Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q3 2023 Earnings Presentation
43 slides from Grupo Argos's earnings presentation, November 2023
Slide 1: Results Presentation Third Quarter November 2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Results Presentation Third Quarter November2023 1 Noviembre 2023
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: Cementos Argos to combine its U.S. operations with Summit Materials
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Transformational milestone for its history of growth and value creation: Cementos Argos has agreed to combine its U.S. business operations with Summit Materials This transaction was driven by Grupo Argos to accelerate Cementos Argos' growth platform in the Uni
Slide 4: Strategic move values U.S. operations at around USD 3.2 billion
PRESENTACIÓN DE RESULTADOS TRIMESTRALES This is a strategic move that opens doors to new opportunities in the United States and values our operations in the United States at around USD 3.2 billion. Leveraged by our regional presence and strong platform in the U.S.... We have been able to evince addi
Slide 5: Cementos Argos will contribute a multiple of 12x to its U.S. operations
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cementos Argos will contribute a multiple of 12x to its U.S. operations considering the EBITDA generated over the last 12 months STOCK CONSIDERATION CASH CONSIDERATION1 US$36.0 54.7 million US$1.2 bn Price per share1 # CemArgos shares Subject to closing adjust
Slide 6: Value received is over 3.3x Cementos Argos' market cap
PRESENTACIÓN DE RESULTADOS TRIMESTRALES The value in shares and cash that Cementos Argos will receive is over 3.3x Cementos Argos’ market cap on the Colombian Stock Exchange. STRATEGICALLY ALIGNED WITH OUR ...IT POSITIONS THE COMPANY TO ...CRYSTALLIZED IN A TRANSFORMATIONAL TRANSACTION... INVESTMENT
Slide 7: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 7 Noviembre 2023
Slide 8: Consolidated results grow compared to the previous year
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Consolidated results grow compared to the previous year Net income controlling Revenue EBITDA Net Income interest Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +32% +9% +13% +14% +13% +33% +56% 17.0 908 15.6
Slide 9: Sound separated results for Grupo Argos
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Sound separated results for Grupo Argos Revenue EBITDA Net Income Figures in COP bn Figures in COP bn Figures in COP bn +101% +32% +113% +14% +13% +144% 1,254 930 822 623 437 337 3T2022 Sep22 3T2023 Sep23 3T2022 3T2023 3T2022 3T2023
Slide 10: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 10 Noviembre 2023
Slide 11: CemArgos: Strategic and profitability milestones
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 CemArgos: Strategic and profitability milestones Cement Infra Portfolio Progress with closing the deal to combine operations with Summit Materials • October 23 marked the end of the Hart-Scott-Rodino Act waiting period, with no antit
Slide 12: CemArgos: EBITDA Margin reaches 24%
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 CemArgos: EBIDTA Margin reaches 24% Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 3Q2023 vs 3Q2022 -1% 3Q2023 vs 3Q2022 +23% Cemento RMC (YOY) (YOY) 6 6.000 -4% 3,382 3,332 722 3,118 3,138 3,087 662 5 5.000 4.172 60
Slide 13: Celsia: Prioritizing El Niño mitigation strategies
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Celsia: Prioritizing implementation of El Niño Phenomenon mitigation strategies Cement Infra Portfolio Expansion milestone: Acquisition of a wind project in Perú • Acquired the 218 MW capacity Caravelí Wind Project from Grupo Ibereól
Slide 14: Celsia: Company revenue grows 14% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Celsia: Company revenue grows +14% YOY Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 3Q2023 vs 3Q2022 +14% 3Q2023 vs 3Q2022 +0% (YOY) (YOY) -10% 2,000 2,000 Generación Comercialización 1,764 1,767 514 1,620 481 1,8
Slide 15: Odinsa: Concluded the airport vertical with good traffic dynamics
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Odinsa: Concluded the airport vertical together with good traffic dynamics Cement Infra Portfolio The El Alambrado Bridge was inaugurated in October • Cutting edge engineering work allowed delivering this bridge, which normalizes ope
Slide 16: Odinsa: ADT slightly reduced by traffic affected on AKF
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Odinsa: ADT slightly recued by traffic affected on AKF Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles 3Q2023 vs 3Q2022 IRR (E) -17% +7% +2% -3% 12% 38.8 39.2 38.2 32.3 22.7 23.1 22% 6.6 7.1 15% AKF P2 MVM
Slide 17: Odinsa: Traffic grows 10% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Odinsa: Traffic grows 10% YOY Cement Infra Portfolio Passengers - Millions IRR (E) 10.4 17% 9.5 13% 1.2 1.5 OPAIN Quiport sep-22 sep-23 • Increased profitability explained by improved equity flows 11.9 million PAX 18 Noviembre 2023
Slide 18: Pactia: EBITDA for the quarter grows 14%
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Pactia: EBITDA for the quarter grows 14% compared to the third quarter of the previous yearCement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 1,400 2Q2023 vs 2Q2022 +10% 2Q2023 vs 2Q2022 +14% (YOY) (YOY) 110 111 113
Slide 19: Real Estate Business: Cash revenue and cumulative P&L up
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Real Estate Business: Cash revenue and cumulative P&L +34% YOY and +46% YOY respectivelyCement Infra Portfolio Real Estate Business Sofitel Baru Cash flow1 Sep-2023 Sep-2022 Var (%) Revenue 166 124 34% Net cash flow 61 47 29% • Incre
Slide 20: Consolidated and separated financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Consolidated and separated financial results 21 Octubre2023
Slide 21: Revenues up 9% and EBITDA up 13% year-to-date
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Revenues up 9% and EBITDA up 13% year-to-date Summary P&L Quarterly Results Cumulative Results YTD COP bn 3Q - 2023 3Q - 2022 Var.(%) Sep-23 Sep-22 Var.(%) Revenue 4,844 5,088 -5% 16,982 15,600 9% Costs, expenses, and other revenue O
Slide 22: Reduced revenue due to deconsolidation of concessions assets
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Reduced revenue due to deconsolidation of assets in the concessions business Consolidated revenue COP bn Consolidated EBITDA COP bn 7,000 1 142 11 1,283 6,000 222 1,269 0 5,088 -91 5,000 39 15 4,844 -49 -37 -458 -25 4,000 3,000 2,000
Slide 23: Increased expenditure from improved operational dynamics and inflation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Increased expenditure associated with improved operational dynamics and inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa Expenditure -3% +15% -10% -10% 468 314 452 Odinsa 86 272 77 20 18 3Q2022
Slide 24: Grupo Argos sound equity structure supported by a AAA rating
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Grupo Argos sound equity structure supported by a AAA rating Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 12,570 14,134 14,431 12,028 692 1,295 399 291 740 454 1,381 1,613 201 692 493 32 369 5,536 5,565 5,6
Slide 25: Separated EBITDA grows 113% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Separated EBITDA grows 113% YOY Summary P&L Quarterly Results Cumulative Results YTD COP bn 3Q - 2023 3Q - 2022 Var.(%) Sep-23 Sep-22 Var.(%) Revenue 270 166 62% 1.254 623 101% Costs and other expenditures 57 29 98% 197 68 187% GA Ex
Slide 26: Separated revenue was COP 555 billion during 3Q2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Separated revenue was COP 555 billion during 3Q2023 Revenue distribution 3Q2022 COP bn % Variation (YOY) +115% n/a +271% -33% +24% -128% +62% +999000% +499000% -1000% 270 -2 59 31 107 76 Real Estate Negocio Business Inmobiliario Fina
Slide 27: Available as of Sep-23: COP bn; financial returns surpass COP 79 billion
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Available as of Sep-23: COP 901 bn . Financial returns surpass COP 79 billion Cash flow Notes COP million COP million 1. Div. received: 773,139. Div. Paid: 358,048 415,091 1 Dividendos netos 2. 275,906 from sale of share in Opain (91
Slide 28: Hedging and ESG loan with Bancolombia reduce Kd by 580 bps
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Hedging and compliance with the ESG loan with Bancolombia reduce Kd by 580 bps to 9.9% Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Net Debt = 0,71 tn (-36% YOY) 0% 0% 0% 21% 32% 0% 33% 0% 14% 13%
Slide 29: Real Estate Business received 2023 National Award for Social Responsibility
PRESENTACIÓN DE RESULTADOS TRIMESTRALES REAL ESTATE BUSINESS Real Estate Business received the 2023 National Award for Social Responsibility from Camacol for its Reciclemos Juntos Barú project • At the Colombian Construction Congress held by Camacol in Barranquilla, Guillermo Herrera, the executive
Slide 30: 2023 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 2023 Results Guidance 22.0 - 22.5 5.2 - 5.5 COP trillion COP trillion 2023e Revenue 2023e EBITDA Guidance for 2023 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions) 31 Octubre2023
Slide 31: Annexes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 32 Octubre2023
Slide 32: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 33 Octubre2023
Slide 33: Cement volumes end the quarter at 4.0 million tons shipped
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Cement volumes end the quarter at 4.0 million tons shipped Cement Volumes millions of tons Concrete Volumes millions of m3 1 USA COL C y CA USA COL C y CA 4.2 0.06 0.0 0.13 4.0 1.9 1.0 0.1 1.7 0.9 0.1 0.0 0.1 0.1 0.7 0.6 1.5 1.5 -5%
Slide 34: The company's net income grows 259% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 The company’s net income grows 259% YOY Revenue COP bn Ebitda COP bn Net income to the controlling COP bn interest 250 3,118 3,087 722 64 289 104 51 80 208 -41 -344 583 -96 200 150 100 58 50 -1% +24% +259% 0 3Q - USA COL CC & CA Othe
Slide 35: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 36 Noviembre 2023
Slide 36: Generation for the quarter dropped compared to prior year
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Generation for the quarter dropped compared to the same period the previous year Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regulado Regulated 1,801 1,400 1,022 1,254 1,594 942
Slide 37: Revenue at Celsia growing by double digits
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Revenue at Celsia growing by double digits Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 204 1,481 32 424 414 87 1,300 -23 113 82 -42 40 136 58 1,368 1,164 374 342 +14% -2% -33% 3Q 3Q - 2022 COL
Slide 38: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 39 Noviembre 2023
Slide 39: Roadways: Stable ADT YTD
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Roadways: Stable ADT YDT Autopistas del Café ADT per month and YTD (thousands of vehicles) Túnel de Oriente ADT per month and YTD (thousands of vehicles) Pacífico 2 ADT per month and YTD (thousands of vehicles) -11% -10% -10% -17% -1
Slide 40: Roadways: Asset performance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Roadways: Asset performance Revenue % Variation (YOY) +34% +12% -11% +152% 86.098 79.091 77.107 65.94 64.19 59.244 58.692 25.446 Túnel de Oriente Pacífico 2 AKF Malla Vial del Meta 2022 2023 EBITDA % Variation (YOY) +16% +16% -30% -1
Slide 41: Airports: Quiport exceeds pre-pandemic levels, Opain +13% vs 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 3Q2023 Airports: Quiport exceeds pre-pandemic levels since April, Opain +13% vs 2019 Opain: Monthly passengers Millions of Quiport: Monthly passengers Thousands of PAX PAX +11% +1% +4% +7% +9% +11% +7% +9% +41% +25% +20% +34% +27% +19% +21%
Slide 42: www.grupoargos.com
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velasquez Alejandro Piedrahita Chief Officerfor Corporate Affairs IR Director Senior Lead Juan Esteban Mejia Carolina Arango David González (574) 315 8400 315 8400 315 8400 jemejia@grupoargos.com carangoz@grupoargos.com dgonzalez@grupoargos
Slide 43: PRESENTACIÓN DE RESULTADOS TRIMESTRALES Noviembre 2023
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 44 Noviembre 2023