Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (August 2022)
41 slides from Grupo Argos's investor presentation, August 2022
Slide 1: 2022 Corporate Presentation
PRESENTACIÓN CORPORATIVA 2022 Corporate Presentation August 2022 1 agosto 2022 Cementos Argos Port - Cartagena
Slide 2: Disclaimer
PRESENTACIÓN CORPORATIVA Disclaimer 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 ca
Slide 3: Introduction to Grupo Argos
PRESENTACIÓN CORPORATIVA Introduction to Grupo Argos Grupo Argos -Infrastructure investment manager in the Americas Main Operating Figures - 2022 L12M Geographical Presence Cement ▪ 16.9 million tons of cement dispatched ▪ 7.6 million cubic meters of concrete dispatched 18 countries Infrastructure A
Slide 4: Main Figures - Accelerated growth in the infrastructure segment
PRESENTACIÓN CORPORATIVA Introduction to Grupo Argos Main Figures - Accelerated growth in the infrastructure segment over the last decade Consolidated Revenue Consolidated EBITDA COP tn COP tn + 11% + 11% CAGR 2012 - 2022 (JuneL12M) CAGR 2012 - 2022 (JuneL12M) 19.1 18 5 16 5 4.7 4 13% 14 12 34% 4 3
Slide 5: Strategy and Businesses
PRESENTACIÓN CORPORATIVA Strategy and Businesses Cement Infra Portfolio 5 agosto 2022
Slide 6: Historical review of Grupo Argos's evolution
PRESENTACIÓN CORPORATIVA Strategy Historical review of Grupo Argos’s evolution towards becoming an infrastructure investment mana Partnership between Grupo GA reorganizes the Argos and Conconcreto to Colinversiones portfolio create a private equity fund for 2008 focusing on energy (since its real es
Slide 7: Evolution towards becoming an infrastructure investment manager (2/2)
PRESENTACIÓN CORPORATIVA Strategy Grupo Argos’s evolution towards becoming an infrastructure investment manager (2/2) Once the investment thesis is Corporate reorganization Partnership between Grupo complete, Grupo Argos sells its between Celsia and EPSA Argos / Odinsa and Macquarie to stake in Comp
Slide 8: Proven strategy for developing regional infrastructure platforms
PRESENTACIÓN CORPORATIVA Strategy Proven strategy for developing regional infrastructure platforms Cement Infra Portfolio Proven strategy for Transport Energy Real Estate Ports platform consolidation infrastructure Business opportunity 01. identified Odinsa acquired Colinversions acquired Land portf
Slide 9: Over a decade, consolidated a foundation of infrastructure assets
PRESENTACIÓN CORPORATIVA Strategy Over a decade, Grupo Argos managed managed to consolidate an important foundation of Infrastructure assets Cement Energy Concessions Real Estate Portfolio ▪ Sura Energy ▪ Nutresa Argos Energy Energy Highway Airport Real Estate Argos USA Transmission & ▪ Urban COL &
Slide 10: Structure simplification to move forward with asset manager model and list Argos USA
PRESENTACIÓN CORPORATIVA Strategy Structure simplification to move forward with the asset manager model and list Argos USA in NY 2 Cement Alternative asset manager→ Infrastructure Portfolio 1 ▪ Sura Energy ▪ Nutresa Argos Energy Energy Highway Airport Real Estate Argos USA Transmission & ▪ Urban COL
Slide 11: Business plan focused on disclosure and generation of shareholder value
PRESENTACIÓN CORPORATIVA Strategy Business plan focused on disclosure and generation of shareholder value Historical Valor Disclosure1 Long Term Value Creation2 Performance Figures in COP tn +31% Arbitrage +14% potential TSR CAGR (2002 - 2022) 17,6 13,4 +4,1 4,9 Net Debt + 2,0 Overhead 3,2 Grupo Arg
Slide 12: Cement Business
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Cement Business 12 agosto 2022
Slide 13: Main Figures of the Cement Business
PRESENTACIÓN CORPORATIVA Cement Business Main Figures of the Cement Business Cement Infra Portfolio Geographical Presence Cement RMC 23.1 16.9 14.7 7.6 million tons of million tons million cubic million cubic installed dispatched meters of meters capacity L12M installed dispatched capacity L12M Fina
Slide 14: 2021 ends with the highest EBITDA margin since 2005
PRESENTACIÓN CORPORATIVA Cement Business 2021 ends with the highest EBITDA margin since 2005 Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 2Q2022 vs 2Q2021 +15% 2Q2022 vs 2Q2021 -1% Cement Cemento RMC (YOY) (YOY) 6 6,0 +6% 2.851 2.577 1 542 5 4,5 5,0 2.473 2.489 2.537 516 509 4,2
Slide 15: Infrastructure Business
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Infrastructure Business 15 agosto 2022
Slide 16: Platform creation by asset type
PRESENTACIÓN CORPORATIVA Infrastructure Business Platform creation by asset type Cement Infra Portfolio Professional manager with proven experience operating infrastructure platforms in the region Infrastructure Asset Management Energy Energy Transmission Energy Roadway Airport Real Estate Generatio
Slide 17: Energy - Increased generation and sales support financial growth
PRESENTACIÓN CORPORATIVA Infrastructure Business Energy - Increased generation and sales support financial growth Cement Infra Portfolio Operational Revenue1 COP bn EBITDA1 COP bn Generación Generation Comercialización Sales 2Q2022 vs 2Q2021 +29% 2Q2022 vs 2Q2021 +43% (YOY)1 (YOY)1 +14% 2.000 2.000
Slide 18: Concessions - Airport traffic for 2021 was 3.3 million PAX
PRESENTACIÓN CORPORATIVA Infrastructure Business Concessions - Airport traffic for 2021 was 3.3 million PAX Cement Infra Portfolio Operating Revenue1 COP bn EBITDA1 COP bn Roadways (TPD) Carreteras (TPD) Airports (PAX) Aeropuertos (PAX) 2Q2022 vs 2Q2021 -42% 2Q2022 vs 2Q2021 +121% (YOY)1 (YOY) 18,0
Slide 19: Real Estate Returns - 65% EBITDA growth (YOY)
PRESENTACIÓN CORPORATIVA Infrastructure Business Real Estate Returns - 65% EBITDA growth (YOY) Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 2Q2022 vs 2Q2021 +5% 2Q2022 vs 2Q2021 -15% (YOY) (YOY) 1.400 -5% 1.200 108 53 51 98 1.000 88 85 855 852 838 837 81 809 39 36 GLA ('000) 8
Slide 20: Portfolio Investments
PRESENTACIÓN CORPORATIVA Cement Infra Portfolio Por tfolio Investments 20 agosto 2022
Slide 21: Real Estate Business
PRESENTACIÓN CORPORATIVA Portfolio Investments Real Estate Business Cement Infra Portfolio Development Strategy Value Creation Our Masterplans: Establish 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
Slide 22: 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: 19.3% per year (TSR since 2000) ▪ Grupo Nutresa: 18.9% per year (TSR since 2000) 2. Enabling infrast
Slide 23: Shareholding - The company has over 15,000 shareholders
PRESENTACIÓN CORPORATIVA Shareholders Shareholding - The company has over 15,000 shareholders Shareholders 31/12/2021 Cross-Holding Structure 31/12/2021 Shareholding corresponds to political rights Political Rights Economic Rights 26% 27% 29% 36% 10% 36% 657.6 869.5 13% 28%1 million ordinary mm tota
Slide 24: 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 Independent Independent Independent Patrimonial Patrimonial (BD Chair) 1 2 4 3 4 1 4 1 2 Board Committees Recognitions and Affilia
Slide 25: Financial Results
PRESENTACIÓN CORPORATIVA Financial Results Cement Infra Portfolio 25 agosto 2022
Slide 26: The year begins with a favorable operational and financial dynamic
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS2Q2022 The year begins with a favorable operational and financial dynamic Cement Infra Portfolio Net income controlling Revenue EBITDA Net Income interest1 Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +35% +16% +25% +37% 10,5 2,6
Slide 27: Increased valuation potential according to current arbitrage prices
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Increased valuation potential according to current arbitrage prices Argos Arbitrage1 Price (30/06/2022) COP / Share Historical Arbitrage Gap1 (Relative Prices) 120 Lockdown begins (Mar – 2020) +16% (Ord. shares) +137% (Pf. shares) 100 100 17.501 15
Slide 28: Proforma EBITDA ends the semester at COP 2.5 trillion
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 4Q2021 Proforma EBITDA ends the semester at COP 2.5 trillion, 18% higher than the previous year Consolidated Summary P&L Quarterly Results Cumulative Results for the Year COP bn 2Q - 2022 2Q - 2021 Var.(%) Jun-22 Jun-22 Var.(%) Revenue 5,898 4,027 46% 10,
Slide 29: 19% revenue growth (YOY) and EBITDA growth (YOY)
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 19% revenue growth (YOY) and 20% EBITDA growth (YOY) Consolidated revenue (Proforma) COP bn Consolidated EBITDA (Proforma) COP bn 1.500 6.000 29 1.325 20 20 147 -6 1.300 5.000 73 32 4.794 1.122 308 -23 1.100 4.025 378 -7 4.000 900 3.000 700 500 +19
Slide 30: Increased expenditure associated with improved operational dynamics and inflation
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Increased expenditure associated with improved operational dynamics and effects of inflation Consolidated Expenditure1 Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure +15% +13% +27% +9% Odinsa OPAIN 264 88 100 482 233 92 41
Slide 31: Financial discipline, cash flow generation and divestments reduce indebtedness
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Financial discipline, cash flow generation and divestments result in reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 17.008 15.884 1.724 14.856 346 578 1.724 1.433 31 4.692 -2.759 13.194 274 2.170 4.692
Slide 32: Proforma EBITDA for separated results
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Proforma EBITDA for 1Q2022 is 32% higher than the previous year Separated Summary P&L Quarterly Results Cumulative Results for the Year COP bn 2Q - 2022 2Q - 2021 Var.(%) Jun-22 Jun-22 Var.(%) Revenue 172 219 -22% 457 409 12% Costs and other expend
Slide 33: Separated revenue was COP 172 billion during 2Q2022
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Separated revenue was COP 172 billion during 2Q2022 Revenue distribution 2Q2022 COP bn Controllable Expenses 2Q2022 COP bn % Variation (YOY) 40 37 +32% +999000% -20% -94% -97% +85% +216% +112% -22% +799000% +599000% +399000% 35 +199000% 28 9 -1000%
Slide 34: Ongoing search for efficiency in expenditures at Grupo Argos and NDU
PRESENTACIÓN CORPORATIVA GRUPO ARGOS SEPARATE RESULTS 1Q2022 Ongoing search for efficiency in expenditures at Grupo Argos and the Real Estate Business (NDU) Expenses at Grupo Argos COP bn Expenses at the Real Estate Business (NDU) COP bn Detailed Expenses for the Real Estate Business ▪ Property Taxe
Slide 35: Treasury investments result in a positive carry regarding the cost of debt
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Treasury investments result in a positive carry regarding the cost of debt Cash flow COP bn Notes COP bn COP million 1 Dividendos netos 455.526 1. Div. received: 563,989 (Odinsa: 360,957). Div. Paid: 108,463 2 Ingresos NDU 92.756 2. Urbanized lots:
Slide 36: Cost of debt increases less than inflation thanks to hedging strategies
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Cost of debt increases less than inflation thanks to hedging strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Vida media (años) Kd (sin coberturas ni inversiones) Kd (Real) IPC 3% 0% 16% 25% 7% 10% 0% 27%
Slide 37: Grupo Argos has the highest credit rating from Fitch and S&P
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 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 38: Sustainability milestones
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 Sustainability milestones Climate change strategy Value Added Statement Goal: carbon neutral by 2050 3.8x -76% Of its retained benefits returned by Grupo Empresarial Argos to society In emissions over the last four years USD 154.5 million 38 agosto
Slide 39: 2022 Results Guidance
PRESENTACIÓN CORPORATIVA GRUPO ARGOS RESULTS 2Q2022 2022 Results Guidance 17.0 – 17.5 4.4 - 4.6 1.2 - 1.3 COP ̈bn COP ̈bn COP ̈bn Revenue 2022e EBITDA 2022e Net Income 2022e Guidance for 2022 Consolidated Grupo Argos results (projections exclude the effect of non-recurring transactions) 39 agosto 20
Slide 40: CEO CFO IR Manager
PRESENTACIÓN CORPORATIVA CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Juan Esteban Mejia Carolina Arango Tel: (574) 315 8400 Tel: (574) 315 8400 E-mail: jemejia@grupoargos.com E-mail: carangoz@grupoargos.com www.grupoargos.com 40 agosto 2022
Slide 41: PRESENTACIÓN CORPORATIVA agosto 2022
PRESENTACIÓN CORPORATIVA 41 agosto 2022