Find answers to frequently asked questions about Grupo Argos regarding shares, financial aspects, business and general information.
Since 2012, the year when Grupo Argos began as a Holding, the performance of administrators began to be measured based on the fulfillment of short-term, long-term goals, and advances on sustainability; indicators that seek to improve efficiency, sustainability and profitability, while ensuring the operation of companies in the long term.
In the short term, employees participate according to their level of contribution as follows: Executives 62.5%, Senior Management 64.3%, Middle Management 72.7%, for others it is 100% since it has no variable long term. The short-term variable is composed of the following indicators:
- Net Income of the Controller
- Primary Surplus
- Budget Execution
- Department / Business Indicators
In the long term, employees participate according to their level of contribution as follows: Executives 37.5%, Senior Management 35.7% and Middle Management 27.3%. The long-term variable is composed of the following indicators:
- ROCE (Return on capital employed)
- OCF (Operating Cash Flow) / EBITDA
- SPREAD TSR (Total Shareholder Return)
In terms of sustainability, we have a vision to maintain high standards in ESE (economic, social and environmental) that ensure the sustainability of the company, which can be measured with external and independent qualifications such as DJSI. Our goal is to be included in the Dow Jones Sustainability Index (Global, Emerging or Mila), or obtain a higher score compared to the score obtained the previous year, and discuss once a year with the Board of Directors the progress of the strategy of Sustainability and compliance with the goals of reducing emissions, water consumption and human capital, and presenting to the Board of Directors a quantitative measurement of the externalities of the company, measuring what is delivered and taken from the environment. With the above we seek:
- (Attract new investors)
- Access to more efficient Capital
- Reduce financing costs
Grupo Argos seeks to develop infrastructure platforms that transform societies in the Americas. That is why we act actively on the strategic definitions of our strategic businesses with a focus on the search for profitable growth and reallocation of capital to maximize the return on invested capital. In a transversal way we seek to achieve greater cost and expense efficiencies and stability. and strengthening dividend flow; as well as the optimization of the capital structure in order to leverage future growth.
In each of the businesses, we see the strategy summarized as follows:
- Cementos Argos: focus on efficiency and strategic reallocation of assets.
- Celsia: simplification, reorganization and strengthening of the structure.
- Odinsa: targeting, capital structure and focus on project generation.
- Compliance with business plans: impact on the performance of the subsidiaries’ business plan due to changes in market conditions, economic activity, regulation and social and environmental matters.
- Capital allocation: errors in the capital allocation processes that affect the relative performance of the portfolio.
Financial flexibility: loss of flexibility in the capital structure of the companies due to an inadequate composition of the indebtedness, financial capacity of partners and counterparty and / or inefficiency in investment vehicles of Grupo Argos and its subsidiaries.
- Reputation: significant impact on the image of the companies that compromises the trust of any of the stakeholders.
- Changes in the economic and political environment: changes that may generate political or macroeconomic uncertainty, changes in legal, tax or environmental regulations. Loss of credibility of the institutions of the countries or a deterioration in the sovereign credit rating.
- Human talent management: difficulties in attracting, developing and retaining human talent.
a. Fraud, corruption, money laundering and terrorist financing: improper practices by employees, partners, suppliers.
b. Projects: delays and / or cost overruns in the execution of projects of the holding company, due to failures in estimating the necessary, unforeseen resources or adverse conditions in its execution and consolidation.