Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Corporate Update (November 2024)
14 slides from Grupo Argos's corporate update, November 2024
Slide 1: U.S. Platform Monetization
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Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements and information related to Grupo Argos S.A. and its subsidiaries (together referred to as “Grupo Argos”) that are based on current expectations, estimates, projections and assumptions regarding future events and economic performance. Vario
Slide 3: Monetization of Investment in Summit Materials
As a result of the strategic decisions Cementos Argos has made regarding its U.S. investment since December 2021, the company will have received close to USD 4.52 billion from its U.S. platform Cement Infrastructure Portfolio 1 31% stake in Energy Argos Energy Energy Toll Road Airport Summit Transmi
Slide 4: Cementos Argos achieves successful monetization of its U.S. platform
Cementos Argos achieves Successful Monetization of its U.S. Platform In figures $52.5 c. 50% return in less than a year (vis-a-vis $36 at combination with Summit) per share of Summit Cash consideration of ▪ Equivalent to COP 10,000 per share of Cementos Argos and COP 8.400 per share of $2.9b Grupo A
Slide 5: 2005–2010: Argos enters the US market via RMX acquisitions
2005 – 2010: Argos enters the US market via RMX acquisitions 800 14.0% Investment of $815m 700 12.0% ▪ Following 50+ years of exports to multiple US markets, 600 10.0% Argos decides to vertically-integrate into the RMX segment 500 8.0% with the acquisition of 9 of RMX clusters in: 400 6.0% ▪ Texas ▪
Slide 6: 2011–2016: Growth in cement, expansion in the Southeast and Mid-Atlantic
2011 – 2016: Growth in cement, expansion in the Southeast and Mid-Atlantic 1,400 15.0% Investment of $2.2b 1,200 10.0% ▪ First cement acquisition in 2011 marks a turning point in 1,000 the strategy of the company, becoming an established and 800 5.0% vertically integrated player in the US 600 ▪ 4 Ce
Slide 7: 2017–2023: Profitability via operational excellence and divestments
2017 – 2023: Growth in cement, expansion in the Southeast and Mid-Atlantic 1800 25.0% 1600 Divestments of $480m 20.0% 1400 1200 15.0% ▪ 10 divestitures of RMX clusters in: 1000 ▪ Arkansas 10.0% 800 ▪ Florida 600 5.0% ▪ Carolinas 400 0.0% 200 -5.0% 0 -200 -10.0% Revenues EBITDA EBITDA Margin +11% +55
Slide 8: Optimization of the platform paves the way to become a listed entity in NYSE
Optimization of the Platform Paves the Way to become a listed entity in NYSE SEPTEMBER 2023 2021 Unlock value through asset We announce our intention to combination with Summit pursue an IPO for our U.S. Materials operations READY to launch IPO FOCUS ON profitability and ASSET optimization 2022 – 1H
Slide 9: 2023: Combination with Summit Materials streamlined our strategy in the US
2023: Combination with Summit Materials streamlined our strategy in the US and unlocked value to our shareholders 10,000 9,000 The combination between Argos USA and Summit creates a 8,000 leading building materials platform with national scale, 7,000 generating synergies for $130m, of which $40m wer
Slide 10: 2005 to 2024: Revenues and EBITDA growth
2005 to 2024 Revenues increased by EBITDA increased by $3b of total investments 3+ times 4+ times $1.2b $2.9b $445m of distributions Cash consideration from Cash consideration from sale between 2022 and 2023 combination with Summit to Quikrete
Slide 11: 2024: Argos monetizes its stake in Summit Materials
2024: Argos monetizes its stake in Summit Materials Argos Latam operations potential of value unlocking Cementos Argos takes a significant step to create shareholder value by monetizing its stake in Summit Materials through its $167m sale to Quikrete at $52.5 per share $2.9b $2.7b - COP 850 $2.9b $4
Slide 12: Argos in the U.S.: a journey of success in figures
Argos in the U.S.: a journey of success in figures return In US billions 2,109 2.7 4.3 TOTAL INVESTMENT 1.2 2.1 0.4 0.5 $3b 904 Investments 3.O 0.9 1.6 2.1 4.7x Total Debt Equity FCF Divestitures Distributions Cash out 1 Cash out 21 Debt Total Return Debt Equity Investment Repayment Since 2005, Argo
Slide 13: 2025 & beyond
2025 & beyond PROCEEDS FROM THE SUMMIT SALE WILL BE RE-DEPLOYED IN THE US MARKET ▪ The US has proven to be a market with significant opportunities ▪ Argos will continue to leverage in its strategic position in Latam and possibilities to generate long-term value and its firepower to capture value in
Slide 14: Next Steps
Next Steps • The transaction will be subject to customary governmental and shareholders approvals 1 THE TRANSACTION IS SUBJECT TO GOVERNMENTAL APPROVALS 2 THE TRANSACTION IS ALSO SUBJECT TO SUMMIT´S SHAREHOLDERS APPROVAL MAR 31ST, 2025 2024 Q4 2025 Q1 the deal IS EXPECTED to close BY the first half