Cementos+Argos+-++2Q2012+Results by cuiliqing

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									CEMENTOS ARGOS
2Q2012 Results

July 27, 2012
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.


 Cementos Argos 2Q2012 Results – July 2012                                                                                             2
Content


  1. Highlights 2Q2011

  2. Consolidated Results

         2.1 Colombia

         2.2 The Caribbean

         2.3 United States

  3. Debt Profile

  4. Cash Flow

  5. Investment Portfolio                   Panoramic view – Cartagena Plant




Cementos Argos 2Q2012 Results – July 2012                                      3
Highlights 2Q2012

 Argos cement sales up 22% to 4.9 millions tons

 Argos ready-mix concrete sales up 29% to 4.2 million cubic meters

 Revenues up 31% to COP$ 2.1 trillion (US$ 1.2 billion) and EBITDA up 29% to COP$ 380 billion (US$ 212
  million)

 In the Colombia Division cement sales up 6% and ready-mix concrete sales up 19%

 The Caribbean Division continues to register higher volumes compared with last year

 The United States Division experienced an unprecedented second quarter, reporting EBIDTA of US$ 2 million

 As at 30 June 2012, Cementos Argos stock in the Colombian stock market (BVC) closed at COP$ 7,000
  representing a 27% increase after asset spin-off

 After asset spin-off, average daily volume up to US$ 5 million compared to US$ 2 million daily average volume
  experienced in the 2012 period preceding asset spin-off




Cementos Argos 2Q2012 Results – July 2012                                                                         4
Volume Summary by Regional Division
                                                           Cement

            Ton 000
                                                                                          + 788           4.923
                                + 136                                  + 150
            4.041
                                                   - 193




                                                                                                          +22%
                               +6%                 -26%                +16%                               + 4%    (proforma)

             2010             Colombia      Caribbean (Exports)     Caribbean        USA - Southeast      2011
                                                                     (Local)

                                                  Ready-mix concrete
             m3 000
                                                                                          + 178           4.185
                                                                       + 539
            3.233               + 230               +5




                                                                  +104%                                   +29%
                               +19%               +2%             +2% (proforma)             +14%         +11% (proforma)
             2010             Colombia          Caribbean         USA - Southeast   USA - South Central   2011



Cementos Argos 2Q2012 Results – July 2012                                                                                5
Consolidated Results
                                             2Q                                    1H
                                                                 Var
      Thousand million COP$       2012       2011    Var. (% )           2012     2011    Var. (% )
                                                                  .
      Revenues                    1,092      849      28.7       3.5     2,147    1,636    31.2

      Costs & SG&A                 996       760      31.0       4.2     1,952    1,500    30.1

      Operating Profit             96         88       8.8       ###      195      136     43.4

      EBITDA                       186       157      18.4       ###      380      295     28.7

       EBITDA Margin (%)          17.0       18.5                        17.7     18.0

       Net income                       98     357      -72.2            354.0    386.0     -8.4

      Million US$

      Revenues                     611       472      29.5       4.0      1,198     891     34.4

      Costs & SG&A                 557       423      31.8       4.8      1,089     817     33.4

      Operating Profit             54         49       9.3       (2.8)     109      75      46.2

      EBITDA                       104        87      18.6       (4.1)     212      161     31.7

       EBITDA Margin (%)          17.0       18.5                          0.2     18.0

      Net income                    55.3     199.2      -72.2             199      214       -8.4


Cementos Argos 2Q2012 Results – July 2012                                                             6
Consolidated Balance Sheet
                                       Balance Sheet Structure at June 2012


                                                                                  Assets
                  12,0                                                    14%         16%         Short Term
                                     Minority
                                     Interest         0,1                                         Permanent
                  10,0
                                                                                                  Investments*
                                                                                            14%
                                                                                                  PP&E*
                   8,0
                                   Liabilities
                                                      4,8
   COP$ billion




                                                                                                  Other Long Term
                   6,0                                                    56%
                         10,5
                   4,0                                                           Liabilities
                                  Shareholders’
                                        Equity        5,6                                         Financial Oblig.
                                                                           10%   9%               Short Term
                   2,0
                                                                    14%                           Other Short
                                                                                                  Term
                   0,0                                                                  25%
                                                                                                  Bonds
                         Assets                  Liab. & Equity
                                                                                                  Financial Oblig.
                                                                                                  Long Term

                                                                           42%                    Other Long
                                                                                                  Term


                                                                                                          * Include appraisals


Cementos Argos 2Q2012 Results – July 2012                                                                                 7
Colombia Regional Division
 Colombia




Cementos Argos - Enero, 2010   8
Colombia Regional Division
Cement and Ready-Mix

                              Cement                                  Ready-mix concrete
                                                    Ton 000                                       m3 000
       3.000                                                                               +19%
                                            +6%               1.600
                                                                                        1.459
                                            2.507             1.400
       2.500          2.371
                                                                      1.229
                                                              1.200
       2.000                                                                               737
                                            1.230             1.000
                      1.192                                                                +15%
                                             +3%                       642
       1.500                                                   800

                                                               600
       1.000

                                                               400
                      1.179                 1.277                                          722
         500
                                             +8%
                                                                       587                 +23%
                                                               200

           0                                                     0
                      2011                  2012                      2011                 2012
                               1Q   2Q                                        1Q   2Q




Cementos Argos 2Q2012 Results – July 2012                                                                  9
 Colombia Regional Division


             Revenues                                 EBITDA                                 EBITDA Margin (%)
                   Thousand Million COP$                  Thousand Million COP$
                            +28%
                                             400                    +39%
1.200                       1.124                                   363
                                                                                                                       32.3
1.000                                        320
           875                                                                    2012                                31.2
                             555                   262               173
 800                                                                                                                    33.3
                            +24%             240                    +30%
            449
 600                                               133
                                             160
                                                                                                                  29.9
 400

                             569                                     189
                                                                                  2011                            29.5
                                             80
 200        426             +34%                   129              +47%                                              30.3

   0                                          0
           2011             2012                   2011             2012                 0       10        20    30           40

                  1Q   2Q                                 1Q   2Q                                     1H    2Q   1Q




 Cementos Argos 2Q2012 Results – July 2012                                                                              10
Argos in Infrastructure in Colombia

   Argos currently participates in more than half a dozen infrastructure projects in
    Colombia

   Currently serving infrastructure projects demanding 2.1 million m3

   Projects whose delivered volume outstands:

           Ruta del Sol
           Túnel de La Línea
           Refinería de Ecopetrol en Cartagena
           Transversal Medellín-Quibdó

   Additional 800 million m3 under negotiation

   More than other 3 million m3 in new projects are currently being structured in
    Colombia to be offered for auction in 2013 and 2014


                                                              Source: Argos and Agencia Nacional de Infraestructura


Cementos Argos 2Q2012 Results – July 2012                                                                     11
Argos’ monthly ready-mix concrete sales in Colombia
                   In cubic meters
300.000




250.000




200.000




150.000




100.000




 50.000




      0




                                                                                                                                                            sep-10
                                                sep-08




                                                                                                      sep-09




                                                                                                                                                                                                                  sep-11
          jan-08




                                                                                                                        jan-10




                                                                                                                                                                              jan-11
                                                                  jan-09
                                       jul-08




                                                                                             jul-09




                                                                                                                                                   jul-10




                                                                                                                                                                                                         jul-11




                                                                                                                                                                                                                                    jan-12
                     mar-08




                                                                           mar-09




                                                                                                                                 mar-10




                                                                                                                                                                                       mar-11




                                                                                                                                                                                                                                             mar-12
                                                         nov-08




                                                                                                                                                                                                                           nov-11
                                                                                                               nov-09




                                                                                                                                                                     nov-10
                                                                                                                                          may-10
                              may-08




                                                                                    may-09




                                                                                                                                                                                                may-11




                                                                                                                                                                                                                                                      may-12
                                                                                                                                                                                                                                               Source: Argos


Cementos Argos 2Q2012 Results – July 2012                                                                                                                                                                                                                      12
Caribbean Regional Division
 The Caribbean




Cementos Argos - Enero, 2010   13
Caribbean Regional Division
Cement and Ready-Mix

                                    Cement                             Ready-mix concrete*
                                                      Tons 000                                  m3 000

        2.000                                                    350
                                               -3%
                         1.670                1.627              300
                                                                                         +2%
        1.500
                                                                 250
                                                                       220               225
                           869
                                               899               200
        1.000                                  +3%                                       106
                                                                       118               -10%
                                                                 150


                                                                 100
          500
                           801                 728
                                                                 50    102               119
                                               -9%                                       +17%

            0                                                     0
                          2011                2012                     2011              2012
                                    1Q   2Q                                   1Q   2Q


* Operations from Concreto Panamá


Cementos Argos 2Q2012 Results – July 2012                                                                14
 Caribbean Regional Division


             Revenues                                   EBITDA                              EBITDA Margin (%)
                             Million US$                           Million US$
                                             70
                            +15%
250                         238
                                             60
                                                                   -8%                                        20.2
          207                                     52
200                                          50                    48            2012                    18.4
                             123                                                                               22.1
                            +13%             40
150        109                                     29               23
                                                                   -23%
                                             30
100                                                                                                                  25.2
                                             20
                                                                                 2011                                 26.9
                             115
50         98                                      23               25
                            +18%             10                    +11%                                         23.3

 0                                           0
          2011              2012                  2011             2012                 0      10        20           30      40

                 1Q   2Q                                 1Q   2Q                                    1H    2Q           1Q




 Cementos Argos 2Q2012 Results – July 2012                                                                                   15
United States Regional Division
 United States




Cementos Argos - Enero, 2010      16
United States Regional Division

                            Cement                                 Ready-mix concrete
                                               Ton 000                                            m3 000

           1.000
                                                           2.500
                                                                                           +11%
                                           788                                            1.976
            800
                                                           2.000
                                                                       1.785

            600                                            1.500
                                            435                                            1.053
                                                                         957
                                                                                           +10%
            400                                            1.000



            200                                             500                             923
                                            354                          828
                                                                                            +11%

              0                                               0
                         2011              2012                         2011               2012

                              1Q    2Q                                         1Q   2Q


                   Corresponds to assets acquired in the   RMC volume accounts for the acquired assets in first
                   southeast (18% vs. 1 semester 2011)     semester 2012: 525K m3 (1% vs. first semester 2011)


Cementos Argos 2Q2012 Results – July 2012                                                                         17
United States Regional Division

                 Revenues                                                         EBITDA
                                 Million US$                                                 Million US$
                                                                      10
                               +78%
   350                          326                                    8

   300                                                                 6

                                                                       4
   250
                                 175                                   2                                   Includes EBITDA of
                                +77%                                                           2           US$ 2 million from the
   200        183                                                      0                                   assets acquired in the
                                               Includes revenues of                                        southeast from
                                               US$ 127 million from          -2
                                                                                                           Lafarge
   150                                         the assets acquired     -2
               99                              in the southeast
                                               from Lafarge            -4                     -8
   100                                                                       -6
                                 150                                   -6
    50                         +79%
               84                                                      -8
                                                                             -8               -5
     0                                                                -10
              2011             2012                                         2011             2012
                     1Q   2Q                                                       1Q   2Q




Cementos Argos 2Q2012 Results – July 2012                                                                                 18
Summary by Regional Division / Other Businesses
                                                                   YTD at June

                                            Revenues                                 EBITDA

                                   2012       2011     Var (%)   2012      Mgn (%)    2011    Mgn (%)   Var (%)
       COP$ thousand million

       Colombia                    1.124      875        28      363         32,3     262      29,9       39

       United States                584       337        73      -10         -1,7     -15       -4,5      37

       The Caribbean                426       379        12      86          20,2      95      25,1       -10

       Sub-total                   2.134     1.591       34      439         20,6     342      21,5       29

       Overhead                      0         0        N/A      -56         N/A      -48       N/A       16

       Other Businesses             13         45        -70      -3         -25,5     2        4,3      -277


       Consolidated                2.147     1.636       31      380         17,7     295      18,0       29

       US$ million

       Colombia                     627       476        32      202         32,2     142      29,9       42

       United States                326       183        78       -5         -1,7      -8       -4,5      34

       The Caribbean                238       207        15      48          20,2      52      25,2       -8

       Overhead                      0         0        N/A      -31         N/A      -26       N/A       -19

       Other Business                7         25       -70       -2         -25,7     1        4,3      -281

       Consolidated                1.198      891        34      211         17,7     161      18,0       31




Cementos Argos 2Q2012 Results – July 2012                                                                         19
Debt Profile / Cash Flow
 Debt Profile




Cementos Argos - Enero, 2010   20
Debt Profile at June 2012
     Short Term: US$ 320 million

                                                                                                                    Million US$
      140
      120
      100
       80
       60     121

       40                                           45
       20                                                                                                      36        33
                        15       15                 16                   20
        0                                    2                   8                  3        5        0
             jul-12   Aug-12   sep-12   oct-12    nov-12    Dec-12     Jan-13     feb-13   mar-13   Apr-13   may-13    jun-13
                                                         Bank Loans      Bonds

     Total Debt Profile US$ 1,774 million

      300                                                                                                           Million US$
      250                                                     16

      200
      150
              178
                                26          21               244
      100              125                                                                  196
                                                                                                     168                170
                                                   16                    16                                   129
       50                       108         107                                     8
              45        43                         64                    54        39
        0
             2012      2013    2014     2015      2016      2017        2018      2019     2020     2022     2024      2027
                                                         Bonds       Bank Loans


 Cementos Argos 2Q2012 Results – July 2012                                                                                        21
Debt Profile at June 2012 (cont’d)
  Short Term vs. Long Term                                                                                                 COP vs. USD


             18%
                                                                                                                                    23%
                                                                                     Long Term

                                                                                                                                                                COP
                                                                                     Short Term
                                                                                                                                                                USD


                                                          82%                                                                                             77%

  Consolidated Cost of Debt (%)                                                                                            Ratios


                                    7,3 7,4 7,6 7,8 7,9                                                                     Net Debt
    6,6 6,7 6,7 6,6 6,7 7,1 7,2 7,3                                                                                                              = 3.54
                                                                                                                            EBITDA + Dividends

    2,0 2,0 2,0 2,0 2,0 2,0 2,2 2,3 2,3 2,3 2,3 2,3 2,3                                                                     EBITDA
                                                                                                                                                 = 3.91
                                                                                                                            Financial Expense
                                                                                                         may-12
                      aug-11




                                                 nov-11




                                                                                                apr-11
    jun-11




                                        oct-11




                                                                            feb-12




                                                                                                                  jun-12
                               sep-11




                                                          dec-11

                                                                   jan-12




                                                                                       mar-12
             jul-11




                                                                                                                            Net Debt
                                                                                                                                                 = 51.2%
                                                                                                                            Equity
                                                    COP             USD


 Cementos Argos 2Q2012 Results – July 2012                                                                                                                            22
Cash Flow


 Cash Flow Dec. 2011 – Jun. 2012

                                                                                                                   Million US$

 750

                     +380


 600



                                 (134)
 450                                                                                       +260

                                                                                                                      345
                                            (134)
         280                                        (59)
 300                                                                                                     (70)



                                                             (125)
 150
                                                                            (53)




  0
        Cash at     EBITDA         WK       CAPEX   Taxes   Financial   Dividends, net   Other non-   Financing      Cash at
        Dec. 11                                             Expense                      operating    Operations     Jun. 12




Cementos Argos 2Q2012 Results – July 2012                                                                                      23
 Portfolio Cementos
Investment Portfolio Argos and Stock
  Performance



Cementos Argos - Enero, 2010           24
Investment Portfolio
                                               Price per Share                    Value             Value
Company                       % Stake
                                                    (COP)                     (COP$ million)*    (US$ million)*         1%
                                                                                                                                   Grupo Sura
Grupo Suramericana             6,0%                30.900                        870.863              488
                                                                                                                  38%
                                                                                                                                   Bancolombia
Bancolombia                    4,0%                26.980                        551.394              309
                                                                                                                             61%
Cartón Colombia                2,1%                 7.390                         17.063              10                           Cartón
                                                                                                                                   Colombia

Total                                                                           1.439.320             807




                                                            Dec-11

                                                                     Jan-12
                     Apr-11




                                                                                        apr-12
                                      Aug-11




* At June 30, 2012


 Cementos Argos 2Q2012 Results – July 2012                                                                                                      25
Contact Information




           www.argos.com.co/cemargos


Carlos Yusty                                   Ana María Poveda
Vicepresidente Financiero                                               IR
cyusty@argos.com.co                         Tel.: (574) 319.87.00 ext. 4309
                                                  apoveda@argos.com.co



Cementos Argos 2Q2012 Results – July 2012                              26

								
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