Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2017 Earnings Presentation
27 slides from Grupo Argos's earnings presentation, 2018
Slide 1: Results Presentation 4Q2017
Results Presentation 4Q2017
Slide 2: Important Note
IMPORTANT NOTE This presentation contains certain forward-looking information and statements related to GRUPO ARGOS and its subsidiaries that are based on knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events. Many factors could cause the future res
Slide 3: Strategy: 2017 dynamism and discipline in implementation
STRATEGY 2017: MARKED BY THE DYNAMISM AND DISCIPLINE IN THE IMPLEMENTATION OF OUR STRATEGY THAT HAS TRANSLATED INTO THE STRENGTHENING OF OUR BUSINESSES MAXIMIZING PORTFOLIO VALUE ACTIVE MANAGER Profitable Growth Portfolio Profitability Strategic, selective, and profitable Capture Synergies and Effic
Slide 4: Gold Class distinction in RobecoSAM's Sustainability Yearbook
STRATEGY GRUPO ARGOS AND ITS SUBSIDIARY ARGOS RECEIVED THE GOLD CLASS DISTINCTION IN ROBECOSAM’S SUSTAINABILITY YEARBOOK Sustainability as the pivot of our strategy ▪ Grupo Argos and its subsidiary Cementos Argos received the Gold Class distinction in RobecoSAM’s sustainability yearbook, placing the
Slide 5: Grupo Argos
Grupo Argos
Slide 6: Executive Summary
EXECUTIVE SUMMARY STRATEGY FOCUSED ON EFFICIENT CAPITAL ALLOCATION PROVES GREATER PROFITABILITY AT THE CONSOLIDATED LEVEL AND GROWTH IN EARNINGS AT THE INDIVIDUAL LEVEL CONSOLIDATED RESULTS 2017 2017consolidated ▪ Stable revenues in 2017 of COP 14.6tr with a greater contribution from the concessions
Slide 7: Consolidated
CONSOLIDATED HISTORICAL EBITDA OF COP 3.9 TR AT THE CONSOLIDATED LEVEL RELEVANT FIGURES NOTES Consolidated Income Statement 1 ✓ Decrease of 4% in revenues for the quarter due to the sale of portfolio in 2016 of COP 374 COP bn 4Q2017 4Q2016 YoY 2017 2016 YoY bn, that was registered in 4Q16 ✓ Revenues
Slide 8: Consolidated: business contribution to revenue and EBITDA
CONSOLIDATED AND THE POSITIVE CONTRIBUTION IN REVENUE AND EBITDA FROM ITS CORE BUSINESSES BUSINESS CONTRIBUTION REVENUES (COP bn) 3,724 + 103 + 28 + 153 3,585 38% - 108 -6 - 308 -0 -4% 62% BUSINESS CONTRIBUTION EBITDA (COP bn) + 119 972 861 + 14 + 43 + 50 -7 - 105 -4 +13% • Portfolio includes divide
Slide 9: Individual
INDIVIDUAL INDIVIDUAL EBITDA AND NET PROFIT GROW 19% AND 29% RESPECTIVELY RELEVANT FIGURES NOTES Individual income statement COP bn 4Q2016 1 4Q2017 Var (%) 2017 2016 Var (%) ✓ Fourth quarter with big distortions that difficult comparability. Lower revenues due to: proforma ✓ Financial revenue in 201
Slide 10: Individual: leverage indicators
INDIVIDUAL LEVERAGE INDICATOR AT THE INDIVIDUAL LEVEL CLOSESS AT A MINIMUM OF 2.3X… DEBT LEVERAGE RATIOS COP bn Adjusted EBITDA (12 months)** 1,567 dic-2016 Dec 2016 dic-2017 Dec 2017 • dec-2016: 558 +9% 1,442 • dec-2017: 679 350 Max: 4.0x Papeles Max: 3.5x comerciales 892 759 Bonos COP 4.7x 4.9x 2.
Slide 11: Individual: cash position and cash flow
INDIVIDUAL WITH A SOLID CASH POSITION OF COP 313 BN CASH FLOW NOTES COP bn Net from the operation** 1 Revenues from the operation COP 462 bn, dividends payed for COP 258 bn Dividendos netos 204,003 1 RevenuesNDU UDB 2 Divestment of lots: COP 102 bn Ingresos +80,181 2 3 Divestment of 2,226,861,766 sh
Slide 12: Concessions Business
Concessions Business
Slide 13: Executive Summary
EXECUTIVE SUMMARY CONSTRUCTION WORKS PROGRESS IN SCHEDULE WITH PACÍFICO 2 STANDING OUT FROM THE 4G PROGRAM HIGHLIGHTS OF THE QUARTER 4Q17consolidated ▪ First disbursement of funding (debt) for Pacifico 2, for approximately COP 1.3 tr ▪ Fifth project of the 4G program to receive its disbursement unde
Slide 14: Operational Results
OPERATIONAL RESULTS INCREASE OF TRAFFIC IN PACIFICO 2, IN LINE WITH PROGRESS OF THE CONSTRUCTION WORKS AVERAGE DAILY TRAFFIC 4T2017 Thousand vehicles +3.7% 77.1 AKF 74.4 4 Boulevard Turístico del 3 Total vehicle traffic in 2017 of 12.7 mm (+2.1%) in line with the economic growth of the region. 11 At
Slide 15: Financial Results
FINANCIAL RESULTS IMPROVEMENT IN QUARTERLY AND YEAR PROFITABILITY. EBITDA MARGIN OF 63% FOR 2017 REVENUES EBITDA EBITDA Margin COP bn COP bn 1,486 1,066 21% 46% 2016 747 61% +10% 747 55% 813 739 +66% 515 +1% 237 235 73% +243% 173 +9% 200 319 183 -14% 73 36% 50 2017 +53% 84 132 203 +66% 134 66% 81 18
Slide 16: Cement Business
Iv | wa GRUPO ARGOS
Slide 17: Executive Summary
EXECUTIVE SUMMARY PROGRESS IN THE IMPLEMENTATION OF THE OPERATIONAL EFFICIENCY PROGRAM, BEST, ALLOWED THE COMPANY TO ADAPT TO A CHALLENGING COMPETITIVE ENVIRONMENT HIGHLIGHTS OF 2017 4Q2017 ▪ ▪ Revenue of COP 8.5 tr and EBITDA of COP 1.4 tr USA regional became the geographic segment with the largest
Slide 18: Operational Results
OPERATIONAL RESULTS GROWTH IN CEMENT VOLUMES FOR THE QUARTER DRIVEN BY THE USA, THE CARIBBEAN, AND CENTRAL AMÉRICA CEMENT VOLUME CEMENT SALES (TMT) 4Q2017 +52% A/A* +10% A/A + 504 4,042 3,436 + 118 Colombia - 16 31% 36% -1% A/A 4,042 Caribe y CA (incl. +18% TMT Exportaciones) EEUU 33% 4T2016 4Q2016
Slide 19: Financial Results
FINANCIAL RESULTS BEST PROGRAM AND THE DIVERSIFICATION STRATEGY WERE DRIVERS TO FINISTH 2017 WITH A GRADUAL RECOVERY REVENUE EBITDA EBITDA Margin COP bn COP bn % +0.2% 8,517 8,533 *COP 1,479 adjusted 1,672 -15% Var. -11.5% 20% 2,004 +5% 2,107 398 -9% 1,422 20% 2016 20% 362 2,111 +4% 2,194 19% 413 +1
Slide 20: Energy Business
Energy Business
Slide 21: Celsia 4Q2017 Highlights
CELSIA STRATEGY FOCUSED IN DIFERENTIATION, INNNOVATION AND CUSTOMER SERVICE BEGINS TO RENDER RESULTS IN 2017 WITH AN EBITDA OF COP 1.1 TR, THE HIGHEST IN THE COMPANY’S HISTORY HIGHLIGHTS 2017 4Q2017 ▪ Historical high EBITDA of COP 1.1 tr during the year with a growth of 9% Y/Y ▪ Net income during th
Slide 22: Operational Results
OPERATIONAL RESULTS OPERATIONAL FIGURES THAT REFLECT A GREATER HYDRO GENERATION FROM EPSA AND HIGHER SALES OF ENERGY GENERATION GENERATION MIX GWh GWh Celsia 5% + 294 Zona Franca 1,769 1,586 5 -109 15% -6 1,760 12% CA 17% GWh EPSA 63% Generación Energy 4T16 Generation Celsia Celsia Zona Zona Franca
Slide 23: Financial Results
FINANCIAL RESULTS THAT TRANSLATE INTO EXCEPTIONAL OPERATING RESULTS, WITH AN EBITDA MARGIN FOR THE QUARTER OF 38% REVENUES EBITDA EBITDA MARGIN COP bn COP bn % 3,795 -18% +9% 1,124 1,031 793 32% +4% 3,094 +21% 309 256 32% 2016 777 824 30% +1% +20% 20% 246 294 785 862 +6% 38% -14% 263 279 743 37% 201
Slide 24: Structure simplification and strengthening of the energy business
STRATEGY STRUCTURE SIMPLIFICATION AND STRENGTHENING OF THE ENERGY BUSINESS AN IMPORTANT STEP TOWARDS PROFITABLE GROWTH • Múltiplos Strategic Rational • Múltiplos Celsias Equity Follow-on Results Múltiplos •Epsa´s Tender Offer Results • Consolidation of the energy business in a single vehicle Follow
Slide 25: Real Estate Business
Real Estate Business
Slide 26: Executive Summary
EXECUTIVE SUMMARY NEGOTIATION OF LAND ADVANCES AND GROWTH IN THE REAL ESTATE FUND STRENGTHENS WITH A GLA OF 721,000 m2 Urban Development ▪ Progress in the negotiation of land. ▪ Pactia´s unit value has yielded 7.55% since its start in January 20, 2017. Unit ▪ For the quarter, 8,430 m2 were sold and
Slide 27: Operational Results: Pactia real estate private equity fund
OPERATIONAL RESULTS OPERATIONAL FIGURES– REAL ESTATE PRIVATE EQUITY FUND, PACTIA STAKE IN PACTIA GLA % m2 9.6% 9.6% 17.60% 17.6% 40.0% 40.0% 40.1% 44.1% 2% 3% 39.8% 39.8% 36.3% 36.3% 16% Commerce Comercio Proteccion 32% Industry Industria Grupo Argos 60.0% 60.0% 59.9% Conconcreto 721,229 Offices Ofi