Grupo Argos (GRUPOARGOS) Corporate presentation summary

Portfolio and scale

• Cement platform: 7 integrated plants, 14.4 MTPA cement grinding capacity, 11 ports and terminals, and 31% ownership of Summit Materials.

• Summit Materials is the fourth-largest U.S. cement producer and sixth-largest aggregates producer; the LatAm cement business operates in 16 countries and is Colombia’s leading cement and ready-mix producer.

• Infrastructure portfolio includes 1,959 MW of installed generation capacity, over 70% renewable, 47,000 km of distribution networks, 1.3 million energy customers, 110,000 average daily road users, and 46 million airport passengers LTM.

• Real estate platform Pactia has 812,000 m² of GLA; the land portfolio spans 4,109 hectares in Colombia and is valued at US$600 million.

Strategy and portfolio changes

• Portfolio strategy has included asset acquisitions, divestments, partnerships and platform creation across cement, energy, transport and real estate; 30+ cement, 10+ energy and 15+ transport deals executed since 2006.

• The U.S. cement operation was combined with Summit Materials; the presentation cited a COP 5.3 tn transaction profit and a 31% stake in Summit Materials.

• Plans call for consolidating infrastructure activities into a regional asset manager and listing it in the U.S.; the resulting structure is intended to attract global capital for Latin American projects.

• 2024 financial-statement changes reflect deconsolidation of several business verticals as the portfolio shifts toward asset management; some investments move to the equity method.

Operating performance

• Cement Q1 2024 EBITDA grew 24% YoY in USD terms; cement and ready-mix volumes declined 13% and 6% YoY, respectively, and the EBITDA margin reached 22%.

• Celsia’s Q1 2024 platform EBITDA declined 20% YoY on a pro forma basis adjusted for Central American divestments; EBITDA from non-consolidated platforms rose from COP 91 bn to COP 111 bn.

• Odinsa Q1 2024 road traffic was stable YoY at 107,000 daily users; roadway revenue increased 23% and EBITDA 3%. Airport passenger traffic rose 20%, revenue 22% and EBITDA 11%.

• Pactia’s Q1 2024 GLA was stable at 812,000 m²; revenue and EBITDA each grew 10% YoY.