Earnings Release. August 9, El Muña overpass, Bogotá Girardot

Transcription

1 Earnings Release August 9, El Muña overpass, Bogotá Girardot

2 2018 2Q Investments Relevant Corporate Events: Minute on the initiation of construction of vía 40 express On June 20, 2018, VÍA 40 EXPRESS initiated works between the El Muña Viaduct in Sibaté and the La Despensa Bridge in Soacha. The works in this tranche include a two-level intersection at the intersection to Sibaté, approximately 1km of the third lane of the road in both directions, a pedestrian path; a bike path, pedestrian bridges, sidewalks, and the rehabilitation of the existing road in this Functional Unit (FU). El Muña overpass, Bogotá Girardot Tolemaida Bridge will be replaced by one with better specifications. The construction phase of this project will last approximately five (5) years, starting with FU 8 and will be developed through nine (9) FUs: Functional Units 2 to 7: These will incorporate the construction of third lanes; short tunnels: rehabilitation, operation and maintenance of the current Sumapaz Tunnel; nine (9) bridges and intersections throughout the road. Functional Unit 0: Operation and maintenance works of the existing corridor. Functional Unit 1: This includes rehabilitation, operation and maintenance works between the tranches from San Rafael to El Paso and from Giradot to the Sumapaz Tunnel, including the current Melgar alternate road. In this tranche, a single-level intersection will be built at Los Manuales, nearly four (4) kilometers of bike paths and three (3) vehicular bridges will be built, and the Functional Unit 8: This will include the construction of a vehicular bridge and the operation and maintenance of the road of the tranche between El Muña and Soacha, ending with the La Despensa pedestrian bridge in Soacha. Bogotá D.C Soacha FUNCTIONAL UNIT 8 Soacha El Muña overpass Sibaté El Muña - Soacha 9,86 Bogotá D.C Pedestrian bridge La Despensa (Soacha) km Silvania Extension to third lane Girardot Alto de Canecas Suárez 1 start Concession Nilo Ricaurte Variant Melgar Weighing machine El Salero Piscilago Melgar 2 Military Club Icononzo 8 end Concession Granada 6 Toll Chusacá Sibaté 5 Weighing machine Fusagasugá Variant Fusagasugá Fusagasugá 4 3 Toll Chinauta Our experience in construction of: ROADS AND BRIDGES 755 km Tunnel de Sumapaz Air Force Base Viaduct del Muña 7 Pandi TUNNELS: 162,13 km

3 Infrastructure Relevant Corporate Events: National Engineering Award, Agua dulce Boscoal Port National Engineering Award Winner 2018 Boscoal, Grains and Carbon Terminal Phase I. Buenaventura, Valle del Cauca. Description of the Project: We are proud to share the recognition made by the Board of Directors of the Colombian Society of Engineers, giving the Aguadulce consortium the National Award of Engineering 2018 for the Project "Boscoal Dry Bulk Terminal in the Aguadulce port in which Conconcreto has a participation of 35% and was finished in Design and construction of a 250 m long pier made up of two sections, the first one of 210 m x 32 m and the second one of 40 m x 40 m, for a total area of 8,320 m 2 with an access walkway of 178 m. The works included the construction of 6 hectares of patios for the bulk and coal terminal, earthworks and containment works, shallow foundations for 2 silos, road pavements and soil improvement.

4 Innovation Relevant Corporate Events: Productivity Measurement System We introduce a system that allows detecting the presence of workers in the different productive areas of construction projects. All of this through instrumentation technology and collection of information with imbedded systems (IoT) for productivity analysis in s. How does it work? Equipment Workers Receiver PC Network IoT Hub Database The system delivers information organized by: Name Labor Programmed work zone Real zone of permanence Hours of stay in work area Productivity Measurement System We have made measurements with managers, workers, Laborers. Number of visits on average per day (visits/day) Experience in Innovation: Innovations implemented at Patents 47 the service of the company 2 4 Granted Patents in process

5 Concessions Relevant Events: Concessions under construction and structuring: Road Vía 40 Express (Bogotá Girardot): Start of operations on December 1st, The construction of the project began in June 20, the works started by the first functional unit (UF8) Soacha-El Muña. The estimated time to complete the construction is 60 months. The financial closure and disbursement is in negotiation with potential lenders. Vía Pacífico (Buga - Buenaventura): start of operations on August 17, Under study the possibility of an early termination of the contract between the ANI and the Concessionaire under mutual agreement. Doble Calzada de Oriente (Palmas - Tablazo): Private initiative presented to the Antioquia Governor s Office. In June, the Antioquia Governor s office filed upon the Finance Ministry the project for its approval. Once the corresponding approvals are provided, the Government will initiate the bidding process. Energy Generation: PCH Patico: Currently in process of revision and signing of the contracts that are part of the Credit operation obtained. Port: Advances in complying with the precedent conditions of the Credit for the first disbursement. Darien International Port: Progress continues with conceptual engineering. With the results of the conceptual engineering, visits will be made to potential clients of the port. Concessions in Operation: Road Toll Cocorná Puerto Triunfo Guarne Palmas DEVIMED: Average Daily Traffic Total Operational Income EBITDA* Medellín Caño Alegre y malla vial de Oriente Starting date: June, CCFC: 1Q Accumulated Financial Results (COP millions) *Figures under IFRS *Figures under IFRS Finishing date: December, Average Daily Traffic 1Q Toll T2018 Corzo Río Bogotá Total Accumulated Financial Results (COP millions) Operational Income EBITDA* Starting Date: Bogotá Faca Los Alpes Finishing date: % Conconcreto Participation: 25% 1T2018 2Q Q % Conconcreto Participation: June, 1995 Marzo, % 2T T

6 Real-Estate Portfolio Relevant Events: Relevant events Industry 26% 1. It was performed an Equity contribution from Protección for COP MM in April. 2. A restitution of contributions was performed in June for COP MM. Said restitution didn t changed the investors participation in the Private Equity Fund. NOI 2Q2018 Offices 17% Hotels 5% Self-Storage 4% Internationals 2% 3. Grupo Argos contributed the Fund with COP MM in June, corresponding to the improvements of the Santillana Lot. Therefore, the participations at the closing of the quarter are: Conconcreto: 42,14% Grupo Argos: 33,48% Protección: 24,38% 4. A Lot was acquired for the development of the Multifamily Project in Coral Gables, Miami, Florida. Industry 47% GLA 2Q2018 Offices 16% Hotels 2% Self-Storage 3% $ mill Commerce 46% m 2 in operation Commerce 32% Participation in the Pactia PEF* (%) 24% 18% 34% 36% 42% 46% *Private Equity Fund jun-18 dic-17 Conconcreto Grupo Argos Protección

7 Real-Estate Portfolio: Relevant Events: Pactia PEF Capital Structure Equity Adjusted to Participation 2Q Var.% Assets % Liabilities % Equity % jun-18 Dec 2017 *Date of initiation of the fund Junuary20/2017* Pactia PEF Financial Results PA PACTIA 2Q2018 2Q2017 Var. % Gross Income % Operating Expenses (Opex) % Net Operating Income % Consolidated EBITDA % Occupation as of Jun-18 88% 93% 82% 64% 67% 89% Net Profit % Commerce Industry Offices Hotels Self- TOTAL* Storage * The total occupation weighted average does not include the hotels segment

8 Relevant Corporate Events: Backlog June 2018 The Company s backlog as of June 2018 is COP 2,3 billion, which amounts to 2.2 years of operation. 70% corresponds to infrastructure projects and 30% to building projects which includes housing projects. COP Thousands of millions jul-dec jun $3.313 $2.395 $2.333 $2.551 $2.000 $1.900 $1.900 $758 $542 $428 $308 $297 Closing Year Backlog Backlog Distribution 70 Infrastructure 30 Building (Includes ) NOTE: Includes Vía Pacífico Services: Relevant Events: Infrastructure: The execution of the first semester concentrated in projects such as: Ituango Hydroelectric Plant, La Línea Pilot Tunnel, Barranquilla port connectivity road, Ruote 40, carriage of materials in Cerromatoso, LATAM technical management, among others. Infrastructure COP $ Millions $ $ - + $ $ $ During the first semester, a change in scope of some contracts amounted COP $ mil Contracted Change in Scope Executed 2Q2018

9 services: Relevant Events: Building: During the first semester the execution concentrated in projects for Pactia such as: Corferias Hotel (Bogotá), El Ensueño Shopping Center (Bogotá), Cedi Colgate Palmira (Valle del Cauca) and others. The execution also concentrated in projects for third parties like the Medellín Chamber of Commerce, Admin. EPSA (Valle del Cauca), Avianca Tower Clle 26 (Bogotá), Nova second stage (Jumbo, Valle del Cauca), among others. Regarding the works contracted, stand out: Chimeneas Shopping Center for COP $ mil, Buró 25 Stage 3 for COP $ mil, Colgate Distribution Center in Palmira for COP $ mil, Buró Milla de Oro for COP $ mil, Corferias offices for COP $ mil, among others for COP $8.384 mil. $ Building (Includes ) COP $ Millions +$ $ $ $ : During the first semester the execution concentrated in projects such as: Zanetti and Mantia (Itagui, Antioquia), Caminos de la Primavera (Huila), Puerto Azul (Cundinamarca), Sunset Boulevard (Barranquilla), ILO, Marea II, Maui and Manhattan (Panama), among others Contracted Change in Scope Executed 2Q2018 During the first semester stands out the change in scope of some Building and contracts for COP $ mill. Engineering and Design: New designs which began to be executed: Greenwood, Mañanitas, Tocumen Haus, Royal Park (Panama), Argo Nunciatura (Costa Rica), Logika Via 40, Core Trade (Barranquilla), Cerro Claro Monserrate (Bello), Entrance Logika (Siberia), Redesign Gran Plaza del Sol Shopping Center (Soledad), Redesign Gran Plaza Ipiales Shopping Center (Ipiales), Redesign Gran Plaza San Antonio Shopping Center - (Pitalito), Redesign Gran Plaza Soacha Shopping Center (Soacha), Redesign Gran Plaza Florencia Shopping Center (Florencia), Monte Río Apartments (La Estrella), Countree Building (Medellín), Chimeneas Shopping Center (Itagüí), Buró 25 Tower 3 and Parking lots (Bogotá), Complimentary buildings Ruta 40, Design Box and Walls Ruta 40 - Bogotá (Girardot Road). $ Engineering and Design COP $ Millions +$ $ $ Contracted Executed 2Q2018

10 Relevant Events: Launched units for selling and estimated time to market ,86 At the closing of June 2018 there are: 12 1 Projects under Project on construction. pre-sales. 15,57 6 Terminated projects , Units for sale which are expected to be sold in average on a 17,4 month term counted as of to-date. LIH* Medium High Num. Units Time (months) * Low Income Concentrated in Bogotá, Medellín and Barranquilla During the 2nd quarter of 2018, 178 units were commercialized Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q017 1Q2018 2Q2018 Real Average 63% Pre-Sales 5% Cundinamarca 26% Antioquia 22% Huila 5% Terminated 32% Región Caribe 47% From 19 projects that compose the housing portfolio, 11 are under construction (63%), 8 are finished projects (Including Mantia, Itagüí) (32%) and 1 is on pre-sales (5%). From the 19 on-going housing projects, 9 are located in the Caribe region (47%), 5 in Cundinamarca (26%), 4 in Antioquia (21%) and 1 in Huila (5%).

11 Relevant Figures: Consolidated Income from Ordinary Activities Jun-2018 COP mill -20% Jun-2017 COP mill Investment Corporate Investment Corporate Eliminations (5.966) Eliminations (16.972) Revenues COP mill -29% Revenues COP mill Equipment Building Engineering and Design Infrastructure Equipment Building Engineering and Design Infrastructure Fund 905 Investment Revenues COP mill Subsidiaries % Fund 901 Investment Revenues COP mill Subsidiaries 114 Industrial CC Industrial CC Concessions Other Real Estate Assets Concessions Other Real Estate Assets

12 Relevant Figures: Jun-2018 COP mill Consolidated EBITDA 11% Jun-2017 COP mill Investment Investment Corporate (12.948) Corporate (11.524) EBITDA COP mill Equipment Building Fund 562 Infrastructure Engineering and Design (269) Investment EBITDA COP mill Industrial CC % -2% EBITDA COP mill Equipment Building (4.902) Fund 531 Engineering and Design 940 Investment EBITDA COP mill Infrastructure Industrial CC Concessions PACTIA Subsidiaries (7.781) Concessions PACTIA Subsidiaries (157)

13 Financial Results June 2018: Consolidated statement of results: The GROSS PROFIT of Semester I 2017 was impacted due to the change in the result of the Centro Comercial la Felicidad project. OTHER NON-RECURRING INCOME was registered associated to the liquidation of foreign exchange hedges and the profit from the sale of the Asdesillas lot. The decrease in OPERATING EXPENSES was 27%. Reduction in OTHER PROFITS affected by Pactia. The reduction in the Backlog in some of the companies has generated a reduction in their profits, which explains the variation in the EQUITY METHODS. Last year s foreign exchange hedge policy and the volatility of the exchange rate generated income for DIFFERENCE IN THE EXCHANGE RATE, which contrasts with the revaluation of Semester I The greater FINANCIAL REVENUES are related to the accrual of the interests of the subordinated debt, interest for loans for infrastructure projects and higher yields of the surplus cash of Consorcio Helios. The 10% reduction in FINANCIAL EXPENSES, due to a 110 bp decrease in the rate. The short-term renewal rate, while the re-profiling of the financial debt is concluded. Status in the Consolidated Financial Situation: Within the variations, noteworthy are the increase in CURRENT LIABILITY, which is explained by greater liabilities for current taxes, advances received and reclassifications. From the $ mill of FINANCIAL LIABILI- TIES, the debt associated to Consortia, Subsidiaries and Trusts amounting COP $ mill, is covered by each of them. The remaining COP $ mill is covered directly by the operation of the Company. For more information, Click here to consult the notes to the consolidated Financial Statements CONSOLIDATED STATEMENT OF RESULTS jun-18 jun-17 Var $ Var % COP Million Income from ordinary activities ( ) -20,2% Cost of sales ( ) ( ) ( ) - Gross Profit ,7% Gross Margin 14,5% 9,3% Other income (2.212) -11,7% Administration and sales expenses (15.255) (21.081) (5.825) -27,6% Employee benefit expenses (22.310) (30.104) (7.794) -25,9% Other expenses (2.969) (5.576) (2.606) -46,7% Other earnings (losses) (7.145) -21,4% Equity Method (2.396) -19,4% Operating Profit ,9% Operating Margin 17,1% 10,7% Exchange difference (3.623) (6.494) -226,2% Financial income (2.792) 32,2% Financial expenses (35.306) (39.250) ,0% Before Tax Profit ,4% Before Tax Margin 11,2% 5,9% Current tax expenses (7.648) (9.048) (1.400) -15,5% Adjustment for deferred taxes (9.715) (2.004) ,9% Minority interest (581) ,6% Net Profit ,1% Net Margin 7,3% 4,0% EBITDA ,5% EBITDA Margin 22,6% 16,4% CONSOLIDATED BALANCE SHEET COP Million jun-18 dec-17 Var $ Var % Current Assets (26.010) -1,9% Non-current Assets ,8% Total Assets (12.407) -0,4% Current Liabilities ,1% Non-current Liabilities (95.448) -10,4% Total Liabilities (39.588) -2,3% Total Equity ,0% FINANCIAL LIABILITIES (COP Million) jun-18 dec-17 Var $ Var % (18.573) -9% Investment % (10.470) -9% Corporate % TOTAL (15.388) -1,6%

14 Financial Liabilities Consolidated: Jun 18 COP mill -1,6% Dec 17 COP mill Corporate $ Investment $ $ $ Corporate 30% -9% Investment 0% -9% Corporate $ Investment $ $ $ STATEMENT OF RESULTS SEPARATED (Million COP) Financial Results June 2018 Separated: jun-18 jun-17 Var $ Var % Income from ordinary activities ( ) -23,6% Cost of sales ( ) ( ) ( ) -30,2% Gross Profit ,9% Gross Margin 16,1% 8,0% Other income (1.661) -10,1% Administration and sales expenses (11.618) (13.623) (2.004) -14,7% Employee benefit expenses (17.689) (24.688) (6.999) -28,3% Other expenses (2.119) (4.237) (2.118) -50,0% Other earnings (losses) (3.632) -22,4% Equity method from associated companies (7.145) -21,4% Operating Profit ,1% Operating Margin 21,9% 12,8% Exchange difference (3.597) (6.497) -224,0% Financial income (1.076) 13,1% Financial expenses (32.787) (37.879) ,4% Before Tax Profit ,2% Before Tax Margin 14,8% 7,4% Expense (Income) for taxes, continuing operations (14.365) (11.592) ,9% Net Profit ,9% Net Margin 10,9% 5,0% EBITDA ,0% EBITDA Margin 27,6% 18,2% SEPARATED BALANCE SHEET jun-18 dec-17 Var $ Var % (Million COP) Current Assets (13.804) -1,3% Non-current Assets ,2% Total Assets ,3% Current Liabilities ,8% Non-current Liabilities (76.725) -10,1% Total Liabilities (28.767) -2,0% Total Equity ,6% For more information, Click here to consult the notes to the separated Financial Statements