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Cementos+Argos+-+4Q2011+Results+presentation

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					CEMENTOS ARGOS
FY 2011 Results

February 23rd, 2012
DISCLAIMER
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 FY 2011 Results – February 2012                                                                                        2
Contents


    1. Highlights 2011

    2. Consolidated Results

           2.1 Colombia

           2.2 United States

           2.3 The Caribbean

    3. Debt Profile

    4. Investment Portfolio




Cementos Argos FY 2011 Results – February 2012   3
Highlights 2011
 Cementos Argos formally closed the acquisition of cement assets in the southeast US from Lafarge. These
 assets have been consolidating in our figures since October 2011.

 Cementos Argos’ and Inversiones Argos’ shareholders approved the spin-off of non core assets from
 CemArgos and contribution of these assets into InverArgos. CemArgos’ shareholders will receive 0,31
 preferred non-voting shares of InverArgos for every share they have of the cement company.

 The spin-off is currently being approved by Colombia’s Superintendency of Finance. We will be
 communicating, at the proper time, every step of this process

 In line with its innovation and R&D initiatives, CemArgos launched IDEAXION, its
 internal innovation system, in order to generate a creativity and innovation daily way-
 of-thinking among its employees

 Excellent operational performance in Colombia and the Caribbean, where the company achieved all-time
 high figures and volumes. In the US, the results were still affected by the challenging conditions, although
 there are interesting recovery perspectives

 Cementos Argos’ consolidated revenues for FY 2011 totaled COP$ 3,7 billion +21% (US$ 2,0 billion
 +24%); EBITDA of COP$ 682K million +26% (US$ 369 million +30%)




Cementos Argos FY 2011 Results – February 2012                                                             4
Consolidated Results
                                                 4Q                                        FY

                                                                      Var. (% )
 Thousand million COP$                   2011    2010   Var. (% )                  2011    2010    Var. (% )
                                                                    Q4 / Q3 2011
 Revenues                                1,111   785      42            21         3,669   3,023     21

 Costs & SG&A                            1,013   740      37            25         3,321   2,804     18
 Operating Profit Before US
                                          98      45     121            -12        347     219       59
 Impairment
 Operating Profit After US
                                          90      10     766            97         273     130      109
 Impairment
 EBITDA                                   197    124      59             4         682     539       26

  EBITDA Margin (%)                      17.7    15.8                              18.6    17.8


  Million US$

  Revenues                                578     419     38             13        1,983   1,594     24

  Costs & SG&A                            527     396     33             33        1,794   1,479     21
  Operating Profit Before US
                                           51     23      119            -18        189     115      65
  Impairment
  Operating Profit After US
                                           47      6      688            79         149     67       122
  Impairment
  EBITDA                                  102     67      54             -3         369     284      30




Cementos Argos FY 2011 Results – February 2012                                                                 5
Consolidated Balance Sheet
                                            Balance Sheet at December 2011


                                                                             Activo

                  18.0
                                       Minority     0.1
                  16.0                 Interest

                  14.0               Liabilities    5.1
                  12.0
   COP$ billion




                  10.0

                   8.0   16.8
                                                                             Pasivos
                   6.0            Shareholders’
                                                   11.6
                                        Equity
                   4.0

                   2.0

                   0.0
                         Assets                Liab. & Equity




                                                                                       * Include appraisals


Cementos Argos FY 2011 Results – February 2012                                                         6
Colombia Regional Division
 Colombia




Cementos Argos - Enero, 2010   7
Colombia Regional Division


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

                           +24%                             +24%




                           +30%                             +39%




                           +27%                             +32%
                                                                             2011: 31.2%



                           +21%                              +7%



                           +16%                             +16%
                                                                             2010: 31.2%




Cementos Argos FY 2011 Results – February 2012                                                 8
Colombia Regional Division
Cement and Ready-Mix

                             Cement                            Ready-mix concrete
                                                    Tons 000                               m3 000
                                             +19%                                   +35%




                                             +15%                                   +18%




                                             +19%                                   +31%




                                             +15%                                   +51%



                                             +27%                                   +48%




Cementos Argos FY 2011 Results – February 2012                                                      9
United States Regional Division
 United States




Cementos Argos - Enero, 2010      10
United States Regional Division

                 Revenues                                               EBITDA
                                 Million US$                                     Million US$

                               +16%


                                                 Includes revenues of
                                                 US$ 64 million from
                               +75%              the assets acquired
                                                 in the southeast
                                                 from Lafarge




                               +10%
                                                                                               Includes US$ 11 millon of
                                                                                               non-recurrent and
                                                                                               extraorninary operating
                                                                                               expense related to the
                                -9%
                                                                                               acquisition of assets from
                                                                                               Lafarge. These assets
                                                                                               generated US$ 0 EBITDA in
                                                                                               4Q2011
                                -6%




Cementos Argos FY 2011 Results – February 2012                                                                   11
Regional Estados Unidos

                          Cement                          Ready-mix concrete
                                            Ton 000                                    m3 000

                                                                                +10%




                                        +25%                                    +31%




                                                                                +13%




                                                                                -7%



                                                                                +3%




                      Corresponds to the assets       RMC volume coming for the acquired assets
                      acquired in the southeast         in 4Q2011: 231K m3 ( -7% vs. 4Q2010)


Cementos Argos FY 2011 Results – February 2012                                                    12
Caribbean Regional Division
 The Caribbean




Cementos Argos - Enero, 2010   13
Caribbean Regional Division


            Revenues                             EBITDA                  EBITDA Margin (%)
                            Million US$                    Million US$

                                                          +70%
                          +32%



                                                          +152%
                          +21%



                          +24%                            +24%
                                                                           2011: 24,8%


                          +40%                            +83%




                          +44%                            +65%
                                                                           2010: 19,2%




Cementos Argos FY 2011 Results – February 2012                                               14
Caribbean Regional Division
Cement and Ready-Mix

                                    Cement                     Ready-mix concrete*
                                                    Tons 000                                m3 000

                                                                                 +27%
                                             +20%



                                                                                     +50%
                                             +4%



                                             +17%                                    +43%




                                             +37%                                    +23%



                                             +24%
                                                                                     0%




* Operations from Concreto Panamá


Cementos Argos FY 2011 Results – February 2012                                                       15
Caribbean Regional Division
GDP growth perspectives
          GDP annual var. (%) Panamá                          GDP annual var. (%) Dominican Republic

                       12.1                                               10.7
                                                                    9.3
                              10.1                                               8.5
                                                                                                   7.8
                 8.5
  7.5    7.2                               7.5    7.4   7.2
                                                                                       5.3                      5.5
                                                                                                         4.5
                                                                                             3.5
                                     3.2
                                                              1.3


  04     05      06    07     08     09    10     11E   12E   04    05    06     07    08    09    10    11E    12E



               GDP annual var. (%) Haiti

                                                        7.5
                                                  6.1

                       3.3           2.9
         1.8     2.2
                              0.8


  04     05      06    07     08     09    10     11E   12E

  -3.5
                                           -5.4
                                                                                                         Source: IMF – 2011


Cementos Argos FY 2011 Results – February 2012                                                                         16
Volume Summary by Regional Division
                                                           Cement

            Ton 000                                                                           + 356
                                                   + 265                + 271                                 8,631
                                + 793
            6,947




                                                                                                              +24% (proforma)
                               +19%               +23%                  +17%                                  +19% (like-for-like)

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


                                                  Ready-mix concrete
             m3 000
                                                                        + 279                  + 73           7,038
                                + 675              + 97

            5,913


                                                                                                              +19% (proforma)
                                                                  +29% (proforma)
                                                                                                              +15% (like-for-like)
                               +35%               +27%            +5% (like-for-like)         +3%

             2010             Colombia           Caribbean        USA - Southeast       USA - South Central    2011



Cementos Argos FY 2011 Results – February 2012                                                                                17
Summary by Regional Division / Other Businesses
                                                                              Full Year

                                                   Revenues                                     EBITDA

                                           2011      2010     Var (%)   2011         Mgn (%)     2010    Mgn (%)   Var (%)
          COP$ thousand million

          Colombia                         1,914    1,548       24      598               31     483       31        24

          United States                    818       724        13      -52               -6      -9       -1       N/A

          The Caribbean                    779       609        28      194               25     117       19        65

          Sub-total                        3,511    2,881       22      739               21     591       21        25

          Overhead                          0         0        N/A      -103              N/A    -89       N/A       16

          Other Businesses                 158       142        11      46                29     37        26        24


          Consolidated                     3,669    3,023       21      682               19     539       18        26

          US$ million

          Colombia                         1,036     816        27      323               31     255       31        27

          United States                    441       382        16      -27               -6      -5       -1       N/A

          The Caribbean                    422       321        32      105               25     62        19        70

          Overhead & Other Business, Net    84        75        12      -32               -38    -28       -37      -15

          Consolidated                     1,983    1,594       24      369               19     284       18        30




Cementos Argos FY 2011 Results – February 2012                                                                               18
Debt Profile / Cash Flow
 Debt Profile




Cementos Argos - Enero, 2010   19
Debt Profile at December 2011
    Short Term: US$ 816 million

     250                                                                                                                               US$ million

     200

     150                                    74
                      33
     100
                                                                                 158
      50             102      110       119
             68                                                     74                                                          41
       0                                                3
                                                        0                                       6
                                                                                                0                              15
           jan-12   feb-12   mar-12    apr-12     may-12          jun-12        jul-12        aug-12       sep-12    oct-12   nov-12     dec-12
                                             Commercial Paper              Bank Loans               Bonds

    Long Term: US$ 1,711 million (includes short term)

     900
     750     102

     600
     450
             598
     300
     150                      26       21         16         256
                                                                           16             8          180
             115     71                           59                                                                                       118
       0                      42       41                     3                          36
            2012    2013     2014     2015       2016        2017        2018          2019         2020      2021     2022     2023      2024
                                             Bonds          Bank Loans           Commercial Paper


Cementos Argos FY 2011 Results – February 2012                                                                                                       20
Debt Profile at December 2011 (cont’d)
  Short Term vs. Long Term                                                                                              COP vs. USD




  Consolidated Cost of Debt (%)                                                                                         Consolidated Ratios


   6.6 6.7                                                                                            7.1 7.2             Net Debt
                     6.1 6.4 6.4                6.5 6.6 6.7                6.7 6.6 6.7
                                                                                                                                               = 4,16
                                                                                                                          EBITDA + Dividends

   2.1 2.0           1.9 2.0 2.0                2.0 2.0 2.0                2.0 2.0 2.0                2.0 2.2             EBITDA
                                                                                                                                               = 3.69
                                                                                                                          Financial Expense
                                       apr-11

                                                may-11




                                                                           aug-11




                                                                                                      nov-11
   dec-10

            Jan-11

                     feb-11




                                                         jun-11




                                                                                    sep-11

                                                                                             oct-11




                                                                                                               dec-11
                              mar-11




                                                                  jul-11




                                                                                                                          Net Debt
                                                                                                                                               = 26.9%
                                                                                                                          Equity
                                                  COP              USD


 Cementos Argos FY 2011 Results – February 2012                                                                                                          21
Cash Flow


 Cash flow 2011

                                                 US$ million




Cementos Argos FY 2011 Results – February 2012           22
 Portfolio Cementos
Investment Portfolio Argos and Stock
  Performance



Cementos Argos - Enero, 2010           23
Investment Portfolio
                                     Price per Share       Value                                  Value
Company                    % Stake
                                          (COP)        (COP$ million)*                         (US$ million)*


Grupo Suramericana         20.7%         32,000           3,109,877                                            1,601

Bancolombia                 7.8%         28,480           1,136,834                                             585

Grupo Nutresa               5.4%         21,700           541,212                                               279

Cartón Colombia             2.1%          8,020            18,518                                               10


Total                                                    4,806,441                                             2,474


                                                          170

                                                          150

                                                          130

                                                          110

                                                           90

                                                           70
                                                                         feb-10




                                                                                                                jun-10




                                                                                                                                                    oct-10


                                                                                                                                                                       dic-10


                                                                                                                                                                                         feb-11




                                                                                                                                                                                                                              jun-11




                                                                                                                                                                                                                                                                  oct-11


                                                                                                                                                                                                                                                                                     dic-11
                                                                ene-10


                                                                                  mar-10
                                                                                             abr-10




                                                                                                                                  ago-10
                                                                                                                                           sep-10


                                                                                                                                                             nov-10


                                                                                                                                                                                ene-11


                                                                                                                                                                                                  mar-11
                                                                                                                                                                                                            abr-11




                                                                                                                                                                                                                                                ago-11
                                                                                                                                                                                                                                                         sep-11


                                                                                                                                                                                                                                                                           nov-11
                                                                                                      may-10




                                                                                                                                                                                                                     may-11
                                                                                                                         jul-10




                                                                                                                                                                                                                                       jul-11
                                                                                                                                  aug-10




                                                                                                                                                                                                                                                aug-11
                                                                Jan-10




                                                                                                                                                                      dec-10




                                                                                                                                                                                                                                                                                    dec-11
                                                                                            apr-10




                                                                                                                                                                                                           apr-11
                                                                                                                                                                                jan-11
                                                                                           B/LOMBIA                                                 SURA                                           NUTRESA                                                   IGBC
* At December 31st, 2011


 Cementos Argos FY 2011 Results – February 2012                                                                                                                                                                                                                                     24
Outlook 2012


                                                                                             Cement
                                                       Expected recovery in housing and      Price per ton.: +3% - +5%
                                                       commercial                            Volume: +3% - +5%
                                                       Conservative projections on           RMC
                                                       infraestructure spending              Price per m3: +3% - +5%
                                                                                             Volume: +3% - +5%




                                                                                          Panama keeps on track in multiple
                                                                                          infrastructure projects
  Positive outlook in infrastrusture, housing and                                         Better tourism perspectives in the DR
  commercial                                                                              Expected improvement in institutions in
  Logistic challenges persist throughout the country                                      Haiti - Reconstruction


 Cement
                                                                                              Prices per ton: Stable
 Price per ton.: +6% - +8%
 Volume: +5% - +7%
                                                                                              Cement Volume
 RMC
                                                                                              Panama: +7% - +9%
 Price per m3: +6% - +8%
                                                                                              DR and Haiti: +5% - +7%
 Volume: +7% - +10%



Cementos Argos FY 2011 Results – February 2012                                                                              25
Contact Information




            www.argos.com.co/cemargos


Ricardo Sierra                                     Tomás Uribe
CFO                                                                IR
rsierra@argos.com.co                             Tel.: (574) 319.87.12
                                                 turibe@argos.com.co



Cementos Argos FY 2011 Results – February 2012                    26

				
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