Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q4 2019 Earnings Presentation
32 slides from Grupo Argos's earnings presentation, February 2020
Slide 1: Presentation of Quarterly Results Fourth Quarter 2019
Resultados Primer Trimestre del 2019 PRESENTATION OF QUARTERLY RESULTS Fourth Quarter 2019 Investments that Investments thattransform transform February 2020
Slide 2: Important Note
PRESENTATION Resultados Primer OF QUARTERLY Trimestre RESULTS del 2019 PRESENTATION OF QUARTERLY RESULTS Important Note This presentation contains certain forward-looking information and statements related to Grupo Argos and its subsidiaries that are based on current knowledge of events, expectation
Slide 3: We led the strategic transformation of our businesses in the fourth quarter of 2019
PRESENTACIÓN PRESENTATION DE RESULTADOS OF QUARTERLY TRIMESTRALES RESULTS STRATEGY We led the strategic transformation of our businesses in the fourth quarter of 2019 Creation of Platforms Selective, Profitable and Divestment of for Growth Strategic Growth Non-strategic Assets ▪ Partnership with ▪ B
Slide 4: We are significant drivers of the Colombian economy
PRESENTACIÓN PRESENTATION DE RESULTADOS OF QUARTERLY TRIMESTRALES RESULTS STRATEGY We are significant drivers of the Colombian economy GRUPO ARGOS CEMENTOS ARGOS 750 billion 336 billion • Divestments of COP 123 billion • Divestments of COP 336 billion COP 11 trillion • Capitalization of COP 176 bill
Slide 5: We achieved a consolidated EBITDA of COP 4.8 trillion, up 21% in 2019
PRESENTACIÓN PRESENTATION DE RESULTADOS OF QUARTERLY TRIMESTRALES RESULTS STRATEGY We achieved a consolidated EBITDA of COP 4.8 trillion, up 21% in 2019 COP 16.8 INCOME trillion COP 4.8 EBITDA trillion COP 689 billion NET PROFIT OF THE CONTROLLING COMPANY 18% 21% 3% 5 February 2020 Investments that
Slide 6: Consolidated results confirm progress in businesses led by Grupo Argos as an asset manager
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS CONSOLIDATED RESULTS 4Q2019 The consolidated results confirm progress in the businesses led by Grupo Argos as an asset manager IMPORTANT FIGURES + 11% COP billion 4Q-2019 4Q-2018 Change (%) DEC-2019 DEC-2018 Change (%) Increase in the Income 3,941 3,740
Slide 7: Growth of 18% in income in 2019 with the positive contribution of all strategic businesses
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS CONSOLIDATED RESULTS 4Q2019 Growth of 18% in income in 2019 with the positive contribution of all the strategic businesses Contribution to the Annual Consolidated Income by Business COP billion +18% 2018 Cement Energy Real estate Portfolio Coal Concessio
Slide 8: Growth of 21% in the quarter's EBITDA due to energy and cement businesses
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS CONSOLIDATED RESULTS 4Q2019 Growth of 21% in the quarter’s EBITDA due to the greater contribution of the energy and cement businesses Contribution to the Annual Consolidated Income by Business COP billion 15% 2018 Cement Energy Real estate Portfolio Coal
Slide 9: The EBITDA margin in 2019 improved 172 basis points
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS INDIVIDUAL RESULTS 4Q2019 The EBITDA margin in 2019 improved 172 basis points IMPORTANT FIGURES COP billion COP mil mn IncomeIngresos Costs, Costos expenses and y otros other egresos 4Q - 2019 185 39 4Q - 2018 184 -19 Var (%) 1% N/A Dic-2019 846 104 Dic-
Slide 10: The equity method increased 30% in 4Q due to energy and concessions businesses
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS INDIVIDUAL RESULTS 4Q2019 The equity method increased 30% in 4Q due to the greater contribution of the energy and concessions businesses 1. Income Distribution 4Q2019 COP billion 2. EM* Distribution 4Q2019 COP billion 99 184 185 3 17 76 76 99 Otros Other
Slide 11: We improved the debt profile from 4.9 to 6.4 years
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS SEPARATE RESULTS 4Q2019 We improved the debt profile from 4.9 to 6.4 years DEBT1 COP PROFILE OF MATURITIES (CAPITAL) COP billion 8% 0% 0% 20% 19% 16% 10% 0% 25% 0% 11% 31% 31% COP 1,592 million INDEXING 192 390 Bonds Bonos Banks Bancos 306 -1% Y/Y 254 15
Slide 12: We ended the year with cash flow equivalent to one day of the Company's revenue
PRESENTATION OF QUARTERLY RESULTS GRUPO ARGOS SEPARATE RESULTS 4Q2019 We ended the year with cash flow equivalent to one day of the Company’s revenue Cash flow Notes COP billion COP billion 1. Dividends received: COP 588, dividends paid: COP 295 1 Dividendos netos Net dividends 293 2. Sale of 6,495,
Slide 13: Concessions Business: Odinsa and Opain Quarterly Results
PRESENTATION OF QUARTERLY RESULTS CONCESSIONS BUSINESS Investments that transform ODINSA AND OPAÍN QUARTERLY RESULTS 3Q2019 13 February 2020 Inversiones que Investments thattransforman transform
Slide 14: We strengthened financial flexibility to drive growth
PRESENTATION OF QUARTERLY RESULTS CONCESSIONS BUSINESS 4Q2019 We strengthened financial flexibility to drive growth Bogotá Airport System enters into the feasibility stage • Estimated investment of USD 3,200 million Debt reprofiling for Autopistas del Café of COP 250 billion 82% progress in Pacífico
Slide 15: More than 40 million passengers in airports and 37 million vehicles
PRESENTATION OF QUARTERLY RESULTS CONCESSIONS BUSINESS 4Q2019 More than 40 million passengers in airports and 37 million vehicles DAILY AVERAGE OF VEHICLES Thousands of vehicles ROAD NOTES 114 • AKF: Vehicle traffic in 4Q19 varied +4% Y/Y. Accumulated traffic in 2019 100 varied +2%. 29.6 21.6 +6% •
Slide 16: The EBITDA in concessions increased 10%
PRESENTATION OF QUARTERLY RESULTS CONCESSIONS BUSINESS 4Q2019 The EBITDA in concessions increased 10% INCOME COP billion EBITDA COP billion NET PROFIT OF THE CONTROLLING COMPANY COP billion 44 50 45 40 35 30 -11% 25 16 175% 10% 20 15 10 5 0 Dic-2018 4Q2018 Dic-2019 4Q2019 4Q20 Road Constr Airp Other
Slide 17: Opain ends 2019 with more than 35 million passengers
PRESENTATION OF QUARTERLY RESULTS CONCESSIONS BUSINESS 4Q2019 Opain ends 2019 with more than 35 million passengers PASSENGERS Millions of passengers (PAX) INCOME COP billion 1,175 11 9.52 →Change Y/Y: 7% 8.48 9.14 1,052 9 8.06 311 3.05 2.80 →Change Y/Y: -2% 296 5% 7 2.87 2.85 315 5 258 4Q 3 6.47 6.3
Slide 18: Cement Business
PRESENTATION OF QUARTERLY RESULTS CEMENT BUSINESS Investments that transform 18 February 2020 Inversiones que Investments thattransforman transform
Slide 19: Efficiency, profitability of existing assets and divestment of non-strategic assets
PRESENTATION OF QUARTERLY RESULTS CEMENT BUSINESS 4Q2019 Efficiency, profitability of existing assets and divestment of non-strategic assets Divestment of the concrete cluster in southwest USA for USD 95 million Manufacturing and distribution of green cement started • It reduces CO2 emissions by 38%
Slide 20: Cement and concrete volumes increased in the USA with greater profitability
PRESENTATION OF QUARTERLY RESULTS CEMENT BUSINESS 4Q2019 Cement and concrete volumes increased in the USA with greater profitability CEMENT VOLUMES Thousands of tons CEMENT SALES +15% Y/Y 28% -5% Y/Y 39% -13% Y/Y USA 3.9 USA COL COL millions MT -1% C Cy and CA CA 4Q2018 4Q2018 USA COL C and CA 4Q201
Slide 21: Improved profitability of the business with the EBITDA increasing 16% year-on-year
PRESENTATION OF QUARTERLY RESULTS CEMENT BUSINESS 4Q2019 Improved profitability of the business with the EBITDA increasing 16% year-on-year INCOME COP billion EBITDA COP billion NET PROFIT OF THE COP billion 600 CONTROLLING COMPANY 32 81 479 -17 500 -29 413 58 52 400 300 34 +11% +16% -34% 421 200 +2
Slide 22: Energy Business
PRESENTATION OF QUARTERLY RESULTS ENERGY BUSINESS Investments that transform 22 February 2020 Inversiones que Investments thattransforman transform
Slide 23: Strategic movements of asset turnover to balance out the income matrix
PRESENTATION OF QUARTERLY RESULTS ENERGY BUSINESS 4Q2019 Strategic movements of asset turnover to balance out the income matrix Partnership with Cubico Sustainable Investments for COP 1.4 trillion • Projects to develop more than 400 MW of solar power • Expansion of the distribution and transmission
Slide 24: Balance in the transmission and generation matrix; T+D contributes 42% of EBITDA
PRESENTATION OF QUARTERLY RESULTS ENERGY BUSINESS 4Q2019 Balance in the transmission and generation matrix and T+D contributes 42% of the EBITDA at the close of 2019 GENERATION* GWh COMPOSITION OF GENERATION 0% 22% Zona Franca -19% 1,331 EPSA GWh CA 78% 4Q2018 4Q2019 CHANGE IN ELECTRICITY SALES GWh
Slide 25: Results consistent with the Selective, Profitable and Strategic Growth strategy
PRESENTATION OF QUARTERLY RESULTS ENERGY BUSINESS 4Q2019 Results consistent with the Selective, Profitable and Strategic Growth strategy INCOME COP billion EBITDA COP billion NET PROFIT OF THE CONTROLLING COMPANY COP billion +7% Y/Y +7% Y/Y +32% Y/Y 116 -37% Y/Y 64 +7% +20% +81% 4Q2018 4Q2018 COL CA
Slide 26: Real Estate Business
PRESENTATION OF QUARTERLY RESULTS REAL ESTATE BUSINESS Investments that transform 26 February 2020 Inversiones que Investments thattransforman transform
Slide 27: Focus on the sale of land and profitability of the portfolio
PRESENTATION OF QUARTERLY RESULTS REAL ESTATE BUSINESS 4Q2019 Focus on the sale of land and profitability of the portfolio Income of COP 87 billion in 4Q19 (+38% Y/Y), due to In 2019, 11 deals were closed, amounting to the increase in GLA and AUM over the last 12 months COP 120 billion The GLA incre
Slide 28: Pactia's assets under management amounted to COP 3.9 trillion at end of 2019
PRESENTATION OF QUARTERLY RESULTS REAL ESTATE BUSINESS 4Q2019 Pactia’s assets under management amounted to COP 3.9 trillion at the end of 2019 SHARE % GLA m2 3.0% 15% 25.6% 27% 37.2% Commercial Industria Conconcreto 5% Industrial Comercio Grupo Argos 821,878 Offices Oficinas Protección m2 Hotels Hot
Slide 29: Sustainability
PRESENTATION OF QUARTERLY RESULTS SUSTAINABILITY Investments that transform 29 February 2020 Inversiones que Investments thattransforman transform
Slide 30: Grupo Argos: The world's most sustainable company in its sector
PRESENTATION OF QUARTERLY RESULTS Sustainability Grupo Argos: The world’s most sustainable company in its sector For the third year in a A pioneering electricity We have been part of row, we stand out as company in the the global Dow Jones global leaders for our incorporation of Sustainability Index
Slide 31: Contact details
PRESENTATION OF QUARTERLY RESULTS CEO Jorge Mario Velásquez CFO Alejandro Piedrahita IR Director Natalia Agudelo Tel: (+57 4) 319-8712 Email: nagudelop@grupoargos.com IR Analyst Jaime Andrés Palacio Tel: (+57 4) 3198400 ext. 22388 Email: jpalaciop@grupoargos.com www.grupoargos.com 31 February 2020 I
Slide 32: Investments that transform
PRESENTATION OF QUARTERLY RESULTS Investments that transform 32 February 2020 Inversiones que Investments thattransforman transform