Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q2 2016 Earnings Presentation
41 slides from Grupo Argos's earnings presentation, 2016
Slide 1: Presentation of Results 2Q2016
Presentation of Results 2Q2016
Slide 2: Important Note
IMPORTANT NOTE This presentation contains certain forward-looking information and statements related to GRUPO ARGOS and its subsidiaries that are based on knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events. Many factors could cause the future res
Slide 3: Relevant Events 2Q2016 – Acquisition Martinsburg Plant
Relevant Events 2Q2016 – Acquisition Martinsburg Plant Consolidation as the 4th biggest players in the United States. 29% increase of installed capacity in the USA, reaching 10,7mn tons (8,5% of the countries installed capacity). 10% Increase in the companies total installed capacity Assets with pos
Slide 4: Relevant Events 2Q2016 - Simplifying ODINSA's structure
Relevant Events 2Q2016 - Simplifying ODINSA's structure Position the company as one of the main companies in Colombia's infrastructure sector. Controlling stake in 3 on mature concessions, 2 airport concessions, and 2 projects under construction Increased share in Autopistas del Nordeste and Bouleva
Slide 5: Consolidated Results
Consolidated Results 2Q 2016 January - June Billions of COP 2016 2015 Var.(%) 2016 2015 Var.(%) Revenue 3,396 2,850 19 7,452 5,490 36 Costs and Expenses 2,683 2,311 16 5,885 4,387 34 Operating Profit 643 563 14 1,246 906 37 EBITDA 892 765 17 1,854 1,435 29 EBITDA Margin (%) 26.26 26.85 24.89 26.15
Slide 6: Consolidated Results
Consolidated Results Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 8.000 7.452 2.000 1.854 7.000 1.800 26,3 1.600 2016 6.000 1.435 5.490 3.396 23,7 1.400 892 5.000 1.200 +19% +17% 765 4.000 2.850 1.000 800 3.000 26,9 600 2.000 4.056 2015 400 +44% 963 2.640 +54% 670 25,4 1.000 200
Slide 7: Consolidated Results - Revenue
Consolidated Results - Revenue + 474 +0 - 112 7.452 + 665 +8 +6 + 920 5.490 Revenuejunio Ingresos June2015 2015 Cemento Cement Energy Energía Coal Carbón Real Estate Inmobiliario Concessions Concesiones Corporate Corporativos Portfolio Revenue Portafolio Ingresos June junio 2016 2016 Positive cont
Slide 8: Consolidated Results – EBITDA
Consolidated Results – EBITDA + 254 -3 - 81 1.854 + 61 +5 +1 + 183 1.435 EBITDA junio Cemento Energía Carbón Inmobiliario Concesiones Corporativos Portafolio EBITDA junio EBITDA June 2015 Cement 2015 Energy Coal Real Estate Concessions Corporate Portfolio EBITDA June 20162016 Positive contribution
Slide 9: Consolidated Results – Net Profit
Consolidated Results – Net Profit + 45 - 22 - 79 293 +9 +1 +6 -1 252 Utilidad neta Cemento Energía Carbón Inmobiliario Concesiones Corporativos Portafolio Utilidad neta Net Profit marzoMarch 20152015 Cement Energy Coal Real Estate Concessions Corporate Portfolio Net Profitmarzo March2016 2016 9
Slide 10: Consolidated Balance Sheet - June 2016
Consolidated Balance Sheet - June 2016 June 2016 Assets Trillions of COP Short-term Corto Plazo (ST) 17% 14% 19,6 Assets Activos Long-term Investments Inversiones Permanentes 41,9 Equity Patrimonio 24% 22,4 PP&E PP&E Pasivo Liabilities 45% Activos Assets Pasivo & & Liabilities Patrimonio Equity Othe
Slide 11: Separate Results
Separate Results 2Q 2016 January - June Billions of COP 2016 2015 Var.(%) 2016 2015 Var.(%) Revenue 115 171 -33 282 297 -5 Costs and Expenses 20 75 -73 58 96 -40 Operating Profit 97 113 -14 202 190 6 EBITDA 98 113 -13 213 201 6 EBITDA Margin (%) 85.3 66.0 75.6 67.6 11
Slide 12: Separate Balance Sheet - June 2016
Separate Balance Sheet - June 2016 June 2016 Asset Trillions of COP Corto Plazo (ST) Short-term 0% 11% 4% 2,0 Assets Activos Long-term Investments Inversiones Equity Permanentes 16,0 14,0 Patrimonio PP&E PP&E Pasivo Liabilities Activos Assets Pasivo & Patrimonio Liabilities & Equity 85% Other, Otros
Slide 13: Cement Business
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Slide 14: Relevant Events: Bond placement of COP 400,000 million
Relevant Events Successful placement of straight bonds for the value of COP 400,000 million. Centro Argos para la Innovación, Medellín 14
Slide 15: Relevant Events: Launch of BEST operational excellence program
Relevant Events Launch of the BEST operational excellence program with expected savings in fixed costs of ~COP 20,000 million each year. Camiones Mezcladores USA 15
Slide 16: Volumes, Second Quarter
Volumes, Second Quarter Cement Cement Sales 3.605 +198 +148 3.535 +20 Colombia 30% 35% Caribe y CA 35% USA - Sureste 2015 Colombia Caribe y CA USA - Sureste 2016 Concrete Concrete Sales 2.923 +65 2.956 -75 +36 Colombia +7 27% 28% Caribe y CA 4% USA - Sureste USA - Surcentro 41% 2015 Colombia Caribe
Slide 17: Financial Results
Financial Results Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 5.000 1.000 4.500 4.402 861 19,9 900 4.000 2016 800 3.479 678 19,2 3.500 700 2.189 436 3.000 600 +20% 2.500 1.826 500 371 2.000 400 20,3 1.500 300 2015 1.000 2.213 200 425 1.653 +34% 307 18,6 500 100 0 0 2015 2016 201
Slide 18: Energy Business
Energy Business
Slide 19: Relevant Events: Normalization of weather conditions in Colombia
Relevant Events Normalization of weather conditions in Colombia — water levels in the reservoirs at the end of the quarter were at 87% of the historical average. Calima 19
Slide 20: Relevant Events: Central America and hydroelectric operations
Relevant Events The operations in Central America, as well as the hydroelectric power generation and distribution businesses, presented Prado Substation, Tolima positive results. 20
Slide 21: GX and DX Energy Volumes, Second Quarter
GX and DX Energy Volumes, Second Quarter. Power Generated in GWh 1.830 +1 -165 +101 -38 1.729 2015 Celsia Zona Franca Celsia EPSA Centroamérica 2016 Energy Sales to End User in GWh Generation by Technology 600 + 57 508 500 451 2% 400 Hydroelectric Hidroeléctrica 300 Power 44% Térmica 200 53% Thermal
Slide 22: Financial Results
Financial Results Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 2.500 600 2.225 529 30,47 500 2.000 2016 862 413 19,58 1.556 400 263 1.500 +13% +31% 300 201 765 1.000 200 26,23 1.363 2015 267 500 +72% 100 213 +25% 26,91 791 0 0 2015 2016 0 10 20 30 2015 2016 1Q 2Q 1Q 2Q Growth o
Slide 23: Concessions Business
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Slide 24: Relevant Events: Additional share in Autopistas del Nordeste
Relevant Events Acquisition of an additional share in the Autopistas del Nordeste and Boulevard Turístico del Atlántico concessions. Collective authorization to decrease assets that do not consolidate or that Boulevard Turístico del Atlántico are not strategic. 24
Slide 25: Relevant Events: Negotiations on Autopista Conexión Pacífico 2
Relevant Events Decision to start negotiations to increase ODINSA's share in the Autopista Conexión Pacífico 2 Concession Project in Colombia. Autopista del Café 25
Slide 26: Operating Figures
Operating Figures Average Daily Traffic (Road Concessions) + 1.788 + 994 - 172 113.638 + 18.538 - 796 92.437 + 849 2T2015 Autopistas del Café Malla Vial del Meta / Santa Marta Hatovial Auitopistas del Bulevar Turistico del 1T2016 Llanos Paraguachón Nordeste (R.D.) Atl. (R.D.) Airport Traffic Revenue
Slide 27: Financial Results
Financial Results Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 500 474 254 250 56 400 200 123 2016 325 221 149 52 300 150 150 +47% +61% 76 200 100 252 131 51 100 50 2015 175 73 +44% +79% 42 0 0 2015 2016 2015 2016 1Q 2Q Total 1Q 2Q Total 0 20 40 60 Considerable increase in reve
Slide 28: Real Estate Business
Real Estate Business Urban Development, Barranquilla
Slide 29: Relevant Events: San Fernando Plaza asset divestment
Relevant Events Non-strategic assets in San Fernando Plaza were divested, totaling COP 3,600 million, generating a profit of COP 986.5 million. San Fernando Plaza 29
Slide 30: Operating Figures
Operating Figures Shareholding in Pactia GLA 432,643 m2 Commerce Comercio 4%3% Industria Industry 12% Offices Oficinas Conconcreto 41% 39,8% 40,0% Grupo Argos Autoalmacenamiento Personal Storage 40% Hotels* Hoteles* 60,2% 60,0% 1T2016 2T2016 3T2016 4T2016 Net Operating Revenue** Commerce 20,178 This
Slide 31: Financial Results
Financial Results Revenue EBITDA EBITDA Margin (%) Billions of COP Billions of COP 50 13 12 45 1 2 -80% -59% 7 27 40 9 2016 30 5 10 10 26 30 1 20 18 38 2015 -204% 2016 -3 10 2015 +202% -7 -9 13 -75 0 2015 2016 -11 1Q 2Q 1Q 2Q -100 -50 0 Breakdown of Urbanism 84% Revenue: Pactia 16% 31
Slide 32: Port Business
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Slide 33: Relevant Events: Cartagena Port expansion with APM Terminals
Relevant Events Ongoing expansion in the Cartagena Port with APM terminals that will multiply current capacityby 3. Progress in the Aguadulce terminal that will be the most modern. Compas Terminal, Barranquilla 33
Slide 34: Operating Figures
Operating Figures # of Mobilized Containers # of Import and Export Containers Tons of Cargo and General Cargo 12.000 11.403 1.973 36.000 33.891 1.899 9.783 2.000 30.000 27.295 10.000 5.841 1.600 16.711 8.000 1.036 904 24.000 -13% -18% 5.110 13.721 1.200 18.000 6.000 4.000 800 12.000 17.180 -21% 5.56
Slide 35: Financial Results
Financial Results Revenue EBITDA EBITDA margin (%) Billions of COP Billions of COP 80 75 30 28 27 70 67 39 25 2016 60 36 13 11 41 -19% 29 20 -16% 50 40 15 30 10 37 20 39 -3% 38 15 +6% 16 2015 5 38 10 0 0 2015 2016 2015 2016 0 20 40 1Q 2Q 1Q 2Q 35
Slide 36: Debt Profile
Debt Profile COP 1.55 Trillion (USD 513 Million)* Debt/EBITDA 600 3.5X 400 Crédito LP LT Loan 550 200 390 Straight Bono Bond Ordinario 254 108 132 115 0 2016 2017 2019 2020 2024 2029 Cost of the Individual Debt (%) 11,0% 10,82% 10,58% 10,43% 10,5% 10,07% 10,0% 9,58% 9,43% 9,5% 9,0% Enero Febrero Mar
Slide 37: Investment Portfolio
Investment Portfolio June 2015 June 2016 Concessions Concesiones Concessions Concesiones Cement Cemento Cement Cemento Energy Energía Energy COP 19 COP 21.4 Energía Trillion Inmobiliario Real Estate Trillion Real Estate Inmobiliario Carbón Coal Carbón Coal Servicios Financial Financieros Services Se
Slide 38: Annexes
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Slide 39: Grupo Argos – Contribution by Business
Grupo Argos – Contribution by Business GRUPO Eliminaciones ARGOS Var. Var. CELSIA Var. Var. Var. COMPAS Var. SITUM Var. Var. Var. SATOR Var. ARGOS Var. Var. ODINSA Eliminations Consolidado Var. Revenuepor Ingresos from Ordinary actividades Activities ordinarias 4.401.815 27% 2.224.930 43% 45.092 50%
Slide 40: Grupo Argos – Contribution by Business
Grupo Argos – Contribution by Business Revenue EBITDA 1% 1% 7% Cement Cemento 22% Cement Cemento 6% Energy Energía Energy Energía 0% 41% 1% Concessions Concesiones Concessions Concesiones 1% Real Estate Inmobiliario Real Estate Inmobiliario 29% 12% Ports Puertos 57% Ports Puertos Coal Carbón Holding
Slide 41: Thank You
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