2016 DI DISCLAI CLAIMER This document contains forward-looking - - PowerPoint PPT Presentation

Cementos Argos S.A

Corporate presentation

2016

DI DISCLAI CLAIMER

This document contains forward-looking statements and information related to Cementos Argos S.A. and its subsidiaries (together referred to as “Argos”) that are based on the knowledge of current facts, expectations and projections, circumstances and assumptions of future events. Various factors may cause Argos’ actual future results, performance or accomplishments to differ from those expressed or assumed herein. If an unexpected situation presents itself or if any of the premises or of the company’s estimations turn out to be incorrect, future results may differ significantly from the

• nes that are mentioned herein.

The forward-looking statements are made to date and Argos does not assume any obligation to update said statements in the future as a result of new information, future events or any other factors.

Argos’ Innovation Center

3

Cementos Argos at A Glance

Revenues by Geography Revenues by Product

• Installed capacity:
• Cement 24 M tons*
• RMC 18 M m3
• 5-year CAGR (2010-2015) of 21% in revenues and 23% in EBITDA
• Included in the Dow Jones Global and Emerging Markets

Sustainability Index, for 3 consecutive years COP4,402 M (USD1,409 M)

Cement 52% RMC 48%

EBITDA by Geography

Colombia 39% CCA 32% USA 29%

COP861 M (USD276 M)

Leading pure cement player in the United States, Colombia, Caribbean and Central America

Colombia 30% CCA 20% USA 50% Others 0%

Key Figures (6M16 )

*Includes 2.2 M Tons of Martinsburg. Transaction subject to the approval of the FTC

4

Argos: Leading Growing Multinational Cement Company Focused on Value Creation

1

#1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas

2

Track Record of Successfully Implementing Disciplined Growth Strategy

3

Flexible Operations with Vertical Integration and Extensive Logistics Network

4

Operating in Countries with Significant Growth Potential

5

Strategic Investments Further Enhance Efficiency and Competitiveness

6

Healthy Financial Position and Flexibility to Pursue Growth

7

Focus on Innovation and Sustainability

Cartagena Plant, Colombia

1

#1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas

Mixer trucks in the US

6

#1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas USA 50% of 6M16 revenues

• #2 RMC producer in the US
• #4 cement producer in the US*
• Capacity: 9.9 M tons cement and

13 M m3 RMC

• ~42% of Argos’ cement capacity
• ~74% of Argos’ RMC capacity

CCA

20% of 6M16 revenues

• 1 out of 2 producers
• 47% of seaborne trade
• Capacity: 4.1 M tons cement

and 0.9 M m3 RMC

• ~18% of Argos’ cement capacity
• ~5% of Argos’ RMC capacity

Colombia

30% of 6M16 revenues

• #1 player
• Capacity: 9.5 M tons cement and

3.8 M m3 RMC

• ~40% of Argos’ cement capacity
• ~22% of Argos’ RMC capacity

Cement plants RMC areas Grinding facilities Port/Terminals

1

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. Argos has filed a claim for its investment in that country. Argos maintains the claim for its investment in that country. *Includes2.2 M Tonsof Martinsburg. Transaction subjectto the approval of the FTC

7

Demand recovery driving operating leverage and EBITDA margin normalization

Installed capacity EBITDA Revenues

50%

Of 6M16

29% 13.0M m

3

• Strategically located plants close to high

growth and demand centers

• Cement shipments up 9.4% nationwide in

as of May 2016; Argos’ states presented an increase of 13.5% YTD

• Vertically integrated operations
• Comprehensive logistics network (sea, land

and railway) enhance vertical integration

• Focus on innovation: sales of VASP +16% in

‘15 Operating Leverage Amid Improving Environment

• #2 RMC player country-wide (#1 or 2 in

most areas served)

• #4 cement producer in the US*

Cement Plants RMC Areas Grinding Facilities Ports/Terminals

9.9M tons*

Newberry Plant, Florida

Of 6M16

USA Regional Division

*Includes2.2 M Tonsof Martinsburg. Transaction subjectto the approval of the FTC

8

Strategically located plants with nationwide coverage offer a strong competitive advantage

Installed capacity EBITDA Revenues

30%

Of 6M16

39% 3.8M m3

Best Positioned to Capture the Infrastructure and Housing Growth

• #1 cement and RMC player with

market shares of 46% and 44%, respectively (as of ‘15)

Cement Plants RMC Areas Grinding Facilities Ports/Terminals

9.5M tons

Sogamoso Plant, Colombia

Of 6M16

• Sole producer with nationwide network serving

all high-growth demand centers

• Vertically integrated operations, with ~80%

energy requirements generated in-house

• Tailor-made model for each customer segment:
• Retail: Brand recognition, differentiated service

and extensive distribution network

• Infrastructure and Industrial: Customized solutions,

specialized technical assistance, lead time

• ptimization, on-site labs and RMC mobile plants

to serve remote areas

• Ability to use low cost production and

dedicated port facilities for exports

• Improved competitive dynamics driven by FX

depreciation

• Focus on innovation: sales of VASP +14% in

‘15

Colombia Regional Division

9

High long term growth prospects and strategic interconnection of all regions

Installed capacity EBITDA Revenues

20%

Of 6M16

32% 0.9M m3

Profitable and Growing Interconnectivity

• 1 of 2 leading cement producers

Cement Plants RMC Areas Grinding Facilities Ports/Terminals

• Operations concentrated in Honduras

and Panama, with 45% and 52% market share (YE15)

• Only cement producer in Haiti, Suriname

and French Guiana; presence in Dominican Republic

• Highly efficient capital allocation through

scalable network

• Controls 47% of the cement and clinker

seaborne trade market

• Logistics platform, ports and fleet of

vessels provides unparalleled access to mainland and island markets

• High levels of cement integration through
• wn plants and logistic interconnectivity

4.1M tons

RMC plant in Panama

Of 6M16

Caribbean and Central America Regional Division

2

Flexible Operations with Vertical Integration and Extensive Logistics Network

Newberry Plant, Florida, USA

11

Roberta Newberry Harleyville Cartagena

Broad logistics and distribution network provides flexibility from strategically located assets…

One Interconnected Region

Currently supplied from Cartagena Potential supply

USA plants and logistics network provide additional flexibility

• Efficient cement plants with access to rail and

sea

• Potential to supply Caribbean and Central

America via ports State of the art Cartagena plant, well- positioned and flexible to serve domestic and export markets

• Efficient dry line, with cement capacity of 2.3

M MTPA

• Low cost limestone reserves and dedicated

port

• Fully automated dispatch facility
• Favorable tax rates and tariff exemptions until

2028

32 69 ~2,600

Dispatch facilities and warehouses Ports / Terminals Mixers

14

Cement Plants*

376 9

RMX Plants Grinding Stations

Well established distribution network

Cement Plants Ports/Terminals Martinsburg

*Includes 2.2 M Tons of Martinsburg. Transaction subject to the approval of the FTC

12

.. leveraging vertically integrated operations

Limestone Clinker Aggregates Cement RMC Transport and logistics Energy

Strategic resource

• ~25%
• f the production cost
• ~80%
• f the energy in Colombia

is self generated

• USA and Honduras ~20%
• f

alternative fuels Geographical integration to supply

• ur needs according

to our market size

• 4th in installed capacity in the

US*

• Privileged location, distributed

throughout Colombia

• Access to the largest market in

Honduras Geographical integration that guarantees market coverage

• 376 plants, 2,586 mixers,

18M m3 of installed capacity

• Access to infrastructure

projects in the region Competitive advantage in markets with high self-construction

*Includes2.2 M Tonsof Martinsburg. Transaction subjectto the approval of the FTC

3

Operating in Countries with Significant Growth Potential

Mixer trucks in USA

14

USA: Rapidly recovering cement market

• USA demand per capita of 278 tons still

below pre-bubble levels of 433 tons

• Argos is well-positioned to satisfy

import requirements as demand normalizes Residential sector maintains positive performance USA cement market is poised for rapid recovery

Existing home sales of June 2016, Totaling 5.6 million units Housing starts are back to 2007 levels with an upward trend in the midterm Cement Plants Grinding Facilities Ports/Terminals

3,00 4,00 5,00 6,00 7,00 8,00

2003 2003 2004 2005 2006 2006 2007 2008 2009 2009 2010 2011 2012 2012 2013 2014 2015 2015

128 128 117 97 71 68 70 77 80 87 90 93 97 102 108 115 56 57 51 44 31 31 32 36 38 42 43 44 47 49 52 55

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E2017E2018E2019E2020E

USA Argos States

USA installed capacity ~ 110 M MTPA

Argos States: TX, AR, AL, NC, SC, VA, FL, GA, MS, WV, PA, MD, DC, NY, NJ, OH

Mobile Tampa Port Manatee Savannah Wilmington Newberry Harleyville Roberta

Imports Exports to the Caribbean Atlanta

Martinsburg Houston

15

Colombia: Strong infrastructure and housing deficits…

Residential and commercial construction deficit

• Quantitative deficit: 0.6 M
• Qualitative deficit: 1.1 M

0,0 2,0 4,0 6,0 0,0 2,0 4,0 6,0

0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80 +

M inhabitants

2020E 2012

Housing deficit (units)

Infrastructure deficit

Latin America cement consumption per capita - 2015 (Kg / capita)

Low cement consumption per capita

Growing and young population Commercial need

• Emerging middle class
• Emerging cities
• Offices deficit

+60%

below 35 years old Ranking 2014/15 2012 estimated

Source: Global Competitiveness Report 2014-2015 (analysis of 144 countries) / ANIF, Infrastructure Commission, DNP, Ministry of Transportation, DANE, Argos calculations, The Global Cement Report

505 444 403 372 356 354 319 319 310 297 296 285 285 270 269 265 238 220 208 194 154 134 95 87 Panama Suriname Dom. Rep Bolivia Ecuador Brazil

• Fr. Guiana

Peru Mexico Florida Costa Rica Uruguay Argentina Chile Venezuela Colombia España Paraguay Guatemala Honduras Puerto Rico Haiti El Salvador Nicaragua

Countries where Argos has operations

135 123 120 114 108 106 105 103 80 75 69 50 40 13 Venezuela Argentina Brazil Nicaragua Colombia Honduras Peru Costa Rica Uruguay Suriname Mexico Chile Panama Spain Latam average: 278 kg/capita

16

… addressed by government and private investments are expected to drive strong growth through 2024

• 400,000 houses to be built in ‘14-18
• 100,000 free houses
• Remainder will be subsidized
• Argos: best positioned to capture the opportunity
• 65% share of free houses program in ’15
• Strong presence in emerging cities
• Full coverage of the country

Construction

Cement dispatches expected to begin 4Q16 with demand peaking 2017-2018

GDP 1Q16 5.2%, above national GDP (2.5%)

4G Concession Program: ~COP40 Tn investment in infrastructure projects (moving ahead, more expected)

• Phase 1: 9 projects awarded (COP14.8 Tn)
• Phase 2: 9 projects awarded (COP19.8 Tn)
• Phase 3: 2 projects awarded (COP4.8 Tn)

Public private initiatives (PPPs) complement government programs

• 454 as Public private initiatives (PPPs):
• 9 approved and 8 granted in 2016,

totaling ~COP20 Tn in CAPEX

• 51% are related with infrastructure
• 43 in feasibility
• 178 in pre-feasibility
• 162 rejected

Social urban housing initiatives

9 with financial closing Argos has signed 3 projects

Source: ANIF, Infrastructure Commission, DNP, Ministry of Transportation, DANE

16

3 with financial closing

17

Argos plants, best positioned to serve phase I, II and III of 4G concession program

3 2 4 1 5 7 9 6 8 8 6 4 7 9 1 3 5 2

Argos plants  9 projects with financial closings  3 projects with financial closing 1 Conexión Pacifico 2 1.4 98 2 Honda - Girardot - Puerto Salgar 1.6 190 3 Conexión Pacífico 1 2.1 50 4 Cartagena - Barranquilla 1.7 159 5 Conexión Pacifico 3 1.9 146 6 Perimetral del Oriente de Cundinamarca 1.6 153 7 Autopistas Conexión Norte 1.3 145 8 Mulaló – Loboguerrero 1.6 31 9 Autopista Rio Magdalena 2 1.7 144 Total - COP Tn 14.8 1,118

Phase II Capex Kms

1 Pasto - Rumichaca 2.4 80 2 Villavicencio - Yopal 2.9 266 3 Puerta de Hierro - Palmar de Varela 1.3 203 4 Santana - Mocoa - Neiva 3.0 454 5 Santander de Quilichao - Popayán 1.7 76 6 Bucaramanga - Barrancabermeja 2.8 190 7 Transversal del Sisga 1.0 137 8 Autopista al Mar 2 2.6 253 9 Autopista al Mar 1 2.2 176 Total - COP Tn 19.8 1,835

FC FC FC FC FC FC FC

Phase I Capex Kms

FC FC FC FC

Phase III Capex Kms

1 Bucaramanga – Pamplona 1.4 133 2 Pamplona - Cúcuta 3.4 113 Total - COP Tn 4.8 246

1 2

310

bridges

29

tunnels

253

bridges

58

tunnels

FC FC FC

18

Private public partnerships driving infrastructure growth with minor public funding requirements

APP Private Initiative Argos plants

Public Private Partnerships Capex Kms

1 Ibagué - Cajamarca 1.8 225 2 Chirajara - Villavicencio 5.1 86 3 Malla vial del Meta 3.2 325 4 Cesar – Guajira 1.7 350 5 Cambao – Manizales 1.3 256 6 Antioquia – Bolívar 2.8 491 7 Tercer Carril Bgt –Girardot 2.4 151 8 Neiva - Girardot 2.0 193 9 Vías del Nus 2.5 158 Total - COP Tn 22.8 2,235

1 2 3 4 5 6 8 9 7

8 projects awarded = COP20 Tn*

COP22.8 Tn*

9 privately funded road infrastructure projects approved and 8 awarded in 2016

(USD7.3 Bn)

* 1 billion = 1,000,000,000 - 1 trillion = 1,000,000,000,000

 8 projects awarded; 5 on pre-construction  1 project with financial closing

19

+400,000 social houses to be built over the next 4 years

• “Pipe 2 ” program: will add 61k social

housing units (VIS) in 2016 and 69k in 2017

• Free housing: 100k new homes to be built in

municipalities with less than 30k inhabitants

• Mi Casa Ya: 130k middle income families to

benefit from social housing in intermediate cities

• Rate subsidies: 130k additional interest rate

subsidies for middle income families

• TACS Rates Savings: Access to new homes

without down payment (“Tasa al Ahorro Construyendo Sociedad”)

Argos is best positioned to capture the opportunity:

• 65% share of free houses

program in ’15

• Strong presence in high growth

emerging cities

VIS in Colombia

20

CCA: Positive market dynamics with significant infrastructure projects underway

Panama: major infrastructure works

• USA recovery driving growth in remittances across the region
• Positive environment driven by government-sponsored infrastructure programs
• Significant benefits in lower oil prices as all countries are net importers of energy
• Highest 2016 and 2017 estimated growth in

Latam: 6.0% and 6.3% respectively

• Public investment expected for 2015-19: ~USD

13 Bn

• 3rd metro line: Japan granted loan of USD 2.6 Bn

for its financing

• The canal expansion will bring additional

revenues in 2017 for USD 1.4 Bn, giving a boost to the economy Honduras: government initiatives

• Remittances expected to increase ~10% due to

extension of Temporary Protected Status

• S&P revised country’s outlook to positive from stable,

reducing the overall risk for project financing

• Coalianza will invest ~USD 675 M in roads, ports and

utilities

• Projects such as hydroelectricalpower plants, roads,

airports and residential construction should start demanding cement

• 2.4%

4.4% 2.4%

• 2.5%
• 8.2%

1.5% 5.5% 3.7% 3.8% 4.1% 2.8% 3.1% 3.6% 3.6% 2010 2011 2012 2013 2014 2015 2016(E) Construction GDP growth National GDP growth 22.1% 29.3% 30.5% 14.0% 6.8% 12.0% 12.0% 9.2% 6.6% 6.1% 5.8% 6.0% 2011 2012 2013 2014 2015 2016(E) Construction GDP growth National GDP growth

Source: Banco Central de Honduras Source: Contraloría General de Panamá

4

Undertaking Strategic Investments to Further Enhance Efficiency and Competitiveness

Argos’ Innovation Center

22

BEST Program 5 aspects:

• 1. Operational Transformation:finding our
• ptimal network of plants in terms of efficiency

and environmental footprint

• Goal: improve cost competitiveness to attend

each market’s demand growth

• 2. Improve Clinker / Cement Ratio: increase the

use of alternative materials to reduce the clinker to cement ratio and expand our cement capacity

• Goal: increase capex efficiency and reduce

CO2 footprint

• 3. Alternative Fuels: acceleration of usage of

alternative fuels in all our geographies

• Goal: exceed 5% usage in Colombia, 19% in

the US and 22% in CCA by year 2018

• 4. Administrative Synergies: includes

procurement, a Shared Service Center and cost

• ptimizations
• 5. Reduce our Non-Operating Asset Base:

includes non-strategic mining titles and real estate assets

BEST Program to Further Enhance Efficiency and Competitiveness

4

• Savings in fixed costs ~COP 20 Bn per year

by turning off the mill at the Sabanagrande cement plan

• Ongoing process to turn-off the mill at the San

Gil´s cement plant

• Estimated savings in ready-mix cost structure

for 2H16: ~COP 12 Bn

• SAP rollout conclusion in the US

Tangible Results as of 2Q16

Reduce our cash cost per ton of cement by USD 4 and USD 6 in the next 18-24 months Ambitious Goal for 2018-19:

5

Track Record of Successfully Implementing Disciplined Growth Strategy

24

Disciplined growth strategy driving EBITDA growth and value creation

Acquisitions

Examples:

Completed organic growth

Examples:

+

+ USD 4.3 Bn

Funded and invested during the last 10 years

Focus and reorganization

Examples:

• 2005: Merge of 8 cement

companies in Colombia

• 2012: Spin-of f of non core

assets

+

21%

CAGR Revenues 2010-2015

23%

CAGR EBITDA 2010-2015

EBITDA (COP Bn) Revenues (COP Bn)

3,023 3,668 4,380 4,968 5,817 7,912 2010 2011 2012 2013 2014 2015

USD M 1,710 2,075 2,437 2,656 2,833 305 385 447 524 USD M 484

539 682 791 978 968 1,519 17.8% 18.6% 18.1% 19.7% 16.6% 19.2% 15.0% 17.0% 19.0% 21.0% 23.0% 25.0% 27.0% 29.0%

• 200

400 600 800 1,000 1,200 1,400 1,600 2010 2011 2012 2013 2014 2015

EBITDA EBITDA Margin

2,881

307 425 371 436 2015 2016 1T 2T

553 Note: 2010-2013 figures in COLGAAP, 2014-2016 figures in IFRS

3Q 1Q 2Q 4Q

Cartagena expansion USD 560 M Rioclaro expansion USD 93 M Colombia pow er plants USD 68 M Panama grinding expansion USD 65 M Harleyville mill USD 58 M Cartagena dispatch center USD 35 M White cement conversion USD 23 M Oil w ell cement development USD 1 M

1,653 2,213 1,826 2,189 2015 2016 1T 2T 3Q 1Q 2Q 4Q

3,479 4,402 678 861

West Virginia USD 660 M Puerto Rico USD 18 M Lafarge CIGU USD 69 M Vulcan FL USD 720 M Lafarge Honduras USD 305 M Lafarge USA USD 760 M Holcim Caribbean USD 157 M RMCC USA USD 243 M Cemento Andino USD 192 M SSC USA USD 245 M

25

Disciplined growth strategy driving EBITDA expansion and value creation

Florida, USA – Vulcan Cement Honduras-Lafarge Puerto Rico Investment

USD 720M

Investment

€231 M

New assets:

Cement plant Grinding facility

1.6 M tons 1.9 M tons

RMC

3.3 M m3

Blocks

109 M units/year Cement plant RMC area Port/terminal Grinding facility

Investment

USD18.3 M

Port

New assets:

Cement plant Grinding facility

1.0 M tons 0.3 M m3

New assets:

French Guiana– Lafarge Investment

€65 M

Grinding facility Port concession

0.2 M tons

New assets:

(Asset acquisition) (60% of shares)

Acquisitions for Since 2013

+USD1.9 Tn

Cement volume

+31%

RMC volume

+19%

3 Cement plants* 4.8 M tons

RMC installed capacity

3.3 M m3

Grinding facilities

2.4 M tons 3 12 Ports/Terminals

New assets

Port facility

(53% of shares) (Asset acquisition) 2

WV, USA – Heidelberg Investment

USD 660M

New assets:

Cement plant 2.2 M tons

(Asset acquisition)

Port/Terminal 8 *Includes 2.2 M Tons of Martinsburg. Transaction subject to the approval of the FTC

6

Healthy Financial Position and Flexibility to Pursue Growth

Harleyville Plant, USA

27

Strong balance sheet and healthy maturity profile…

Strong balance sheet with solid debt ratios, particularly in the context of a US low-cycle… … and a strong debt maturity profile Total debt: USD 1,871 M … with an adequate currency mix … Total debt: USD 1,871 M

3.9x 4.2x 3.5x 1.9x 3.8x 3.2x 3.1x 3.0x 3.7x 3.8x 6.0x 5.9x 5.0x 4.6x 2010 2011 2012 2013 2014 2015 June 2016 Net Debt / (EBITDA + Dividends) EBITDA / Financial expenses

COP; 42% USD; 57%

12 24 426 307 181 33 24 103 144 42 104 107 63 3 7 7 7 8 9 100 200 300 400 500

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Bank Loans Bonds Infraestructure leasing

* FX rate as of June 30th, 2016: COP 2,916.15 / USD

28

… together with investment portfolio provide financial flexibility to grow

• rganically and pursue strategic acquisitions

Defined core geography

 Synergies targeted from:  Vertical integration  Market growth  Cost optimization

Undertaking Strategic Investments to Further Enhance Efficiency and Competitiveness

Inorganic growth strategy

Company % Stake Price per Share (COP) Value (COP million)* Value (USD million)* Grupo Sura 6.0% 38,300 1,079,419 370 Bancolombia 4.0% 23,800 486,404 167 Cartón de Colombia 2.1% 5,480 12,653 4

Total 1,578,476 541

68% 31% 1%

Grupo Sura Bancolombia Cartón Colombia

Focus on Innovation and Sustainability

Argos’ Innovation Center, Colombia

7

30

Innovation management Research and development Alternative resources New businesses

Pillar for our sustainable growth

New materials Cement and applications Products with less consumption and emissions

Technological routes for the future

Intellectual property

7

Patent applications

1 Patent

VASP in the portfolio

20

Innovation: focus

• n people

Development of innovation as an

• rganizational

competence

• f ‘15 revenues

from innovation

+10%

• Preservation of

nonrenewable fossil fuels

• Greenhouse gases

reduction

• Adequate waste

management

• Safe, clean and final

disposals

• Use of resources
• Disposal of used tires
• Alternative fuels and raw

material cost savings

• Income from disposals

Corporate entrepreneurship leveraged in the core business

Argos’ Innovation Center

Innovation

31

Included for 3rd consecutive year as Argos is 1 of 3 cement companies that are part of the Global Index

6 Colombian companies

included in the Global Index and

9 Colombian companies

included in the EM Market Index

Siam Cement Group

Argos leading in Conduct, compliance and transparency; Risk management; Supply chain management; Tax strategy; Human Capital development; Social reporting Received Silver Class distinction for 3rd consecutive year

Sustainability

Policy

Profitability + Social development + Environmental impact

Environment Sustainability culture Communities OHSA

• Safety: Industry challenge
• 45%

reduction in the incident rate in 2015

• Defining 2020 goals

Investment in communities Maintaining good relations and being an agent that contributes to local development

• Promote the culture
• f sustainability in all

stakeholders

• Encourage the

adoption of best practices Prevent, mitigate, correct and compensate the impacts of our

• perations

COP ~79k M 2015:

Argos is members of:

Financial Highlights

Sogamoso Plant, Colombia

33

Consolidated cement and RMC volume growth…

Cement volume (mm MTPA) RMC volume (mm m3)

7.8 9.3 10.8 11.4 12.6 14.3

2010 2011 2012 2013 2014 2015

5.9 7.0 8.5 9.4 11.1 11.5

2010 2011 2012 2013 2014 2015

3,238 3,447

3,605 3,536

2015 2016

1T 2T

2,538 2,805

2,923 2,956

2015 2016 1T 2T

3Q 1Q 2Q 4Q 3Q 1Q 2Q 4Q

6,843 6,982 5,462 5,762 YTD16 YTD16

Colombia 35% USA 29% CCA 36% Colombia 28% USA - SE 40% USA - SC 28% CCA 4%

34

… result in strong revenue performance, which together with cost savings initiatives…,

Revenues (COP Bn) Operating Costs + SG&A as a % of Revenues) (COP Bn)

USD M 1,710 2,075 2,437 2,656 2,833 2,881

1,653 2,213 1,826 2,189 2015 2016 1T 2T

3,023 3,668 4,380 4,968 5,817 7,912

2010 2011 2012 2013 2014 2015

Colombia 30% CCA 20% USA 50% Others 0% 2,804 3,321 3,966 4,387 5,024 6,961 93% 91% 91% 88% 89% 88% 80% 90% 100% 110% 120% 130%

• 2,000

4,000 6,000 8,000 2010 2011 2012 2013 2014 2015

Cost + SG&A % Revenues USD M 1,586 1,879 2,207 2,346 2,453 2,535

1,488 1,951 1,584 1,898

2015 2016

1T 2T

Note: 2010-2013 figures in COLGAAP, 2014-2016 figures in IFRS

3Q 1Q 2Q 4Q 3Q 1Q 2Q 4Q

3,479 4,402 3,072 3,849

35

307 425 371 436 2015 2016 1T 2T

…drive operating leverage and efficiencies supporting EBITDA growth, as we continue to invest in the business…

Note: 2010-2013 figures in COLGAAP, 2014-2015 figures in IFRS

Capital investments to expand capacity and drive operating efficiencies (COP Bn) EBITDA and EBITDA Margin (COP Bn)

305 385 447 524 USD M 484 553 491 253 291 436 456 613 2010 2011 2012 2013 2014 2015

Strategic Maintenance

539 682 791 978 968 1,519 17.8% 18.6% 18.1% 19.7% 16.6% 19.2% 15.0% 17.0% 19.0% 21.0% 23.0% 25.0% 27.0% 29.0%

• 200

400 600 800 1,000 1,200 1,400 1,600 2010 2011 2012 2013 2014 2015

EBITDA EBITDA Margin

Colombia 39% CCA 32% USA 29%

257 130 165 226 USD M 191 195

3Q 1Q 2Q 4Q

USD 450 M 2018 - 2019

Additional Capacity

2.3 M tons

Investment Commissioning date

Sogamoso Project

YTD16 678 861

36

In Summary: Why Argos?

1

#1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas

2

Track Record of Successfully Implementing Disciplined Growth Strategy

3

Flexible Operations with Vertical Integration and Extensive Logistics Network

4

Operating in Countries with Significant Growth Potential

5

Strategic Investments Further Enhance Efficiency and Competitiveness

6

Healthy Financial Position and Flexibility to Pursue Growth

A Leading Growing Multinational Cement Company Focused on Value Creation

Cartagena Plant, Colombia

7

Focus on Innovation and Sustainability

CONTACT INFORMATION

MANUELA RAMIREZ

mramiezm@argos.com.co

CATALINA RICAURTE

cricaurte@argos.com.co

www.argos.co/ir

This recognition, called Reconocim iento Em isores – IR is giv en by the Colombian Stock Exchange, Bolsa de Valores de Colom bia S.A. It is not a recognition that certif ies the quality of registered stock , nor does it guarantee the solvency of the issuer.

ANA CASTAÑO

acastanol@argos.com.co

Permeable RMC

IR TEAM

Appendix

Modern Art Museum, Medellin, Colombia

39

Colombia: Responsive strategy in pursuit of improving results in a challenging 2016

• EBITDA margin -354 bps impacted by lower volumes and high operational leverage
• Margins per segment:
• Cement: 32.0% (-12 bps)
• RMC: 4.0% (-290 bps)
• +3.6% use of alternative fuels in the second kiln of the Rioclaro Plant with the implementation of used tires
• BEST program intends to improve EBITDA margin by 300-500 bps during the next 18-24 months
• 2016 has been a challenging year. 4G projects dispatches should start during the 4Q16
• Cement dispatches -13.8% vs -0.42% of the market, affected by agro and transportation strikes
• Cement volumes would have decreased by 8.3% eliminating the effect of the strikes
• RMC volume decreased -8.2% vs -3.8% as of May of the total market
• Volume reduction explained by infrastructure and social housing
• Responsive strategy in pursuit of improving results: price premium adjustments in selected regions, launch of

innovative products and solutions for infrastructure

2015 2016 2015 2016 Volumes Cement 000 MT 1,434 1,236

• 198 -13.8%

2,918 2,467

• 451 -15.5%

RMC 000 m3 909 834

• 75
• 8.2%

1,705 1,635

• 69
• 4.1%

2Q YTD Var Var 2015 2016 2015 2016 Revenues COP M 678,422 664,525 -13,897

• 2.0% 1,336,485 1,330,510
• 5,975
• 0.4%

EBITDA COP M 197,707 170,129 -27,578 -13.9% 389,406 374,787 -14,619

• 3.8%

EBITDA margin % 29.1% 25.6% 354.1

• 29.1%

28.2% 96.8

• 2Q

YTD Key Figures Var Var

40

Colombian market: Infrastructure drives mid-term positive outlook

• Positive variation in construction permits,

boosted by Bogota’s performance

+33% YoY +90% YoY

Colombia Bogota

• Bogota will be instrumental for construction in

the country

Infrastructure

Argos has a pipeline to supply cement and RMC for 22 functional units of 4G infrastructure projects

concession program

4G

We are positive about the

COP 21.5 Tn (budget)

For the next 4 years

~6,000 units approved

Social housing

1st wave:

• 9 awarded projects
• 8 projects with financial closings

2nd wave:

• 9 awarded projects
• 1 project with financial closing

3rd wave:

• 2 awarded projects
• 5 projects in study phase

Financial closings represent:

• 1,220 km
• 415 bridges
• 9 tunnels
• COP 14.3 Tn in investments

Source: DANE, ANI and DNP

41

USA: Historical EBITDA margin supported by market recovery

• Historical EBITDA (USD 55 M) and margin (14.9%) due to higher volumes, operational leverage and significant savings

in selling expenses (-23%)

• Margins per segment:
• Cement: 26.8% (+363 bps)
• RMC: 5.9% (+293 bps)
• Market dynamics permitted price increases by low-single digits
• Important volume growth, in both cement (+16.3%) and RMC (+5.3%), due to:
• Better weather conditions: 21% less precipitation during the quarter
• Strong volume by market recovery and pent-up demand

2015 2016 2015 2016 Volumes Cement 000 MT 910 1,058 148 16.3% 1,545 1,993 448 29.0% RMC 000 m3 1,910 2,010 101 5.3% 3,540 3,913 373 10.5% YTD 2Q Var Var 2015 2016 2015 2016 Revenues USD M 321 366 44 13.8% 585 700 115 19.7% EBITDA USD M 35 55 20 57.4% 49 89 40 81.4%

EBITDA margin % 10.8% 14.9% 414.3 8.3% 12.6% 430.2

2Q YTD Key Figures Var Var

42

US housing sector recovery and potential growth in the medium term

Construction spending and cement consumption:

• Almost all of our states are expected to perform above the national average, supporting our positive expectations
• Existing and new home sales continue recovering, reaching pre-crisis levels
• New home sales in June printed an increase of 25% year over year
• Building permits were 20% above the historical average since 2008 crisis

Source: PCA, Bloomberg

Argos States (CAGR): 5.6% Total USA (CAGR): 4.8% Argos States (CAGR): 6.1% Total USA (CAGR): 5.4% Cement consumption Construction spending

339 357 378 401 421 1.003 1.045 1.095 1.153 1.210 2016E 2017E 2018E 2019E 2020E Total Argos 2016-2020 (USD mn) Total US 2016-2020 (USD mn) 31.955 33.994 36.298 38.432 40.480 92.916 96.909 102.361 108.446 114.789 2016E 2017E 2018E 2019E 2020E Total Argos 2016-2020 (000 Metric Tons) Total US 2016-2020 (000 Metric Tons)

43

CCA: Efficiencies improved margin by 122 bps

• EBITDA margin above 35% and historical USD 50 M EBITDA. Cement margin: 36.5% (+232 bps)
• Honduras:
• Margins above 54%, with record in April (59%)
• Operational efficiencies during 1H: reliability factor of the kiln: +10 bps, alternative fuels: +150 bps, clinker to

cement factor in GU: -260 bps

• Panama:
• Margin close to 38%, with an historical result in June (42%)
• Operational efficiencies during 1H: clinker to cement factor in GU: -300 bps, energy consumption: -3%
• Cement volumes -1.6%, affected by trading (-34%)
• Argos’s natural markets +6%: Eastern Caribbean Operations, Panama and Honduras
• Panama’s cement volumes increased 7%, faster than the national market (+4%)
• Honduras cement market growth +11%:
• San Lorenzo’s grinding facility will restart in 3Q (+300 k MT) and a new distribution

center was inaugurated in San Pedro Sula

2015 2016 2015 2016 Volumes Cement 000 MT 1,261 1,241

• 20
• 1.6%

2,380 2,522 142 6.0% RMC 000 m3 105 112 7 6.8% 217 213

• 3
• 1.5%

2Q YTD Var Var 2015 2016 2015 2016 Revenues USD M 138 144 5 3.9% 273 283 10 3.8% EBITDA USD M 48 50 2 4.7% 91 99 9 9.4%

EBITDA margin % 34.6% 34.8% 27.4 33.2% 35.0% 180.9

Var Var 2Q Key Figures YTD

Cement Volume 2Q16

18% 20% 10% 10% 9% 17% 16%

Panama Honduras Haiti

• Dom. Rep

EC Trading Exports

44

CCA market: positive outlook due to ambitious plans

Honduras Panama

• The canal expansion, inaugurated the 27th of June, will

bring additional revenues to the country, boosting the economy

• Estimated additional revenues: USD 1.4 bn for 2017

and USD 2 bn for 2020

• +40% logistical investments
• ~150 - 200 thousand new jobs
• Panama has the highest 2016 and 2017 estimated

growth in Latam: 6.0% and 6.3% respectively

• Remittances are expected to increase ~10% due to

the extension of the Temporary Protected Status

• Remittances represent ~19% of the country’s

GDP

• S&P

Global Ratings revised its

• utlook

for Honduras to positive from stable, which reduces the

• verall risk for project financing
• In 2016 the government plans to invest 3.6% of

GDP in several infrastructure projects

Source: Inter-American Development Bank.

Remittances (USD Bn)

2,4 2,6 2,7 2,5 2,5 2,9 2,9 3,1 3,4 2,6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Panama Canal

For the next 10 years

Cementos Argos S.A

Corporate presentation

2016