Cementos Argos S A : Integrated Report 2023

WE ARE

GREEN LIGHT

ARGOS IN THE	SPRINT:	WE GENERATED MORE
UNITED STATES: A	SHARE PRICE	THAN USD 900 MILLION
SUCCESS STORY	RECOVERY	IN VALUE FOR OUR
PAGE 56	PAGE 8	TERRITORIES
		PAGE 84

INTEGRATED REPORT 2023

A periodic end-of-year report of Cementos Argos S.A.

City of principal domicile: Barranquilla

Address of principal domicile: Carrera 53 #106-280, piso 17, Centro Empresarial Buenavista

WE ARE

GREEN LIGHT

INTEGRATED REPORT 2023

TABLE OF CONTENTS

12 About this report

14 Letter from the President of the Board of Directors

16 Corporate governance

01 02

TOGETHER WE LEARN

TO GROW AND GO FORWARD

MANAGEMENT REPORT

38 Management Report

56 Argos in the United States: a Success Story

TOGETHER WE BUILD EVERYCORNER OF THE PLANET

STRATEGIC FRAMEWORK

62 How do we create value

1. Comprehensive Risk Management

1. Materiality analysis

1. Stakeholders

1. Value Added to Society (VAS)

ARGOS• INTEGRATED REPORT 2023

2

03 04

TOGETHER WE MOVE		TOGETHER WE MAKE
FORWARD TO GO FURTHER	DREAMS COME TRUE

FOCAL ACTION POINTS

94 Profitable growth and fundamental value of the company

100 Business ethics, compliance and integrity

107 Resilient supply chain

113 Sustainable products and solutions

120 Mitigation and adaptation to climate change

1. Environmental management

1. Customer experience

1. Talent management and inclusion

1. Safety, health and personal well-being

1. Social value

1. Human rights

ANNEXES

178 Consolidated Financial Statements

270 Separate Financial Statements

1. Index of contents

1. Glossary

359 Independent Verification Memorandum

368 Legal Representative Certification

3

Cartagena Plant in Colombia

ARGOS• INTEGRATED REPORT 2023

In Argos we produce and market cement, concrete, and aggregates. Throughout almost ninety years, we have written a history framed by sustainability, innovation, environmental care, and commitment to creating value for the company and society. With a vision oriented towards the future, we continue with our purpose of making possible the construction of housing and infrastructure dreams in around sixteen countries and territories in the Americas.

Our human talent, made up of nearly 7,000 employees

at the end of 2023 with their genuine commitment, audacity and ability to adapt to the challenges of the environment, materializes actions that contribute to the consolidation of a more sustainable, thriving and inclusive society.

Delivering extraordinary solutions to our clients and strengthening bonds of trust with our stakeholders is our obsession! This is why we continue to advance with concrete and safe steps to chart new paths, transform realities and generate opportunities that transcend real change.

4

5

WE EXPORT TO

28 DESTINATIONS

9

6

10

INSTALLED

CAPACITY

24

MILLION OF TONNES of cement

• Cementos Argos S. A. has a presence in Venezuela through its subsidiary Corporación de Cemento Andino C. A., which is currently part of a judicial process regarding the expropriation of the Venezuelan Government.

WHERE

WE OPERATE

DIRECT PRESENCE

IN 16 COUNTRIES

AND TERRITORIES

1.	Antigua	9.	Honduras
2.	Colombia	10. Panama
3	Curacao	11.	Puerto Rico
4.	Dominica	12.	Dominican Republic
5.	USA	13.	Saint Martin
6.	Guatemala	14. Saint Thomas
7.	French Guiana	15.	Surinam
8.	Haiti	16.	Venezuela*
8
		11	14
	12		13
			1
			4
		3

7

16

15

2

5

ASSETS

11	179	6	9	63
cement plants	concrete plants	aggregates	clinker grinding	dispatch centers
		plants
29	4	1,641	+1,500
port terminals	time charter	mixer trucks	train wagons

ships

FINANCIAL RESULTS

15.7		6.7		2.7
MILLIONS		MILLIONS OF M3		TRILLION OF PESOS
OF TONNES		of concrete shipped		in operating EBITDA
of cement shipped

TALENT

6,784

employees

INCOME

BY REGIONAL

13%

INTEGRATEDREPORT 2023

54%

84% | 5,724

men

16% | 1.060

women

Colombia

19%

23%

Colombia

•	33%
ARGOS

USA CCA

58%				USA
			CCA

6

COLOMBIA REGIONAL

6	40	1	5
cement	concrete	port terminal	aggregates
plants	plants		plants
24	3
dispatch	trillion of pesos in
centers	income

17%

3,641		83%
Men
	3,029

employees

612

Women

CENTRAL AMERICA

AND CARIBBEAN REGIONAL

				25%
1	6	7	1
cement plant	concrete	clinker	aggregates
	plants	grindings
	plant		75%
10	13	2.3	870
	Men
					651
port terminals	dispatch	trillions of pesos	employees
	centers	in income			219
					Women

USA REGIONAL

4	133	18	2
cement	concrete	port	clinker
plants	plants	terminals	grindings
26	7.4
dispatch	trillions of pesos
centers	in income

10%

2,273		90%
Men
	2,044

employees

229

Women

7

SPRINT

Share Price Recovery Initiative	SPRINT LAUNCH
	22/02/2023

1. Focus on improving operational results
2. +15% in dividends
3. Repurchase of shares for $250 billion

Approval of first dividend payment

24/03/2023

1. List our USA business on the New York Stock Exchange
2. Improve stock liquidity with the appointment of a market maker

ARGOS• INTEGRATED REPORT 2023

8

Designation of Credicorp as a local market creator

22/02/2023

MARKET
CAPITALIZATION
4.9	TRILLIONS

JAN-23

FEB-23

MAR-23

APR-23

MAY-23

The achievement of all SPRINT program milestones resulted in a 66% increase in market capitalization during the year.

Record financial

and operating results

Approval of second dividend		MARKET
payment		CAPITALIZATION
			8
	22/06/2023
			TRILLIONS
Approval of	Start of
a $125 billion	repurchase programs
repurchase program
27/09/2023
22/06/2023

SUMMIT

TRANSACTION

07/09/2023

JUN-23

JUL-23

AUG-23

SEP-23

OCT-23

CEMENTOS

ARGOS MARKET

CAPITALIZATION

NOV-23		DEC-23	9