Grupo Argos

Holding Company with
SUSTAINABLE
investments in infrastructure
Basic sectors of the economy
STRATEGY
Investment
Principles
With Natural entry barriers
Capital intensive
Our investments in high-quality real assets generate stable,
LONG-TERM CASH FLOWS AND PROVIDE AN INFLATION HEDGE
With long business cycles
2
STAKE
STRATEGIC
In Infrastructure
Our Investments
Cement
55,3%*
Energy
52,5%
Concessions
Roads and airports
54,7%
Ports
50%
STAKE
Listed companies
account for
82%
of our holdings, giving us
greater financial
flexibility and high levels
of transparency and
corporate governance.
* Cementos Argos 55.3% ordinary shares
Grupo Sura 28.74% ordinary shares and 2.09% preferred shares
Bancolombia 1.5% ordinary shares
3
PORTFOLIO
Real Estate
Real Estate Fund
50%
Urban Development
100%
Financial Services
30,8%*
1,5%*
Food
9,8%
History
1934
Founding of
Compañía de
Cementos Argos
(currently Grupo Argos)
Steady organic
growth
complemented by
a track record of
value-creating
acquisitions
2005 2006 2007 2009 2011
Expansion in the United States
through the acquisition of
Lafarge’s assets
2013 2014 2015
Entry into concession business
through the acquisition of a 54.7%
stake in Odinsa
Divestment of coal mines
Acquisition of Holcim’s plants in Panama,
the Dominican Republic, and Haiti
Acquisition of assets in Florida,
Acquisition of EPSA in Colombia
Expansion of Colombia and United States
plants
Acquisition of a 16% stake in Colinversiones
(currently Celsia)
United States; and in French Guiana
Acquisition of energy assets in Panama
and Costa Rica
Strategic alliance with Conconcreto
Acquisition of Termoflores, a thermal plant in
Barranquilla
Acquisition of Lafarge’s assets in Honduras
Cementos Argos expands acquires mixing plants in the United
States and Colombia
Eight cement-producing companies are merged under the name
Cementos Argos
Cementos Argos changes its corporate name to Inversiones Argos
4
2012
Spin-off of Cementos Argos’ non-cement assets and creation of three
new businesses: Ports, urban development and coal
Footprint
17
Countries of the Americas
12.670 Employees
Sectoral and geographical diversification, which reduces the
impact of the different stages of the economic cycle
Cement
Cementos Argos S.A. has a presence in Venezuela through its subsidiary Corporación
de Cemento Andino C.A., which is currently a party to a legal proceeding regarding
the expropriation by the Venezuelan government of its plant located in the state of
Trujillo, Venezuela. Any compensation to which Cementos Argos S.A. or its subsidiary
Compañía de Cemento Andino C.A. may be entitled to is subject to the decisions of
the relevant courts in the Bolivarian Republic of Venezuela. Cementos Argos S.A. has
written-down to zero its investment in the plant.
5
Concessions
Energy
Strengths
SHAREHOLDERS
BOARD OF DIRECTORS
NAME
ROLE
Rosario Córdoba
Independent
Chairman of the Board
35,6%
Mario Scarpetta
GRUPO SURA
Independent
Ana Cristina Arango
Independent
Armando Montenegro
Independent
Jorge Uribe
Independent
David Bojanini
Non – Independent*
Carlos Gallego
Non – Independent*
13,0%
PENSION FUNDS
COMMON
STOCK
12,4%
GRUPO NUTRESA
11,0%
FOREIGN FUNDS
28,0%
CEO
*Major Shareholders
6
PREFFERED
STOCK
5%
FOREIGN FUNDS
28%
OTHERS
OTHERS
Preferred shares do not carry voting rights
Figures as of September 30, 2015
JOSÉ ALBERTO VELÉZ CADAVID
67%
PENSION FUNDS
RECOGNITIONS
AFFILIATIONS
Performance
Grupo Argos’ Advantages
as a Holding Company
190
170
150
Correlation among its
businesses, enabling synergies
130
110
Access to better financing terms
90
70
Strategic alignment among
subsidiaries
50
GRUPO ARGOS
7
CEMARGOS
CELSIA
IGBC
ODINSA
Optimal resource allocation
Portfolio Growth
2015
BY ASSET VALUE*
50%
Cement
2010
2005
24%
Real Estate
76%
COP
4,6
100%
Cement
Cement
COP
10,6
billion
billion
24%
Energy
COP
12,3
billion
12%
Energy
11% **
Concessions
3%
Other
DIVIDEND GROWTH
$234
$250
$267
$279
Cemento
$ 177
Energia
Grupo Sura
Grupo Nutresa
Bancolombia
2011
8
2012
* Doesn´t include stakes in Grupo Sura, Nutresa and Bancolombia
** Includes 54,7% stake in Odinsa and 50% stake in Compas
2013
2014
2015*
Grupo Sura
Preferencial
Debt Profile
COP
COP
COP
1,66
1,65
BILLONES
BILLONES
BILLION
(USD 513 million)*
600
500
400
300
Synthetic
credit
550
200
Long term
credit
390
108
254
100
100
132
115
2016
2017
2019
Ordinary
bond
0
figures in billion pesos
2020
2024
AAA
2029
Cost of Individual Debt
(local rating)
7,44%
7,5%
7,45%
7,3%
by BRC Standard & Poor´s
7,47%
7,37%
7,42%
7,32%
7,18%
7,1%
7,14%
6,99%
6,9%
Enero
Febrero
*FX 3.121 COP/USD
9
Marzo
Abril
Mayo
Junio
Julio
Agosto
Septiembre
Results
REVENUES
USD $ million
4472
4.082
3.717
4.000
2.899
3.000
2.000
1.495
1.837
2.020
25%
19%
12%
18%
876
883
899
2010
2011
2012
23%
1.023
1047
2013
2014
756
400
200
270
340
368
2007
2008
87
2006
2007
2008
2009
2010
2011
2012
2013
DIVIDEND
1,3%
1,9%
1,0%
1,3%
1,0%
1,2%
1,3%
1,1%
250
200
136
2014
COP $
1,9%
300
146
160
173
184
200
212
230
248
1,3%
268
2005
2006
2009
MARKET CAP
USD $ million
10.000
9.302
9.000
8.000
8.088
2013
2014
5.878
5.695
6.000
5.000
4.000
8.350
6.763
7.000
3.340
3.402
2005
2006
3.749
2.969
3.000
100
2.000
50
1.000
-
2005
10
28%
600
730
2005
150
18%
800
2.125
30%
24%
1.200
1.000
3.129
-
350
USD $ million
36%
1.400
5.000
1.000
EBITDA
2006
2007
2008
2009
2010
2011
2012
2013
2014
2007
2008
2009
2010
2011
2012
Cement
BUSINESS
COMMITMENT
Provide our customers the best value proposition
STRATEGIC
FOCUS
LOGISTICS
Continually enhance our distribution channels and logistics network
EFFICIENCY
Improve operating efficiencies and reduce production costs
EXPANSION
Selectively pursue attractive acquisition opportunities
EMPHASIS
Maintain emphasis on innovation, our employees, and sustainable development
12
Footprint
•
•
•
•
Logistical synergies due to our geographical location, port infrastructure, and maritime expertise
Balance between developed and emerging economies
Countries with potential for per-capita consumption growth
Economies with different economic cycles
History of Strategic Acquisitions
2006
Southern Star Concrete, United States (Texas)
Concrete Express, United States (Georgia)
RMCC, United States (North Carolina)
Cemento Andino, Colombia
Concrecem, Colombia
2009
Holcim’s cement plants in Panama, the Dominican Republic, and Haiti
2011
Lafarge’s cement plants in the southeastern United States
(Alabama, South Carolina, Georgia, and Florida)
Cement plants
2013
Lafarge Cementos Honduras, Honduras
Ready-mix concrete plants
2014
Vulcan’s cement and concrete assets, United States (Florida)
Cements Guyanais, French Guiana
Clinker grinding facilities
Ports/Terminals
13
2015
Wetvan Overseas’s cement terminal, Puerto Rico
Competitive Advantages
Well-Established
Distribution Network
2 Competitive Advantages: Strategically located assets and broad distribution and logistics
network enhances flexibility
U.S. plants provide additional flexibility
Low-Cost Cement and
Export Potential
• Efficient cement plants with access to distribution
networks (sea and rail)
• Potential to supply our Caribbean and Central
American markets via exports from the Port of
Mobile (Alabama)
23
Ports/Terminals
390
Concrete Plants
70
State-of-the Art Technology
The Cartagena plant enhances our regional links
• Efficient dry line with cement production capacity of
2.3 MTPA
• Efficient access to low-cost limestone reserves and
direct access to a dedicated port
• Operations in a free zone with stable tax exemptions
through 2028
Dispatch Facilities and
Warehouses
13 Cement Plants
2.800
9
Enhanced flexibility and capacity to cover local and regional markets
14
Mixers
Grinding Plants
Results
REVENUES
USD $ million
EBITDA
USD $ million
19%
3.000
2.437
2.500
2.000
2.656
2.908
1.602
19%
20%
18%
524
534
2013
2014
440
450
369
1.594
303
304
2008
2009
300
1.500
18%
18%
16%
1.983
1.955
600
284
1.000
150
500
2008
2009
2010
2011
2012
2013
DIVIDEND
COP $
1,7%
1,1%
200
1,1%
1,2%
1,5%
154
150
112
2014
121
126
1,7%
166
1,7%
2010
2011
2012
MARKET CAP
USD $ million
8.000
6.913
178
6.772
5.776
6.000
5.886
5.836
5.873
2012
2013
2014
132
4.000
3.923
100
2.000
50
-
2008
15
2009
2010
2011
2012
2013
2014
2008
2009
2010
2011
Energy
Business
REACH
Focus on end customer.
STRATEGIC
FOCUS
INNOVATION
Adoption of state-of-the-art technologies and implementation of new business
models.
NON-CONVENTIONAL RENEWABLE ENERGIES
Become a major player in large-scale, grid-connected non-conventional
renewable energies.
DISTRIBUTED ENERGY
Small-scale, renewable energy generation for on-site use.
REGIONAL EXPANSION
Growth in Colombia and expansion into strategic areas of interest such as
Central America, Chile, and Peru.
17
Presence
Risk Diversification
•
•
Presence in 3 countries: Colombia, Panama, and Costa Rica
Electricity generating technologies: hydropower, thermal, and wind
History of Strategic Acquisitions
2007
Acquisition of Termoflores (now Zona Franca
Celsia), Colombia
2008
Acquisition of Meriléctrica, the Rio Piedras plant,
and the Hidromontañitas Project, Colombia
2009
Acquisition of EPSA, Colombia
2014
Acquisition of GDF Suez’s assets in Panama and
Costa Rica
49%
hydropower
2,332
MW
48%
thermal
2%
wind
18
Results
REVENUES
USD $ million
EBITDA
37%
1.400
1.276
1.200
916
1.000
1.001
1.294
800
100
2008
2009
2010
DIVIDEND
2011
2012
2013
2014
COP $
2,4%
160
69
82
2008
2009
1,4%
1,4%
2,0%
112
82
30
2012
2013
2014
USD $ million
2,0%
90
2.169
120
2.000
100
1.000
41
2.161
2.233
2.234
2012
2013
2014
1.802
1.417
1.500
80
60
2011
MARKET CAP
2.500
0,8%
100
2010
1,9%
120
693
500
20
-
2008
19
386
447
-
-
40
343
463
414
200
265
200
140
11%
35%
300
600
400
36%
26%
400
768
USD $ million
40%
600
500
1.024
39%
2009
2010
2011
2012
2013
2014
2008
2009
2010
2011
Concessions
Roads & airports
STRATEGIC
FOCUS
SUSTAINABLE GROWTH
Selective pursue of projects.
REGIONAL EXPANSION
Expansion into strategic areas of interest as the countries in the Pacific Alliance.
EFFICIENCY
Improve operating efficiency.
21
Footprint
History of successful projects in the region
that provided entry to new markets
History of International Projects
22
2000
Autopistas del Nordeste Project, Dominican Republic
2007
Boulevard Turístico del Atlántico Project, Dominican Republic
2008
Viadom Project, Dominican Republic
Energy Sector: Generadora del Atlántico, Panama
Energy Sector: Generadora del Pacífico, Chile
2013
Green Corridor Project, Aruba
2015
Mariscal Sucre Airport Concession, Ecuador (Quito)
Operations
Diverse business
lines that guarantee
stable revenue
generation in the
different stages of
the economic cycle
ROAD CONCESSIONS
4 existing road concessions in Colombia, 2 in the Dominican Republic, and 1 in Aruba
1 4G project awarded (Pacifico 2) - 98 Km
2 private initiative PPP awarded: Malla Vial del Meta (354 Km) and Vias del Nus (157 Km)
1 private initiative PPPs pending (Privilegio)
AIRPORTS /PORTS
35% stake (Bogota’s El Dorado: South America’s busiest airport in terms of cargo traffic and second-busiest in terms of
passenger traffic; 27.5 million passengers transported in 2014)
Quito’s Mariscal Sucre: 50% stake; 5.6 million passengers transported in 2014.
Sociedad Portuaria de Santa Marta: solid bulk, coal, general cargo, and cruise operations.
TOLL COLLECTION
Only national operator with toll-collection experience
44 toll stations - with 108 associated toll booths - in operation
Odinsa will be a
regional platform to
expand our
investments in roads
and airports
23
ENERGY (THERMAL)
51% stake in GENPAC (Chile). 96 MW, 1.0% of system’s capacity
60% stake in GENA (Panama). 150 MW, 5.4% of system’s capacity
O&M
Operation and maintenance of infrastructure assets, including road projects
Projects managed in nearly all infrastructure areas
Results
REVENUES
USD $ million
468
500
372
400
460
EBITDA
USD $ million
42%
41%
200
29%
392
166
27%
29%
300
162
148
150
109
217
200
121
100
148
50
100
0
2008
2009
2010
2011
DIVIDEND
5,9%
5,0%
600
6.1%
2012
2013
2014
COP $
6.4%
500
525
302
59
42
0
2008
2009
2010
2011
2012
2013
MARKET CAP
816
752
550
2014
USD $ million
800
778
723
657
500
600
405
400
50
6.3%
5,0%
4,3%
500
300
35%
32%
483
320
400
200
402
200
100
0
0
2008
24
2009
2010
2011
2012
2013
2014
2008
2009
2010
2011
2012
2013
2014
Potential in Colombia
Infrastructure improvement is one of the government’s main objectives
More than COP$ 45 trillion pesos* are being invested for that purpose
Quality of roads rankings
4G Projects (public initiative)
0
20
31
40
52
•
30 new concessions
•
Investments totaling more than COP$ 30 trillion
•
7,000 km of roads intervened
60
Private Initiatives
80
95
100
102
•
110
122
120
feasibility stage
126
127
Colombia
Venezuela
140
Chile
México
*World Economic Forum and ANI
25
Bolivia
Perú
Argentina
Brasil
3 projects awarded, 5 approved, and 16 in the
•
Investments totaling nearly COP$ 15 trillion
Concessions
Ports
Ports
26
STRATEGIC
FOCUS
COMMITMENT
Provide our clients with the best value proposal
EMPHASIS
Maintain emphasis in security, our employees and sustainable development.
LOGISTICS
Continually enhance our facilities.
27
Footprint
Multi-purpose terminals in the Atlantic and the Pacific oceans allow
Compas to serve different multi-purpose industries and markets
50
9
USD
Terminals with Operating
Agreements
Terminals under Development
Terminals in Operation
28
300
20%
Accessible Countries
Port Terminals
US$ Million Invested
Colombia’s Grain
Import/Export Volume
Portfolio
Investment
29
REAL ESTATE
Real Estate Fund
Current
GLA
440.000 mts2
4-year target
GLA
700,000 mts2
Land Bank
Barranquilla 1,200 ha
Baru 1,300 ha
Other 2,600 ha
Portfolio Investments
PORTFOLIO
* 37% of the ordinary shares. Includes Cementos Argos and Celsia’s participation in Grupo Sura
** 1.5% stake of the ordinary shares
30
Financial Services
37% stake*
US$ 2.7 billion
Bancolombia
1,5% stake**
US$ 59 million
FOOD
9.8% stake
US$ 450 million
Real-Estate
Fund
Benefits of the Alliance
FINANCIAL STRENGTH
AND CAPACITY
Investment portfolio valued
at US$6.3 billion
VERTICAL INTEGRATION
Presence in construction-related
activities
32
INTERNATIONAL
PLATFORM
Presence in more than
17 countries via its subsidiaries
OPERATING EXPERIENCE
55 years in the market
RECOGNITION
80 years in the market
PROJECT DEVELOPMENT
CAPABILITY
Experience with different
types of projects
Footprint
16 Shopping Malls
8 Commercial Establishments
14 Industrial Complexes
5 Hotels
257,000 m2 of leasable space
263.300m2 of leasable space
9 Office Buildings
115.500m2 of leasable space
33
11,000 m2 of leasable space
697 guestrooms
8 Self-Storage Complexes
20,500 m2 of leasable space
34
ALEJANDRO PIEDRAHÍTA
SEBASTIÁN VELÁSQUEZ
CFO
Grupo Argos
Phone: (57) 4 3198450
[email protected]
Investors Relations
Grupo Argos
Phone: (57) 4 319 87 12
[email protected]