Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (November 2023)
44 slides from Grupo Argos's investor presentation, November 2023
Slide 1: Corporate Presentation November 2023
PRESENTACIÓN CORPORATIVA Corporate Presentation November 2023 1 November 2023
Slide 2: Important Note
PRESENTACIÓN CORPORATIVA 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
Slide 3: Overview of Grupo Argos
PRESENTACIÓN CORPORATIVA Overview of Grupo Argos Grupo Argos – Established footprint in the region with a robust portfolio focused on infrastructure Business highlights Company snapshot – 3Q23 Cement • 11 cement plants and 248 RMC plants in Colombia, the US, CentAm and business line the Caribbean 11
Slide 4: Strategy
PRESENTACIÓN CORPORATIVA Strategy Cemento Infra Portafolio 4 November 2023
Slide 5: Key milestones (1/2)
PRESENTACIÓN CORPORATIVA Strategy Targeted M&A activity, coupled with deep know-how optimizing existing assets… Cement Infra Portfolio A Cement and energy businesses consolidation B Portfolio optimization towards key business lines and strategic assets (1/2) 2006 - 2008 2009 - 2011 2012 2014 - 2015
Slide 6: Key milestones (2/2)
PRESENTACIÓN CORPORATIVA Strategy … has proven to be a differentiated factor generating attractive returns … Cement Infra Portfolio B Portfolio optimization towards key business lines and strategic assets (2/2) C Creation of strategic partnerships and focus on capital optimization 2016 2017 - 2018 2
Slide 7: Unrivaled track record with ample asset management capabilities
PRESENTACIÓN CORPORATIVA Strategy … resulting in unrivaled track record with ample asset management capabilities Cement Infra Portfolio Key strengths highlighting Grupo Argos positioning 1 2 3 4 5 6 Deep sector and Unique sourcing Strong value creation Asset optimization and Brand reputation with Te
Slide 8: Main Figures - Accelerated growth in the infrastructure segment
PRESENTACIÓN CORPORATIVA Strategy Main Figures - Accelerated growth in the infrastructure segment over the last decade Consolidated Revenue Consolidated EBITDA COPCOP trillion bn COPCOP trillion bn + 12% + 12% + 12% CAGR CAGR 2012 2012 – 2022 – 3Q23 (septLTM L12M) CAGR 2012 – 2022 3Q23 (sept LTM L12
Slide 9: Consolidated base of infrastructure assets over the last decade
PRESENTACIÓN CORPORATIVA Strategy During the last decade Grupo Argos consolidated an important base of infrastructure assets Cement Energy Concessions Real Estate Portfolio Energy ▪ Sura Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Nutresa COL & CCA Generation Commercia
Slide 10: Simplification of structure and listing in the NYSE
PRESENTACIÓN CORPORATIVA Strategy Simplification of structure in the infrastructure asset management business model and listing in the NYSE 2 Cement Alternative Asset Manager → Infrastructure Portfolio 1 31% stake in Energy ▪ Sura Argos Energy Energy Toll Road Airport Summit Transmission Real Estate
Slide 11: Business plan focused in revealing and generating value for shareholders
PRESENTACIÓN CORPORATIVA Strategy Business plan focused in revealing and generating value for our shareholders Historic Performance Revealing Value1 Long Term Value Generation2 +65% Arbitrage +13% upside TSR CAGR (2001 – 2023) USD 3.7 bn USD 1.5 bn 16,3 USD 2.3 bn 4,2 +6,5 9,9 2,4 GrupoArgos Grupo A
Slide 12: Cement Business
PRESENTACIÓN CORPORATIVA Cemento Infra Portafolio Cement Business 12 November 2023
Slide 13: Main Figures of the Cement Business
PRESENTACIÓN CORPORATIVA Cement Business Main Figures of the Cement Business Cemento Infra Portafolio Geographical Footprint Cement RMC 24.0 15.8 14.7 7.0 million tons of million tons million m3 of million m3 installed dispatched LTM installed dispatched capacity capacity LTM Financial Results LTM R
Slide 14: Combining U.S. operations with Summit Materials
PRESENTACIÓN CORPORATIVA We have bolstered Cementos Argos by combining the U.S. operations with Summit Materials, elevating their strenght, footprint, and capabilities By leveraging on the regional footprint and robust U.S. Platform… …We have managed to unlock additional value for Cementos Argos thr
Slide 15: Combination marks a step towards enhanced possibilities and synergies
PRESENTACIÓN CORPORATIVA This combination marks a significant step towards a future of enhanced possibilities and strategic synergies STRATEGICALLY ALIGNED WITH OUR …POSITIONING THE COMPANY TO …CRYSTALIZED ON A TRANSFORMATIONAL TRANSACTION… INVESTMENT THESIS… UNLOCK SIGNIFICANT VALUE Delivering on p
Slide 16: CemArgos: EBITDA Margin reaches 23%
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 3Q2023 CemArgos: EBIDTA Margin reaches 23% 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 4,172 601 4 3,877 3,925
Slide 17: Infrastructure Business
PRESENTACIÓN CORPORATIVA Cemento Infra Portafolio Infraestructure Business 17 November 2023
Slide 18: Creation of platforms by asset type
PRESENTACIÓN CORPORATIVA Infrastructure Business Creation of platforms by asset type Cement Infra Portfolio Professional manager with proven experience operating infrastructure platforms in the region Infrastructure Asset Management Energy Energy Transmission Energy Toll Road Airport Real Estate Gen
Slide 19: Celsia: Company revenue grows +14% YOY
PRESENTACIÓN CORPORATIVA 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 1.800 1.800 1.585
Slide 20: Odinsa: Structural and accounting changes after concluding verticals
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 3Q2023 Odinsa: Structural and accounting changes after concluding the roadway and airport verticals Cement Infra Portfolio Before vertical conclusion After vertical conclusion 50% Odinsa Odinsa 50% 23.25% 100% Subsidiaries Associates and Odinsa Equity Fun
Slide 21: Odinsa: ADT slightly reduced by traffic affected on AKF
PRESENTACIÓN CORPORATIVA 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 CTAO sep-22 sep
Slide 22: Odinsa: Traffic grows 10% YOY
PRESENTACIÓN CORPORATIVA 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 22 November 2023
Slide 23: Consolidation and Operational Performance of Private Equity Funds
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 3Q2023 Consolidation and Operational Performance of Private Equtiy Funds Cement Infra Portfolio Energy Concessions Caoba C2 Energía Tesorito Laurel Roadways Airports • Thermal Gen. Platform • Solar platform < 8 MW • Partner: Macquarie Asset • Partner: Mac
Slide 24: Pactia: EBITDA for the quarter grows 14%
PRESENTACIÓN CORPORATIVA 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) 110 111 113 109 61 59 60 1.
Slide 25: Inversiones de Portafolio
PRESENTACIÓN CORPORATIVA Cemento Infra Portafolio Inversiones de Por tafolio 26 November 2023
Slide 26: Negocio de Desarrollo Urbano
PRESENTACIÓN CORPORATIVA Inversiones de Portafolio Negocio de Desarrollo Urbano Cemento Infra Portafolio Estrategia de Desarrollo Generación de Valor Nuestros Masterplans: establecen vías y zonas públicas, asignan áreas para equipamientos urbanos y zonas de Desde el 2016 el NDU ha generado +COP 450
Slide 27: Investment in Grupo Sura and Grupo Nutresa
PRESENTACIÓN CORPORATIVA Portfolio Investments Investment in Grupo Sura and Grupo Nutresa Cement Infra Portfolio Companies and Subsidiaries Long-term Benefits 1. Long-term Profitability ▪ Grupo Sura: +14% CAGR (TSR since 2000) ▪ Grupo Nutresa: +18 CAGR (TSR since 2000) 2. Enabling infrastructure gro
Slide 28: Shareholding Structure - over 15,000 shareholders
PRESENTACIÓN CORPORATIVA Shareholders Shareholding Structure - The company has over 15,000 shareholders Shareholders 30/06/2023 Cross-Holding Structure 30/06/2023 Shareholding corresponds to political rights Political Rights Economic Rights 26% 27% 31% 36% 10% 36% 656.9 868.5 13% 28%1 million ordina
Slide 29: Corporate Governance - Board of Directors
PRESENTACIÓN CORPORATIVA Board of Directors Corporate Governance Board of Directos Rosario Jorge Ana Cristina Armando Claudia Mauricio Esteban Córdoba Uribe Arango Montenegro Betancourt Ortega Piedrahita Independent Indepenent Independent Independent Patrimonial Independent Patrimonial (President of
Slide 30: Financial Results
PRESENTACIÓN CORPORATIVA Financial Results Cemento Infra Portafolio 31 November 2023
Slide 31: Consolidated results grow compared to the previous year
PRESENTACIÓN CORPORATIVA 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 4,4 1.396 3,9
Slide 32: Sound separated results for Grupo Argos
PRESENTACIÓN CORPORATIVA 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 Sep22 Sep23 Sep
Slide 33: Revenues up 9% and EBITDA up 13% year-to-date
PRESENTACIÓN CORPORATIVA 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 Operational Inc.
Slide 34: Reduced revenue due to deconsolidation of concessions assets
PRESENTACIÓN CORPORATIVA 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 -5% +1% 1.000
Slide 35: Increased expenditure from improved operational dynamics and inflation
PRESENTACIÓN CORPORATIVA 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 3Q - 2022 3Q202
Slide 36: Sound equity structure supported by a AAA rating
PRESENTACIÓN CORPORATIVA 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 5.681 29 5.641 23
Slide 37: Separated EBITDA grows 113% YOY
PRESENTACIÓN CORPORATIVA 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 Expenses 47 29 62
Slide 38: Separated revenue was COP 555 billion during 3Q2023
PRESENTACIÓN CORPORATIVA 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 Financial Actividad
Slide 39: Available as of Sep-23 cash and financial returns
PRESENTACIÓN CORPORATIVA 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 (91,770 shares, 30
Slide 40: Hedging and ESG loan with Bancolombia reduce Kd by 580 bps
PRESENTACIÓN CORPORATIVA 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% 34% of guarant
Slide 41: Real Estate Business received 2023 National Award for Social Responsibility
PRESENTACIÓN CORPORATIVA 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 president of th
Slide 42: 2023 Results Guidance
PRESENTACIÓN CORPORATIVA 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) 43 November 2023
Slide 43: www.grupoargos.com
PRESENTACIÓN CORPORATIVA 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.com www.grupoa
Slide 44: PRESENTACIÓN CORPORATIVA November 2023
PRESENTACIÓN CORPORATIVA 45 November 2023