index [] · of social responsibility undertaken by soriana organization from january 1st through...

S O C I A L R E S P O N S I B I L I T Y A N D S U S T A I N A B I L I T Y R E P O R T 2 0 1 8

INDEXSoriana OrganizationMessage from the General DirectorManagement of the RSELife Quality in the CompanyBusiness EthicsEthical Promotion and Responsible ConsumptionLink with the CommunityCare and Preservation of the EnvironmentIndex of Applicable Standards

21012224254607890

S o c i a l R e s p o n s i b i l i t y a n d S u s t a i n a b i l i t y R e p o r t 2 0 1 8 S O R I A N A 1

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]

1968 Opening of the first shopping center in Torreon, Coahuila.

2000100 stores in operation.

2003 Mercado Soriana is born in Salamanca,

Guanajuato.

2001Introduction of the

loyalty program.

2002City Club starts operations in the city of Torreon, Coahuila.

2005Start of operations of the Super City convenience format in the city of Monclova, Coahuila.

1994Fusion of Soriana Organization and

Sorimex.

1987Initial public offering in the Mexican Stock

Exchange.

50 YEARS SERVINGMEXICAN FAMILIES

2

2007Acquisition operation Gigante Stores.

2010Opening of the first store of Express format in Centla, Tabasco.

2011 Soriana starts the transformation project.

2012 600 stores and income surpass MXN$100 thousand millions.

2013 The first eolic energy park.

2014 Renewal of corporate image and its main formats.

2016 Acquisition and undertake control of Comercial Mexicana stores.

Signing of an association agreement with the Chilean company Falabella.

2017 The first store

under the Mega brand is born.

2018Sodimac starts operations.

3S o c i a l R e s p o n s i b i l i t y a n d S u s t a i n a b i l i t y R e p o r t 2 0 1 8 S O R I A N A

$153,475OPERATIVE FLOW (EBITDA)(MILLION OF PESOS)

TOTAL INCOME(MILLION OF PESOS)

$10,883

• 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

SORIANAORGANIZATION

4

4,244.2FLOOR SALES(THOUSANDS OF M2)

$3,710NET PROFIT(MILLION OF PESOS)

RELEVANTFIGURES

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 34,350GROSS 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 10,883OPERATING 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 8,068OPERATING 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.


MISSIONMeet the need of products and services of the communities where we have presence, fostering in each one of us our philosophy and values, to ensure a permanent and valuable relationship with our customers, collaborators, suppliers, shareholders, community and environment, thus obtaining an adequate profitability and therefore guaranteeing our permanence and growth.

VIEW Increasingly serve a greater number of communities leading to offer the best shopping experience for the customer and the best working place for our collaborators derived from a constant innovation.

PRINCIPLES

Under a multi-format strategy, we operate at the closing of the year 815 self-service stores and membership clubs plus the belonging to the convenience stores knows as “Super City”. The total sales area exceeds the 4.2 million square meters distributed through our different store formats. The coverage of the sales floor in the central and northern part of the country reflects the higher concentration, with 668 stores. The logistics network consists of 14 distribution centers strategically located in 8 states of the country.

In stores, we process annually more than 683 million of transactions, with a labor force of more than 97,000 employees. Our central support offices to stores are located in the city of Monterrey, N.L. and in Mexico City.

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.

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

Soriana Hiper 295Soriana Super 127Soriana Mercado 165Soriana Express 104City Club 35Mega SORIANA 89

320NORTH 39%

815 TOTAL OF STORES

348147

STORES

STORES

STORES

CENTER 43%

SOUTH 18%

NUMBER OF STORESPER FORMAT

We are present in 280 municipalities throughout the 32 states of the Mexican Republic.


F O R M A T SThe 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 HiperIt is a store directed to the entire community and its main purpose is to meet the consumption needs of our 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 ClubIt 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 and multi-packing, perfect for businesses and high-consumption families.

Soriana SuperIt was born with the aim of providing a solution to make everyday purchases of families in a practical and agile way, thanks to the efficient distribution of every department. The customer can find quality products and personalized attention in a pleasant atmosphere.

Mega SorianaStore with vast product catalog, focused on offering a high standard in service, quality and personalized attention. It has exclusive clothing brands and our distinguished gourmet area.

295

35

127

89

STORES

STORES

STORES

STORES

8

Soriana MercadoAimed at the segment of the population that is looking for a purchase option focused on low prices of basic necessities. We offer a scheme of high competitiveness in prices and promotions, which has an efficient assortment and optimized in every department.

Soriana.comElectronic commerce platform that offers differentiated products complementing the commercial offer of our physical stores. It offers a wide variety of items indifferent categories.

Soriana ExpressIt is focused on satisfying consumption needs through an optimized sales floor, handles around 8,200 products distributed in an efficient assortment in every category.

Super CityIt is a convenience store program that offers our customers the widest variety of brands and products with the firm purpose of satisfying last minute purchase needs. Offering a different option in convenience stores with personality and own characteristics.

SodimacBusiness focused on providing solutions to construction projects, in addition to satisfying the needs of improvement and decoration of the home.

165

3

104

STORES

STORES

STORES

107STORES

S o c i a l R e s p o n s i b i l i t y a n d S u s t a i n a b i l i t y R e p o r t 2 0 1 8 S O R I A N A 9

With the mission to help and contribute socially to the less favorable sectors of society, Soriana Foundation continues to implement social programs focused on child support, food and community support, promoting our challenge of Linking with the Community.

In the last 3 years, with a social investment of $349,133,963.90 pesos, benefited 1,491,887 people and 1,348 institutions throughout the country.

By 2018, we have built 5 Community Centers, and this year we built the computer center of the Trancas en Movimiento Community Center, in the state of Guanajuato: improvement projects were developed in academic infrastructure and economic growth of the inhabitants in the communities of the municipality of Chemax in the Yucatan Peninsula. In addition, 194 ecological stoves were installed benefiting 776 people, a program that from its inception to the present has benefited 10,156 people.

In addition to this, I am proud to highlight that thanks to the support of our clients in the We are Family with Mexico campaign, and Soriana’s commitment that doubled the contributions received by our clients, we managed to benefit families affected by the 2017 earthquakes, through the construction and delivery of 112 homes in the cities of Juchitan and Ixtepec in the state of Oaxaca.

On the other hand, we continue to promote the Supplier Development Program, which since its creation, has generated business’ opportunities to 1,770 small and medium suppliers, and more than 8,308 regional products that have

joined the value chain of Soriana throughout the country. In the las 3 years the regional products sale increased by 78.77%, contributing to our country’s development.

Our commitment to society is linked to the Care and Prevention of the Environment, we assume the interest of fulfilling our work, while respecting the environment in which we operate.

This year, 46.35% of the total electric energy used for the entire chain came from renewable sources, supplying a total of 614 stores. During the last three years we have reduced our CO2 emissions to the atmosphere by 20.8%. In 2018, 73,247 tons of cardboard and 4,403 tons of plastic were recycled. 5,640 collaborators were trained in responsible energy consumption and practices to promote the environmental care.

This year we celebrate 50 years of being family with Mexico, through this time we have grown and evolved guided by the dreams of our founders and the effort and commitment of all who are and have been part of Soriana.

In 2018, the achievements reached include not only the financial results of the company, but also those that impact the way how we interact with the community, which reaffirms our commitment and solidity based on a strategy of Social Responsibility and Sustainability.

We strengthened our management model by aligning our Social Responsibility actions of Social Responsibility with the Sustainable

MESSAGE FROM THEGENERAL DIRECTOR

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Development Goals. In this Report you will be able to know the activities carried out and the progress made to the goals of our Sustainability Policy.

We continue to promote a culture of learning, development, ethics and responsibility, constantly reinforcing our organizational values.

Our collaborators and the Life Quality in the Company are priority in our operation. In the last 3 years we increased the internal promotion by 77% in Store Support Office. On the other hand, during 2018 there were 4,988,237 hours of training, showing an increase of 32.4% over the previous year. In the last 4 years through Soriana University, we have promoted the work and personal development of more than 2,000 of our collaborators giving them an academic degree in their work centers. And as part of the care to our collaborators, we managed to contribute to the improvement of their health through different campaigns and tools, which improved the life quality of 90,943 people.

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. This year, 20,356 reports were handled in our 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.

Our commercial campaigns are based on Ethical Promotion and Responsible Consumption, within the framework or our 50th anniversary, the campaign “Somos Familia con México” (We are Family with Mexico) seeks to represent the values of the Mexican family, highlighting the respect for others, the unity and solidarity. On the other hand, the campaign “Ahorro a mi Gusto” (Savings to My Taste) seeks to have a direct relationship with our customers by rewarding their preference with different saving schemes created especially for them. During this 2018 we generated an evaluation to know the import of the Familia Mercado (Mercado Family), finding favorable results from our customers.

Today I thank the entire Soriana family, to those who have been part of its history; to our customers, collaborators and suppliers. We continue working to transcend future generations and contribute to the construction of a better society. Life is a celebration, and I invite you to be part of ours.

Ricardo Martín BringasGeneral Director

S o c i a l R e s p o n s i b i l i t y a n d S u s t a i n a b i l i t y R e p o r t 2 0 1 8 S O R I A N A 1 1

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.

OF SOCIAL RESPONSIBILITY

MANAGEMENT

1 2

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.

OUR MODEL OF SOCIAL RESPONSIBILITY

1 3S o c i a l R e s p o n s i b i l i t y a n d S u s t a i n a b i l i t y R e p o r t 2 0 1 8 S O R I A N A

• We have a solid structure of Corporate Governance, based on ethics and our values.

• We prepare structured reports that promote transparency and accountability.

• We carry out volunteer activities that include reforestation and recovery of spaces and the rivers rehabilitation.

• We collaborate in the cleaning of beaches and coastal spaces through our Heart Volunteers.

• 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 to improve the quality of life of people in vulnerable situations.

• We promote a work environment of equality and discrimination free in our relationship with different interest groups.

• We developed 1,770 small and medium-sized suppliers.

• Our stores use renewable energy for their operation. They are constantly maintained with the latest technologies.

• In the last 3 years, 1,348 institutions benefited from our relationship with the community.

1 4

• We support the local economy, making available more than 7,800 products in our sales floor of small and medium regional producers.

• We award competitive salaries to our employees, exceeding Mexico’s minimum wage.

• We installed solar panels and ecological stoves in rural communities benefiting more than 1,260 people.

• In 2018, 46.35% of the total energy used for the entire chain comes from renewable sources.

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

• 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 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 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.

• In the last 3 years we have attended 454,864 people in food and nutrition issues.

• By 2018, we have built 5 Community Centers.

• We provide access to basic services to more than 1,600 people in different communities of the country.


SUSTAINABILITY POLICYOur 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 Innovation

Emissions Reduce emissions of CO2 in 20% in regard to those issued in 2016.

99%

Water Management Reduce 5% in water consumption

96%

Soriana Foundation Benefited Social Programs Increase 5% in 5 years in Benefited average.

96%

Customer Service and Attention

Customer dissatisfaction in in-line invoicing

Reduction of complaint number a year for discontent customers’ invoicing

No progress was made due to changes in the billing

portal in compliance with requirements of SAT.1

Human Resources Health Services Cover all the 32 States with Agreement Hospitals

53%2

Training Increase of 40% in 5 years in training hours

Goal 2021 reached and surpassed by 12%

Stores Service By-Products Increase of by-products in 15% for 2021

99%

Suppliers Development (Pymes)

Fresh products and processed groceries

Increase the scope to 100% fresh supplier and groceries throughout the Soriana group self-service level.

41%3

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).

1 6

SUSTAINABILITY AND ENERGY COMMITTEESince 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:

Direction of Finance and

Administration

Relation with Investors

Strategic Planning

Public Relations and Corporate

Communications

Finance

Direction of Real Estate

Development

Technological Innovation

Construction

Maintenance

Real Estate Development

Real Estate

Store Service

Commercial General

Direction

Marketing

General Direction Mercado and

Express

Operations

Human Capital

General Direction Hiper

and Super

Operations

Human Capital

General Direction City

Club

Operations

Human Capital

Logistics Direction

Logistics and Dry Distribution

Logistics and Perishable

Distribution

Direction of Human Resources

Soriana Foundation

Human Capital Office of Stores

Support

Ricardo Martín BringasGeneral Director of Soriana Organization

Committee Leader: Director of Real Estate Development


The Committee and its members are assigned different functions and responsibilities, and meets monthly to:

Sustainabilityand Energy Committee

Analyze

Define

Monitor

Spread

Coordinate

Objectives and goals that make up the social responsibility strategy

Opportunity areas and detects the possibilities of improvement, based on the identification processes of risks, needs and concerns of the interest groups

Objectives and advances contemplated in the Sustainability Policy

Strategies, Actions, Aspirations

Strategic projects linked to the sustainability axels and objectives

1 8

• 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• 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

SERVICETO STORES

• Presentation of Regulations and restriction of use of plastic bags

SORIANAFOUNDATION

• Coordination of making the Sustainability and Social Responsibility Report

• Presentation and results of campaigns: We Are Family with Mexico, Teletón and Redondeo.

PUBLIC RELATIONS AND CORPORATE COMMUNICATION

• Strategies presentation at Web and Social Networks

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

STRATEGICPLANNING

TECHNOLOGICAL INNOVATION

HUMANCAPITAL

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


PUBLIC COMMITMENTIn 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.

Web platform, social nets, events and fairs

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 page

Bonding, Meetings, Corporate Volunteer Initiatives

Reports, Meetings, Surveys

Events, Conferences, Surveys, Communication, Web Page, Social networks

Investors

Collaborators

Customers

Local and Non-Governmental

Organizations

Government and

Regulating Authorities

Media

Suppliers

PUBLIC COMMITMENT

Web page, Social networks

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RANKINGSDuring 2018, Soriana Organization increased in 46% its presence in rankings related to the business, in comparison with the previous year.

In addition, we were recognized by our performance and model of Social Responsibility in aspects that highlights the economic, social and environmental commitment:

Ranking Classification

20182017

23%

31%

23%

23%

26%

53%

16%

5%

The 50 Companies Socially Responsible in Mexico

#9

Philanthropic Companies in Mexico

#10

Companies with Environmental Commitment

#17

The 100 Companies with the Best Reputation in Mexico

#45

The 100 Responsible Companies 2018

#56


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.

LIFE QUALITY

2 2

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.

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

collaborators make up the Soriana Family.

97,154


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

60% of the candidates come from labor exchange and electronic platforms, while 30% are referred by internal collaborators or colleagues, and 10% are selected at recruitment fairs. Then every candidate participates in a standardized and equitable selection process.

In Soriana we promote and offer equal treatment and employment opportunities for all the people without considering their gender, sexual preference, ethnic origin, religion or age.

EMPLOYABILITY

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.

Selection of collaborators by gender

58%

53%54%

2016 20182017

46%47%43%

2 4

Of the total of our collaborators

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 workers’ rights, through the promotion of freedom of association and collective bargaining.

In 2018, 56% of the total number of employees of the Organization is unionized, which are represented by 840 Work Centers and 45 Trade Union Leaders, and covered by 355 Collective Labor Agreements.

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. Year after year, salary growth is reviewed according to market fluctuations and employee performance.

are women48%

are men52%

GENDER/AGE UNDER 20 YEARS

BETWEEN 21-30 YEARS

BETWEEN 31-40 YEARS

BETWEEN 41-30 YEARS

BETWEEN 51-50 YEARS

BETWEEN 61-70 YEARS

70 YEARS OR MORE

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

Age range of collaborators

21-30 years32%

31-40 years25%

41-50 years24%

51-60 years13%

61-70 years1% Under 20

years old

5%70 years or more

0%For unionized positions, wages are managed according the clauses of the collective agreements and according to the responsibility and/or activity of each position.


GENDER / PROGRAM

ADULT PACKERS

YOUNG / MINOR PACKERS

PACKERS WITH DIFFERENT CAPACITIES

Female 28.06% 8.17% 0.33%

Male 47.29% 15.64% 0.51%

PACKERS PROGRAMIn Soriana, diversity and inclusion have strategic value. Therefore, we have a Volunteer Packers program, in which young people and adults participate voluntarily by packing the merchandise that our customers acquire in the Stores.

In the case of young people, the activity is carried out under guardianship, close supervision and explicit authorization from their parents and/or guardians. Their involvement helps them strengthen family values, acquiring the habits of honesty, respect and hard work.

On the other hand, the participation of retired adults and pensioners of the third age is channeled through the INAPAM or DIF, allowing them to continue in physical and social activity while supporting our customers.

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

“6 years ago I came with my daughter to do the shopping and I liked the atmosphere of the store. Then I asked the age and the requirements to be admitted in the program. Some days after, I brought the INAPAM’s authorization and the next day I started to collaborate. I was a secretary all my life and then from 47 to 60 I did not find work until I came here. I feel very comfortable because I get along with my colleagues, I bring money to my house and I can buy what I like”.

MIRTHALA MIREYA DE LA LASTRA TORRES,PACKER, CUMBRES SORIANA HIPER STORE.

VolunteerPackers

“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.

21,240

2 6

SORIANA TALENTTo carry out the development of the potential of our collaborators, we have developed the Soriana Talent Cycle that guides us through different stages to achieve the objectives.

First of all, we map the talents through a tool that allow us to measure the performance observed in the past and the potential future growth of the collaborators. Thus, we evaluate the performance, potential, preparation, development plans, rotation risk and the position or key branch.

Then, we use different tools and methodologies to evaluate collaborators, which allows us to weigh the result of psychometrics, the results of the sessions of the Evaluation Center, the interviews by competences, the survey of values, the evaluation of leadership and performance, the degree of compliance of business indicators, as well as the evaluation of technical knowledge. This evaluation allows us to generate 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

uses strategies such as accompaniment to achieve professional and/or personal goals, mentoring and the method of observation-based learning so that the employees live a unique experience while acquiring practical knowledge experiential.

Finally, based on the individual development plan or the path of established race, the employees may occupy other positions in their same hierarchy or even a higher hierarchy.

Incorporate

TALENT

IdentifySELECTION

TRA

ININ

G

DEV

ELO

PMEN

T

DEVELOPMENT EvaluateFormation

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


The coverage of vacancies with internal promotion in Support Offices to Stores.

77%

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.

• We handle 514 feedback sessions in which the actions to be carried out are agreed so that the collaborator reaches the expected results.

• We coordinated 36 sessions of the Individual Development Plan.

• 20,064 collaborators participated in the Performance Evaluation.

This allowed us to generate 129 promotions, 33 lateral movements, 10 transfers between Distribution Centers, Stores and Support Office to Stores, and 12 Directions with Talent Mapping.

SORIANA WOMEN´S DEVELOPMENT PROGRAMIn Soriana we believe in diversity and inclusion therefore we developed a program for the women contributing with the Organization contributing their vision of the world, their talents and energy.

The objective of the program is to provide tools of inspiration and self-knowledge that allow female executives to connect with them and with the world to realize their personal and professional goals.

In 2018 was held the first event of the program, 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 satisfaction, our executive women have space to exchange opinions and ideas, as well as to empower themselves and be accompanied in their development.

“On a personal level, it seems like a life experience, because this is for me and it will always help me. At professional level, with the responsibility of sharing it with the people close to me, with my team and to be capable to inspire others and, make of this an important project for the company”.

KARINA DUARTE AGUAYO. BUSINESS MANAGER MEGA SORIANA.

“In a gratifying way, it was a great experience, the dynamics, the topics discussed and above all I come out very strengthened, and with a lot of inspiration. I take the best of my colleagues and with the conviction that I have to be a better person, leader and be able to inspire my collaborators”.

MÓNICA FRANCO GONZALEZ. FOOD DIRECTOR.

In the last three years we increased a

of the vacancies of HR Management Leaders were covered with internal promotions.

85%

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In 2018, as a method to keep alive and evoke our values, the dynamics “The Treasure of the Soriana Values” was implemented in the Support Offices to Stores in Monterrey, where through a training center, each of our values was represented in a fun way, inviting the staff to live the Soriana values every day. We have the participation of 1,178 collaborators.

Moreover, this year we designed 6 virtual workshops and exercises about the values of the organization, that through the in-line platform of Soriana University, we made available to all our collaborators.

As part of our culture, and with the aim of generating a close link between employees and the values that distinguish us, year after year we carry out a Diagnosis of Organizational Values.

Through this evaluation we obtain valuable information 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.

In 2018, 68,583 surveys were carried out, 19% more than the previous year. With an average response of 76.28%, the values “We are correct and kind” and “We anticipate and innovate” were the best rated values.Based on the results achieved and taking into account the methodologies for measuring job satisfaction, we address our efforts to develop better leaders within the work teams, and thus encourage the satisfaction of our collaborators.

And as in 2018 we celebrated 50 years of Being Family with Mexico, we developed the #SoySoriana workshop, which with the aim to commemorate and celebrate the anniversary of the company, seeks to highlight the important facts of the history and operation of our Organization, and show how these set the tone to become the great company we are today. The workshop was implemented for 1,667 collaborators at the Support Offices in Monterrey.

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.

SORIANA CULTURE

Features of the Soriana Leader

COMMITED WITH THE RESULTS

SERVICE ATTITUDE INSPIRER TRANSFORMER OPEN

We are correct and kind

One single team with the same goal: delight the customer

We comply with the results

We anticipate and innovate

We are committed with Soriana


TRAINING FOR THE WORK

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

2018 was a year of great and new challenges, since the integration of two of the most important self-service chains in our country took place. Thus, training 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.

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.

Training Hours

3,767,555

4,988,237

201820172016

3,195,515

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TRAINING FOR EACH NEEDThe employees who are in charge of the management of Human Resources in Soriana require constant training and updating in order to attract, retain and manage the growth of our collaborators.

For this reason, in 2018 the Training Program for the Position implemented for employees who occupy the positions of Management Leader of Human Resources and Assistant Manager of Human Resources in the Store.

This year we have the participation of 690 collaborators, reaching 12,515 training hours.

TRAINING IN STOREAs result of the integration process that we experienced this year, 60,976 training hours related to store operation topics were given to 12,140 collaborators. The trainings were directed to executives, personnel with head and line level, and reached an average of 5 training hours per person.

In the Management Development Program, which aims to prepare collaborators to perform the functions of Store Manager, we had an income of 136 collaborators, representing an increase of 23.6% with respect to the participants in 2017. They were taught 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.

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

56.1%


SORIANA TALENT DEVELOPMENT PROGRAMAs part of the Soriana talent development process, we seek to generate management skills and operational knowledge in collaborators, so that later they enter to the Management Development Program.

In 2018, 51 participants entered, of which 35% were subsequently joined the Training in Store Program.

LEADERSHIP CENTERIn 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.

TRAINING TO SUPPLIERSFor Soriana, its suppliers are a fundamental factor that influences the achievement of the company’s results, so we work to interact with them through agile and effective processes, consolidating our relationship.

Thus, in 2018, 1,214 training hours were given to 414 suppliers, of which 60% participated in person, while the remaining 40% did so through online meetings. For the next year we plan to train the rest of Soriana’s suppliers.

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SORIANA UNIVERSITY

Through different programs, we have been part of the transformation of life and education of more than two thousand employees in just the last 4 years.

Diversity and gender equity were also present in this program, since 58.5% of the participants corresponded to the female gender, while 41.5% were supports granted to men.

The program provides support to collaborators to complete the studies they have pending at different educational levels:

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

“My return to the classrooms was a very interesting challenge, the roles in my life changed strongly; however, any change was worthy. Personally, the components to make my experience a success were conviction, commitment and order in all aspects of my life, as a mother, wife, daughter, friendship and work. Completing my degree has helped me to feel happy and full. In addition, it opened opportunities to grow in the company, with which I am grateful for the support and trust placed on me”.

VIRGINIA DAFNE ALVAREZ CANTUASSISTANT 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%1%

2%5%

91%

Participation in Program Soriana University and Gender

71240

268

2015 20182017

296290

122

264

2016

480

Primary SchoolMiddle School

High School

College

Masters


HEALTH AND LABOR SAFETY

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 talks were held for the prevention of different diseases in 25 branches of the State. 74 modules of jurisdiction 1,2,3,4 and 7 were installed, benefiting 31,080 individuals.

As part of health care, in an equitable manner and regardless of the position they occupy in Soriana Organization, every collaborator has the benefit of using the health care services of 17 hospitals in 8 States of the Mexican Republic with significant savings due to the agreements we have formalized with each one of them.

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

PREVENIMSS PROGRAMAnother strategy developed to provide the health care our collaborators deserve, we implement along with the Mexican Institute of Social Security (IMSS) in regard their health services to promote the care of our collaborators, through the development of actions of promotion, protection, treatment and health rehabilitation.

With a standardized process, with clear work stages, this year 20,589 collaborators were assisted at national level.

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Assessment evaluation

Low Risk receive msn of

the app and end of process

High risk capillary glucose

Logistics for the capillary glucose, cholesterol and blood pressure

test.

<25 workers

> 25 workers

Will grant support and facilities to workers that in

accordance with IMSS require follow-

up up to 8 times a year.

UMG Health Equipment• Active follow-up of UMF• Information concentration• Submission to the Delegation for

analysis

Operation and logistics are defined for the

online check-up. It is instructed in the use and management of

the app

• Confirms diagnose by lab• Schedule new appointment for

evaluation an in its case start of treatment and educational

Send to lab for glucose uptake

Capillary glucose screening

Brigade goes to the company

Capillary glucose abnormal

Suspicion of hypertension or

dyslipidemia

Online survey application 20 days at home or company.

Company: Human Resources / union and physician IMSS: CPAS Representative

Work tables

• Analyze information• Generates stratified listings

by company

Signature

Agreement

IMSS Preventive intelligence unit

UMF derivation

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.

UMF / Follow-up


HEALTHY EMPLOYEE PROGRAMThis 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 Stores.

Thus, in 2018 we managed to contribute to the health improvement and provide options for a better life quality to 90,943 individuals.

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Apply Certification Form (Health Personnel)

HEALTHY ENVIRONMENT CERTIFICATIONThis 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:

Training through workshops (actions, lifelines, correct nutrition,

physical activity, interpersonal relationships

Make a diagnosis of Work Site (current policies and applicable

regulations)

Participative work plan (Objectives, goals, timing and

in-charge of actions)

Stores with Healthy Environment Certification

3

Meeting with members of the Safety and Health Committee

Activity of Problems Priorization

Identify factor influencing work environments to manage

necessary changes

Monitoring of Objectives proposed by the Health and

Safety Committee


HEALTH AND SPECIAL PROGRAMS IN LOGISTICS AND DISTRIBUTION CENTERS

NURSERY ROOMIn 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.

”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 AUXILIARYCAD TRANSPORTATION.

“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.

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“I like the project and it’s good that the company offers the opportunity. I’m happy to work with them and I learn a lot because they are very active.”

SANDRA NOHEMI MARTINEZ AGUILAR.LABELING.

“It is a great opportunity that Soriana is giving these people so they can excel and become independent. Throughout a year, they are already so coupled with everyone, work at other work stations, and coexist with the rest of the coworkers”.

ABY PRISCILA YOC.SUPERVISOR OF THE LABOR INCLUSION PROGRAM.

WORK INCLUSION PROGRAMThis programs aims to provide employment opportunities for disabled people, and allow our employees to coexist together, share their experiences and live the commitment with the company towards the employment inclusion.

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 other collaborators to facilitate the learning process and working conditions for new entrants.

In 2018 we incorporated 2 other young people to perform tasks in the Salinas Distribution Center, so that we currently have 3 men and 3 women, 5 with hearing impairment that support us in the role of feeders and 1 that serves as feeders’ supervision.

“Thanks to Soriana, this is my first job. I feel very good and comfortable and, all of my coworkers treat me with respect. I’ve been doing this job for 1 and a half years and I want to change area”.

EMMANUEL TAPIA CASTILLO. CEDIS SALINAS.

“I would like to work in Soriana forever. This is my second job, but it’s the one I like. The work is heavy, I must arrive quickly and on time, and I do it every day, but I love it. Now I want to improve myself. Thanks to Vicente Hernández Quesada (Operations Manager CEDIS Salinas) who supported me from my beginnings”.

CARLOS ALAN CARRILLO ESCAMILLA. CEDIS SALINAS.


SORIANA WELLNESSTo carry out the program, we have a toll-free telephone number 01 800 161 4113 that is enabled 365 days 24 hours a day at national level, as well as a Mobile Application that facilitates attention access through any cell phone.

In 2018, we treated 113 cases and provided 143 services, of which 83.2% respond to problems and consultations of collaborators and 16.8% come from family members. Of the consultations received, 34% derived from the female gender and 64% from male gender.

The services provided in the program are varied providing collaborators with the possibility to solve different problems.

As part of the services provided, we have the Psychological Care Program for transport employees who suffer robberies on the roads. Critical cases are channeled to the line of Soriana Wellness, and they are engaged in seeking the psychological support required in the place where the affected person is located. In 2018 we treated 2 cases in Oaxaca and Queretaro.

In order to inform about the activities of the program, materials with information were developed for collaborators, posters to place in the facilities and offices, videos, flyers and a digital campaign with postcards and valuable information.

OPERATING AND TECHNICAL TRAININGSIn addition to the training provided by the Human Resources Area of Soriana, we develop trainings and impart courses on operational and practical issues related to needs detected in the daily work.

In 2018, 124,843 hours of training were implemented, increasing by 23.94% the hours invested in regard the previous year. 24% of participants are of the female gender, while 76% correspond to the male gender.

62% of the training courses were focused on operational issues in order to streamline the operation of the Work Center, such as the use and care of mobile equipment, the correct use of tools and work equipment, the correct assembly of platforms,

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.

Services attended 2018

Life Management

47%Professional Assessment

36%

Nutrition orientation

1%Questions about the

service

16%

Most frequent problems in 2018

Personal development

15%Information /Resources

23%

Legal44%

Personal relations

18%

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the importance of the cold chain, post-harvest management, technical management, as well as well as preventive and corrective maintenance.

The remaining 38% was oriented to develop human skills through courses such as: behavior rules, the role and contribution to the development of people in Soriana, the attitude of service, collaborative work, effective communication and time management.

This year, we also developed a course of Cargo Handling with the purpose of establishing safety and health conditions at work to avoid risks to employees and damage to facilities by manual handling activities, through the introduction to handling and storage standards, ergonomics and factors of Ergonomic Risk, injuries, low back pain, correct load lifting, and measures of prevention, security, administrative and technical control. The theoretical-practical course was taught by the medical staff of CEDIS and, had the participation of 2,429 employees, the 100% of the 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.

For Soriana, the social dialogue is manifested through the multiple channels that make it available to its different interest groups in order to manage the relevant issues that arise every day.

One of these channels is the Direct Line, through which the collaborators freely channel and without retaliation the doubts, complaints, disagreements or acts contrary to the Organization Ethics Code.

With a transparent process, the received reports are analyzed and resolved by investigation of a specialized committee which sends a respond with the actions to be performed based on its resolution.

In 2018 we received 1,781 reports, 15% less than in 2017. Of which 66% were anonymous and 34% were direct employees of Soriana.

SOCIAL DIALOGUE


BUSINESS

ETHICS

4 2

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.


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 Sustainable IPC Index, which includes companies that being listed on this stock exchange stand out in terms of sustainability.

Since then, Soriana has participated in the assessment that considers the three pillars:

• Environment.• Social responsibility with its main interest groups

(employees, suppliers, customers and community in which they perform),

• Corporate Governance.

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

Shareholders meeting

Auditing Function

Assessment and Compensation

Function

Board of Directors

Finance and Planning Function

Questionnaire ofBest Corporate

Practices

4 4

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

Equal treatment and respect and protection of the interests of every shareholder.

Giving certainty and confidence to shareholders, investors and interested parties on the honest and responsible conduct of the business of the society.

Compliance with all legal provisions to which the company is subject.

The identification, administration, control and disclosure of the strategic risks of which the company is subject.

The exercise of the fiduciary responsibility of the Board of Administration.

Ensuring that there is a strategic direction of the society, as well as the surveillance and effective performance of the administration.

The disclosure of improper acts and the protection of informants.

The emission of an Ethics Code of the society.

The prevention of illicit operations and conflicts of interest.

The honest and responsible leading of the society.

The responsible emission and release of information, so as the administration transparency.

The generation of economic and social value, as well as the consideration of third parties interested in good performance, the stability and the permanence in the time of the society.

1 2 3 4

8 7 6 5

9 10 11 12


CUSTOMER SERVICE AND ATTENTIONThe 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.

Complaint

Comment

Doubt / Suggestion

Congratulations

74.3%0.6% 5.6%

19.5%

Economical

Environment

Social

17% 1%

82%

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

NEW SUPPLIERS

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:

• 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 improvement of Mexican beaches and to raise the levels of competitiveness of the different 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 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 the safety of our transportation, contributes to the environment care.

• This year we were recognized as the #38 among the 100 best transportation lines in the country by Group T21, where the certification parameters in management, clean transport and efficiency were evaluated.

SPACES RECOVERY

SUSTAINABLE MOBILITY /

TRANSPORTATION

INVOICING

• We encourage our collaborators in leadership positions, offering professional and personal development tools through the Soriana Woman Development Program.

• We started the Beating for You Program, which aims to detect pregnancy illnesses in order to 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 from the Super City branches in Support Office to Stores, CEDIS Salinas and CEDIS Queretaro.

• We continue with the promotion regarding the use of reusable bag through internal communication campaigns and the provision of sale points to employees and customers.

GENDER EQUITY

ALTERNATIVE USE OF REUSABLE

MATERIALS AND BAGS


Doubts / Suggestions attended in the Customers Service and Attention Center

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.

201820172016

1.6%

5.6%

0.9%

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RISK MANAGEMENTAt 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 sources, we analyze data, identify and evaluate potential and emerging risks to provide relevant information for decision making.

All the information received and analyzed is transformed into operable knowledge, thus reducing the impact of adverse events and capitalizing the opportunities offered by an increasingly complex and uncertain environment.

The risk management process is performed every year, and every type of external and internal risks that could have an impact on the company in the short, medium and long term is taken into account, integrating the Organization’s Risk Agenda.We have a clear and transparent process that involves different actors according to the transversely of management:

RISKS IDENTIFICATION

Crisis Committee

Information Committee

Finance Risks Committee

Direct Line Committee

General Direction

Security Risks Supervision at Directive Level

Unity of Strategic Intelligence

Insurable Risks Committee

Corporate Reputation Committee

Ethics Committee

RISKS INTEGRATION AND ANALYSIS

RISKS DISCUSSION AND MITIGATION

STRATEGY

RISKS MITIGATION AND

PREVENTION

Risks Monitoring


Environmental: Our main operations are concentrated in the north and central region of Mexico, and therefore an important part of our income derives from stores located in those areas. Natural disasters, such as earthquakes, fires, floods, landslides, gales, heavy rains, environmental pollution, blackouts, hurricanes, among others, can endanger the continuity of the operation of the stores.

Corporate: Our control group has a majority stake in the Company’s capital stock. Additionally, various decisions related tour business must be confirmed by our controlling shareholders, and the delays in the decision making could affect the business.

Competitive Dynamics: We participate in a highly competitive market and an increase in competition could adversely affect our business. The self-service industry in Mexico is featured by dynamic competition and by an increasing pressure on profit margins. Competition becomes relevant when factors such as price and, to a lesser extent, location, merchandise selection (particularly fresh products), service, store conditions and promotions are taken into account.

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

Mexican or the United States economies can affect our business, operations results, prospects and financial situation.

Labor: Approximately 38% of our employees are members of different unions. Throughout the year we have demonstrated an excellent relationship between our employees and respective unions, managing to be a dynamic company that has evolved according to the pace of its growth and that has the firmness to continue creating a positive transformation.

Legal and Regulatory: Our business is subject to a significant number of laws, regulations and guidelines, including those related to anti-corruption, money, laundering, economic competition, health, safety, as well as environmental, labor and tax issues. Legal or regulatory procedures may adversely affect our financial position and operations results.

Policy and Governance: We are aware of the political changes that the country has and especially all those initiatives and regulations that could impact our operations business results and financial situation.

The risks are classified according to its importance, among which are the following:

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In Soriana Organization we manage every strategic risk that could affect the company objectives, seeking to reduce impact of adverse events and capitalize the opportunities.

Sanitary: The threats of public health, such as the virus H1N1, Zika, Dengue, Severe Acute Respiratory Syndrome (SRAG) and other highly contagious illness can affect 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.

10types of risks mapped and classified


VALUE LINE

In Soriana we consider important the opinion of every person who is part of our operation, understanding that a good attention to our interest groups and a good business reputation depends on all those we do and work every day in the organization.

This means is useful for our collaborators, suppliers and customers to report real or suspicious behavior that may mean the violation of applicable laws, rules, regulations, standards, policies and accounting

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

procedures, or that are in some way inconsistent with the values and ethical standards and of compliance of the company.

The main challenge of this communication channel is to promote among the people the initiative to use it to know what happens in our operation, this gives us opportunities to continue improving our processes, as well as to detect areas of opportunity and improve communication with the different groups.

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

During year 2018, Value Line has been consolidated as a 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.

Of the complaints received in 2018, 72% correspond to issues that involve the human resource of the company, followed by 18% which relate to the patrimony and, 10% related to the service.

Complaints attended

201820172016

460534

259

“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”.

ANONYMOUS

“The help provided was excellent, since what was requested was resolved favorably in a timely manner. Thanks for counting with this kind of channel for suppliers”.

ANONYMOUS


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.

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In Soriana we value the choice and trust of our stakeholders, so we work to provide them with the information of our products and services in a fair and transparent manner.

SOMOS FAMILIA CON MEXICO (WE ARE FAMILY WITH MEXICO)Soriana celebrates the 50th anniversary of Being Family with Mexico, a campaign that seeks to represent the values of the Mexican family, highlighting respect for others, unit and solidarity.

We are part of the great family that makes up the country and we seek to contribute to its development through understanding and seeking the satisfaction of our customers, with special care of the context in which we 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.

CAMPAIGNS OF PUBLIC INTEREST AND SOCIAL BENEFIT

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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 groups were developed in the Valley of Mexico, Monterrey and Veracruz. The participants were selected according a pre-designed profile, being of relevance that they are the responsible of the purchases of their families.

Among the results achieved, it is possible to observe that 29.5 of the participants spontaneously remember the different Soriana ads and, among the most remembered elements are the specific campaigns (24.7%), since they manage to transmit the values 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 campaigns are 92% credible.9 out of each 10

Individuals considered the elements observed in the Mercado Family campaign credible.


AHORRO A MI GUSTO (SAVINGS TO MY TASTE)As part of the Soriana Rewards Program, we launched a campaign that allows our public to meet their needs, while having different saving options, get small details or big surprises, as well as taking an extern when making their purchases.

The campaign highlights the intention to place in the hands of consumers the possibility of choosing and multiplying the option so that they can enjoy what they want at each moment of their lives.

This type of campaign allows us to generate a direct relationship with our clients, while we encourage and reward them for choosing us.

In Soriana we strive so that our public has more options to save, as well as enjoy at their own way, to their liking.

EL ORGULLO DE LA CASA (THE PRIDE OF THE HOUSE)Through this campaign, we seek to approach our public, through the offer and promotion of products that proudly display our band.

In Soriana we have more than 1,300 products of our own brand and exclusive brands, covering different categories, such as groceries, fresh, wine, home, cleaning, beauty and electronics.

Thus, with the same quality and better price that the most recognized brands, the care of the family economy is the Pride of the House.

In addition, we join the Hagámoslo Bien (Let’s Do It Right) movement and incorporate impact phrases into some of our own brand products, which promote the example and encourage the creation of a city through the construction of a Legality Culture.

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SPONSORSHIPS

As part of the link between Soriana and our environment, and in line with the activities carried out by Soriana Foundation, we support different activities of a social nature that allow the different interest groups to achieve their objectives.

This 2018 was inaugurated a project that we have been supporting since 2010: Minisuper Soriana in Papalote Museo del Niño Monterrey. This project aims to provide children with an interactive and playful space that encourages learning through of the game.

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.

Soriana’s participation as a founding gold donor, with a contribution of $11,662,460 and the space of 110 square meters intended for girls and boys of all ages with products of real size and scale, are key samples of our commitment to teach responsible consumption, sustainable and solidary, as well as encouraging reflection on the individual, social and environmental consequences of consumer decisions.

In addition, we support through sponsorships different sports and cultural activities, among which are the support provided to Club Santos and the Camerata of Coahuila.


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.

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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.


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 improve the social net, our contribution is focused on the integral development of those who participate in it.

INFRASTRUCTURE AND EQUIPMENTAs part of the community programs of Soriana Foundation we 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.

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YUCATAN PROJECTIn 2018, we carried out the Yucatan Project, with the objective of promoting community development through projects to improve academic infrastructure and economic growth for the inhabitants of the community.

The work model developed consists of different stages that allow generating activities with greater social impact.

hammocks production, while the young people of Chechmil community set up chicken breeding farms.

Following our model of intervention and, with the support and enthusiastic collaboration of the member of the community, the Public Work project was completed, in which 4 schools were waterproofed, and built 17 bathrooms in the Elementary School in Chechmil, Preschool and Telesecundaria in Xalaú.

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 inhabitants by providing materials for the rehabilitation of 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 common spaces, the participants worked on cleaning the public space and made signs aimed to all the inhabitants to raise awareness about the improvements achieved.

With a social investment of $452,228.36, we carry out different actions that facilitate the generation of changes in the lives of the Yucatan families.

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.

Relation Social Investment and Benefited Institutions

(millions of pesos)

20172016 2018

110.9

124.8113.4

444

inst

itutio

ns

425

inst

itutio

ns

479

inst

itutio

ns

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

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

PRODUCTS MARKETING

DEVELOPMENT OF PRODUCTIVE

PROJECTS

SCHOOL INFRASTRUCTURE

DEVELOPMENT PROJECTS

a) Ecologic stovesb) Local craftsc) Fruit treesd) Backyard farm

a) Priority needsb) Additional needs

a) Target marketb) Administration and Financec) Business link

a) Environment analysisb) Needs mappingDIAGNOSE

DA LUZ Y BIENESTAR A TU VIDA (GIVE LIGHT AND WELNESS TO YOUR LIFE)Through this program, Soriana Foundation favors isolated communities that do not have access to basic services, by changing the use of candles, diesel and other sources harmful to health, by natural lighting from the sun, favoring the family economy.

In 2018, the company Colgate and Soriana allied to benefit the communities of Cañaveral and Cañaveralito, located in the municipality of Centla, in the state of Tabasco.

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, wood-saving stoves and water filters.

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.

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

“Many thanks to Colgate and Soriana for the help they have given us with the solar panels, stoves and water filters. Thanks to this, we now have light! I hope they do not forget and they always remember us that we are in an isolated place”.

ARMANDO OCAÑA

We thank God because he touched Soriana’s heart and of all of you to give us the benefit of the solar panels because we didn’t have light. Thanks for the stove and water filters. Thanks also to Colgate, because we no longer stumble and we can read the word of God at night. We pray for you and may God continue giving life to all of you”.

INHABITANT OF CAÑAVERAL COMMUNITY

Give Light and Wellness to your Life1,256,291

201820172016

People Benefited Families Benefited Social investment

3450

35

150

220

120

1,091,874

687,500

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ESTUFAS ECOLÓGICAS (ECOLOGICAL STOVES)During 2018 we continued with the ecological stoves program, through which we replaced the traditional stove that produce high smoke emissions causing serious health problems, for wood-saving stoves, which reduce their consumption by up to 60%.

In this way, while promoting the reduction of CO2 emissions into the atmosphere, the risks of suffering from respiratory diseases are mitigated due to the elimination of smoke inside homes.

We managed to install 194 stoves that benefit 776 people in 7 communities in the states of Guanajuato, Tabasco and Yucatán.

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.

Program of Ecological Stoves

201820172016

Ecological Stoves

People Benefited

Social Investment

640

160

408,0001,560

390

1,074,450

776

194

525,778


UN KILO DE AYUDA For the past 20 years, Soriana Organization has been committed to the Un Kilo de Ayuda Organization to contribute to the full development of every child in Mexico through the empowerment of early development through the physical, intellectual and emotional development of the child population on the first years of life.

In 2018 we also accompanied the Organization in the 5k, 10k race and 3k walk that were held in the second section of the Chapultepec Forest in Mexico City.

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

“In 1998, Soriana and Un Kilo de Ayuda joined efforts with an ideal, that more children under 5 years old in Mexico achieve the fullness of their physical, mental and emotional capacities. This union over time along with the expansion of Soriana made it easier for the institution to position the brand in the north through the Un Kilo de Ayuda cards.

A decade later, they consolidate their partnership by linking a corporate social responsibility strategy with the “Échale los Kilos” campaign of Un Kilo de Ayuda, 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.

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TELETONFor more than 10 years we have collaborated with Teleton Foundation to meet the needs of children and teenagers with disabilities and their families.

From 2008 to 2018, thanks to the collaboration of Soriana, its employees and customers, we have contributed $153,745,732.62 pesos that have helped to provide treatment to 4,522 children with disabilities, the equivalent of maintaining the CRIT of the State of Mexico (the largest in Mexico) for one year.

“Talking about Soriana and the Teleton Foundation means talking about unity, courage, commitment and solidarity. On behalf of Teleton Foundation and the thousands of families who daily find a worthy option to improve their life quality, we appreciate and acknowledge their valuable participation in the present and future of children and teenagers with disabilities, cancer and autism in the country.We can say with great joy that thanks to you the Teleton Event exceeded the 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 families by 2019. Thanks to the people that make conforms the current Soriana team, because throughout the year they leave their heart, effort and work in this project”.

ROSSANA CORONA ROMO,ECONOMICS GENERAL DIRECTORTELETON FOUNDATION.

Teleton Contributions

201820172016

48%

6%

46%

42%

5%

53%

51%

6%

43%

Customers Employees Soriana


That is why, at Soriana Foundation we support institutions and projects that provide an inclusive and quality education, especially for the most vulnerable and/or excluded girls and boys. As well as we promote access to different educational methodologies, artistic projects and initiatives that facilitates a more fluid articulation between all the actors of the educational community.

EDUSERIn 2017, with the aim of facilitating access to better education for vulnerable children, Soriana Foundation contributed to the establishment of the Soriana Eduser school in Torreon, which has a wide schedule and provides daily food for Children to 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.

EDUCATION SUPPORT

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

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MÚSICA POR EL CAMBIO (MUSIC FOR THE CHANGE)With the aim of supporting children’s and youth musical education projects, Soriana Foundation and Dibujando un Mañana Foundation have consolidated a strategic alliance that, based on the transformative power of music, allows us to offer a better quality of life and opportunities for development to Mexican girls, boys and young people in vulnerable situations.

Continuing the 2017 project, this year benefited 918 children who presented projects through Asociación Germinalia, A.C., Proesa Educativa por Mexico, A.C., Pro Mazahua, A.C., Jovenes Mexicanos en Movimiento, 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.

Thus, since the beginning of the partnership, $1,789,792 pesos have been invested, which have benefited 2,614 children, and 6 civil society Organizations.


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 (WE ARE FAMILY WITH MEXICO)During 2017, and in response to the earthquakes that hit the country in September, Soriana Organization implemented a campaign that would help those most affected by the reconstruction of their homes.

Thus, from September 21 to October 31, 2017, our customers were invited to make donations through the cashier line in all our stores, while Soriana assumed the commitment to double the contributions received by our customers supporting the reconstruction work.

To implement the project, the process of selecting the beneficiary families was monitored, and they were chosen from the list of affected people drawn up by the Federal

EMERGENCY SUPPORT

Government. The beneficiary families must have suffered a total damage to the property, be the owner of the land, not having the support of another institution for the construction of the house and, collaborate in cleaning and leveling the land so that the platform is ready to start the construction.

Thanks to our Customers and Soriana, we were able to benefit 112 families in the state of Oaxaca. With a social investment of $13,448,373.67 pesos, the delivery of their homes was made in two stages, 57 of them were delivered in the month of June in the city of Ixtepec, while the remaining 55 were delivered in the city of Juchitan in the month of September. The construction of the houses was in charge of the company Mejoramiento Integral Asistido, S.A. de C.V. which has extensive experience in the sector.

“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”.

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AND MORE HELPIn 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.

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

“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”.


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 talents exemplifying the human quality of the people and work teams that make up Soriana.

During 2018, 25,347 volunteering actions were carried out, in which participants had the opportunity to interact with the different groups of beneficiaries, as well as participate in various activities, such as remodeling spaces, contributing to the care and improvement of the environment, or participate in instances of raising awareness about the causes served by our social allies.

VOLUNTEER ACTIONS

In addition, they voluntarily participated in the program Esferas de la Esperanza (Spheres of Hope), through which gifts are given to children and senior in a celebration full of emotions.

This year, the participation in the “Ama tu Playa” (Love your Beach) program was highlighted, in which the beaches of Punta Nizuc and Marlin in Cancun, Quintana Roo were cleaned; as well as the support provided for the cleanup of La Silla River in Monterrey, Nuevo Leon, where the collaborators also had the opportunity to attend a workshop about the recovery of natural environments.

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 2011, and from that date until today we have 1,770 suppliers and more than 8,308 products that have been added to the Soriana value chain throughout the country.

Through the offer of preferential business conditions and direct advice with the supplier, we promote the integration and development of new supplier, who thanks to their efforts, efficiency in their productive and administrative processes, to the quality of their products and a permanent promotion at the sale point, they manage to offer their products in our stores competing openly with the great national and international brands.

Since the creation of the program we have served 10,403 suppliers, through the different sources and collection channels that we promote.

One of them is the Soriana Service and Customer Service Center, by its acronym CASC. This department receives all the communications that our stakeholders decide to send us in written from through the Web page. The CASC identified the type of request and in the particular case of offers of products and/or services, a format is sent to the customer or supplier to fill it out and forward it with relevant personal and/or company and of the product or service offered. Once the information is received, 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.

GENERATION OF VALUE AND INCOME


From January to December 2018 323 proposals from small suppliers were received, surpassing in 40% the amount received the previous year.

During 2018, we have organized and participated in 5 State Pyme Fairs, 6 Business Tables and 3 external events where we served more than 1,300 suppliers that participated in business tables, state fairs, and direct development of the Suppliers Development Program.

Since the beginning of the program, a total of 48 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.

Also in 2018, we received 50 Direct Development proposals from new suppliers, of which 33 were registered in our catalog through the different Soriana sales formats.

The results of the program have been very satisfactory. In addition that our customers find a varied catalog of local, regional, national and import articles; the suppliers have the facility to offer novel products, differentiated and of the typical taste of their region where they are leaders for later, placing themselves in the taste of clients of other regions of the country.

Business tables, regional fairs and external events

78%

CASC19%

Direct Development3%

Gathering means of potential suppliers 2018

Sales PYME Suppliers (Millions of pesos)

322.6

409.1

201820172016

228.8

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EL FARITO

Start in Soriana 2012

Product Corn tortillas, Flour Tortillas, Toasts

Scope Stores at the beginning

5

Scope Stores 2018

9

Sales $ at the beginning

$1,297,260

Sales $ 2018 $4,613,088

Impact in Community

The supplier has generated 8 new jobs due to its entrance to the value chain of Soriana

SUCCESS CASES

LAS CUMBRES


Product Pre-cooked tortillas, toasts and Sauces


54

Scope Stores 2018

70

Sales $ at the beginning

$486,696

Sales $ 2018 $2,920,051

Impact in Community

Generated 8 direct jobs and in 2019 wishes to increase to 16 jobs due to the operation growth.

“In 2012 we entered as small suppliers of Soriana and the experience has been very good, as we have grown together in the region and have supported us in the placement of our product, in the sale and promotion thereof at their stores. The same year, our production and distribution increased 9%”.

MANUEL ANTONIO CARDENAS MADEROMANAGER AND SERGIO IBARRA BARRAZAOWNER, EL FARITO.

“In February 2016, we entered as Soriana’s suppliers. Since its initiation has been a challenge, and given the magnitude of the customer, we decided to deliver the goods directly to the stores in order to learn more about the business operations, and make our service more personalized. We have received very good treatment from the heads of each department, head of reception and merchandise to managers of each branch. And our product had a favorable acceptance by Soriana’s customers. The day to day has been a true learning”.

ALEJANDRO DAVILA LEAL, GENERAL MANAGEREMPRESAS FARUNO, S.A. DE C.V.


DASAVENA GOURMET


Product Grains and Seeds: Granola


3

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 DIRECTORDASAVENA GOURMET, S.A. DE C.V.

78.77%Has increased the sale of

the small supplier in the last three years.

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WE HIGHLIGHT REGIONAL PRODUCTSWith the aim to promote regional products, and giving the small and medium producers the possibility of exhibiting their product in an outstanding way, we created an additional and special exhibition space located in a preferential place and with an institutional signage in accordance with the format of the store.

Thus, while strengthening the bond of our local and regional customers in acquiring products made in 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.

For more information write to [email protected]

“Thanks to this outstanding exhibition we have seen our sales increase, as people quickly identify us. If you do not see us in the gondola where we regularly are, they see us in this new space. Thank you very much for innovating and supporting us in making known our products made with quality and love, and thus to reach the homes of each customer of the Soriana’s stores. Thanks for boosting regional suppliers!”

LIC. KARINA GARCIA MOLINA,ASSOCIATE, KANIMI GROUP, CHIHUAHUA.

“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 considerable upturn in our sales numbers”.

LF. NORVEL MORENO DIAZ.COMMERCIAL MANAGER. CASA RECA. CAMPECHE.


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.

CARE AND PRESERVATION OF THE

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ENVIRONMENT

2.01%decrease in electric consumption in 2018

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

CARE AND PRESERVATION OF THE


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

During 2018, 614 business units were supplied with 711,726,765 kilowatts / hour (kWh) of renewable electric power, avoiding the emissions of 414,226 tons of CO2 into the atmosphere.

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.

TECHNOLOGY AT THE SERVICE OF THE REDUCTION OF ENVIRONMENTAL IMPACT

46.35 %of the total electric power comes from renewable sources.

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.

Consumption of electrical energy by supply source in kWh, Soriana 2018

CFE525,143,249 Combined Cycle

298,373,533

Eolic704,087,380

Solar7,639,385

Fossil Energy Consumption vs. Clean Energy Consumption (kWh)*

2016 1,224,322,034

2018

2017

391,980,992

929,842,484628,205,140

823,516,783711,726,763

Clean energy consumption Fossil energy consumption

*Clean energy = Solar energy + Eolic energy

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From 2016 to 2018increased

81.57 % the supply of clean energies

EOLIC ENERGYThe main source of renewable energy that we use to supply the operation of our stores is that which uses 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 mechanical energy.

Currently, Soriana has 3 exclusive wind farms in Tamaulipas and Parques as a consumer partner in 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, avoiding the emission of 409,779 tons of CO2, equivalent to the pollution generated by 119,818 automobiles in the same period.

Total Energy Consumption vs Renewable Energies Consumption* (kWh)

Total energy consumption Renewable energy consumption

1,616,303,0261,558,047,624 1,535,243,546

391,980,992628,205,140 711,726,763

2016 20182017

2016 20182017

Stores supplied with Eolic Energy vs Emissions of CO2 avoided (Tons)

365,615

179,527

414,22530

7 st

ores

626

stor

es

599

stor

es

We avoid the emission of

tons of CO2

959,367 =

The pollution that

automobiles generate in one year

280,151 The year Supply of

homes596,887=

From 2016 to 2018

*Renewable energy = eolic energy + solar energy + combined cycle


SOLAR ENERGYWe also take advantage of the energy that comes from the sun as a clean energy alternative to supply our business units.

In 2018, with a total of 15 business units with this technology, it allowed us to generate 7,639,385 kWh, avoiding the emission of 4,446 tons of CO2 into the atmosphere.

EQUIPMENT AND INNOVATIONIn Soriana we look for different alternatives that help us to fulfill the objective of making our operation more sustainable every day.

We have a Monitoring Center where energy 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 system, reaching a total of 334 stores that are working under these schemes achieving a decrease in energy consumption of 23,158,906 kWh, which equal to 13,478 tons of CO2 that have been avoided to emit into the atmosphere.

In addition, as part of the equipment of our business units, an investment of $12,343,096 pesos was made to remodel the lighting systems of 11 Stores, which through the installation of LED technology, showed an immediate reduction of more than 50% of the electricity consumption used in the lighting of stores and, consequently a reduction in emissions to the atmosphere. EMISSIONSAs part of our strategy to reduce CO2 emissions, we constantly monitor the impact generated by our operations.

In 2018, as a result of the positive verification we have obtained, the emissions of previous years have been recalculated to be in accordance with our current results.

2016 20182017

1,258,009

1,321,405

1,045,847

Total of emissions CO2

334 stores working under the monitoring system for energy saving.

From 2016 to 2018 we reduce in

20.8% our emissions of CO2 to the atmosphere.

8 2

To achieve this, we developed different awareness campaigns as well as instances of present and virtual training.

The courses and manuals for the staff of each work unit under the “Vamos a Ahorrar Juntos” (Let’s Save Together) Campaign were installed in Soriana University Platform (UVSOR) with the objective of training 5,104 collaborators achieving a scope of 87% of the staff sensitized in the 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 their consumption profiles of heating, ventilation and air conditioning (HVAC) and lighting which expose detours and opportunity areas.

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 care, among others.

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.

Training Modality 2018

Virtual Modality

93%Presence Modality

7%

Collaborators trained in energy consumption

122

4,4495,640

2016 20182017

We increased

21% the amount of people

trained in regard former year.

ENVIRONMENTAL EDUCATION AND CULTURE

8 3i n f o r m e d e r e s p o n s a b i l i d a d s o c i a l y s o s t e n i b i l i d a d 2 0 1 8 S O R I A N A

5,500collaborators trained for the correct energy consumption.

CAMPAÑA “VAMOS A AHORRAR JUNTOS” (“LET’S SAVE TOGETHER” CAMPAIGN)We have been implementing this campaign for 2 years, which seeks to sensitize employees to the correct consumption of energy, through the use of strategies approach based on schedules and costs, correct operating practices in store, the interpretation of graphic reports sent every week as part of the consumption monitoring in stores and, all the necessary tools so that they can use the energy more efficient in the different roles they occupy.

In person, 292 employees were trained with a scope of 146 stores, while 5,104 employees of 334 stores were added to the campaign through online training.

Thus, around 5,500 employees of 600 business units have been trained since the creation of the campaign.

This campaign is added to the efforts made through the Monitoring Center, accompanying the stores in the monitoring and analysis of energy consumption, detours and opportunity areas, significantly reducing consumption in the business units.

“The SEM HUNT Monitoring Program is an excellent and easy to understand tool that helps us monitor energy consumption in the store and take immediate action. We learned that it is very important to review how work teams are working, and to give maintenance. Work plans must be made to carry out period reviews to the teams, verify the switching on and off of the lighting time and, follow the refrigerating procedures. We have to take advantage of natural light to the fullest, as well as being aware of the fact that camera doors are not open, etc. To achieve these savings, it was essential to raise awareness among the staff and apply the best practices of the experts’ team. I encourage my team to achieve the established savings goals, highlighting that while saving, we all obtain benefits including a greater profit sharing, bonuses, among others”.

JORGE LUIS GUZMAN SANTIAGO.MANAGER. BRANCH 521, SORIANA.

8 4

ALTERNATIVE EXPLOITATION

All the by-products have a high potential to be used in different processes that include their reuse for the elaboration of new products, contributing added value to the original products and recovering altered environmental conditions.

We are aware that our work brings great benefits to our environment, interest groups and the company, promoting the recovery and reprocessing of products and by-products.

SUB-PRODUCTSAmong the recyclable and/or usable materials are: plastic, paper and cardboard, metals and the organic; these wastes are susceptible to be incorporated into productive processes or to be reused in their original function or in some related one, through processes of adaptation and/or transformation.

At Soriana, we identify depleted and non-depleted by-products to comply with the established procedures and contribute so that every Store involved in the control, monitoring and placement of said materials so they can be used for different usages.

We have a very simple collection process that allows us to reach the goals that we propose year after year taking advantage of the return of our transports to our Distribution Centers.

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.

The entire by-product collect must be concentrated in the respective collection sites that 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 what the catalog of by-products indicates.

It must verify:• The weight or quantities of the different by-products.• 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 to its respective Distribution Center.

GATHER

VERIFY

SALE

ORDER


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:

From 2016 to 2018 through our recycling processes we have achieved to recycle:

220,250 tons of cardboard

11,645 tons of plastic STF

Number of houses that would be fed during

one year

92,304

ENERGY SAVED

Trees of 11 meters

1,327,411TREES SAVED

Equivalent number of people generating waste

for a year

280,997

DEVIATED WASTE

Millions of gallons

33,863WATER SAVED

Mw-h

758,012

ENERGY SAVED

Barrels of petroleum

1,259,590PETROLEUM

SAVED

Tons of CO2e

457,700

AVOIDED EMISSIONS

BTUMillions

2,598,038BTU’S SAVED

8 6

CAD Transports is in charge to perform one of the most important activities for Soriana: the move and transport of merchandise from the 13 Distribution Centers to the Stores, keeping a close relation with suppliers and customers.

This important link of the supply chain and Soriana logistics counts with a motor fleet of 439 Equipment and 595 trailer equipment at Soriana’s service, that allows having presence throughout the national territory and servicing the 813 stores of Soriana.

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.

The Distribution of fresh of Soriana counts with the refrigerated second largest fleet of Mexico, and the third most important fleet of dry.

59,9

18 tr

ips

59,2

02 tr

ips

42.042.1

20182017

TripsKilometers

Amount of trips vs millions of Kms. traveled

ENVIRONMENTAL IMPACT AND TRANSPORTATION


OPERATORS TRAININGIn 2004 we created the Operators School with the purpose to provide training to operators to develop the attitudes, knowledge and skills required to operate a 5th Wheel Truck, and thus ensure the delivery of perishable goods to Soriana’s Commercial Centers with reliability.

Through instances that contemplate bringing the Soriana’s values to each professional driver, courses of human development, technical training and practice are implemented so that operators have the necessary tools to cope with any situation.

As part of the training process, the certification and medical examination course is included by the Secretariat of Communications and Transportation, an essential requirement to grant the federal license, which are monitored by the Operations Training Department.

Once it is completed the 3-month stage with its license filing and medical examination, a final evaluation is carried out with the instructor, with the intention of certifying the operator as suitable, and become a Soriana operator.

As tools to strengthen the curriculum, we have a Mechanical Laboratory where there are different parts of a truck chassis with the aim of practically instructing the operators so that they maintain their unit in optimal conditions through the familiarization of the operation of the main systems and components that make up their unit, as well as the basic recommendations and diagnosis for troubleshooting.

In addition, in 2018 we developed a Simulator that allows operators in training to gain practical experience on the conditions of the vehicles, the circumstances according to the environmental condition, the programming of breakdowns and climatic conditions.

From its creation to the present, 168 generations have graduated with a staff of 490 operators in the bases that the school has in Chihuahua, Cuautitlan, Guadalajara, Hermosillo, Queretaro, Salinas Victoria, Tijuana and Villahermosa, reaching 78% of the operators’ workforce.

99 operators graduated in 2018, with an increase of 62.3% in relation to the previous year. In addition, at the Salinas Victoria base, we have the participation of female staff in the Operators School, where 3 female 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.

8 8

RENEWAL TIRE PROGRAMThe 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.

RECOGNITIONIn 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.

4,303Tires renewed in the last three years, which generates saving of 244,410.4 liters of petroleum, and a cost reduction of 45%, compared with the purchase of new tires.

Amount of Renewed Tires

2016 1,292

2018

2017 1,1951,816

“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.


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 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

• ODS 16: Peace, justice and solid institutions

Mission, Vision and Values • Standard GRI 102: General Contents 2016. Ethics and Integrity. Content 102-16: Values, principles, standards and behavior rules.

• ODS 16: Peace, justice and solid institutions. ---

General numeral and important figures • Standard GRI 102: General Contents 2016. Profile of the Organization. Content 102-7: Size of organization.

• 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.

• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 16: Peace, justice and solid institutions.

---

2. MESSAGE OF THE GENERAL DIRECTOR

--- • Standard GRI 102: General Contents 2016. Strategy. 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.

• ODS 16: Peace, justice and solid institutions. Fundamental matter: Organization Governance.

INDEX OF APPLICABLE STANDARDS

9 0

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 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

• ODS 16: Peace, justice and solid institutions

Mission, Vision and Values • Standard GRI 102: General Contents 2016. Ethics and Integrity. Content 102-16: Values, principles, standards and behavior rules.

• ODS 16: Peace, justice and solid institutions. ---

General numeral and important figures • Standard GRI 102: General Contents 2016. Profile of the Organization. Content 102-7: Size of organization.

• 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.

• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 16: Peace, justice and solid institutions.

---

2. MESSAGE OF THE GENERAL DIRECTOR

--- • Standard GRI 102: General Contents 2016. Strategy. 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.

• ODS 16: Peace, justice and solid institutions. Fundamental matter: Organization Governance.


3. MANAGEMENT OF SOCIAL RESPONSIBILITY

Our Model of Social Responsibility • Standard GRI 102: General Content 2016. Profile of organization. Content 102-11: Precautionary principle or approach.

• Standard GRI 102: General Content 2016. Ethics and integrity. Content 102-16: Values, principles, standards and behavior normativities.

• Standard GRI 102: General Content 2016. Content 102-21: Consultation to interest groups on economic, environmental and social issues.

The SDG´s are linked directly with the Social Responsibility Model and Soriana´s Sustainability Policy.

• Fundamental matter: Organization Governance.• Fundamental matter: Human Rights.• Fundamental matter: Labor Practices.• Fundamental matter: Environmental.• Fundamental matter: Fair operation practices.• Fundamental matter: Consumer issues.• Fundamental matter: Active participation and

development of the community.

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. Governance. Content 102-21: Consultation to interest groups on economic, environmental and social issues.

• Fundamental matter: Consumer issues. Issue 1: fair practices of marketing, objective and impartial information and fair contracting practices.

• 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 102-41: Agreements of collective negotiation.

• Standard GRI 405: Diversity and equality of opportunities 2016. Content 405-1: Diversity in government bodies and employees.

• ODS 5: Gender equality.• ODS 8: Decent work and economic growth.• ODS 10: Reduction of inequalities.

• Fundamental matter: Human rights. Issue 5: discrimination and vulnerable groups.

• Fundamental matter: Human rights. Issue 7: economic, social and cultural rights.

• 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. Content 404-2: Programs to improve the employees’ skills and transition assistance programs.

• Standard GRI 404: Formation and teaching 2016. Content 404-3: Percentage of employees receiving periodic evaluations.

• ODS 8: Decent work and economic growth.• ODS 10: Reduction of inequalities.

• Fundamental matter: Human rights. Issue 1: due diligence.


• Fundamental matter: Labor practices. Issue 5: human development and training in the work place.

Soriana Culture • Standard GRI 102: General Content 2016. Ethics and integrity. Content 102-16: Values, principles, standards and behavior normativities.

• ODS 4: Quality education.• ODS 5: Gender equality.• ODS 16: Peace, justice and solid institutions.

Training for the work • Standard GRI 404: Formation and teaching 2016. Content 404-1: Average training hour per year per employee.

• ODS 4: Quality education.• ODS 5: Gender equality.• ODS 8: Decent work and economic growth.

SECTION OF REPORT / ITEMS STANDARD GRI GOALS OF SUSTAINABLE DEVELOPMENT STANDARD ISO 26000

9 2

3. MANAGEMENT OF SOCIAL RESPONSIBILITY

Our Model of Social Responsibility • Standard GRI 102: General Content 2016. Profile of organization. Content 102-11: Precautionary principle or approach.

• Standard GRI 102: General Content 2016. Ethics and integrity. Content 102-16: Values, principles, standards and behavior normativities.

• Standard GRI 102: General Content 2016. Content 102-21: Consultation to interest groups on economic, environmental and social issues.

The SDG´s are linked directly with the Social Responsibility Model and Soriana´s Sustainability Policy.

• Fundamental matter: Organization Governance.• Fundamental matter: Human Rights.• Fundamental matter: Labor Practices.• Fundamental matter: Environmental.• Fundamental matter: Fair operation practices.• Fundamental matter: Consumer issues.• Fundamental matter: Active participation and


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. Governance. Content 102-21: Consultation to interest groups on economic, environmental and social issues.

• Fundamental matter: Consumer issues. Issue 1: fair practices of marketing, objective and impartial information and fair contracting practices.


• 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 102-41: Agreements of collective negotiation.

• Standard GRI 405: Diversity and equality of opportunities 2016. Content 405-1: Diversity in government bodies and employees.

• ODS 5: Gender equality.• ODS 8: Decent work and economic growth.• ODS 10: Reduction of inequalities.

• Fundamental matter: Human rights. Issue 5: discrimination and vulnerable groups.



• Fundamental matter: Human rights. Issue 1: work and labor relations.

Human Development • Standard GRI 404: Formation and teaching 2016. Content 404-2: Programs to improve the employees’ skills and transition assistance programs.

• Standard GRI 404: Formation and teaching 2016. Content 404-3: Percentage of employees receiving periodic evaluations.

• ODS 8: Decent work and economic growth.• ODS 10: Reduction of inequalities.



• Fundamental matter: Labor practices. Issue 5: human development and training in the work place.

Soriana Culture • Standard GRI 102: General Content 2016. Ethics and integrity. Content 102-16: Values, principles, standards and behavior normativities.

• ODS 4: Quality education.• ODS 5: Gender equality.• ODS 16: Peace, justice and solid institutions.

Training for the work • Standard GRI 404: Formation and teaching 2016. Content 404-1: Average training hour per year per employee.

• ODS 4: Quality education.• ODS 5: Gender equality.• ODS 8: Decent work and economic growth.



Health and Labor Safety --- • ODS 3: Health and wellness.• ODS 5: Gender equality.• ODS 8: Decent work and economic growth



• 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 integrity. Content 102-17: Assessment and ethical concerns mechanisms.

• ODS 8: Decent work and economic growth.• ODS 16: Peace, justice and solid institutions.

• Fundamental matter: Human rights. Issue 4: complaints resolution.

• Fundamental matter: human rights. Issue 6: civil and politic rights.

5. BUSINESS ETHICS

Good practices of Corporate Governance • Standard GRI 102: General Content 2016. Governance. Content 102-18: Governance structure.

• Standard GRI 102: General Content 2016. Governance. Content 102-21: Consultation to interest groups on economic, environmental and social issues.

• ODS 8: Decent work and economic growth.• ODS 10: Reduction of inequalities.• ODS 16: Peace, justice and solid institutions.

• Fundamental matter: Organization governance.• Fundamental matter: complaints resolution.• Fundamental matter: Consumer issues. Issue

4: services of customer attention, support and complaints resolution and controversies.

• Fundamental matter: Consumer Issues: Issue 5: protection and privacy of consumer data.

Customers Service and Attention • Standard GRI 102. General Content 2016. Governance. Content 102-21: Consultation to interest groups on economic, environmental and social issues.


• Fundamental matter: Consumer issues. Issue 4: services of customer attention, support and complaints resolution and controversies.

Risks Management • Standard GRI 102: General Content 2016. Organization Profile. Content 102-11: Precautionary principle or approach.

• Standard GRI 201: Economical performance 2016. Content 201-2: Financial implications and other risks and opportunities arising from climate change.

• Fundamental matter: Organization governance.• Fundamental matter: Human Rights.• Fundamental matter: Labor Practices.• Fundamental matter: Environmental.• Fundamental matter: Fair operation practices.• Fundamental matter: Consumer issues.• Fundamental matter: Active participation and


Value Line • Standard GRI 102: General Content 2016: Ethics and integrity. Content 102-17: Assessment and ethical concerns mechanisms.

• Fundamental matter: Human Rights. Issue 6: civil and politic rights.

• 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.



9 4

Health and Labor Safety --- • ODS 3: Health and wellness.• ODS 5: Gender equality.• ODS 8: Decent work and economic growth



• 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 integrity. Content 102-17: Assessment and ethical concerns mechanisms.

• ODS 8: Decent work and economic growth.• ODS 16: Peace, justice and solid institutions.


• Fundamental matter: human rights. Issue 6: civil and politic rights.

5. BUSINESS ETHICS

Good practices of Corporate Governance • Standard GRI 102: General Content 2016. Governance. Content 102-18: Governance structure.

• Standard GRI 102: General Content 2016. Governance. Content 102-21: Consultation to interest groups on economic, environmental and social issues.

• ODS 8: Decent work and economic growth.• ODS 10: Reduction of inequalities.• ODS 16: Peace, justice and solid institutions.

• Fundamental matter: Organization governance.• Fundamental matter: complaints resolution.• Fundamental matter: Consumer issues. Issue

4: services of customer attention, support and complaints resolution and controversies.

• Fundamental matter: Consumer Issues: Issue 5: protection and privacy of consumer data.

Customers Service and Attention • Standard GRI 102. General Content 2016. Governance. Content 102-21: Consultation to interest groups on economic, environmental and social issues.


• Fundamental matter: Consumer issues. Issue 4: services of customer attention, support and complaints resolution and controversies.

Risks Management • Standard GRI 102: General Content 2016. Organization Profile. Content 102-11: Precautionary principle or approach.

• Standard GRI 201: Economical performance 2016. Content 201-2: Financial implications and other risks and opportunities arising from climate change.

• Fundamental matter: Organization governance.• Fundamental matter: Human Rights.• Fundamental matter: Labor Practices.• Fundamental matter: Environmental.• Fundamental matter: Fair operation practices.• Fundamental matter: Consumer issues.• Fundamental matter: Active participation and


Value Line • Standard GRI 102: General Content 2016: Ethics and integrity. Content 102-17: Assessment and ethical concerns mechanisms.

• Fundamental matter: Human Rights. Issue 6: civil and politic rights.

• 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.




Sponsorships --- • ODS 10: Reduction of inequalities. • Fundamental matter: Active participation and community development. Issue 2: education and culture.


7. LINK WITH THE COMMUNITY

Active participation in the community • Standard GRI 203: Economic indirect impacts 2016. Content 203-1: Investment in infrastructure and supported services.

• Standard GRI 203: Indirect economic impacts 2016. Content 203-2: Significant indirect economic impacts.

• Standard GRI 413: Local communities 2016. Content 413-1: Operations with participation of local community, impact assessments and development programs.

• ODS 1: End of poverty• ODS 2: Hunger zero.• ODS 3: Health and wellness.• ODS 5: Gender equity.• ODS 7: Affordable and non-polluting energy• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 10: Reduction of inequalities.• ODS 11: Sustainable cities and communities.• ODS 17: Alliances to achieve goals.


• Fundamental matter: Active participation and community development. Issue 1: active participation of the community.

• Fundamental matter: Active participation and community development. Issue 3: employment creation and development of skills.

• Fundamental matter: Active participation and 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• ODS 2: Hunger zero.• ODS 3: Health and wellness.• ODS 5: Gender equity.• ODS 10: Reduction of inequalities.• ODS 13: Action for the weather.• ODS 11: Sustainable cities and communities.• ODS 17: Alliances to achieve goals


• Fundamental matter: Active participation and community development. Issue 2: education and culture.

• Fundamental matter: Active participation and community development. Issue 6: health.

• Fundamental matter: Active participation and community development. Issue 7: social investment.

Support to education --- • ODS 4: Quality education.• ODS 10: Reduction of inequalities.



Support to emergencies --- • ODS 1: End of poverty.• ODS 9: Industry, innovation and infrastructure.



Volunteer Actions --- • ODS 1: End of poverty.• ODS 10: Reduction of inequalities.• ODS 14: Submarine Life.• ODS 15: Life of terrestrial ecosystems.



• Fundamental matter: Environmental. Issue 4: Environmental protection, biodiversity and restoration of natural habitats.


9 6

Sponsorships --- • ODS 10: Reduction of inequalities. • Fundamental matter: Active participation and community development. Issue 2: education and culture.


7. LINK WITH THE COMMUNITY

Active participation in the community • Standard GRI 203: Economic indirect impacts 2016. Content 203-1: Investment in infrastructure and supported services.


• Standard GRI 413: Local communities 2016. Content 413-1: Operations with participation of local community, impact assessments and development programs.

• ODS 1: End of poverty• ODS 2: Hunger zero.• ODS 3: Health and wellness.• ODS 5: Gender equity.• ODS 7: Affordable and non-polluting energy• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 10: Reduction of inequalities.• ODS 11: Sustainable cities and communities.• ODS 17: Alliances to achieve goals.



• Fundamental matter: Active participation and community development. Issue 3: employment creation and development of skills.

• Fundamental matter: Active participation and community development. Issue 4: development and access to technology.


• Fundamental matter: Active participation and community development. Issue 7: Social investment.

Link with Institutions --- • ODS 1: End of poverty• ODS 2: Hunger zero.• ODS 3: Health and wellness.• ODS 5: Gender equity.• ODS 10: Reduction of inequalities.• ODS 13: Action for the weather.• ODS 11: Sustainable cities and communities.• ODS 17: Alliances to achieve goals



• Fundamental matter: Active participation and community development. Issue 6: health.


Support to education --- • ODS 4: Quality education.• ODS 10: Reduction of inequalities.



Support to emergencies --- • ODS 1: End of poverty.• ODS 9: Industry, innovation and infrastructure.



Volunteer Actions --- • ODS 1: End of poverty.• ODS 10: Reduction of inequalities.• ODS 14: Submarine Life.• ODS 15: Life of terrestrial ecosystems.



• Fundamental matter: Environmental. Issue 4: Environmental protection, biodiversity and restoration of natural habitats.



Value and income generation • Standard GRI 102: General Contents 2016. Organization Profile. Content 102-9: Supply chain.


• Standard GRI 204: Acquisition practices 2016. Content 204-1: Average in expense in local suppliers.

• ODS 1: End of poverty.• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 10: Reduction of inequalities.• ODS 11: Sustainable cities and communities.• ODS 12: Responsible consumption and production.

• Fundamental matter: Fair operation practices. Issue 4: promote social responsibility in the value chain.

• Fundamental matter: Active participation and community development. Issue 3: employment creation and skills development.


8. ENVIRONMENTAL CARE AND PRESERVATION

Technology at the service of the reduction of environmental impact

• Standard GRI 201: Economic performance 2016. Content 201-2: Financial implications and other risks and opportunities arising from climate change.

• Standard GRI 302: Energy 2016. Content 302-1: Energetic consumption within the organization.

• Standard GRI 302: Energy 2016.Content 302-2: Energetic consumption outside the organization.

• Standard GRI 302: Energy 2016. Content 302-4: 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.

• ODS 3: Health and wellness.• ODS 7: Affordable and non-polluting energy• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 11: Sustainable cities and communities.• ODS 12: Responsible consumption and production.• ODS 13: Action for the weather.• ODS 15: Life of terrestrial ecosystems.

• Fundamental matter: Environmental. Issue 1: Pollution prevention.

• Fundamental matter: Environmental. Issue 2: sustainable use of resources.

• Fundamental matter: Environmental. Issue 3: mitigation of the climate change and adaptation to it.

Environmental education and culture --- • Fundamental matter: Environmental. Issue 1: Pollution prevention.


Alternative use • Standard GRI 306: effluents and waste 2016. Content 306-2: Waste by type and method of 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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9 8

Value and income generation • Standard GRI 102: General Contents 2016. Organization Profile. Content 102-9: Supply chain.


• Standard GRI 204: Acquisition practices 2016. Content 204-1: Average in expense in local suppliers.

• ODS 1: End of poverty.• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 10: Reduction of inequalities.• ODS 11: Sustainable cities and communities.• ODS 12: Responsible consumption and production.

• Fundamental matter: Fair operation practices. Issue 4: promote social responsibility in the value chain.

• Fundamental matter: Active participation and community development. Issue 3: employment creation and skills development.


8. ENVIRONMENTAL CARE AND PRESERVATION

Technology at the service of the reduction of environmental impact

• Standard GRI 201: Economic performance 2016. Content 201-2: Financial implications and other risks and opportunities arising from climate change.

• Standard GRI 302: Energy 2016. Content 302-1: Energetic consumption within the organization.

• Standard GRI 302: Energy 2016.Content 302-2: Energetic consumption outside the organization.

• Standard GRI 302: Energy 2016. Content 302-4: 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.

• ODS 3: Health and wellness.• ODS 7: Affordable and non-polluting energy• ODS 8: Decent work and economic growth.• ODS 9: Industry, innovation and infrastructure.• ODS 11: Sustainable cities and communities.• ODS 12: Responsible consumption and production.• ODS 13: Action for the weather.• ODS 15: Life of terrestrial ecosystems.

• Fundamental matter: Environmental. Issue 1: Pollution prevention.


• Fundamental matter: Environmental. Issue 3: mitigation of the climate change and adaptation to it.

Environmental education and culture --- • Fundamental matter: Environmental. Issue 1: Pollution prevention.


Alternative use • Standard GRI 306: effluents and waste 2016. Content 306-2: Waste by type and method of 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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[email protected]

(81) 8329.9014

DIS

EÑO

: FH

DS

ORGANIZACIÓN SORIANAAlejandro de Rodas 3102-A / Col. Cumbres 8º Sector / Monterrey, N.L.. México. CP.64610

[email protected]

(81) 8329.9014

index [] · of social responsibility undertaken by soriana organization from january 1st through...

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