Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q2 2020 Earnings Presentation
36 slides from Grupo Argos's earnings presentation, August 2020
Slide 1: Quarterly Earnings Presentation Second Quarter 2020
QUARTERLY FINANCIAL RESULTS Quarterly Earnings Presentation SECOND QUARTER 2020 Presentación Resultados Segundo Trimestre 2020 Agosto 2020 1 August 2020
Slide 2: Disclaimer
Resultados QUARTERLY PrimerFINANCIAL Trimestre RESULTS 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 forecasts, circums
Slide 3: COVID-19 Management
QUARTERLY FINANCIAL RESULTS COVID-19 Management 3 August 2020
Slide 4: Our collaborators: a key part of our success in implementing our COVID-19 strategy
QUARTERLY FINANCIAL RESULTS SITUATION MANAGEMENT Our collaborators: a key part of our success in implementing our COVID-19 strategy Transcendence Inspiration Integrity Commitment PURPOSE “At Grupo Empresarial Argos we positively transform people’s lives through our investments and operations in thos
Slide 5: The five priorities identified have proven to be in the right path
QUARTERLY FINANCIAL RESULTS SITUATION MANAGEMENT The five priorities identified have proven to be in the right path 1. Life, Health and 2. Care for 3. Operational 4. Philanthropy and 5. Institutional Wellbeing Employment Continuity corporate citizenship Support Our number one priority is Preserve em
Slide 6: From a COP 2.3 tn identified savings in March to COP 2.8 tn in June
QUARTERLY FINANCIAL RESULTS BUSINESS CONTINUITY From a COP 2.3 tn identified savings in March to COP 2.8 tn in June CAPEX $ 415 $ 868 1 (COP billion) $ 293 $ 160 OPEX $ 45 $ 324 $ 119 $ 20 $ 508 2 (COP billion) Liquidity Credits 3 (COP billion) $ 443 $ 400 $ 117 $ 150 $ 1,394 Taxes devolutions 4 (CO
Slide 7: Confirms a positive trend towards business recovery
QUARTERLY FINANCIAL RESULTS BUSINESS CONTINUITY Confirms a positive trend towards business recovery Monthly Revenues COP billion Monthly EBITDA COP billion 7,630 2,037 -22% -12% -9% -9% -22% -16% +1% -15% 1,272 6,962 1,175 1,188 1,196 366 1,709 1,096 984 306 287 245 256 199 +9% +84% Enero Febrero Ma
Slide 8: Grupo Argos Consolidated Results Q2'2020
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Proportional variation in revenue and Ebitda confirmed our commitment to reduce costs and expenses RELEVANT FIGURES COP billion 2Q - 2020 2Q - 2019 Var.(%) Jun-2020 Jun-2019 Var.(%) Revenue 3,346 3,915 -15% 6,962 7,630 -9% Cost, ex
Slide 9: Contributions by businesses exceed the expectation made at the beginning of the pandemic
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Contributions by businesses exceed the expectation made at the beginning of the pandemic Contribution by business to consolidated revenue 2Q2020 COP billion -15% 2Q2019 Cement Energy Real estate Portfolio Coal Concessions Other 2Q2
Slide 10: Decrease in SG&A proof of our rapid capacity for responding
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Decreased in SG&A proof our rapid capacity for responding to the current situation Consolidated1 COP billion -14% 459 394 -23% +8% -7% 261 103 96 201 77 71 103 96 Opain Opain Odinsa 54 52 Mar-2019 2Q2019 Mar-2020 2Q2020 2Q2019 Mar-
Slide 11: Financial expenses remain constant despite the effect of devaluation on consolidated debt
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS CONSOLIDATED RESULTS Q2’2020 Financial expenses remain constant despite the effect of devaluation on consolidated debt Consolidated Debt COP billion Net Debt COP billion Net Financial Expenses COP billion 1,306 -545 17,785 18,454 345 - 16,734 330 - 1,742 16,65
Slide 12: Grupo Argos Individual Results Q2'2020
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS INDIVIDUAL RESULTS Q2’2020 Real Estate Business contribute with COP 40 bn in revenues from future divestments deals RELEVANT FIGURES COP billion 2Q - 2020 2Q - 2019 Var.(%) Jun-2020 Jun-2019 Var.(%) Revenue 28 96 -71% 229 404 -43% 16 6 181% 41 67 -39% 6 bn Cos
Slide 13: Controllable expenses decrease 13% YoY
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS INDIVIDUAL RESULTS Q2’2020 Controllable expenses decrease 13% YoY, adding to the efforts of the last 4 years 1. Revenue Distribution 2Q2020 COP billions 2. Equity Method Distribution 2Q2020 COP billions 96 65 3 -18 27 6 65 -71% 8 -120% 28 Act. Financiera Finan
Slide 14: Financial flexibility as no maturity until 2022
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS INDIVIDUAL RESULTS Q2’2020 Financial flexibility as no maturity until 2022 – Kd drops over 100 bp Indebtedness1 COP billions Profile of maturities (principal) COP billions 7% 0% 0% 22% 22% 15% 9% 0% 23% 0% 10% 37% 37% COP 1,742 mn INDEXED 212 Bonds Bonos 436 3
Slide 15: Fitch and S&P maintain Grupo Argos rating
QUARTERLY FINANCIAL RESULTS GRUPO ARGOS INDIVIDUAL RESULTS Q2’2020 Fitch and S&P maintain Grupo Argos rating and remain confident with the company´s strategy AAA <15% 4 - 4.5x 3.5x ~400 >450 Separado Stable < ISSUER RATING 2020-2021 2022 2020-2021 2022 FITCH1 May 2020 Debt / Portfolio value Debt / D
Slide 16: Separated Results Grupo Argos Q2'2020: cash flow
QUARTERLY FINANCIAL RESULTS SEPARATED RESULTS GRUPO ARGOS Q2’2020 COP 117 bn in cash as a response to the current situation Cashflow Notes COP billion -7 1. Dividends paid: COP 155 bn Dividends received: COP 148 bn 1 Dividendos netos Net dividends 2. Developed plots: COP 26 bn, Disinvestments: COP 3
Slide 17: Cement Business
QUARTERLY FINANCIAL RESULTS CEMENT BUSINESS 17 August 2020
Slide 18: Positive outlook for the cement sector
QUARTERLY FINANCIAL RESULTS CEMENT BUSINESS Q2’2020 Positive outlook for the cement sector, that starts to show signs of recovery RESET Action Plan • COP 940 bn in liquidity, increasing by COP 240 bn • Over USD 71 mn in savings June results start to evidence change in tendency • June Ebitda was of C
Slide 19: United States market continues showing resilience
QUARTERLY FINANCIAL RESULTS CEMENT BUSINESS Q2’2020 United States market continues showing resilience Cement volumes* Tons, thousand Cement sales 34% -6% A/A -46% A/A USA -24% A/A 3.2 COL -23% mm TM 45% C y CA 2Q2019 2Q2020 21% Ready mix volumes* thousand m3 Ready mix sales 3% 26% -6% A/A -56% A/A -
Slide 20: Best June results with Ebitda of COP 180 bn
QUARTERLY FINANCIAL RESULTS CEMENT BUSINESS Q2’2020 Best June results with Ebitda of COP 180 bn (+3% YOY) Revenue COP billion Ebitda COP billion Controller net profit COP billion 55 -9% -13% -79% 12 2Q2019 2Q2020 2Q2019 2Q2020 2Q2019 Jun-2019 2Q2020 Jun-2020 Income in COP affected by devaluation USD
Slide 21: Energy Business
QUARTERLY FINANCIAL RESULTS ENERGY BUSINESS 21 August 2020
Slide 22: Energy business operations are resilient in the face of the situation
QUARTERLY FINANCIAL RESULTS ENERGY BUSINESS Q2’2020 Energy business operations are resilient in the face of the situation COP 130 bn investment in Tolima • COP 600 bn will be invested over the first 5 years to improve service quality Strengthened service and support processes • Strengthened virtual
Slide 23: Positive balance between Generation and Transmission & Distribution
QUARTERLY FINANCIAL RESULTS ENERGY BUSINESS Q2’2020 Positive balance between Generation and Transmission & Distribution Generation* GWh Breakdown of generation * Excludes Purchases 4% 1% 4% Gx hidro -20% 971 Gx termo GX eólica GWh Gx solar 2Q2019 Purchases 2Q2020 91% Change in electricity sales GWh
Slide 24: Net profit of the controller grew over 3 times YoY
QUARTERLY FINANCIAL RESULTS ENERGY BUSINESS Q2’2020 Net profit of the controller grew over 3 times YoY Revenue COP bn EBITDA COP bn Controller net profit COP bn +6% A/A +26% A/A +7% A/A 73 -43% A/A -2.4% +9% +362% 16 2Q2019 2Q2020 2Q2019 2Q2020 Jun-2019 2Q2019 Jun-2020 2Q2020 Colombia (90% Revenue):
Slide 25: Concessions Business
QUARTERLY FINANCIAL RESULTS CONCESSIONS BUSINESS 25 August 2020
Slide 26: Odinsa has made efforts to ensure over COP 660 bn in financial flexibility
QUARTERLY FINANCIAL RESULTS CONCESSIONS BUSINESS Q2’2020 Odinsa has made efforts to ensure over COP 660 bn, consolidating its financial flexibility Quiport restarts operations as of June 1st • Opain is prepared to restart flights with all the biosecurity protocols. Government studies new pilot route
Slide 27: 61% recovery in road traffic in June compared to June 2019
QUARTERLY FINANCIAL RESULTS CONCESSIONS BUSINESS Q2’2020 61% recovery in road traffic in June compared to the same month in 2019 Average daily vehicle traffic 1Q2020 Thousands of vehicle Notes on highways 97.4 • AKF: vehicular traffic at 60% compared to June 2019 21.4 • Túnel Oriente: vehicular traf
Slide 28: Lower income and ebitda from lower equity method contributions in airports
QUARTERLY FINANCIAL RESULTS CONCESSIONS BUSINESS Q2’2020 Lower income and ebitda from lower contributions from the equity method in the airport segment Revenue COP billion EBITDA COP billion Controller Net Profit COP billion 40.000 29 30.000 20.000 10.000 0.000 -10.000 -24% -31% -20.000 -30.000 -21
Slide 29: El Dorado airport remains closed for commercial flights
QUARTERLY FINANCIAL RESULTS CONCESSIONS BUSINESS - OPAIN Q2’2020 By order of the National Government, El Dorado airport remains closed for commercial flights Passengers Millions of passengers (PAX) Revenues COP billion 11 9.52 9.14 549 8.06 8.48 9 7.56 3.05 2.80 -51% 7 2.87 2.85 2.45 286 266 Total:
Slide 30: Real Estate Business
QUARTERLY FINANCIAL RESULTS REAL ESTATE BUSINESS 30 August 2020
Slide 31: Real Estate Business achieved COP 12 billion in free cash flow
QUARTERLY FINANCIAL RESULTS REAL ESTATE BUSINESS Q2’2020 The Real Estate Business achieved COP 12 billion in free cash flow, growing close to 50% year-on-year Pajonal – Puerto Colombia Project in Pajonal that optimizes land use with social housing and increases returns Does not compete with Pavas se
Slide 32: Pactia faces Covid-19 situation through a rigorous action plan
QUARTERLY FINANCIAL RESULTS REAL ESTATE BUSINESS Q2’2020 Through a rigorous action plan, Pactia faces Covid-19 situation Participation % GLA m2 2% 4% 25.6% 24% Comercio Retail 37.2% Conconcreto Oficinas Offices Grupo Argos 908,321 Hoteles Hotels Industria Protección m2 Industry Internacionales Inter
Slide 33: Sustainability
QUARTERLY FINANCIAL RESULTS SUSTAINABILITY 33 August 2020
Slide 34: We added 2.4 times the benefit to the corporation than we retained
QUARTERLY FINANCIAL RESULTS SUSTAINABILITY We added 2.4 times the benefit to the corporation than we retained, equivalent to USD 220 million Calue Added Statement of Grupo Argos (USD mn) ECONOMIC SOCIAL ENVIRONMENTAL 0.048 220.3 87.5 0.5 7.1 -0.008 -0.007 -0.033 19.4 13.4 92.4 Economic Dimension: So
Slide 35: Investor relations contacts
QUARTERLY FINANCIAL RESULTS CEO Jorge Mario Velasquez CFO Alejandro Piedrahita IRO 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 August 2020
Slide 36: QUARTERLY FINANCIAL RESULTS August 2020
QUARTERLY FINANCIAL RESULTS 36 August 2020