Report of Results 3 - conconcreto.com€¦ · Allegro, Manhattan (Panam), and ILO. Engineering and Design For the close of 3T2019, Engineering and Design had a Backlog of COP 16.210

3Report of

Results

2019

November 15, 2019 Buró 4.0 Medellín, Antioquia

Relevant Events / Construction Services / Investments / Housing / Financial results

* illustrative image

2019 3Q

Relevant eventsInnovation

On September 2, the preliminary publication of the summons for the measurement and recogni-tion of Conciencias research groups was carried out. The Innovation Conconcreto research group was recognized for being classified in Category C. The final publication of results will be held on December 6, 2019.

A total of 5,727 research groups were recognized in the country, most of which belong to universi-ties and Research Centers. For the recognition by Colciencias, several criteria were evaluated such as: technological products, intellectual property, developed projects, publications, among others. Once the recognition is formalized, Constructora Conconcreto may participate in innovation promotion mechanisms and summons, such as

tax benefits for innovation, and can only be accessed if a research group participates and which – until now – required the accompaniment of other actors in the ecosystem.

Innovation:

IDD: consolidando alianza directa con Autodesk

We continue to consolidate our direct partnership with Autodesk, this will allow us to leverage our national and international strategy as we are convinced of the value of BIM as a factor in success for our clients' projects and strengthening the capabilities and skills of our work teams to be more efficient.

At IDD we are technology, digitization and innovation in the construction sector.

We are the first company in Latin America making this direct partnership with Autodesk.

2019 3Q


Hechos relevantes:Inversiones

The IR Committee of the Colombian Stock Exchange (Bolsa de Valores de Colombia, BVC) awarded the IR Issuer Recognition Award for one more year to Constructora Conconcreto, recognizing its voluntary adoption of best practices in information disclosure and investor relations.

Ir issuer recognition

Through Resolution 51905 of 2019, the Superintendent of Industry and Commerce resolved the appeals filed against Resolution 27305 of the same year, confirming the sanction imposed on July 10, 2019, to Constructora Conconcreto S.A. worth 26,085 current legal minimum monthly wages. For the Superintendency, the Company would have breached the instructions of said entity during the preliminary inquiries that were advanced due to alleged anti-competitive practices within the selection process that led to the awarding of the Bogotá – Girardot Third Lane. Not being in accordance with the decision contained in the Resolution in question, the Company will bring the relevant legal actions before the courts.

Confirmation of the sic fine

To these 32 issuers, which have made a commitment to the Stock Market, we have awarded them with the IR Issuer Recognition Award for the 2019 – 2020 period.

2019 3Q


Construction Services:

NOTES: Information Consolidated with Conconcreto Internacional. This does not include emergency/contingency works in Ituango

Backlog – september 2019The Company’s Backlog as of september 2019 was COP 1.426 billion, corresponding to around 1.4 years of operation. The Backlog is divided into 84% corresponding to Infrastructure projects and 16% corresponding to Building, including Housing projects.

Construction Services

Infrastructure:

At the close of 3T2019, Infrastruc-ture had a Backlog of COP 1,200.160 million, primarily concen-trated in the Ruta 40, Ruta del Sol, Hidroeléctrica Ituango, Patios Tunal Transmilenio and Balance Llano-grande projects.

The change in the scope corres-ponds principally to the elimination of PCH Patico.

The execution of the period was concentrated in Ruta 40, Ruta del Sol, Hidroeléctrica Ituango and Balance La Línea.

$1.418.679

$1.200.160

-$49.908$55.174 -$323.601

2018 Contracted Changeof Scope

Executed To Sep-19

InfrastructureCOP Millions

Backlog at the close of the year Distribution of the Backlog

2015 2016 3Q2019 Oct-Dec 2019 2020 2021 202220182017

$2.551

$3.134 $2.395

$1.896

$1.426

$245 $428$194 $166

2023

$157

2024

$157

2025

$79

Infrastructure%84

%16 Building (including housing)

CO

P Th

ousa

nds

of M

illio

ns

2019 3Q

Construction Services:

Construction:

At the close of 3T2019, Construction has a Backlog of COP 225.915 million, concentrated in projects, such as Buró 25 Stage 3, Homecenter, Ciudad Educadora Espíritu Santo and the Colgate Distribution Center (CEDI)

The change in scope is principally explaied by the exit of the Chimeneas Shopping Center, for a value of COP 106.393 million.

As for the execution during the 3T2019, noteworthy are the works: Buró 25 Stage 3, the Colgate Distribution Center (CEDI), the Corferias Offices, the HomeCenter project, Zanetti, Sunset Boulevard, Montebianco, Allegro, Manhattan (Panam), and ILO.

Engineering and Design

For the close of 3T2019, Engineering and Design had a Backlog of COP 16.210 mill, concentrated in projects, such as Buró 25 Management Stage Tower 3, HomeCenter Management Stage, Buró Milla de Oro Management Stage, Contree Housing, and Equa.

Contracts during the period amounted to COP 10.737 million, primarily in HomeCenter Management Stage, Lógika Industrial Park Management Stage and PDC Canopy Plan Design.

The change of scope is primarily explained by the reduction in Gran Plaza El Ensueño Shopping Center, Buró 25, and the increase in Hilton Corferias

As for the executions during 3Q2019, noteworthy are projects such as the furnishings of Hotel Hilton Corferias I and II, the Avianca Designs, Liceo Francés, the Design of Complementary Buildings, Ruta 40 and Equa.

These businesses and contracta are not incorporated into the Company’s total Backlog.


$477.155 $143.622

$225.915

-$106.611 -$288.251


Executed To Sep-19

Construction(Including Housing)

COP Millions

$29.933 $10.737

$16.210

-$5.081-$19.379


Executed To Sep-19

Engineering and DesignCOP Millions

Concessions

Concessions in Constructionand Structuring:

Concesiones en Operación:

Concessions in Constructionand Structuring:

Viales

Vía 40 Express (Bogotá – Girardot): Beginning of Operations: December 1, 2016

On July 12, V40 signed the Certification of Completion with the ANI for the first Functional Unit (FU) of the Project (soacha – Sibaté), which allowed the Concessionaire to receive – in the month of September – the remuneration for COP 13 thousand million for the satisfactory delivery of this work. The Certificate of Termination allows the Concessionaire to obtain an additional 2.4% of the monthly collection, reaching up to 34.54%.

Vía Pacífico (Buga - Buenaventura): Beginning of Operations: August 17, 2016

On March 28, the reversion to ANI of the concession’s infrastructure and reversible assets was carried out.

Currently, the concession contract is in the Liquidation State.

Doble Calzada Oriente (Palmas - Tablazo): A private initiative presented to the Office of the Governor of Antioquia

On September 30, the Project Originators accepted the conditions of project’s viability proposed by the Government, once a negotiation process of the conditions previously submitted was completed. With this, the Feasibility Agreement of the Initiative between the Granting Entity and the Originator is created. Therefore, the Government of Antioquia began the invitation process for interested third parties to show interest in the process. If there are interested third parties, a shortened selection process for a lesser amount will begin; otherwise, the Government may award the Originator directly.

Concesión Vía 40 Express

2019 3Q


Tráfico promedio diario:

Peaje

Chusacá

Chinauta

Total

3T20192018

25.31425.971

20.17420.829

25.31425.971

1T2019

25.774

20.578

25.774

2T2019

26.038

20.772

26.038

2T2019 3T2019

Resultados financieros acumulados (COP millones)

Ingresosoperacionales

EBITDA*

31.810 49.427

33.513 53.073

2018

62.407

6.116

1T2019

15.658

16.878

Average Daily Traffic

Toll station

Cocorná

Puerto Triunfo

Guarne

Palmas

Total

2Q2019 3Q20183Q2018

NOTA: Beginning on September 1, 2018, the Corcorná and Puerto Triunfo Toll Stations were phased out from the concession in function of the conciliatory agreement signed with the ANI.

0 04.474

0 03.721

22.559 21.85120.797

10.264 10.21010.085

32.823 32.06139.077

2018¹

0

0

21.054

10.134

31.189

1Q2019

0

0

21.346

9.893

31.239

2Q2019 3Q20193TQ2018

Accumulated Financial Results (millions of pesos)

Operatingincome

EBITDA*

68.056 113.42397.712

33.890 78.94049.699

2018

151.579

75.345

1Q2019

33.396

17.239

DEVIMED:

Medellín – Caño Alegre and the Oriente Road Network

June, 1996

InitiationDate:

Ending Date:

December, 2026

% of Conconcreto’s Stake:

25%

Roads

2019 3Q


Real-estate portfolio

Hechos más relevantesPACTIA has been focused on:

The development of the investment plan that contemplates the start of operations of three new assets in the lines of hotels, offices and industry.

Promote innovation in its management

Continue betting on initiatives that allow it to maintain sustainable business growth, the technology sectors, BPOs, call centers and coworkings are visualized as growth opportunities.

In July 2019, Grupo Argos made a contribution for COP 176.487 million, resources that were used for the amortization of the debt.

NOI 3T2019

$140.795 mill30,7%

4,5%

23,5%

3,5%

37,8%

* 1,257 rooms in operation, not adjusted to the Stake

Buró 25 - Torre 3, Bogotá - Cundinamarca

GLA 3Q2019*

924.930 m2 in Operation

28,5%

48,3%

16,9%3,4%

3,0%

Asset Valueby state

Project

10%

Stabilized

48%

Lot

5%

To stabilize

37%

AUMCOP 3.92 Billions

Commerce

Commerce

Industry

Industry

Offices

Offices

HotelsHotels

Self-Storage

Self-Storage

2019 3Q


Real-estate portfolio

Accumulated Stake (%)in the PACTIA Trust

Ocupation 3Q2019*

* The weignted total occupancy does not include the hotel line

Gran Plaza Bosa, Bogotá - Cundinamarca

93,07% 93,29% 77,43%

56,07%71,65%

87,87%*

Commerce Offices Hotels TOTAL*Industry Self-Storage

40,40%

Participationdecember 2018

Participationtoseptember 2019

Conconcreto

32,10%Grupo Argos

27,50%Protección

25,60%Protección

37,20%Grupo Argos

37,20%Conconcreto

838.341 867.604 37,20% 37,20%

50%

50%Manager

Fondo de Capital Privado

26,60%

2019 3Q


Housing

Relevant Events:

At the end of September 2019, there were 9 projects under construction, concentrated in the cities of Bogotá, Medellín, Neiva and Barranquilla. There are 128 VIS housing units that are expected to be sold on average over a period of seven (13) months; 516 middle-class units that are expected to be sold on average over a period of 19 months; and 61 upper-class units that are expected to be sold on average over a period of 29 months from the date.

Projects2210 9 3

Launched units

Units Sold by Quarter

165

0

50

100

150

200

3Q2018

144 150

4Q 2018 1Q2019

146

2Q 2019

141149

3Q 2019

Real Average

128

516

61

19 29

13

Num. Units Time (months)LIH* Medium High

Finished construction Pre-sales

2019 3Q


STATEMENT OF RESULTS

Variation of the Net Profit 2019 vs 2018 COP 22.551 million (% Var. 45)

The variation in the Net Profit is primarily due to:

A lower volume of Income from the Construction segment and the Housing segment.

Lower Gross Profit due to the lower volume of Income and project margins, largely offset by the retroactive profits of the Ituango project and the registration of the CCFC dividends as Operating Income.

A lower contribution from the PACTIC PCF in yields and valuations.

A lower contribution in Equity Methods, primarily atributable to the loss in Consalfa.

Higher Other Income for the sale of CCFC and the Ituango indemnification.

Greater Income from subordinated debets of investment projects.

STATEMENT OF THE FINANCIAL SITUATION

Asset Variation 2019 vs 2018 (COP 136.943) million ( Var. -4.4%)

Liability Variation 2019 vs 2018 (COP 15.120) million ( Var. -13.3%)

Equity Variation 2019 vs 2018 COP 78.178 million (Var. 5.3%)

The principal variations are:

A decrease in Accounts Receivable for receivables from debtors and a decrease of advances paid.

A decrease in the Bank Balance applied to an increa-

se in investments and loans to associates. A decrease in the Bank Balance applied to a decrea-

se in Financial Indebtedness.

Positive results of the period.

Financial results 2019:

CONSOLIDATED STATEMENT OF RESULTS BY FUNCTIONaccumulated as of September 2019 and 2018(In COP thousands)

sept. 2019 sept. 2018 var.

Income from Ordinary Ac�vi�es 659.164 703.532 -6%Sales Costs -564.703 -598.907 -6%Gross Profit 94.460 104.625 -10%Gross Margin 13,4% 14,9% -10%Other Income 34.305 19.349 77%Administra�on and Sales Expenses -26.729 -24.420 9%Employee-Benefit Expenses -30.693 -34.174 -10%Other Expenses -2.872 -4.562 -37%

Profit for Equity Method, Net 8.226 16.979 -52%

Other Earnings (Losses) 29.267 33.948 -14%Operating Profit 105.964 111.745 -5%Operating Margin 15,1% 15,9% -5%Profits Derived from the Monetary Posi�on, Net 8 -2.101 -100%

Financial Income 40.258 18.470 118%Financial Costs -53.759 -53.217 1%Before-Tax Profit 92.471 74.897 23%Before-Tax Margin 13,1% 10,6% 23%Tax Expenses (Income) -18.299 -23.756 -23%Minority Interest -1.353 -872 55%Profit of the Period 72.819 50.268 45%Net Margin 10,4% 7,1% 45%

EBITDA 135.507 146.790 -8%EBITDA Margin 19,3% 12,5% 54%

CONSOLIDATED STATEMENTS OF THE FINANCIAL SITUATION (COP million)

sept. 2019 dic. 2018 Variation

Current Assets 1.258.488 1.485.696 (227.208) -15,3%

Long-Term Assets 1.701.156 1.610.891 90.265 5,6%

Total Assets 2.959.645 3.096.587 (136.943) -4%

Current Liabili�es (527.856) (698.631) 170.775 -24%

Long-Term Liabili�es (879.575) (923.920) 44.345 -5%

Total Liabilities (1.407.431) (1.622.551) 215.120 -13%

Total Equity (1.552.214) (1.474.036) (78.178) 5%

Total Liabilities and Equity (2.959.645) (3.096.587) 136.943 -4%

2019 3Q


$7.750

$70.654

$477.381

$(11.013) $(35.501)

3Q2019$659.163 mill

$114.391 $30.885

$131.475

3Q2018$703.532 mill

$463.722

$85.934

Other Real Estate Assets

Other Real Estate Assets

$27.016

$(15.311) $(20.131) $(4.130)

$6.148

3Q2019$135.507 mill

3Q2018$146.779 mill

$64.219 $80.475

$90.729 $80.830

$(543)

Contribution by business line

Consolidated Income

Consolidated EBITDA

CorporateCorporate

HousingHousing

Construction Construction

Eliminations Eliminations

Investment

Investment

Corporate

HousingConstruction

Investment

Corporate

Housing

Construction

Investment

Report of Results 3 - conconcreto.com€¦ · Allegro, Manhattan (Panam), and ILO. Engineering and Design For the close of 3T2019, Engineering and Design had a Backlog of COP 16.210

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