Profitability and Capital Structure

Value Chain Boundaries

Suppliers
Impacts of this topic are evaluated throughout all Argos operations.Argos
Clients
Impacts of this topic reach our communities, authorities and other individuals of the society.Society

Our management approach

Added value to the company

We manage capital (ordinary and preferential equity shares, short and long-term financial obligations, and ordinary bonds) with a long-term perspective, seeking to maintain a balanced, efficient and flexible capital structure to safely accompany and support the growth process of the organization and ensure its long-term sustainability.

Added value to society

We contribute to the growth and development of Colombia’s capital market and help to attract foreign investments that generate sustainable positive growth for all our stakeholders. The value to society derived from our economic externalities for 2016 was estimated at USD 920.2 million in our Value Added Statement – VAS.

Harleyville Plant, USA Region

103-2 Initiatives, commitments, and policies

Financial Policies
We seek to ensure a solid financial structure and maintain the Company’s exposure to market, liquidity, and credit risks at acceptable levels, according to the nature of operations and the defined policies as well as the exposure limits and defined attributions.

103-2 Governance

Board of Directors
Audit Committee
CEO and Executive Committee
Corporate Finance Managers and Directors
Regional Finance Managers and Directors (USA, CCA, and Colombia)

2016 performance

Short-term debt profile management

  • Refinancing of USD 100 million from short-term debt to long-term debt. The loan has a maturity of three years.

Debt issue

  • In 2016, we issued bonds for a total value of COP 400,000 million. The proceeds are to be used to pay short-term debt and improve the duration of the debt. The average duration of the debt improved from 3.9 to 4.7 years, at a minimum carry cost.

Enhancement of working capital follow-up

  • Greater efforts have been made to instill a monitoring and follow-up culture in the regions.
  • Implementation of supply chain finance programs in Colombia and Panama with suppliers. that improve the cash requirements of our vendors, maintaining our cash cycle.

Martinsburg bridge loan facility

  • Use of a bridge loan facility to finance the cement assets in West Virginia, USA (Martinsburg plant). The company will repay this facility with divestments of non-core assets.
  • To maintain our high standards for financial excellence, contributing to efficiency and sustainability, under the umbrella of the BEST initiative framework.

A-RE1 A-RE2 A-RE3 A-RE4
Net Debt/(EBITDA + dividends): 3.81x
Optimization of financial cycle: 39.04 days
EBITDA: COP 1,652 billion
EBITDA Margin: 19.40%

Shares Performance

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Compressed natural gas powered mixer in Houston, USA Region