Presentation of Results

Presentation of
Results
2Q2016
IMPORTANT NOTE
This presentation contains certain forward-looking information and statements related to GRUPO ARGOS and its subsidiaries
that are based on knowledge of current events, expectations and forecasts, circumstances, and assumptions of future events.
Many factors could cause the future results, performance or achievements of GRUPO ARGOS and its subsidiaries to be
different to those expressed or assumed herein.
If an unforeseen situation occurs, or the premises or estimations are shown to be incorrect, the future results may be
considerably different to those stated herein. The forward-looking statements are made to this date, and GRUPO ARGOS and
its subsidiaries do not claim nor assume any obligation to update these forward-looking statements as a result of new
information, future events or any other factor.
Relevant Events 2Q2016 – Acquisition Martinsburg
Plant
Consolidation as the 4th biggest players in
the United States.
29% increase of installed capacity in the USA,
reaching 10,7mn tons (8,5% of the countries
installed capacity).
10% Increase in the companies total installed
capacity
Assets with positive EBITDA in the market
with great growth potential.
Martinsburg Plant, US
3
Acquisition largely financed with the divestment
of non-strategic assets, generating value for
shareholders.
Increase of 2.2 million tons of cement an
1.6 million tons of clinker per year.
Relevant Events 2Q2016 - Simplifying ODINSA's
structure
Position the company as one of the main
companies in Colombia's infrastructure
sector.
Controlling stake in 3 on mature
concessions, 2 airport concessions, and 2
projects under construction
Increased share in Autopistas del Nordeste
and Boulevard Turístico del Atlántico in the
Dominican Republic.
Pacifico 2
Centro Argos para la Innovación, Medellín
4
Starting negotiations increase ODINSA's
share in the Autopista Conexión Pacífico 2
Concession Project in Colombia.
Consolidated Results
2Q 2016
Billions of COP
January - June
2016
2015
Var.(%)
2016
2015
Var.(%)
Revenue
3,396
2,850
19
7,452
5,490
36
Costs and Expenses
2,683
2,311
16
5,885
4,387
34
Operating Profit
643
563
14
1,246
906
37
EBITDA
892
765
17
1,854
1,435
29
26.26
26.85
24.89
26.15
EBITDA Margin (%)
 Active management of the investment portfolio resulting in generating COP 1,854 million in EBITDA at June
2016.
 Consolidation of ODINSA.
5
Consolidated Results
Revenue
EBITDA
Billions of COP
Billions of COP
8.000
7.452
1.600
5.490
3.396
5.000
4.000
2.000
1.854
1.800
7.000
6.000
EBITDA Margin (%)
26,3
2016
1.435
1.400
1.200
+19%
1.000
2.850
+17%
765
800
3.000
26,9
600
2.000
1.000
4.056
+54%
2.640
400
+44%
963
2015
25,4
670
200
0
0
2015
2016
1Q
6
23,7
892
2Q
2015
2016
1Q
2Q
0
10
20
30
Consolidated Results - Revenue
+ 474
+ 665
+8
+0
- 112
7.452
+6
+ 920
5.490
Revenuejunio
June2015
2015 Cemento
Cement
Ingresos
2016
Energy
Energía
Coal
Carbón
Real
Estate
Inmobiliario
Concessions
Concesiones
Corporate
Corporativos
Portfolio
Revenue
June
Portafolio Ingresos
junio
2016
 Positive contribution of the cement business with 27% growth, leveraged by the revenue in the USA.
 Contribution of COP 474,000 million by ODINSA that was not consolidated in 2015. In May, ODINSA consolidated Autopistas del
Nordeste and Boulevard Turístico del Atlántico.
 Normalization of Celsia's operations with a 43% variation in revenue.
7
Consolidated Results – EBITDA
+ 254
+ 61
+5
+1
Energía
Energy
Carbón
Coal
Inmobiliario
Real Estate
-3
- 81
1.854
+ 183
1.435
EBITDA junio
Cemento
EBITDA
June 2015 Cement
2015
Concesiones
Corporativos
Concessions
Corporate
Portafolio
EBITDA junio
Portfolio EBITDA June
20162016
 Positive contribution from the cement business. The U.S. Regional Office obtained the highest EBITDA margin since the assets
were acquired (14.9%).
 Consolidation of ODINSA for 2Q16.
 EBITDA generated by Celsia during the semester represents 77% of the total EBITDA achieved in 2015.
8
Consolidated Results – Net Profit
+ 45
- 22
- 79
293
+9
+1
+6
-1
252
Utilidad neta
Net Profit
March
2015
marzo
2015
9
Cemento
Cement
Energía
Energy
Carbón
Coal
Inmobiliario
Real Estate
Concesiones
Concessions
Corporativos
Corporate
Portafolio
Utilidad neta
Portfolio Net Profitmarzo
March2016
2016
Consolidated Balance Sheet - June 2016
June 2016
Assets
Trillions of COP
Short-term
Corto
Plazo (ST)
19,6
41,9
17%
14%
Long-term Investments
Inversiones
Permanentes
Patrimonio
Equity
22,4
Activos
Assets
Assets
Activos
Pasivo
Liabilities
24%
PP&E
PP&E
45%
Other,
Otros
LPlong-term (LT)
Pasivo & &
Patrimonio
Liabilities
Equity
December 2015
Liabilities
Corto
Plazo
Short-term
Trillions of COP
18,9
41,8
10
Pasivo & Patrimonio
Liabilities
& Equity
Pasivo
Liabilities
14%
Long-term Investments
Inversiones
Permanentes
24%
Equity
Patrimonio
22,9
Activos
Assets
Assets
Activos
17%
PP&E
PP&E
45%
Other,
Otros
LPLT
Separate Results
2Q 2016
Billions of COP
2016
2015
Var.(%)
2016
2015
Var.(%)
Revenue
115
171
-33
282
297
-5
Costs and Expenses
20
75
-73
58
96
-40
Operating Profit
97
113
-14
202
190
6
EBITDA
98
113
-13
213
201
6
85.3
66.0
75.6
67.6
EBITDA Margin (%)
11
January - June
Separate Balance Sheet - June 2016
June 2016
Asset
Trillions of COP
Corto
Plazo (ST)
Short-term
16,0
Assets
2,0
Activos
14,0
Equity
Patrimonio
11%
0%
4%
Long-term Investments
Inversiones
Permanentes
PP&E
PP&E
Pasivo
Liabilities
Activos
Assets
Pasivo & Patrimonio
Liabilities
& Equity
85%
Liabilities
December 2015
Trillions of COP
7%
2,0
16,2
14,1
Assets
Activos
12
Pasivo &&Patrimonio
Liabilities
Equity
Other,
Otros
CPST
20%
LT Bonds
Bonos
LP
28%
Patrimonio
Equity
Pasivo
Liabilities
Activos
Assets
Other,
Otros
LPLT
LT FRAs
Oblig.
Fras LP
45%
Other,
Otros
LPLT
Cement
Business
Relevant Events
Successful placement of
straight bonds for the
value of COP 400,000
million.
Centro Argos para la Innovación, Medellín
14
Relevant Events
Launch of the BEST
operational excellence
program with expected
savings in fixed costs of
~COP 20,000 million
each year.
Camiones Mezcladores USA
15
Volumes, Second Quarter
Cement
Cement Sales
3.605
3.535
+148
+198
Colombia
+20
30%
35%
Caribe y CA
35%
2015
Colombia
Caribe y CA
USA - Sureste
2016
Concrete Sales
Concrete
2.923
USA - Sureste
-75
+7
+36
+65
2.956
27%
28%
Colombia
Caribe y CA
4%
2015
16
Colombia
Caribe y CA
USA - Sureste
USA Surcentro
2016
41%
USA - Sureste
USA - Surcentro
Financial Results
Revenue
EBITDA
Billions of COP
Billions of COP
5.000
4.402
4.500
4.000
3.500
2.189
3.000
2.500
1.000
700
1.826
500
400
1.500
300
+34%
1.653
500
2.213
200
100
19,9
2016
678
19,2
436
600
+20%
2.000
1.000
861
900
800
3.479
EBITDA Margin (%)
371
20,3
425
2015
18,6
307
0
0
2015
2016
1Q
2Q
2015
2016
1Q
0
10
20
2Q
 Double-figure growth in revenue, EBITDA and net profit from the performance of operations in the United States, Caribbean and Central America, as
well as an increase in levels of operational efficiency.
 The U.S. Regional Office obtained the highest EBITDA margin since the assets were acquired (14.9%).
 Greatest EBITDA recorded in a quarter for the Company.
17
Energy
Business
Relevant Events
Normalization of weather
conditions in Colombia —
water levels in the
reservoirs at the end of the
quarter were at 87% of the
historical average.
Calima
19
Relevant Events
The operations in Central
America, as well as the
hydroelectric power
generation and distribution
businesses, presented
positive results.
Prado Substation, Tolima
20
GX and DX Energy Volumes, Second Quarter.
Power Generated in GWh
1.830
2015
+1
Celsia
-165
Zona Franca Celsia
Energy Sales to End User in GWh
600
500
+ 57
451
+101
-38
EPSA
Centroamérica
1.729
2016
Generation by Technology
508
2%
400
300
44%
53%
200
100
0
2015
21
EPSA
2016
Hydroelectric
Hidroeléctrica
Power
Térmica
Thermal Power
Eólica
Wind Power
Financial Results
Revenue
EBITDA
Billions of COP
Billions of COP
2.500
2.225
EBITDA Margin (%)
600
529
500
2.000
862
1.556
1.500
+13%
765
1.000
2016
413
19,58
400
300
263
201
+31%
26,23
200
1.363
500
30,47
791
+72%
100
213
+25%
267
2015
26,91
0
0
2015
2016
1Q
2Q
2015
2016
1Q
0
10
20
2Q
 Growth of revenue by 13% with the better price and greater revenue from the reliability premium due to the representative market exchange rate.
 Central America and the distribution business with important contributions in revenue and EBITDA.
22
30
Concessions
Business
Relevant Events
Boulevard Turístico del Atlántico
24
Acquisition of an additional
share in the Autopistas del
Nordeste and Boulevard
Turístico del Atlántico
concessions. Collective
authorization to decrease assets
that do not consolidate or that
are not strategic.
Relevant Events
Decision to start
negotiations to increase
ODINSA's share in the
Autopista Conexión Pacífico
2 Concession Project in
Colombia.
Autopista del Café
25
Operating Figures
Average Daily Traffic (Road Concessions)
92.437
+ 849
2T2015
Autopistas del Café
+ 18.538
- 796
+ 1.788
+ 994
- 172
Malla Vial del Meta /
Llanos
Santa Marta
Paraguachón
Hatovial
Auitopistas del
Nordeste (R.D.)
Bulevar Turistico del
Atl. (R.D.)
Airport Traffic
16.853.810
+629.378
-275.172
17.208.016
Road Concessions
Conseciones
Viales
42%
12%
26
1T2016
Revenue
30%
2015
113.638
Opain (Bogotá)
Quiport (Quito)
2016
16%
Construction
Construccion
Airport Concessions
Conseciones
de
Aeropuertos
Energy
Energía
Financial Results
Revenue
EBITDA
Billions of COP
Billions of COP
474
500
254
250
56
400
221
325
300
150
200
150
+47%
100
252
175
123
2016
52
149
200
100
EBITDA Margin (%)
50
+44%
+61%
76
51
131
73
2015
+79%
42
0
0
2015
1Q
2Q
2016
Total
2015
1Q
2016
2Q
Total
0
20
40
 Considerable increase in revenue for good performance of concessions, construction and inclusion of Quiport (MPP) since December 2015.
 EBITDA benefited by the consolidation of Autopistas del Nordeste and Boulevard Turístico del Atlántico (Dominican Republic), due to an increase in
the share in May 2016.
27
* Grupo Argos only consolidated the results of the last quarter of 2015.
60
Real Estate
Business
Urban Development, Barranquilla
Relevant Events
Non-strategic assets in San
Fernando Plaza were
divested, totaling COP 3,600
million, generating a profit of
COP 986.5 million.
San Fernando Plaza
29
Operating Figures
GLA 432,643 m2
Shareholding in Pactia
Commerce
Comercio
4%3%
Industria
Industry
12%
39,8%
Conconcreto
41%
40,0%
Autoalmacenamiento
Personal Storage
Grupo Argos
60,2%
60,0%
1T2016
2T2016
Hotels*
Hoteles*
40%
3T2016
4T2016
Net Operating Revenue**
Commerce
This percentage will reach 50%-50%
once Grupo Argos completes the fund
payments.
6,851
Offices
4,310
Personal Storage
Total
* 697 rooms in operation, not adjusted to shareholding
**In millions of Colombian pesos
20,178
Industry
Hotels
30
Offices
Oficinas
778
1,266
33,382
Financial Results
Revenue
EBITDA
Billions of COP
Billions of COP
50
40
30
20
1
7
-80%
9
30
5
2
27
2016
10
26
10
1
18
38
-3
10
+202%
13
-7
0
2015
Breakdown of
Revenue:
2015
-204% 2016
2015
-9
-75
-11
2016
1Q
31
12
13
45
-59%
EBITDA Margin (%)
1Q
2Q
Urbanism
84%
Pactia
16%
2Q
-100
-50
0
Port
Business
Relevant Events
Compas Terminal, Barranquilla
33
Ongoing expansion in the
Cartagena Port with APM
terminals that will multiply
current capacityby 3.
Progress in the Aguadulce
terminal that will be the most
modern.
Operating Figures
# of Import and Export Containers
# of Mobilized Containers
16.711
13.721
18.000
-13%
5.110
-21%
13.574
-16%
5.562
2.000
0
4.673
400
0
2015
1Q
2015
2016
1Q
2Q
2Q
# of Motor Ships Mobilized
34
+7
2015
Cartagena
1.036
904
938
995
2015
2016
0
2016
118
1.899
800
4.000
17.180
1.973
1.200
6.000
12.000
6.000
1.600
5.841
8.000
-18%
2.000
9.783
10.000
27.295
30.000
24.000
11.403
12.000
33.891
Miles
36.000
Tons of Cargo and General Cargo
+4
-3
+1
127
Buenaventura
Barranquilla
Tolú
2016
1Q
2Q
Financial Results
Revenue
EBITDA
Billions of COP
Billions of COP
80
30
75
28
27
67
70
60
EBITDA margin (%)
25
36
50
-19%
29
40
20
39
2016
13
-16%
41
11
15
30
37
10
20
39
-3%
38
+6%
16
2015
5
10
0
2015
2016
1Q
35
15
2Q
38
0
2015
2016
1Q
2Q
0
20
40
Debt Profile
COP 1.55 Trillion (USD 513 Million)*
Debt/EBITDA
600
400
Crédito
LP
LT Loan
550
200
390
0
Straight
Bond
Bono
Ordinario
254
108
132
115
2016
2017
2019
2020
2024
2029
Cost of the Individual Debt (%)
11,0%
10,43%
10,5%
10,82%
10,07%
10,0%
9,5%
10,58%
9,43%
9,58%
9,0%
Enero
36
Febrero
Marzo
* Figures in millions of Colombian pesos. FX 2,994 COP/USD.
Abril
Mayo
Junio
3.5X
Investment Portfolio
June 2016
June 2015
COP 19
Trillion
Concessions
Concesiones
Concessions
Concesiones
Cement
Cemento
Cement
Cemento
Energy
Energía
Inmobiliario
Real Estate
COP 21.4
Trillion
Real Estate
Inmobiliario
Carbón
Coal
Carbón
Coal
Servicios
Financial Financieros
Services
Servicios
FinancialFinancieros
Services
Alimentos
Food
Alimentos
Food
*The value of each investment is calculated based on the securities exchange price at June 30, 2015 and 2016, respectively, for the companies
listed on the securities exchange, and on the general terms of the demerger. For 2016, the concessions correspond to the sum of the
shareholding in ODINSA and the shareholding in Compas; and real estate corresponds to the sum of the land bank and Pactia.
37
Energy
Energía
Annexes
Grupo Argos – Contribution by
Business
GRUPO
Eliminaciones
Var. SATOR Var.
Var. ODINSA
Eliminations
ARGOS Var.
ARGOS
Var.
Var.
CELSIA
Var.
Var.
Var. COMPAS Var.
Var.
SITUM Var.
Ingresos
actividades
Revenuepor
from
Ordinary
ordinarias
Activities
4.401.815
27%
2.224.930
43%
45.092
50%
70.966 -9%
509.164 -6% 26.081 39%
473.502
-299.777 (1)
7.451.773
Gross Profit
Utilidad
bruta
1.030.467
32%
451.504
28%
42.405
62%
307.697
-259.308 (1)
2.119.800 39%
Gross Margin
Margen
bruto
Profit from
Operationsde
Utilidad
por actividades
Operating margin
operación
23,4%
504.590
Margen operativo
11,5%
EBITDA
EBITDA
Margen Margin
EBITDA
EBITDA
861.413
20,3%
44%
277.468
18%
12,5%
27%
19,6%
479.567
13%
21,6%
27.914 -7%
509.097 1%
10.024 72%
94,0%
39,3%
100,0%
38,4%
11.696 4364%
16.504 -15%
459.775 0%
25,9%
23,3%
11.737 2096%
27.000 -5%
26,0%
38,0%
7.216 666%
7.450
16,0%
10,5%
90,3%
471.480 0%
92,6%
65,0%
4.548 809% 217.378
17,4%
23,4%
36%
28,4%
-246.059 (1)
45,9%
6.104 281% 253.714
Consolidado Var.
1.245.900 37%
16,7%
-256.617 (1)
53,6%
1.854.398
29%
24,9%
Participación
controladora
Controlling
Company
Margin
Margen
231.995
5,3%
39%
-33.306 -71%
-1,5%
1%
374.320 -3%
73,5%
(1) Elimination using the equity method of the Holding Company, intercompany revenue, exclusion of Compas
(2) Elimination using the equity method of the Holding Company, intercompany revenue, exclusion of Compas,
Celsia retailers, recovery of shareholding in EPSA, other retailers.
(3) Includes the equity method generated in the consolidated results and excludes the real estate business
(4) The results of ODINSA only refer to the months October, November and December.
39
766 116%
2,9%
82.807
17,5%
-418.947 (2)
252.302 -14%
3,4%
Grupo Argos – Contribution by
Business
EBITDA
Revenue
1%
1%
7%
Cement
Cemento
6%
Energy
Energía
Concessions
Concesiones
Real Estate
Inmobiliario
29%
57%
Cement
Cemento
22%
Energy
Energía
41%
0%
1%
Concessions
Concesiones
1%
Real Estate
Inmobiliario
12%
Ports
Puertos
Ports
Puertos
Coal
Carbón
Holding Company
Holding
40
23%
Holding
Holding Company
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