Argos Convergence Effort 1.0

Argos Convergence Effort, ACE, is a sequential and flexible program aimed at narrowing the gap between the market price of Grupo Argos shares and their fundamental value, with the objective of generating, capturing, and transferring value for all our shareholders.

It builds on the roadmap Grupo Argos has followed over the past decade to simplify its structure, focus its portfolio, strengthen its balance sheet, rotate capital, and make the value of its assets more visible.

Assets

Conference Call ACE

ACE Presentation

Pillars

ACE’s pillars are key enablers for achieving the program’s objective:

It seeks to strengthen business profitability, capture efficiencies, simplify structures, and increase cash generation through the following commitments and objectives:

Argos Latam

Increase profitability by more than USD 75 million over the next two years
Re-entry into Venezuela and expansion in Guatemala

Argos Materials

Progress on the business plan and capital redeployment

Celsia

Capture operating efficiencies to increase the EBITDA margin to more than 40% by December 2028
Reduce leverage by COP 1 trillion over the next 12 months

Grupo Argos Asset Management
(formerly Odinsa)

Convert private initiatives into concession agreements
Optimize SG&A
Consolidate the water business following the acquisition of TICSA
Capture asset management fee income

Real Estate

Accelerate the monetization of assets in Pactia and the Urban Development Business, which will also be consolidated as a portfolio company to make it easier for the market to assess its performance and value

The program seeks to reduce redundancies between operating assets and shareholders, increasing dividend flows. To achieve this, it aims to establish a structure that reduces portfolio duplication, protects its differentiated value, and defines two clear roles:

Grupo Argos – capital allocation:

the holding company will enable business growth through capital allocation and by acting as the anchor LP of the business group’s asset manager.

Grupo Argos Asset Management – sole asset manager:

it will be responsible for originating investment opportunities and raising capital. Under this structure, Grupo Argos will act as an anchor investor alongside a broad base of other equity investors through which Grupo Argos Asset Management will finance the businesses it originates. This evolution will consolidate capabilities, facilitate access to local and international capital, and enable growth opportunities to be scaled through structures that are more efficient and comparable with global standards.

Share repurchases

Through ACE, the objective is to deploy COP 500 billion in Grupo Argos share repurchases over the next 12 months. This amount has already been approved by the Grupo Argos General Shareholders’ Meeting and will be executed flexibly through both the trading system and the independent mechanism.

Additional capacity

The company has identified the potential availability of an additional COP 1.5 trillion for this purpose, subject to approval by the General Shareholders’ Meeting, through the rotation of stabilized and monetizable assets.