Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q3 2014 Earnings Presentation
32 slides from Grupo Argos's earnings presentation, 2014
Slide 1: 3Q2014 Results Presentation
3Q2014 Results Presentation 1
Slide 2: Disclaimer
DISCLAIMER This document contains forward-looking statements relating to GRUPO ARGOS and its subsidiaries based upon management projections. These projections reflect GRUPO ARGOS’ opinion on future events that may be subject to a number of risks, uncertainties and assumptions. Various factors may ca
Slide 3: Highlights
Highlights 18% Revenues growth 13% Ebitda growth 73% Net Profit growth 9% cement and 15% Agreement to buy assets 22% revenues and 37% Viva Villavicencio ready mix concrete from GDF Suez in Panama Ebitda increase when shopping mall increase in volumes and Costa Rica compared to 3Q2014 opens its doors
Slide 4: Consolidated Results
Consolidated Results 3Q Jan. - Sep. Jan. - Sep. Normalized Billion COP$ 2014 2013 Var. (%) 2014 2013 Var. (%) 2014 2013 Var. (%) Revenues 2.159 1.980 9 6.643 5.645 18 6.385 5.588 14 Costs & SG&A 1.836 1.615 14 5.396 4.561 18 5.181 4.512 15 Operating Profit 323 365 -12 1.247 1.084 15 1.204 1.076 12 E
Slide 5: Consolidated Results - Revenues
Consolidated Results- Renevues 6.643 + 200 +6 + 174 +5 +8 + 10 +2 + 591 5.645 Revenues Cement Energy Coal Ports Real Estate Corporative Divestment Dividends Revenues September September 2013 2014 5
Slide 6: Consolidated Results - EBITDA
Consolidated Results - EBITDA +6 1.669 + 35 + 11 +3 + 89 -4 - 10 + 59 1.479 EBITDA Cement Energy Coal Ports Real Estate Corporative Divestment Dividends EBITDA September September 2013 2014 6
Slide 7: Consolidated Results – Net Income
Consolidated Results – Net Income + 83 + 35 +7 332 - 30 + 43 +6 +3 -7 192 Net Income Cement Energy Coal Ports Real Estate Corporative Divestment Dividends Net Income Septiembre 2013 Septiembre 2014 7
Slide 8: Business Results
Business Results Million COP$ Cement Var. Energy Var. Real Estate Var. Ports Var. Others Var. Holdings Var. Elimination Consolidated Var. Revenues 4.253 16% 1.928 10% 51 9% 45 22% 66 35% 584 72% -285 6.643 18% Gross Income 987 20% 734 15% 38 11% 13 54% 7 384% 370 27% -234 1.915 20% Gross Margin 23,2
Slide 9: Consolidated Balance Sheet Sep.2014
Consolidated Balance Sheet Sep.2014 September 2014 Assets 35,0 30,0 Short Term COP$ billion 6,9 25,0 10% 15% 20,0 11,0 Permanent 15,0 31,8 Investments 10,0 13,8 26% PP&E 5,0 49% 0,0 Assets Liab. & Equity Other Long Term Assets Equity Liabilities Minority Interest December 2013 Liabilities 30,0 Finan
Slide 10: Non-Consolidated Results
Non-Consolidated Results 3Q Jan. - Sep. Jan. - Sep. Normalized Thousand million COP$ 2014 2013 Var. (%) 2014 2013 Var. (%) 2014 2013 Var. (%) Revenues 145 135 7 632 380 66 374 322 16 Costs & SG&A 91 53 72 313 124 152 99 75 32 Operating Profit 54 82 -34 319 256 25 275 247 11 EBITDA 55 82 -33 322 257
Slide 11: Non-Consolidated Balance Sheet Sep.2014
Non-Consolidated Balance Sheet Sep.2014 September 2014 Assets 18,0 16,0 2,0 COP$ billion 14,0 Short Term 5% 12,0 14% 10,0 8,0 17,1 15,1 Permanent 6,0 Investments 4,0 2,0 81% PP&E 0,0 Assets Liab. & Equity Assets Equity Liabilities December 2013 Liabilities 18,0 16,0 Financial Oblig. 14,0 1,8 2% 7% S
Slide 12: Cement Business
Cement Business d/o . 1 iia BaSgP EN wu 4 GRUPO ARGOS
Slide 13: Highlights
Highlights Cementos Argos announced an investment of USD450M to expand its Sogamoso cement plant. Total capacity should reach 2.3 Mtpy. 13
Slide 14: Jan – Sep Volumes
Jan – Sep Volumes Cement Cement sales + 771 9.352 Colombia + 187 22% Caribbean & + 134 43% CA 8.586 8% Export - 327 USA - 27% Southeast +3% +8% -31% +59% YTD 2013 Colombia Caribbean & CA Export USA - YTD 2014 Southeast Ready mix concrete Concrete sales + 139 8.269 Colombia + 991 30% 32% Caribbean &
Slide 15: Financial Results
Financial Results Revenues EBITDA EBITDA margin (%) COP$ Billion COP$ Billion 5.000 +8% 805 800 745 +16% 4.253 18 4.000 3.661 272 2014 19 1.490 600 269 20 3.000 1.325 400 272 2.000 1.468 244 20 1.241 200 2013 20 1.000 261 1.095 1.295 232 21 0 0 2013 2014 2013 2014 0 10 20 30 1Q 2Q 3Q 1Q 2Q 3Q 3Q 2Q
Slide 16: Energy Business
Energy Business So 7 e/a ESN wu 4 GRUPO ARGOS
Slide 17: Jan. – Sep. Volumes Gx and Dx
Jan. – Sep.Volumes Gx and Dx Generated Energy in GWh + 198 4.725 4.550 + 54 - 78 +15% -4% +9% +4% YTD 2013 Celsia Zona Franca Celsia EPSA YTD 2014 Energy end-user sales in GWh Generation by technology type + 83 1.445 42% Hydro 1.362 58% Termo +6% +6% YTD 2013 EPSA YTD 2014 17
Slide 18: Financial Results
Financial Results Revenues EBITDA EBITDA margin (%) COP$ Billion COP$ Billion 2.000 +10% 1.928 800 742 1.754 +14% 700 31 651 567 175 1.600 600 2014 43 577 212 500 40 1.200 784 400 336 589 800 228 300 37 200 2013 39 400 589 577 231 100 211 36 0 0 2013 2014 2013 2014 0 20 40 60 1Q 2Q 3Q 1Q 2Q 3Q 3Q 2Q
Slide 19: Real Estate Business
Real Estate Business a! wu 4 GRUPO ARGOS
Slide 20: Highlights
Highlights Viva Villavicencio shopping mall opened its doors in September, becoming the largest in its region. 20
Slide 21: Financial Results
Financial Results Revenues EBITDA EBITDA margin (%) COP$ Billion COP$ Billion +9% 51,4 50 47,3 23 18,6 7 8 20 -23% 2014 64 40 17 15 14,4 14 14 1 30 33 18 11 10 20 8 54 29 5 2013 41 10 9 2 4 4 -75 5 -1 2013 2014 0 2013 2014 -4 -3 -100 -50 0 50 100 1Q 2Q 3Q 1Q 2Q 3Q 3Q 2Q 1Q 21
Slide 22: Ports Business
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Slide 23: Highlights
Highlights Bulk plant in Tolú Improvements in the Barranquilla terminal A bulk cargo plant started operations in the Improvement works to increase docking Tolú port, receiving an immediate positive space were started at the Barranquilla response from the market terminal. 23
Slide 24: Financial Results
Financial Results Revenues EBITDA EBITDA margin (%) COP$ Billion COP$ Billion 91 26,0 90 +22% 25 74 +37% 7 23 30 20 19,0 2014 30 60 26 32 6 15 9 30 25 10 23 30 8 2013 30 31 5 10 24 23 6 0 0 2013 2014 2013 2014 0 10 20 30 1Q 2Q 3Q 1Q 2Q 3Q 3Q 2Q 1Q 24
Slide 25: Operational Results
Operational Results Containers throughput # of containers Imp & Exp Bulk – General cargo in tons 75.353 -4% 16.000 3.000 75.000 71.964 13.858 +4% -7% 2.512 12.947 2.423 2.500 24.219 60.000 22.924 12.000 4.489 704 4.408 2.000 732 45.000 21.042 8.000 1.500 23.732 4.674 885 30.000 4.202 986 1.000 4.000
Slide 26: Coal Business
Coal Business . . eo J rs hod GRUPO ARGOS 26
Slide 27: Highlights
Highlights San Martin mine was closed Underground mines divested Trinidad Monserrate Alejandría El Palmar Staying true to our commitment to preserve An agreement to sell the mines in Cauca (El the environment, the San Martin mine was Palmar) and Cundinamarca (Monserrate, closed do to its proximity t
Slide 28: Financial Results
Financial Results Revenues EBITDA EBITDA margin (%) COP$ billion COP$ billion 50 48,1 2013 2014 +19% 5 40,4 40 16 7 2 0,4 1 20140 17 -1 30 -1 0 -4 -5 16 -4 20 14 -8 -7 -5 2013 10 -38 16 9 -10 -53 -1 0 2013 2014 -13 -11,5 -60 -40 -20 0 20 1Q 2Q 3Q 1Q 2Q 3Q 3Q 2Q 1Q 28
Slide 29: Bonds issuance results
Bonds issuance results Total issued 1 trillion COP Bid-to-cover 2,51x Average cost of debt went from 6.6% to COP billion 7.1% Weighted average life went from 2.2 to 9.6 years Total demand Total allocated Duration went from1.6 to 6.3 Initial amount Bid-to-cover 29
Slide 30: Debt Profile
Debt Profile $COP 1,000 BILLION Convertible bonds* $ 450 $ 400 390 $ 350 $ 300 254 $ 250 $ 200 132 559 $ 150 108 115 $ 100 $ 50 $0 2016 2017 2019 2024 2029 2015 Cost of debt (%) 6,20% 5,9% 6,1% 6,1% 6,00% 5,9% 5,8% 5,8% 5,80% 5,6% 5,7% 5,7% 5,6% 5,7% 5,5% 5,60% 5,3% 5,40% 5,20% 5,00% 4,80% 10/13 11/
Slide 31: Portfolio
Portfolio September 2013 September 2014 Alimentos Puertos Alimentos Puertos 6% 2% 6% 2% Servicios Financieros Cemento 29% 34% Servicios Cemento Financieros 35% 28% COP$20,5 COP$21,2 Billion Billion Carbón Carbón 2% 2% Energía Energía Inmobiliario 13% Inmobiliario 13% 14% 14% +3,4% *The value of each
Slide 32: Thanks
Thanks a! wu 4 GRUPO ARGOS