Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Investor Presentation (March 2024)
43 slides from Grupo Argos's investor presentation, March 2024
Slide 1: Corporate Presentation March 2024
Corporate Presentation Corporate Presentation March 2024 1 March 2024
Slide 2: Important Note
Corporate Presentation 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. Many factors could c
Slide 3: Overview of Grupo Argos
Corporate Presentation Overview of Grupo Argos Grupo Argos – Established footprint in the region with a robust portfolio focused on infrastructure Business highlights Company snapshot – 2023 Cement • 11 cement plants and 179 RMC plants in Colombia, the US, CentAm and business line the Caribbean 11,5
Slide 4: Strategy
Corporate Presentation Strategy Cemento Infra Portafolio 4 March 2024
Slide 5: Key milestones (1/2)
Corporate Presentation 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 Ce
Slide 6: Key milestones (2/2)
Corporate Presentation 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 201
Slide 7: Unrivaled track record with ample asset management capabilities
Corporate Presentation 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 Team
Slide 8: Main Figures - Accelerated growth in the infrastructure segment
Corporate Presentation Strategy Main Figures - Accelerated growth in the infrastructure segment over the last decade Consolidated Revenue Consolidated EBITDA COPCOP trillion bn COPCOP trillion bn + 12% + 12% + 12% CAGR 2012 CAGR –2012 2022– (sept 2023L12M) CAGR CAGR 2012 2012 – 2022 – 2023 (sept L12
Slide 9: Consolidated base of infrastructure assets
Corporate Presentation Strategy During the last decade Grupo Argos consolidated an important base of infrastructure assets Cement Energy Concessions Real Estate Portfolio Energy Argos Energy Energy Toll Road Airport Argos USA Transmission Real Estate ▪ Grupo Sura COL & CCA Generation Commercializati
Slide 10: Simplification of structure and listing in the NYSE
Corporate Presentation Strategy Simplification of structure in the infrastructure asset management business model and listing in the NYSE 2 Cement Alternative Asset Manager → Infrastructure Portfolio 1 31% stake in Energy Argos Energy Energy Toll Road Airport Summit Transmission Real Estate ▪ Grupo
Slide 11: Business plan focused on revealing and generating value
Corporate Presentation Strategy Business plan focused in revealing and generating value for our shareholders Historic Performance Revealing Value1 Long Term Value Generation2 +43% Arbitrage +14% upside TSR CAGR (2001 – 2023) USD 4.3 bn USD 1.3 bn 16,8 USD 3.0 bn +4,9 4,1 11,9 2,0 4,3 GrupoArgos Grup
Slide 12: Cement Business
Corporate Presentation Cemento Infra Portafolio Cement Business 12 March 2024
Slide 13: Main Figures of the Cement Business
Corporate Presentation Cement Business Main Figures of the Cement Business Cemento Infra Portafolio Geographical Footprint Cement RMC 24.0 15.7 14.7 6.7 million tons of million tons million m3 of million m3 installed dispatched installed dispatched capacity 2023 capacity 2023 Financial Results 2023
Slide 14: Combining U.S. operations with Summit Materials
Corporate Presentation We have bolstered Cementos Argos by combining the U.S. operations with Summit Materials, elevating their strenght, footprint, and capabilities By leveraging on the regional footprint and robust U.S. Platform… …We have managed to unlock additional value for Cementos Argos throu
Slide 15: Combination marks a step towards enhanced possibilities and synergies
Corporate Presentation This combination marks a significant step towards a future of enhanced possibilities and strategic synergies STRATEGICALLY ALIGNED WITH OUR …POSITIONING THE COMPANY TO …CRYSTALIZED ON A TRANSFORMATIONAL TRANSACTION… INVESTMENT THESIS… UNLOCK SIGNIFICANT VALUE Delivering on pre
Slide 16: CemArgos: EBITDA Margin reaches 22%
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 CemArgos: EBIDTA Margin reaches 22% Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn 4Q2023 vs 4Q2022 -7% 4Q2023 vs 4Q2022 +5% (YOY) (YOY) Cemento RMC 6 6,000 -2% 722 3.382 3.332 3.138 662 3.087 629 5 5,000 2.917 601 594 4 3,862 3,925
Slide 17: Infrastructure Business
Corporate Presentation Cemento Infra Portafolio Infraestructure Business 17 March 2024
Slide 18: Creation of platforms by asset type
Corporate Presentation 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 Gener
Slide 19: Consolidation and Operational Performance of Private Equity Funds
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 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: Macqu
Slide 20: Celsia: EBITDA margin reached 26.5%
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Celsia: EBITDA margin reached 26.5%. Cumulative EBITDA grew 3.8% in 2023. Cement Infra Portfolio Operational Revenue COP bn EBITDA1 COP bn 4Q2023 vs 4Q2022 -6% 4Q2023 vs 4Q2022 +0% Generación Comercialización (YOY) (YOY) 2.000 -16% 2.000 1.620 1.7… 1
Slide 21: Odinsa: ADT slightly reduced by traffic affected on AKF
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Odinsa: ADT slightly recued by traffic affected on AKF Cement Infra Portfolio Average daily traffic (ADT) - thousands of vehicles 4Q2023 vs 4Q2022 IRR (E) -6% +6% -0% -3% 11% 40,9 40,3 38,6 39,0 24,8 24,7 22% 7,2 7,6 15% AKF P2 MVM CTAO dic-22 dic-23
Slide 22: Odinsa: airport traffic grows 16%
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Odinsa: airport traffic grows 16% a/a Cement Infra Portfolio Passengers - Millions IRR (E) 17% 11,5 9,8 10% 1,2 1,3 OPAIN Quiport dic-22 dic-23 12.8 million PAX +16% YOY 23 March 2024
Slide 23: Pactia: revenue up 7% with stable GLA
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Pactia: revenue up 7% with stable GLA Cement Infra Portfolio Operational Revenue COP bn EBITDA COP bn GLA 1.400 4Q2023 vs 4Q2022 +6% 4Q2023 vs 4Q2022 +16% (YOY) (YOY) 1.200 61 59 60 113 116 109 110 111 52 52 1.000 812 GLA ('000) 800 600 0% 400 200 0
Slide 24: Portfolio Investments
Corporate Presentation Cemento Infra Portafolio Inversiones de Por tafolio 26 March 2024
Slide 25: Urban Development
Corporate Presentation Portfolio Investments Urban Development Cemento Infra Portafolio Development Strategy Value Generation Our Masterplans: establish pathways and public areas, assign areas for urban facilities and zones of Since 2016, the NDU has generated over COP 500 billion in net cash flow e
Slide 26: Investment in Grupo Sura and Grupo Nutresa
Corporate Presentation Portfolio Investments Investment in Grupo Sura and Grupo Nutresa Cement Infra Portfolio Companies and Subsidiaries Long-term Benefits 1. Long-term Profitability ▪ Grupo Sura: 18% CAGR (TSR since 2000) ▪ Grupo Nutresa: 20% CAGR (TSR from 2000 to 2023) 2. Enabling infrastructure
Slide 27: Shareholders
Corporate Presentation Shareholders Shareholding Structure - The company has over 15,000 shareholders Shareholders 31/12/2023 Cross-Holding Structure 31/12/2023 Shareholding corresponds to political rights Political Rights Economic Rights 29% 27% 31% 36% 10% 36% 651,7 862.5 13% 28%1 million ordinary
Slide 28: Corporate Governance
Corporate Presentation Board of Directors Corporate Governance Board of Directos Rosario Jorge Ana Cristina Armando Claudia Mauricio Esteban Córdoba Uribe Arango Montenegro Betancourt Ortega Piedrahita Independent Indepenent Independent Independent Patrimonial Independent Patrimonial (President of t
Slide 29: Financial Results
Corporate Presentation Financial Results Cemento Infra Portafolio 31 March 2024
Slide 30: Sound separated results for Grupo Argos
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Sound separated results for Grupo Argos Revenue EBITDA Net Income Figures in COP bn Figures in COP bn Figures in COP bn +32% +83% +99% +14% +13% +128% 1.427 945 789 779 476 346 4T2022 Dec22 4T2023 Dec23 4T2022 4T2023 4T2022 4T2023 Dec22 Dec23 Dec22 D
Slide 31: Consolidated results grow compared to the previous year
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Consolidated results grow compared to the previous year Net income controlling Revenue EBITDA Net Income interest Figures in COP tn Figures in COP tn Figures in COP bn Figures in COP bn +32% +6% +14% +5% +13% +1% +4% 22,6 5,5 1.440 1.460 881 916 21,3
Slide 32: Revenues up 6% and EBITDA up 5% year-to-date
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Revenues up 6% and EBITDA up 5% year-to-date Summary P&L Quarterly Results Cumulative Results YTD COP bn 4Q - 2023 4Q - 2022 Var.(%) Dec-23 Dec-22 Var.(%) Revenue 5,611 5,740 -2% 22,593 21,340 6% Costs, expenses, and other revenue Inc. Operational Eb
Slide 33: Reduced revenue due to deconsolidation of concessions assets
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Reduced revenue due to deconsolidation of assets in the concessions business Consolidated revenue COP bn Consolidated EBITDA COP bn 7.000 34 6.000 5.720 5.611 1.324 779 -231 -45 -122 1.109 28 -138 5.000 -436 -29 -69 -42 -51 4.000 3.000 2.000 -2% -16%
Slide 34: Increased expenditure from operational dynamics and inflation
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Increased expenditure associated with improved operational dynamics and inflation Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa Expenditure -4% +27% +22% -59% 369 Odinsa 593 138 567 291 113 51 21 4Q2022 4Q - 2022 4Q202
Slide 35: Sound equity structure supported by a AAA rating
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Grupo Argos sound equity structure supported by a AAA rating Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 12.859 449 14.934 13.466 1.127 1.380 271 10.831 27 390 13 631 672 10 4 1.613 123 268 5.459 5.661 4.340 222 178 4.883
Slide 36: Separated EBITDA grows 99% YOY
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Separated EBITDA grows 99% YOY Summary P&L Quarterly Results Cumulative Results YTD COP bn 4Q - 2023 4Q - 2022 Var.(%) Dec-23 Dec-22 Var.(%) Revenue 173 156 11% 1,427 779 83% Costs and other expenditures 117 58 102% 314 126 148% 1.427 bn GA Expenses
Slide 37: Separated revenue was COP 173 billion during 4Q2023
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Separated revenue was COP 173 billion during 4Q2023 Revenue distribution 4Q2023 COP bn % Variation (YOY) -31% n/a -213% +176% -113% +109% +11% +999000% +499000% -1000% 173 -32 8 -4 14 120 68 Real Estate Negocio Business Inmobiliario Financial Activid
Slide 38: Treasury generated COP 113 billion in cash returns
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 The treasury generated COP 113 billion in cash returns, equivalent to 49% of financial expenditures Cash flow Notes COP million COP million 1. Div. received: 978,204. Div. Paid: 482,297 1 Dividendos netos 495.907 2. 275,906 from sale of share in Opai
Slide 39: 2024 debt maturities covered by credit renegotiation and term deposits
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Grupo Argos begins 2024 with debt maturities covered by credit renegotiation and Term Deposit portfolio Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life Net Debt = 0.7 tn (-37% YOY) 0% 0% 21% 32% 0% 33% 0% 14% 5,6 5,5
Slide 40: Sustainability as a priority for Grupo Empresarial Argos
Corporate Presentation REAL ESTATE BUSINESS Sustainability as a priority for Grupo Empresarial Argos • On December 8, S&P Global reaffirmed the leadership Grupo Empresarial Argos companies have maintained on the Dow Jones Sustainability Index over the last 12 years. On this occasion, Cementos Argos
Slide 41: Results exceed revenue guidance for 2023
Corporate Presentation GRUPO ARGOS RESULTS 4Q2023 Grupo Argos reports results that exceed revenue guidance for 2023 COP 22.6 COP 5.5 2023 Revenue 2023 EBITDA 22.0 - 22.5 5.2 - 5.5 COP trillion COP trillion 2023e Revenue 2023e EBITDA Guidance for 2023 Consolidated Grupo Argos results 43 March 2024
Slide 42: www.grupoargos.com
Corporate Presentation CEO CFO Jorge Mario Velasquez Alejandro Piedrahita Chief Officerfor Corporate IR Director Affairs Carolina Arango Juan Esteban Mejia 315 8400 (574) 315 8400 carangoz@grupoargos.com jemejia@grupoargos.com www.grupoargos.com 44 March 2024
Slide 43: Corporate Presentation March 2024
Corporate Presentation 45 March 2024