Cementos+Argos+-+4Q09+Results+Presentation

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					Cementos Argos
4Q09 Results
What happened in 2009?
Last year was very dynamic…

              We started the commissioning process of our new line
              at our plant in Cartagena, in which we invested US$400
              million and shall produce 1,8 million tons

              We successfully issued US$500 million in commercial
              paper and bonds, materially enhancing our debt profile


               We divested some Coal Assets to VALE for US$373
               million

              We acquired Holcim’s cement assets in the Caribbean
              for US$157 million

              We launched a new Organizational Structure in order to
              face the challenge of an international company in
              permanent growth

              In order to diversify its portfolio, Inversiones Argos, the
              holding company, sold US$420 million in shares of
              Cementos Argos, corresponding to a 7,3% stake

              We were recognized as the company with the Best Client
              Service in Colombia and a Model of Company in Haiti.
              We also obtained the Green Star Certification for some
              of our ready mix plants in the US.


Cementos Argos - 4Q09 Results
Agenda

 1. 2009 Highlights

 2. Consolidated Results

          1.1 Colombia

          1.2 Estados Unidos

          1.3 El Caribe

 3. Debt Profile

 4. Non Core Assets

 5. Portafolio


Cementos Argos - 4Q09 Results
    Consolidated Results




Cementos Argos - 4Q09 Results
 Cementos Argos obtained consolidated operating revenue of COP$3.5 billion, showing
 a decrease of 9%, while costs and expenses decreased by 11% leading to an increase
 of 18% in operating profits.
 Consolidated Results 2008 vs. 2009

 Revenues                                      Costs and Expenses                       Operating Profit
 (Thousand Million COP$)                       (Thousand Million COP$)                  (Thousand Million COP$)



            3.805        -9%                                                                                          301
4.000                                                                                                      18%
                                    3.449
                                                         3.551     -11%                           254
              994                                                           3.149
3.000                                    758


              940                        884
2.000


              937                        853

1.000

              935                        955

   0
             2008                    2009

                    1Q   2Q    3Q   4Q


  Revenues decreased by 24% in the 4Q09 to     Costs and expenses decreased by 23% in   Operating profit decreased by 23% in the
  COP$758 from COP$994 thousand million        the 4Q09 to COP$713 from COP$927         4Q09 to COP$45 from COP$67 thousand
  in the 4Q08                                  thousand million in the 4Q08             million in the 4Q08




Cementos Argos - 4Q09 Results
EBITDA increased by 10% to COP$652 thousand million in 2009.
EBITDA margin rose 330 bps from 15,9% to 18,9%.

 Resultados Consolidados

 EBITDA 2008 vs 2009                      EBITDA Margin                          EBITDA Margin
 (Thousand Million COP$)                  2008 vs. 2009                          4Q08 vs. 4Q09




                                652
                     10%
            592
                                                            330
                                                            bps                                       341
                                                                                                      bps




  EBITDA decreased by 6% in the 4Q09 to   EBITDA Margin increased 330 bps from   EBITDA Margin increased 341 bps from
  COP$136 from COP$144 thousand million   15,6% in 2008 to 18,9% in 2009         14,5% in the 4Q08 to 17,9% in the 4Q09.
  in the 4Q08




Cementos Argos - 4Q09 Results
 Assets increased 22% in 2009 to COP$14,7 billion. Liabilities decreased by 11% to
 COP$4,9 billion and equity increased by 55% to COP$9,7 billion.

 Consolidated Results 2008 vs. 2009

 Assets                                         Liabilities                                   Equity
 (Billion COP$)                                 (Billion COP$)                                (Billion COP$)




                                 14.698                    5.490       -11%
                        22%                                                                                                    9.740
                                                                                4.870
              12.010
                                                                                                                     55%

                                                                                                            6.297




  Assets increased by 22% in the 4Q09 to        Liabilities decreased by 11% in the 4Q09 to   Equity increased by 55% in the 4Q09 to
  COP$14,7 billion from COP$12 billion in the   COP$4,9 billion from COP$5,5 billion in the   COP$9,7 billion from COP$6,3 billion in the
  4Q08                                          4Q08                                          4Q08




Cementos Argos - 4Q09 Results
    Colombia




Cementos Argos - 4Q09 Results
 Revenues in Colombia decreased by 1%, whereas EBITDA increased by 4% and
 EBITDA margin rose 226 bps to 27,7%.

 Colombia

 Revenues                                                            EBITDA
 (Thousand Million COP$)                                             (Thousand Million COP$)


                                                                                                   4%
                                                                                                              452
                                  -1%                                                   433
                      1.655                 1.637




  Revenues increased by 7% in the 4Q09 to COP$419 thousand million   EBITDA increased by 2% in the 4Q09 to COP$113 from COP$111
  from COP$393 thousand million in the 4Q08                          thousand million in the 4Q08




Cementos Argos - 4Q09 Results
 EBITDA margin rose 143 bps to 27,6% in 2009 from 26,2% in 2008. On a quarterly
 basis EBITDA margin decreased by 120 bps to 27,1%.
 Colombia

 EBITDA Margin                             EBITDA Margin
 2008 vs. 2009                             4Q08 vs. 4Q09


                                                               -120
                                                               bps
                                143
                                bps




Cementos Argos - 4Q09 Results
The pace of decline in cement eased up in the fourth quarter of 2009. Meanwhile
ready mix volume increased in that same quarter.

 Colombia

 Cement Volumes                                                       Ready Mix Volumes
 (Million Tons)                                                       (Thousand M3)


                       4.513      -12%

                                             3.976                                         1.599
                                                                                                       -15%
                                                                                                                 1.362




  Cement volumes decreased by 7% in the 4Q09 to 1 million tons from   Ready mix volume increased by 13% in the 4Q09 to 394 thousand M3
  1,1 million tons in the 4Q08                                        from 348 thousand M3 in the 4Q08




Cementos Argos - 4Q09 Results
What are we expecting for our operations in Colombia in 2010?


Positives:

              New production line at the Cartagena Plant



              Infrastructure spending



               Low interest rates


Challenges:

               Delays in infrastructure projects due to the
               reelection noise

               Commissioning of Cartagena Plant



Cementos Argos - 4Q09 Results
    United States




Cementos Argos - 4Q09 Results
 We had a tough quarter in terms of volume, revenues and EBITDA, mainly because of
 weather issues that affected the whole industry in the region

 Estados Unidos

 Ready Mix Volume                              Revenues                                   EBITDA
 (Million M3)                                  (US$ Million)                              (US$ Million)




            5,2                                                                                      40
                       -33%                              666                                                   -47%
                                                                    -34%

                                                                                                                         21
                                  3,5
                                                                              442




  Ready mix volume decreased by 41% in the     Revenues decreased by 44% in the 4Q09 to   EBITDA for the 4Q09 was negative US$3
  4Q09 to 0,7 million M3 from 1,2 million M3   US$82 million from US$148 million in the   million from US$5 million in the 4Q08
  in the 4Q08                                  4Q08



Cementos Argos - 4Q09 Results
What are we expecting for our operations in the US in 2010?


Positives:

              Stimulus Plan


              Slight pick up in demand in the 2H10


               Low interest rates


Challenges:
               Weather issues


              Negotiations with suppliers


               Uncertainty about the economy



Cementos Argos - 4Q09 Results
    The Caribbean




Cementos Argos - 4Q09 Results
 Revenues and EBITDA in the Caribbean increased by 56% and 91% respectively.
 Upon excluding the consolidation effects of the Dominican Republic and
 Caricement, the increases would have been of 21% and 67%.
 El Caribe

 Revenues 2008 vs. 2009                                         EBITDA 2008 vs. 2009
 (US$ Million)                                                  (US$ Million)




                                             284

                                                                                                              69

                                56%

                      181
                                                                                              91%


                                                                                      37




  Revenues increased by 46% in the 4Q09 to US$67 million from   EBITDA increased by 103% in the 4Q09 to US$22 million from US$11
  COP$46 million in the 4Q08                                    million in the 4Q08




Cementos Argos - 4Q09 Results
EBITDA margin increased 435 bps to 25% in 2009 from 20% in 2008. On a quarterly
basis EBITDA margin decreased by 915 bps to 32,4%.
 El Caribe

 EBITDA Margin                            EBITDA Margin
 2008 vs. 2009                            4Q08 vs. 4Q09




                                435
                                bps
                                                              915
                                                              bps




Cementos Argos - 4Q09 Results
What are we expecting for our operations in the Caribbean in 2010?


Positives:

              Panama Canal and Infrastructure spending


              Haiti’s reconstruction efforts


               New grinding capacity in Panama and Haiti


              Regional leadership consolidation


Challenges:


               Delays in infrastructure spending




Cementos Argos - 4Q09 Results
    Debt Profile




Cementos Argos - 4Q09 Results
 Debt Profile

 Short Term vs. Long Term       COP vs USD




 Cost of Consolidated Debt      COP vs. USD




Cementos Argos - 4Q09 Results
 Debt Profile

 Short Term- US$504mm




 Long Term - US$1,057mm




Cementos Argos - 4Q09 Results
    Cementos Argos’ Portfolio




Cementos Argos - 4Q09 Results
   Cementos Argos’ investment portfolio increased its value by 55% to COP$4,8 billion
   (US$2,4 billion) driven by the excellent performance of its main investments in the
   Colombian stock exchange.
                 Investment Portfolio
                                                                                      Market cap.   Market cap.
                       2% 1%
             11%                                                              Stake    US$mm         COP$mm       Share Price
                                                                              28.0%      1,612      3,220,331      24,540

                                                                              8.0%        473       944,029        23,140
         17%
                                        69%                                    5.7%       261        522,257       20,940

                                                                              3.0%        13         26,176        8,200
                                                                              3.9%         3         5,928          5.9
                                                                              2.5%         3         6,173          29.9
                    Total:
                 US$2,384mm
               COP$4,762,871mm                                                                                              137%

                                                                                                                            110%

                                                                                                                            75%

                                                                                                                            65%

                                                                                                                            61%

                                                                                                                            59%

                                                                                                                   IGBC2    53%

                                                                                                                            35%




Source: Cementos Argos, Bloomberg. Data as of Dec 31, 2009, Superfinanciera


  Cementos Argos - 4Q09 Results
 Market Summary

 Trading Volume (US$ Millon)                  Stock’s Price Performance vs. Industry
                                               180
                                                                                                                                                                               61%
                                                                                                                                                                               51%
                                               140                                                                                                                             35%
                                                                                                                                                                               29%
                                                                                                                                                                               28%
                                                                                                                                                                                9%
                                               100


                                                60


                                                20




                                                     Ene 09

                                                              Feb 09

                                                                       Mar 09




                                                                                          May 09

                                                                                                   Jun 09

                                                                                                            Jul 09




                                                                                                                                         Oct 09

                                                                                                                                                    Nov 09

                                                                                                                                                             Dic 09

                                                                                                                                                                      Ene 10
                                                                                                                                Sep 09
                                                                                Abr 09




                                                                                                                       Ago 09
                                                                                         Cemex                       Holcim                       Lafarge
                                                                                         Heidelberg                  Italcementi                  Argos


 Weight in the Colombian Stock Index (IGBC)   Shareholders Structure (Dec 09)




Cementos Argos - 4Q09 Results
Argos’ land in Baru is currently the prime tourism asset in the Caribbean,
whereas the land in Barranquilla is in the area of highest projected growth in
the northern coast of Colombia
 Real Estate Assets
              Baru


                                1.300 Ha
                                22 Km of beach front
                                Beaches, swamps and cliffs
                                Near from Cartagena which was declared a Historical and Cultural
                                Heritage of Humanity by the United Nations
                                High potential for tourism purposes
                                Appraisal of US$400 million aprox.


           Barranquilla

                                700 Ha
                                Area with the highest projected growth in Barranquilla and
                                Puerto Colombia.
                                Potencial development for:
                                   Housing for the high income
                                   Commercial
                                   Services
                                   Light Industry
                                   Appraisal of US$400 million aprox.


Cementos Argos - 4Q09 Results
    Inversiones Argos’ Portfolio




Cementos Argos - 4Q09 Results
    Inversiones Argos’ investment portfolio increased its value by 69% to COP$11,7 billion
    (US$5,9 billion) driven by the excellent performance of its main investments in the
    Colombian stock exchange.
                  Investment Portfolio

                     4%      4%                                                           Market cap.   Market cap.
              4%                                                                 Stake     US$mm         COP$mm       Share Price
         7%                                                                                             7,805,143      10,800
                                                                                  62.8%      3,908

   14%                                                                            43.9%       809       1,615,712      51,200
                                         67%                                      7,4%        426       850,450        24,540
                                                                                  4.2%        250       499,589        23,140
                                                                                  14.6%       232       462,464         9,165
                                                                                  4.7%        213       426,366        20,940
                    Total:
                 US$5,850mm                                                       0.8%         1         2,776          29.9
               COP$11,686,168mm                                                                                                 137%

                                                                                                                                110%

                                                                                                                                75%

                                                                                                                                65%

                                                                                                                                61%

                                                                                                                                59%

                                                                                                                       IGBC2    53%

                                                                                                                                35%




Source: Inversiones Argos, Bloomberg. Data as of Dec 31, 2009, Superfinanciera


  Cementos Argos - 4Q09 Results
www.argos.com.co

				
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