CEMENTOS ARGOS First Half 2010 Results July 30 th , 2010 DISCLOSURE - - PowerPoint PPT Presentation

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CEMENTOS ARGOS First Half 2010 Results July 30 th , 2010 DISCLOSURE - - PowerPoint PPT Presentation

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CEMENTOS ARGOS First Half 2010 Results July 30 th , 2010 DISCLOSURE This document contains forward-looking statements relating to Cementos Argos S.A. and its subsidiaries (Argos) based upon management projections. These projections reflect

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SLIDE 1

CEMENTOS ARGOS

First Half 2010 Results

July 30th, 2010

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SLIDE 2

2 Cementos Argos 1H2010 Results – July 2010

DISCLOSURE

This document contains forward-looking statements relating to Cementos Argos S.A. and its subsidiaries (Argos) based upon management projections. These projections reflect Argos’ opinion on future events that may be subject to a number of risks, uncertainties and assumptions. Various factors may cause actual results to differ from those expressed herein. Argos assumes no obligation to update or correct the information contained in this presentation.

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SLIDE 3
  • 1. Overview
  • 2. Consolidated Results

2.1 Colombia 2.2 United States 2.3 The Caribbean

Content

3 Cementos Argos 1H2010 Results – July 2010

2.3 The Caribbean 2.4 Other Businesses

  • 3. Debt Profile
  • 4. Portfolio

Cartagena Plant

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SLIDE 4

Executive Summary

Cemento Panamá, a subsidiary of Cementos Argos, signed a contract with the “Grupo Unidos por el Canal” consortium to supply cement and cementitious materials for the Atlantic Side of the Panama Canal expansion Cementos Argos successfully started to produce and sell oil well cement, derived from our fully-integrated cement plant in San Gil, Santander in Colombia Colombia Regional Division responding in line with infrastructure developments in the country YTD to 1H 2010 Cementos Argos in Colombia has been awarded around 3.8 million cubic meters in ready

4 Cementos Argos 1H2010 Results – July 2010

YTD to 1H 2010 Cementos Argos in Colombia has been awarded around 3.8 million cubic meters in ready mix contracts to be dispatched within the next 24 to 36 months Slower-than-expected recovery in the United States. Volumes increasing in 2Q, however, significant decrease in prices impacting negatively revenues in this first half Cementos Argos’ 1H10 consolidated revenues registered COP$ 1.5 billion (US$ 757 million), EBITDA achieved COP$ 275K million (US$ 141 million)

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SLIDE 5

Thousand million COP$ 2010 2009

  • Var. (%)
  • Var. (%)

Q2 / Q1 2010 2010 2009

  • Var. (%)

Revenues 774 853 (9,2) 10,7 1.474 1.808 (18,5) Costs & SG&A 700 762 (8,1) 6,7 1.356 1.649 (17,7) Operating Profit 74 91 (18,4) 70,8 117 159 (26,2) EBITDA 153 177 (13,4) 25,1 275 333 (17,5) EBITDA Margin (%) 19,7 20,7 18,7 18,4

First Half April - June

Consolidated Results

5

Million US$ Revenues 397 382 4,0 10,3 757 778 (2,6) Costs & SG&A 359 341 5,2 6,4 697 709 (1,8) Operating Profit 38 41 (6,7) 68,8 60 68 (11,7) EBITDA 78 79 (1,0) 24,5 141 144 (1,6) EBITDA Margin (%) 19,7 20,7 18,7 18,5

Cementos Argos 1H2010 Results – July 2010

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SLIDE 6

10,3 0,1

8,0 10,0 12,0 14,0 16,0

Balance Sheet

Balance Sheet Structure at june 2010

Minority Interest Shareholders’ Equity billion

Assets

11% 35% 41% 13%

Short Term Permanent Investments* PP&E* Other Long Term

14,8 4,5

0,0 2,0 4,0 6,0 8,0 Assets

  • Liab. & Equity

6 Liabilities COP$ b

Liabilities

19% 27% 28% 13% 13%

Financial Oblig. Short Term Other Short Term Bonds Financial Oblig. Long Term Other Long Term

* Include appraisals

Cementos Argos 1H2010 Results – July 2010

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SLIDE 7

Colombia

Cementos Argos - Enero, 2010 7

Colombia Regional Division

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SLIDE 8

Colombia Regional Division

Revenues

380 369

820 734

600 800 1.000 Thousand Million COP$

EBITDA EBITDA Margin (%)

124

251 231

255 340

Thousand Million COP$ 29,6 33,3 31,4

2010

  • 3%
  • 10%
  • 8%

8

440 365

200 400

2009 2010 1Q 2Q

126 108 124 123

85 170

2009 2010 1Q 2Q

28,8 32,6 30,6

10 20 30 40

2009 1H 2Q 1Q

  • 3%
  • 17%
  • 15%
  • 1%

Cementos Argos 1H2010 Results – July 2010

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SLIDE 9

Colombia Regional Division

Cement and Ready-Mix Volumes

Cement

Tons 000

968 1.037

1.937 1.965

1.500 2.000 2.500

Ready Mix

m3 000

821

800 1.000 1.200 1.400 +7% +1.5% +37%

9

968 928

500 1.000

2009 2010 1Q 2Q 297 396 300 424

597

200 400 600 800

2009 2010 1Q 2Q

+7%

  • 4%

+42% +33% Cementos Argos 1H2010 Results – July 2010

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SLIDE 10

Colombia Regional Division

YTD to June, Cementos Argos has been awarded around 3.8 million cubic meters in ready mix contracts to be dispatched within the next 24 to 36 months

La Línea Tunnel Cartagena Refinery Expansion Hidrosogamoso Porce III

Distribution of the 3.8 million m3 Awarded

6% 6% 5%

Road Hydroelectric

10

Argos’ Cement Plant

52% 24% 7%

Industry Water / Sewage Bridge / Tunnel Ports / Airports

Some of the projects where Argos is present

Cementos Argos 1H2010 Results – July 2010

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SLIDE 11

United States

Cementos Argos - Enero, 2010 11

United States Regional Division

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SLIDE 12

15

13 18 23

124 109

242 198

150 200 250 300

United States Regional Division

Revenues

Million US$

EBITDA Ready-Mix Volumes

Million US$

  • 18%

954 1.026

1.881 1.826

1.500 2.000 2.500

m3 000

  • 3%

5

  • 1

11 3

2

  • 2

3 8

2009 2010 1Q 2Q

118 89 109

50 100 150

2009 2010 1Q 2Q

12

  • 12%
  • 25%
  • 76%
  • 90%

927 800 1.026

500 1.000

2009 2010 1Q 2Q

  • 14%

+8% Cementos Argos 1H2010 Results – July 2010

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SLIDE 13

United States Regional Division

PCA’s 2010 summer forecast shows very positive figures for cement consumption growth for the midterm in the states where Argos has operations

State / Year 2009 2010E 2011E 2012E 2013E 2014E Georgia

  • 40,4%

0,6% 21,6% 32,9% 20,0% 13,8% North Carolina

  • 31,2%

2,2% 19,0% 21,6% 14,6% 7,4% South Carolina

  • 33,8%

12,2% 22,2% 23,0% 14,3% 9,4% Virginia

  • 24,4%

4,1% 16,9% 17,0% 12,3% 8,4% Cement Consumption Variation

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Virginia

  • 24,4%

4,1% 16,9% 17,0% 12,3% 8,4% Southeast Zone

  • 33,3%

3,6% 19,7% 24,2% 15,8% 10,2% Arkansas

  • 20,0%

12,0% 14,7% 13,1% 9,5% 6,3% Texas

  • 32,3%

8,4% 12,9% 11,1% 9,3% 7,8% Gulf Zone

  • 31,5%

8,7% 13,1% 11,2% 9,3% 7,7% Total 6 States

  • 32,2%

6,9% 15,4% 15,9% 11,8% 8,7%

Source: Portland Cement Association Summer Forecast 2010 E: Estimate Cementos Argos 1H2010 Results – July 2010

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SLIDE 14

The Caribbean

Cementos Argos - Enero, 2010 14

Caribbean Regional Division

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SLIDE 15

18

33 30

30 40 50

75 78

157 146

150 200

Caribbean Regional Division

Revenues

Million US$

EBITDA EBITDA Margin (%)

Million US$

  • 7%
  • 9%

20,5 20,5 20,5

2010

15 14 18 16

10 20

2009 2010 1Q 2Q

82 68 78

50 100

2009 2010 1Q 2Q

15 +3%

  • 17%
  • 7%
  • 10%

18,3 23,5 20,8

10 20 30 40

2009 1H 2Q 1Q

Cementos Argos 1H2010 Results – July 2010

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SLIDE 16

117

245 199

200 250 300 350

841 648

1.633 1.283

1.000 1.500 2.000

Caribbean Regional Division

Cement and Ready-Mix Volumes

Cement

Tons 000

Ready Mix*

m3 000

  • 21%
  • 19%

128 102 97

50 100 150

2009 2010 1Q 2Q 792 635 648

500 1.000

2009 2010 1Q 2Q

16

  • 23%
  • 20%
  • 17%
  • 21%

* Operations from Concreto Panamá

Cementos Argos 1H2010 Results – July 2010

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SLIDE 17

Caribbean Regional Division

Panama GDP annual var. (%)

0,6 2,2 4,2 7,5 6,9 8,5 12,1 9,2 2,4 5,0 6,3

01 02 03 04 05 06 07 08 09E 10E 11E

The IMF expects a strong recovery for 2011, being infrastructure development an important catalyst

17

Source: IMF – May 2010

Dominican Republic GDP annual var. (%) Haiti GDP annual var. (%)

1,8 5,8

  • 0,3

1,3 9,3 10,7 8,5 5,3 3,5 3,5 6,0

01 02 03 04 05 06 07 08 09 10E 11E

  • 1
  • 0,3

0,4

  • 3,5

1,8 2,3 3,4 0,8 2,9

  • 8,5

7,0

01 02 03 04 05 06 07 08 09 10E 11E Cementos Argos 1H2010 Results – July 2010

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SLIDE 18

Debt Profile

Cementos Argos - Enero, 2010 18

Debt Profile / Cash Flow

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SLIDE 19

Short Term vs. Long Term COP vs. USD

67% 33%

Long Term Short term

69% 31%

COP USD

19

Consolidated Cost of Debt (%) Ratios

Net Debt EBITDA + Dividends LTM EBITDA Financial Expense Debt Equity = 3.79 = 2.81x = 24.5%

10,6 10,1 9,3 8,6 8,6 8,3 7,6 7,7 7,3 6,9 6,8 6,6 6,2 2,7 2,4 2,4 2,4 2,4 2,4 2,0 1,7 1,7 1,7 1,7 1,8 1,9 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Abr-10 May-10 Jun-10

COP USD

Cementos Argos 1H2010 Results – July 2010

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SLIDE 20

Cash Flow Dec. 09 – Jun. 2010

316 229

+ 141

  • 44
  • 124
  • 5

+ 2 + 135

Million US$ 20

  • 54
  • 16
  • 121

Caja Inicial EBITDA Var.Capital de Trabajo Capex Imptos Gtos Financ. Dividendos Neto Otros No Operac. Operaciones Financiacion Desinversion Caja Final

Cash at

  • Dec. 09

EBITDA WK CAPEX Taxes Financial Expense Dividends, Net Other Non-Op. Debt Amort. Divestiture Cash at

  • Jun. 10

Cementos Argos 1H2010 Results – July 2010

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SLIDE 21

Portfolio Cementos Argos and Stock Performance

Cementos Argos - Enero, 2010 21

Non-Cement Portfolio

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SLIDE 22

Company % Stake Held Share Price (In COP) * Value at 30/06/2010 (In COP millions) Grupo Suramericana 26,2% 29.960 3.684.320 Bancolombia 8,0% 23.760 967.962 Grupo Nal. de Chocolates 5,7% 20.700 516.271 Others 33.247 5.201.800 TOTAL

71% 19% 10% 1%

Sura Bancolombia GNCH Others

Cementos Argos’ Portfolio Inversiones Argos’ Portfolio

Company % Stake Held Share Price Value at 30/06/2010 22 Company % Stake Held Share Price (In COP) * Value at 30/06/2010 (In COP millions) Cementos Argos 62,2% 11.400 8.166.436 Grupo Suramericana 9,1% 29.960 1.285.550 Colinversiones 48,7% 6.240 2.188.537 Bancolombia 3,9% 23.760 467.205 Grupo Nal. de Chocolates 4,7% 20.700 420.275 EPSA** 11,9% 9.165 376.990 Fabricato - Tejicondor 1,1% 29 2.674 12.907.667 TOTAL

63% 17% 10% 4% 3% 3%

Cementos Argos Colinversiones Sura Bancolombia EPSA GNCH Fabricato - Tejicondor

* Closing price at June 30, 2010 ** The EPSA share price is its purchase price

Cementos Argos 1H2010 Results – July 2010

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SLIDE 23

Contact Information

www.argos.com.co

23

Tomás Uribe

Investor Relations Tel.: (574) 319.87.12 e-mail: turibe@argos.com.co Medellín, Colombia

Ricardo Sierra

CFO e-mail: rsierra@argos.com.co Medellín, Colombia

Cementos Argos 1H2010 Results – July 2010