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.

Social Responsibility and Sustainability Report 2018 SORIANA 9 MESSAGE FROM THE GENERAL DIRECTOR

With the mission to help and contribute joined the value chain of Soriana throughout socially to the less favorable sectors of society, the country. In the las 3 years the regional Soriana Foundation continues to implement products sale increased by 78.77%, social programs focused on child support, contributing to our country’s development. food and community support, promoting our challenge of Linking with the Community. Our commitment to society is linked to the Care and Prevention of the Environment, In the last 3 years, with a social investment of we assume the interest of fulfilling our work, $349,133,963.90 pesos, benefited 1,491,887 while respecting the environment in which people and 1,348 institutions throughout the we operate. country. This year, 46.35% of the total electric By 2018, we have built 5 Community energy used for the entire chain came from Centers, and this year we built the computer renewable sources, supplying a total of center of the Trancas en Movimiento 614 stores. During the last three years we Community Center, in the state of Guanajuato: have reduced our CO2 emissions to the improvement projects were developed in atmosphere by 20.8%. In 2018, 73,247 tons academic infrastructure and economic growth of cardboard and 4,403 tons of plastic were of the inhabitants in the communities of recycled. 5,640 collaborators were trained the municipality of Chemax in the Yucatan in responsible energy consumption and Peninsula. In addition, 194 ecological stoves practices to promote the environmental care. were installed benefiting 776 people, a program that from its inception to the present This year we celebrate 50 years of being has benefited 10,156 people. family with Mexico, through this time we have grown and evolved guided by the In addition to this, I am proud to highlight dreams of our founders and the effort and that thanks to the support of our clients in commitment of all who are and have been the We are Family with Mexico campaign, part of Soriana. and Soriana’s commitment that doubled the contributions received by our clients, we In 2018, the achievements reached include managed to benefit families affected by the not only the financial results of the company, 2017 earthquakes, through the construction but also those that impact the way how and delivery of 112 homes in the cities of we interact with the community, which Juchitan and Ixtepec in the state of Oaxaca. reaffirms our commitment and solidity based on a strategy of Social Responsibility and On the other hand, we continue to promote the Sustainability. Supplier Development Program, which since its creation, has generated business’ opportunities We strengthened our management model to 1,770 small and medium suppliers, and by aligning our Social Responsibility actions more than 8,308 regional products that have of Social Responsibility with the Sustainable

10 Development Goals. In this Report you will be Our commercial campaigns are based able to know the activities carried out and the on Ethical Promotion and Responsible progress made to the goals of our Sustainability Consumption, within the framework or our Policy. 50th anniversary, the campaign “Somos Familia con México” (We are Family with We continue to promote a culture of learning, Mexico) seeks to represent the values of development, ethics and responsibility, the Mexican family, highlighting the respect constantly reinforcing our organizational values. for others, the unity and solidarity. On the other hand, the campaign “Ahorro a mi Our collaborators and the Life Quality in the Gusto” (Savings to My Taste) seeks to have Company are priority in our operation. In the last a direct relationship with our customers by 3 years we increased the internal promotion by rewarding their preference with different 77% in Store Support Office. On the other hand, saving schemes created especially for them. during 2018 there were 4,988,237 hours of During this 2018 we generated an evaluation training, showing an increase of 32.4% over the to know the import of the Familia Mercado previous year. In the last 4 years through Soriana (Mercado Family), finding favorable results University, we have promoted the work and from our customers. personal development of more than 2,000 of our collaborators giving them an academic degree Today I thank the entire Soriana family, to in their work centers. And as part of the care to those who have been part of its history; to our collaborators, we managed to contribute to our customers, collaborators and suppliers. the improvement of their health through different We continue working to transcend future campaigns and tools, which improved the life generations and contribute to the construction quality of 90,943 people. of a better society. Life is a celebration, and I invite you to be part of ours. We interact with our interest groups under Business Ethics which allows us to generate long and lasting relationships, seeking to generate a positive impact with each one. Ricardo Martín Bringas This year, 20,356 reports were handled in our General Director Customer Service and Service Center, thanks to this tool, doubts and suggestions of economic, social and environment issues were identified developing concrete actions in response to each improvement opportunity. On the other hand, we promote the best commercial practices consolidating our Value Line as a reliable means of reporting to the different interested sectors.

Social Responsibility and Sustainability Report 2018 SORIANA 11 MANAGEMENT OF SOCIAL RESPONSIBILITY

In Soriana, Social Responsibility constitutes a sensitive and conscious work attitude towards the problems of our society, which leads us to adopt habits, strategies and processes that help to minimize the impact that we can generate on the environment and to our society. We promote business creativity in search of benefits for our customers, collaborators and interest groups, while managing the business based on our values, seeking human development, modernization and internal growth of our environment.

12 OUR MODEL OF SOCIAL RESPONSIBILITY

For Soriana, Social Responsibility is an ethical form of management in the business strategy, taking into account the demands of our groups of interest to which we impact and with whom we interact. In 2017, we mapped our material themes and aligned our management model with the Sustainable Development Goals (SDGs) promoted by the United Nations. During 2018, we strengthened our sustainability strategy, aligning our lines of action and activities with the SDGs and those goals that guide us to continue improving the living conditions in the communities, to mitigate the environmental impact of our operations and to contribute to the domestic and national sustainable development.

Social Responsibility and Sustainability Report 2018 SORIANA 13 • We have a solid structure of • In the last 3 years, 1,348 Corporate Governance, based on institutions benefited from ethics and our values. our relationship with the • We prepare structured reports community. that promote transparency and accountability.

We carry out volunteer We collaborate in the • • activities that include cleaning of beaches and reforestation and recovery coastal spaces through our of spaces and the rivers Heart Volunteers. rehabilitation.

• From 2016 to 2018 we have

reduced our CO2 emissions to the atmosphere by 20.8%. • In 2018, 5,640 employees were trained in environmental care.

• We develop campaigns that promote values and encourage responsible consumption. • We obtain an alternative use of by-products, recycle and collect waste responsibility. • We promote a culture of responsible consumption by making reusable bags made of different recycled materials available to customers.

• In 2018 we delivered 112 homes to victims of earthquakes in 2017. • In the last 3 years, 582,622 people benefited from infrastructure and support in the communities.

• We generate initiatives that contribute to the development of the country, as well as • We developed 1,770 small and to improve the quality of life of people in medium-sized suppliers. vulnerable situations. • Our stores use renewable energy • We promote a work environment of equality for their operation. They are and discrimination free in our relationship constantly maintained with the with different interest groups. latest technologies.

14 • By 2018, we have built 5 Community • In the last 3 years we have Centers. attended 454,864 people in • We provide access to basic services food and nutrition issues. to more than 1,600 people in different communities of the country.

• We offer free medical and nutritional advice to our collaborators through consultations, preventive campaigns and treatment of chronic degenerative diseases. • We support providing treatment to disabled children.

• We professionally develop our collaborators by providing more than 4,988,237 hours of training in 2018. • We promote access to quality education for more than 2,700 children and young people in the country.

• We grant labor benefits to mothers within the Organization, such as prenatal consultations, lactation room and flexible hours. • We promote our collaborators in leadership positions, offering professional and personal development tools through the Soriana Women’s Development Program.

• We aim to reduce water consumption by 5% for 2021, and in 2018 we reached 96.19% of the annual goal.

• We installed solar panels and ecological stoves in rural communities benefiting more • We support the local economy, making available more than 1,260 people. than 7,800 products in our sales floor of small and • In 2018, 46.35% of the total medium regional producers. energy used for the entire • We award competitive salaries to our employees, chain comes from renewable exceeding Mexico’s minimum wage. sources.

Social Responsibility and Sustainability Report 2018 SORIANA 15 SUSTAINABILITY POLICY Our Sustainability Policy was developed based in the impact and scope obtained in our operation in year 2016, establishing clear goals to comply by the differed involved areas for 2021.

In 2018 we have reached important advances in the compliance of the established goals:

AREA ITEM 2021 GOALS % OF PROGRESS TOWARDS GOALS

Technological Emissions Reduce emissions of CO2 in 99% Innovation 20% in regard to those issued in 2016. Water Management Reduce 5% in water 96% consumption Soriana Foundation Benefited Social Programs Increase 5% in 5 years in 96% Benefited average. Customer Service and Customer dissatisfaction in Reduction of complaint number No progress was made due Attention in-line invoicing a year for discontent customers’ to changes in the billing invoicing portal in compliance with requirements of SAT.1 Human Resources Health Services Cover all the 32 States with 53%2 Agreement Hospitals Training Increase of 40% in 5 years in Goal 2021 reached and training hours surpassed by 12% Stores Service By-Products Increase of by-products in 15% 99% for 2021 Suppliers Development Fresh products and Increase the scope to 100% 41%3 (Pymes) processed groceries fresh supplier and groceries throughout the Soriana group self-service level.

1 For more information, see paragraph Customer Service and Attention in chapter Business Ethics of this report. 2 Health services surpassed their year goal 2018 in 33.33%, making 16 agreements of 12 agreed for this year. 3 The supplier evaluated in the goal belongs to the Gourmet Category within the line Oriental Specialties and Accessories, in which its products participate with 3.14% of sales on the line, achieving to be the 9th supplier in sales. Its annual goal of incorporating 332 stores for 2018 was exceeded by 2.4% (340 stores).

16 SUSTAINABILITY AND ENERGY COMMITTEE

Since 2012 Soriana has a Sustainability and Energy Committee that monitors compliance with the Sustainability Policy, as well as implements the different processes and innovations in the matter.

Our Committee involves Executives and Managers from each area of the company:

Ricardo Martín Bringas General Director of Soriana Organization

Committee Leader: Director of Real Estate Development

Direction of Direction of Commercial General Direction General General Direction Logistics Finance and Real Estate General Mercado and Direction Hiper Direction City of Human Direction Administration Development Direction Express and Super Club Resources

Relation with Technological Logistics and Soriana Marketing Operations Operations Operations Investors Innovation Dry Distribution Foundation

Logistics and Human Capital Strategic Construction Human Capital Human Capital Human Capital Perishable Office of Stores Planning Distribution Support

Public Relations and Corporate Maintenance Communications

Real Estate Finance Development

Real Estate

Store Service

Social Responsibility and Sustainability Report 2018 SORIANA 17 The Committee and its members are assigned different functions and responsibilities, and meets monthly to:

Strategic projects linked Objectives and goals to the sustainability that make up the axels and objectives social responsibility Define strategy Coordinate

Sustainability and Energy Committee

Monitor Analyze

Objectives and advances contemplated in the Sustainability Policy Spread Opportunity areas and detects the possibilities of improvement, based on the identification processes of risks, needs and concerns of the interest groups Strategies, Actions, Aspirations

18 • Strategies Presentation aligned to ODS STRATEGIC PLANNING • Project Presentation of recovery of rain water with Tec de Monterrey • Presentation of programs Soriana Loves your Beach

• Review and advance of sustainability goals • Review and advance of verification of the National Emissions Registry (RENE) • Presentation of attendance to events: Global Tech Canada, Second Symposium on Efficiency ANTAD, Agrifood Cluster, University of the Environment TECHNOLOGICAL INNOVATION • Presentation of the campaign Let’s Save together • Analysis of ranking results • Presentation of water strategies • Presentation of construction progress of the Vicente Guerrero Eolic Park • Review of Methodologies for calculating electricity rates

• Training in Human Rights HUMAN CAPITAL • Presentation and advance of hospital agreements

SERVICE • Presentation of Regulations and restriction of use of TO STORES plastic bags

• Coordination of making the Sustainability and Social SORIANA Responsibility Report FOUNDATION • Presentation and results of campaigns: We Are Family with Mexico, Teletón and Redondeo.

PUBLIC RELATIONS AND CORPORATE • Strategies presentation at Web and Social Networks COMMUNICATION

Social Responsibility and Sustainability Report 2018 SORIANA 19 PUBLIC COMMITMENT

In Soriana we consider Social Responsibility as a public commitment that we make with all of our interest groups in the business integral management. In consequence, we establish a close communication and dialogue with each one through the multiple mechanisms and channels.

Board meetings, shareholders meetings, quarterly results reports, Yearly Report to the BMV with investors: Conferences and Roadshow, Surveys, Web page, and Social Network

Internal communication, Training Sessions, Social networks, Volunteer Initiatives, Corporate, Web platform, Web page social nets, events Investors and fairs

Suppliers Collaborators

PUBLIC Events, Conferences, Surveys, COMMITMENT Customers Web page, Communication, Web Media Social networks Page, Social networks

Government Local and and Non-Governmental Regulating Organizations Authorities Bonding, Meetings, Reports, Meetings, Corporate Volunteer Surveys Initiatives

20 RANKINGS

During 2018, Soriana Organization increased in 46% its presence in rankings related to the business, in #9 comparison with the previous year. The 50 Companies Socially Responsible in Mexico In addition, we were recognized by our performance and model of Social Responsibility in aspects that highlights #10 the economic, social and environmental Philanthropic Companies commitment: in Mexico #17 Ranking Classification Companies with Environmental Commitment 23% 26% #45 31% The 100 Companies with the Best Reputation in Mexico 53% 23%

16% #56 23% The 100 Responsible Companies 2018 5%

2017 2018

Social Responsibility and Sustainability Report 2018 SORIANA 21 LIFE QUALITY IN THE COMPANY

In Soriana, the life quality in the company is defined by granting employees growth opportunities, recognition and strengthening at their work places.

22 We believe and trust our employees, while we prioritize the satisfaction of their work needs, training them, offering competitive salaries, developing career plans and maximizing the potential of our workforce.

97,154 The work guided by our values increases the collaborators organizational commitment of those who conforms make up the Soriana, reducing absenteeism, increasing productivity Soriana Family. and profitability, as well as improving the recruitment, selection and retention of talent processes.

Social Responsibility and Sustainability Report 2018 SORIANA 23 In Soriana we select and accompany our collaborators to reach their best through the balance between their knowledge, skills, attitudes and expertise, facilitating their growth in the personal and professional scope.

EMPLOYABILITY

SELECTION AND EQUITABLE PARTICIPATION The selection of collaborators who are part of Soriana is carried out through different sources of recruitment, always contemplating the internal postulation of Selection of collaborators collaborators. by gender

60% of the candidates come from labor exchange and electronic platforms, while 30% are referred by internal 58% collaborators or colleagues, and 10% are selected at recruitment fairs. Then every candidate participates in 54% a standardized and equitable selection process. 53% 47% In Soriana we promote and offer equal treatment and 46% employment opportunities for all the people without 43% considering their gender, sexual preference, ethnic origin, religion or age.

2016 2017 2018

24 Of the total of our collaborators 48% are women 52% are men

The composition of our work teams is aligned with the inclusion, diversity and equity policies that make up the values of the company.

In addition, in Soriana we ensure the protection of Age range workers’ rights, through the promotion of freedom of collaborators of association and collective bargaining. 25% In 2018, 56% of the total number of employees of 31-40 years the Organization is unionized, which are represented by 840 Work Centers and 45 Trade Union Leaders, 24% and covered by 355 Collective Labor Agreements. 41-50 years In Soriana we have a formal methodology that allows us to assign wages and salaries of the Executives according to the impact level they have within the Organization. 32% Year after year, salary growth is reviewed according 21-30 years to market fluctuations and employee performance. 13% For unionized positions, wages are managed according 51-60 years the clauses of the collective agreements and according 0% 5% to the responsibility and/or activity of each position. 70 years Under 20 or more 1% years old 61-70 years

GENDER/AGE UNDER 20 BETWEEN BETWEEN BETWEEN BETWEEN BETWEEN 70 YEARS YEARS 21-30 31-40 41-30 51-50 61-70 OR MORE YEARS YEARS YEARS YEARS YEARS Female 2,460 14,918 11,716 11,375 5,786 414 1 Male 3,743 19,761 11,513 9,525 5,434 501 7

Social Responsibility and Sustainability Report 2018 SORIANA 25 21,240 Volunteer Packers

PACKERS PROGRAM In Soriana, diversity and inclusion have strategic value. “6 years ago I came with my daughter to Therefore, we have a Volunteer Packers program, in do the shopping and I liked the atmosphere which young people and adults participate voluntarily of the store. Then I asked the age and the by packing the merchandise that our customers acquire requirements to be admitted in the program. in the Stores. Some days after, I brought the INAPAM’s In the case of young people, the activity is carried out authorization and the next day I started to under guardianship, close supervision and explicit collaborate. I was a secretary all my life and authorization from their parents and/or guardians. then from 47 to 60 I did not find work until I Their involvement helps them strengthen family values, came here. I feel very comfortable because I acquiring the habits of honesty, respect and hard work. get along with my colleagues, I bring money to my house and I can buy what I like”. On the other hand, the participation of retired adults and pensioners of the third age is channeled through MIRTHALA MIREYA DE LA LASTRA TORRES, the INAPAM or DIF, allowing them to continue in PACKER, CUMBRES SORIANA HIPER STORE. physical and social activity while supporting our customers.

Of the 21,240 volunteer packers, 36.54% are women and 63.46% are men.

“A colleague invited me to come to work at this store because they treated us very well here. I have been working very happy and comfortable for 9 years, with good companions and good treatment of all the people in the store. The program allows me to bring welfare to my house, to contribute with food and other things that are needed, as well as to complement the pension I receive”.

ANTONIO RUBALCABA RODRIGUEZ, PACKER, CUMBRES SORIANA HIPER STORE.

GENDER / ADULT YOUNG / PACKERS WITH DIFFERENT PROGRAM PACKERS MINOR PACKERS CAPACITIES Female 28.06% 8.17% 0.33% Male 47.29% 15.64% 0.51%

26 For Soriana it is essential to take care of its employees and ensure that they are satisfied and have the opportunity to develop within the company. Therefore, we accompany and encourage our collaborators to develop those skills and knowledge they need to be able to change division, to adopt a different role in the company, as well as to continue growing in its formation.

HUMAN DEVELOPMENT

SORIANA TALENT uses strategies such as accompaniment to achieve professional and/or personal goals, mentoring and To carry out the development of the potential of our the method of observation-based learning so that the collaborators, we have developed the Soriana Talent employees live a unique experience while acquiring Cycle that guides us through different stages to achieve practical knowledge experiential. the objectives. Finally, based on the individual development plan First of all, we map the talents through a tool that allow or the path of established race, the employees may us to measure the performance observed in the past occupy other positions in their same hierarchy or even and the potential future growth of the collaborators. a higher hierarchy. Thus, we evaluate the performance, potential, preparation, development plans, rotation risk and the position or key branch. SELECTION Then, we use different tools and methodologies to Incorporate Identify evaluate collaborators, which allows us to weigh the result of psychometrics, the results of the sessions of

the Evaluation Center, the interviews by competences, T

N E

the survey of values, the evaluation of leadership and G M

N performance, the degree of compliance of business I P

N

O I TALENT L indicators, as well as the evaluation of technical A E

R V knowledge. This evaluation allows us to generate T E D individual development plans under the 70-20-10 scheme: Experience, Learning from others and Training. While the training is developed through the different training programs of Soriana, learning from others Formation D T Evaluate EVELOPMEN

Social Responsibility and Sustainability Report 2018 SORIANA 27 In the last three years we increased a 77% The coverage of vacancies with internal promotion in Support Offices to Stores.

During 2018: • We mapped 3,009 collaborators, while 842 are in evaluation process and making of an Individual Development Plan. • We made 29 sessions of Evaluation Center for 243 collaborators. SORIANA WOMEN´S • We handle 514 feedback sessions in which the actions to be carried out are agreed so DEVELOPMENT PROGRAM that the collaborator reaches the expected In Soriana we believe in diversity and inclusion results. therefore we developed a program for the women We coordinated 36 sessions of the • contributing with the Organization contributing their Individual Development Plan. vision of the world, their talents and energy. • 20,064 collaborators participated in the Performance Evaluation. The objective of the program is to provide tools of inspiration and self-knowledge that allow female This allowed us to generate 129 promotions, executives to connect with them and with the world to 33 lateral movements, 10 transfers between realize their personal and professional goals. Distribution Centers, Stores and Support Office to Stores, and 12 Directions with Talent In 2018 was held the first event of the program, Mapping. in which from expert hands, we managed to work on several topics such as living life to the fullest, walking the path of self-knowledge and its impact on the Organization and on people, how to project a professional image of first level, the possible alternatives to reach the best version of the person, and happiness.

In the search for improvement, synergy and 85% satisfaction, our executive women have space to of the vacancies of HR Management Leaders exchange opinions and ideas, as well as to empower were covered with internal promotions. themselves and be accompanied in their development.

“On a personal level, it seems like a life experience, “In a gratifying way, it was a great experience, the because this is for me and it will always help me. dynamics, the topics discussed and above all I come At professional level, with the responsibility of out very strengthened, and with a lot of inspiration. I sharing it with the people close to me, with my take the best of my colleagues and with the conviction team and to be capable to inspire others and, make that I have to be a better person, leader and be able to of this an important project for the company”. inspire my collaborators”.

KARINA DUARTE AGUAYO. MÓNICA FRANCO GONZALEZ. BUSINESS MANAGER MEGA SORIANA. FOOD DIRECTOR.

28 SORIANA CULTURE In Soriana we know that the only way to achieve our goals is through creating the conditions for our employees to feel happy, self-realized and proud of living our values.

In 2018, as a method to keep alive and evoke our In 2018, 68,583 surveys were carried out, 19% more values, the dynamics “The Treasure of the Soriana than the previous year. With an average response of Values” was implemented in the Support Offices to 76.28%, the values “We are correct and kind” and “We Stores in Monterrey, where through a training center, anticipate and innovate” were the best rated values. each of our values was represented in a fun way, Based on the results achieved and taking into account inviting the staff to live the Soriana values every day. the methodologies for measuring job satisfaction, we We have the participation of 1,178 collaborators. address our efforts to develop better leaders within the work teams, and thus encourage the satisfaction of our Moreover, this year we designed 6 virtual workshops collaborators. and exercises about the values of the organization, that through the in-line platform of Soriana University, we And as in 2018 we celebrated 50 years of Being Family made available to all our collaborators. with Mexico, we developed the #SoySoriana workshop, which with the aim to commemorate and celebrate As part of our culture, and with the aim of generating the anniversary of the company, seeks to highlight a close link between employees and the values that the important facts of the history and operation of our distinguish us, year after year we carry out a Diagnosis Organization, and show how these set the tone to of Organizational Values. become the great company we are today. The workshop was implemented for 1,667 collaborators at the Support Through this evaluation we obtain valuable information Offices in Monterrey. about organizational behavior, needs assessment, analysis and leadership profiles, the perception of the work environment, and elements that are very useful for managing change in the Organization.

We are correct One single team We comply with We anticipate We are committed and kind with the same goal: the results and innovate with Soriana delight the customer

Features of the Soriana Leader

COMMITED WITH SERVICE INSPIRER TRANSFORMER OPEN THE RESULTS ATTITUDE

Social Responsibility and Sustainability Report 2018 SORIANA 29 TRAINING FOR THE WORK

In Soriana we are aware of the importance of taking actions that encourage training, learning and updating of the people that make up the work teams of the company.

Therefore, we develop different programs and activities Training Hours aimed at the renewal of knowledge, to promote skills and attitudes of employees, to share experiences, and to promote the integral development of people. 4,988,237

2018 was a year of great and new challenges, since 3,767,555 the integration of two of the most important self- service chains in our country took place. Thus, training 3,195,515 processes aimed at knowledge of work and the integral training of employees played a fundamental role in making changes in the structure and operation of the stores successfully.

During 2018, 4,988,237 hours of training were given, which represents an increase of 32.4% with respect to the previous year. Every Soriana employee received and participated in at least one training program.

2016 2017 2018

30 56.1% The number of training hours given to our collaborators during the last three years was increased.

TRAINING FOR EACH NEED TRAINING IN STORE The employees who are in charge of the management As result of the integration process that we of Human Resources in Soriana require constant experienced this year, 60,976 training hours related training and updating in order to attract, retain and to store operation topics were given to 12,140 manage the growth of our collaborators. collaborators. The trainings were directed to executives, personnel with head and line level, and For this reason, in 2018 the Training Program for the reached an average of 5 training hours per person. Position implemented for employees who occupy the positions of Management Leader of Human Resources In the Management Development Program, and Assistant Manager of Human Resources in the which aims to prepare collaborators to perform the Store. functions of Store Manager, we had an income of 136 collaborators, representing an increase of 23.6% with This year we have the participation of 690 respect to the participants in 2017. They were taught collaborators, reaching 12,515 training hours. 313,344 training hours.

And in Trainee to Assistant Manager Program, whose objective is to train new Store assistant managers, we have the income of 269 collaborators, representing an increase in the number of participants of 37.9% over last year. 619,776 training hours were invested.

It is important to highlight that collaborators of the new format of the company (MEGA Soriana) participated in both programs, and that 100% of the participants achieved their accreditation.

Social Responsibility and Sustainability Report 2018 SORIANA 31 SORIANA TALENT DEVELOPMENT TRAINING TO SUPPLIERS PROGRAM For Soriana, its suppliers are a fundamental factor that As part of the Soriana talent development process, we influences the achievement of the company’s results, seek to generate management skills and operational so we work to interact with them through agile and knowledge in collaborators, so that later they enter to effective processes, consolidating our relationship. the Management Development Program. Thus, in 2018, 1,214 training hours were given to 414 In 2018, 51 participants entered, of which 35% were suppliers, of which 60% participated in person, while subsequently joined the Training in Store Program. the remaining 40% did so through online meetings. For the next year we plan to train the rest of Soriana’s suppliers. LEADERSHIP CENTER In Soriana we count with a leadership center that its purpose is to form and develop skills related with the results achievement and the management of work teams to occupy positions in Stores, Support Office to Stores or Distribution Centers.

This year, were implemented the workshops: “Base Leadership” and “Transform Yourself”, considering an audience of 2,492 individuals, which represents an increase of 193.18% in the number of collaborators with executive level invited to attend these workshops.

32 SORIANA UNIVERSITY

In Soriana University we create opportunities for the academic development of our collaborators.

Through different programs, we have been part of the “My return to the classrooms was a very transformation of life and education of more than two interesting challenge, the roles in my life thousand employees in just the last 4 years. changed strongly; however, any change was worthy. Personally, the components to make Diversity and gender equity were also present in this my experience a success were conviction, program, since 58.5% of the participants corresponded commitment and order in all aspects of my life, to the female gender, while 41.5% were supports as a mother, wife, daughter, friendship and granted to men. work. Completing my degree has helped me to feel happy and full. In addition, it opened The program provides support to collaborators to opportunities to grow in the company, with complete the studies they have pending at different which I am grateful for the support and trust educational levels: placed on me”.

VIRGINIA DAFNE ALVAREZ CANTU ASSISTANT MANAGER IN LEASINGS High School 2009 / College 2013-2016 at Soriana University. Promoted from management assistant to Assistant Manager. Graduated Soriana University by Educational Level 2015-2018 1% 2% Participation in Program 1% Soriana University and Gender 5% 480

290 296 268 264 91% 122 240 71 Primary School College Middle School Masters

High School 2015 2016 2017 2018

Social Responsibility and Sustainability Report 2018 SORIANA 33 HEALTH AND LABOR SAFETY

As part of our values and organizational culture, the health care and safety of our employees are a priority for Soriana.

Beyond compliance with outstanding regulations, we constantly work to offer health programs that adapt to the needs of our collaborators, as well as their families. In the same way, we take security measures, generate adequate work spaces and, train collaborators to minimize potential risks.

CARE AND HEALTH CAMPAIGNS Along with the Secretariat of Health of Nuevo Leon, we implemented Fridays with health in Soriana with the purpose of bringing the health programs and services to the population through different promotion actions that encourage decision-making for the adoption of healthy habits.

In the initiative framework, promotional materials were furnished, health-related orientation was given, and PREVENIMSS PROGRAM talks were held for the prevention of different diseases Another strategy developed to provide the health in 25 branches of the State. 74 modules of jurisdiction care our collaborators deserve, we implement along 1,2,3,4 and 7 were installed, benefiting 31,080 with the Mexican Institute of Social Security (IMSS) individuals. in regard their health services to promote the care of our collaborators, through the development of As part of health care, in an equitable manner and actions of promotion, protection, treatment and health regardless of the position they occupy in Soriana rehabilitation. Organization, every collaborator has the benefit of using the health care services of 17 hospitals in 8 With a standardized process, with clear work stages, States of the Mexican Republic with significant savings this year 20,589 collaborators were assisted at due to the agreements we have formalized with each national level. one of them.

34 Thus, studies were carried out to preventively detect chronic activities in which 9,982 collaborators participated, while a vaccination campaign was developed in which 7,452 people benefited. In addition, cervical cancer screening studies were carried out on 3,182 collaborators and 2,548 mammograms to detect breast cancer.

Signature

Assessment Low Risk High risk Will grant support receive msn of capillary Agreement evaluation and facilities to the app and end glucose workers that in of process accordance with IMSS require follow- up up to 8 times a Logistics for the capillary glucose, year. cholesterol and blood pressure test.

IMSS Preventive Online survey intelligence unit application 20 <25 workers UMG Health Equipment days at home • Analyze information • Active follow-up of UMF or company. > 25 workers • Generates stratified listings UMF • Information concentration by company derivation • Submission to the Delegation for analysis

Capillary glucose screening • Confirms diagnose by lab • Schedule new appointment for evaluation an in its case start of Brigade goes to treatment and educational the company Work tables Operation and logistics Capillary glucose are defined for the abnormal online check-up. It is Company: Human Resources / union and physician instructed in the use Suspicion of Send to lab for IMSS: CPAS Representative and management of hypertension or glucose uptake UMF / Follow-up the app dyslipidemia

Social Responsibility and Sustainability Report 2018 SORIANA 35 HEALTHY EMPLOYEE PROGRAM This programs aims to carry out actions to allow us to detect risk factors to develop diseases related to the metabolic syndrome, by identifying collaborators who have values out of the normal range and, the implementation of comprehensive monitoring programs.

With the enthusiasm to promote that our collaborators have a healthy lifestyle and generate actions promoting health care with vaccination, family planning and dental care; this year 31,367 medical consultations were attended at CAD Distribution and Transportation Centers, 5,355 medical consultation at Support Offices to Stores and, 52,246 consultations with Store collaborators.

Additionally, 789 consultations and nutritional orientations were carried out, and 277 patients were attended in CEDIS Guadalajara and 909 in CEDIS Salinas.

In addition, 170,678 low-cost medical consultations were provided for our customers in consulting rooms enabled in the Thus, in 2018 we managed Stores. to contribute to the health improvement and provide options for a better life quality to 90,943 individuals.

36 3 Stores with Healthy Environment Certification

HEALTHY ENVIRONMENT CERTIFICATION This year, we started the certification process before the Health Secretariat of Nuevo Leon, of the Stores Soriana San Jeronimo and City Club San Jeronimo in Monterrey as healthy environments.

This certification aims to encourage hygienic, safe environments and promote better health, through integrated prevention and promotion actions, where the Social Determinants that influence health are identified, in order to help to reduce the main problem of public health; improving the population’s health of the communities.

With work and dedication, we closed 2018 with 2 new certified Stores to the first store that went through the process in 2016.

The certification process counts with different work stages:

Make a diagnosis of Work Site Meeting with members of the (current policies and applicable Safety and Health Committee regulations)

Training through workshops Participative work plan (actions, lifelines, correct nutrition, Activity of Problems (Objectives, goals, timing and physical activity, interpersonal Priorization in-charge of actions) relationships

Identify factor influencing Monitoring of Objectives Apply Certification Form work environments to manage proposed by the Health and (Health Personnel) necessary changes Safety Committee

Social Responsibility and Sustainability Report 2018 SORIANA 37 HEALTH AND SPECIAL PROGRAMS IN LOGISTICS AND DISTRIBUTION CENTERS

NURSERY ROOM In December we inaugurated the first Breastfeeding Room as part of the closing of the health week of the CEDIS Salinas, where pregnant and lactating were summoned to begin the use of this private space for women. The selection of the location of this first room is due to the fact that 21% of the Center’s employees are women, of them 5% are pregnant and 1% are breastfeeding.

“Soriana is committed to social work, the breastfeeding room makes us feel special, and we have the support of our heads for this activity and for the development of our babies”.

SUSANA VARGAS, QUALITY MANAGER.

”I love the place, I have used it several times and it is so nice, clean and tidy, it has privacy and there is no fear that someone interrupts you. I liked this project very much because they think about the needs that we as women have”.

CARMEN SANTIAGO, ADMINISTRATIVE AUXILIARY CAD TRANSPORTATION.

38 WORK INCLUSION PROGRAM This programs aims to provide employment “I like the project and it’s good that the opportunities for disabled people, and allow our company offers the opportunity. I’m happy employees to coexist together, share their experiences to work with them and I learn a lot because and live the commitment with the company towards they are very active.” the employment inclusion. SANDRA NOHEMI MARTINEZ AGUILAR. LABELING. The program has standardized processes from the definition of positions, the training that must be developed, the approach of the legal issued to link with the candidates, the adequacy of the facilities, the facilitation of constant training and the work with the “It is a great opportunity that Soriana is other collaborators to facilitate the learning process giving these people so they can excel and and working conditions for new entrants. become independent. Throughout a year, they are already so coupled with everyone, In 2018 we incorporated 2 other young people to work at other work stations, and coexist perform tasks in the Salinas Distribution Center, so with the rest of the coworkers”. that we currently have 3 men and 3 women, 5 with hearing impairment that support us in the role of ABY PRISCILA YOC. feeders and 1 that serves as feeders’ supervision. SUPERVISOR OF THE LABOR INCLUSION PROGRAM.

“Thanks to Soriana, this is my first job. I feel very “I would like to work in Soriana forever. This is my good and comfortable and, all of my coworkers second job, but it’s the one I like. The work is heavy, treat me with respect. I’ve been doing this job for 1 I must arrive quickly and on time, and I do it every and a half years and I want to change area”. day, but I love it. Now I want to improve myself. Thanks to Vicente Hernández Quesada (Operations EMMANUEL TAPIA CASTILLO. CEDIS SALINAS. Manager CEDIS Salinas) who supported me from my beginnings”.

CARLOS ALAN CARRILLO ESCAMILLA. CEDIS SALINAS.

Social Responsibility and Sustainability Report 2018 SORIANA 39 The Wellness Soriana Program is a strategic service designed to identify and resolve personal and work- related concerns of the collaborators and their families in the Distribution and Transportation Centers CAD.

SORIANA WELLNESS In order to inform about the activities of the program, materials with information were developed for To carry out the program, we have a toll-free telephone collaborators, posters to place in the facilities and number 01 800 161 4113 that is enabled 365 days offices, videos, flyers and a digital campaign with 24 hours a day at national level, as well as a Mobile postcards and valuable information. Application that facilitates attention access through any cell phone. OPERATING AND TECHNICAL In 2018, we treated 113 cases and provided 143 TRAININGS services, of which 83.2% respond to problems and consultations of collaborators and 16.8% come from In addition to the training provided by the Human family members. Of the consultations received, 34% Resources Area of Soriana, we develop trainings and derived from the female gender and 64% from male impart courses on operational and practical issues gender. related to needs detected in the daily work.

The services provided in the program are varied In 2018, 124,843 hours of training were providing collaborators with the possibility to solve implemented, increasing by 23.94% the hours invested different problems. in regard the previous year. 24% of participants are of the female gender, while 76% correspond to the As part of the services provided, we have the male gender. Psychological Care Program for transport employees who suffer robberies on the roads. Critical cases are 62% of the training courses were focused on channeled to the line of Soriana Wellness, and they are operational issues in order to streamline the operation engaged in seeking the psychological support required of the Work Center, such as the use and care of in the place where the affected person is located. In mobile equipment, the correct use of tools and 2018 we treated 2 cases in Oaxaca and Queretaro. work equipment, the correct assembly of platforms,

Services attended 2018 Most frequent problems in 2018 1% 16% Nutrition 18% Personal Questions about the orientation service relations 44% Legal

47% 23% Life Information / 15% 36% Personal Professional Management Resources development Assessment

40 SOCIAL DIALOGUE the importance of the cold chain, post-harvest For Soriana, the social dialogue is manifested management, technical management, as well as well through the multiple channels that make it as preventive and corrective maintenance. available to its different interest groups in order to manage the relevant issues that arise The remaining 38% was oriented to develop human every day. skills through courses such as: behavior rules, the role and contribution to the development of people One of these channels is the Direct Line, in Soriana, the attitude of service, collaborative work, through which the collaborators freely channel effective communication and time management. and without retaliation the doubts, complaints, disagreements or acts contrary to the This year, we also developed a course of Cargo Organization Ethics Code. Handling with the purpose of establishing safety and health conditions at work to avoid risks to employees With a transparent process, the received and damage to facilities by manual handling activities, reports are analyzed and resolved by through the introduction to handling and storage investigation of a specialized committee standards, ergonomics and factors of Ergonomic which sends a respond with the actions to be Risk, injuries, low back pain, correct load lifting, and performed based on its resolution. measures of prevention, security, administrative and technical control. The theoretical-practical course was In 2018 we received 1,781 reports, 15% less taught by the medical staff of CEDIS and, had the than in 2017. Of which 66% were anonymous participation of 2,429 employees, the 100% of the and 34% were direct employees of Soriana. invited to participate.

In addition, we implemented an Ergonomics course and began to perform calisthenics exercises, in which 496 employees participated, representing 70% of the total middle managers in the Logistics and Supply Chain areas.

Social Responsibility and Sustainability Report 2018 SORIANA 41 BUSINESS ETHICS

42 The ethics is the soul of Soriana materialized in principles and values that govern our actions and inspire our growth.

The operation based on ethics allow us to forge a solid and lasting company; in which all groups of interest feel included and respected, achieving healthy and lasting relationships.

Social Responsibility and Sustainability Report 2018 SORIANA 43 GOOD PRACTICES OF CORPORATE GOVERNANCE

Soriana assumes a leading role in the promotion of economic development and progress in Mexico, so we seek to be an example with honest and responsible leading.

In 2011, the Mexican Stock Exchange launched the Shareholders Sustainable IPC Index, which includes companies meeting that being listed on this stock exchange stand out in terms of sustainability.

Since then, Soriana has participated in the Finance and Board of assessment that considers the three pillars: Planning Directors Function Environment. • Questionnaire of • Social responsibility with its main interest groups Best Corporate (employees, suppliers, customers and community Practices in which they perform), • Corporate Governance.

The questionnaire of Best Practices of Corporate Governance has been very useful for the company, Assessment and Auditing Compensation as through the analysis of different topics; it has Function helped us to improve the integration and functioning Function of the Board of Directors, as well as its intermediate support Bodies.

44 Based on sustained work, we have adopted the principles of the Corporate Governance Best Practices Committee of the Business Coordinating Council:

1 2 3 4

Equal treatment The generation of The responsible The honest and and respect and economic and social emission and release responsible leading protection of the value, as well as the of information, so as of the society. interests of every consideration of third the administration shareholder. parties interested in transparency. good performance, the stability and the permanence in the time of the society.

8 7 6 5 The prevention of illicit The emission of an The disclosure of Ensuring that operations and conflicts Ethics Code of the improper acts and there is a strategic of interest. society. the protection of direction of the informants. society, as well as the surveillance and effective performance of the administration.

9 10 11 12 The exercise of The identification, Compliance with all Giving certainty the fiduciary administration, control legal provisions to and confidence responsibility and disclosure of which the company to shareholders, of the Board of the strategic risks of is subject. investors and Administration. which the company is interested parties subject. on the honest and responsible conduct of the business of the society.

Social Responsibility and Sustainability Report 2018 SORIANA 45 CUSTOMER SERVICE AND ATTENTION

The service and attention to our customers are part of the mission. That is why we are in the constant search for mechanisms and tools to maintain a cordial relationship, as well as to be attentive and follow up on the comments, understanding that is the best way to improve the quality of our service and increase the satisfaction of every shopping experience.

During 2018, through the Customers’ Attention and Service Center (CASC), we achieved to detect relevant topics of interest, in which the Organization continues working to create a positive impact in our consumers.

20,356 reports were attended in CASC of which 5.6% (1,143 reports) were of doubt and/or suggestion classifying in 82% of economics matter, 17% social and the remaining 1% related with the environment.

0.6% 5.6% 17% 1% 74.3%

Comment Economical Doubt / Suggestion Environment Congratulations Social Complaint

19.5% 82%

46 The doubts and/or suggestions received refer to 6 main issues that we have defined, and for which during 2018 we have made at least one action for its improvement:

• We encourage our collaborators in leadership positions, offering professional and personal development tools through the Soriana Woman Development Program. GENDER • We started the Beating for You Program, which aims to detect pregnancy illnesses in order to EQUITY reduce the maternal and child mortality of our collaborators in OAT Monterrey and San Mateo. • The Gender Equality Committee was formed, which will generate strategies that provide equal opportunities and an atmosphere of respect the inclusion.

• We launched the Offices free of plastic bags initiative to completely eliminate the plastic bags ALTERNATIVE USE from the Super City branches in Support Office to Stores, CEDIS Salinas and CEDIS Queretaro. OF REUSABLE • We continue with the promotion regarding the use of reusable bag through internal MATERIALS AND communication campaigns and the provision of sale points to employees and customers. BAGS

• Through our Heart Volunteers, we develop communities through commitment and participation in the different volunteering events held at every state of the country. • We started Soriana Love Your Beach, which seeks to contribute to the environmental SPACES improvement of Mexican beaches and to raise the levels of competitiveness of the different RECOVERY tourist destinations I the country with clean-up days, addressing local problems in coordination with local and/or state administrations.

• Invoicing filling standardization and simplification was achieved, leaving only the postal code and the choice of use of the CFDI. The customer receives its documents by e-mail in minutes, without the need to go to a store to make the invoice. One of the differentiating benefits INVOICING developed from the portal is that the INE complement can be made, which was previously a centralized administrative process.

• In Soriana we find the tire renewal process as a form of recycling, which while guaranteeing SUSTAINABLE the safety of our transportation, contributes to the environment care. MOBILITY / • This year we were recognized as the #38 among the 100 best transportation lines in the TRANSPORTATION country by Group T21, where the certification parameters in management, clean transport and efficiency were evaluated.

• Through our Supplier Development Area we have served around 10,400 small and NEW medium-sized potential suppliers. And compared to 2017, in 2018 we received 40% more SUPPLIERS proposals from small suppliers.

Social Responsibility and Sustainability Report 2018 SORIANA 47 From 2016 to 2018 we have received 1,636 doubts and/or suggestions, reflecting considerable increase year after year in the interest of highlighting the most convenient issues for the operation of our service, which demonstrates the trust that customers place in CASC, as well as the response capacity they perceive on behalf the Soriana work team.

Doubts / Suggestions attended in the Customers Service and Attention Center

5.6%

1.6% 0.9%

2016 2017 2018

48 RISK MANAGEMENT

At Soriana Organization we have a risk management and administration system that could have an impact on the strategic objectives of the company.

Through information collecting tools from different The risk management process is performed every sources, we analyze data, identify and evaluate year, and every type of external and internal risks potential and emerging risks to provide relevant that could have an impact on the company in the information for decision making. short, medium and long term is taken into account, integrating the Organization’s Risk Agenda. All the information received and analyzed is We have a clear and transparent process transformed into operable knowledge, thus reducing that involves different actors according to the the impact of adverse events and capitalizing the transversely of management: opportunities offered by an increasingly complex and uncertain environment.

Crisis Committee General Direction Unity of Strategic Intelligence

Finance Risks Committee Insurable Risks Committee

Information Committee Security Risks Supervision Corporate Reputation Committee at Directive Level

Direct Line Committee Ethics Committee

RISKS RISKS RISKS INTEGRATION RISKS DISCUSSION MITIGATION AND IDENTIFICATION AND ANALYSIS AND MITIGATION STRATEGY PREVENTION

Risks Monitoring

Social Responsibility and Sustainability Report 2018 SORIANA 49 The risks are classified according to its importance, among which are the following:

Environmental: Mexican or the United States economies can affect our Our main operations are concentrated in the north and business, operations results, prospects and financial central region of Mexico, and therefore an important situation. part of our income derives from stores located in those areas. Natural disasters, such as earthquakes, fires, Labor: floods, landslides, gales, heavy rains, environmental Approximately 38% of our employees are members pollution, blackouts, hurricanes, among others, can of different unions. Throughout the year we have endanger the continuity of the operation of the stores. demonstrated an excellent relationship between our employees and respective unions, managing to be Corporate: a dynamic company that has evolved according to Our control group has a majority stake in the the pace of its growth and that has the firmness to Company’s capital stock. Additionally, various continue creating a positive transformation. decisions related tour business must be confirmed by our controlling shareholders, and the delays in the Legal and Regulatory: decision making could affect the business. Our business is subject to a significant number of laws, regulations and guidelines, including those related Competitive Dynamics: to anti-corruption, money, laundering, economic We participate in a highly competitive market and competition, health, safety, as well as environmental, an increase in competition could adversely affect labor and tax issues. Legal or regulatory procedures our business. The self-service industry in Mexico is may adversely affect our financial position and featured by dynamic competition and by an increasing operations results. pressure on profit margins. Competition becomes relevant when factors such as price and, to a lesser Policy and Governance: extent, location, merchandise selection (particularly We are aware of the political changes that the country fresh products), service, store conditions and has and especially all those initiatives and regulations promotions are taken into account. that could impact our operations business results and financial situation. Economic and Financial: 100% of our income is generated in Mexico, while the success of our business is largely related to the cycles of the Mexican and US economy. Changes in the

50 10 types of risks mapped and classified

In Soriana Organization we manage every strategic risk that could affect the company objectives, Sanitary: seeking to reduce impact The threats of public health, such as the virus H1N1, of adverse events and Zika, Dengue, Severe Acute Respiratory Syndrome (SRAG) and other highly contagious illness can affect capitalize the opportunities. our Human Resources, so as the purchase patterns of our customers.

Security and Operational Continuity: Mexico has experienced a period of increased criminal activity, mainly due to organized crime. These activities, the violence associated with them and, the robbery of cargo transportation on different roads of the country could have a negative impact on the business environment in certain locations where we operate.

Social: Political, social and subversive conflicts could impact the facilities and operation of our branches and distribution centers.

Social Responsibility and Sustainability Report 2018 SORIANA 51 VALUE LINE

Soriana’s Value Line is the tool we use to promote the good behaviors and the best commercial practices.

In Soriana we consider important the opinion of every procedures, or that are in some way inconsistent with person who is part of our operation, understanding the values and ethical standards and of compliance of that a good attention to our interest groups and a good the company. business reputation depends on all those we do and work every day in the organization. The main challenge of this communication channel is to promote among the people the initiative to use it This means is useful for our collaborators, suppliers to know what happens in our operation, this gives us and customers to report real or suspicious behavior opportunities to continue improving our processes, that may mean the violation of applicable laws, as well as to detect areas of opportunity and improve rules, regulations, standards, policies and accounting communication with the different groups.

52 “The service offered by the value line is very efficient, and there was an interest in solving the doubts I have presented, even they try to locate the Soriana staff by phone so they can give attention and solution to my doubts, monitoring until knowing that they gave me an answer”.

During year 2018, Value Line has been consolidated as a ANONYMOUS reliable mean for the different interested.

This year we were able to know that the satisfaction degree of the people that used this communication mean was high, reflecting the users trust, and consequently, increasing the amount of complaints. “The help provided was excellent, Of the complaints received in 2018, 72% correspond to since what was requested was issues that involve the human resource of the company, resolved favorably in a timely followed by 18% which relate to the patrimony and, 10% manner. Thanks for counting with related to the service. this kind of channel for suppliers”.

ANONYMOUS

Complaints attended

534 460 For more information: Tel: 01 800 00 21611 Mail: [email protected] https://www.tipsanonimos.com/Soriana 259

2016 2017 2018

Social Responsibility and Sustainability Report 2018 SORIANA 53 ETHICAL PROMOTION AND RESPONSIBLE CONSUMPTION

We are aware of the responsibility we have in promoting our activities, so we comply with the applicable regulations, while acting honestly and adhering to our values.

As part of this, we contribute with the Association in Favor for the Best, an organization that seeks to improve the quality of media content, as well as creating a new culture of communication that allows healthy and creative entertainment, with accurate information.

54 Social Responsibility and Sustainability Report 2018 SORIANA 55 CAMPAIGNS OF PUBLIC INTEREST AND SOCIAL BENEFIT

In Soriana we value the SOMOS FAMILIA CON MEXICO (WE ARE choice and trust of our FAMILY WITH MEXICO) stakeholders, so we Soriana celebrates the 50th anniversary of Being Family with Mexico, a campaign that seeks to represent the values of the Mexican family, work to provide them highlighting respect for others, unit and solidarity. with the information We are part of the great family that makes up the country and we seek of our products and to contribute to its development through understanding and seeking the services in a fair and satisfaction of our customers, with special care of the context in which we transparent manner. operate and the impact of our messages. This year, we celebrate 50 years of making something special, making Mexican families available for a reason to smile. We celebrate this anniversary by pampering our customers with the best prices to make every moment of their life something special.

56 WE EVALUATE THE FAMILIA MERCADO (MERCADO FAMILY) This campaign was designed two years ago with the aim of transmitting the value of the family, projecting the importance of unity, communication, and happiness; while through the coin and the different characters that make up the family, we make our public aware of the economy, the value of goods and the importance of saving.

As part of the search for continuous improvement and innovation in the way we relate, we decided to carry out an evaluation that allows us to know the opinion of consumers about the attributes, the positioning and the commitment that the campaign generates.

To achieve this, 450 individual surveys and 6 focus Among the results achieved, it is possible to observe groups were developed in the Valley of Mexico, that 29.5 of the participants spontaneously remember Monterrey and Veracruz. The participants were the different Soriana ads and, among the most selected according a pre-designed profile, being remembered elements are the specific campaigns of relevance that they are the responsible of the (24.7%), since they manage to transmit the values purchases of their families. and attributes of the family, as well as the savings’ importance for their own benefits.

95.1% of participants said that the ads that make up the campaign are easy or very easy to understand, and 98% said they were very easy to remember because of the fun interaction that Doña Mony has with her family. In addition, 92% of surveyed consider that 9 out of 10 9 out of each 10 campaigns are 92% credible. Individuals considered the elements observed in the Mercado Family campaign credible.

Social Responsibility and Sustainability Report 2018 SORIANA 57 AHORRO A MI GUSTO (SAVINGS EL ORGULLO DE LA CASA (THE TO MY TASTE) PRIDE OF THE HOUSE) As part of the Soriana Rewards Program, we launched Through this campaign, we seek to approach our a campaign that allows our public to meet their needs, public, through the offer and promotion of products while having different saving options, get small details that proudly display our band. or big surprises, as well as taking an extern when making their purchases. In Soriana we have more than 1,300 products of our own brand and exclusive brands, covering different The campaign highlights the intention to place in the categories, such as groceries, fresh, wine, home, hands of consumers the possibility of choosing and cleaning, beauty and electronics. multiplying the option so that they can enjoy what they want at each moment of their lives. Thus, with the same quality and better price that the most recognized brands, the care of the family This type of campaign allows us to generate a direct economy is the Pride of the House. relationship with our clients, while we encourage and reward them for choosing us. In addition, we join the Hagámoslo Bien (Let’s Do It Right) movement and incorporate impact phrases into In Soriana we strive so that our public has more some of our own brand products, which promote the options to save, as well as enjoy at their own way, to example and encourage the creation of a city through their liking. the construction of a Legality Culture.

58 SPONSORSHIPS

Como parte de la vinculación entre Soriana y nuestro entorno, y en forma alineada a las actividades que realiza Soriana Fundación, apoyamos diferentes actividades de carácter social, que permiten a los diversos grupos de interés cumplir sus objetivos.

As part of the link between Soriana and our environment, Soriana’s participation as a founding gold donor, with and in line with the activities carried out by Soriana a contribution of $11,662,460 and the space of 110 Foundation, we support different activities of a social square meters intended for girls and boys of all ages nature that allow the different interest groups to achieve with products of real size and scale, are key samples their objectives. of our commitment to teach responsible consumption, sustainable and solidary, as well as encouraging This 2018 was inaugurated a project that we have been reflection on the individual, social and environmental supporting since 2010: Minisuper Soriana in Papalote consequences of consumer decisions. Museo del Niño Monterrey. This project aims to provide children with an interactive and playful space that In addition, we support through sponsorships different encourages learning through of the game. sports and cultural activities, among which are the support provided to Club Santos and the Camerata of Coahuila.

Social Responsibility and Sustainability Report 2018 SORIANA 59 LINK WITH THE COMMUNITY

In Soriana, the connection with the communities where we have a presence, as well as in those places where we can generate a change through our actions, is clear from the values, mission and vision that guide us, linking us with our stakeholders as part of the business strategy.

60 Soriana Organization celebrates 50 years of Being a Family with Mexico, and since then it has supported those who need it most. For 14 years Soriana Foundation has promoted these efforts through the work and support of all the employees that make up this great family. With the mission of socially help and contribute in the less favorable sectors of society, as well as strengthening and supporting Mexican families, the Foundation implements different social programs focused on three action areas:

Children support: Promote different initiatives that include assistance, education, health and nutrition for the development of Mexican children. In the last three years, 454,402 children have been supported.

Food: Increase the quality of life and improve the health level of people in vulnerable situations, contributing to improve food and nutrition through expert organizations. In the last 3 years, 454,864 people have been treated.

Community support: Help the neediest communities, through programs that promote access to health services, the infrastructure for the growth and strengthening of the inhabitants and the attention to vulnerable groups. In the last 3 years, 582,622 people have benefited.

Social Responsibility and Sustainability Report 2018 SORIANA 61 ACTIVE PARTICIPATION IN THE COMMUNITY

At Soriana Foundation, we understand the development of communities as a multi-sectoral process that requires the involvement and support of different sectors of society.

With the commitment to contribute to INFRASTRUCTURE AND EQUIPMENT improve the social net, our contribution is focused on the integral development of As part of the community programs of Soriana Foundation we those who participate in it. contribute to the creation and adaptation of spaces that can be used by the inhabitants to generate instances of integration, social development, coexistence and empowerment.

By 2018, we have built 5 Community Centers in the states of Jalisco, Nayarit, Guanajuato and Tamaulipas, while we continue working and making improvements according to the needs presented each year.

Thus, this year with a social investment of $232,000 through the contribution of the Soriana customers, the construction of the computer center of the Trancas en Movimiento Community Center was carried out, located in the town of Trancas, located in the Municipality of Dolores Hidalgo, in the State of Guanajuato.

In partnership with the Bajio Community Foundation, we created a space that allows the inhabitants of the community to expand their development skills and abilities through the access and use of tools that expand training options and shorten the digital divide.

62 Relation Social Investment and Benefited Institutions (millions of pesos)

124.8 113.4 110.9 institutions institutions institutions

444 425 479

2016 2017 2018

Soriana Foundation seeks to efficient the social investment and with it supports a largest number of people.

hammocks production, while the young people of YUCATAN PROJECT Chechmil community set up chicken breeding farms. In 2018, we carried out the Yucatan Project, with the objective of promoting community development Following our model of intervention and, with the support through projects to improve academic infrastructure and enthusiastic collaboration of the member of the and economic growth for the inhabitants of the community, the Public Work project was completed, community. in which 4 schools were waterproofed, and built 17 bathrooms in the Elementary School in Chechmil, The work model developed consists of different stages Preschool and Telesecundaria in Xalaú. that allow generating activities with greater social impact. And as part of the social project “Mejorando Mi Comunidad” (Improving My Community) in the community of Chechmil, we work hand in hand with the a) Environment analysis inhabitants by providing materials for the rehabilitation of DIAGNOSE b) Needs mapping a community park in which the existing children’s games also were fixed and installed new ones.

Voluntarily and with the motivation to take care of their a) Ecologic stoves DEVELOPMENT b) Local crafts common spaces, the participants worked on cleaning the OF PRODUCTIVE c) Fruit trees public space and made signs aimed to all the inhabitants PROJECTS d) Backyard farm to raise awareness about the improvements achieved.

With a social investment of $452,228.36, we carry out SCHOOL a) Priority needs different actions that facilitate the generation of changes INFRASTRUCTURE b) Additional needs in the lives of the Yucatan families. DEVELOPMENT PROJECTS In the last 3 years, with a social investment of $3,035,666 pesos, 118 families and 1 school have a) Target market benefited, and enlightened the life of 490 people from PRODUCTS b) Administration and Finance the states of Chihuahua, Tabasco and Veracruz. MARKETING c) Business link

Thus, we began the detection phase of needs of the Municipality of Chemax, with the aim of working together to transform the lives of people.

Then, we support the development of productive projects as a way to generate new income in participating families. In the Mucel community, women started the In the last 3 years, with a social investment of $3,035,666 pesos, 118 families and 1 school have benefited, and enlightened the life of 490 people from the states of Chihuahua, Tabasco and Veracruz.

DA LUZ Y BIENESTAR A TU VIDA (GIVE LIGHT “Many thanks to Colgate and AND WELNESS TO YOUR LIFE) Soriana for the help they have Through this program, Soriana Foundation favors isolated communities given us with the solar panels, that do not have access to basic services, by changing the use of candles, stoves and water filters. Thanks diesel and other sources harmful to health, by natural lighting from the to this, we now have light! I hope sun, favoring the family economy. they do not forget and they always remember us that we are in an In 2018, the company Colgate and Soriana allied to benefit the isolated place”. communities of Cañaveral and Cañaveralito, located in the municipality of Centla, in the state of Tabasco. ARMANDO OCAÑA Thanks to the donation from Colgate, a percentage of the sales of its Triple Action product in the campaign called “United For a Nice Mexico” carried out in Soriana stores and the contribution of Soriana, we benefited 34 families and 1 educational institution equipping them with solar panel, We thank God because he touched wood-saving stoves and water filters. Soriana’s heart and of all of you to give us the benefit of the solar Give Light and Wellness to your Life panels because we didn’t have light. 1,256,291 Thanks for the stove and water 1,091,874 filters. Thanks also to Colgate, because we no longer stumble and we can read the word of God at 687,500 220 night. We pray for you and may God continue giving life to all of you”. 150 120 INHABITANT OF CAÑAVERAL 50 COMMUNITY 34 35

2016 2017 2018

People Benefited Families Benefited Social investment

* The totals of years 2016 and 2018 show the placing of solar panels + ecological stoves.

64 ESTUFAS ECOLÓGICAS Program of Ecological Stoves (ECOLOGICAL STOVES) 1,074,450 During 2018 we continued with the ecological stoves program, through which we replaced the traditional stove that produce high smoke emissions causing 525,778 serious health problems, for wood-saving stoves, 408,000 which reduce their consumption by up to 60%. 1,560 In this way, while promoting the reduction of CO2 640 776 emissions into the atmosphere, the risks of suffering 390 from respiratory diseases are mitigated due to the 160 194 elimination of smoke inside homes. 2016 2017 2018 We managed to install 194 stoves that benefit 776 people in 7 communities in the states of Guanajuato, Ecological People Social Tabasco and Yucatán. Stoves Benefited Investment

From the beginning in 2012 to 2018 with social investment of $6,004,229 pesos, 10,156 people have benefited with the placement of 2,539 ecological stoves in the states of Guanajuato, Tabasco, Veracruz and Yucatan.

Social Responsibility and Sustainability Report 2018 SORIANA 65 The search for alliances allows us to maximize the impact that our programs and projects generate in the communities. That is why, in Soriana Foundation we choose our strategic allies and we form work teams in which we add to knowledge and skills to achieve the best results.

LINK WITH INSTITUTIONS

UN KILO DE AYUDA “In 1998, Soriana and Un Kilo de Ayuda joined For the past 20 years, Soriana Organization has been efforts with an ideal, that more children under 5 committed to the Un Kilo de Ayuda Organization years old in Mexico achieve the fullness of their to contribute to the full development of every physical, mental and emotional capacities. This union child in Mexico through the empowerment of early over time along with the expansion of Soriana made development through the physical, intellectual and it easier for the institution to position the brand in emotional development of the child population on the the north through the Un Kilo de Ayuda cards. first years of life.

A decade later, they consolidate their partnership by In 2018 we also accompanied the Organization in the linking a corporate social responsibility strategy with 5k, 10k race and 3k walk that were held in the second the “Échale los Kilos” campaign of Un Kilo de Ayuda, section of the Chapultepec Forest in Mexico City. which year after year has managed to involve more branches, clients and employees so that they can be interested and take ownership of the cause that both persecute, to transform Mexico from childhood.

Undoubtedly, Soriana Organization has contributed to child development of more than 300,000 children, as well as training parents and caregivers on parenting issues and improving nutrition and health of their children in the states of Chiapas, Edo. De Mexico, Guerrero, Jalisco, Pueblo, Oaxaca, Sinaloa, Yucatan and Veracruz, to have a safe, productive and prosperous country”.

YUNUEN MENDOZA AVILES, COMMUNICATION DIRECTOR, ONE KILO OF HELP.

66 TELETON For more than 10 years we have collaborated with “Talking about Soriana and the Teleton Teleton Foundation to meet the needs of children and Foundation means talking about unity, teenagers with disabilities and their families. courage, commitment and solidarity. On behalf of Teleton Foundation and the From 2008 to 2018, thanks to the collaboration thousands of families who daily find a of Soriana, its employees and customers, we have worthy option to improve their life quality, contributed $153,745,732.62 pesos that have we appreciate and acknowledge their helped to provide treatment to 4,522 children with valuable participation in the present and disabilities, the equivalent of maintaining the CRIT of future of children and teenagers with the State of Mexico (the largest in Mexico) for one year. disabilities, cancer and autism in the country. We can say with great joy that thanks to you the Teleton Event exceeded the Teleton Contributions goal, with a fundraiser that will allow us to offer pediatric rehabilitation therapies and medical services of the highest quality to more than 27,000 children and their 43% 53% 46% families by 2019. Thanks to the people that make conforms the current Soriana team, because throughout the year they 6% 6% leave their heart, effort and work in this 5% project”. 42% 51% 48% ROSSANA CORONA ROMO, ECONOMICS GENERAL DIRECTOR TELETON FOUNDATION.

2016 2017 2018

Customers Employees Soriana

Social Responsibility and Sustainability Report 2018 SORIANA 67 EDUCATION SUPPORT

The right of boys, girls and teenagers to a quality education is a fundamental item for the country development.

That is why, at Soriana Foundation we support EDUSER institutions and projects that provide an inclusive and quality education, especially for the most vulnerable In 2017, with the aim of facilitating access to and/or excluded girls and boys. As well as we promote better education for vulnerable children, Soriana access to different educational methodologies, artistic Foundation contributed to the establishment of the projects and initiatives that facilitates a more fluid Soriana Eduser school in Torreon, which has a wide articulation between all the actors of the educational schedule and provides daily food for Children to community. fully develop their potential.

While this educational project adheres to SEP’s programs, it seeks to work the intellect and character of children, highlighting the importance of perseverance, gratitude, optimism, enthusiasm, intelligence, self-control and curiosity, which make children succeed in the future.

Last year, the Institutions opened its doors to the first generation (64 children) and currently have 128 students in two academic degrees, providing continuity to the educational model promoted in 2017.

68 MÚSICA POR EL CAMBIO (MUSIC FOR THE CHANGE) Thus, since the With the aim of supporting children’s and youth musical education beginning of the projects, Soriana Foundation and Dibujando un Mañana Foundation have partnership, $1,789,792 consolidated a strategic alliance that, based on the transformative power of music, allows us to offer a better quality of life and opportunities for pesos have been development to Mexican girls, boys and young people in vulnerable invested, which have situations. benefited 2,614 Continuing the 2017 project, this year benefited 918 children who children, and 6 civil presented projects through Asociación Germinalia, A.C., Proesa Educativa por Mexico, A.C., Pro Mazahua, A.C., Jovenes Mexicanos en Movimiento, society Organizations. A.C., Crecemos – Desarrollo Integral de la Juventud Oaxaqueña, A.C., DAEA Centro de Investigación e Intervención Psicosocial, A.C., in 6 states of the Mexican Republic.

Social Responsibility and Sustainability Report 2018 SORIANA 69 EMERGENCY SUPPORT

In Soriana Organization we assume the commitment to help those who need it most, reinforcing our actions when emergencies arise. We believe it is necessary to help families and people affected by an unexpected situation to meet their basic needs, as well as what are necessary to face the scenarios they come across.

SOMOS FAMILIA CON MÉXICO Government. The beneficiary families must have suffered a total damage to the property, be the owner of the land, (WE ARE FAMILY WITH MEXICO) not having the support of another institution for the construction of the house and, collaborate in cleaning and During 2017, and in response to the earthquakes that leveling the land so that the platform is ready to start the hit the country in September, Soriana Organization construction. implemented a campaign that would help those most affected by the reconstruction of their homes. Thanks to our Customers and Soriana, we were able to benefit 112 families in the state of Oaxaca. With a social Thus, from September 21 to October 31, 2017, our investment of $13,448,373.67 pesos, the delivery of customers were invited to make donations through the their homes was made in two stages, 57 of them were cashier line in all our stores, while Soriana assumed the delivered in the month of June in the city of Ixtepec, while commitment to double the contributions received by our the remaining 55 were delivered in the city of Juchitan in customers supporting the reconstruction work. the month of September. The construction of the houses was in charge of the company Mejoramiento Integral To implement the project, the process of selecting the Asistido, S.A. de C.V. which has extensive experience in beneficiary families was monitored, and they were chosen the sector. from the list of affected people drawn up by the Federal

“We are the Santiago Gutierrez family. We are 6 in the family, we have 4 children. We live in Juchitan, in the Colony 28 de Enero. We are very grateful; we have a house and a home, a roof to give to my children. Thanks to Soriana and the people who worked in the project”.

70 112 families benefited with a new home in the state of Oaxaca

AND MORE HELP In August, September and October, heavy rains and storms hit different states of the country, causing severe floods.

Soriana Organization along with the Mexican Red Cross enabled 42 Gathering Centers in the cities of Torreon, Culiacan, Mazatlan, Los Mochis, Guadalajara, Tepic, Puerto Vallarta, Ixtlan del Rio, Santiago Ixcuintla, Escuinapa, Acaponeta, Nuevo Vallarta, Ecatepec, Naucalpan, Iztapalapa, Azcapotzalco, CDMX and Puebla, with the purpose to attend and provide help to the affected families.

On behalf of the company, there were granted donations in kind to more than 46 families of Soriana’s employees who were affected by these phenomena. “My name is Irasema Gonzalez Reyes, I’m from the City of Juchitan de Zaragoza, Oaxaca, Colony 28 de Enero. I thank Soriana, the people who buy in Soriana and God for having a home and a house. What we have lived is very tragic, there are people in this world who have helped a good cause: to build our home. Thank you very much with all my heart for giving us this opportunity”.

Social Responsibility and Sustainability Report 2018 SORIANA 71 VOLUNTEER ACTIONS

In Soriana we promote and encourage our collaborators to get involved and participated freely in the activities que make with different Organizations and in the different communities where we are present.

Our heart volunteers devote their time, skills and In addition, they voluntarily participated in the program talents exemplifying the human quality of the people Esferas de la Esperanza (Spheres of Hope), through and work teams that make up Soriana. which gifts are given to children and senior in a celebration full of emotions. During 2018, 25,347 volunteering actions were carried out, in which participants had the opportunity This year, the participation in the “Ama tu Playa” to interact with the different groups of beneficiaries, (Love your Beach) program was highlighted, in which as well as participate in various activities, such as the beaches of Punta Nizuc and Marlin in Cancun, remodeling spaces, contributing to the care and Quintana Roo were cleaned; as well as the support improvement of the environment, or participate in provided for the cleanup of La Silla River in Monterrey, instances of raising awareness about the causes Nuevo Leon, where the collaborators also had the served by our social allies. opportunity to attend a workshop about the recovery of natural environments. GENERATION OF VALUE AND INCOME

The entry of small and medium-sized suppliers into the Soriana catalog accomplished 50 years, since the opening of the first Soriana self-service shopping center opened in November 1968 in the city of Torreon, Coahuila. From then on, we worked hand in hand with the small supplier of the different communities of the country, so together contribute to improve the economy of the region with products that are liked by our customers.

The Soriana Development Program was formalized in Since the creation of the program we have served 2011, and from that date until today we have 1,770 10,403 suppliers, through the different sources and suppliers and more than 8,308 products that have collection channels that we promote. been added to the Soriana value chain throughout the country. One of them is the Soriana Service and Customer Service Center, by its acronym CASC. This Through the offer of preferential business conditions department receives all the communications that and direct advice with the supplier, we promote the our stakeholders decide to send us in written from integration and development of new supplier, who through the Web page. The CASC identified the thanks to their efforts, efficiency in their productive type of request and in the particular case of offers and administrative processes, to the quality of their of products and/or services, a format is sent to the products and a permanent promotion at the sale customer or supplier to fill it out and forward it with point, they manage to offer their products in our relevant personal and/or company and of the product stores competing openly with the great national and or service offered. Once the information is received, international brands. the CASC generates a report number for its follow- up and channels the information to the different commercial areas, while it assumes the commitment to send a response within a period of 24 to 72 hours.

Social Responsibility and Sustainability Report 2018 SORIANA 73 From January to December 2018 323 proposals from Also in 2018, we received 50 Direct Development small suppliers were received, surpassing in 40% the proposals from new suppliers, of which 33 were amount received the previous year. registered in our catalog through the different Soriana sales formats. During 2018, we have organized and participated in 5 State Pyme Fairs, 6 Business Tables and 3 external The results of the program have been very satisfactory. events where we served more than 1,300 suppliers In addition that our customers find a varied catalog that participated in business tables, state fairs, and of local, regional, national and import articles; the direct development of the Suppliers Development suppliers have the facility to offer novel products, Program. differentiated and of the typical taste of their region where they are leaders for later, placing themselves in Since the beginning of the program, a total of 48 the taste of clients of other regions of the country. PYME fairs have been held covering every state of the Mexican Republic. Currently, 856 suppliers that started in any of our events continue to supply our stores with very good sales results. Sales PYME Suppliers (Millions of pesos) 409.1 Gathering means of potential suppliers 2018 322.6 19% CASC 228.8

78% 3% Business tables, Direct Development regional fairs and external events 2016 2017 2018

74 “In 2012 we entered as small suppliers SUCCESS CASES of Soriana and the experience has been very good, as we have grown together in the region and have supported us in EL FARITO the placement of our product, in the sale Start in Soriana 2012 and promotion thereof at their stores. The same year, our production and distribution Product Corn tortillas, Flour Tortillas, Toasts increased 9%”. Scope Stores at 5 the beginning MANUEL ANTONIO CARDENAS MADERO MANAGER AND SERGIO IBARRA BARRAZA Scope Stores 9 OWNER, EL FARITO. 2018 Sales $ at the $1,297,260 beginning Sales $ 2018 $4,613,088 Impact in The supplier has generated 8 new Community jobs due to its entrance to the value chain of Soriana

“In February 2016, we entered as Soriana’s suppliers. Since its initiation has been a LAS CUMBRES challenge, and given the magnitude of Start in Soriana 2016 the customer, we decided to deliver the goods directly to the stores in order to Product Pre-cooked tortillas, toasts and learn more about the business operations, Sauces and make our service more personalized. Scope Stores at 54 We have received very good treatment the beginning from the heads of each department, head of reception and merchandise to Scope Stores 70 managers of each branch. And our product 2018 had a favorable acceptance by Soriana’s Sales $ at the $486,696 customers. The day to day has been a true beginning learning”.

Sales $ 2018 $2,920,051 ALEJANDRO DAVILA LEAL, GENERAL MANAGER EMPRESAS FARUNO, S.A. DE C.V. Impact in Generated 8 direct jobs and in 2019 Community wishes to increase to 16 jobs due to the operation growth.

Social Responsibility and Sustainability Report 2018 SORIANA 75 78.77% Has increased the sale of the small supplier in the last three years.

DASAVENA GOURMET Start in Soriana 2015 Product Grains and Seeds: Granola Scope Stores at the 3 beginning Scope Stores 2018 65 Sales $ at the beginning $48,033 Sales $ 2018 $2,476,638 Impact in Community As of its entrance to Soriana has generated more than 20 direct jobs and 14 indirect

“Dasavena has been the family recipe for more than 30 years, made with love for friends and neighbors. After the request of many to be able to buy it, we decided to market it, leaving the mother’s recipe intact! In 2010 we started in the kitchen of our house, distributing Dasavena in delicatessen shops. From our participation in the Jalisco Regional Fair 2015, we were able to enter as Soriana suppliers. The experience has been excellent. We have learned from the delivery process in store, operations processes; we were getting to know the customers of different states of the republic. The support and treatment they have given us is reflected in the growth we have had. Thank you!”.

DENISSE ALVAREZ SCHERB, GENERAL DIRECTOR DASAVENA GOURMET, S.A. DE C.V.

76 WE HIGHLIGHT REGIONAL “Thanks to this outstanding exhibition we have seen our sales increase, as people PRODUCTS quickly identify us. If you do not see us in the gondola where we regularly are, they With the aim to promote regional products, and see us in this new space. Thank you very giving the small and medium producers the possibility much for innovating and supporting us in of exhibiting their product in an outstanding way, making known our products made with we created an additional and special exhibition quality and love, and thus to reach the space located in a preferential place and with an homes of each customer of the Soriana’s institutional signage in accordance with the format of stores. Thanks for boosting regional the store. suppliers!”

Thus, while strengthening the bond of our local and LIC. KARINA GARCIA MOLINA, regional customers in acquiring products made in ASSOCIATE, KANIMI GROUP, CHIHUAHUA. their State, we help small suppliers to increase their sales volumes.

As the project launch, in 2018 the exhibition was held in 9 stores in 3 States of the Mexican Republic: Chihuahua, Campeche and Coahuila. “It is very important to have a space within the planogram of the branch for regional products, since often the customer may not imagine that we are available at any exhibition point within the corresponding category, however with the specific exhibition the final customer quickly associated the possible presence in the commercial chain of your favorite product or local bland, this automatically translated into an impulse in our sales, incidentally as it was the last Fair of Campechanos suppliers that took place in the Mega Soriana of Campeche, where we had a For more information considerable upturn in our sales numbers”.

write to [email protected] LF. NORVEL MORENO DIAZ. COMMERCIAL MANAGER. CASA RECA. CAMPECHE.

Social Responsibility and Sustainability Report 2018 SORIANA 77 CARE AND PRESERVATION OF THE ENVIRONMENT

We are convinced that caring and preserving the environment is everybody’s job. For this reason, those of us who form Soriana Organization are committed to fulfilling our work, while taking care of and respecting the environment in which we operate.

78 CARE AND PRESERVATION OF THE ENVIRONMENT

Within the framework of our Sustainability Policy we promote strategic solutions to raise awareness and reduce the 2.01% impact that our activities cause on decrease in electric the environment, as well as to make consumption in 2018 responsible use of resources.

Social Responsibility and Sustainability Report 2018 SORIANA 79 TECHNOLOGY AT THE SERVICE OF THE REDUCTION OF ENVIRONMENTAL IMPACT

As part of our daily operation, we work to identify the aspects in which we can minimize our impact. And with the use of different technologies, we put into practice different strategies that allow us to contribute to improve the life quality inside and outside the company.

ENERGY CONSUMPTION In accordance with our Sustainability Policy, the use of renewable energies and the reduction of electric power consumption are very important issues in our operations.

46.35 % During 2018, 614 business units were supplied with 711,726,765 of the total electric kilowatts / hour (kWh) of renewable electric power, avoiding the power comes from emissions of 414,226 tons of CO2 into the atmosphere. renewable sources. The implementation of savings strategies with technologies, awareness and training of our employees with the aim of reducing energy consumption has allowed us to achieve a decrease in consumption of the entire chain of 2.01% in 2018, and 5.01% compared to 2016; this

represents 81,059,480 kWh equivalents to 47,176 tons of CO2.

Fossil Energy Consumption vs. Clean Consumption of electrical energy by supply source Energy Consumption (kWh)* in kWh, Soriana 2018 391,980,992 298,373,533 2016 1,224,322,034 525,143,249 Combined Cycle 628,205,140 CFE 2017 929,842,484 711,726,763 2018 823,516,783

Clean energy consumption Fossil energy consumption 704,087,380 7,639,385 Eolic Solar *Clean energy = Solar energy + Eolic energy

80 Total Energy Consumption vs Renewable Energies Consumption* (kWh) 1,616,303,026 From 2016 to 2018 1,558,047,624 1,535,243,546 increased

81.57 % 711,726,763 the supply of 628,205,140 391,980,992 clean energies

2016 2017 2018 Total energy consumption Renewable energy consumption *Renewable energy = eolic energy + solar energy + combined cycle

EOLIC ENERGY

The main source of renewable energy that we use to Stores supplied with Eolic Energy vs supply the operation of our stores is that which uses Emissions of CO2 avoided (Tons) wind force to generate electricity. The main means to obtain it are wind turbines or windmills that transform with their blades the kinetic energy of wind into 414,225 mechanical energy. 365,615 Currently, Soriana has 3 exclusive wind farms in Tamaulipas and Parques as a consumer partner in 179,527 Oaxaca, Puebla, as well as cogeneration plants in the Bajio and Altamira. Among the most relevant are: El Porvenir Park 54 Mw, La Mesa Park 49.5 Mw, and Parque Victoria 49.5 Mw.

In 2018, 599 business units were supplied, which consumed 704,087,378 kWh in eolic energy, stores avoiding the emission of 409,779 tons of CO2, stores stores equivalent to the pollution generated by 119,818 automobiles in the same period. 307 626 599

2016 2017 2018

From 2016 to 2018

The pollution that We avoid the emission of 280,151 The year Supply of 959,367 automobiles generate 596,887 tons of CO homes 2 = in one year =

Social Responsibility and Sustainability Report 2018 SORIANA 81 From 2016 to 2018 we reduce in 20.8% our emissions of CO2 to the atmosphere.

SOLAR ENERGY In addition, as part of the equipment of our business units, an investment of $12,343,096 pesos was made We also take advantage of the energy that comes from to remodel the lighting systems of 11 Stores, which the sun as a clean energy alternative to supply our through the installation of LED technology, showed business units. an immediate reduction of more than 50% of the electricity consumption used in the lighting of stores In 2018, with a total of 15 business units with this and, consequently a reduction in emissions to the technology, it allowed us to generate 7,639,385 kWh, atmosphere. avoiding the emission of 4,446 tons of CO2 into the atmosphere. EMISSIONS

As part of our strategy to reduce CO2 emissions, EQUIPMENT AND INNOVATION we constantly monitor the impact generated by our operations. In Soriana we look for different alternatives that help us to fulfill the objective of making our operation more In 2018, as a result of the positive verification we sustainable every day. have obtained, the emissions of previous years have been recalculated to be in accordance with our current We have a Monitoring Center where energy results. consumption is measured and managed in those business units that have the technology, allowing us to accompany the stores to reduce consumption in the areas of air conditioning, refrigeration and lighting.

In 2018, an investment of $12,266,116 pesos, 32 stores were added to the monitoring and control Total of emissions CO2 system, reaching a total of 334 stores that are working under these schemes achieving a decrease in energy 1,321,405 consumption of 23,158,906 kWh, which equal to 13,478 tons of CO2 that have been avoided to emit into the atmosphere. 1,258,009 1,045,847 334 stores working under the monitoring system for energy saving. 2016 2017 2018

82 We increased 21% the amount of people trained in regard former year. ENVIRONMENTAL EDUCATION AND CULTURE

In addition to resort to technological systems of saving and methods of reducing emissions, in Soriana we consider it important to permeate the entire organization of a culture of care for the environment, through which all our collaborators understand the importance and are proactive in the preservation of our environment.

To achieve this, we developed different awareness campaigns as well as instances of present and virtual Collaborators trained in training. energy consumption

The courses and manuals for the staff of each work unit under the “Vamos a Ahorrar Juntos” (Let’s Save Together) 5,640 Campaign were installed in Soriana University Platform 4,449 (UVSOR) with the objective of training 5,104 collaborators achieving a scope of 87% of the staff sensitized in the 122 correct consumption of energy by means of the approach of the strategies of use based in schedules and costs, correct operative practices in store as well as to prepare them to construe the graphical report sent every week, which shows 2016 2017 2018 their consumption profiles of heating, ventilation and air conditioning (HVAC) and lighting which expose detours and opportunity areas. Training Modality 2018 In 2018, 5,640 collaborators were trained in responsible energy consumption, correct practices in store operation, optimal use of energy, practices to promote the environment 7% care, among others. Presence Modality 93% Virtual Modality

informe de responsabilidad social y sostenibilidad 2018 SORIANA 83 5,500 collaborators trained for the correct energy consumption.

CAMPAÑA “VAMOS A AHORRAR JUNTOS” (“LET’S SAVE “The SEM HUNT Monitoring Program is an TOGETHER” CAMPAIGN) excellent and easy to understand tool that We have been implementing this campaign for 2 helps us monitor energy consumption in years, which seeks to sensitize employees to the the store and take immediate action. We correct consumption of energy, through the use of learned that it is very important to review strategies approach based on schedules and costs, how work teams are working, and to give correct operating practices in store, the interpretation maintenance. Work plans must be made of graphic reports sent every week as part of the to carry out period reviews to the teams, consumption monitoring in stores and, all the verify the switching on and off of the necessary tools so that they can use the energy more lighting time and, follow the refrigerating efficient in the different roles they occupy. procedures. We have to take advantage of natural light to the fullest, as well as being In person, 292 employees were trained with a scope of aware of the fact that camera doors are 146 stores, while 5,104 employees of 334 stores were not open, etc. To achieve these savings, it added to the campaign through online training. was essential to raise awareness among the staff and apply the best practices of Thus, around 5,500 employees of 600 business units the experts’ team. I encourage my team have been trained since the creation of the campaign. to achieve the established savings goals, highlighting that while saving, we all This campaign is added to the efforts made through obtain benefits including a greater profit the Monitoring Center, accompanying the stores in sharing, bonuses, among others”. the monitoring and analysis of energy consumption, detours and opportunity areas, significantly reducing JORGE LUIS GUZMAN SANTIAGO. consumption in the business units. MANAGER. BRANCH 521, SORIANA.

84 ALTERNATIVE EXPLOITATION

For Soriana, the generation of by-products or industrial waste in the different stages of the processes of our operation in an opportunity to contribute to the care and preservation of the Environment.

All the by-products have a high SUB-PRODUCTS potential to be used in different processes that include their Among the recyclable and/or usable materials are: plastic, paper and reuse for the elaboration of new cardboard, metals and the organic; these wastes are susceptible to be products, contributing added incorporated into productive processes or to be reused in their original value to the original products and function or in some related one, through processes of adaptation and/or recovering altered environmental transformation. conditions. At Soriana, we identify depleted and non-depleted by-products to comply We are aware that our work brings with the established procedures and contribute so that every Store involved great benefits to our environment, in the control, monitoring and placement of said materials so they can be used interest groups and the company, for different usages. promoting the recovery and reprocessing of products and by- We have a very simple collection process that allows us to reach the goals products. that we propose year after year taking advantage of the return of our transports to our Distribution Centers.

The entire by-product collect must be concentrated in the respective collection sites that GATHER are duly identified in the reception area, allowing keeping track of them.

All the by-product must be ordered according to its type to be compacted or tied according to ORDER what the catalog of by-products indicates.

It must verify: • The weight or quantities of the different by-products. VERIFY • That it is not contaminated with other material that does not correspond to the by-product to be sent. • That all material sent is labeled with store number, weight or units and its control number. • That all control reviews have been made on the by-products that leave the store.

The sale of the by-products for the store is specified when it is collected by the carrier and sent SALE to its respective Distribution Center.

Social Responsibility and Sustainability Report 2018 SORIANA 85 RECYCLE During 2018, Soriana contributed in the preservation of the environment through the recycling of 73,247 tons of cardboard and 4,403 tons of plastic, equivalents to:

ENERGY DEVIATED ENERGY AVOIDED SAVED WASTE SAVED EMISSIONS 92,304 280,997 758,012 457,700

Number of houses that Equivalent number of Mw-h Tons of CO2e would be fed during people generating waste one year for a year

TREES WATER PETROLEUM BTU’S SAVED SAVED SAVED SAVED 1,327,411 33,863 1,259,590 2,598,038 Trees of 11 meters Millions of gallons Barrels of Millions petroleum BTU

From 2016 to 2018 through our recycling processes we have 220,250 11,645 tons of cardboard tons of achieved to recycle: plastic STF

86 ENVIRONMENTAL IMPACT AND TRANSPORTATION

The Distribution CAD Transports is in charge to perform one of the most important activities for Soriana: the move and transport of merchandise from the of fresh of Soriana 13 Distribution Centers to the Stores, keeping a close relation with counts with the suppliers and customers. refrigerated second This important link of the supply chain and Soriana logistics counts largest fleet of Mexico, with a motor fleet of 439 Equipment and 595 trailer equipment at Soriana’s service, that allows having presence throughout the and the third most national territory and servicing the 813 stores of Soriana. important fleet of dry. In 2018 we traveled 42,137,435 kilometers distributed in 59,202 trips that allowed us to deliver 678,277 tons of fresh products with a yield of 3.10 liters of fuel per kilometer traveled, increasing the yield 0.29 liters per kilometer in comparison with the previous year. Amount of trips vs millions of Kms. traveled

Trips Kilometers 42.1 42.0 trips trips 59,202 59,918

2017 2018

Social Responsibility and Sustainability Report 2018 SORIANA 87 OPERATORS TRAINING As tools to strengthen the curriculum, we have a Mechanical Laboratory where there are different parts In 2004 we created the Operators School with the of a truck chassis with the aim of practically instructing purpose to provide training to operators to develop the operators so that they maintain their unit in optimal the attitudes, knowledge and skills required to operate conditions through the familiarization of the operation a 5th Wheel Truck, and thus ensure the delivery of of the main systems and components that make up perishable goods to Soriana’s Commercial Centers with their unit, as well as the basic recommendations and reliability. diagnosis for troubleshooting.

Through instances that contemplate bringing the In addition, in 2018 we developed a Simulator that Soriana’s values to each professional driver, courses allows operators in training to gain practical experience of human development, technical training and practice on the conditions of the vehicles, the circumstances are implemented so that operators have the necessary according to the environmental condition, the tools to cope with any situation. programming of breakdowns and climatic conditions.

As part of the training process, the certification From its creation to the present, 168 generations and medical examination course is included by the have graduated with a staff of 490 operators in the Secretariat of Communications and Transportation, bases that the school has in Chihuahua, Cuautitlan, an essential requirement to grant the federal license, Guadalajara, Hermosillo, Queretaro, Salinas Victoria, which are monitored by the Operations Training Tijuana and Villahermosa, reaching 78% of the Department. operators’ workforce.

Once it is completed the 3-month stage with its license 99 operators graduated in 2018, with an increase of filing and medical examination, a final evaluation is 62.3% in relation to the previous year. In addition, at carried out with the instructor, with the intention of the Salinas Victoria base, we have the participation of certifying the operator as suitable, and become a female staff in the Operators School, where 3 female Soriana operator. collaborators graduated, with an 8% participation of the total number of participating operations in said place.

“I joined the Operators Training School in 2012, and I am currently traveling the long routes. I did not know how to handle the changes of a tract truck, or how to use the directional. Today I feel comfortable working for Soriana and with much respect for the collaborators. I have known different cities and part of the inside of the Mexican Republic, thanks to the effort, spirit and support of Soriana through the instructors and the administrative area”.

FIDEL RIVERA HERNANDEZ. CAD TRANSPORTS OPERATOR.

88 “I’m from the State of Chiapas and I arrived in Nuevo Leon looking for opportunities to improve my family’s income. I started from below, I was growing and I saw the operator work as an opportunity to improve. I feel very good when I’m doing this work, and although it’s usually for men, I like it and I think all women can do it. In my family I have uncles and brothers who are dedicated to transport and that motivated me. My family, children and husband, who are still in Chiapas are very proud of me and of what I do. Sometimes on the road they greet me and in the stores they congratulate me on how I park. We all have the ability to do so, and Soriana gave me the opportunity to participate in the Training School and join as Operator. I feel very proud to belong to this company”.

LAURA PATRICIA SOLIS SANTIAGO. CAD TRANSPORTS OPERATOR.

RENEWAL TIRE PROGRAM The tires renewal is an industrial process that, through the use of modern technology, efficient and safe, is achieved to prolong the useful life of a worn original tire. Thus, after inspection and repairing the tire if necessary, a new track is placed by temperature, pressure and time.

In Soriana we find the tire renewal process as a form of recycling, which guarantees the safety of our transport and contributes to the environment care, as well as generating savings for the company.

RECOGNITION In the framework of the eleventh edition of the top 100 of Autotransporte® Group T21 made the first delivery of the “Transportation Awards”, to highlight the sector’s companies that were included in this list, which over time has become a benchmark in the industry.

Thus, in 2018 we were recognized as the #38 place among the 100 best transportation lines in the country.

4,303 Amount of Renewed Tires Tires renewed in the last three years, which 2016 1,292 generates saving of 244,410.4 liters of petroleum, and a cost reduction of 45%, 2017 1,195 compared with the purchase of new tires. 2018 1,816

Social Responsibility and Sustainability Report 2018 SORIANA 89 INDEX OF APPLICABLE STANDARDS

PARAGRAPH OF REPORT/SUBJECT STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 0. CONTENT --- • Standard GRI 102: General Content 2016. Practices ------for the reports making. Content 102-50: Period matter of report • Standard GRI 102: General Content 2016. Practices for the reports making. Content 102-53: Contact point for questions of the report. 1. SORIANA ORGANIZATION Profile and Presence • Standard GRI 102: General Contents 2016. Profile • ODS 16: Peace, justice and solid institutions of the Organization. Content 102-1: Name of Organization. • Standard GRI 102: General Contents 2016. Profile of the Organization. Content 102-3: Location of headquarters. • Standard GRI 102: General Contents 2016. Profile of the Organization Content 102-4: Location of operations. • Standard GRI 102: General Contents 2016. Profile of the Organization. Content 102-7: Size of Organization Mission, Vision and Values • Standard GRI 102: General Contents 2016. Ethics • ODS 16: Peace, justice and solid institutions. --- and Integrity. Content 102-16: Values, principles, standards and behavior rules. General numeral and important figures • Standard GRI 102: General Contents 2016. Profile • ODS 8: Decent work and economic growth. --- of the Organization. Content 102-7: Size of • ODS 9: Industry, innovation and infrastructure. organization. • ODS 16: Peace, justice and solid institutions. • Standard GRI 102: General Contents 2016. Practices for the reports making. Content 102-45: Entities included in the consolidated financial statements. • Standard GRI 102: Economical performance 2016. Content 201-1: Direct Economic value generated and distributed. 2. MESSAGE OF THE GENERAL DIRECTOR --- • Standard GRI 102: General Contents 2016. Strategy. • ODS 16: Peace, justice and solid institutions. Fundamental matter: Organization Governance. Content 102-14: Statement of senior executives responsible of the decisions making. • Standard GRI 102: General Contents 2016. Strategy. Content 102-15: Impacts, risks and main opportunities.

90 PARAGRAPH OF REPORT/SUBJECT STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 0. CONTENT --- • Standard GRI 102: General Content 2016. Practices ------for the reports making. Content 102-50: Period matter of report • Standard GRI 102: General Content 2016. Practices for the reports making. Content 102-53: Contact point for questions of the report. 1. SORIANA ORGANIZATION Profile and Presence • Standard GRI 102: General Contents 2016. Profile • ODS 16: Peace, justice and solid institutions of the Organization. Content 102-1: Name of Organization. • Standard GRI 102: General Contents 2016. Profile of the Organization. Content 102-3: Location of headquarters. • Standard GRI 102: General Contents 2016. Profile of the Organization Content 102-4: Location of operations. • Standard GRI 102: General Contents 2016. Profile of the Organization. Content 102-7: Size of Organization Mission, Vision and Values • Standard GRI 102: General Contents 2016. Ethics • ODS 16: Peace, justice and solid institutions. --- and Integrity. Content 102-16: Values, principles, standards and behavior rules. General numeral and important figures • Standard GRI 102: General Contents 2016. Profile • ODS 8: Decent work and economic growth. --- of the Organization. Content 102-7: Size of • ODS 9: Industry, innovation and infrastructure. organization. • ODS 16: Peace, justice and solid institutions. • Standard GRI 102: General Contents 2016. Practices for the reports making. Content 102-45: Entities included in the consolidated financial statements. • Standard GRI 102: Economical performance 2016. Content 201-1: Direct Economic value generated and distributed. 2. MESSAGE OF THE GENERAL DIRECTOR --- • Standard GRI 102: General Contents 2016. Strategy. • ODS 16: Peace, justice and solid institutions. Fundamental matter: Organization Governance. Content 102-14: Statement of senior executives responsible of the decisions making. • Standard GRI 102: General Contents 2016. Strategy. Content 102-15: Impacts, risks and main opportunities.

Social Responsibility and Sustainability Report 2018 SORIANA 91 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 3. MANAGEMENT OF SOCIAL RESPONSIBILITY Our Model of Social Responsibility • Standard GRI 102: General Content 2016. Profile The SDG´s are linked directly with the Social • Fundamental matter: Organization Governance. of organization. Content 102-11: Precautionary Responsibility Model and Soriana´s Sustainability • Fundamental matter: Human Rights. principle or approach. Policy. • Fundamental matter: Labor Practices. • Standard GRI 102: General Content 2016. Ethics • Fundamental matter: Environmental. and integrity. Content 102-16: Values, principles, • Fundamental matter: Fair operation practices. standards and behavior normativities. • Fundamental matter: Consumer issues. • Standard GRI 102: General Content 2016. Content • Fundamental matter: Active participation and 102-21: Consultation to interest groups on development of the community. economic, environmental and social issues. Sustainability and Energy Committee • Standard GRI 102: General Content 2016. Governance. Content 102-19: Authority Delegation. • Standard GRI 102: General Content 2016. Governance. Content 102-20: Responsibility at executive level of economic, environmental and social issues.

Public Commitment • Standard GRI 102: General Content 2016. • Fundamental matter: Consumer issues. Issue 1: Governance. Content 102-21: Consultation to fair practices of marketing, objective and impartial interest groups on economic, environmental and information and fair contracting practices. social issues. • Fundamental matter: Consumer issues. Issue 7: education and awareness. • Fundamental matter: Fair operation practices. Issue 4: Promote the social responsibility in the value chain. 4. LIFE QUALITY IN THE COMPANY Employability • Standard GRI 102: General Content 2016. Content • ODS 5: Gender equality. • Fundamental matter: Human rights. Issue 5: 102-41: Agreements of collective negotiation. • ODS 8: Decent work and economic growth. discrimination and vulnerable groups. • Standard GRI 405: Diversity and equality of • ODS 10: Reduction of inequalities. • Fundamental matter: Human rights. Issue 7: opportunities 2016. Content 405-1: Diversity in economic, social and cultural rights. government bodies and employees. • Fundamental matter: Human rights. Issue 8: principles and fundamental rights in the work. • Fundamental matter: Human rights. Issue 1: work and labor relations. Human Development • Standard GRI 404: Formation and teaching 2016. • ODS 8: Decent work and economic growth. • Fundamental matter: Human rights. Issue 1: due Content 404-2: Programs to improve the employees’ • ODS 10: Reduction of inequalities. diligence. skills and transition assistance programs. • Fundamental matter: Human rights. Issue 7: • Standard GRI 404: Formation and teaching 2016. economic, social and cultural rights. Content 404-3: Percentage of employees receiving • Fundamental matter: Labor practices. Issue 5: human periodic evaluations. development and training in the work place. Soriana Culture • Standard GRI 102: General Content 2016. Ethics • ODS 4: Quality education. and integrity. Content 102-16: Values, principles, • ODS 5: Gender equality. standards and behavior normativities. • ODS 16: Peace, justice and solid institutions. Training for the work • Standard GRI 404: Formation and teaching 2016. • ODS 4: Quality education. Content 404-1: Average training hour per year per • ODS 5: Gender equality. employee. • ODS 8: Decent work and economic growth.

92 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 3. MANAGEMENT OF SOCIAL RESPONSIBILITY Our Model of Social Responsibility • Standard GRI 102: General Content 2016. Profile The SDG´s are linked directly with the Social • Fundamental matter: Organization Governance. of organization. Content 102-11: Precautionary Responsibility Model and Soriana´s Sustainability • Fundamental matter: Human Rights. principle or approach. Policy. • Fundamental matter: Labor Practices. • Standard GRI 102: General Content 2016. Ethics • Fundamental matter: Environmental. and integrity. Content 102-16: Values, principles, • Fundamental matter: Fair operation practices. standards and behavior normativities. • Fundamental matter: Consumer issues. • Standard GRI 102: General Content 2016. Content • Fundamental matter: Active participation and 102-21: Consultation to interest groups on development of the community. economic, environmental and social issues. Sustainability and Energy Committee • Standard GRI 102: General Content 2016. Governance. Content 102-19: Authority Delegation. • Standard GRI 102: General Content 2016. Governance. Content 102-20: Responsibility at executive level of economic, environmental and social issues.

Public Commitment • Standard GRI 102: General Content 2016. • Fundamental matter: Consumer issues. Issue 1: Governance. Content 102-21: Consultation to fair practices of marketing, objective and impartial interest groups on economic, environmental and information and fair contracting practices. social issues. • Fundamental matter: Consumer issues. Issue 7: education and awareness. • Fundamental matter: Fair operation practices. Issue 4: Promote the social responsibility in the value chain. 4. LIFE QUALITY IN THE COMPANY Employability • Standard GRI 102: General Content 2016. Content • ODS 5: Gender equality. • Fundamental matter: Human rights. Issue 5: 102-41: Agreements of collective negotiation. • ODS 8: Decent work and economic growth. discrimination and vulnerable groups. • Standard GRI 405: Diversity and equality of • ODS 10: Reduction of inequalities. • Fundamental matter: Human rights. Issue 7: opportunities 2016. Content 405-1: Diversity in economic, social and cultural rights. government bodies and employees. • Fundamental matter: Human rights. Issue 8: principles and fundamental rights in the work. • Fundamental matter: Human rights. Issue 1: work and labor relations. Human Development • Standard GRI 404: Formation and teaching 2016. • ODS 8: Decent work and economic growth. • Fundamental matter: Human rights. Issue 1: due Content 404-2: Programs to improve the employees’ • ODS 10: Reduction of inequalities. diligence. skills and transition assistance programs. • Fundamental matter: Human rights. Issue 7: • Standard GRI 404: Formation and teaching 2016. economic, social and cultural rights. Content 404-3: Percentage of employees receiving • Fundamental matter: Labor practices. Issue 5: human periodic evaluations. development and training in the work place. Soriana Culture • Standard GRI 102: General Content 2016. Ethics • ODS 4: Quality education. and integrity. Content 102-16: Values, principles, • ODS 5: Gender equality. standards and behavior normativities. • ODS 16: Peace, justice and solid institutions. Training for the work • Standard GRI 404: Formation and teaching 2016. • ODS 4: Quality education. Content 404-1: Average training hour per year per • ODS 5: Gender equality. employee. • ODS 8: Decent work and economic growth.

Social Responsibility and Sustainability Report 2018 SORIANA 93 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 Health and Labor Safety --- • ODS 3: Health and wellness. • Fundamental matter: Human rights. Issue 7: • ODS 5: Gender equality. economic, social and cultural rights. • ODS 8: Decent work and economic growth • Fundamental matter: Human rights. Issue 8: principles and fundamental rights in the work. • Fundamental matter: Labor practices. Issue 2: Work conditions and social protection. • Fundamental matter: Labor practices. Issue 4: Occupational health and safety. Health and Special Programs in Logistics and --- Distribution Centers Social Dialogue • Standard GRI 102: General Content 2016. Ethics and • ODS 8: Decent work and economic growth. • Fundamental matter: Human rights. Issue 4: integrity. Content 102-17: Assessment and ethical • ODS 16: Peace, justice and solid institutions. complaints resolution. concerns mechanisms. • Fundamental matter: human rights. Issue 6: civil and politic rights.

5. BUSINESS ETHICS Good practices of Corporate Governance • Standard GRI 102: General Content 2016. • ODS 8: Decent work and economic growth. • Fundamental matter: Organization governance. Governance. Content 102-18: Governance structure. • ODS 10: Reduction of inequalities. • Fundamental matter: complaints resolution. • Standard GRI 102: General Content 2016. • ODS 16: Peace, justice and solid institutions. • Fundamental matter: Consumer issues. Issue Governance. Content 102-21: Consultation to 4: services of customer attention, support and interest groups on economic, environmental and complaints resolution and controversies. social issues. • Fundamental matter: Consumer Issues: Issue 5: protection and privacy of consumer data.

Customers Service and Attention • Standard GRI 102. General Content 2016. • Fundamental matter: Human rights. Issue 4: Governance. Content 102-21: Consultation to complaints resolution. interest groups on economic, environmental and • Fundamental matter: Consumer issues. Issue social issues. 4: services of customer attention, support and complaints resolution and controversies. Risks Management • Standard GRI 102: General Content 2016. • Fundamental matter: Organization governance. Organization Profile. Content 102-11: Precautionary • Fundamental matter: Human Rights. principle or approach. • Fundamental matter: Labor Practices. • Standard GRI 201: Economical performance 2016. • Fundamental matter: Environmental. Content 201-2: Financial implications and other risks • Fundamental matter: Fair operation practices. and opportunities arising from climate change. • Fundamental matter: Consumer issues. • Fundamental matter: Active participation and development of the community. Value Line • Standard GRI 102: General Content 2016: Ethics and • Fundamental matter: Human Rights. Issue 6: civil and integrity. Content 102-17: Assessment and ethical politic rights. concerns mechanisms. • Fundamental matter: Fair operation practices. Issue 1: anti-corruption. • Fundamental matter: Labor practices. Issue 3: Social dialogue. 6. ETHICAL PROMOTION AND RESPONSIBLE CONSUMPTION Campaigns of public interest and social benefit --- • ODS 5: Gender equality • Fundamental matter: Consumer issues. Issue 1: fair marketing practices, objective and impartial information y fair contracting practices. • Fundamental matter: Consumer issues. Issue 3: sustainable consumption. • Fundamental matter: Consumer issues. Issue 7: education and awareness.

94 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 Health and Labor Safety --- • ODS 3: Health and wellness. • Fundamental matter: Human rights. Issue 7: • ODS 5: Gender equality. economic, social and cultural rights. • ODS 8: Decent work and economic growth • Fundamental matter: Human rights. Issue 8: principles and fundamental rights in the work. • Fundamental matter: Labor practices. Issue 2: Work conditions and social protection. • Fundamental matter: Labor practices. Issue 4: Occupational health and safety. Health and Special Programs in Logistics and --- Distribution Centers Social Dialogue • Standard GRI 102: General Content 2016. Ethics and • ODS 8: Decent work and economic growth. • Fundamental matter: Human rights. Issue 4: integrity. Content 102-17: Assessment and ethical • ODS 16: Peace, justice and solid institutions. complaints resolution. concerns mechanisms. • Fundamental matter: human rights. Issue 6: civil and politic rights.

5. BUSINESS ETHICS Good practices of Corporate Governance • Standard GRI 102: General Content 2016. • ODS 8: Decent work and economic growth. • Fundamental matter: Organization governance. Governance. Content 102-18: Governance structure. • ODS 10: Reduction of inequalities. • Fundamental matter: complaints resolution. • Standard GRI 102: General Content 2016. • ODS 16: Peace, justice and solid institutions. • Fundamental matter: Consumer issues. Issue Governance. Content 102-21: Consultation to 4: services of customer attention, support and interest groups on economic, environmental and complaints resolution and controversies. social issues. • Fundamental matter: Consumer Issues: Issue 5: protection and privacy of consumer data.

Customers Service and Attention • Standard GRI 102. General Content 2016. • Fundamental matter: Human rights. Issue 4: Governance. Content 102-21: Consultation to complaints resolution. interest groups on economic, environmental and • Fundamental matter: Consumer issues. Issue social issues. 4: services of customer attention, support and complaints resolution and controversies. Risks Management • Standard GRI 102: General Content 2016. • Fundamental matter: Organization governance. Organization Profile. Content 102-11: Precautionary • Fundamental matter: Human Rights. principle or approach. • Fundamental matter: Labor Practices. • Standard GRI 201: Economical performance 2016. • Fundamental matter: Environmental. Content 201-2: Financial implications and other risks • Fundamental matter: Fair operation practices. and opportunities arising from climate change. • Fundamental matter: Consumer issues. • Fundamental matter: Active participation and development of the community. Value Line • Standard GRI 102: General Content 2016: Ethics and • Fundamental matter: Human Rights. Issue 6: civil and integrity. Content 102-17: Assessment and ethical politic rights. concerns mechanisms. • Fundamental matter: Fair operation practices. Issue 1: anti-corruption. • Fundamental matter: Labor practices. Issue 3: Social dialogue. 6. ETHICAL PROMOTION AND RESPONSIBLE CONSUMPTION Campaigns of public interest and social benefit --- • ODS 5: Gender equality • Fundamental matter: Consumer issues. Issue 1: fair marketing practices, objective and impartial information y fair contracting practices. • Fundamental matter: Consumer issues. Issue 3: sustainable consumption. • Fundamental matter: Consumer issues. Issue 7: education and awareness.

Social Responsibility and Sustainability Report 2018 SORIANA 95 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 Sponsorships --- • ODS 10: Reduction of inequalities. • Fundamental matter: Active participation and community development. Issue 2: education and culture. • Fundamental matter: Human rights. Issue 7: economic, social and cultural rights. 7. LINK WITH THE COMMUNITY Active participation in the community • Standard GRI 203: Economic indirect impacts 2016. • ODS 1: End of poverty • Fundamental matter: Human rights. Issue 7: Content 203-1: Investment in infrastructure and • ODS 2: Hunger zero. economic, social and cultural rights. supported services. • ODS 3: Health and wellness. • Fundamental matter: Active participation and • Standard GRI 203: Indirect economic impacts • ODS 5: Gender equity. community development. Issue 1: active participation 2016. Content 203-2: Significant indirect economic • ODS 7: Affordable and non-polluting energy of the community. impacts. • ODS 8: Decent work and economic growth. • Fundamental matter: Active participation and • Standard GRI 413: Local communities 2016. Content • ODS 9: Industry, innovation and infrastructure. community development. Issue 3: employment 413-1: Operations with participation of local • ODS 10: Reduction of inequalities. creation and development of skills. community, impact assessments and development • ODS 11: Sustainable cities and communities. • Fundamental matter: Active participation and programs. • ODS 17: Alliances to achieve goals. community development. Issue 4: development and access to technology. • Fundamental matter: Active participation and community development. Issue 5: wealth and income generation. • Fundamental matter: Active participation and community development. Issue 7: Social investment. Link with Institutions --- • ODS 1: End of poverty • Fundamental matter: Human rights. Issue 7: • ODS 2: Hunger zero. economic, social and cultural rights. • ODS 3: Health and wellness. • Fundamental matter: Active participation and • ODS 5: Gender equity. community development. Issue 2: education and • ODS 10: Reduction of inequalities. culture. • ODS 13: Action for the weather. • Fundamental matter: Active participation and • ODS 11: Sustainable cities and communities. community development. Issue 6: health. • ODS 17: Alliances to achieve goals • Fundamental matter: Active participation and community development. Issue 7: social investment. Support to education --- • ODS 4: Quality education. • Fundamental matter: Human rights. Issue 7: • ODS 10: Reduction of inequalities. economic, social and cultural rights. • Fundamental matter: Active participation and community development. Issue 2: education and culture. Support to emergencies --- • ODS 1: End of poverty. • Fundamental matter: Human rights. Issue 1: due • ODS 9: Industry, innovation and infrastructure. diligence. • Fundamental matter: Active participation and community development. Issue 7: social investment. Volunteer Actions --- • ODS 1: End of poverty. • Fundamental matter: Human rights. Issue 1: due • ODS 10: Reduction of inequalities. diligence. • ODS 14: Submarine Life. • Fundamental matter: Active participation and • ODS 15: Life of terrestrial ecosystems. community development. Issue 1: active participation of the community. • Fundamental matter: Environmental. Issue 4: Environmental protection, biodiversity and restoration of natural habitats.

96 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 Sponsorships --- • ODS 10: Reduction of inequalities. • Fundamental matter: Active participation and community development. Issue 2: education and culture. • Fundamental matter: Human rights. Issue 7: economic, social and cultural rights. 7. LINK WITH THE COMMUNITY Active participation in the community • Standard GRI 203: Economic indirect impacts 2016. • ODS 1: End of poverty • Fundamental matter: Human rights. Issue 7: Content 203-1: Investment in infrastructure and • ODS 2: Hunger zero. economic, social and cultural rights. supported services. • ODS 3: Health and wellness. • Fundamental matter: Active participation and • Standard GRI 203: Indirect economic impacts • ODS 5: Gender equity. community development. Issue 1: active participation 2016. Content 203-2: Significant indirect economic • ODS 7: Affordable and non-polluting energy of the community. impacts. • ODS 8: Decent work and economic growth. • Fundamental matter: Active participation and • Standard GRI 413: Local communities 2016. Content • ODS 9: Industry, innovation and infrastructure. community development. Issue 3: employment 413-1: Operations with participation of local • ODS 10: Reduction of inequalities. creation and development of skills. community, impact assessments and development • ODS 11: Sustainable cities and communities. • Fundamental matter: Active participation and programs. • ODS 17: Alliances to achieve goals. community development. Issue 4: development and access to technology. • Fundamental matter: Active participation and community development. Issue 5: wealth and income generation. • Fundamental matter: Active participation and community development. Issue 7: Social investment. Link with Institutions --- • ODS 1: End of poverty • Fundamental matter: Human rights. Issue 7: • ODS 2: Hunger zero. economic, social and cultural rights. • ODS 3: Health and wellness. • Fundamental matter: Active participation and • ODS 5: Gender equity. community development. Issue 2: education and • ODS 10: Reduction of inequalities. culture. • ODS 13: Action for the weather. • Fundamental matter: Active participation and • ODS 11: Sustainable cities and communities. community development. Issue 6: health. • ODS 17: Alliances to achieve goals • Fundamental matter: Active participation and community development. Issue 7: social investment. Support to education --- • ODS 4: Quality education. • Fundamental matter: Human rights. Issue 7: • ODS 10: Reduction of inequalities. economic, social and cultural rights. • Fundamental matter: Active participation and community development. Issue 2: education and culture. Support to emergencies --- • ODS 1: End of poverty. • Fundamental matter: Human rights. Issue 1: due • ODS 9: Industry, innovation and infrastructure. diligence. • Fundamental matter: Active participation and community development. Issue 7: social investment. Volunteer Actions --- • ODS 1: End of poverty. • Fundamental matter: Human rights. Issue 1: due • ODS 10: Reduction of inequalities. diligence. • ODS 14: Submarine Life. • Fundamental matter: Active participation and • ODS 15: Life of terrestrial ecosystems. community development. Issue 1: active participation of the community. • Fundamental matter: Environmental. Issue 4: Environmental protection, biodiversity and restoration of natural habitats.

Social Responsibility and Sustainability Report 2018 SORIANA 97 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 Value and income generation • Standard GRI 102: General Contents 2016. • ODS 1: End of poverty. • Fundamental matter: Fair operation practices. Issue 4: Organization Profile. Content 102-9: Supply chain. • ODS 8: Decent work and economic growth. promote social responsibility in the value chain. • Standard GRI 203: Indirect economic impacts • ODS 9: Industry, innovation and infrastructure. • Fundamental matter: Active participation and 2016. Content 203-2: Significant indirect economic • ODS 10: Reduction of inequalities. community development. Issue 3: employment impacts. • ODS 11: Sustainable cities and communities. creation and skills development. • Standard GRI 204: Acquisition practices 2016. • ODS 12: Responsible consumption and production. • Fundamental matter: Active participation and Content 204-1: Average in expense in local community development. Issue 5: wealth and income suppliers. generation. 8. ENVIRONMENTAL CARE AND PRESERVATION Technology at the service of the reduction of • Standard GRI 201: Economic performance 2016. • ODS 3: Health and wellness. • Fundamental matter: Environmental. Issue 1: environmental impact Content 201-2: Financial implications and other risks • ODS 7: Affordable and non-polluting energy Pollution prevention. and opportunities arising from climate change. • ODS 8: Decent work and economic growth. • Fundamental matter: Environmental. Issue 2: • Standard GRI 302: Energy 2016. Content 302-1: • ODS 9: Industry, innovation and infrastructure. sustainable use of resources. Energetic consumption within the organization. • ODS 11: Sustainable cities and communities. • Fundamental matter: Environmental. Issue 3: • Standard GRI 302: Energy 2016.Content 302-2: • ODS 12: Responsible consumption and production. mitigation of the climate change and adaptation to it. Energetic consumption outside the organization. • ODS 13: Action for the weather. • Standard GRI 302: Energy 2016. Content 302-4: • ODS 15: Life of terrestrial ecosystems. Reduction of energetic consumption. • Standard GRI 305: Emissions 2016. Content 305-1: Direct emissions GEI (reach 1). • Standard GRI 305: Emissions 2016. Content 305-4: Intensity of GEI emissions. • Standard GRI 305: Emissions 2016. Content 305-5: Reduction of GEI emissions. Environmental education and culture --- • Fundamental matter: Environmental. Issue 1: Pollution prevention. • Fundamental matter: Environmental. Issue 2: sustainable use of resources. Alternative use • Standard GRI 306: effluents and waste 2016. • Fundamental matter: Environmental. Issue 2: Content 306-2: Waste by type and method of sustainable use of resources. disposal. Environmental Impact and Transportation --- • Fundamental matter: Environmental. Issue 3: mitigation of the climate change and adaptation to it. BACK COVER --- • Standard GRI 102: General Content 2016. ------Organization Profile. Content 102-3: Headquarters location. • Standard GRI102: General Content 2016. Practices for the reports making. Content 102-53: Contact point for questions about the report.

98 SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000 Value and income generation • Standard GRI 102: General Contents 2016. • ODS 1: End of poverty. • Fundamental matter: Fair operation practices. Issue 4: Organization Profile. Content 102-9: Supply chain. • ODS 8: Decent work and economic growth. promote social responsibility in the value chain. • Standard GRI 203: Indirect economic impacts • ODS 9: Industry, innovation and infrastructure. • Fundamental matter: Active participation and 2016. Content 203-2: Significant indirect economic • ODS 10: Reduction of inequalities. community development. Issue 3: employment impacts. • ODS 11: Sustainable cities and communities. creation and skills development. • Standard GRI 204: Acquisition practices 2016. • ODS 12: Responsible consumption and production. • Fundamental matter: Active participation and Content 204-1: Average in expense in local community development. Issue 5: wealth and income suppliers. generation. 8. ENVIRONMENTAL CARE AND PRESERVATION Technology at the service of the reduction of • Standard GRI 201: Economic performance 2016. • ODS 3: Health and wellness. • Fundamental matter: Environmental. Issue 1: environmental impact Content 201-2: Financial implications and other risks • ODS 7: Affordable and non-polluting energy Pollution prevention. and opportunities arising from climate change. • ODS 8: Decent work and economic growth. • Fundamental matter: Environmental. Issue 2: • Standard GRI 302: Energy 2016. Content 302-1: • ODS 9: Industry, innovation and infrastructure. sustainable use of resources. Energetic consumption within the organization. • ODS 11: Sustainable cities and communities. • Fundamental matter: Environmental. Issue 3: • Standard GRI 302: Energy 2016.Content 302-2: • ODS 12: Responsible consumption and production. mitigation of the climate change and adaptation to it. Energetic consumption outside the organization. • ODS 13: Action for the weather. • Standard GRI 302: Energy 2016. Content 302-4: • ODS 15: Life of terrestrial ecosystems. Reduction of energetic consumption. • Standard GRI 305: Emissions 2016. Content 305-1: Direct emissions GEI (reach 1). • Standard GRI 305: Emissions 2016. Content 305-4: Intensity of GEI emissions. • Standard GRI 305: Emissions 2016. Content 305-5: Reduction of GEI emissions. Environmental education and culture --- • Fundamental matter: Environmental. Issue 1: Pollution prevention. • Fundamental matter: Environmental. Issue 2: sustainable use of resources. Alternative use • Standard GRI 306: effluents and waste 2016. • Fundamental matter: Environmental. Issue 2: Content 306-2: Waste by type and method of sustainable use of resources. disposal. Environmental Impact and Transportation --- • Fundamental matter: Environmental. Issue 3: mitigation of the climate change and adaptation to it. BACK COVER --- • Standard GRI 102: General Content 2016. ------Organization Profile. Content 102-3: Headquarters location. • Standard GRI102: General Content 2016. Practices for the reports making. Content 102-53: Contact point for questions about the report.

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