Slide 1: Holding Company with Sustainable investments in infrastructure
Holding Company with SUSTAINABLE investments in infrastructure
Slide 2: Investment Principles
Basic sectors of the economy STRATEGY Investment With Natural entry barriers Principles Capital intensive Our investments in high-quality real assets generate stable, LONG-TERM CASH FLOWS AND PROVIDE AN INFLATION HEDGE With long business cycles 2
Slide 3: Our Investments
STAKE STRATEGIC Cement 55,3%* In Infrastructure Energy 52,5% Concessions Roads and airports 54,7% Our Investments Ports 50% STAKE PORTFOLIO Real Estate Listed companies Real Estate Fund 50% account for 82% of our holdings, giving us Urban Development 100% greater financial flexibility and high level
Slide 4: History
History 2005 2006 2007 2009 2011 2012 2013 2014 2015 Expansion in the United States Entry into concession business through the acquisition of through the acquisition of a 54.7% 1934 Founding of Lafarge’s assets stake in Odinsa Divestment of coal mines Compañía de Acquisition of Holcim’s plants in Pa
Slide 5: Footprint
Footprint 17 Countries of the Americas 12.670 Employees Sectoral and geographical diversification, which reduces the impact of the different stages of the economic cycle Cement Concessions Energy Cementos Argos S.A. has a presence in Venezuela through its subsidiary Corporación de Cemento Andino C.A
Slide 6: Strengths
Strengths BOARD OF DIRECTORS SHAREHOLDERS NAME ROLE Rosario Córdoba Independent Chairman of the Board 35,6% Mario Scarpetta Independent GRUPO SURA 67% 13,0% PENSION FUNDS Ana Cristina Arango Independent PENSION FUNDS COMMON 12,4% PREFFERED 5% Armando Montenegro Independent STOCK GRUPO NUTRESA STOCK
Slide 7: Performance
Performance 190 Grupo Argos’ Advantages 170 as a Holding Company 150 130 Correlation among its businesses, enabling synergies 110 90 Access to better financing terms 70 50 Strategic alignment among subsidiaries GRUPO ARGOS CEMARGOS CELSIA IGBC ODINSA Optimal resource allocation 7
Slide 8: Portfolio Growth
Portfolio Growth BY ASSET VALUE* 2015 50% 2010 Cement 2005 24% 76% Real Estate Cement COP 12% COP 4,6 100% Cement COP 10,6 24% Energy 12,3 billion Energy 11% ** billion billion Concessions 3% Other DIVIDEND GROWTH $279 $250 $267 $234 Cemento $ 177 Energia Grupo Sura Grupo Nutresa Bancolombia Grupo S
Slide 9: Debt Profile
Debt Profile COP COP COP 1,66 1,65 BILLONES BILLONES BILLION (USD 513 million)* 600 500 400 Synthetic 300 credit 550 200 390 Long term 108 credit 254 100 132 115 Ordinary 100 bond 0 2016 figures in billion pesos Cost of Individual Debt 2017 2019 2020 2024 2029 AAA by BRC Standard & Poor´s (local rat
Slide 10: Results
Results REVENUES USD $ million EBITDA 36% USD $ million 30% 28% 1.400 25% 5.000 24% 4472 23% 4.082 1.200 19% 18% 1.023 1047 4.000 3.717 12% 18% 1.000 876 883 899 3.129 2.899 756 3.000 800 2.020 2.125 1.837 600 2.000 1.495 368 400 340 270 1.000 730 200 87 - - 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 11: Cement
Cement BUSINESS rN La GRUPO ARGOS
Slide 12: Strategic Focus
COMMITMENT Provide our customers the best value proposition LOGISTICS STRATEGIC Continually enhance our distribution channels and logistics network FOCUS EFFICIENCY Improve operating efficiencies and reduce production costs EXPANSION Selectively pursue attractive acquisition opportunities EMPHASIS M
Slide 13: Footprint
Footprint • Logistical synergies due to our geographical location, port infrastructure, and maritime expertise • Balance between developed and emerging economies • Countries with potential for per-capita consumption growth • Economies with different economic cycles History of Strategic Acquisitions
Slide 14: Competitive Advantages
Well-Established Competitive Advantages Distribution Network 2 Competitive Advantages: Strategically located assets and broad distribution and logistics network enhances flexibility U.S. plants provide additional flexibility 23 Ports/Terminals • Efficient cement plants with access to distribution Lo
Slide 15: Results
Results REVENUES USD $ million EBITDA USD $ million 19% 20% 19% 18% 18% 2.908 600 3.000 18% 524 534 2.656 16% 2.437 2.500 440 450 1.955 1.983 369 2.000 1.602 1.594 303 304 284 1.500 300 1.000 150 500 - - 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 DIVIDEND COP $ MARKET CAP
Slide 16: Energy
Energy Business
Slide 17: Strategic Focus
REACH Focus on end customer. INNOVATION STRATEGIC Adoption of state-of-the-art technologies and implementation of new business models. FOCUS NON-CONVENTIONAL RENEWABLE ENERGIES Become a major player in large-scale, grid-connected non-conventional renewable energies. DISTRIBUTED ENERGY Small-scale, r
Slide 18: Presence
Presence Risk Diversification • Presence in 3 countries: Colombia, Panama, and Costa Rica • Electricity generating technologies: hydropower, thermal, and wind History of Strategic Acquisitions 2007 Acquisition of Termoflores (now Zona Franca Celsia), Colombia Acquisition of Meriléctrica, the Rio Pie
Slide 19: Results
Results REVENUES USD $ million EBITDA 39% 40% USD $ million 37% 1.400 1.294 36% 1.276 600 35% 1.200 26% 1.024 500 463 447 1.001 414 1.000 916 386 400 343 768 11% 800 300 600 200 400 265 69 82 200 100 - - 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 DIVIDEND 2,4% COP $ MARKET
Slide 20: Concessions
Concessions Roads & airports
Slide 21: Strategic Focus
SUSTAINABLE GROWTH STRATEGIC Selective pursue of projects. FOCUS REGIONAL EXPANSION Expansion into strategic areas of interest as the countries in the Pacific Alliance. EFFICIENCY Improve operating efficiency. 21
Slide 22: Footprint
Footprint History of successful projects in the region that provided entry to new markets History of International Projects 2000 Autopistas del Nordeste Project, Dominican Republic 2007 Boulevard Turístico del Atlántico Project, Dominican Republic Viadom Project, Dominican Republic 2008 Energy Secto
Slide 23: Operations
Operations ROAD CONCESSIONS 4 existing road concessions in Colombia, 2 in the Dominican Republic, and 1 in Aruba 1 4G project awarded (Pacifico 2) - 98 Km 2 private initiative PPP awarded: Malla Vial del Meta (354 Km) and Vias del Nus (157 Km) Diverse business 1 private initiative PPPs pending (Priv
Slide 24: Results
Results REVENUES USD $ million EBITDA 42% USD $ million 41% 35% 500 468 32% 460 200 29% 392 27% 166 162 400 372 29% 148 150 300 109 217 100 200 148 59 121 50 50 42 100 0 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 DIVIDEND 6.4% COP $ MARKET CAP USD $ million 6.1% 5,9% 6.3
Slide 25: Potential in Colombia
Potential in Colombia Infrastructure improvement is one of the government’s main objectives More than COP$ 45 trillion pesos* are being invested for that purpose Quality of roads rankings 4G Projects (public initiative) 0 • 30 new concessions 20 31 • Investments totaling more than COP$ 30 trillion 4
Slide 26: Ports
7) =| i) a7) 7) 7) 12) =| i) O COMPAS rN 26 GRUPO ARGOS wa
Slide 27: Strategic Focus
COMMITMENT STRATEGIC Provide our clients with the best value proposal FOCUS EMPHASIS Maintain emphasis in security, our employees and sustainable development. LOGISTICS Continually enhance our facilities. 27
Slide 28: Footprint
Footprint Multi-purpose terminals in the Atlantic and the Pacific oceans allow Compas to serve different multi-purpose industries and markets 50 Accessible Countries 9 Port Terminals USD 300 US$ Million Invested Terminals with Operating 20% Colombia’s Grain Agreements Import/Export Volume Terminals
Slide 29: Investment Portfolio
Portfolio Investment rN i 4 GRUPO ARGOS 29 rN La GRUPO ARGOS
Slide 30: Portfolio Investments
Current GLA 440.000 mts2 REAL ESTATE Real Estate Fund 4-year target GLA 700,000 mts2 Barranquilla 1,200 ha Land Bank Baru 1,300 ha Other 2,600 ha Portfolio Investments PORTFOLIO Financial Services 37% stake* US$ 2.7 billion Bancolombia 1,5% stake** US$ 59 million 9.8% stake * 37% of the ordinary sha
Slide 31: Real-Estate Fund
Real-Estate Fund
Slide 32: Benefits of the Alliance
Benefits of the Alliance FINANCIAL STRENGTH INTERNATIONAL AND CAPACITY PLATFORM RECOGNITION Investment portfolio valued Presence in more than 80 years in the market at US$6.3 billion 17 countries via its subsidiaries PROJECT DEVELOPMENT VERTICAL INTEGRATION OPERATING EXPERIENCE CAPABILITY Presence i
Slide 33: Footprint
Footprint 16 Shopping Malls 257,000 m2 of leasable space 8 Commercial Establishments 11,000 m2 of leasable space 14 Industrial Complexes 263.300m2 of leasable space 5 Hotels 697 guestrooms 9 Office Buildings 115.500m2 of leasable space 8 Self-Storage Complexes 20,500 m2 of leasable space 33
Slide 34: Investor Relations contacts
ALEJANDRO PIEDRAHÍTA SEBASTIÁN VELÁSQUEZ CFO Investors Relations Grupo Argos Grupo Argos Phone: (57) 4 3198450 Phone: (57) 4 319 87 12 apiedrahita@grupoargos.com svelasquez@grupoargos.com 34