1Q18 Results Cementos Argos Argos present in 4G projects, Viaducto - PowerPoint PPT Presentation

1Q18 Results Cementos Argos Argos present in 4G projects, Viaducto del Gran Manglar, Colombia

DISCLAIMER DISCLAIMER This document contains forward-looking statements and information related to Cementos Argos S.A. and its subsidiaries (together referred to as “Argos”) that are based on the knowledge of current facts, expectations and projections, circumstances and assumptions of future events. Various factors may cause Argos’ actual future results, performance or accomplishments to differ from those expressed or assumed herein. If an unexpected situation presents itself or if any of the premises or of the company’s estimations turn out to be incorrect, future results may differ significantly from the ones that are mentioned herein. The forward-looking statements are made to date and Argos does not assume any obligation to update said statements in the future as a result of new information, future events or any other factors.

Argos One program, successfully launched Delivering outstanding client experiences To be fully deployed in 2018 % of transactions of cement and ready-mix done through digital platforms in Colombia 50.6% 32.5% 23.1% 10.4% January 2017 April 2018 Cement RMC jan-17 feb-17 mar-17 apr-17 may-17 jun-17 jul-17 aug-17 sep-17 oct-17 nov-17 dec-17 jan-18 feb-17 mar-17 apr-18 3

1 Consolidated Results Argos present in 4G projects

1Q18: BEST program efforts reflected on results 1Q Var 2017 2018 Key Figures Revenues COP Bn 2,077 1,907 -8.2% EBITDA* COP Bn 283 371 31.2% Adjusted EBITDA** COP Bn 294 300 2.0% EBITDA margin* % 13.6% 19.5% 583.8 bps Adjusted EBITDA margin** % 14.2% 15.7% 157.1 bps Net Income COP Bn -45.5 54.8 NA NA Net Margin % -2.2% 2.9% Sale of 3 inside the fence power plants in Colombia: USD 57M  COP 70 Bn non recurrent EBITDA Focus on efficiency through BEST: • Margin improvement across all regions  SG&A reduction: 5.5% consolidated, 19.2% in Colombia COP 55Bn net income benefited by the divestment in Colombia Integrated network of assets in the US Notes: *EBITDA 2017 has been restated excluding withholding tax 5 **Adjusted Ebitda excludes the sale of power generation plants in Colombia

Consolidated volume 1Q Cement (000 MT) 2017 2018 Var CCA CCA 30% 34% Colombia Total 3,842 3,686 -4.1% Colombia 35% 32% Colombia 1,357 1,166 -14.1% USA 1,341 1,250 -6.8% USA USA 35% 34% CCA 1,143 1,270 11.0% 1Q17 1Q18 1Q RMC (000m3) Var 2017 2018 Total 2,638 2,440 -7.5% Colombia Colombia 27% 30% Colombia 782 660 -15.6% USA - SE, CCA, 4% CCA, 5% USA - SE USA 1,737 1,665 -4.1% 43% 42% USA - SC USA - SC, USA - SE 1,115 1,057 -5.2% 24% 25% USA - SC 622 608 -2.2% CCA 119 115 -3.0% 1Q17 1Q18 *Definitions:  RMC: Ready-Mix Concrete  CCA: Caribbean and Central America Region 6  SE: South East Zone in USA  SC: South Central Zone in USA

2 USA Region 7 Falcons Stadium built with Argos, Atlanta, US.

USA: Ebitda growth despite harsh winter 1Q  Cement and ready mix volumes affected by a harsh Var 2017 2018 winter in the east coast and heavy rainfalls in Texas  Normalization signs for 2018: Volumes  +10% RMC volumes in South Central Area Cement 000 MT 1,341 1,250 -6.8% during April Savings RMC 000 m3 1,737 1,665 -4.1%  Double-digit growth in Houston during April USD 10M 1Q Best Program goal FY18 Var 2017 2018  Margin EBITDA improvement despite erratic Key Figures weather Revenues USD M 361 337 -6.6%  EBITDA margins per segment: 19.9% cement: EBITDA USD M 32.4 32.9 1.6% 3.4% RMC EBITDA margin % 9.0% 9.8% 79.2 bps 8 Martinsburg Plant, US Region

USA: residential market driving volume growth, tailwinds for infrastructure Total construction spending vs. Residential construction spending (% variation YoY) 30% +1.1% Existing 20% 7% 10% home sales MoM as of March 5% 0% -10% Housing +11% -20% starts YoY as of March -30% -40% New home +4.0% -50% sales MoM as of March Total Construction Spending Private Residential construction spending Improvement in environmental permitting processes Securing Florida’s Reduction of the environmental permitting 10 2 years Future infrastructure process for infrastructure projects USD 10.8Bn plan materialized in Process simplification: one lead federal 2018 - 2019 budget agency will be responsible for reviewing major allocation infrastructure projects 9 Source: Bloomberg, US Department of Transportation (www.fhwa.dot.gov), Securing Florida ´ s Future (http://fightingforfloridasfuturebudget.com/content/Current/rptMain.htm)

3 3 Colombia Region 10 Argos present in 4G projects: Pacífico II

Colombia: BEST, a reality in the results 1Q  Argos’ cement volumes -14.1% compared to - 5.4% of the industry. Effect of Var Easter holiday affects 1Q and benefits 2Q. 2017 2018  -15.6% Ready-mix volumes explained by the performance of regular housing Volumes segment, although was partially offset by civil works Cement 000 MT 1,357 1,166 -14.1%  +22% Dispatches for 4G projects vs. 1Q17 RMC 000 m3 782 660 -15.6% 1Q  +8.9% Adjusted Ebitda, excluding the sale of inside the fence power plants Var 2017 2018  -20% in SG&A excluding depreciations, results from materialization of BEST Key Figures  Margins per segment: Cement 19.9%; RMC 5.9% Revenues COP Bn 599 520 -13.1%  Alternative fuels: EBITDA COP Bn 82 173 110.6% Adjusted EBITDA* COP Bn 94 102 8.9%  In February we started using tires as alternative fuel in the Cartagena Plant EBITDA margin % 13.7% 33.3% 1,957.8  Received the environmental permit to dispose impregnated waste in the Adjusted EBITDA margin* % 15.7% 19.6% 397.3 bps Cartagena Plant Notes: *Adjusted Ebitda excludes the sale of sale of power generation plants in Colombia 11 Rioclaro Plant, Colombia Region

Colombia: positive outlook of the residential market and a strong backlog in 4G projects Change of trend in residential segment forecast a better second half for 2018 Recovery in units sold (YTD) Building permits by destination (Var. 12M) Mid-income housing 30% +6.4% 20% segment driven by 10% governmental subsidies -6.48% (from COP 105M – 262M) 0% -10% -8.44% +20% -20% Social housing in -11.64% -30% Bogotá suggests a ene-15 feb-15 mar-15 abr-15 may-15 jun-15 jul-15 ago-15 sep-15 oct-15 nov-15 dic-15 ene-16 feb-16 mar-16 abr-16 may-16 jun-16 jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17 nov-17 dic-17 ene-18 feb-18 change on trend Var 12M Social Var 12M Regular Var 12 M Other Destinations Pacífico II: 40% completion Viaducto el Gran Manglar, completely connected +22% Cement dispatches 4G vs 1Q17 12 Source: Galería inmobiliaria

4 Caribbean and Central America Region 13 Argos present in infrastructure projects in Panama: Centenario Bridge

CCA: Stable conditions benefit BEST program potential 1Q  +6% Cement volumes in local markets, driven by 2017 2018 Var stable volumes in Honduras, and a positive dynamic Volumes in Dominican Republic ( +9% ) and Haiti ( +24% ) Total Cement 000 MT 1,143 1,270 11.0%  +24 % clinker exports and trading Local markets 000 MT 838 889 6.0% Savings  Decrease in RMC volumes affected by Easter week Trading and Exports 000 MT 305 381 24.8% in Panamá USD 7M RMC 000 m3 119 115 -3.0% 1Q Best Program goal FY18 Var 2017 2018 Key Figures  Revenues and EBITDA , according to budget, in an Revenues USD M 144 148 2.5% stable pricing environment EBITDA USD M 48 50 3.6%  Margins per segment: 33.2% cement; 4.5% RMC EBITDA margin % 33.3% 33.6% 35.5 bps 14 Comayagua Plant, Honduras

CCA: Infrastructure projects strengthen Argos position in a region with positive outlook Honduras: GDP growth (YoY) Panamá: GDP growth (YoY) 9.5% 8.8% 6.8% 7.4% 5.3% 4.8% 5.6% 3.1% 2014 2015 2016 2017 2014 2015 2016 2017 +3.2% +8.3% Construction GDP 2017 (YoY) Construction GDP 2017 (YoY) Relevant infrastructure projects: Boosted by important infrastructure projects as 3rd bridge over the Canal, 3rd Metro Line, Corredor Vial de Occidente. Corredor de las Playas 15 Source: International Monetary Fund, Ministerio de Vivienda y Ordenamiento Territorial de Panamá

5 Balance Sheet 16 Enhanced concrete applied, Universidad EAFIT, Colombia

Improving debt profile as of March 31 st 2018 Net Debt / (EBITDA + Dividends) EBITDA / Financial expenses Leverage reflects the 6.0x 5.9x 6.5x acquisition of Martinsburg 5.0x 5.5x 4.6x 4.2x 4.4x 3.9x 4.37x 4.5x Ongoing divestment plan to 3.8x 3.8x 3.2x 3.8x 3.5x 3.5x 3.3x 3.3x reach a leverage ratio between 3.7x 1.9x 2.5x 3.0x 3.5x to 3.6x by YE18 1.5x 0.5x 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 Consolidated cost of debt Currency mix Total debt: USD 2,500M 10.4% 10.2% 9.6% 9.1% 9.0% 8.7% 8.4% 8.3% 8.2% 8.1% 8.0% 8.0% 8.0% ST 3.3% 3.1% 2.9% 3.0% 3.0% 3.0% 2.9% 3.0% 2.9% 2.9% 2.7% 2.7% 2.8% 34% COP USD 48% 52% LT mar-17 mar-17 may-17 jun-17 jul-17 aug-17 sep-17 oct-17 nov-17 dec-17 jan-18 feb-18 mar-18 66% COP USD 17 * FX Rate as of March 31 st , 2018: COP 2780.5 / USD Note: Since 2Q15, for Net debt to EBITDA + Dividends ratio, Net debt and EBITDA are calculated with the same FX closing rate