This presentation contains certain forward- looking statements and information relating to CEMENTOS ARGOS S.A. and its subsidiaries (collectively "ARGOS") that are based on knowledge of present facts, expectations and projections, circumstances and assumptions about future events.
Many factors could cause ARGOS' future results, performance or achievements to be different from those expressed or assumed.
If unforeseen events occur, or assumptions or estimates prove incorrect, future results may vary materially from those stated herein.
Forward-looking statements are made as of this date and ARGOS neither intends nor assumes any obligation to update these forward-looking statements as a result of new information, future events or otherwise.
Cementos Argos 2024 Corporate Presentation
- 8 cement plants were founded in Colombia
- In the 1970s, cement exports to the United States began.
- Consolidated presence in the Caribbean and Central America through joint ventures, exports and trading.
- Acquisition of ready-mix and cement assets in the US
- Consolidated presence in the US with the acquisition of 4 integrated cement plants, 3 grinding mills, more than 280 ready-mixplants, and 21 ports and terminals.
- US EBITDA grows +56% vs. 2016
- Strategic divestitures of ready-mixclusters
- Concentration of ready-mix business in urban areas and close to own cement plants
- U.S. assets are combined with Summit Materials, creating the fourth-largest cement company and sixth-largestaggregates company by capacity in the U.S.
Cementos Argos 2024 Corporate Presentation
We are
in Colombia, Central
America and the Caribbean.
We are the
with a 31%
stake in the company.
Value-generating businesses leveraged on
Cementos Argos 2024 Corporate Presentation
Cementos Argos is a company with exposure to the U.S. building materials industry through its 31% stake in Summit Materials and is an operator of high-performance building materials assets in LATAM, positioned to supply high-growth markets.
7,800 mm USD
Market Cap
990m USD
Guidance EBITDA 2024
31% stake | 4to U.S. cement producer |
6to U.S Aggregates producer |
1,230 mm USD | 295 mm USD |
REVENUES LTM 1Q24* | EBITDA LTM 1Q24 |
41.2% | Colombia | 37.5% | |
58.8% | 62.5% | ||
CCA | |||
7 integrated cement plants
7 cement grinding mills
14.4 MTPA of cement capacity 46 Concrete Plants
5 Cementos Argos S.A. has a presence in Venezuela through its subsidiary Corporación de Cemento Andino C.A., which is currently involved in a judicial process for the expropriation by Venezuelan trade of its plant located in the state of Trujillo in Venezuela.
Cementos Argos 2024 Corporate Presentation
1 | construction | |
materials market | ||
2 | High-performance | |
in LATAM in the materials industry |
3
4
in high-
potential complementary businesses
for future growth
5 | Focus on transferring value to |
shareholders - |
6
Why invest in Cementos Argos?
1
, through its 31% stake in Summit Materials, captures the opportunities of the world's most attractive building materials market in an optimal and far-reaching way.
30 | 11.6 | 5.5 | 990 m | >30% |
Infrastructure Investment
and Jobs Act (IIJA)
Inflation reduction Act (IRA)
Investments of U$1.2 tn for transportation and infrastructure
U$242 billion in investments in clean energy economies
States | MTPA | MSTPA | EBITDA | Mgn EBITDA |
Cement | Aggregates | Guidance 2024 | Adjusted | |
Elevate Summit Goal |
Unique positioning
through
participation in the Summit platform to capture market opportunitiesfor the country's housing and infrastructure deficit.
7
Historical underbuilding of the U.S. housing market.
Housing | |||||||||||||||||||||||||||||||||||||||||||
units | |||||||||||||||||||||||||||||||||||||||||||
Accumulated overbuilding | |||||||||||||||||||||||||||||||||||||||||||
Accumulated under-construction | |||||||||||||||||||||||||||||||||||||||||||
Housing starts | |||||||||||||||||||||||||||||||||||||||||||
1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Cumulative infrastructure investment needs in the U.S.
6,100 | |||
5,100 | 2,588 | ||
4,100 | |||
3,100 | 5,937 | ||
2,100 | 3,350 | ||
1,100 | |||
100 | |||
USD Mill | Financed gap | Gap | Total needs |
Why invest in Cementos Argos?
2
8.5 | ✓ Multi-planta interconnected with the country's most efficient logistics network | |||||||
6 | 40 | 1 | 5 | ✓ +9,000 active customers | ||||
Cement | Concrete | Sea port | Aggregates | MTPA Cement | ✓ | 90% of the national territory covered | ||
plants | plants | plants | Capacity | ✓ | +7,000 direct hardware stores | |||
Annual
domestic
cement demand
13
M Ton
- Formal housing
40% ✓ Infrastructure BULK ✓ Driven by economic
cycles
- Retail sales
60% ✓ Driven by private consumption
BAGS
- Resilient to weak economic cycles
We are the
largest
integrated
producer, with
national
coverage and a
strong
competitive advantageto capture growth in infrastructure and housing.
Billions of pesos | |||||||||||||||
$ 2,958 | |||||||||||||||
$ 2,708 | |||||||||||||||
$ 2,346 | $ 2,422 | ||||||||||||||
$ 2,261 | 25.2% | ||||||||||||||
22.3% | |||||||||||||||
22.2% | |||||||||||||||
21.7% | |||||||||||||||
19.2% | |||||||||||||||
$ 605 | $ 744 | ||||||||||||||
$ 434 | $ 522 | $ 524 | |||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | |||||||||||
Ingresos | EBITDA | Margen | |||||||||||||
Why invest in Cementos Argos?
2
1 7
Cement Grinding
plantstations
6 | 10 |
Concrete | Sea ports |
plants |
✓ Market leaders in Honduras and Panama
1 ✓ Recent incursion into Guatemala, interconnected with
Aggregates Honduras plant
✓ Panama maritime terminal for exports and imports
Honduras
Of regional
EBITDA
- Country's demand : 2.4 million tons
- Market: 80% informal, 20% formal
- Integrated plant to supply the
local market +
9Guatemala
República
Dominicana
Of regional
EBITDA
- Country's demand: 5.4 million tons
- Cement consumption derived from tourism, mining and other services and products associated with the country's free trade zones.
Panamá
Of regional
EBITDA
- Country's demand: 1.2 million tons
- Market: 50/50 between formal and informal
- Diversified portfolio: aggregates, ready mixes
Million dollars | ||||||||||||||
27.8% | ||||||||||||||
27.5% | ||||||||||||||
26.1% | ||||||||||||||
22.1% | ||||||||||||||
$ 535 | $ 525 | 20.8% | ||||||||||||
$ 508 | ||||||||||||||
$ 447 | $ 514 | |||||||||||||
$ 147 | $ 117 | $ 146 | $ 112 | $ 107 | ||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||
Ingresos | EBITDA | Mg EBITDA | ||||||||||||
Why invest in Cementos Argos?
3
Largest calcined clay plant in the
Americas
A 450,000 TPA
B Up to -50%
C ~30% of
D -20%
Argos USA, now part of Summit Materials, was invited by the DOE to negotiate for a grant to develop 4 calcined clay facilities in the USA.
We have solutions at the forefront of the
digital revolution.
Combining data science + artificial intelligence to
optimize operational performance
Saved during | Estimated |
2023 | savings 2024 |
It allows to improve indicators such as:
- Clinker / Cement Factor
- Caloric consumption
- CO2 emissions
10