GRUPO ARGOS S.A. 
By
Grupo Argos, the holding company of the listed companies Argos (cement) and Celsia (energy) and with investments in ports, real estate and other sectors of the economy, a very positive first quarter with growing results in all the strategic units.
Keeping as a pillar of differential added value for its shareholders and investors, the combination of mature and structured business as the cement, with new business with high growth potential, the holding company began in 2014 aiming at further development of the energy and real estate businesses.
To the major acquisition in French Guyana by its subsidiary Argos, it is added the acquisition of 15.652.473 Celsia shares during the first quarter by Grupo Argos, for a total of 376,704,138 shares and a share of 52.35%.
In the property line, Situm acquired an important set of stores in the Aventura Shopping Mall located in Medellín, for an investment of USD 17 million. The future shopping mall under construction will be located in the heart of the renovated part of Medellín, a few steps from Ruta N, Parque Explora, The Planetarium and The Botanic Garden. Recognized brands will be part of the shopping center, including Éxito.
Revenues up to 2 trillion pesos, an increase of 15%.
Consolidated EBITDA totalized 575 billion pesos, an increase of 11%.
Net income up to 121 billion pesos, an increase of 6%
Assets up to 30 trillion pesos, an increase of 9%
Equity totalized 13 trillion, an increase of 4%
In terms of the social and environmental activities, Grupo Argos, together with its affiliates Argos (cement) and Celsia (energy), endorsed the CEO Water Mandate of the United Nations Global Compact. This is a public-private initiative that supports companies in the development, implementation and dissemination of water sustainability policies and practices.
Additionally, UN-Habitat and Grupo Argos signed a memorandum of understanding to join forces to encourage dialog with the private sector regarding the implementation of the New World Urban Agenda which seeks the construction of more inclusive, compact cities that are better connected for their inhabitants, in the face of emerging challenges of urbanization in the 21st century.
In the first quarter of the year Argos presented a positive operating figures in the markets where it operates, It is also important to highlight the acquisition made in French Guiana, this closing the transaction in a unique moment of opportunity in the industry, taking advantage of the financial strength to a further develop of the business model and a value equal to a multiple of Ebitda company 6.2 times.
Energy Business
Celsia presented positive results during the first quarter of 2014, where the mix of technologies in generation complemented by the distribution business allowed the organization to maintain the stability of its revenues. Celsia reached a total power generation of 1,739 GWh during the period, supplying 11.2% of the electricity produced in the Colombian electric system. 63.5% of this generation was hydro - power and 36.5% was thermal. Cucuana project of 55 MW, reached a total investment of COP 214 billion with a 79% construction progress. Bajo Tuluá, of 19.9
MW, reached a total investment of COP 136 billion with a progress of 70%. Both facilities are expected to initiate operations in the fourth quarter of the current year.
Situm obtained an urban development license for the LAGO ALTO - SECTION 16 (Villa Carolina, 8th Section) with the potential to build 1,127 Housing Units, plus two blocks of Socio-economic level 4 commercial use. This project is part of the General Urban Project (GUP) LAGO ALTO (251 hectares) processed in 2012. Furthermore, in the first three months of the year, the deeds for lots A1, A2 and B1 of the Palmas Río project were registered, for a total of 22,511 m2. The three projects have already broken even in sales and their construction has started. The total value of this negotiation was 22,511 million.
Ports Business
Over the first quarter of 2014, Compas continued advancing in its investment and consolidation plan for its operations in Colombia and Houston in the U.S. The first 14 kilometers of the access road to the Aguadulce port were completed in the first quarter of 2014; 7 km are still to be built. As of July, it will provide complete access for machinery and equipment to carry out the project. Moreover, Compas received confirmation from Bancolombia of their approval of USD 60 million loan, with a term
of 10 years. This will ensure the availability of external funds for the Aguadulce project.
GRUPO ARGOS S.A.
NON-CONSOLIDATED P&L STATEMENT
YTD at March
In millions of Colombian pesos or US dollars
mar-14
Operating revenues
US$ dollars
Dividends and participations Revenues via equity method Revenue from sales of investments Real Estate Business
Gross profit
Gross margin
Operating expense Expense via equity method Administrative expense Provisions far investments Depreciation and amortization
Operating profit
Operating margin
EBITDA
US$ dollars
EBffDA margin
Non-operating revenues
Other income
Non-operating expense
Financial
Retirement pensions
Other ex pense
(loss) profit exchange rate
Pre-tax earnings
Provision far income tax
Net income US$ dollars Net margin
225.857
111
86.854
79.058
31368
28.577
182.463
80,8%
33.319
6.775
22.699
3.488
357
149.144
66,0%
149.501
74
66, .4565
565
25.353
13.418
137
11.798 (1.796)
122.560
1.476
121.084
59
53,6%
GRUPO ARGOS S.A.
NON-CONSOLIDATEC BALANCE SHEET
In millions of Colombian pesos or US dollars
mar-14Cash and equivalents Accounts receivable lnventories
Diferidos
CURRENT ASSETS
Permanent investments
Deudores
lntangibles and deferred items Property, plant and equipment, net appraisals
Other assets
NON-CURRENT ASSETS TOTAL ASSETS
US$ dollars
Financial obligations
Suppliers and accounts payable
Di'v1dends payable Taxes and rates Labor liabilities Other liabilities
CURRENT LIABILITIES
Financial obligations Convertible bonds Taxes and rates Labor liabilities
Other liabilities
NON-CURRENT LIABILITIES TOTAL LIABILITIES
US$ dollars
SHAREHOLDERS' EQUITV US$ dollars
TOTAL LIABILITIES + SHAREHOLDERS' EQUITY
104.694
501.064
37.743
809
644.3108.258.374
8.133
104.497
90.469
7.101.969
1.500
15.564.942 16.209.2528.248
498.391
108.694
199.767
11.576
879
52.364
871.671445.109
584.387
o
2.253
53.595
1.085.344 1.957.015996
14.252.2377.252
16.209.252GRUPO ARGOS S.A. CONSOLIDATED P&L STATEMENT
YTD at March
In millions of Colombian pesos or US dollars
mar-14
Operating revenues
US$ dollars
Variable costs
Cost of goods sold
Depreciation and amortization
Gross Profit
Gross margin
Overheads Administrative expense Selling expense
Depreciation and amortization
Operating Profit
Operating margin
EBITDA
US$ dollars
EBITDA margin
Non-operating revenues Di'v1dends and stakes Other income
Non-operating expense Net financial expense Other expense
Exchange difference
Pre-tax earnings
Pro'v1sion for taxes
Minority interest
Net income US$ dollars Net margin
2.042.3911.016
1.378.3931.270.965
107.428
663.99832,5%
224.039146.106
50.027
27.906
439.95921,5%
575.293287
28,2%
54.92635.289
19.637
165.23080.365
84.865
-1.322
328.333
106.205
101.044
121.08459
5,9%
GRUPO ARGOS S.A CONSOLIDATED BALANCE SHEET
In millions of Colombian pesos or US dollars
mar-14
Cash and equivalents Trade receivables Accounts receivable, net Inventories
Prepaid expenses
CURRENT ASSETS
Permanent investments Accounts receivable Inventories
Deferred items and intangibles Property, plant and equipment, net Appraisals
Other assets
NON-CURRENT ASSETS TOTAL ASSETS
US$ dollars
Financial obligations Bonds outstanding Commerciai Paper
Suppliers and accounts payable
Di'v1dends payable Taxes and rates Labor liabilities Sundry creditors Other liabilities
CURRENT LIABILITIES
Financial obligations Labor liabilities Deferred items
Bonds outstanding
Bond placement premium
Sundry creditors
NON-CURRENT LIABILITIES TOTAL LIABILITIES
US$ dollars
Minority interest
US$ dollars
SHAREHOLDERS' EQUITY US$ dollars
TOTAL LIABILITIES + SHAREHOLDERS' EQUITY
1.518.169
1.073.502
643.047
652.979
59.004
3.946.701
1.007.801
802
48.763
3.269.584
8.441.297
13.226.486
14.894
26.009.627
29.956.328
15.242
941.502
11.133
o
767.238
385.385
275.094
93.681
28.104
846.019
3.348.156
2.589.307
323.218
94.323
3.953.536
-6.568
56.208
7.010.024
10.358.180
5.270
6.622.296
3.370
12.975.852
6.602
29.956.328
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