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Annual report 2018 Letter from the executive chairman 2018 at a glance The Damm world We grow with our people LETTER FROM We are committed to society THE EXECUTIVE 2018 AT A CHAIRMAN GLANCE We protect the environment 3 5 We purchase from local and responsible sources We create value About the report GRI content index THE WE GROW WE ARE DAMM WITH OUR COMMITTED WE PROTECT THE WORLD PEOPLE TO SOCIETY ENVIRONMENT 12 41 66 93 WE PURCHASE FROM LOCAL AND RESPONSIBLE WE CREATE ABOUT THE GRI CONTENT SOURCES VALUE REPORT INDEX 2 114 121 130 133 Annual report 2018 Letter from the executive chairman 2018 at a glance The Damm world We grow with our people Letter from We are committed to society the executive We protect the environment chairman We purchase from local and responsible sources We create value About the report (102-14) Ladies and gentlemen, base for consolidating this growth Unsurprisingly, this desire for growth GRI content index strategy with the maximum ambition has been reflected in the arrival of I am delighted to present to you and, at the same time, providing new talent to the group: the company Damm’s 2018 annual report. This us with the fullest guarantee now employs 4,574 people and document provides a comprehensive of sustainability and respect we are present in more than 120 overview of our company's for the values that characterize countries, in line with the strategic performance in the economic, social us and guide our actions. importance we have placed on the and environmental spheres. company’s internationalization. In fact we have coined the concept In fact, the success of Damm can As you may remember, we are #LIVE (acronym for Loyalty, only be explained through the solid immersed in the implementation of Innovation, Customer Value and commitment and proven competence the 2017-2021 strategic plan, whose Energy) to refer to those values shared of its team of people. goal is to double our turnover in five by all of us who work at Damm. They years. Consolidated income for 2018 inspire us in our day to day, they are Among the initiatives launched (1.264 billion euros) increased by our hallmarks and they encourage us during 2018, the Font Salem project 8.7% compared with the previous to continue growing in order to share stands out, aimed at increasing the 3 year giving us with an excellent them with the whole of society. productive capacity of its plant in Santarém (Portugal) to four million were launched with the limited and by our Foundation, in this case, to hectolitres. This project will involve an numbered edition of a beer matured encourage young people to take part 20% increase in staff numbers and an with oak and chestnut, and we will in grassroots sports. investment of 40 million euros. soon be expanding our range of Annual report 2018 products and services. This project is Without doubt 2018 has been a I would like to emphasize that, in the framed within the process of digital year full of challenges that we have Letter from the executive chairman last eight years, Damm has already transformation which the company successfully overcome, thanks to the invested more than 500 million euros continues to make progress in and effort and commitment of all of us and 2018 at a glance in the expansion of other plants which involves our entire value chain. which together enable us to be ready The Damm world such as those in El Prat de Llobregat for the future, consolidating growth in (Barcelona), El Puig (Valencia) and With regards to sustainability, the coming years. We grow with our people Murcia, as well as in the building innovation and the intensive use of the We are committed to society of the Cervezas Victoria factory, in most advanced technology have been I’m very excited about 2019, not only Málaga. Thanks to this investment key in allowing us to increase our because of the initiatives that we are We protect the environment drive and the improvements achieved efficiency in the use of resources and promoting at Damm, but also because We purchase from local and in terms of efficiency, the beverage minimize our carbon footprint (CO2 of the personal challenge of once responsible sources production capacity of all our emissions, for example, have been again taking on the presidency of centres is now more than 25 million reduced by more than 2,600 tonnes Cerveceros de España (association We create value hectolitres per year for the first time. per year). In addition, we have taken a of Spanish brewers), at a time when About the report giant step towards the transformation the sector has an important role in the Living up to our characteristic of a linear economy model into a economy of the country, promoting GRI content index commitment to comprehensive quality circular economy model, which will sustainable growth and job creation. and continuous innovation, 2018 has enable us to reduce waste generation also seen the launch of new brands. since it will largely be recycled to These include Complot, our first become new materials or resources. Demetrio Carceller Arce IPA (India Pale Ale), Verna beer with These achievements would not have Executive Chairman lemons from Murcia and the hoppy been possible without the active beer Rosa Blanca from Palma de involvement and commitment of our Mallorca. In addition, Estrella Damm employees, suppliers and customers. has completely revamped its image to highlight the fact that it is produced Last but not least, I would like to with 100% natural ingredients. mention the cultural, social and sporting projects promoted by the Another highlight of 2018 has been Damm Foundation. The Club de the launch of our e-commerce Fútbol Damm and Club de Pádel channel, a new way of being closer Damm are two good examples of 4 to the consumer. Online sales the work that is being carried out Annual report 2018 Letter from the executive chairman 2018 at a glance The Damm world We grow with our people We are committed to society We protect the environment We purchase from local and responsible sources We create value About the report GRI content index 2018 5 at a glance (102-7) Annual report 2018 People Letter from the executive chairman 2018 at a glance The Damm world malthouses Total company staff (includes SA Damm and subsidiary companies) We grow with our people We are committed to society We protect the environment production and packaging plants Staff in the scope We purchase from local and of this report responsible sources We create value About the report pallets moved by Alfil Logistics Female staff GRI content index M boxes delivered to customers by Damm Distribución Integral Male staff Restaurants Staff on a permanent contract Rodilla Café de Jamaica Indias Coffee Experience Staff who have 6 received training Annual report 2018 Environment Company Financials and Letter from the executive chairman shareholders 2018 at a glance M€ The Damm world Net profit Water consumption Visitors to the factories of We grow with our people El Prat, Estrella de Levante and BEER 4.42 hl/hl packaged Cervezas Victoria We are committed to society WATER AND SOFT DRINKS M€ We protect the environment 1.91 hl/hl packaged Total assets/liabilities GRUPO RODILLA We purchase from local and 0.0034 m3/kg produced responsible sources We create value M€ Net worth About the report Energy consumption (electrical and thermal) Suppliers GRI content index BEER 28.62 kWh/hl packaged M€ WATER AND SOFT DRINKS Accumulated industrial 9.10 kWh/hl packaged Active suppliers investments since 2008 GRUPO RODILLA 0.44 kg/kg produced Suppliers located in Earnings per share Iberian Peninsula (euros/share) Electricity consumed in our production plants located in Spain under "green" origin certification 7 The Damm world In 2018, all the centres that have a quality management system Annual report 2018 certified according to ISO 9001 have been adapted to the new 2015 Letter from the executive chairman version of the standard. 2018 at a glance Damm reinforces its strategic The Damm world commitment in the Balearic Islands with the recovery of Rosa Blanca, We grow with our people and the development of the milk We are committed to society brands of Agama, who make Laccao shakes, and the water brands Font We protect the environment Major and Font de Sa Senyora and We purchase from local and the activity of capillary distribution responsible sources (Comabe) We create value We reinforced our presence in Asia, About the report where we have a team of 13 people, and we became the official beer of GRI content index Asia's 50 Best Restaurants. We launched Verna, the new beer from Estrella de Levante, made with 100% natural ingredients. Damm launches its e-commerce channel, putting on sale 1,000 units of a numbered limited edition beer matured with wood. 8 Committed to people Damm presents Complot at The Let’s Damm Together initiative In 2018 the Damm Academy is Alimentaria 2018. Damm’s first IPA continues with the aim of involving launched, a new digital training space Annual report 2018 is made with eight varieties of hops, people in the company’s digital based on four axes: corporate, digital, including the one grown in Prades transformation. Demetrio Carceller, competence and business. Letter from the executive chairman (Tarragona). Executive Chairman of Damm, hosts one of the sessions. People Damm is launched, a 2018 at a glance Cervezas Victoria presents its new meeting point between Damm and The Damm world image to mark the 90th anniversary of Damm receives the efr certificate the company’s workforce, which the brand.