Mural in architectural concrete, Bogotá, Colombia Cementos Argos Cartagena – May 2013 1
Mural arquitectónico This document contains forward-looking statements and information regarding 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 any unexpected situation presents itself or if the aforementioned premises or estimations turn out to be incorrect, the future results may differ significantly from the ones 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 DISC DISCLAIMER LAIMER any other factors. 2
Based on a growth strategy More focused on cement and concrete Leadership in the markets Operational and in which we financial are present flexibility to maximize growth Logistical opportunities interconnection of our operations to generate synergies 3
Realizing the profitable growth that was envisaged at the time of the issuance 2013 2014 May May Roadshow Amount: USD 880 m 100% of the funds earmarked for Use of the funds: prepayment of debt strategic growth and growth… Inorganic: Acquisition in Honduras, announced in September 2013 Acquisition in Florida, announced in January Window of 2014 opportunity Acquisition in French Guiana, announced Strategic area of Creation of in April 2014 operations synergies Organic : The dispatching center is operating, increasing our competitiveness in the Colombian North coast Expansion in the interior of Colombia and the mill in South Carolina are on schedule Strategic projects Attractive markets 4
Our growth consolidates us as a global player, leader in the United States The player that best managed to take advantage of the global financial crisis to grow in a profitable way Global ranking based on installed capacity (m MT) US ranking based on installed capacity (m MT) Lafarge 225 Cemex 17.1 Holcim 218 Holcim 15.1 Heidelberg 124 Buzzi 9.0 Cemex 96 Heidelberg / Lehigh 8.1 Italcementi 70 Ash Grove 7.5 Votorantim 59 7 th IN THE US Lafarge 7.1 Ultratech 52 Argos 6.6 RANKING, OF A Taiheiyo 50 TXI 5.4 Buzzi 47 TOTAL OF 30 Italcementi / Essroc 5.0 Eurocement 41 COMPANIES Votorantim / St. Marys 4.2 Camargo Correa 38 (Previously 13 th ) Eagle 3.7 Jaiprakash 33 Vicat 3.6 Vicat 30 Titan 3.5 Titan 24 Taiheiyo / CalPortland Siam Cement Group 2.8 24 18 th IN THE Semen Gresik Valderrivas / Giant 2.7 23 GLOBAL Dangole GCC 2.4 22 Argos RANKING* 20 CPV (Previously 21 st ) 19 Ranking in the Southeastern USA * (m MT) Dalmia Cement 17 India Cemets 16 Cementir 15 Cemex 7.7 Siam City Cement 15 Argos 6.6 2 nd PLAYER in the Shree Cement 14 Holcim 4.1 Madras Cement 12 Southeastern states Titan 2.2 Saudi Cement 12 of the USA Vicat Southern Province… 1.9 9 Large Multinationals Am. Cement /… Colacem Latam 8 1.1 India PPC 8 Valderrivas / Giant 1.0 Other mature markers YTL 8 Votorantim 0.8 Other companies Yanbu Cement 7 Lehigh 0.8 Source: Company reports 2012 - PCA. (*) Does not include China * NC, SC, GA, FL, AL, MS, 5
In order to keep top positions and to continue to take advantage of the opportunities of a changing industry Unnormalized EBITDA due to the American Net Debt Net Debt recovery EBITDA EBITDA Indebtedness EBITDA does not 3.36x 2.8x include 100% of the impact of Honduras and French Guyana Ordinary shares of Bancolombia and Grupo Net Debt Sura EBITDA Investment USD 809 m Existing portfolio of portfolio 1.6x Cementos Argos that was not spun off in 2012 Capacity to increase indebtedness through bank loans or securities market Excellent relations with possible agents Know-how developed through M&A and integration of new operations 6
With a multifaceted focus on operational excellence 1 2 Strategic projects Integration of new operations Cartagena Dispatching Center Potential of the assets in Florida as an Expansion in the interior of Colombia operational pivot Harleyville mill Synergies with the operations in French Guyana 3 4 Development of the concrete channel Energy structure Creation of concrete operations in Honduras Alternative fuels Support of the model through mobile plants Optimization and visibility in terms of energy Portfolio of value-added concretes Vertical integration for energy supply 6 5 Deepening of the Argos Model Optimization of logistics and processes Relation with consortiums that take part in the Search for greater efficiency in supply from the 4G process network of plants in Colombia Promotion of the benefits of building roads in Better cluster transport coverage in the concrete Caribbean Deepening in the distribution chain Importance of our port in Houston to supply Technological platforms to share best practices concrete operations 7
Staying committed to sustainability Recognized for our good practices in terms of sustainability in its three dimensions and of good corporate governance, Argos continues to be committed to: Company kg % Reduction CO2 / ton of emissions cement material 8
Seeing innovation as the capacity to reinvent ourselves to stay competitive GOAL 2015 Ideas Action 10% of revenues coming from Collaborative work to put ideas into practice innovation Adapting to the best global Innovation culture New Businesses practices Generation and execution of ideas: Materials • Link with cement and • Recycled aggregates concrete business • Cement with low clinker • Businesses based on our content core competences Processes Alliances with universities and • Capturing of CO 2 and neutral Argos Entrepreneurial Center: cement Green Cement Business: • Alternative fuels • Optimization of thermal cycle Applications in concrete Lime Business: • Permeable concrete • Ultra high performance CALTEK concrete 9
Dallas, USA Concrete mixer trucks – Atlanta, Georgia USA Regional Division Cartagena - May 30, 2014
General overview of the US market Market in transition Reorientation and repositioning Survival mode • Reindustrialization • Fiscal stability • Employment + Salaries • Residential sector 2014 - 2018 2008 2009 2010 2011 2012 2013 USA YOY variation in cement consumption 10.1% 8.3% 7.7% 8.9% 7.7% 4.5% 3.4% 4.4% 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E -4.2% -17.1% -26.8% 11 Source: PCA Spring 2014 Forecast
Construction boosts economic growth Residential construction at the head of the sector’s development 15.2% 2014E GDP vs. construction GDP by sector YOY variation 19.8% 17.3% 15.2% 12.0% 11.8% 9.9% 8.7% 9.3% 8.0% 5.7% 4.3% 4.8% 3.6% 3.2% 3.9% 2.8% 4.0% 3.3% 3.1% 2.9% 1.9% 2.9% 1.0% 2013 2014E 2015E 2016E 2017E 2018E -6.5% PIB Real Construcción Residencial Construcción NO residencial Construcción Pública Public construction Commercial Construction Real GDP Residential Construction 37% 47% Stake of residential sector will increase 2013 2018E Stake per sector of the total value of construction 1,400 1,200 1,000 USD billion * 800 600 596 400 +90% 314 281 200 246 47.1% 37.5% 39.8% 43% 31.8% 45.5% 47% 34% 0 2011 2012 2013 2014E 2015E 2016E 2017E 2018E Construcción residencial Construcción No residencial Construcción pública Commercial Construction Public construction Residential Construction 12 * 1 billion = 1,000,000,000 and 1 trillion = 1,000,000,000,000 Source: PCA Spring 2014 Forecast
USA market stands out at a global level 9.2% Global cement consumption pulled by USA CAGR: 2012 - 2016E CAGR CAGR 2011 2013 2013 2015 8.85% 5.20% USA 4.40% EM (exc-China) 4.60% 3.75% Latam 4.33% World (Exc China) 3.43% 4.05% -7.17% Europe 0.30% +8.7% USA cement prices confirm dynamic of recovery increase between Actual increase of cement prices per metric ton between 2013 – 2015E 2012 - 2016E USA 2.23% Actual price -0.73% Europe increase in the USA -1.23% Latam ratifies economic -1.23% strength World (Exc China) -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% Source: PCA Spring forecast 2014 – CemNet, Global Cement 2014 Outlook 13
Recommend
More recommend
