Cementos Argos Sa · BVC:CEMARGOS
Cementos Argos Sa — Q4 2023 Earnings Presentation
25 slides from Cementos Argos Sa's earnings presentation, Feb 21, 2024
Slide 1: 4Q23 Results
Click to edit Master title style 4Q23 Results February 21st, 2024
Slide 2: Disclaimer
Disclaimer Click to edit Master title style This document contains forward-looking statements and information related to Cementos Argos S.A. and its subsidiaries (together referred to as “Argos”) that are based on the knowledge of current facts, expectations and projections, circumstances and assump
Slide 3: Capturing Long-Term Value in the American Market
Capturing Long-Term Value in the American Market The combination with Summit is a milestone that enables the transition towards a new business model to Clickourtopresence manage edit inMaster the US title style Sole ready-mix player Vertically integrated player with cement assets Local player with s
Slide 4: Largest shareholder of a market-leading company with multiple growth opportunities
We are now the largest shareholder of a market-leading company with multiple opportunities for growth STOCK CONSIDERATION 11.8 | 6 MTPA capacity | Cement plants ~USD 2.0bn 60% of transaction value >220 | >1,800 CASH CONSIDERATION RMX plants | Trucks >5.5 Bn Short Tons ~USD 1.2bn +90 Years of aggrega
Slide 5: Consolidated results
01 Consolidated results
Slide 6: 4Q23 Highlights – highest EBITDA achieved in Argos history
4Q23 – highest EBITDA achieved by Argos in its history +30% YoY 2 0 2 ✓ Long-term vision of value creation 12.7 2.7 21.1% 3 ✓ Profitability focus COP Trillion in revenue COP Trillion of EBITDA EBITDA MARGIN Highlights across regions +9.6% +30% +329 bps 4Q23 HIGHLIGHTS QUARTER YTD Volumes - Adjusted
Slide 7: US Region
02 US Region
Slide 8: 4Q23 – United States
4Q23 – United States QUARTER HIGHLIGHTS +13.1 % +16.6 % Volumes - Adjusted 2022.Q4 QUARTER 2023.Q4 Var 2022.Q4 YTD 2023.Q4 Var FOB PRICE CEMENT YoY FOB PRICE RMX YoY Cement 000 MT 1,458 1,477 1.3% 6,109 6,086 -0.4% RMC 000 M3 985 881 -10.6% 4,425 4,012 -9.3% +1.3 % -10.6 % QUARTER YTD Key Figures -
Slide 9: Colombian Region
03 Colombian Region
Slide 10: 4Q23 – Colombia
4Q23 – Colombia QUARTER HIGHLIGHTS QUARTER YTD Volumes +14.1 % +21.1 % 2022.Q4 2023.Q4 Var 2022.Q4 2023.Q4 Var Cement 000 MT 1,497 1,461 -2.4% 6,014 5,815 -3.3% Local Market 000 TM 1,182 1,136 -3.9% 4,806 4,458 -7.2% Exports 000 TM 315 325 3.4% 1,208 1,358 12.4% FOB PRICE CEMENT YoY FOB PRICE RMX Yo
Slide 11: Caribbean and Central America Region
04 Caribbean and Central America Region
Slide 12: 4Q23 - Caribbean and Central America
4Q23 - Caribbean and Central America QUARTER HIGHLIGHTS +0.84 % +6.8 % Volumes 2022.Q4 QUARTER 2023.Q4 Var 2022.Q4 YTD 2023.Q4 Var Cement 000 TM 906 836 -7.8% 4,081 3,801 -6.9% FOB PRICE CEMENT YoY FOB PRICE RMX YoY Central America 000 TM 389 356 -8.3% 1,578 1,615 2.3% Caribbean 000 TM 344 342 -0.4%
Slide 13: 2024 Outlook & SPRINT 2.0
2024 Outlook & SPRINT 2.0 a F a. iz:
Slide 14: We successfully met last year's Guidance metrics
We successfully met last year's Guidance metrics RESULTS VS GUIDANCE COP COP EBITDA 2.7 Tn 134 bn Above upper limit of the guidance EBITDA MARGIN 21.1% +100 bps +329 bps YoY Above upper limit of the mid-term guidance USD In line with lower limit of the guidance CAPEX 200 mm (USD 200-220 mm) NET DEBT
Slide 15: Launching SPRINT 2.0
After successfully executing all pillars within SPRINT, we are launching SPRINT 2.0 Focus on strong Increase dividend ~ COP 250 billion Listing our US Improve the Convert common results with a payments to share-buy-back business in the NYSE liquidity of our non-voting shares to PILLARS special empha
Slide 16: Sixth pillar of SPRINT 2.0: converting non-voting shares into common shares
Sixth pillar of SPRINT 2.0: a proposal to convert the common non-voting shares of the company into common shares ADVANTAGES ARISING FROM THE CONVERSION A Consolidation of market transactions into a singular stock and the expansion of the float B Share valuation approaching fundamental value Brings u
Slide 17: Guidance 2024
GUIDANCE 2024 EBITDA MARGIN > 22 % +130 bps YoY ROCE 11% - 12% USD CAPEX 110 – 130 mm 48% Maintenance 52% Growth COP EBITDA 1.10 – 1.15 Tn +2% YoY NET DEBT /EBITDA ≤ 2.5x *Guidance measured versus proforma figures excluding the US operations
Slide 18: Balance Sheet
06 Balance Sheet
Slide 19: Debt Profile
Debt Profile Net Debt / (EBITDA + Dividends Received) EBITDA / Financial expenses ▪ In line with our 2023 guidance, the Net 6,0x 5,9x 5,9x debt to EBITDA stood below 3.0x at 5,0x 2.6x, posting a sequential decrease of 3,7x 4,4x 3,9x 3,8x 3,8x 7.5% due to solid EBITDA generation 4,6x 3,3x 4,1x 3,2x 4
Slide 20: Appendix
07 Appendix
Slide 21: IFRS results per regional / other businesses
IFRS results per regional / other businesses Revenue EBITDA COP Bn 2022.Q4 2023.Q4 Var 2022.Q4 Mgn (%) 2023.Q4 Mgn (%) Var Marg Colombia 693 740 6.8% ActualTotalCOPColombiaEBITDA 182 with IFRS16207 26.2% 28.0% 179 USA 1,818 1,678 -7.7% ActualTotalCOPUnited 300 StatesEBITDA 16.5%with IFRS16 359 21.4%
Slide 22: Reconciliation of adjusted figures
Reconciliation of adjusted figures QUARTER YTD QUARTER YTD Consolidated USA 2022.Q4 2023.Q4 2022.Q4 2023.Q4 2022.Q4 2023.Q4 2022.Q4 2023.Q4 RMC Volume m3 1,738 1,525 7,510 6,740 Revenue - IFRS USD M 376 412 1,566 1,709 Divested Operations RMC Volume Divested Operations P&P m3 -109 RMC Volume - Adjut
Slide 23: Pro forma excluding Argos US form 2023 figures
Pro forma excluding Argos US form 2023 figures COP billions DIC-23 1. Revenues & EBITDA: 1 Income from operations 5,317,512 • Deconsolidating the portion generated by the USA Cost of sales 3,578,205 operations during 2023 Depreciation and amortization 421,903 Gross profit 1,317,403 2. Share of net l
Slide 24: Consolidated Cash flow
Consolidated Cash flow Income Statement 3 Cash Flow EBITDA to FCF 65% 4 conversion ratio 5 2 Reconciliations vs Accounting method 7 1 1 1 COP 242 Bn Non-Recurring Income Tax. COP 146 bn income tax 6 4 2 Includes Net Financial expenses, Net Foreign currency exchange gains (loss), Share of profit of a
Slide 25: Contact Information
Contact Information IR Team Indira Díaz indira.diaz@argos.com.co Susana Gaviria susana.gaviria@argos.com.co Investor webpage ir.argos.co This recognition, called Reconocimiento Emisores – IR is given by the Colombian Stock Exchange, Bolsa de Valores de Colombia S.A. It is not a recognition that cert