Fontanar project, Chía.

We contribute to the following SDG

Responsible Financial Performance

In march of this year, and faced with the uncertainty due to the general lockdown, the closure of the sales rooms and of the works, we put into motion a plan for the adjustment of the sales, title conveyance and expenses’ budget in a new scenario amended due to the COVID-19. This scenario would be the new compass to sail through the pandemic.

For this, Amarilo performed an analysis aimed to quantify the impact of the pandemic on each one of the projects in execution. For these purposes, each schedule was reviewed and the expected sales flow of the projects was reduced according to the projections revealed at that time by Camacol and specialized analysts. With this new schedule, the Company recalculated its expected break-even point of all the stages of all the projects.

The main impact during the pandemic referred to the increases of the work times, which, on their part, meant an increase of the costs on two ways: on the one hand, greater inflation readjustments, derived from the delay of the schedule through time and, on the other, new charges related to site management and other fixed costs (at least two additional months reflecting the time that the same remained closed).

With the aforementioned changes, each feasibility was closed and other variations derived from the new scenario were calculated, for example in the financial expenses. In average, the work times were increased by between two and three months, generating also a delay of the times of delivery of the projects and also of the conveyances of title. The increase of both the time of the construction times and the biosafety protocols implemented meant an increase in the costs of about 1.5 %. GRI 103-1, 103-2, 103-3

With the feasibilities and the project flows adjusted, the projected closing P&L Statement and the company’s cash flow were updated to determine the impact, both on the results and on the cash flow. Based on the foregoing projection, and as it is usual with our allied banks, meetings were held throughout the year to share the information and to monitor the evolution, which allowed us to work in a coordinated manner and to attain the objectives set regarding debt and liquidity levels of the company during the pandemic.

Financial achievements

GRI 102-7

$1.79 billion pesos

Net Sales

$434,956 millions

Debt

$795,142 millions

Capital

$76,342 millions

EBITDA

* The net sales correspond to the total sales of the year less the abandonments.

* The debt only refers to the corporate debt or that of Amarilo S. A. S.

* It is the amount of the equity, it includes the participation of minority interests in projects.

Organizations that Contributed to the Generation of Economic Value

The following are some of the organizations with which we strengthened our commercial relationships and at the same time appear in the financial statements of the company. GRI 102-45

  • Banco de Bogotá.
  • Bancolombia.
  • Fiduciaria Credicorp Capital Fiduciaria S. A.
  • Siderúrgica Nacional Sidenal S. A.
  • Amarilo Panamá S. A.
  • Cementos Argos.

Generated and Distributed Direct Economic Value

GRI 201-1, 201-4, 103-3 Amarilo continues applying and strengthening the policies that have guided the financial operation and that have proven to be essential during the pandemic.

  • Cash independence of the projects: each project has its independent control and management, which allows us to know, at all times, the situation and projection of each business, as well as the sources of funds and the application thereof.
  • Monthly reconciliation of projects:This reconciliation occurs at the accounting and cash level in order to guarantee that each project / Stand-Alone fund reflects in a correct and complete manner the results and the situation of the business.
  • Rigor in the compliance with the financial break-even point: The financial area verifies that all the requirements established for the start and development of the projects from the financial viewpoint are met, that is, with the certification that the clients required are duly enrolled and with the certification of the respective trust fund.
  • Convergence of sources of funds, financing, proceedings, processes and requirements for the start of the projects.
  • Compliance with the payment priorities of the projects: in this sense, it is verified that the projects meet the payments with the correct priority: contributions and obligations (suppliers, contractors and financial obligations), and afterwards management benefits and profits as established in the cash flow of each project. This guarantees a healthy management of the project’s resources and allows the obligations with third parties and partners to be served in a timely manner.
Deslice
Generated and distributed Direct Economic Value 2020
Revenues (VEG) $992,222,220,697
Operational expenses $882,474,452,153
Salaries and benefits of direct employees $36,992,833,352
Payment to suppliers of capital $33,091,339,248
Government take $7,789,989,736
Voluntary donations $184,823,000
Aids due to the COVID-19 health emergency $265,000,000
Economic value withheld $31,423,783,208
*Government take refers to the payment of taxes. No governmental aid is received by Amarilo.

Local Suppliers’ Expense

GRI 204-1

Participation of suppliers and contractors by geographic location

82.77%

Bogota and
surrounding area

10.49%

Caribbean coast

1.14%

Llanos

3.09%

Medellín

2.14%

Cúcuta and
surrounding area

0.37%

Ibagué /
Ricaurte

Deslice
Approx. amounts of payments made
Bogota and surrounding area $637,469,684,961
Caribbean Coast $80,819,986,358
Llanos $8,779,814,867
Medellín $23,793,819,250
Cúcuta and surrounding area $16,513,494,696
Ibagué/ Ricaurte $2,861,455,254

Type of Vendors

Deslice
Approximate No. and % of suppliers
of the supply chain
% of Goods % of Services No. of Goods No. of Services
24 % 76 % 512 1,612
No. and % of international suppliers who provide goods and services 0 0.32 % 0 7