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SORIANA RS 2018 Web ENG Baja.Pdf SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT 2018 INDEX Soriana Organization 2 Message from the General Director 10 Management of the RSE 12 Life Quality in the Company 22 Business Ethics 42 Ethical Promotion and Responsible Consumption 54 Link with the Community 60 Care and Preservation of the Environment 78 Index of Applicable Standards 90 This report contains the activities and actions of social responsibility undertaken by Soriana Organization from January 1st through December 31 of 2018. The report refers to the different international regulations on matters of social responsibility and sustainability. This report was prepared by the consulting firm Huella Sustentable, A. C. For more information contact: [email protected] Social Responsibility and Sustainability Report 2018 SORIANA 1 50 YEARS SERVING MEXICAN FAMILIES 2005 Start of operations of the Super City convenience format in the city of Monclova, Coahuila. 2003 Mercado Soriana is born in Salamanca, Guanajuato. 1968 Opening of the first shopping center in Torreon, Coahuila. 2002 City Club starts operations in the city of Torreon, Coahuila. 1987 Initial public offering in the Mexican Stock 2001 Exchange. Introduction of the loyalty program. 1994 Fusion of Soriana Organization and 2000 Sorimex. 100 stores in operation. 2 2007 2014 Acquisition operation Renewal of corporate Gigante Stores. image and its main 2013 formats. The first eolic energy park. 2016 Acquisition and undertake control of Comercial 2010 Mexicana stores. Opening of the first store of Express format in Centla, Signing of an association Tabasco. agreement with the Chilean company Falabella. 2011 Soriana starts the transformation project. 2017 The first store under the Mega brand is born. 2012 600 stores and income surpass MXN$100 thousand millions. 2018 Sodimac starts operations. Social Responsibility and Sustainability Report 2018 SORIANA 3 SORIANA ORGANIZATION • THE COUNTRY’S LARGEST SUPERMARKET CHAIN OF MEXICAN ORIGIN • ANNUAL REVENUES GREATER THAN $ 153 THOUSAND MILLION PESOS • PRESENCE IN EVERY STATE OF THE MEXICAN REPUBLIC • 815 SELF-SERVICE STORES AND 107 CONVENIENCE STORES • MULTI-FORMAT + MULTI-REGION STRATEGY • SALE FLOOR OF +4.2 MILLION OF M2 • 13 MILLION OF PEOPLE SERVED WEEKLY • 5TH COMPANY OF JOBS GENERATOR IN THE COUNTRY TOTAL INCOME OPERATIVE FLOW (EBITDA) (MILLION OF PESOS) (MILLION OF PESOS) $153,475 $10,883 4 RELEVANT FIGURES 2014 2015 2016 2017 2018 TOTAL INCOME 101,829 109,380 149,522 153,637 153,475 % OF CHANGE TOTAL STORES (3.0%) 7.4% 36.7% 2.8% (0.1%) % OF CHANGE EQUAL STORES (4.8) 5.6 7.2 3.2 0.1 GROSS PROFIT 22,491 23,155 33,161 34,158 34,350 GROSS MARGIN 22.1% 21.2% 22.2% 22.2% 22.4% % OF CHANGE 1.2 3.0 43.2 3.0 0.6 OPERATING EXPENSES (2) 15,431 15,693 21,321 21,955 23,467 % OPERATING EXPENSES 15.2% 14.3% 14.3% 14.3% 15.3% % OF CHANGE 5.0 1.7 35.9 3.0 6.9 OPERATING FLOW (1) 7,060 7,461 11,840 12,203 10,883 OPERATING FLOW MARGIN 6.9% 6.8% 7.9% 7.9% 7.1% % OF CHANGE (6.3) 5.7 58.7 3.1 (10.8) OPERATING PROFIT 4,977 5,306 8,376 8,952 8,068 OPERATING MARGIN 4.9% 4.9% 5.6% 5.8% 5.3% % OF CHANGE (10.5) 6.6 57.9 6.9 (9.9) NET PROFIT 3,704 3,726 4,208 4,468 3,710 % NET PROFIT 3.6% 3.4% 2.8% 2.9% 2.4% % OF CHANGE 18.8 0.6 12.9 6.2 (17.0) NET PROFIT IN CASH 5,837 6,705 7,215 6,565 6,159 % NET PROFIT IN CASH 5.7% 6.1% 4.8% 4.3% 4.0% % OF CHANGE (7.7) 14.9 7.6 (9.0) (6.2) TOTAL ASSETS 80,720 101,845 128,892 128,957 132,632 % OF CHANGE 2.2% 26.2% 26.6% 0.1% 2.8% TOTAL LIABILITIES 34,320 51,716 74,594 70,213 70,744 % OF CHANGE (3.5%) 50.7% 44.2% (5.9%) 0.8% CAPITAL 46,400 50,129 54,298 58,774 61,888 % OF CHANGE 6.9% 8.0% 8.3% 8.2% 5.4% CLIENTS (MILLIONS) 573.5 578.6 734.9 714.4 683.1 % OF CHANGE (0.9%) 0.9% 27.0% (2.8%) (4.4%) EMPLOYEES (THOUSANDS) 85.3 81.8 103.5 104.5 97.2 % OF CHANGE 5.4% (4.1%) 26.5% 1.0% (7.1%) NUMBER OF STORES 674 682 827 824 815 % OF CHANGE 2.3% 1.2% 21.3% (0.4%) (1.1%) METERS OF SALES FLOOR (THOUSANDS 3,285.6 3,309.4 4,324.3 4,299.6 4,244.2 % DE CAMBIO 2.0% 0.7% 30.7% (0.6%) (1.3%) (Amounts in millions of pesos) The figures presented in these exercises are presented under the International Financial Reporting Standards (NIIF or IFRS for its English acronym). (1) Operating Flow is defined as operating income before depreciation and amortization. (2) Operating expenses do not include depreciation and amortization. NET PROFIT FLOOR SALES (MILLION OF PESOS) (THOUSANDS OF M2) $3,710 4,244.2 Social Responsibility and Sustainability Report 2018 SORIANA 5 PROFILE AND PRESENCE We are Soriana Organization, a Company of the Mexican commercial sector founded in year 1968 in the city of Torreon, Coahuila. The representative shares of the capital stock of the Company quote on the Mexican Stock Market since year 1987 with board code SORIANA B. Under a multi-format strategy, we operate at MISSION the closing of the year 815 self-service stores Meet the need of products and services of the and membership clubs plus the belonging to the communities where we have presence, fostering in convenience stores knows as “Super City”. The total each one of us our philosophy and values, to ensure sales area exceeds the 4.2 million square meters a permanent and valuable relationship with our distributed through our different store formats. customers, collaborators, suppliers, shareholders, The coverage of the sales floor in the central and community and environment, thus obtaining an northern part of the country reflects the higher adequate profitability and therefore guaranteeing our concentration, with 668 stores. The logistics network permanence and growth. consists of 14 distribution centers strategically located in 8 states of the country. In stores, we process annually more than 683 million VIEW of transactions, with a labor force of more than Increasingly serve a greater number of communities 97,000 employees. Our central support offices to leading to offer the best shopping experience for stores are located in the city of Monterrey, N.L. and the customer and the best working place for our in Mexico City. collaborators derived from a constant innovation. PRINCIPLES WE ARE KIND AND CORRECT ONE SINGLE TEAM WITH THE SAME TARGET: DELIGHT THE CUSTOMER WE COMPLY WITH THE RESULTS WE ANTICIPATE AND INNOVATE WE ARE COMMITTED TO SORIANA 6 NUMBER OF STORES PER FORMAT We are present in 280 Soriana Hiper 295 Soriana Super 127 municipalities throughout the 32 Soriana Mercado 165 states of the Mexican Republic. Soriana Express 104 City Club 35 Mega SORIANA 89 815 TOTAL OF STORES NORTH 39% 320 STORES CENTER 43% 348 STORES SOUTH 18% 147 STORES Social Responsibility and Sustainability Report 2018 SORIANA 7 FORMATS The Company manages a multi-format strategy, which allows making different purchase options available to our customers in order to cover different consumption needs that exist in the country; to attend different socioeconomic classes, to satisfy different consumption habits and be present in different geographical regions on the country. Soriana Hiper It is a store directed to the entire community and its main purpose is to 295 meet the consumption needs of our STORES customers, where in a single visit you can find all the products, services and news that provide the greatest variety and assortment at a fair price. City Club It is our price club, which provides the greatest value to our associates by their membership, offering products of different nature in presentations of institutional size 35 STORES and multi-packing, perfect for businesses and high-consumption families. Soriana Super It was born with the aim of providing a solution to make everyday purchases of 127 families in a practical and agile way, thanks to STORES the efficient distribution of every department. The customer can find quality products and personalized attention in a pleasant atmosphere. Mega Soriana Store with vast product catalog, focused on offering a high standard in service, quality and personalized 89 attention. It has exclusive clothing STORES brands and our distinguished gourmet area. 8 Soriana.com Electronic commerce platform that offers differentiated products complementing the commercial offer of our physical stores. It offers a wide variety of items indifferent categories. Soriana Mercado Aimed at the segment of the population that is looking for a purchase option focused on low prices of basic necessities. 165 We offer a scheme of high competitiveness STORES in prices and promotions, which has an efficient assortment and optimized in every department. Soriana Express It is focused on satisfying consumption needs through an 104 optimized sales floor, handles STORES around 8,200 products distributed in an efficient assortment in every category. Super City It is a convenience store program that offers our customers the widest variety of brands and products with the firm 107 purpose of satisfying last minute purchase STORES needs. Offering a different option in convenience stores with personality and own characteristics. Sodimac Business focused on providing solutions to construction projects, 3 in addition to satisfying the needs STORES of improvement and decoration of the home.
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