Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q1 2020 Earnings Presentation
36 slides from Grupo Argos's earnings presentation, May 1, 2020
Slide 1: Results Presentation First Quarter 2020
QUATERLY FINANCIAL RESULTS Results Presentation First Quarter 2020 May 2020 1 May 2020
Slide 2: Important Note
QUATERLY Resultados PrimerFINANCIAL Trimestre RESULTS del 2019 QUARTERLY RESULTS 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, circ
Slide 3: Covid-19 Management
QUATERLY FINANCIAL RESULTS Covid-19 Management 3 May 2020
Slide 4: Solid corporate government, capable of managing rapidly changing market dynamics
QUATERLY FINANCIAL RESULTS COVID-19 MANAGEMENT Solid corporate government, capable of managing rapidly changing market dynamics Health and Life Finances and Risks Chief Administrative and Human CFO´s Talent Officers • Cash status • Health and wellbeing • Financial cycle • Personal and family support
Slide 5: We articulate, design and implement a strategic plan to deal with this situation
QUATERLY FINANCIAL RESULTS COVID-19 MANAGEMENT We articulate, design and implement a strategic plan to deal with this situation 1. Care and health 2. Employment 3. Business Of our collaborators and their families Preserve employment as far as Continuity and proactive management as our number one pri
Slide 6: We prioritize the health of our collaborators
QUATERLY FINANCIAL RESULTS LIFE AND HEALTH 1. We prioritize the health of our collaborators 4,400 employees • 100% of Grupo Argos’ On-site work • 41% of Corporate Group employees employees are working working from from home Continuity home Ongoing • Potential risks • Prevention and self-care • Impor
Slide 7: Our commitment: To keep as many jobs as possible
QUATERLY FINANCIAL RESULTS EMPLOYMENT 2. Our commitment: To keep as many jobs as possible Our priority is to maintain the health and employment of our close to 14.000 Collaborators 7 May 2020
Slide 8: Emergency plan: identified COP 2.5 trillion to date
QUATERLY FINANCIAL RESULTS BUSINESS CONTINUITY 3. Emergency plan: An on-going exercise that has allowed us to identify COP 2.5 trillion to date CAPEX $ 415 $ 865 1 (COP billions) $ 290 $ 160 2 OPEX $ 60 $ 325 $ 120 $ 20 $ 525 (COP billions) 3 Liquidity Credits $ 500 $ 400 $ 120 $ 75 $ 1,095 (COP bil
Slide 9: Contributed over COP 16 billion to society
QUATERLY FINANCIAL RESULTS PHILANTHROPY 4. In our role as corporate citizens we have contributed over COP 16 billion to society COP + 16 billion + COP 13 billion COP 1.6 billion COP 600 million COP 648 million To strengthen the hospital Donation drives in Bogota, “An Invitation to Empathy” Nutrition
Slide 10: Slide 10
Slide 11: Grupo Argos Consolidated Results Q1-2020
QUATERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Cementos Argos, Celsia, Odinsa and Urban Development Business confirm our diversification strategy RELEVANT FIGURES COP bn Mar-2020 Mar-2019 Var.(%) Revenue Cost, expenses & other revenues Operating profit 3,616 3,219 397 3,715 3,11
Slide 12: Consolidated contribution in revenues from strategic businesses of COP 58 billion
QUATERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Consolidated contribution in revenues from strategic businesses of COP 58 billion Contribution by business to consolidated revenue 1Q2020 COP bn -3% 1Q2019 Cement Energy Real estate Portfolio Coal Concessions Other 1Q2020 Contributi
Slide 13: Stable SG&A as proof of quick response capacities
QUATERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Stable SG&A as proof of quick response capacities in light of the current situation CONSOLIDATED1 COP bn -1% 229 225 443 52 67 108 439 47 103 59 31 28 5 5 15 14 Mar-2019 1Q2019 Mar-2020 1Q2020 Mar-2019 1Q2019 Mar-2020 1Q2020 Mar-201
Slide 14: Stable financial expenses despite the effect of devaluation in the consolidated debt
QUATERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q1-2020 Stable financial expenses despite the effect of devaluation in the consolidated debt Consolidated Debt COP bn Net Financial Expenses COP bn 2,181 337 18,609 297 +0.7% 300 - 1,717 16,092 26 26 - 1,545 4,843 54 78 3,833 Grupo Argos Gr
Slide 15: Grupo Argos separate results: Ebitda margin improves
QUATERLY FINANCIAL RESULTS GRUPO ARGOS SEPARATE RESULTS Q1-2020 66% Ebidta margin improves by 100 basic points RELEVANT FIGURES COP bn Mar-2020 Mar-2019 Var.(%) Revenue 200 308 -35% Costs and other expenses 24 60 -60% GA expenses Operating profit Ebitda Ebitda margin 47 128 132 66% 52 196 200 65% -8
Slide 16: Controllable expenses go down 8% year-on-year
QUATERLY FINANCIAL RESULTS GRUPO ARGOS SEPARATE RESULTS Q1-2020 Controlable expenses go down 8% year-on-year 1. Revenue Distribution 1Q2020 COP billions 2. Equity Method Distribution* 1Q2020 COP billions 57 308 13 13 57 9 29 -75% 3 -35% 200 19 MPP Financial Otros Other 13 34 38 Negocio Inmobiliario
Slide 17: Financial flexibility as no maturities until 2022
QUATERLY FINANCIAL RESULTS GRUPO ARGOS SEPARATE RESULTS Q1-2020 Financial flexibility as no maturities until 2022 – cost of debt remains at 7% Indebtedness1 COP billions Profile of maturities (principal) COP billions 7% 0% 0% 22% 22% 15% 9% 0% 23% 0% 10% 36% 36% COP 247 Bonds Bonos 1,717 bn INDEXED
Slide 18: COP 115 bn in cash provides financial flexibility for dealing with Covid-19
QUATERLY FINANCIAL RESULTS GRUPO ARGOS SEPARATE RESULTS Q1-2020 COP 115 bn in cash provides us with financial flexibility for dealing with Covid-19 Flujo de caja Notas COP mn 1. Net dividends: COP 19 bn, 1 Dividendos netos Net dividends 19 2. Developed plots: COP 11 bn, income and others: COP 3 bn 2
Slide 19: Concessions Business
QUATERLY FINANCIAL RESULTS CONCESSIONS BUSINESS ODINSA Y OPAÍN RESULTADOS TRIMESTRALES 3T2019 19 May 2020
Slide 20: Odinsa has made efforts to ensure over COP 650 bn for financial flexibility
QUATERLY FINANCIAL RESULTS CONCESSIONS BUSINESS Q1-2020 Odinsa has made efforts to ensure over COP 650 bn for financial flexibility 80% of the country’s air cargo moves through El Dorado • Quiport is operating at 40% of its cargo capacity 100% reactivation of activities in Pacifico 2 • In upcoming w
Slide 21: Airport traffic goes down by 8% year-on-year due to closures
QUATERLY FINANCIAL RESULTS CONCESSIONS BUSINESS Q1-2020 Airport traffic goes down by 8% year-on-year due to closures Average daily vehicle traffic 1Q2020 Thousands of vehicle NOTES ON HIGHWAYS 99.3 101.6 • AKF: traffic shows a variation of -2% YOY during Q120 20.3 24.6 • Túnel Oriente: 24,600 vehicl
Slide 22: Concessions revenue drops 4% due to FX differences at Pacífico 2
QUATERLY FINANCIAL RESULTS CONCESSIONS BUSINESS Q1-2020 IRevenue drops 4% due to FX differences at Pacífico 2 Revenue COP billion EBITDA COP billion Controller Net Profit COP billion 30.000 25 25.000 20.000 15.000 10.000 -4% -21% 5.000 1Q2020 0.000 -5.000 1Q2019 -10.000 -10 -15.000 Highway concessio
Slide 23: Opain results affected by the Covid-19 related passenger dynamic
QUATERLY FINANCIAL RESULTS CONCESSIONS BUSINESS - OPAIN Q1-2020 Opain results affected by the Covid– 19 related passenger dynamic Passengers Millions of passengers (PAX) Revenues COP billion 11 9.52 9.14 9 8.06 8.48 3.05 7.56 →Var A/A: -2% 263 250 2.80 7 2.87 2.85 2.45 → Var A/A: -15% -5% 5 3 5.63 6
Slide 24: Cement Business
QUATERLY FINANCIAL RESULTS CEMENT BUSINESS 24 May 2020
Slide 25: Faced with adversity, we trust in a positive outlook for the cement sector
QUATERLY FINANCIAL RESULTS CEMENT BUSINESS Q1-2020 Faced with adversity, we trust in a positive outlook for the cement sector USD 3 billion in Infrastructure investments • Government aid package proposal • USD 1 billion has already been approved 22 4G concessions currently under construction • 95% r
Slide 26: United States and Haiti continue normal operations as essential activities
QUATERLY FINANCIAL RESULTS CEMENT BUSINESS Q1-2020 United States and Haiti continue normal operations as they are considered essential activities Cement volumes* Tons, thousand Cement sales 34% -1.2% Y/Y -14% Y/Y -4% Y/Y 36% USA 3,6 COL -6% mm TM C y CA 1Q2019 1TQ020 30% Ready mix volumes* Miles de
Slide 27: Colombia's Ebitda margin grows
QUATERLY FINANCIAL RESULTS CEMENT BUSINESS Q1-2020 Colombia’s Ebitda margin grows 15% Revenues COP billion EBITDA COP billion Controller net profit COP billion 400 362 2 5 11 9 343 350 -36 15 300 250 0% -5% 200 351 150 -73% 100 4 -2% 50 0 1T2019 1T2020 1T2019 Mar-2019 USA COL C y CA Otros 1T2020 Mar
Slide 28: Energy Business
QUATERLY FINANCIAL RESULTS ENERGY BUSINESS 28 May 2020
Slide 29: Energy operations show resilient results under current conditions
QUATERLY FINANCIAL RESULTS ENERGY BUSINESS Q1-2020 Energy operations show resilient results under current conditions No debt maturity for the next 2 years • Only working capital lines mature San Andrés de Cuerquia begins operations • 157 GWh generation capacity COP 44 billion in payments to supplier
Slide 30: More balanced portfolio between Generation and Transmission & Distribution
QUATERLY FINANCIAL RESULTS ENERGY BUSINESS Q1-2020 More balanced portfolio between Generation and Transmission & Distribution Generation* GWh Breakdown of generation 6.6% 0.9% 14.1% Gx Hidro -4% 1,186 Gx Termo GX Eólica GWh Gx Solar 1Q2019 1Q2020 78.4% Change in electricity sales GWh NOTES Energy sa
Slide 31: Colombia contributes 22% more Ebitda year-on-year including Tolima
QUATERLY FINANCIAL RESULTS ENERGY BUSINESS Q1-2020 Colombia contributes 22% more Ebitda year-on-year including the operations in Tolima Revenue COP bn EBITDA COP bn Controller net profit COP bn +11% Y/Y +22% Y/Y +6% Y/Y 65 -5% Y/Y 34 +8% +20% +90% 1Q2019 1Q2020 1Q2019 1Q2020 Mar-2019 1Q2019 Mar-2020
Slide 32: Real Estate Business
QUATERLY FINANCIAL RESULTS REAL ESTATE BUSINESS 32 May 2020
Slide 33: Real Estate Business achieved COP 12 billion in cash flow
QUATERLY FINANCIAL RESULTS REAL ESTATE BUSINESS Q1-2020 The Real Estate Business achieved COP 12 billion in cash flow, growing close to 50% year-on-year Revenue of COP 86 bn during Q120 (+26% YOY), due to We continue working with our clients and currently have increases in GLA and AUM over the past
Slide 34: Net Operating Income grew 26% YOY normalizing land tax payments
QUATERLY FINANCIAL RESULTS REAL ESTATE BUSINESS 1T2020 Net Operating Income grew 26% YOY normalizing land tax payments Participation % GLA m2 3% 5% 25.6% 26% Comercio Retail 37.2% Conconcreto Oficinas Offices Grupo Argos 828,525 Hoteles Hotels Industria Protección m2 Industry Internacionales Interna
Slide 35: Investor relations contacts
QUATERLY FINANCIAL RESULTS CEO Jorge Mario Velasquez CFO Alejandro Piedrahita IR Director Natalia Agudelo Tel: (574) 319-8712 E-mail: nagudelop@grupoargos.com IR Analyst Jaime Andres Palacio Tel: (574) 3198400 ext 22388 E-mail: jpalaciop@grupoargos.com www.grupoargos.com 35 May 2020
Slide 36: Quarterly Financial Results May 2020
QUATERLY FINANCIAL RESULTS 36 May 2020