Living Our Purpose

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Living Our Purpose LIVING OUR PURPOSE 2015 INTEGRADATED REPORT LIVING OUR PURPOSE 2015 INTEGRATED REPORT FIFCO’S 2015 INTEGRATED REPORT 3 HOW TO READ THIS REPORT? G4-17, G4-22, G4-23 FIFCO For second year in a row, our 2015 Annual not a “significant operation” for FIFCO, since it Report is written under the Integrated Report has six collaborators and most initiatives are not FIFCO’s 2015 Integrated Report is available at: methodology, following the guidelines of the applicable. www.fifco.com International Integrated Reporting Council (IIRC). This report presents the company’s economic, For Florida Ice and Farm Company (FIFCO), and social and environmental performance, while this report represents the opportunity to not providing a summary of how Florida Ice and Farm only demonstrate its achievements in the three www.fifcosostenible.com Company (FIFCO) creates value in financial and dimensions it operates in: economic, social and non-financial terms. environmental, but also the opportunity to let If you have any questions or suggestions our shareholders and other stakeholders know regarding this report, fell free to contact: FIFCO complements the IIRC’s guide and how all areas are interrelated and interact with FIFCO’s Corporate Relations Department recommendations by reporting indicators of the one another, by identifying the multiple ways in latest release of the Global Reporting Initiative which the company creates present and future Tel: (506) 2437-7770, 2437-7291 (GRI) G4 guidelines, exhaustive option, as well value. At the same time, the report helps evaluate Email: as the guiding principles of the United Nations the organization’s contribution as a social actor Global Compact. The interactions of our products, by linking its efforts and initiatives with the [email protected] processes and initiatives with these guidelines specific contexts in which it operates, and by are pointed out throughout this work. identifying social and environmental challenges, [email protected] both at a local and regional level. The company reports the financial statements for the fiscal year between October 2014 and The content of this report was defined based on September 2015, of all FIFCO operations in Costa the following criteria: congruency and continuity Rica, Guatemala, El Salvador and the United with that reported in the 2013-2014 period, the States: Florida Bebidas y Alimentos (food and definition of materiality according to interviews beverage), Musmanni, Industrias Alimenticias and a consultation process carried out with Kern’s (known as IAK), North American Breweries our stakeholders, update of our sustainability (NAB), Florida Inmobiliaria (real estate) and Florida strategy, as well as achievements and key Capitales (capitals). Certain sections of this report programs of the prior period. include data from El Salvador. However, this is FIFCO’S 2015 INTEGRATED REPORT 4 HOW TO READ THIS REPORT? Likewise, the International Integrated Reporting Council suggests that an integrated report should provide answers to the following six questions, in order to demonstrate how such information is interconnected: GENERAL FACTS AND BUSINESS MODEL FIFCO What does FIFCO do and how do we create sustainable value in the short, medium and long term? FIFCO is a Costa Rican public corporation established in 1908 and mainly engaged in the production and distribution of beverages and food products in Central America, the Caribbean and the United States, as well as in real estate transactions in the province of Guanacaste, Costa Rica, and investing practices. Its head office is located in Costa Rica and it has operations in Guatemala, El Salvador and the United States. At present, FIFCO has over 2,700 products and presentations. In total, it works with 6,324 permanent, temporary and part-time associates and 2,268 shareholders, none of which owns more than 10% of the company’s total shares. In 2008, FIFCO decides to become a Triple Bottom Line company, by merging its business strategy and its sustainability strategy. As a result, ambitious goals are set in the economic, social and environmental arenas. Sustainability becomes the company’s crosscutting aspect, as well as the motor that drives innovation and continuous improvement. In the 2014 period, FIFCO defines its new corporate purpose and value proposal: Share with the world a better way of living. It is during 2015, when the company reaps the rewards of “living its purpose” establishing, in parallel, the strategic framework that would take us to the next transformation level as a company, aligning our purpose with our strategy. FIFCO’S 2015 INTEGRATED REPORT 5 HOW TO READ THIS REPORT? STRATEGIC OBJECTIVES CORPORATE GOVERNANCE FIFCO Where is FIFCO headed FIFCO’s corporate government structure and how will it get there? and how it relates to the sustainability strategy? FIFCO aims to lead any categories in which it competes, through the development of FIFCO is governed by the Corporate economically sound proposals entailing Governance Voluntary Code created in 2009. a minimal or positive impact for society This code is mandatory for the company and the environment. We share the value and our entire staff. The code contains the created and establish real connections with system by which the company is led, under the key audiences and groups we interact the principles of transparency, accountability with. Innovation, business and operational and sustainability. Every year, a compliance excellence, the development of categories and report is prepared on the Code’s different an entrepreneurial culture become the means elements, including compliance with the to achieve our corporate goal. code of investor relations. Such report is certified by an external authorized public accountant and published along with the annual financial statements. FIFCO’s Board of Directors has an essential role in defining the sustainability strategy and initiatives; from the approval of the annual objectives and work plans, to the monthly reporting of the key projects of each one of the dimensions under which we work: Economic, Internal Social, External Social and Environmental. FIFCO’S 2015 INTEGRATED REPORT 6 HOW TO READ THIS REPORT? OPERATIONAL CONTEXT PERFORMANCE LOOKING AHEAD FIFCO Under which circumstances does the What was the company’s performance in What opportunities and challenges might company operate, contemplating supplies relation to the strategic goals FIFCO encounter? and key relationships the company depends on? FIFCO’s economic, social and environmental With our purpose at the center of our actions, performance during 2015 was positive: more we have a “North Star,” a clear picture of FIFCO’s operation is exposed to very diverse improvements and higher earnings than last where we are going. This is about all of us contexts, not only at a geographical level, year’s were reported. The financial and non- knowing what business we collectively want for having operations in 4 countries (Costa financial achievements obtained in the three to create beyond any momentary business Rica, Guatemala, El Salvador and the United dimensions are listed throughout this report, results. Our dream is to reconcile and create States), but also by participating in different demonstrating our commitment to providing synergies among our three main businesses. industries, categories and segments. The products and services of the highest quality In all our businesses, we will “host” our world trends and discussions regarding with minimal impact on our environment, customers and our beverages will provide food, beverage, nutrition, alcohol in society, while creating value in the communities the perfect vehicle for the best hosting. We tourism, convenience stores, among others, where we operate. will expand in concentric circles from our are transcendental circumstances for the core (beverages) and leverage other FIFCO business. The rational use of inputs or raw businesses in ways that will enhance our materials ensure the company’s sustainable core. operation in the future. Likewise, an effective dialogue with our stakeholders is fundamental for an authentic creation of economic, social and environmental value, under a Triple Bottom Line approach. FIFCO’S 2015 INTEGRATED REPORT 7 CAPITALS FIFCO All organizations depend on various forms of iv. Human Capital: Competences, capacities and capital to be successful. In this 2015 Integrated experiences of persons and their motivations THE ROLE OF THE VINCULAR CENTER FOR SOCIAL RESPONSIBILITY AND Report, FIFCO addresses the Capitals concept to innovate. SUSTAINABLE DEVELOPMENT for the first time; it identifies, within its Triple Bottom Line scheme and strategy, how in each v. Social and Relational Capital: The dimension there is a flow, a transformation institutions and relations within and and a creation of these value inventories. The between communities, stakeholders For third year in a row, the company goes from International Integrated Reporting Council and other networks; and the capacity of a complete audit to a specific verification of classifies the following capitals: sharing information to improve individual the stakeholders’ materiality and participation and collective wellbeing. It includes: processes, reporting per G4, in a more i. Financial Capital: funds available to shared standards, relationships with key flexible and transparent way; the same will be produce goods or provide services, obtained stakeholders, intangibles associated to the performed by the Vincular Center for
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