 24: Net Income Increases 26% YoY Excluding Non Recurring Events
CORPORATE PRESENTATION MAY 2019 INDIVIDUAL RESULTS GRUPO ARGOS 1Q2019 NET INCOME INCREASES 26% YoY EXCLUDING NON RECURRING EVENTS RELEVANT FIGURES INCOME Real Estate Bussines INCOME Equity Method Individual Income Statement 29 27 76 COP bn mar-19 mar-18 Var.(%) 3 Otros 12 +9% 10 17 -25% 57 Revenue 3