Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (May 2023)
40 slides from Grupo Argos's investor presentation, May 2023
Slide 1: Corporate Presentation May 2023
PRESENTACIÓN CORPORATIVA Corporate Presentation May 2023 1 May 2023
Slide 2: Important Note
PRESENTACIÓN CORPORATIVA Embalse del Calima 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.
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 – 2022 Cement • 12 cement plants and 248 RMC plants in Colombia, the US, CentAm and business line the Caribbean 11
Slide 4: Strategy
PRESENTACIÓN CORPORATIVA Strategy Cement Infra Portfolio 4 May 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 COP bn COP bn + 12% + 12% + 12% CAGR 2012 CAGR –2012 2022– (sept 2022L12M) CAGR CAGR 2012 2012 – 2022 – 2022 (sept L12M) 5,6 25 22,5 6 → USD
Slide 9: Grupo Argos consolidated an important base of infrastructure assets
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 Energy ▪ Sura Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Nutresa
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 +68% Arbitrage +11% upside TSR CAGR (2002 – 2022) USD 3.7 bn USD 1.5 bn 16,7 USD 2.3 bn 4,4 +6,8 10,0 2,1 GrupoArgos Grupo
Slide 12: Cement Business
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Cement Business 12 May 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 23.1 16.2 14.7 7.5 million tons of million tons million m3 of million m3 installed dispatched installed dispatched capacity 2022 capacity Financial Results 2022 Rev
Slide 14: CemArgos: 31% year over year growth in revenue and 65% in adjusted EBITDA
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 CemArgos: 31% year over year growth in revenue and 65% in adjusted EBITDA Cement Infra Portfolio Operational 1 Revenue COP bn EBITDA1 COP bn 1Q2023 vs 1Q2022 +31% 1Q2023 vs 1Q2022 +65% (YOY) (YOY) 3.382 601 594 Cemento RMC 3.118 3.138 583 6 -1% 6,0
Slide 15: Infrastructure Business
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Infrastructure Business 15 May 2023
Slide 16: Consolidation and Operational Performance of Private Equity Funds
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 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 17: 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 18: Celsia: Company revenue grows 15% YOY
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Celsia: Company revenue grows 15% YOY Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 4Q2022 vs 4Q2021 +15% 4Q2022 vs 4Q2021 +13% Generación Comercialización (YOY)1 (YOY)1 2.000 +7% 2.000 1 1.764 1.645 1.620 1.767 514 1.800 1.800 1
Slide 19: Odinsa: Sound profitability of the roadway platform
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Odinsa: Sound profitability of the roadway platform Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles IRR (E) -1% -6.9% +8% +8% 11% 39,1 38,7 37,5 34,9 24,5 22,7 22% 22% 7,6 7,1 15% 14% AKF P2 MVM CTAO mar-22 mar-23 20% 19%
Slide 20: Odinsa: Airport traffic grows by double digits
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Odinsa: Airport traffic grows by double digits Cement Infra Portfolio Passengers - Millions IRR (E) 9,2 17% vs 17% 8,0 2023 2022 14% vs 13% 2023 2022 1,2 0,8 OPAIN Quiport mar-22 mar-23 • Increased profitability mainly explained by 10.4 million PAX
Slide 21: Pactia: Revenue and EBITDA remain stable despite a slight reduction in GLA
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Pactia: Revenue and EBITDA remain stable despite a slight reduction in GLA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 1Q2023 vs 1Q2022 +13% 1Q2023 vs 1Q2022 +16% (YOY) (YOY) 1.400 109 110 61 103 98 1.200 53 52 52 1.000 85 8
Slide 22: Portfolio Investments
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Por tfolio Investments 22 May 2023
Slide 23: Real Estate Business
PRESENTACIÓN CORPORATIVA Portfolio Investments Real Estate Business Cement Infra Portfolio Development Strategy Value Creation Our Masterplans: Develop roads and public areas, assign areas for urban facilities and areas of environmental Since 2016, the NDU has generated COP 315 billion of net cash f
Slide 24: 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: +16% CAGR (TSR since 2000) ▪ Grupo Nutresa: +18 CAGR (TSR since 2000) 2. Enabling infrastructure gro
Slide 25: Shareholding Structure - over 15,000 shareholders
PRESENTACIÓN CORPORATIVA Shareholders Shareholding Structure - The company has over 15,000 shareholders Shareholders 31/12/2022 Cross-Holding Structure 31/12/2022 Shareholding corresponds to political rights Political Rights Economic Rights 28% 27% 31% 36% 10% 36% 657.6 869.5 13% 28%1 million ordina
Slide 26: Corporate Governance - Board of Directors
PRESENTACIÓN CORPORATIVA Board of Directors Corporate Governance Board of Directors Rosario Jorge Ana Cristina Armando Claudia Córdoba Uribe Arango Montenegro Betancourt Independiente Independiente Independiente Patrimonial Patrimonial (Presidente de la JD) 1 2 4 3 4 1 4 1 2 Board Committees Recogni
Slide 27: Financial Results
PRESENTACIÓN CORPORATIVA Financial Results Cement Infra Portfolio 27 May 2023
Slide 28: Revenue grows 25% YOY and EBITDA 28% YOY
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Revenue grows 25% YOY and EBITDA 28% YOY Summary P&L Quarterly Results Cumulative Results YTD COP bn 1Q - 2023 1Q - 2022 Var.(%) Mar-23 Mar-22 Var.(%) Revenue 5,745 4,614 25% 5,745 4,614 25% Costs, expenses, and other revenue 4,543 3,819 19% 4,543
Slide 29: 25% revenue growth (YOY) and 38% EBITDA growth (YOY)
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 25% revenue growth (YOY) and 38% EBITDA growth (YOY) Proforma consolidated revenue COP bn Proforma consolidated EBITDA COP bn 1.700 1.558 41 119 5.745 124 6.000 192 14 58 801 -36 1.500 42 -8 237 5.000 4.614 1.300 -25 1.130 1.100 4.000 900 3.000 700
Slide 30: Increased expenditure associated with improved operational dynamics and inflation
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +9% +27% +6% -8% 322 84 Odinsa OPAIN 542 79 496 104 95 25
Slide 31: Net Debt/EBITDA of 2.7x supports soundness of equity structure
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 A Net Debt/EBITDA Indicator of 2.7x supports the soundness of Grupo Argos’s equity structure Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 16.812 15.796 1.018 14.282 14.211 439 1.653 1.469 1.453 1.194 2.084 1.429 -2 3.408
Slide 32: Separated EBITDA grows 78% YOY
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Separated EBITDA grows 78% YOY Summary P&L Quarterly Results Cumulative Results YTD COP bn 1Q - 2023 1Q - 2022 Var.(%) Mar-23 Mar-22 Var.(%) Revenue 429 285 51% 429 285 51% Costs and other expenditures 26 25 3% 26 25 3% GA Expenses 49 65 -24% 49 65
Slide 33: Separated revenue was COP 429 billion during 1Q2023
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Separated revenue was COP 429 billion during 1Q2022 Revenue distribution 4Q2022 COP bn % Variation (YOY) +53% +57% +234% -27% +134% +5% +51% +999000% +499000% -1000% 429 40 2 40 8 224 115 Real Estate Negocio Business Inmobiliario Financial Activida
Slide 34: Financial returns from hedges and temporary investments mitigated financial expenses
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Financial returns from hedges and temporary inv. have mitigated financial expenses by 24% Cash flow Notes COP million COP million 1 Dividendos netos 37.711 1. Div. received: 146,159. Div. Paid: 108,448 Ingresos NDU 61.737 2. 40,811 from purchase of
Slide 35: Cost of debt reduced by 150 bps during the quarter
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Cost of debt reduced by 150 bps during the quarter Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Vida media (años) Kd (sin coberturas) Kd (Real) IPC 3% 0% 25% 7% 26% 0% 27% 0% 12% 16,6% 49% 14% Bonos Bancos Repos
Slide 36: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 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 and environments
Slide 37: Top 10 of MERCO Empresas and Bloomberg's Equality Index
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2022 Grupo Argos was included in the Top 10 of MERCO Empresas and highlighted on Bloomberg’s Equality Index MERCO Bloomberg Gender Equality Index Sector Ranking Ranked 1st in business Second consecutive year among the best conglomerates performing compa
Slide 38: Energy Transition, Climate Change and Equity as priorities
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 1Q2023 Energy Transition, Climate Change and Equity as priorities for our organization ENERGY TRANSITION CLIMATE CHANGE EQUITY IN THE VALUE CHAIN 95.8% of the energy generated by CELSIA AGREEMENT WITH UNIVERSIDAD NACIONAL Grupo Empresarial Argos commits t
Slide 39: Contact
PRESENTACIÓN CORPORATIVA CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager 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 wwwˌgrupoargosˌcom 39 May 2023
Slide 40: PRESENTACIÓN CORPORATIVA May 2023
PRESENTACIÓN CORPORATIVA 40 May 2023