2016 DI DISCLAI CLAIMER This document contains forward-looking - PowerPoint PPT Presentation

Cementos Argos S.A Corporate presentation 2016

DI DISCLAI CLAIMER 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’ Innovation Center

Cementos Argos at A Glance Leading pure cement player in the United States, Colombia, Caribbean and Central America  Installed capacity:  Cement 24 M tons*  RMC 18 M m3  5-year CAGR (2010-2015) of 21% in revenues and 23% in EBITDA  Included in the Dow Jones Global and Emerging Markets Sustainability Index, for 3 consecutive years Key Figures (6M16 ) Revenues by Revenues by EBITDA by Geography Product Geography Others 0% USA 29% Colombia Colombia RMC 30% 48% 39% Cement USA 52% CCA CCA 50% 20% 32% COP4,402 M COP861 M (USD1,409 M) (USD276 M) 3 *Includes 2.2 M Tons of Martinsburg. Transaction subject to the approval of the FTC

Argos: Leading Growing Multinational Cement Company Focused on Value Creation 1 #1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas 2 Flexible Operations with Vertical Integration and Extensive Logistics Network 3 Operating in Countries with Significant Growth Potential 4 Strategic Investments Further Enhance Efficiency and Competitiveness 5 Track Record of Successfully Implementing Disciplined Growth Strategy 6 Healthy Financial Position and Flexibility to Pursue Growth 7 Focus on Innovation and Sustainability Cartagena Plant, Colombia 4

1 #1 or #2 Positions in Key Emerging and Developed Interconnected Markets in the Americas Mixer trucks in the US

#1 or #2 Positions in Key Emerging and Developed Interconnected Markets 1 in the Americas USA 50% of 6M16 revenues #2 RMC producer in the US  #4 cement producer in the US*   Capacity: 9.9 M tons cement and 13 M m 3 RMC  ~42% of Argos’ cement capacity  ~74% of Argos’ RMC capacity CCA 20% of 6M16 revenues  1 out of 2 producers  47% of seaborne trade  Capacity: 4.1 M tons cement and 0.9 M m 3 RMC ~18% of Argos’ cement capacity   ~5% of Argos’ RMC capacity Colombia 30% of 6M16 revenues  #1 player  Capacity: 9.5 M tons cement and 3.8 M m 3 RMC  ~40% of Argos’ cement capacity  ~22% of Argos’ RMC capacity Cement plants RMC areas Grinding facilities Port/Terminals Cementos Argos S.A. has a presence in Venezuela through its subsidiary Corporación de Cemento Andino C.A., which is currently a party to a legal proceeding regarding the expropriation by the Venezuelan government of its plant located in the state of Trujillo, Venezuela. Any compensation to which Cementos Argos S.A. or its subsidiary Compañía de Cemento Andino C.A. may be entitled to is subject to the decisions of the relevant courts in the Bolivarian Republic of Venezuela. Argos has filed a claim for its investment in that country. Argos maintains the claim 6 for its investment in that country. *Includes2.2 M Tonsof Martinsburg. Transaction subjectto the approval of the FTC

USA Regional Division Cement Plants RMC Areas Grinding Facilities Ports/Terminals Demand recovery driving operating leverage and EBITDA margin Newberry Plant, Florida normalization  Strategically located plants close to high growth and demand centers EBITDA Installed capacity Revenues 50% 29% 9.9 M tons*  Cement shipments up 9.4% nationwide in as of May 2016; Argos’ states presented Of 6M16 Of 6M16 13.0 M m an increase of 13.5% YTD 3  Vertically integrated operations Operating Leverage Amid Improving Environment  Comprehensive logistics network (sea, land and railway) enhance vertical integration  #2 RMC player country-wide (#1 or 2 in  Focus on innovation: sales of VASP +16% in most areas served) ‘15  #4 cement producer in the US* 7 *Includes2.2 M Tonsof Martinsburg. Transaction subjectto the approval of the FTC

Colombia Regional Division Strategically located plants with nationwide coverage offer a strong competitive advantage EBITDA Installed capacity Revenues 30% 39% 9.5 M tons Of 6M16 Of 6M16 Sogamoso Plant, Colombia 3.8 M m 3  Sole producer with nationwide network serving Best Positioned to Capture the Infrastructure and all high-growth demand centers Housing Growth  Vertically integrated operations, with ~80%  #1 cement and RMC player with energy requirements generated in-house  Tailor-made model for each customer segment: market shares of 46% and 44%, respectively (as of ‘15)  Retail: Brand recognition, differentiated service and extensive distribution network  Infrastructure and Industrial: Customized solutions, specialized technical assistance, lead time optimization, on-site labs and RMC mobile plants Cement Plants to serve remote areas RMC Areas  Ability to use low cost production and Grinding Facilities Ports/Terminals dedicated port facilities for exports  Improved competitive dynamics driven by FX depreciation  Focus on innovation: sales of VASP +14% in ‘15 8

Caribbean and Central America Regional Division  Operations concentrated in Honduras High long term growth prospects and strategic and Panama, with 45% and 52% market share (YE15) interconnection of all regions  Only cement producer in Haiti, Suriname and French Guiana; presence in EBITDA Installed capacity Revenues 20% Dominican Republic 32% 4.1 M tons  Highly efficient capital allocation through Of 6M16 Of 6M16 0.9 M m 3 scalable network  Profitable and Growing Interconnectivity Controls 47% of the cement and clinker seaborne trade market  1 of 2 leading cement producers  Logistics platform, ports and fleet of vessels provides unparalleled access to mainland and island markets  High levels of cement integration through own plants and logistic interconnectivity RMC plant in Panama Cement Plants RMC Areas Grinding Facilities Ports/Terminals 9

2 Flexible Operations with Vertical Integration and Extensive Logistics Network Newberry Plant, Florida, USA

Broad logistics and distribution network provides flexibility from strategically located assets … One Interconnected Region USA plants and logistics network provide additional flexibility Martinsburg  Efficient cement plants with access to rail and sea  Potential to supply Caribbean and Central Harleyville Roberta America via ports State of the art Cartagena plant, well- positioned and flexible to serve domestic and Newberry export markets  Efficient dry line, with cement capacity of 2.3 M MTPA  Low cost limestone reserves and dedicated port  Fully automated dispatch facility Well established  Favorable tax rates and tariff exemptions until distribution network 2028 32 14 Cartagena Ports / Terminals Cement Plants* Cement Plants 376 ~2,600 Ports/Terminals Mixers RMX Plants Currently supplied from Cartagena 69 9 Grinding Stations Potential supply Dispatch facilities and 11 warehouses *Includes 2.2 M Tons of Martinsburg. Transaction subject to the approval of the FTC

.. leveraging vertically integrated operations Limestone Strategic resource  ~25% of the production cost  ~80% of the energy in Colombia Energy is self generated  USA and Honduras ~20% of alternative fuels Geographical integration to supply Clinker our needs according  4th in installed capacity in the to our market size US*  Privileged location, distributed Cement throughout Colombia  Access to the largest market in Honduras Geographical Aggregates integration that guarantees market coverage  376 plants, 2,586 mixers, 18M m3 of installed capacity RMC  Access to infrastructure projects in the region Transport Competitive advantage in and markets with high logistics self-construction 12 *Includes2.2 M Tonsof Martinsburg. Transaction subjectto the approval of the FTC

3 Operating in Countries with Significant Growth Potential Mixer trucks in USA