Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (May 2021)
31 slides from Grupo Argos's investor presentation, May 2021
Slide 1: Grupo Argos Corporate Presentation
CORPORATE PRESENTATION Grupo Argos Corporate Presentation May 2021 1 May 2021
Slide 2: Important Note
CORPORATE 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, circumstances and assumptions regarding future events. Many factors could c
Slide 3: CORPORATE PRESENTATION May 2021
CORPORATE PRESENTATION 3 May 2021
Slide 4: Focus shift from 2012 to 2021
CORPORATE PRESENTATION 2012 2021 FOCUS: Investments related with the cement FOCUS: Infrastructure asset manager, focus on capital industry allocation ASSETS: In different sectors and segments of ASSETS: Articulated portfolio focused on cement, the economy energy, concessions and real estate MANAGEME
Slide 5: Grupo Argos at a glance
CORPORATE PRESENTATION CURRENT FOOTPRINT Grupo Argos at a glance Liquid vehicle1 to invest in infrastructure in Colombia Strategic focus in Cement, Energy, Road and Airport 3 REGIONS Concessions 18 Solid and articulated portfolio with ~ USD 15 billion2 in consolidated assets Balanced in regions, cur
Slide 6: Strategic portfolio focused on infrastructure
CORPORATE PRESENTATION PORTAFOLIO DE INVERSIONES Strategic portfolio focused on infrastructure Revenue1: USD 3.8 bn EBITDA1: USD 0.9 bn Market Cap2: USD 2.6 bn 58% 53% 100% C C C Cement Energy Concessions Real Estate Portfolio Revenue1: USD 2.5 bn Revenue1: USD 1.0 bn Revenue1: USD 0.3 bn Value6 = U
Slide 7: Portfolio transformation and growth along with the acquisition of the concessions business
CORPORATE PRESENTATION PORTFOLIO TRANSFORMATION Portfolio transformation and growth along with the acquisition of the concessions business Consolidated Revenues Consolidated EBITDA +9.5% +9.8% Revenue CAGR 2012 – LTM (mar-21) Ebitda CAGR 2012 – LTM (mar-21) 16 4 14.1 3.5 14 4 7% 12 3 11% 25% 10 3 36
Slide 8: Value Generating Strategy of Grupo Argos
CORPORATE PRESENTATION STRATEGY Value Generating Strategy of Grupo Argos Track record that demonstrates Grupo Argos’ Focus in profitable growth and realocation of capacity to aquire and transform assets into capital to optimize the return over invested regional leaders capital Regulated and stable a
Slide 9: Odinsa – 2020 milestones and value generation perspective
CORPORATE PRESENTATION STRATEGY Odinsa – 2020 milestones and value generation perspective DURING 2020 WE ACCOMPLISHED: COP 400 bn 1 +120 basic points -40% initial project equity 99% work progress Negotiations with grantors to Increase in the expected IRR The investment commitments of mitigate the im
Slide 10: Celsia – 2020 milestones and value generation perspective
CORPORATE PRESENTATION STRATEGY Celsia – 2020 milestones and value generation perspective DURING 2020 WE ACCOMPLISHED: 1.2 mm clients +30 MW solar 2.8x net debt / EBITDA COP 777 bn Served at the end of 2020 with In addition to the solar roofs, that Enables firepower for growth Invested during 2020 t
Slide 11: Cementos Argos – 2020 milestones and value generation perspective
CORPORATE PRESENTATION STRATEGY Cementos Argos – 2020 milestones and value generation perspective DURING 2020 WE ACCOMPLISHED: COP +1 trillion USD -115 million +5% Cement volumen +150 basic points In free cash flow achieved in 2020 Savings in costs and operating In December 2020 compared to The comp
Slide 12: Recovery in the first quarter of 2021 to improve margins and profitability
CORPORATE PRESENTATION FINANCIAL RESULTS Recovery in the first quarter of 2021 to improve margins and profitability Consolidated revenues of Grupo Argos (COP bn) Consolidated Ebitda of Grupo Argos (COP bn) CAGR (2014 – 2020) 7.1% CAGR EBITDA (2014 – 2020) 7.1% 16,799 28% 28% 18,000 6,000 27% 30% 14,
Slide 13: Dividends received
CORPORATE PRESENTATION DIVIDENDS RECEIVED Business diversification allows greater absorption of impacts on different businesses Historical Dividends COP bn Positive dividend spread 12% (received - paid) CAGR 2015 - 2020 COP bn 700 Millares 591 588 USD 600 130 mn1 14 27 314 115 293 70 482 462 500 25
Slide 14: Expenses have decreased significantly during the last years
CORPORATE PRESENTATION EXPENSES Expenses have decreased significantly during the last years Grupo Argos Expenditures COP bn Real Estate Business Expenditures COP bn Total Expenditures (GA) / AUM4 = 0.3% Real Estate Expense Detail 140 ▪ Property tax (2020) = COP 24 bn 140 ▪ Maintenance + vigilance of
Slide 15: Responsible cash management postposed short term investments at the holding level
CORPORATE PRESENTATION CASH FLOW Responsible cash management postposed short term investments at the holding level Cash Flow COP bn Notes 1. Dividends received: COP 137 bn, dividends payed: COP 80 bn 1 Net Dividends Dividendos netos 57 2. Developed lots: COP 17 bn, Others: COP 1 bn 2 Real Estate Rev
Slide 16: Cost of debt closes at 4.7% thanks to treasury management
CORPORATE PRESENTATION SEPARATED DEBT Cost of debt closes at 4.7% thanks to treasury management and the favorable rate environment Debit1 COP bn Maturity Profile (capital) COP bn Cost of debt 10.0% 9.0% 0% 8% 0% 26% 23% 0% 9% 0% 24% 0% 10% 30% 8% 8.0% 7.0% 30% Bonds Bonos 7.0% 5.6% 6.3 6.0 Banks Ban
Slide 17: S&P assigns positive outlook and confirms AA+ rating
CORPORATE PRESENTATION SEPARATED DEBT S&P assigns positive outlook and confirms AA + rating of Grupo Argos "The confirmation of the rating considers the adequate payment capacity of Grupo Argos in adverse scenarios such as 2020. This, as a result of the organization's quick decision-making in relati
Slide 18: Sustainable financing that generates value on all fronts
CORPORATE PRESENTATION SUSTAINABILITY Sustainable financing that generates value on all fronts We formalized the first loan tied to indicators of gender equality and climate change in Colombia The operation modifies the conditions of an existing debt of COP 392 bn, so that its interest rate may decr
Slide 19: Total discount per share could be over 48%
CORPORATE PRESENTATION SHARE DISCOUNT Total discount per share could be over 48% according to analyst recommendations (ANR)1 Sum of the Parts - Grupo Argos COP per share of Grupo Argos 1 Discount vs Analyst Valuations ANR (listed) & 1.0x BV Market price (listed assets) & VPN Overhead & Tax (10x) -48
Slide 20: Committed with our corporate governance – 57% independent board members
CORPORATE PRESENTATION SHAREHOLDERS AND BOARD OF DIRECTORS Committed with our corporate governance – 57% independent board members Board of Directors Shareholders December 31, 2020 ROSARIO CÓRDOBA (Chair of the Board) - Independent GrupoSura Grupo Sura 21% CLAUDIA BETANCOURT Colombian Fondos Colombi
Slide 21: Become an asset manager that enables investment of institutional capital
CORPORATE PRESENTATION “ Become an asset manager that enables the investment of institutional capital in the infrastruc ture sector in Latin America. G r u po A r g o s h a s d e m o n s t r a t e d i t s a b i l i t y t o t r ans f or m a n d g r o w b u s i nes s es i n t h i s region, such as Cem
Slide 22: Annexes Financial Results Q1
A n n exe s F i n a n c i a l Re s u l t s 1 Q 21
Slide 23: Grupo Argos Consolidated Results 1Q2021
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 Proforma EBITDA grows 15% due to better operational results in the business segments P&L Summary COP bn 1Q - 2021 1Q - 2020 Var.(%) Revenue 3,733 3,616 3% Costs, expenses and other revenue Operating Profit Ebitda 3,208 525 952 3,219 397
Slide 24: Consolidated revenue 1Q2021
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 Contribution of Cementos Argos and Celsia overweights lower contribution from concessions Consolidated revenue 1Q2021 COP bn Consolidated revenue 1Q2021 (PRO FORMA*) COP bn 4,500 4,500 4,000 3,616 141 51 39 7 3,733 4,000 51 44 3,733 3,57
Slide 25: Consolidated EBITDA 1Q2021
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 EBITDA growth driven by the performance of the cement business Consolidated Ebitda 1T2021 COP bn Consolidated Ebitda 1T2021 (PROFORMA*) COP bn 1,100 1,100 81 1 952 81 952 103 2 103 2 -6 819 825 900 900 -43 -11 -43 -11 700 700 500 500 +16
Slide 26: All businesses continue with efficiency plan
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 All businesses continue with efficiency plan. Celsia is impacted by non-recurring events1 Consolidated Expenses Cementos Argos Expenses Celsia Expenses Odinsa + Opain Expenses +1% +2% +11% - 9% 230 75 OPAIN 439 443 225 67 103 Odinsa 94 5
Slide 27: Financial discipline and cash flow generation enabled a decrease in total debt
CORPORATE PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 1Q2021 Financial discipline and cash flow generation enabled a decrease in total debt Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 18,609 17,125 16,208 17,397 300 1,717 1,602 -523 1,597 -689 1,599 26 4,843 4,558 4,688
Slide 28: Grupo Argos Separated Results 1Q2021
CORPORATE PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Proforma separated results with growth in every line of the P&L statement Summary P&L COP bn 1Q - 2021 1Q - 2020 Var.(%) Revenue 189 200 -6% Costs and other expenditures 3 24 -89% GA Expenses 49 47 4% Operating Profit 137 128 7% Ebitda 142
Slide 29: Separated proforma revenues grow 15%
CORPORATE PRESENTATION GRUPO ARGOS SEPARATED RESULTS 1Q2021 Separated proforma revenues grow 15% due to the better performance of our strategic businesses 1Q2021 Revenue distribution COP bn 1T2021 Controllable expenses COP bn Variation % (y/y) 60 49 +999000% -24% -26% +857% +29% -15% +135% -6% +4% +
Slide 30: CEO, CFO, IR contacts
CEO CFO Jorge Mario Velásquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejía Tel: (574) 319-8712 Tel: (57) 311 302 8427 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com
Slide 31: CORPORATE PRESENTATION May 2021
CORPORATE PRESENTATION 31 May 2021