Grupo Argos S.a. · BVC:GRUPOARGOS
Grupo Argos — Q3 2021 Earnings Presentation
39 slides from Grupo Argos's earnings presentation, Nov 1, 2021
Slide 1: Third Quarter 2021 Results Presentation
QUARTERLY RESULTS PRESENTATION Third Quar ter 2021 Results Presentation November 2021 1 November 2021 Hotel Calablanca Barú
Slide 2: Disclaimer
Resultados QUARTERLYPrimer RESULTS Trimestre PRESENTATION del 2019 QUARTERLY RESULTS PRESENTATION 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, circ
Slide 3: Grupo Argos consolidates its position as an infrastructure asset manager
GRUPO ARGOS RESULTS 3Q2021 Grupo Argos consolidates its position as an infrastructure asset manager Involvement of Macquarie in 3Q21 Energy platform based on the Consolidation of highway and airport Colinversiones portfolio. Partner platforms after Odinsa’s acquisition and involvement (LP) in the So
Slide 4: Cumulative results for the year show strong operational leverage
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Cumulative results for the year show strong operational leverage Revenue1 EBITDA1 Net Income1 Figures in COP tn +14% +26% +410% 3.2 11.9 0.9 10.4 2.6 0.2 Sep 2020 (YTD) Sep 2021 (YTD) Sep 2020 (YTD) Sep 2021 (YTD) Sep 2020 (YTD) Sep 2021 (YTD
Slide 5: Operating Results – Grupo Argos Businesses
QUARTERLY RESULTS PRESENTATION Operating Results – Grupo Argos Businesses 5 November 2021
Slide 6: CemArgos: Market economic dynamics support a 12% growth in cement volumes
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 CemArgos: Market economic dynamics support a 12% growth in cement volumes Solid cement volume performance • Good market economic dynamics • The Colombian retail segment and specialized higher value added products are strengthened, improving t
Slide 7: Business dynamics enable proforma EBITDA growth despite inflation in inputs and freight
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Business dynamics enable proforma EBITDA growth even with global inflation regarding inputs and freight Operational Revenue COP bn EBITDA1 COP bn 3Q2021 vs 3Q2020 +5% 3Q2021 vs 3Q2020 -1% CementCemento Volumen Volumes (YOY) (YOY) 2.50 EBITDA
Slide 8: Celsia: Committed to the country's energy transformation, will build a 99 MW solar plant
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Celsia: Committed to the country's energy transformation, Celsia will build a 99 MW solar plant 225 GWh-year awarded in the last renewable energy auction • The company was awarded 225 GWh-years in the renewable energy auction. • The awarded e
Slide 9: Contracting and business diversification enables growth in a low energy price environment
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Contracting and business diversification enables growth in a low energy price environment Operational Revenue COP bn EBITDA COP bn Generación Generation(ex. (ex.ZF) ZF) Comercialización Commercialization 3Q2021 vs 3Q2020 +19% 3Q2021 vs 3Q2020
Slide 10: Odinsa: Grupo Argos and Odinsa become consolidated as highway asset managers
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Odinsa: Grupo Argos and Odinsa become consolidated as highway asset managers in the region Partnership with Macquarie to create a highway platform First Level Partner • Macquarie is the world's leading infrastructure asset manager (AUM = US$
Slide 11: Airport traffic for September was 2.4 mm PAX and highway TPD 127 thousand
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Airport traffic for September was 2.4 mm PAX and highway TPD ended the month at 127 thousand vehicles Operational Revenue COP bn EBITDA COP bn 3Q2021 vs 3Q2020 +49% 3Q2021 vs 3Q2020 +77% Highways (TPD) Carreteras (TPD) Airports (PAX) Aeropuer
Slide 12: Real Estate Business: VIS demand drives Ciudad Mallorquín commercial strategy
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Real Estate Business: VIS demand drives Ciudad Mallorquín commercial strategy with excess demand Real Estate Business Progress in Urban Development Projects COP bn P&L 3Q21 3Q20 Var (%) Santa Marta Revenue 30 36 -18% Barranquilla ✓ Lot sold i
Slide 13: Pactia: Favorable occupancy in commercial, logistics, and office assets
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Pactia: Favorable occupancy in commercial, logistics, and office assets EBITDA Distribution (Cumulative) COP bn Important Figures COP bn 112 PACTIA FCP -1 -1 -2 COP bn 3Q21 3Q20 Var. (%) Sep-21 Sep-20 Var. (%) 35 Revenue 88 66 34% 249 208 20%
Slide 14: Consolidated and separate financial results
QUARTERLY RESULTS PRESENTATION Consolidated and separate financial results 14 November 2021
Slide 15: Operating results translate into a 28% consolidated Ebitda margin
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Operating results translate into a 28% consolidated Ebitda margin for the period P&L Summary Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 3Q - 2021 3Q - 2020 Var.(%) Sep-21 Sep-20 Var.(%) Sep-19 Var.(%
Slide 16: 19% revenue growth and 5% EBITDA growth due to improved operating leverage
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 19% revenue growth (YOY) and 35% EBITDA growth (YOY) due to improved operating leverage Consolidated revenue 3Q2021 COP bn Consolidated Ebitda 3Q2021 COP bn 4,500 1,200 77 15 1,159 23 4,115 29 76 155 17 4,000 252 156 3,453 126 1,
Slide 17: Commitment to maintaining efficiencies and austerity policy regarding structural expenses
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Commitment to maintaining efficiencies and austerity policy regarding structural expenses Consolidated Expenditure Cementos Argos Expenditure Celsia Expenditure Odinsa + Opain Expenditure -3% +1% -23% +10% 417 406 OPAIN Odinsa 92
Slide 18: Financial discipline and cash generation enable reduced indebtedness
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS CONSOLIDATED RESULTS 3Q2021 Financial discipline and cash generation enable reduced indebtedness Consolidated debt COP bn Net debt1 COP bn Net financial expenses COP bn 18,262 16,698 16,067 17,059 266 257 1,742 1,626 1,640 18 -1,115 -89 1,645 22 4,551 4,291
Slide 19: Proforma cumulative EBITDA and net income growth vs 2019
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 Proforma cumulative EBITDA and net income growth of 26% and 57% respectively vs 2019 P&L Summary Quarterly Results Cumulative Results for the Year Cum. ‘21 vs ‘19 COP bn 3Q - 2021 3Q - 2020 Var.(%) Sep-21 Sep-20 Var.(%) Jun-19 Var.(%
Slide 20: Greater revenue contributions from all businesses for a total increase of 607% YOY
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 Greater revenue contributions from all businesses for a total increase of 607% YOY Revenue distribution 3Q2021 COP bn Controllable Expenses 3Q2021 COP bn % Variation (YOY) 30 27 -13% +999000% +225% -100% +71% +37% +182% +422% +607% 2
Slide 21: Ongoing search for efficiency in expenditures at Grupo Argos and the Real Estate Business
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 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 Business Expenses at the Real Estate Business 1
Slide 22: Normalization of minimum cash strategy
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Normalization of minimum cash strategy Cash flow COP bn Notes 1 Net dividends Dividendos netos 32 1. Dividends received: COP 289 billion, dividends paid: COP 258 billion I. Grupo Argos paid 100% of the dividend corresponding to its 2020 resul
Slide 23: Cost of debt increases less than inflation thanks to treasury strategies
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 Cost of debt increases less than inflation thanks to treasury strategies Indebtedness1 COP bn Maturity profile (capital) COP bn Cost of debt and half-life 3% 8% 0% 17% 24% 6% 8% 0% 24% 0% 10% 14.0% 35% 7% Bridging credit Bonds Bancos
Slide 24: Grupo Argos enables a new tool to monitor ESG progress
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS SEPARATE RESULTS 3Q2021 Grupo Argos enables a new tool to monitor ESG progress Tool Features Tool Example Grupo Argos has made available a new tool for more streamlined access to ESG-related materials at Grupo Argos. https://www.grupoargos.com/es-co/sosteni
Slide 25: Attractive valuation potential according to current arbitrage prices
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 Attractive valuation potential according to current arbitrage prices Grupo Argos Arbitrage Price1 (11/11/2021) COP / Share Historical Arbitrage Gap1 (Relative Prices) +53% (Ord acc.) 120 Lockdown begins (Mar – 2020) +108% (Pf acc.) +33% (Ord
Slide 26: 2021 Results Guidance
QUARTERLY RESULTS PRESENTATION GRUPO ARGOS RESULTS 3Q2021 2021 Results Guidance 15.6 – 16.2 4.2 - 4.5 1.0 - 1.2 Billions of COP Billions of COP Billions of COP Revenue 2021e EBITDA 2021e Net Income 2021e Consolidated Grupo Argos results for 2021 (results include EBITDA generated from the sale of the
Slide 27: Annexes
QUARTERLY RESULTS PRESENTATION Annexes 27 November 2021
Slide 28: Cement Business
QUARTERLY RESULTS PRESENTATION Cement Business 28 November 2021
Slide 29: Cement volume closes the quarter with 4.2 mm ton and growth in the 3 regions
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 3Q2021 Cement volume closes the quarter with 4.2 mm ton and growth in the 3 regions Cement Volumes* millions of tons Concrete Volumes* millions of m3 USA COL C y CA USA COL C y CA 0.1 4.2 0.2 2.0 3.8 1 0.2 0.0 0.1 0.0 1.9 0.0 1.4 0.6 -0.2 1.3 Proforma v
Slide 30: Business dynamics enable proforma EBITDA growth despite inflation in COGS and freight
QUARTERLY RESULTS PRESENTATION CEMENT BUSINESS 3Q2021 Business dynamics enable proforma EBITDA growth even with global inflation related to COGS and freight Revenue COP bn Ebitda COP bn Net profit (controlling interest) COP bn 2,364 75 30 0 2,489 479 473 20 26 3 -5 -30 Proforma1 +2% 100 55 +5% -1% +
Slide 31: Energy Business
QUARTERLY RESULTS PRESENTATION Energy Business 31 November 2021
Slide 32: Positive contributions by Colombia and Central America to energy generation and sales
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 3Q2021 Positive contributions by Colombia and Central America to energy generation and sales Generation (GWh) Energy Sales (GWh) Commercialization (GWh) COL C.A COL C.A No Regulado Unregulated Regulado Regulated 1,229 29 1,641 23 908 1,178 29 22 1,504 1
Slide 33: Revenue, EBITDA and Net Income growing by double digits at Celsia
QUARTERLY RESULTS PRESENTATION ENERGY BUSINESS 3Q2021 Revenue, EBITDA and Net Income growing by double digits at Celsia Revenue COP bn Ebitda COP bn Net income controlling interest COP bn COL C.A COL C.A 14 316 25 978 46 77 133 257 64 819 119 94 50 56 859 253 725 207 +37% +19% +23% 3Q 3Q - 2020 COL
Slide 34: Concessions Business
QUARTERLY RESULTS PRESENTATION Concessions Business 34 November 2021
Slide 35: 2.4 million mobilized PAX through our airports in September
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 3Q2021 2.4 million mobilized PAX through our airports in September, accelerating expectations for recovery Average daily vehicles Thousands of vehicles Airport traffic Millions of passengers (PAX) AKF P2 MVM CTAO ADN BTA OPAIN QUIPORT 2.4 128.5 7.1
Slide 36: Growing results thanks to highway strength and airport recovery
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS 3Q2021 Growing results thanks to highway strength and airport recovery Revenue COP bn Ebitda COP bn Net income controlling interest COP bn 280 36 2 209 57 36 62 3 -10 -1 52 0 188 1 118 +22x +49% +77% 3 2020 2021 2020 2021 Otros Eliminaciones Otros
Slide 37: Opain closes the quarter with the first positive net income since the start of the pandemic
QUARTERLY RESULTS PRESENTATION CONCESSIONS BUSINESS - OPAIN 3Q2021 Opain closes the quarter with the first positive net income since the start of the pandemic Passengers Millions of passengers (PAX) 3.1 Doméstico Domestic Internacional International 2.8 2.1 2.1 2.2 1.6 1.8 1.4 1.3 1.4 1.3 1.1 1.2 1.
Slide 38: CEO, CFO, IR Manager contacts
QUARTERLY RESULTS PRESENTATION CEO CFO Jorge Mario Velasquez Alejandro Piedrahita IR Manager IR Director Natalia Agudelo Juan Esteban Mejia Tel: (574) 319 8712 Tel: (574) 315 8400 E-mail: nagudelop@grupoargos.com E-mail: jemejia@grupoargos.com www.grupoargos.com 38 November 2021
Slide 39: QUARTERLY RESULTS PRESENTATION November 2021
QUARTERLY RESULTS PRESENTATION 39 November 2021