Informe 4T2104 v0 ingles

FINANCIAL
S TAT E M E N T S
2014
2014
Executive Summary
A volume of work amounting COP $936,5 billion was
achieved - including Conconcreto Internacional –
presenting a 20.4% growth over the last year. This
increase is mainly justified by the increased execution of
works in the domestic market, especially the 46.3%
variation in the infrastructure unit and 24.7% in the
building unit.
A 27.4% growth of the operating income, result of a
higher volume of work, higher income in the investment
portfolio and better performance of branches.
Without considering the extraordinary income received
during 2013 which totaled COP $11.106 million, related
to lower income from sale of shares in Odinsa by COP
$2.495 million, lower income of Devimed from traffic
guarantees by COP $4.544 million and the registry of
earnings for lots sale by COP $4.067 million, net earnings
showed an increase of 4.7% in 2014.
2013
EBITDAR margin of 18.3% representing COP $143.803
million, COP $5.885 million more than in year 2013, due
to the income of new real estate assets under the
operating lease structure.
At the end of the fiscal year, the backlog was closed at
COP $1.87 billion, which ensures the business operation
for the next 2 years.
The partnership with Argos Group is achieved; this will
allow the organization to consolidate the strategy and
growth of the Real Estate Portfolio.
APP Buga-Buenaventura and APP Regiotram are under
a feasibility study with an investment of COP $1.7 billion
and COP $3 billion, respectively.
2014
Equipment
and Shares
Equipment
and Shares
4,3%
Operating Income
Line
4,0%
Invesments
17,0%
Invesments
18,6%
Constrution
Services
Constrution
Services
79,0%
77,1%
COP $616.595
COP $785.739
Equipment
and Shares
Equipment
and Shares
Constrution
Services
18,2%
19,1%
32,7%
EBITDAR
Constrution
Services
28,4%
Line
Invesments
49,1%
COP $137.917
Equipment
and Shares
Constrution
Services
29,3%
32,9%
Invesments
52,5%
Equipment
and Shares
38,6%
COP $143.803
Constrution
Services
45,5%
Net Profits
Line
COP $60.610
Invesments
37,8%
Invesments
COP $51.809
15,9%
Notes:
- Construction Services: Infrastructure Services and Buildings from Conconcreto Colombia.
- Investments: Real Estate Portfolio and Concessions.
- Equipment and Shares: Conconcreto Equipment Business and shares in Conconcreto Internacional, Industrial Conconcreto, Inmobiliaria Conconcreto, and Consalfa.
2
Conconcreto / Construction Services / Investments / Equipment and Shares
2014
Constructora Conconcreto S.A. – Financial Statements
Income:
Conconcreto’s income totaled COP $785.739 million
during 2014, an increase of 27.4% over year 2013. This
result is obtained due to a higher volume of work, which
grew 20.4%, more income of the investment portfolio
growing in 16.3% and a better performance of branches
which are reflected as share method in income presenting
a 59.0% growth.
Gross Earnings:
During year 2014, the gross earnings came to COP
$156.351 million, a variation of -1% over last year. It grows
at a lower percentage than income due to the revenues
transfer and margin adjustments of some infrastructure
projects, lower surpluses of the housing unit and lower
income in concessions.
Operating Expenditures:
Increased operating expenditures by 11.1%, mainly explained by a higher payroll expenditure of COP $4.479 million
in: (i) new Design Unit, (ii) equipment business, and (iii) by
employer substitution of Inmobiliaria Conconcreto to
Conconcreto. In addition, a provision of debtors amounting
COP $1.727 million that did not exist in 2013 was registered in 2014.
Non-Operating Income and Expenditures:
Non-operating income showed an increase of 11.6%,
mainly due to higher financing interests to clients and
income for recoveries in the sale of equipment in consortiums. The growth of non-operating expenditures is the
result of the 2014 investment plan leverage.
EBITDA:
In 2014, the EBITDA came to COP $117.921 million, with a
margin of 15%. The deduction of 5% over last year is
explained for reasons mentioned above, as well as a closer
relation between the costs of depreciations and amortizations in consortiums in 2013.
Balance Sheet:
The 23.5% growth of assets resulting from the account of
debtors and account of intangibles are emphasized; this
last mentioned is represented in increased fiduciary duties
in real estate assets. Meanwhile, the variation of liabilities is
mainly explained in the increase of the financial debt,
resources used to buy lots and perform projects included in
the investment plan.
Statement of Profits and
Losses (COP $Millions)
2013
Income
Costs
Gross Profits
Expenses
Operating Profits
Non-operating Income
Non-operating Expenses
Profits before Taxes
616.595
(458.612)
157.983
(74.396)
83.587
18.883
(21.725)
80.744
Taxes
NET PROFITS
EBITDA
EBITDAR
Financial Indicators
(20.134)
60.610
124.139
137.917
2013
Gross Margin
Operating Margin
Net Margin
EBITDA Margin
Financial Debt / EBITDA
General Balance Sheet
(COP $Millions)
Current Assets
Long-Term Assets
Total Assets
Current Liabilities
Long-Term Liabilities
Total Liabilities
Equity
Total Equity
Debt
(COP $Millions)
Loans
Leasing
Total Debt
Short Term
Long Term
25,6%
13,6%
9,8%
20,1%
1,7
2014
785.739
27,4%
(629.388) 37,2%
156.351
-1,0%
(82.685) 11,1%
73.668 -11,9%
21.075
11,6%
(31.161) 43,4%
63.582 -21,3%
(11.773)
51.809
117.921
143.803
19,9%
9,4%
6,6%
15,0%
4,3
2014
388.737
1.157.371
1.546.108
174.533
365.588
540.121
1.005.987
1.546.108
486.667
1.422.298
1.908.965
350.752
494.340
845.091
1.063.874
1.908.965
2013
2014
Conconcreto / Construction Services / Investments / Equipment and Shares
-41,5%
-14,5%
-5,0%
4,3%
2014
2013
168.220
37.984
206.204
12,4%
87,6%
% Var.
454.391
54.467
508.858
21,8%
78,2%
% Var.
23,5%
56,5%
5,8%
23,5%
% Var.
146,8%
3
2014
Construction Services
Income:
The income of the Construction Services unit totaled COP
$620.592 million, with a growth of 30.6% over year 2013, mainly
due to a construction volume in infrastructure projects, included
maritime works and land movements in the Aguadulce Port
(Buenaventura/Valle Del Cauca), and an increased execution of
own projects in the building unit, reflecting the strategy of investing in real estate assets to generate long-term income.
Gross Earnings:
The gross earnings rose from COP $61.591 million to COP
$60.773 million, with a variation of -1.3%, mainly due to lower
earnings obtained in the housing unit for year 2014. It should be
noted that for the closing of the fiscal year a positive adjustment
was done in the margin of the Hidroituango Project (Ituango/Antioquia), which has been showing a better performance than
expected.
Expenditures:
The increase of 16.4% of operating expenditures in 2014 is mainly
related to the personnel expenditures, fees and leases of design
services unit, which were inoperative in 2013. It was also incurred
higher expenditures related to the preparation of tender and offers
for 4G projects, as well as leases and portfolio provisions.
Income
(COP $ Millions)
49%
51%
2013
2014
620.592 30,6%
(559.819) 35,3%
60.773 -1,3%
Expenses
Operating Profits
EBITDA
EBITDAR
(34.923)
26.668
45.118
45.118
(40.655) 16,4%
20.118 -24,6%
40.824 -9,5%
40.824 -9,5%
Financial Indicators
2013
2014
13,0%
5,6%
9,5%
Gross Margin
Operating Margin
EBITDA Margin
EBITDA
57%
45%
43%
55%
$45.118
9,8%
3,2%
6,6%
$40.824
61%
39%
2013
Infrastructure
2014
Building
Infrastructure
Backlog: COP $1.87 billion (backlog/income for the last 12 months: 2.38 times)
$884
Backlog Execution
53%
COP $ Thousand Million
$545
51%
47%
$308
66%
49%
2015
34%
2017
2016
Building
4
% Var.
475.212
(413.622)
61.591
2014
Building
2013
Income
Costs
Gross Profits
(COP $ Millions)
$620.592
$475.212
Statement of Profits and
Losses (COP $Millions)
99%
1%
$115
2018
Infrastructure
Conconcreto / Construction Services / Investments / Equipment and Shares
$19
100%
2019
2014
Construction Services (cut-off December 31, 2014)
Composition - Backlog:
In regard to the backlog, 58% corresponds to infrastructure projects, while the remaining 42% is accounted for by building
projects. By sector, note should be made of the share of public procurement in Infrastructure, equivalent to 71%; while the share
of the company’s Own Projects now accounts for 63% of Buildings, reflecting the strategy of investing in real estate assets to
generate long-term income in an attempt to counteract construction cycles.
Infrastructure Backlog
Building Backlog
per Sector
per Type
Own
Projects
Private
29%
1%
Third Parties
Design Unit
1%
Design Unit
37%
27%
Own
Projects
Corpotate
Solutions
63%
Public
Commerce
71%
Backlog Execution – Infrastructure:
In Infrastructure, performance was focused on
the hydroelectric power plants projects: Hidroituango (Ituango/Antioquia) and Hidrocucuana
(Roncesvalles/Tolima), maritime works and land
movements in the Aguadulce Port (Buenaventura/Valle Del Cauca) and road works as the Calle
77 Sur Bridge (Envigado/Antioquia) and Binacional Bridge (Colombia/Venezuela). New projects
were awarded, such as the works for finishing La
Línea pilot Tunnel (Calarcá - Puerto Quindío Road)
for COP $105.000 millions.
Backlog Excecution – Building:
In Building, progress was made in the construction of projects such as the Hotel Estelar (Cartagena/Bolívar), increase in the contract of Codepaz Gyms (by Conconcreto Internacional) for
COP $3.701 million and Blu Logistics (Tenjo/Cundinamarca) for COP $10.480 million. In addition,
since 2015 projects for malls will be executed,
such as Guatapurí III (Valledupar/Cesar), San
Mateo (Soacha/Cundinamarca) and Hilanderías
(Bogotá/Cundinamarca)
5%
66%
Infrastructure
COP $ Millions
$1.152.401
$441.368
$376.717 $1.087.750
2013
2014
Building
COP $ Millions
$882.475
2013
$511.238
Executed
$412.437
New
Conconcreto / Construction Services / Investments / Equipment and Shares
$783.674
2014
5
2014
Real Estate Portfolio – Investment
Income:
The income of the Real Estate Portfolio grew by 32.3% over
2013. The growth was due to a 41.2% higher GLA for 2013
and increased asset revenues from Buró 24 (Bogotá D.C.),
Hotel GHL Style (Neiva/Huila), and Hotel Movich De La 26
(Bogotá D.C.). The change in the business Self-Storage
model had a positive impact on the results (see note).
Gross Earnings:
Compared to 2013, gross earnings fell by COP $1.050
million, mainly due to costs incurred in assets which entered
into operation during 2014, such as Buró 26 (Bogotá D.C.),
U-Storage Granadillo (Barranquilla/Atlántico), and Hotel
GHL Style Yopal (Yopal/Casanare), which are in stabilization
process and under operating leases structure.
Operating Expenditure:
For 2014, the Self-Storage business shows better performances, resulting in lower expenditure since in 2013 a loss
was registered as expenditure for share method.
Income
3%
8%
2013
2014
% Var.
Income
Costs
Gross Profits
Expenses
Operating Profits
EBITDA
EBITDAR
76.141
(49.479)
26.662
(21.227)
5.435
20.989
34.768
100.743
(75.132)
25.612
(19.360)
6.252
22.815
48.697
32,3%
51,8%
-3,9%
-8,8%
15,0%
8,7%
40,1%
Financial Indicators
2013
2014
35,0%
7,1%
27,6%
25,4%
6,2%
22,6%
Gross Margin
Operating Margin
EBITDA Margin
EBITDAR
$100.743
(COP $Millions)
Self-Storage
Statement of Profits and
Losses (COP $Millions)
-1%
5%
$76.141
Self-Storage
Self-Storage
3%
12%
Hotels
Hotels
0%
3%
29%
22%
Offices
Offices
Industry
Commerce
2013
Hotels
4%
0%
5%
30%
24%
68%
66%
Hotels
Offices
Industry
Commerce
2014
GLA:
Self-Storage
Industry
58%
Commerce
1%
$34.768
Offices
Industry
60%
$48.697
(COP $Millions)
Commerce
2013
2014
The EBITDAR is presented for operating figures before operating leasing.
GLA Portfolio Composition (m2)
Offices
4%
Hotels
3%
368.440
GLA Evolution (m2)
Self-Storage
6%
CAGR: 42,3%
150.099
Commerce
Industry
50%
37%
260.924
163.383
89.743
2010
2011
2012
2013
Notes:
- The Self-Storage properties changed from being leased to an operator who subleased the mini-storage deposits, to being leased directly by Conconcreto
- GLA adjusted to share
6
Conconcreto / Construction Services / Investments / Equipment and Shares
2014
2014
Concesiones - Inversión
Income:
The income in concessions came to COP $33.014 million,
reflecting a fall of COP $5.829 million over 2013. This
income loss is especially explained because in 2013 income
from traffic guarantees of 2 years (2011 and 2012) were
received, meanwhile in 2014 only guarantees for period
immediately prior were received.
It should be noted that at the end of 2014, 60 km of dual
carriageway (Sections II and III) of Ruta Del Sol Sector I was
delivered, in which Conconcreto has a 25% share in the Vial
Helios Consortium. The National Infrastructure Agency
(Agencia Nacional De Infraestructura, ANI) defined the
section I layout which comprises 16 km of road.
Statement of Profits and
Losses (COP $Millions)
2013
2014 % Var.
Income
38.843
33.014 -15,0%
Costs
Gross Profits
(4.771)
34.072
(6.078) 27,4%
26.936 -20,9%
Expenses
Operating Profits
EBITDA
EBITDAR
(1.455)
32.617
33.008
33.008
(1.037)
25.899
26.753
26.752
2013
2014
87,7%
84,0%
85,0%
81,6%
78,4%
81,0%
Financial Indicators
Gross Margin
Operating Margin
EBITDA Margin
Income
EBITDA
(COP $Millions)
$38.843
5%
$33.014
(COP $Millions)
$33.008
8%
Others
Others
9%
9%
15%
18%
71%
65%
Autopistas
del Llano
Autopistas
del Llano
CCFC
CCFC
Devimed
Devimed
2013
-28,7%
-20,6%
-19,0%
-19,0%
2014
$26.753
6%
Otros
10%
Otros
10%
11%
17%
22%
67%
57%
Autopistas
del Llano
Autopistas
del Llano
CCFC
CCFC
Devimed
Devimed
2013
2014
Notes:
- Others: Sale of shares in ODINSA, Grupo Heroica, and CAS Mobiliario
Conconcreto / Construction Services / Investments / Equipment and Shares
7
2014
Equipment and Shares
Income:
The income from Equipment and Shares come from the
internal revenues of the Equipment unit, destined for the
construction services unit, as well as the booking of the
share methods of branches. The income increase, from
COP $26.399 million to COP $31.391 million, due to a
higher performance of share methods in Inmobiliaria
Conconcreto and Conconcreto Internacional.
Gross Profit:
A profit increase of COP $7.372 million over year 2013 is
obtained by having higher revenues in Conconcreto Internacional and the increase of profitability margins in building
projects in this same branch. In addition, there were surplus
of earning in some projects in Inmobiliaria Conconcreto;
therefore, the result obtained was better compared to last
year.
Expenditures:
Increased operating expenditure by 28.8% was mainly due
to higher payroll expenditure by employer substitution of
Inmobiliaria Conconcreto to Conconcreto, and a higher
investment in equipment which increases the depreciation
account.
Statement of Profits and
Losses (COP $Millions)
Income
29%
CC Internacional
2%
Others
CC Internacional
1%
9%
Inmobiliaria CC
Inmobiliaria CC
16%
13%
Industrial CC
Industrial CC
52%
36%
Equipment
18,9%
9.260
11.640
25,7%
43.031
20,7%
(16.791)
(21.632)
28,8%
Operating Profits
EBITDA
18.867
25.023
21.399
27.529
13,4%
10,0%
EBITDAR
25.023
27.529
10,0%
2013
2014
135,1%
137,1%
71,5%
94,8%
68,2%
87,7%
Expenses
Financial Indicators
Gross Margin
Operating Margin
EBITDA Margin
Equipment
2014
0%
Others
30%
$25.023
$27.529
0%
Others
45%
CC Internacional
CC Internacional
0%
-5%
Inmobiliaria CC
Inmobiliaria CC
11%
17%
Industrial CC
Industrial CC
44%
59%
Equipment
Equipment
2013
Notes:
- Others: Share in Consalfa and Geofundaciones.
8
31.391
EBITDA
40%
2013
26.399
(COP $Millions)
$31.391
$26.399
% Var.
35.659
Gross Profits
Income
3%
2014
Costs
(COP $Millions)
Others
2013
Conconcreto / Construction Services / Investments / Equipment and Shares
2014
2014
Joint venture with Grupo Argos:
Grupo Argos and Conconcreto have reached an agreement
for developing together their real estate income strategy, by
a contribution of assets which may allow the creation of a
portfolio focused on development and operation, with a
proper diversification depending on uses and geographies.
The equity of each company in this portfolio shall be 50%.
The combination of assets contributed may allow the creation of a portfolio which in its first stage will manage more
than 430 thousand m² equivalent to COP $1.3 billion. In the
next 4 years the value of assets managed will be duplicated
totaling an amount of COP $2.6 billion, becoming one of the
most important real estate portfolios in the country.
Equity
COP
Thousands
of Millions
Assets
818
280
Land
0
112
Cash
0
365
Others
19*
80**
Total
837
837
*Conconcreto: fee of the project pipeline
** Grupo Argos: profit debt
Highlights
Initial Stage
Future Stage
Commercial Value COP
Total GLA
$1.3 Billions
437.862 m2
Commercial Value COP
Total GLA
$2.6 Billions
668.471 m2
GLA Distribution
GLA Distribution
Hotels
3%
Offices
5%
Backlog
24,5%
Commerce
28,3%
Self-Storage
2,8%
Industry
55%
Commerce
37%
Hotels
2,1%
Offices
7,5%
34,9%
Industry
Conconcreto / Construction Services / Investments / Equipment and Shares
9