Corporate Finance Environment of the ULMA Group — ULMA Begira
Ulma Group

Corporate Finance Environment of the ULMA Group

The ULMA Group Finance Area started, practically, with the “official” start of the ULMA Group back in 1986. Still without structuring the Central Departments of the Group, as we know them today, the service was given by the Finance Management of ULMA Construcción. Jose Luis Del Campo was the first finance director of the Group. Later, José Ramon Anduaga, Jokin Ugarte and Kepa Salaberria have occupied the position.
Corporate Finance Environment of the ULMA Group
Jul 30, 2013

The financial sector of ULMA GROUP consists of the Financial Committee and the group’s financial director, who also acts as the Committee coordinator.

Finance Committee

The Finance Committee acts as Financial Resources Management in the central area because in ULMA we have re-financed the long-term loans with the pool of banks of the Group: Laboral Kutxa, Santander (having absorbed Banesto), BBVA and Popular. There are signed working capital lines with the same entities until February 2014. The main short-term work that now occupies the finance committee is to define the capital needs that will be available in the medium to long term and negotiate a new agreement with the banks to ensure the oxygen that businesses need in their day to day. In the longer term, the structural finances that the Group needs are being analysed, and the actual structural finance options that will be available must be decided on, to define the levels of debt of the Group and manage fundraising figures according to the amounts defined. The work of the Committee is to make proposals to the Board of Directors and General Council and then follow up on the decisions made.

The financial sector takes care of the setting up and management of the group’s fi nancial resources, making them available to the needs of the Businesses.

The Finance Area where he concentrates on optimising the Group treasury based on the monthly previsions that are made by means of intra-cooperative loans, from Businesses with surpluses to Businesses that are working on the base line. In addition, he works in fulfilling all the communication commitments and all the obligations acquired in the re-financing contract. In addition, this Area coordinates the subjects that may affect the operations of the financial departments of the ULMA businesses derived from legal changes, tax and accounting regulations, etc. as well as those derived from changes in the internal regulations: POGU, and other decisions like flexible retribution, etc. That involves managing relations with the administration, banking entities, auditors, etc.

The insurance policy of the Group is also determined, deciding how to cover the risks, if with global policies like in the case of risk of damages, accidents, transport, civil responsibility of administrators or with individual policies like that of civil responsibility. Another field of action is that of preparing the necessary information for reporting of the ULMA Group, MONDRAGON Corporation and other fields, trying to automate the processes and adapting the Management Panel to current needs.

"On a financial level, we have two key areas of action in the Group. On one hand, the Fundraising and Financial Management, which involves managing a new framework of working capital lines, searching for new alternatives to financing and current debt renegotiation, optimizing short term treasury (intra-cooperative surplus and loans) and Fiscal Consolidation. On the other hand, coordinating different activities such as insurance management, banking relations and negotiations, auditor coordination and management, tax and legal issues, reporting to group members, and support to businesses in the most relevant negotiation processes."