Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q3 2022 Earnings Presentation
43 slides from Grupo Argos's earnings presentation, Nov 1, 2022
Slide 1: Results Presentation 3Q 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Results Presentation 3Q 2022 November 2022 1 noviembre 2022
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: We reaffirm the importance of Argos USA listing within our strategic plans
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 We reaffirm the importance of Argos USA listing within our strategic plans Cement Alternative asset manager → Infrastructure Portfolio Energy ▪ Sura Argos Energy Energy Roadway Airport Argos USA Distribution Real Estate ▪ Nutresa COL & CCA
Slide 4: We continue to make progress in the consolidation of Grupo Argos Infra
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 We continue to make progress in the consolidation of Grupo Argos Infra Cement Alternative asset manager → Infrastructure Portfolio √ √ √ √ √ ▪ Sura Argos Energy Energy Energy Roadway Airport Real Argos USA ▪ Nutresa COL & CCA Generation Tr
Slide 5: Overview of the transaction with Macquarie
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Overview of the transaction Relevant information of the transaction + Asymmetrical returns are recognized 50% 50% COP$1,4bn to Odinsa for the execution of the AUM pipeline of the platform once a threshold of returns is achieved FCP Odinsa
Slide 6: New alliance with MIRA in airports as a relevant milestone for Odinsa's strategy
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 New alliance with MIRA in airports as a relevant milestone for Odinsa´s strategy as an asset manager Grupo Argos acquired a controlling stake of Odinsa Grupo Argos reached 98.6% stake of Odinsa with an additional investment for Acquisition
Slide 7: The year continues showing a strong operational and financial dynamic
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 The year continues showing a strong operational and financial dynamic Cement Infra Portfolio Revenue EBITDA Net Income Controlling Interest Units in COP tn Units in COP tn Units in COP bn Units in COP bn +31% +32% +14% +13% +10% +17% 15.6
Slide 8: Operating Results – Grupo Argos Businesses
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Operating Results – Grupo Argos Businesses Cement Infra Portfolio 8 noviembre 2022
Slide 9: CemArgos: relevant milestones for Argos USA
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CemArgos: relevant milestones for Argos USA Cement Infra Portfolio Milestones in Argos USA • Simon Bates was appointed as CEO of Argos USA. Simon has more than 30 years of experience, of which 25 have been in the construction materials sector • Argos North Ame
Slide 10: CemArgos: EBITDA grows +23% (y/y) during the third quarter
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 CemArgos: EBITDA grows +23% (y/y) during the third quarter Cement Infra Portfolio Operational1 Revenues2 COP bn EBITDA2 COP bn 3Q2022 vs 3Q2021 +25% 3Q2022 vs 3Q2021 +23% (A/A) (A/A) 3,118 Cemento RMC 2,851 583 542 6 -1,8% 6.00 2,489 2,537
Slide 11: Celsia: Operational excellence and market conditions fostered extraordinary results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Celsia: Operational excellence and market conditions fostered extraordinary results Cement Infra Portfolio The energy business continues reporting extraordinary results • EBITDA 3Q2022 COP 424 bn (+34%) • Net income reached COP 111 bn (+6%
Slide 12: Celsia: EBITDA grows 34% y/y
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Celsia: EBITDA grows 34% y/y Cement Infra Portfolio Operacional Ingresos1 COP bn EBITDA1 COP bn 3Q2022 vs 3Q2021 +33% 3Q2022 vs 3Q2021 +34% Generación Comercialización (A/A)1 (A/A)1 2,000 +14% 2,000 2 1,309 1,300 455 449 1,620 1,645 1 424
Slide 13: Odinsa: Accelerated growth of airport and roadway traffic continues
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Odinsa: Accelerated growth of airport and roadway traffic continues Cement Infra Portfolio Odinsa extended Alliance with MIRA to an aiport platform • 50% of the platform will be owned by Macquarie Asset Management, el largest asset manager
Slide 14: Odinsa: Accounting process before and after the toll roads platform
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Odinsa: Accounting process before and after the toll roads platform started to operate Cement Infra Portfolio Before Transaction Post Transction Odinsa 50% Odinsa vías vías 50% 100% Asociadas y Subsidiarias Subsidiaries Private Equity Fund
Slide 15: Odinsa: strong traffic dynamics within toll roads concessions
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Odinsa: strong traffic dynamics within toll roads concessions Cement Infra Portfolio Average Daily Traffic (ADT) - Thousand vehicles IRR (Expected) +21% -6% +0% +8% Malla Vial del Meta 39.2 38.9 38.8 11% 32.5 22% 21.1 22.7 Autopistas del C
Slide 16: Odinsa: strong traffic dynamics within airport concessions
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Odinsa: strong traffic dynamics within airport concessions Cement Infra Portfolio Passengers - Millions IRR (Expected) 9.5 18% vs 13% 3Q 2022 3Q 2021 6.1 11% vs 10,0% 3Q 2022 3Q 2021 1.3 0.7 Opain Quiport 3T2021 3T2022 3T2021 3T2022 • Bett
Slide 17: Pactia: EBITDA grows 35% (y/y)
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Pactia: EBITDA grows 35% (y/y) Cement Infra Portfolio Operational Revenues COP bn EBITDA COP bn GLA 3Q2022 vs 3Q2021 +17% 3Q2022 vs 3Q2021 +35% (A/A) (A/A) 1,400 108 53 52 103 51 98 1,200 88 85 39 1,000 852 805 GLA ('000) 30 800 600 -5% 40
Slide 18: NDU: Progress in Barranquilla and Baru continues
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 NDU: Progress in Barranquilla and Baru continues Cement Infra Portfolio Financial Results COP bn Urban developement in Barranquilla Cash Flow1 YTD 2022 YTD 2021 Var (%) Revenue 124 79 57% Net Cash Flow 52 21 150% • During this quarter, the
Slide 19: Consolidated and separated financial results
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Consolidated and separated financial results 20 noviembre 2022
Slide 20: Cumulative EBITDA reach COP 3.9 tn, +14% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Cumulative EBITDA reach COP 3.9 tn, +14% YOY Consolidated Summary P&L Quarterly Resulta Cumulative Results for the Year COP bn 3Q - 2022 3Q - 2021 Var.(%) sep-22 sep-21 Var.(%) Revenues 5.088 4.115 24% 15.600 11.875 31% Costos, expenses +
Slide 21: 24% revenue growth (YOY) and 9% EBITDA growth (YOY)
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 24% revenue growth (YOY) and 9% EBITDA growth (YOY) Consolidated revenue COP bn Consolidated EBITDA COP bn 1,500 6,000 111 10 1,269 4 5,088 1,300 111 278 80 1,159 -83 -19 -20 629 5,000 -7 -12 1,100 4,115 4,000 900 3,000 700 500 +24% +9% 2,
Slide 22: Increased expenditure associated with improved operational dynamics and inflation
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +15% +25% +12% -4% 468 272 Odinsa OPAIN 86 92 88
Slide 23: Financial discipline, cash flow generation and divestments reduce indebtedness
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Financial discipline, cash flow generation and divestments result in reduced indebtedness Consolidated Debt COP bn Net Debt1 COP bn Financial Expenses COP bn 17,059 369 15,710 16,041 1,645 1,053 29 1,381 1,640 -2,401 13,931 23 4,701 2,268
Slide 24: Separated EBITDA grows 8% YOY
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Separated EBITDA grows 8% YOY Separated P&L Summary Quarterly Results Cumulative Results for the Year COP bn 3Q - 2022 3Q - 2021 Var.(%) sep-22 sep-21 Var.(%) Revenues 166 171 -3% 623 580 8% Costs and other expenses 29 15 85% 68 80 -15% SG
Slide 25: Separated revenue was COP 166 billion during 3Q2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Separated revenue was COP 166 billion during 3Q2022 Revenue distribution 3Q2022 COP bn Variación % (A/A) +999000% -18% n/a -38% +14% +29% +107% -3% ▪ Energy and concessions segments reported higher contribution to the revenues during the q
Slide 26: Treasury investments result in a positive carry regarding the cost of debt
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Treasury investments result in a positive carry regarding the cost of debt Cash Flow Notes COP mn COP mn 1 Dividendos netos 482,668 1. Div. received: 700,030 (Odinsa: 360,957). Div. Paid: 217,365 Ingresos NDU 123,948 2. 3,088,365 shares of
Slide 27: Cost of debt increases less than inflation thanks to hedging strategies
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Cost of debt increases less than inflation thanks to hedging strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Vida media (años) Kd (sin coberturas) 0% 0% 17% 26% 7% 10% 0% 28% 0% 12% Kd (Real) IP
Slide 28: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 Grupo Argos has the highest credit rating from Fitch and S&P AAA AAA 1 1 Stable Stable June 2022 May 2022 ▪ Credit quality and dividend flow stability even in challenging ▪ Fulfilment of key milestones that enabled debt reductions an
Slide 29: Sustainability
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Sustainability Grupo Argos is recognized as the #1 S&P ratifies Grupo Argos’ score company in the global ranking of The in its annual evaluation of global World's Top Female-Friendly Companies corporate sustainability Grupo Argos occupied
Slide 30: 2022 Results Guidance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS RESULTS 2Q2022 2022 Results Guidance 17.0 – 17.5 4.4 - 4.6 1.2 - 1.3 COP tn COP tn COP tn Revenue 2022e EBITDA 2022e Net Income 2022e Guidance for 2022 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions)
Slide 31: Annexes
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Annexes 32 noviembre 2022
Slide 32: Increased valuation potential according to current arbitrage prices
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Increased valuation potential according to current arbitrage prices Pgrupo Argos Arbitrage1 Price (30/09/2022) COP / Acción Historical Arbitrage Gap (Relative Prices) 120 Lockdown begins (Mar – 2020) +64% (acc. Ord) +169% (acc. Pf) 100 100 16,137 Precio de Arb
Slide 33: Cement Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Cement Business 34 noviembre 2022
Slide 34: Cement volumes end the quarter at 4.2 mm tons shipped
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Cement volumes end the quarter at 4.2 mm tons shipped (-1.8% YOY) Cement Volumes mm ton Concrete Volumes mm m3 USA COL C y CA USA COL C y CA 0.15 4.2 0.1 4.2 0.1 0.0 1.9 0.0 1.8 0.1 0.0 0.0 1.2 1.0 0.7 0.7 1.6 1.5 -1,8% +6% 1.1 1.1 1.5 1.6
Slide 35: Cost inflation affected margins for the period
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Cost inflation affected margins for the period even with 25% revenue growth Revenues COP bn Ebitda COP bn Net income controlling interest COP bn 4 3,118 100 68 113 26 10 583 444 80 2,489 473 -6 58 +25% 23% -97% 3Q - 3Q USA COL C y CA Otros
Slide 36: Energy Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Energy Business 37 noviembre 2022
Slide 37: Growth in P and Q support Celsia's good performance
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Growth in "P" and "Q" support Celsia's good performance for the period Generation (GWh) Energy Sales (GWh) Comercialization (GWh) COL C.A COL C.A No NoRegulado Regulado Regulado Regulado 908 32 2 942 1,400 145 14 1,801 150 21 1,641 1,229 2
Slide 38: Revenue, EBITDA, and Net Income continue growing by double digits at Celsia
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Revenue, EBITDA, and Net Income continue growing by double digits at Celsia Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 17 1,300 19 424 305 89 87 136 82 978 316 119 64 1,164 342 77 859 253 +14% +33%
Slide 39: Concessions Business
PRESENTACIÓN DE RESULTADOS TRIMESTRALES Concessions Business 40 noviembre 2022
Slide 40: Airport traffic in september 2022 was higher than in september 2019
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Airport traffic in september 2022 was higher than in september 2019 Average Daily Traffic Thousand cars Tráfico aeropuertos (PAX mm) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 6.7 128.5 1.6 10.8 -0.1 -0.4 7.6 0.5 107.3 1.3 21.4 -21.4 -7.6 3.4 +
Slide 41: Opain ends September with 3.1 million PAX mobilized
PRESENTACIÓN DE RESULTADOS TRIMESTRALES GRUPO ARGOS - 3Q2022 Opain ends September with 3.1 million PAX mobilized, +5% compared to september 2019 Passangers Milion Passangers (PAX) 3.1 2.8 Doméstico Internacional 3.0 2.9 3.0 3.0 3.1 3.2 3.2 3.1 2.7 2.6 2.4 2.2 1.6 1.8 2.1 2.1 2.0 1.4 1.3 1.1 1.4 1.2
Slide 42: CEO, CFO, IR Manager
PRESENTACIÓN DE RESULTADOS TRIMESTRALES CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Juan Esteban Mejia Carolina Arango Tel: (574) 315 8400 Tel: (574) 315 8400 E-mail: jemejia@grupoargos.com E-mail: carangoz@grupoargos.com www.grupoargos.com 43 noviembre 2022
Slide 43: PRESENTACIÓN DE RESULTADOS TRIMESTRALES noviembre 2022
PRESENTACIÓN DE RESULTADOS TRIMESTRALES 44 noviembre 2022