Annual Report SERHS 2013-2014 by SERHS

SERHS

2013 | 2014 a n n ua l r e p o rt

Registered address: Castell JalpĂ, s/n - 08358 Arenys de Munt (Barcelona) Tax and administrative address: Carrer GarbĂ, 88-90 - 08397 Pineda de Mar (Barcelona) - Tel. 902 010 405 - (+34) 93 767 03 78 - Fax (+34) 93 767 05 40 - grupserhs@serhs.com

SERHS 2013 | 2014 a n n ua l r e p o rt

SERHS annual report 2013-2014

summary Institutional area

SERHS Divisions

- Letter from the President ................................... 4

- SERHS Distribution ................................................... 14

- On the inside ........................................................... 8

- SERHS Tourism ..........................................................20 - SERHS Hotels ..............................................................26 - SERHS Food .................................................................32 - SERHS Projects ...........................................................38

Business activities

- SERHS Services .........................................................42

Human resources.......................................................... 42

- Letter from the CEO .............................................10

- Staff administration ............................................44

- Training ....................................................................45 - Visibility ...................................................................46

- Occupational Risk Prevention ........................46

- Accidents .................................................................47 - SERHS New Technologies .....................................50 - SERHS Real Estate .....................................................51 - SERHS Equity and Portfolio ...................................51 - Related Companies ....................................................51

SERHS annual report 2013-2014

Corporate Social Responsibility ............................. 52

Economic-Financial Information............................. 61

- Policy of conciliation of working and family life............................................................... 53

Presentation ..........................................................62

Consolidated Annual Accounts.......................63

- Families program .......................................................54

Auditorsâ&#x20AC;&#x2122; report .....................................................64

- Serhs manages through talent ............................. 55

Balance Sheet ........................................................ 65

- Documentary management plan.......................... 55

Profit and Loss account .....................................66

- Environment.............................................................. 57

Investment activity ............................................67

Income from operation ......................................68

Consolidated information ................................69

- Social area.................................................................. 59

- Supportive agreements ...................................... 59

- Emblematic events ..............................................60

SERHS annual report 2013-2014

Dear shareholders, ladies and gentlemen, Going through the last events of our group, we must start by remembering that in the past September we shared out the dividend, as every year with the partners, for €2,775,500 between cash and shares in the group. At the General Assembly we also agreed to share out, as every year, one released share per 60 under ownership, in other words 714,834 shares which have now left our group with 43,604,886 shares. This means that for the first time our share capital has exceeded 100 million euros (more than 16,600 million of the old pesetas). It is true that almost 40 years have gone by, but I think that not even the most optimistic could have thought that one day we would reach this figure. We must remember that we started with an initial capital of 750,000 pesetas and that in no year have we stopped handing out profits, not even in these last so complicated years. Therefore I believe that we can be satisfied with what we have done. This year we will not be increasing the capital as such but, as every year, we will put group shares on sale because we are very interested in reducing our treasury, although if we have a surplus treasury, current laws do not allow us to buy shares. Our intention is to continue to buy shares in a controlled

manner, as we have done with all partners needing to sell. At the last General Assembly of Shareholders, also with a view to reducing our treasury, we made a proposal to sell shares, which ended on 31 August with a very satisfactory result, selling nearly half a million shares for a total of €1,725,000. I want to thank the partners for the confidence and support they have given us in these recent years of general difficulty. I want to stress that in the last election dividend operation, 993 partners (67% of all), chose shares against cash and at the present time this is comforting and encouraging because it shows how the partners feel identified with the group. Talking about this last year now, first of all I would like to highlight the sharp fall in Russian tourism last summer and the negative effect of the very bad weather, which seriously affected the months of July and August, which are very important for our income statement. Furthermore, it is also difficult to compare the tax year of 8 months (1.01 31.08.2013) with the last 12-month year (1.09.2013 - 31.08.2014). This year an operation result of €13.2 million was achieved, 57% up on the €8.4 million last year. Sales amounted to €473,304,000, 37.07% up on last

SERHS annual report 2013-2014

“

Almost 40 years have passed, but I think that not even the most optimistic could have thought that one day we would reach a share capital of €100 million. “ Ramon Bagó i Agulló Chairman of the Board of Administration of SERHS

year. These figures are benefited by the extraordinary result of €5 million produced by the sale of our warehouse in Brazil, but harmed by the fact of comparing an eight-month financial year in 2013 (January-August) with last year which was 12 months (September 2013 to August 2014) as it must be remembered that these 12 months include October, November and December, which are difficult months for our business. Our results were also affected by the financial expenditure which increased by €3,500,000 this year. In this chapter, I must stress that it is not that we do not have more credit, the fact is that it is a financial year with three months more than the previous one, and that the credit constituted in Brazil must take into account the current interest rate in that country, which is considerably higher than those to which we are accustomed here. When taking out the credit in Brazil, we were already aware of this, but in order to avoid currency exchange risks, we chose to do it. The different cost of interest will in the long-term be compensated by the exchange risk of the real, which is a very volatile currency. In any case, without this increases in the financial expenditure we would have more than double the result of last year, and it is for this reason that our

main concern is to reduce this section of interest, for which we are in contact with financial entities both in Catalonia and Brazil. There is no need to say that 2014 was a difficult year which forced us to reduce our margins. The competition is more and more aggressive and a large part of it uses procedures which are not very orthodox in commercial relations and our group acts in strict accordance with the legal rules in all areas of business. The fact that this is causing us a lot of harm. Despite everything, I believe that we have managed to overcome the difficulties that have faced this and close a reasonably good year given the economic circumstances of the country. Our businesses in Andalusia increased considerably; the good season of our hotel in Brazil, which with the World Cup achieved very important record turnovers, and; the good operation of the SERHS Rivoli Rambla in Barcelona has helped us. By the way, the SERHS Natal Grand Hotel received the United States football team and the American ambassador in Brazil send us a letter of congratulations, which has increased our prestige in Brazil. With regard to the division of Tourism, this continues to watch the situation in Russia with concern, which at

SERHS annual report 2013-2014

the present time does not seem to be improving and makes us believe that 2015 might be very complicated. Despite everything in the past year we have already seen growth in other markets, to the extent that if we compare the 12-month sales of one year with another, we will see that we have been capable of swallowing the fall in Russian tourism with tourists from other countries, and still increase the division’s sales by more than €5 million. We believe we will continue to grow thanks to our penetration in European markets and especially the proximity markets of Portugal and France, taking advantage of the good offer we have not only in Catalonia but along the whole of the Spanish coastline and especially in Andalusia. This year we have taken over the company Hotel Juice, which is engaged in a digital marketing for direct sales through hotel websites, which gives us an extra competitive edge to strengthen consumer awareness and to better cover their needs. Along with another tour operator, we have started the Catalonia Senior programme for +55s tourism. The Distribution division was the first large distributor of the Horeca channel in Catalonia to achieve ISO 9001:2008 certification. We also fini-

shed a study in order to improve the efficiency of the organisation and have started up a new policy of action more focused on support, service and help to our customers. Having performed the pertinent pilot tests, work is already under way to start up in all areas of the division’s action and it will undoubtedly be a very important step in sales. We have taken part in tenders for groups and we have also been the first online sales channel. We will continue improving our web services where this year we reached a turnover of €30 million. The FOOD division continues to increase its portfolio of customers in the Educa sector (with public and private schools) and in the healthcare sector. We must also stress the name change of the system previously known as Eudec, which is now called the Security, Innovation & Nutrition for Catering system and aims to strengthen the magnitude of safety, innovation and nutrition in group restoration. In the immediate future work will begin on developing the College sector, which, along with the Clinical sector already introduced in some management centres, will be amongst those of greatest magnitude in the division. EUDEC as a product will continue to scale with online sales through the website eu-

SERHS annual report 2013-2014

“

Every day our organisation is more agile, efficient and prepared for us to face difficult situations with success. “

decfood.com, which presents a catalogue of more than 400 recipes for the healthcare, educational, restaurant and hotel areas (the latter highlighting the new Room Service product). Online sales are still the principal objective of the SERHS Projects division through the serhsequipments.com website. Making a balance of the first year and looking at the significant figures, we have reached 8,400 articles, 200 daily visits, more than 550 registered subscribers, 300 customers and nearly 50 suppliers/ collaborators. As for the hotel division, the recent incorporation of the two urban hotel establishments SERHS Del Port and SERHS Carlit in our portfolio strengthens our presence in the city of Barcelona. I would like to highlight the good opinions and online reputation of our hotels, and particularly the Vilar Rural de Sant Hilari, which this year received the certificate of excellence from Tripadvisor 2014 in recognition of its excellence as a rural hotel establishment according to the opinions of users on this travel website, considered the largest in the world. The Villages constantly invest in improving the quality of the service and in the needs we detect amongst our customers, as is the case of the incorporation of the Baby

Friendy stamp in our premises, with utensils, menus, activities and installations adapted to people with babies, and our adhesion to the Bikefriendly stamp in order to receive and treat cycle tourists in a special way in accordance with their needs. It is for all of this that we believe that next year’s perspectives will be good. Every day we have a more agile and efficient organisation prepared to successfully face up to difficult situations and now we have a very well-prepared and enthusiastic management structure and a technological development among the most advanced in the country. It is also important to highlight the technological improvements we incorporate in our divisions each year. This year in the tourism division, our booking centre answered 20 million daily requests, and the distribution division deliverers already have tablets to manage all incidents as they occur and to correct the bill. We are more and more proud of being a distributor which has sold on the Internet for the last three years. Finally, with respect to our internal organisation, I would highlight the Documentary Digitisation Plan, through which we are gradually eliminating paper from our offices to turn them into

paperless offices in the not too distant future. We begin 2015 thinking of the celebration of our 40 years, which we will conclude with the summer dinner in 2016. I would not like to finish without recognising the important work of our staff, and the continuous confidence our partners have shown us and I assure you that we will continue to fight to produce work, well-being and benefit in order to continue to be the 1st Tourist Group in Catalonia.

Thank you.

Ramon Bagó i Agulló Chairman of the Board of Administration of SERHS

SERHS annual report 2013-2014

On the inside

SERHS achieves a share capital of more than €100 million

Ramon Bagó, Chairman of SERHS, receives the title of Citizen of Natal

The Extraordinary General Assembly held on the past 7 October 2014 under the chair of Mr. Ramon Bagó i Agulló at the Castell Jalpí in Arenys de Munt, the headquarters of the corporation, agreed to share out released shares. The shareholders representing 64.7% of the share capital approved the share-out of one share per 60 under ownership, producing 714,834 shares, which brings the total number of shares of the Group 243,604,886. With this increase, a share capital is achieved of 100 million, €291,237.80. It is now 40 years since SERHS started up its activity with a share capital of 750,000 pesetas, the equivalent today of €4507.59.

The Chairman of SERHS, Ramon Bagó, in the past July received the title of citizen of Natal in the plenary meeting of the Municipal Chamber of Natal (Brazil), from the congressioner Julio Protasio. In 2003, the Catalan businessman chose Natal to invest in the building of the SERHS Natal Grand Hotel. This is the third time Bagó has received an award from Brazil, as in 2007 he was made citizen of the state of Rio Grande do Norte (RN) and in 2010, the Municipal Chamber of Parnamirim awarded him the honorary title of Parnamirinenian Citizen. The chairman of SERHS said “I am grateful for this emotional and inestimable title of citizen of Natal, here on the centenary of the Municipal Chamber of Natal, because 15 years ago, when I came here for the first time, I already began to fall in love with this city and I feel a child of these loved lands of Natal”. The Congressioner Julio Protásio, who was responsible for providing the event, stressed Mr Bagó’s example as a great business person and recalled the importance of the group in the city as a source of jobs and income for the community, as well as bringing in tourists from different cities of Brazil and from abroad and so contributing to tourism, the principal factor of the state economy.

SERHS shares out dividends for a value of €2.77 million On the past 15 September, the Board of Administration of the SERHS Group agreed to share out dividends and shares for a value of €2,775,499.85. For the fifth consecutive year, it was agreed to apply the dividend program on the election of the 1,475 partners. As for the share-out of dividends, most of the shareholders, specifically 994 (67.39%) came down on the option of acquiring shares, and purchased 190,052 shares for a value of €788,715.80, with a value of 4.15 euros each. The remaining 481 partners (32.61%) chose to receive €1,986,784.05 in cash, or in other words €0.065 per share.

GRUP SERHS AGREED TO SHARE OUT DIVIDENDS ON SHARES FOR A VALUE OF €2,775,499

SERHS annual report 2013-2014

The winners of the 2014 Prizes for Innovation Marc Serra, Joan Daumal and Ignacio de Prado, accompanied by the Managing Director Mr. Raimon Bagó and the Chairman Mr Ramon Bagó.

SERHS INNOVATION STARTED UP ONE OF IDEAS AWARDED AT THE FIRST EDITION: THE SERHS APP

2nd EDITION OF THE INNOVATION PRIZES 2014

SERHS APP

As part of the Meeting of Directors 2014, on the past 16 December the annual awards for innovation were given. Raimon Bagó, the SERHS CEO, played the role of master of ceremonies as the leader of the project and showed how this second edition of the “Part of Ideas” had been since its creation and summed up the second call, highlighting its large participation. This was followed by the handing out of the different recognitions of the “League of Ideas”, in which the most participative users are rewarded. In this case, in first place was Javier Luna Pacheco (SERHS Food) with 1,392 points; in second place Rafa Mena (SERHS Services) with 1,059 punts; and in third place Miriam Rincón (SERHS Services) with 540 punts. The award was then given for the “Best SERHS Idea 2014”. The winner of the initiative was Marc Serra (SERHS Services) with the idea of “The customer of the day”. The finalists were Joan Daumal (SERHS Services) with the idea of “Mobile Timing App” and Ignacio del Prado (SERHS Tourism) with the idea of “brand expansion”. As in the past year, the Innovation Committee will develop the finalist ideas with the creation of workgroups from amongst the creators in order to exploit their true possibilities.

As a result of the ideas arising in the first edition of SERHS Innovation in 2013, and in order to implement the largest possible number of business ideas bringing value through improvement, a new mobile application was started up, the SERHS APP. This application is already available both on Google Play (Android) and in the App Store (Iphone), exclusively for workers and/or shareholders. With a single click, you have fast and simple access to the SERHS Internet portal. This responsive website has the best content of the portal: discounts in the SERHS Club; access to the section of SERHS Innovation ideas; travel, flights and hotels through SERHS Travel Service; presence management of Tempo SERHS; group news and a direct access to the portal itself for other services.

SERHS annual report 2013-2014

Dear Shareholders, This year we have closed a good year, everything shows ever more solid indicators of market recovery and therefore consumption will also begin to recover. This allows us to see things with more optimism. If to this situation we add the number of future projects we have started up in our business divisions, everything makes us think that in the coming years will be years of growth and improved profitability for our business. As I say, all of the divisions are immersed in very interesting future projects and I would therefore like to take advantage of our annual report to explain them. In Serhs Distribution we have started a restructuring project that consists of merging all of the present companies into a single one. The aim of this merger is to seek greater efficiency and above all to have a much more scalable management model that can be mirrored in other areas in which we are not working today. We are convinced that this new organisation will give an important drive to the division and allow us to work on business opportunities as yet beyond our reach. We have been working with Coca-Cola for years to increase the number of boxes we distribute. Taking advantage of the strategic change that they decided some time ago with respect to outsourcing their distribution,

we hope to achieve growth of almost one million more boxes distributed. Two years ago the cold project was started under the umbrella of Serhs Distribution, and consisted of sending this range of products to all of our distributors and to do so under a single model based on the same commercial, logistic and purchasing strategies as all other products. After two years, we can now say that the model is working at full output, and that we are achieving two-digit growth in all of our distributors, which allows us to improve our margin and above all to compensate the falls in some much more mature families suffering much more on the market. With Serhs Distribution we have been pioneers in online sales in the Horeca sector which has allowed us to learn each day how to improve this channel, and above all to learn how we can turn it into an element of added value for our customers to help us in our future growth. After more than two years, we are now prepared to take the lead and to start to extend this web as a lever of opportunities that we must be capable of taking. It is for this reason that we are working on a new platform that will have more options for our customers, which can be summed up in the possibility of managing the whole of our commercial and administrative relationship online and that we might

SERHS annual report 2013-2014

“

If to the present situation we add the number of future projects we have started, the coming years will be years of growth and improved profitability in our businesses. “ Jordi Bagó i Mons Vice president and CEO of SERHS

be able to do so from any device: PC, mobile or tablet. In the Tourism division, despite our so large exposure in the Russian market, we have managed to make a great effort and compensate its fall with significant increases in the British, Spanish and Scandinavian markets above all. We are concerned about what might happen this year, as we believe the situation has not changed and that we will therefore have to continue to work on alternative markets to compensate another large fall in the Russian. Therefore, although we are aware of the great difficulty of opening up the markets such as the Chinese, it does not seem much more complicated than what we did in the Russian market some time ago. Market globalisation shows us that today the Chinese market is surely much closer than the Russian was in 1996, when Serhs landed there for the first time. We have therefore started our prospecting in China and all of the countries around it. Our wager on China is in the medium and long-term with a different kind of model, as the sun and beach product is not sufficiently attractive for them. Starting with circuits in Europe and Cities, we have started to grow and are detecting the opportunities that this market offers us. For many years we have explained our great wager on technology. Today

our online sales account of 80% of the total so we have seen this wager as a winning option. This year we are going to take an important step in this direction by changing the availability engine (MAD), an engine on which we have been working for two years and which will be a “Formula 1” with respect to the one we have today. The goals of the new engine are basically more stability, more scalability and better product management. One of the pending questions we have historically had in the Tourism division is the low productivity of our proximity markets. These are very mature and complicated markets but ones which we have to approach and with which we must therefore be capable of working. Along this line, we have started an expansion project with the Rhodasol model in Portugal, and in France we have reached an agreement with a French tour operator, presenting ourselves with the name of Iberovacances. Last year we completed the takeover of Hotel Juice, an online sales company which helped hotels in their direct sales over the Internet. We are aware of the growth of this channel, which is why it was very important for us to get in to see it and find new opportunities. After months of experience, we have now made another leap by reaching an agreement with Paraty, a larger company than Hotel Juice and with

SERHS annual report 2013-2014

more-developed technology. Our aim is to accompany the hotels in their direct sales, by offering them a technology and a management methodology in this channel which they alone would have great difficulty in achieving. In our Hotels division, Brazil has closed a great year, although the growth perspectives we are finding in the market towards our other products are the most interesting thing of all. The Brazilian market is in a very advantageous situation for us, as there is clear stagnation in the offer, hotels are not being built and especially hotels according to our standards. We are now experiencing very interesting levels of occupation and have closed the year at almost 70%. In recent years, the Village product has suffered from the crisis in the national market, which is largely the only market they have. Customer satisfaction levels remain very high, which indicates that the product is still working and going down well. Despite this, we are aware that we have to reinvent them and we have therefore started a thematic line to make them much more attractive. In this sense, we have started programs such as Bikefriendy in Arnes, programs for the elderly in Sant Hilari, mediaeval weekends in Cardona and weekends of Science or â&#x20AC;&#x2DC;CalĂ§otadesâ&#x20AC;&#x2122; in all of the Villages. In recent months we have seen an upturn

in the demand for the product, which leads us to believe that we will soon have the Villages back in their pre-crisis position. The good experience of the Hotel Serhs Rivoli Rambla means that we will constantly try to bring in new hotels in Barcelona. Fortunately, in recent months we have integrated the Hotel Serhs Del Port and the Hotel Serhs Carlit. This year, the improvement work in the Hotel Oasis and the Sorra Daurada will allow us to approach the direct customer. The aim is to separate a number of higher category rooms to bring in customers willing to pay a little more. Although this has always been so in the Villages, the growth we have experienced in recent years in direct sales throughout all of our hotels is very large, both in beach premises and in the city. We are therefore working to create a direct sales department for all of the hotels with very powerful technologies, technicians specialised in direct sale management, social networks and with customer support to pin down the sale. Our aim in the coming years is to achieve 30% direct sales on average in all of our hotels, which would mean an increase of more than 25% in the average price of the establishment. A large part of this increase would go to profits, as the processing cost would be the same.

SERHS annual report 2013-2014

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All of the present and future projects would be unimaginable without the commitment and dedication of all the professionals and shareholders of our corporation. â&#x20AC;&#x153;

With the Serhs Food and Equipment division, following the goal of seeking new business models, almost 2 years ago we launched the SERHS Equipment website in order to offer the hostelry market a new way to buy auxiliary equipment and complementary material. Today the website is now consolidated and despite its slow growth, we are increasing in sales and customers every month by offering an alternative to many customers who greatly appreciate purchasing from an online channel. Our food management system is now reaching maturity and we therefore have sufficient experience to be able to start to close the model. Therefore, along with a specialised consultancy we made a study of how we had to work on the model. The result was the need to give it a new definition, and the one that seemed most suitable was the Security, Innovation & Nutrition for Catering system. We believe that this work has been useful to help us give the project a definitive drive to place it on the market. This product definition work has given us a much clearer idea of what customers are looking for, what distinctive values the kitchen management model brings in and above all what perception customers have of these added values, which allows us to focus our efforts on bringing in new centres to deal with the Security, Inno-

vation & Nutrition for Catering system. In the division we have built a specific team to achieve the number of centres we have set as a target, initially working very specifically with the food sector but without ignoring all of the other sectors in which we operate. Growth in Schools has been very important in recent years. However, although each year we bring in a large number of centres, the challenge is now to do so through the Security, Innovation & Nutrition for Catering system, which gives us a very large distinctive factor with respect to the traditional management model. We are studying the school profile that best fits the model and in the coming school years we will set out to try to bring in the largest possible number of centres. On the one hand we are convinced that our model is unique and the most competitive, and on the other we believe that the evolution of salary costs and regulations in kitchens will make the traditional model no longer sustainable in most schools centres today, and that much more flexible and efficient models like ours will be imposed. The clear wager of the SERHS Food division for the fifth range product and the Security, Innovation & Nutrition for Catering system means that our manufacturing plant in Vilassar has become small and obsolete, so we are working to make a new plant to replace the pre-

sent one; a plant with much more capacity, much more efficient and much better adapted to current regulations. This will also help us to double production with lower costs per kilo produced and much more capacity for product rotation. This is an essential project to be able to achieve the growth rates we aim for both in fifth range of products and in introducing the Security, Innovation & Nutrition for Catering system, as well allowing us to have facilities for possible system delocations in other parts of the state or even for a future international expansion. Finally, I would just like to stress that all of these present and future products I have just mentioned would be unimaginable without the commitment and dedication of all of the professionals of our corporation. Only they, along with all other shareholders and their confidence, make it possible for us to achieve all of the goals we have set. Thank you very much for your confidence.

Jordi BagĂł i Mons Vice president and CEO of SERHS

SERHS annual report 2013-2014

The www.serhsdistribucio.com website has more than 3,500 registered customers who this year 2014 made purchases for close to €30 million

SERHS Fruits has promoted its presence in Barcelona from Mercabarna, by serving customers in the area of restaurants

SERHS DISTRIBUTION WAS THE FIRST LARGE DISTRIBUTOR OF THE HORECA CHANNEL IN CATALONIA TO ACHIEVE ISO 9001:2008 CERTIFICATION.

SERHS DISTRIBUTION, SOLUTIONS FOR THE HORECA BUSINESS.

CERTIFIED QUALITY: ISO 9001:2008 STANDARD.

It is considered one of the leading platforms in integral product service with more than 35 years’ experience that establishes the division as one of the benchmarks in the sector. A pioneer in online sales (www.serhsdistribucio.com) in the HORECA channel. The 30,000 customers it serves are the centre of its action, to whom it offers a wide range of products, more than 6,000 articles from market-leading brands at three temperatures: drinks, food, cold (poultry, meat, delicatessen, dairy products, fish, fifth range), coffee, cleaning solutions, fruit and vegetables. The division has established strategic alliances with leading brands such as Damm, Coca Cola, Gallina Blanca, Vichy, Schweppes, Granini, Nestlé, Cafento, Espadafor, Salica, Millàs, Vileda, Cacaolat, Letona, Eurofrits, Codorniu, and others, thus creating a guarantee of the quality of the distributed products.

SERHS Distribution was the first large distributor of the HORECA in Catalonia to achieve ISO 9001:2008 certification. The standard was met in July 2014 for the 10 companies attached to the division and devoted to marketing and distributing products at three temperatures: fresh food, frozen, drinks, hygiene, coffee, fruit and vegetables. BureauVeritas certified SERHS Distribution’s management system on the basis of this widely recognised international quality standard. The certification covered the marketing and distribution of products and services in the HORECA channel (hotels, restaurants, bars and cafeterias).

SERHS annual report 2013-2014

At your service | Distribution of products at three temperatures sold online and offline

SERHS Distribution Distribution of drinks | food | cleaning products | fresh and frozen | coffee Fruit and vegetables for hotels, restaurants and groups

www.serhsdistribucio.com

SERHS annual report 2013-2014

It has a portfolio of 30,000 customers. It has an average team of 800 people a year. 16 distribution platforms with an overall surface area of 160,000m2. A vehicle fleet in excess of 775 vehicles.

SERHS annual report 2013-2014

www.serhsdistribucio.com

STRATEGIC AGREEMENTS

NEW DELIVERY PROJECT, AN IMPORTANT INITIATIVE OF TECHNOLOGICAL IMPROVEMENT APPLIED TO THE MANAGEMENT OF DISTRIBUTORS AT THE POINT OF SALE.

PROJECT DELIVERY. SERHS Distribution has started an important project of technological improvement applied to the management of distributors at the point of sale. This new application is linked to the same system formed by the Optimiza platform and which also works with the pre-sale app and the web site itself, amongst other applications. The project has been implemented throughout all of the companies of the division. The distributors have been equipped with portable terminals and printers which include an easy-to-use app for making charges, registering incidents and managing loads, amongst other functions. The use of these terminals eliminates notes written in pen and makes direct rectifications in the system, leaving, for example, an adhesive sticker on the bill. It allows work to be done only with one copy of the remittance, instead of three. The customers can give their conformity by signing on the touch screen and it is also possible to know the state of an order delivery on-time, the services pending and the location of the distributors.

DRIVE TO LARGE ACCOUNTS. The Catalan Youth Agency has awarded the SerhsFoodArea Distribution temporary joint-venture the contract to supply food, cleaning and hygiene products to the 20 hostels of the XANASCAT, located around Catalonia and with a capacity for up to 3,000 people. The adjudication of large batches of product families for different penitentiary centres in Catalonia or hospital centres has also increased significantly. Furthermore, in 2014 new actions were carried out to market the industrial hygiene, dry food and frozen food products with hotel chains in Andalusia and Andorra to extend the area served by the division. AGREEMENT WITH SALICA. An experienced manufacturer in preserves and frozen products since 1990, when Campos and Astorquiza merged. Specialised in high-quality products and especially tuna, it offers a wide range of formats conceived for the HORECA channel. It has plants in Biscay, Corunna and Ecuador. The strategic agreement being carried out has been extended to 31 May 2019.

SERHS annual report 2013-2014

NEW CUSTOMER-ORIENTED ORGANISATION

SERHSDISTRIBUCIO.COM

Following the fundamental axes of the Strategic Plan of the SerhsDistribution division, which are growth, efficiency and the development of people, in September 2014 a change was promoted in the organisational model to bring the strategy ever more into line with the operations. Three new Operations Managements were created: Northern, Central and South-East Catalonia, to be responsible for the operations of the distributors under their management and thus to focus on greater proximity to the market reality and the needs of the customers, to be able to offer the best solution for their business at all times. These three Operations Managements are now complemented by the existing in Fruit and Vegetables.

SERHS Distribution was a pioneer in turning to the online sales channel. Serhsdistribucio.com has, since its origin now four years ago, become a new online sales channel with a turnover of nearly â&#x201A;Ź30 million in food, drinks, and cold and frozen products, amongst others. In order to continue promoting this new sales channel with the particular features, promotional actions and specific tools it needs, a new web address has been made. The aim is to offer customers the possibility of an alternative to traditional shopping which, along with other advantages, allows them to enjoy a distinct promotional policy, to maintain a log of their consumptions, to place orders at any time of day/week, etc. all without losing sight of the traditional salesman.

THE ONLINE SALES CHANNEL PRODUCED A TURNOVER OF NEARLY â&#x201A;Ź30 MILLION IN FOOD, DRINKS, COLD AND FROZEN PRODUCTS.

SERHS annual report 2013-2014

www.serhsdistribucio.com

SERHS FRUITS, MUCH MORE THAN FRUIT AND VEGETABLES

SERHS FRUITS HAS INCREASED ITS COMMERCIAL ACTION IN BARCELONA. ITS PRESENCE IN MERCABARNA HAS BEEN STRENGTHENED TO IMPROVE CUSTOMER SERVICE ESPECIALLY IN THE AREA OF RESTAURANTS AND HOTELS.

A specialised company offering a comprehensive view of the world of fruit and vegetable distribution, and attached to the SERHS Distribution division. It has an extensive career behind it of nearly 40 years and is placed amongst the leaders of the sector. It is largely introduced in three strategic points of Catalonia: Ripoll, Blanes and Reus. With a team of more than 60 people between the different work centres, it has a fleet of 40 vehicles and areas of more than 7,000 square metres of facilities with a large capacity for refrigeration. SERHS Fruits has increased its commercial action in Barcelona. It has strengthened its presence in Mercabarna to improve service to customers especially in the area of restaurants and hotels. In June 2014, an informative website was created (www.serhsfruits.com) as a first step to reporting its business activity on the net. This school year, 2013-2014, fruit was also distributed to the schools of Catalonia in a European Union initiative that

started in the 2009/2010 school year and which is made effective by a coordinated action from the Departments of Agriculture, Stockbreeding, Fisheries, Food and Natural Environment, Health and Education.

SERHS annual report 2013-2014

2013 - 2014 supposes consolidation of presence in international markets such as the English, the Eastern and Nordic, with higher than market growth. Domestic consumption is also recovering strongly and Rhodasol has taken a position of leadership in holiday Spain.

Stable results and of continuous growth despite the geopolitical crisis in one of the principal markets, the Russian, reflecting a consolidated diversification thanks to a solid and expanding distribution structure.

SINCE 2014 IT HAS HAD A NEW BUSINESS LINE, HOTEL JUICE, DEDICATED TO DIRECT ONLINE SALES THROUGH THE WEBSITES OF THE HOTEL ESTABLISHMENTS.

SERHS Tourism is a receptive travel agency and B2B provider of services for international travel agencies and tour operators. It also has a wholesale agency which offers its product to the retail agencies in Spain and Portugal through the Rhodasol brand. SERHS Travel Service is the issuing travel agency which offers its services to workers, shareholders and companies related to the Group. Since 2014 it has had a new business line, Hotel Juice, dedicated to direct online sales through the web sites of the hotel establishments themselves. It offers a wide range of receptive services on the main coastlines and cities of Spain, and also accommodation throughout Europe and around the Mediterranean arc.

OUTSTANDING PRODUCTS AND SERVICES The SERHS Tourism area strengthens its orientation towards the world surrounding the hotel while remaining faithful to the groupâ&#x20AC;&#x2122;s founding spirit and with a clear view of giving value to its suppliers, who are considered key allies in producing wealth in Catalonia and the tourist destinations which SERHS Tourism offers the market. In this sense, the takeover of the company Hotel Juice, engaged in digital marketing for direct sales through the hotel websites, brings a new competitive edge which will strengthen awareness of the consumer and their needs. Along this line, the joint work with other divisions can also be highlighted, and especially with distribution to give services jointly aimed at satisfying a large spectrum of present hotelier needs.

SERHS annual report 2013-2014

SERHS Tourism Receptive agency and wholesale online and offline supplier

www.serhstourism.com

SERHS annual report 2013-2014

Portfolio of 34,000 hotels in 45 countries More than 8,000 points of sale in 32 countries Average payroll of 234 people 3,000 million online requests 500,000 bookings confirmed online

SERHS annual report 2013-2014

www.serhstourism.com www.rhodasol.es i www.rhodasol.pt | www.hoteljuice.com | www.serhstravelservice.com

NEW STRATEGIC PLAN

RECEIVER AND B2B SUPPLIER OF TOURIST SERVICES FOR AGENCIES AND TOUR OPERATORS FOR THE MAIN ISSUING MARKETS IN THE WORLD.

This year, SERHS Tourism closes its growth plan of the last five years and approves the new three-year strategic plan which will guide the division to 2017. This sets its sights on strengthening the leadership position in Spanish holidaymaking while developing the internationalisation of the offer to become a regional player in the Euro Mediterranean area. The commercial synergies in the present customer portfolio favour an expansion of the hotel product based on a policy of alliances which is singular on the market.

The model is supported by clearly reinforcing the three fundamental axes of the structure: the efficient organisation of operations based on a regionalised structure and central services; technology as a competitive edge, and; the proposed hybrid distribution which includes the online and traditional channels and is a differential trait of the divisionâ&#x20AC;&#x2122;s value proposal.

SERHS annual report 2013-2014

The wager on efficiency and constant improvement of the processes is strengthened through a new organisational direction and the opening of a department of analysis dedicated to business intelligence through data exploitation.

SERHS annual report 2013-2014

NEW INVESTMENTS AND AGREEMENTS

INITIATIVES ARE STARTED TO DESEASONALISE SALES THROUGH NEW MARKET SEGMENTS. THIS IS THE CASE OF THE PROJECTS AIMED AT THE +55 GROUP

The investment initiatives have focused on technological modernisation, which in the past year became a true point for concentrating both human efforts with a new technical management, and innovation efforts thanks to the important computer development of a new availability engine. This large development will provide totally modernised and pioneering computer mechanisms to absorb large volumes of online requests efficiently, fast and effectively by turning the digital strategy towards a reduction of the cost of transactions with total scalability. With respect to the agreements, one outstanding point is the welcome received by new and existing customers who actively supported the process of expanding the wholesale commercial line. In this case, the launch of Rhodasol in Portugal, a clear issuing market for the south of Spain, and its forthcoming entry in France, have shown large support as well as the extension of the domestic agreement to international issuers.

Additionally, we must stress the constant search for opportunities materialising in new agreements with establishments principally in the south of Spain. Similarly, initiatives are started to deseasonalise sales through new market segments. This is the case of projects aimed at the +55 group, in Catalonia through the CATSENIOR and in the case of international markets thanks to the approval of the Segittur Europe Senior certificate (Turespa単a), which certifies Serhs Tourism as the only multimarket and multi destination operator in the Spanish state.

SERHS annual report 2013-2014

SERHS brings in the second and third urban hotel in Barcelona, the Hotel SERHS del Port and the Hotel SERHS Carlit, thus strengthening its presence in the city

The SERHS Natal Grand Hotel exceeds R$50 million in sales, an excellent year in the Brazilian establishment thanks too to the World Cup 2014

EXCELLENCE 2014 IN

SERHS Hotels provides its customers with a varied offer of holiday enjoyment and for business customers, the chance to choose from a wide range of 14 hotel establishments of different types and locations. The aim is to continue working to increase the product portfolio with hotels with their own stamp, like the Vilars Rurals, to strengthen their presence with urban hotels without forgetting internationalisation and the search for hotels abroad and along the Mediterranean coastline.

RECOGNITION OF ITS

STRATEGIC AGREEMENT

EXCELLENCE AS A RURAL

With respect to the SERHS Natal Grand Hotel resort, which the corporation has had in Brazil since 2005, it was honoured to receive four of the teams competing in the Arena das Dunas Stadium during the Brazilian World Cup 2014, Cameroon, United States, Greece and Uruguay, and many other public figures and journalists. The United States Embassy gave its personal thanks for the attendance given during the team’s stay in the hotel establishment during the World Cup to the vice president of the United States of America, Joseph R. Biden Jr. Thanks to this great world event, the hotel reached an agreement with the company OAS, the administrator of

THE VILAR RURAL DE SANT HILARI ACHIEVES THE TRIPADVISOR CERTIFICATE OF

HOTEL ESTABLISHMENT.

the new “Arena das Dunas” Stadium in Natal to house the workers involved in building the stadium. The agreement as the Official Hotel of the Arena das Dunas Stadium in Natal has allowed it to accommodate some of the most important teams in Brazil when they play in Natal: Palmeiras, Cruzeiro, Atletico Paranaense and Flamengo. In the line of agreements, the DESIGUAL brand opened a shop in the hall of the SERHS Natal Grand Hotel taking advantage of the characteristics of the hotel and the type of customer staying there, both very close to its target. This year a commercial agreement was reached with the French agency PARTANCE, specialised in the MICE market, in order to market our establishments with company meeting rooms, as is the case of the Vilar Rural de Sant Hilari, the SERHS El Montanyà, SERHS Rivoli Rambla and SERHS Natal Grand Hotel, in the French-speaking markets (France, Belgium, Switzerland and Luxembourg.) Furthermore, the division continues to work to bring in and reach agreements with international customers of the business market for Vilars Rurals, SERHS El Montanyà, SERHS Rivoli Rambla and SERHS Natal Grand Hotel, with the support of the Catalonia Convention Bureau and Catalan Tourist Agency.

SERHS annual report 2013-2014

Moments full of life

SERHS Hotels

Vilars Rurals | Holiday Hotels | Snow and Mountain Resorts | Urban Hotels | Brazil Beach Resorts

www.serhshotels.com

SERHS annual report 2013-2014

14 hotel establishments between ownership and management Adventure park in the trees Average team of 600 people a year 2004 national and international rooms 53 meeting rooms, two convention centres and 49 swimming pools

SERHS annual report 2013-2014

www.serhshotels.com

OUTSTANDING WAGER ON CONSOLIDATION AND GROWTH IN THE URBAN HOTELS SEGMENT WITH ITS OWN BRAND IN THE CITY OF BARCELONA: THE SERHS DEL PORT AND THE SERHS CARLIT.

SERHS Hotels has signed an agreement with TripAdvisor®, the largest travel website in the world, where travellers can plan and book their perfect trip thanks to the opinions of other travellers, so that the establishments of the hotel chain appear as preferential hotels in their PLUS profile, except for the beach hotels. Taking advantage of the synergies between group divisions, an agreement has been reached with the company Hotel Juice, attached to the SERHS Tourism division, to outsource the online commercial and marketing department. With a team of 8 people they will give support to take the Holiday Commercial sales part of the online channels and websites of SERHS Hotels. The Corporate Commercial department is not included in this agreement and will continue to work separately but in parallel to it. Finally, with respect to the offline commercial part, a commercialisation and distribution agreement has been reached with Kiddys Box, boxes of experiences to give families with children, with activities specially designed for them with a large dose of fun and education, just the same components that characterise the Vilars Rurals.

NEW INCORPORATIONS OR INVESTMENTS The services of the new offices of the SERHS Natal Grand Hotel have been started up in Sao Paulo, in order to enhance the image of the resort in the main Brazilian city. And specifically in the five-star resort, and considering the ever-growing number of families staying at the hotel with children, a new children’s park has been built and the Kids Club refurbished. In the last year, the strong wager on consolidation and growth must be stressed in the segment of urban hotels with their own brand in the city of Barcelona, and as a result we must especially stress, on the one hand, the incorporation on 1 December 2014 of the second of the corporation’s urban hotels in Barcelona with a long-term management contract, the Hotel SERHS Del Port***, at Avinguda del Paral·lel nº40 de Barcelona. This is an establishment with 48 rooms in a very central place in the city and an important point for cruise travellers as it is very close to the port. It is a peaceful and functional kind of hotel. And on 12 January 2015, the incorporation started of the third urban hotel in Barcelona, with a contract that combines an

SERHS annual report 2013-2014

initial period of management plus the possibility of up to 20 years of rental, the Hotel SERHS Carlit, on the Eixample Dret of the city at Carrer Diputació, 383 in Barcelona. Located near the Sagrada Família, this establishment has 38 rooms redesigned in 2013 in the purest modernist style, a style also applied to the common areas. The style is modern, urban and distinctive as it is an 18th-century modernist building and has always been a hotel in Barcelona. SERHS Hotels now owns or manages 14 hotels and meets one of its basic objectives which is to enhance the management of urban hotels in Barcelona in privileged locations, and hotels with a good level of comfort. The emblematic Hotel Serhs Rivoli Rambla 4*, recently refurbished to improve customer satisfaction and located on the Rambla of the city, was the metaphorical cornerstone, and the recent incorporation of the Hotel SERHS Del Port 3* on Avinguda del Paral·lel became the second stone. As for the team, SERHS Hotels brought Mr. Jose Antonio Martínez into the division as Manager for Rural and Mountain Operation. His responsibi-

lities include the management and operation of the assigned hotels (Vilars Rurals and Port del Comte), their income statement, their teams, operations, organisation, activities, events and F&B. NEW PRODUCTS AND SERVICES The Vilar Rural de Sant Hilari has achieved the Tripadvisor certificate of excellence 2014 in recognition for its excellence as a rural hotel establishment according to the opinions the users write on the largest travel website in the world. The customers of the Vilar Rural de Sant Hilari highlight and appreciate different questions such as the hotel service, the cleaning and the comfort of the rooms and facilities; the restaurant buffet cuisine and the variety and quantity; the peacefulness of the surroundings and pleasantness of the staff. They give the highest scores to the number and variety of fun and educational activities for the children and families. SERHS Natal Grand Hotel, 6th best hotel for families in South America. The corporation’s five-star hotel in Brazil has reached 6th place in the

category of the best hotels for travelling in family in South America, given each year by Tripadvisor as part of the Travellers’ Choice Awards 2014. Vilars Rurals has brought the Baby Friendy stamp into its establishments. Travelling with children means planning everything that we have to take so that the child does not lack in anything, but without the need to load up with extra utensils. Therefore, and in order to make this job easier for parents, the Villages provide customers with a series of elements, advantages and activities for the young, babies (0 to 2). There are rooms prepared with a bath, cots with animal mobiles, bottle and pot heaters, socket protectors, welcome basket with a bib, plastic spoon; the dining-room offers two varieties of daily pap on the menu, dishes and utensils for babies, high chairs and boosters, microwave ovens; the children’s park has a swing for babies, a special area for them and programs different special activities for babies and infants. The shop also offers packs with amenities. The Vilar Rural de Sant Hilari has also set up a Baby Room, a room decorated for children and with special furniture for

SERHS annual report 2013-2014

www.serhshotels.com

THE VILAR RURAL D’ARNES ADHERES TO THE BIKEFRIENDLY STAMP. ITS AIM IS TO RECEIVE AND GIVE SPECIAL TREATMENT TO CYCLE TOURISTS, ATTENDING THE NEEDS OF THIS GROUP.

them: changer, cot, cupboards conceived for the youngest with all possible commodities to make them feel at home. The Vilar Rural d’Arnes adheres to the Bikefriendly stamp, which aims to receive and give special treatment to cycle tourists and to attend their particular needs. The surroundings of the Village offer a wide range of possibilities for cycle tourists and lovers of MTB , with routes around the Ports de Beseit, considered some of the most important in Catalonia, as well as the Green Path route. The achievement of this certification allows advice to receive cyclists with services adapted to their requirements. In the case of the Vilar Rural d’Arnes, the establishment has been included in the ‘Experience’ category. An area of the establishment has been adapted as a bicycle repair shop so that, after finishing their routes, the cycle tourists can make all necessary repairs or check their bikes. There is also a bicycle locker with independent locks, a bicycle washing area and an information point on specific cycling routes around the Village.

Under the Vilars Rurals brand, in early 2013 SERHS Hotels brought in a new innovative program of activities, the Weekends of Science, with an educational content backed by the UPC, intended to give scientific knowledge starting with the youngest and to become a Scientific Tourism Destination. In 2014 thematic weekends continued to be put on, covering areas such as meteorology, astronomy, geology, physics, chemistry and sustainability, engineering, energy and nature, and many others. Figures from the world of the weather and science, coordinated by the physician Jordi Mazón, have come as the spokespeople of this initiative: Francesc Mauri, TV3 weatherman and Dani Jiménez, scientific informer of Dinamiks on TV3.

SERHS annual report 2013-2014

Eudec, an innovative and effective proposal offering technology, efficiency and quality in different areas of group restoration

The new Security, Innovation & Nutrition for Catering system gives a clear improvement in the diet and culinary quality, safety and hygiene, and becomes a leader in technology, innovation and service

NEW PRODUCTS AND SERVICES

LAUNCH OF A NEW LINE FOR ROOM SERVICE FOR FOUR AND FIVE-STAR HOTELS. DEVELOPMENT OF THE NEW LINE OF ALLERGEN-FREE PRODUCTS FOR RESTAURANTS.

EudecFood played a very active part on the stand at Alimentària 2014, the International Food and Drink exhibition. It took the chance to announce not only on the most recent culinary preparations, but also to present the perfect solution for health and educational restaurant areas, adapting to the needs of each of its customers through its advanced preparation process. All of the products shown at the Alimentària fair can be bought easily and comfortably 24 hours a day at the online store www.eudecfood.com. The attendees were able to see product demonstrations carried out by specialists and appreciate the fast and simple preparation process required by the brand’s prepared food range, and to try them to find the best solution for each business. Continuing with attendance at fairs, from 20 to 23 October 2014 EudecFood took a further step in innovation and presented its latest development: solutions for Room Service in the hospitality sector, the ideal product for four and five-star hotels. Those attending were able to see the facilities and quality of the service. The Gastronomic Forum was an unbeatable framework for presenting

the wide variety of high range dishes easy to prepare and serve available in single doses, with long expiry dates and being able to be offered 24 hours a day without any need for a kitchen. In order to show the importance of the preparation of the EudecFood 5th range product, and to give personal advice on the scope of the more than 400 dishes that can be made with this product, focusing on the best options for each kind of establishment and customer, EudecFood in 2014 gave three workshops, two at the Take Eat Easy (World Trade Center in Barcelona) and another at the Hotel Gran Sol in Sant Pol de Mar. In the last year, SERHS Food has also developed a new line of allergen-free cooked products. The aim is to cover as many allergens as possible today, 14 declared allergies. 20 references are offered from different food families. EUDECFood has for more than 20 years been engaged in preparing and developing fifth range of products for group restaurant centres. With a philosophy of offering the sector what it needs, last year it launched the eudecfood.com website, which allows customers to buy the products virtually and to receive them in their kitchen

SERHS annual report 2013-2014

Integral restoration

SERHS Food

Integral restaurant services for hotels and groups (Hotels, Hospitals, Homes, Social Healthcare Centres, Restaurants, Bars and Cafeterias, Schools, Universities, Penitentiary Centres, Companies, Football Stadiums) I Leisure activities I Catering for Events I Macroevents

www.serhsfoodservice.com

SERHS annual report 2013-2014

Eudec system: own production of more than 400 references. Own centres and more than 250 centres managed (hospitality and groups) 1st company to achieve a patent in group restoration The team is formed by an average of 825 people a year, 1,600 at peak times

SERHS annual report 2013-2014

www.serhsfoodservice.com www.eudecfood.com | www.serhsfoodeduca.com www.takeeateasyserhs.com | www.castell-jalpi.com | www.arcscatering.com

ADAPTING TO THE NEEDS OF THE PRINCIPAL SECTORS: HEALTH, EDUCATION AND BUSINESS. WE ENHANCE INNOVATION AND TECHNOLOGY TO OFFER CUSTOMISED ATTENTION AND ADVICE.

at no extra cost. The site also gives a customised advisory service to help its customers to get the best out of their restaurant service. It presents a catalogue of more than 400 recipes allowing the healthcare, educational, restaurant and hotel areas to serve traditional home made cooking, without investing many resources and at a competitive price. Along this line, as leaders in the preparation of food and fifth range bases, EudecFood has wanted to be positioned as a blogger, creating a trend and new lines of food communication. Without going any further than the mere positioning of their online store at the top of all the search engines, EudecFood started up its new blog. On this website, content can be found on feeding in the sectors of education, hospitality, restaurants and health, culinary recipes, advice on diet and food properties, and much more. http://blog.eudecfood.com/

STRATEGIC AGREEMENTS A special reference to the agreement with the new pasta and pizza restaurant chain Giuliani’s, of the Comdifil group (specialised in fashion, with stores like the Shana chain). This group is diversifying towards hospitality and this year has created a prototype Italian fast food restaurant to set up in different shopping centres of the Iberian Peninsula, following the same parameters as Shana and aimed at a similar customer profile. SERHS Food and Projects made the project of machinery, advice and supply of the gastronomic part from the first opening in the Barnasud shopping Centre in Gavà and up to a total of 6 establishment (Barcelona, Madrid, Castellón, Alicante, Murcia). As for restaurant services in sports stadiums and according to the contract signed with FCBarcelona almost 7 seasons ago, SERHS Food started this year with the Camp Nou Lounge. From 28 May to 9 August, the first tribune stands of the stadium became the Camp Nou Lounge, a place allowing a quality gastronomic offer to be enjoyed as never before: with a privileged panoramic view of the stadium. SERHS Food was responsible for

SERHS annual report 2013-2014

managing this space through the overall agreement already in place, for the management of the stadium’s restaurant points. In the same stadium, and in the line of improving the quality of the service, SERHS Food, with SERHS Projects, opened new bars in the Camp Nou Stadium. The refurbishment of the 60 points around the whole of the tribune and the side of the stadium followed the line of the points already opened last year around the north goal. The main developments resulted in a better image of the points, better quality of the product and service, offering a new gastronomic offer and better efficiency in the service. At the same time, the new implemented technology resulted in the elimination of smoke from the point of sale.

NEW INCORPORATIONS AND INVESTMENTS As for the new incorporation of centres under management, the Escola Pia Nostra Senyora in Barcelona, and the Montesori School in Girona started the school year 2014-2015 with the management of the dining room service led by SERHS Food Educa. This is a secondary school and the agreement reached with the school includes the performance of the service following the Security, Innovation & Nutrition for Catering system. In the same area of schools, public tenders were also won for the dining room service of the Escola Pla in Girona. The dining room service will be given both in the kitchen and in the monitoring, with a volume of more than 300 daily menus between children and teachers. This now means that there are more than 30 schools managed by Serhs Food Educa in the province of Girona.

Furthermore, contracts have been renewed in the schools of the Regional Councils of the Alt Empordà and the Alt Penedès regions as well as Cerdanyola Town Hall with which SERHS Food Educa has worked in recent years. Nursery schools in Sabadell like Can Llonch, Creu Alta, Joaquim Blume, Joan Montlló and Calvet Estrella, have also chosen SERHS Food Educa in renewing the dining room service by public tender. Restaurant services in the business/corporate sector have also gained weight, and the Blood and Tissue Bank, a company with which the division was already working, has not only renewed the contract for the dining room, cafeteria and expender machines of its building in Barcelona, but has also given the service for supplying beverages to blood donors, a service given by Fleca Serhs.

SERHS annual report 2013-2014

SERHS FOOD ENHANCES THESE TWO BUSINESS LINES SEPARATELY: EUDEC AS A PRODUCT AND THE SECURITY, INNOVATION AND NUTRITION FOR CATERING SYSTEM.

Finally, in reference to the Justice restaurant sector, SERHS Food, by public tender, renewed the contract for the Can Brians I restaurant service for a further 4 years.. In this report we must stress the name change of the system known as the Eudec System up to now. As part of the process of innovation of collective restaurant concepts, SERHS Food has taken a step forward and started the name change of the system known up to now as EUDEC, which from now on will be called the Security, Innovation & Nutrition for Catering system. The SINC system, accompanied by the claim of Security, Innovation & Nutrition for Catering, with its new image/ logo aims to strengthen the magnitude of security, innovation and nutrition in the group restaurant sector. SERHS Food promotes its two business lines separately. On the one hand, EUDEC as a product and on the other, the Security, Innovation & Nutrition

for Catering system. In the immediate future work will begin on developing the College sector, which along with the Clinical (already implemented in some management centres such as the Maresme Healthcare Corporation and La Selva as well as Vic hospital consortium), will be the largest of the division, leaving the Corporate for a later phase.

SERHS annual report 2013-2014

SERHS Projects was adjudicated the public tender for contracting the supply of trolleys for the reconstitution of food for patients’ meals in the Corporació Sanitaria del Parc Taulí in Sabadell

Serhsequipments.com makes a balance of the first year and achieves the stamp for online confidence

SERHS PROJECTS CONSOLIDATES ITS PRESENT IN ANDORRA WITH THE CONFIDENCE OF GRANDVALIRA.

Serhs Projects & Equipment, with more than 25 years experience in projects for hospitality and restaurants, has focused its business strategy in recent years on restaurant projects (basically kitchens, buffets and bars) and the sale of equipment and machinery for hospitality, restaurants and groups. Similarly, in order to achieve consolidation, the division continues to strengthen the online sales channel (www.serhsequipments.com) where equipment, complements, lighting, furniture of the best brands on the market can be purchased at very competitive prices and the customer can make their online purchases comfortably, fast and simply.

NEW ADJUDICATIONS AND RESTORATION WORKS In the area of health, SERHS Projects has been adjudicated the public tender for contracting the supply of trolleys for reconstituting food for patient meals at the Corporació Sanitària del Parc Taulí in Sabadell, specifically at Sabadell Hospital and the Albada Home. The delivery and installation of the trolleys was performed in June 2014 and a total of 35 units were installed in the offices of each floor in the building. The option chosen in a long selection process amongst the main firms in the sector of such apparatuses, was Eletrocalorique, a firm with whom Serhs Projects has worked for years and which is an official distributor for the Spanish state. The supply of reconstituting trolleys to the Parc Taulí culminates a large refurbishment of the kitchen installations to adapt them to cold line production. Similarly, the Parc Taulí adjudicated to SERHS Projects the tender for miscellaneous hospitality material such as lighting. SERHS Projects has worked intensely with the country of the Pyrenees, Andorra, and has consolidated its presence with the confidence of an important brand such as Grandvalira, where important projects stand out

SERHS annual report 2013-2014

Innovative solutions

SERHS Projects specialists in Food & Beverage areas

www.serhsprojects.com www.serhsequipments.com

SERHS annual report 2013-2014

Innovate Food & Beverage solutions www.serhsequipments.com online sale of machinery for hospitality and restaurants Equipment for hospitality, restaurants and groups Dedicated to the sectors of hospitality, restaurants, education and health.

SERHS annual report 2013-2014

www.serhsequipments.com www.serhsprojects.com

ONLINE SALES ARE STILL THE MAIN OBJECTIVE OF THE SERHS PROJECTS DIVISION THROUGH THE WEBSITE WWW. SERHSEQUIPMENTS.COM

such as the thematic Pasta Box restaurant (Grandvalira–Andorra), where an overall refurbishment has been made of the interior decoration and dining room, kitchen machinery and bar. Without moving from Andorra, a refurbishment was made of the interior decoration and machinery and equipment of the Fun Food Ribaescorxada, a fast food restaurant and cafeteria in the Tarter area, for Grandvalira Ensisa. And in the area of Grau Roig, the Tres Estanys and Pulka fast food restaurants include the new Merrychef oven technology for the sandwich fast food service. The technology of these ovens allows a hot sandwich to be prepared in 15 seconds. The design and equipment of the new Fun Food restaurant of the Llac de Pessons mountain hut in the Grau Roig area has also been put out to SERHS Projects. In the Maresme region and in the line of hospitality, and specifically at the Hotel Alhambra in Santa Susanna, an innovative chamber refrigeration system has been installed. The refurbishment of the whole of the kitchen at the Fundación Rais in Madrid was also entrusted to SERHS Projects, as well as the refurbishment of the kitchen of the staff dining room in the

company Lainco, S.A. Finally, the kitchen of the Home in Sant Hipòlit de Voltregà was fully equipped, where SERHS Food also deals with the restaurant service. NEW PRODUCTS AND SERVICES Online sales continue to be the main objective of the SERHS Projects division through the web www.serhsequipments.com. Making a balance of the first year and dealing with the main figures, the corporation has reached 8,400 articles, 200 daily visits, more than 550 registered subscribers, 300 customers and nearly 50 suppliers/ collaborators. Furthermore, this website stresses that it has achieved the stamp for online confidence. This stamp recognises the transparency and credibility of all websites that have it, certifying their ethical and social commitment to users. In 2014 the online sale of machinery and furniture for hospitality was consolidated through this channel with important strategic agreements for commercialisation and distribution with different manufacturers.

SERHS annual report 2013-2014

The Department of Staff Administration in 2014 processed a total of 64,427 salaries.

SERHS has its own LMS e-learning platform, a catalogue with more than 500 courses in different areas: sales skills, finance, office Informatics, Internet and basic tools, languages, management skills, quality, prevention of occupational risks, courses of university certification and “social games”.

SERHS SERVICES

“HUMAN SERHS CONSULTING” OFFERS ITS SERVICE PORTFOLIO: SALARY MANAGEMENT, LEGAL-OCCUPATIONAL ADVICE, ASSOCIATED SERVICE OF PREVENTION OF OCCUPATIONAL RISKS, SELECTION, TRAINING AND CONSULTANCY IN HUMAN RESOURCES FOR COMPANIES OUTSIDE THE GROUP.

MEDITERRANEUM XX, S.L.

HUMAN RESOURCES

The added value of this company is the use of new technologies and the most modern communication systems, which has supposed an outstanding step forward in all activities carried out and which allows users to directly and efficiently manage a large number of computer applications online which are made available to them. Similarly it offers internal and external customers a quality tool with high-level professional specialists.

The SERHS Human Resources Corporate Management, in its search for innovation and continuous improvement, since 2012 has acted under the name of “Human SERHS Consulting” through which, with a different identity, it offers its service portfolio: salary management, legal-occupational advice, associated occupational risk prevention service, selection, training and consultancy in human resources for companies outside the group. Focused principally on the sector of tourism, hospitality and restaurants, it is positioned on the market as the company specialised in Integral Human Resource Service in all of its variants. For further information, you can visit www.humanserhs.cat This SERHS Corporate Management covers all of the necessary specialities to give a complete human resource management service in all of it specialities: • Staff administration • Selection, training and development in human resources • Labour relations • Prevention of occupational risks

SERHS annual report 2013-2014

Within your reach

SERHS Services Insurance | Administration and Finance New Technologies I Computer Applications

www.serhs.com

SERHS annual report 2013-2014

Staff administration This department specialises in advising and dealing with processes in the work area through a team of professionals specialised in the subject. This is department wagers firmly on Internet portals while applying continuous improvement of its services, in order to offer both SERHS companies and external customers an ever more effective service. The SERHS Services portal (https://portal.serhs.com/ rrhh) is used as a means of communication between the company and its work adviser. This is a personalised and interactive tool which supposes great savings in time and costs, avoids travel or telephone calls and is operative 365/24. It can be used from any connection point in the world, guaranteeing the required confidentiality and maximum security. 2014 was also the year in which this tool was reconceived to become more agile, intuitive and with new services it did not have before. Examples of this improvement have been direct online chat with the adviser for more personalised and virtually instant dealing. As significant data, the Staff Administration department in 2014 dealt with a total of 64,427 salaries. We must remember that this department started and implemented a key project in all companies of the Group in 2010, the Flexible Pay Plan. The idea of this plan was that all workers might be able to choose how they want to receive their gross annual pay (with a limit of 30% of the total) in order to adapt it to their personal and family needs. The flexible

Pay Plan gives the option of designing the salary package in a completely voluntary way, to devote part of the salary to contracting certain products with significant tax and economic benefits in order to increase net availability. The products offered this year were: SERHS Group shares, Health insurance, Restaurant card, Nursery School and Training. The project was very well received by the staff, which was once more reflected in the results of 2014, with a total of 781 applications to buy products. The star products once more were the SERHS Group shares and the health insurance. Secondly came the training, nursery schools and restaurant cheques.

Health Insurance : 92% Restaurant Card : 1% Shares : 4% Nursery School : 3%

SERHS annual report 2013-2014

www.serhs.com www.humanserhs.com | www.asseguris.com | www.migjornser.com

Training The work of the training department starts by analysing the training needs and aspects for improvement that companies seek in order to guide them to a solution that has a direct impact on results. Along with the company, a series of aspects/skills are chosen on which work will be done during the year through training, in order to line up the basic skills/competencies of the staff with SERHS’s present and future strategic goals. In 2014, throughout the companies of the corporation more than €260,000 was invested in training. Specifically, a total of 496 training groups were made with a total of more than 3,200 participants and 34,700 hours of training, with a successful outcome of more than 85% and an average of 14.7 hours training per year for each student. One year more, SERHS favours “blended” training, which is training consisting of attended sessions combined with tablets of e-learning. The wager on this form of training (attendance + e-learning) means that the student becomes an active subject in their own training and is able to establish their own learning rate with maximum flexibility when doing the course (day/time and place) and also receives personalised monitoring from their tutor (either online or in attendance) where they can consult doubts and consolidate their learnings. Since 2010, SERHS has had its own LMS e-learning platform with a catalogue of more than 500 courses in different areas: sales skills, finance, office informatics, Internet and basic tools, languages, management skills, quality, prevention of occupational risks, university certification courses and “social games”. In 2014, this platform brought in more than 50% of our workers.

Our companies choose e-learning because it supposes a guarantee of quality, a reduction of expenses (administrative and travel) and also standardises the training content the workers will receive (everyone receives the same training whatever their geographic location). Furthermore, as added value, the workers trained in this form acquire greater agility with ICT tools, something essential today for any job. Administration and Finance. 1% Sales and Marketing. 2% Specific Division. 8% ORP Training. 34% Skills and Human Resources. 24% Office Informatics & New Technologies. 24% Quality, Environment and CSR. 8%

*Subjects in which the SERHS group staff trained in 2014. As for the external customers, the Training department processed more than 35 training groups in which 210 students took part with a total of 6500 training hours.

SERHS annual report 2013-2014

Presence

Prevention of Occupational Risks

2014 saw the culmination of a strategic project for the Human Resource Development Department: the implementation of a new Presence Management System in the almost all SERHS centres in Catalonia. The Corporate Management has established a transversal policy throughout the whole corporation in this area. The aim is to have new measures to control efficiency, productivity and workload as well as flexibility for the workers to be able to manage their own presence and/or absence. The present system includes hardware (biometric terminal) to receive the worker’s fingerprints, and software through which each worker is able to consult and manage their own time and to ask for leave and holidays. With the Softmachine partner, our supplier par excellence of innovative time management and access control products, this system was implemented in almost all of the Catalan centres of the group in 2014.

In 2014 the Associated Prevention Service in collaboration with the work centres, implemented online control of all compulsory documentation throughout the SERHS work centres with respect to coordinating business activities through the e-coordina application. The work centres asked for the documentation to coordinate business activities, in other words from the subcontracted companies performing maintenance work. With respect to this, there was a compliance of between 60 and 70%. The aim for 2015 is to achieve 80% compliance with the requests sent. Furthermore, through a commercial agreement with the company Einber Sistemas de Gestión S.L. in 2014 an integral occupational risk prevention software was developed which will bring in the business activity coordination management module. The implementation of this new tool will start in 2015. The effectiveness and efficiency of continuous risk prevention work in the companies of the corporation has allowed 10 of these companies to receive an incentive for good occupational risk prevention management, known as “BONUS FOR LOW LOSSES”, for a total value of €16,200. This went to the companies Costabonaser, Allelac, Montgriser, Montsenyser, Canigoser, Vivahotel, Serhs Tourism, Viajes Lider Canarias, Mediterraneum XX and Migjornser. In recognition of the achievement of this incentive, SERHS was awarded an accrediting diploma for each of the companies.

SERHS annual report 2013-2014

www.serhs.com www.humanserhs.com | www.asseguris.com | www.migjornser.com

Losses The overall loss index of the SERHS companies fell by 0.35 points in comparison with 2013 (see Fig. 1). It must be stressed that all of the accidents were minor. Amongst the work accidents we could distinguish between the work accidents in the workplaces themselves and/or on mission, the so called “on route” accidents, referring to those accidents workers suffer on their way to or from work (art. 115.2d LGSS). With respect to the “on route” accidents, it is very difficult for companies to prevent or act against them as the accident has nothing to do with the company activity. The loss rate of accidents without including the “on route” accidents fell by 0.64 points in comparison with 2013 (see Fig. 2) Total loss % of SERHS, comparison 2013 vs 2014

(total number of accidents with worker average annual leave)*100 5,92%

-0,35

5,57%

ACCIDENTS WITH SICK LEAVE 2013

ACCIDENTS WITH SICK LEAVE 2014

Total loss % without on route accidents of SERHS, comparison 2013 vs 2014

(total number of accidents with worker average annual leave)*100

5,24%

-0,64

4,60% ACCIDENTS WITH SICK LEAVE WITHOUT ACCIDENTS WITH SICK LEAVE ON ROUTE ACCIDENTS 2013 WITHOUT ON ROUTE ACCIDENTS 2014

One of SERHS’s objectives has been and will be to make all efforts to improve the loss rate with a view to continuous improvement and zero accidents, always watching and monitoring one of our principles in the safety and health of our workers. Evolution of accident rate index SERHS 2009 -2014

2014

5,57%

2013 2012 2011 2010 2009

5,92% 4,95% 6,50% 5,72% 7,35%

In the course of the last 5 years, since 2009, we have achieved a significant drop in this index, which in the last four years has remained on an average of 5.7%.

SERHS annual report 2013-2014

Cloud Computing, following the defined corporate strategy, works on the creation of a hybrid Cloud to give the group’s infrastructure more security, scalability and cost optimisation.

BI/Big Data redesigns the whole of the BI Corporate strategy by using “Leaner” tools to allow short projects to be made and which give benefits more rapidly.

SERHS annual report 2013-2014

“

ADMINISTRATION AND FINANCE

ASSEGURIS MEDITERRANEUM XX, CORREDURIA D’ASSEGURANCES, S.L.

An area attached to SERHS financial corporate management which is formed by different specialised sections such as the calculation centre, tax advisory service, auditing, treasury and aggregation and financial consolidation. Its fields of action are the companies of the corporation and it also receives collaboration from different external advisers.

SERHS’s insurance brokers, Asseguris, engaged in advising on distributing all kinds of insurance products, deals with the leading companies on the market such as MAPFRE, AXA, DKV, ALLIANZ, ACE, ZURICH, VITALICIO, ARAG, FIATC, EUROPEA DE SEGUROS, MARKEL, AGRUPACIÓ MÚTUA, LIBERTY, NATIONAL SUISSE, REALE and CASER. This year it signed an agreement with another leading insurance company on the market, HISCOX (specialists in Professional Civil Liability), in order to increase the scope of its offer. Secondly, this year it has reached an agreement with the Association of Holiday Camps and Hostels of Catalonia (ACCAC) to offer a specific product for this group with special covers for their sector of activity. This association has already been working with SERHS Distribution for a couple of years.

Asseguris has adopted the goal of advising and tailoring a product adapted to business needs to offer the best option for each of the more than 90 holiday camps that the ACCAC has around Catalonia. The agreement was reached on the past 3 December 2014 as part of an event with all of the partners of the association at the El Xaloc holiday camp in Calders. Asseguris maintains its wager on investing in training in order to professionalize the staff especially in online areas and new technologies to adapt to the new demands of modern consumers.

SERHS annual report 2013-2014

SERHS New Technologies >

Manages more than 2,000 mobile telephone lines and more than 1,000 land lines.

Monitors more than 60 presence points in Spain and Brazil

The CPD houses more than 350 servers of different technologies

Gives support to more than 1,500 external and internal users

MIGJORNSER, SL

STRATEGIC AGREEMENTS

NEW PRODUCTS AND SERVICES

This provides the technological infrastructure for the whole of the corporation and manages the corporate technology platform and all applications derived from it. It works on the systems, the hardware and software. It carries out technological projects such as installations, telecommunications, software implementations, IT consultancies, preparation of web sites, management of e-mails and hosting, amongst other things. Lastly but very importantly is the service it offers all the group companies, which we call Service Desk (technical attention to users) and the Data Center service (CPD).

In the last year, a framework agreement was carried out as technology partners with Telefònica, which includes landline telephony, the data network and Internet. With respect to mobile telephony, our trust remains with Vodafone, and we have renewed a collaboration agreement which has already lasted 15 years. The agreement was also renewed with Google to continue using the collaboration suite and the electronic mail (Google Apps) for which we were the pioneering installation in the Spanish state now more than seven years ago. Equally, Ricoh is also still entrusted with the management of the whole line of printers and the Documentary Management project, as in the last six years. Last but not least, the agreement on the unlimited use of licences with Oracle has been extended until 2016.

In a continuous improvement of processes and staff, a new profile has been brought in, that of Solutions Architect, which is intended to help to give uniformity to all of the solutions implemented from the technological viewpoint. An Oracle Data Base Administrator has also been brought in to administer all of the databases more directly. As for the commercial part, in addition to consolidating the products already being commercialised, we have focused on the ICT Consultancy/ Assessment service. By way of a reminder, the principal services already commercialised and which can be found on the www.migjornser.com web site are: • Google Apps • Mobile telephony • Wi-Fi Hotels pack

SERHS annual report 2013-2014

SERHS

Real estate

Related companies

This business division deals with seeking the best deals for the assets that SERHS holds. Structured within the company Kimburu, S.L., its actions are focused on the rental of facilities and bargain and sale or promotion of certain actions both on urban and industrial lands.

ESCOLA UNIVERSITÀRIA D’HOTELERIA I TURISME DE SANT POL DE MAR

PUBLINTUR, S.A.

This centre, attached to the University of Girona and founded in 1966, enjoys a long tradition in tourist, hotel and gastronomic training and has a close and reciprocal bond with SERHS. But the most important thing about this hotel-school, which was a pioneer in Europe in offering university qualifications, is the exchange established between the centre and our group of companies, producing intense and fruitful feedback. The EUHT de Sant Pol de Mar is and becomes a receiver of the group’s business baggage. Furthermore, the group benefits from the support, knowledge and technical experience that can only be given by a certified university centre which is a benchmark in the State and enjoys international prestige. The school has been institution recognised on both the level of the state and the autonomic region, as well as in the sector. It belongs to the exclusive “Hotel Schools of Distinction” network and is the only member of this prestigious association of hotel schools in the south of Europe.

Dedicated to image and communication, graphic and digital production, Publintur maintains a close and intense relationship and bond with SERHS. This year it has extended its action in the field of online marketing in order to offer and help to implement strategies with its customers to help to improve their presence on the Internet, so that it might become a profitable resource for the company. Altogether, activities that have produced strong business synergies and have promoted quality relationships. Throughout 2014, PUBLINTUR saw how the proposal to create the “Tourism Museum”, a unique project in the world and also promoted by Calella Town Hall (Barcelona), has received a new drive. We must also highlight the start-up of a new digital printing station and an electronic sign service, which includes the design and preparation of informative and promotional pills accompanied by a platform of management and monitoring, which turn the screens of the establishments into windows of communication.

Equity and Portfolio As a business corporation, Grup SERHS S.A. holds a large portfolio of securities and, at the same time, is the owner of a series of buildings. Through its portfolio, it plays a dominant role either directly or indirectly in all of the group companies.

Related Companies SERHS S/COOP. C. Ltda. Its initial drive and will to cooperate and associate at the service of people have enabled it to develop an intense social activity. Ever since it started now 40 years ago, its sense of belonging, of mutual confidence and its will to improve the deployment of many initiatives around the company have facilitated what is known today as SERHS.

SERHS annual report 2013-2014

Corporate Social Responsibility

SERHS annual report 2013-2014

“

POLICY OF CONCILIATION OF WORKING AND FAMILY LIFE In 2014 a total of 1,143 applications were received, 44% more than in 2013, and more than 30% of the total have asked for some measure of conciliation throughout the year, which is also an increase over last year.

TOTAL SERHS GROUP

SERHS SERVICES

SERHS FOOD

SERHS HOTELS

31,04%

Hours available. 80%

25,27%

64,89%

60,42%

48,08%

42,86%

26,41%

SERHS TOURISM

19,84%

SERHS DISTRIBUTION

17,73%

43,56%

2013 2014

39,77%

72,73%

Percentage of payroll asking for some measure of conciliation, comparison 2013-2014

As for the type, most applications were for available hours. This year, a total of 3,893.5 hours were asked for. The SERHS Conciliation Plan allows a pack of extra hours to be offered to workers, equivalent to 5 working days. This is available for all needs in addition to the hours of their professional covenant, or if their covenant should not include certain leave.

Child birthday. 4% Leave. 4% Change of working day. 12%

SERHS annual report 2013-2014

Corporate Social Responsibility

With regard to the volume of hours, in 2014 3,893.5 hours were conceded, 45% more than in the previous year. 1.509

DOCTOR PUBLIC ADMINISTRATION PROCESSES

EXAMINATION OTHERS CHILD’S BIRTHDAY 1 WEEK FOR MATERNITY/PATERNITY

SERHS each year starts at the program of Family Aid, which includes subsidies for workers with children at school age. This year the SERHS Group gave out €50,000 to more than 200 families who received one of the 4 kinds of aid included in the program: Welcome Baby: SERHS welcomes newborn babies with a gift especially indicated to celebrate this happy event. Nurseries: This is a subsidy for workers who have children under 3 in their charge who are enrolled in nurseries. School material: Aid for school material for workers with children from 3 to 17 years of age at school. University/higher grade training cycle grants: This proposal aims at giving grants to workers’ children who are studying a university degree or doing a higher grade training cycle.

409

256

CHILDREN’S MEETING

FAMILIES PROGRAM

175

105

AID CONCEDED

371

288

CONTRACTING AND REDUCING THE WORKING DAY LEAVE FOR FAMILY CARE

782

247

49 13

295

281 54

289

253

17 15

61 17

164

178

179

2013

2009

160

153

50 22

2010 Welcome Baby

2011 School Material

2012 Grants

Nurseries

SERHS annual report 2013-2014

SERHS MANAGES THROUGH TALENT In the last quarter of 2014 the 9th edition of the Management Development Plan was started. When this edition finishes, 57 managers will have gone through the plan. At the present time, 38 works have been presented, 90% of which consisted of developing leadership strategies and putting them into practice in order to achieve better of activity from their work teams.

COMPANY VALUES

FINANCE FOR NON FINANCIERS

SKILLS DEVELOPMENT FOR TEAM MANAGEMENT

EDITION 1

COMPLETED

EDITION 2

COMPLETED

EDITION 3

COMPLETED

EDITION 4

COMPLETED

EDITION 5

COMPLETED

EDITION 6

COMPLETED

EDITION 7

COMPLETION MAY 2015 COMPLETION SEPTEMBER 2015

EDITION 8 EDITION 9

PROCESS IMPROVEMENT

COMPLETION NOVEMBER 2015

DOCUMENTARY MANAGEMENT PLAN Electronic billing 78% of the billing received by the SERHS group from suppliers is electronic, and the rest is digitalised in order to eliminate the use of paper. The fact of having a bill in electronic or digital format has enabled the approval process to be automated meaning that certain bills are automatically approved without any manual action and others can be confirmed from any place and at any time. 100% 90% 80% 70% 60% 50% 40% 30% 20%

PAPER

E-BILL

TOTAL SERHS GROUP

SERHS SERVICES

SERHS FOOD

SERHS HOTELS

SERHS TOURISM

SERHS DISTRIBUTION

10%

COACHING

FINAL WORK

SERHS annual report 2013-2014

Corporate Social Responsibility

Work file in digital format: In 2014 all of the work files of the SERHS payroll were put into digital format and the PortalSerhs was created, an access for every worker to download their documentation at any time. In SERHS hard copies are no longer given, but the documentation is made available to the worker so that it can be downloaded by the users themselves from any place or at any time. At the present time, nearly 4,500 work files have been digitalised. Electronic signature has been brought into this project. All working documentation signed by the management team is now in this format, and also all internal documentation that requires signing. The aim is to extend the procedure to third parties too and to include the biometric signature as a means to eliminate the production of paper and to achieve the goal of paper-free offices. Mercantile documentation: This year, internal documentation started to be produced in electronic format, and in the coming year the aim is to extend this to other kinds of documents.

SERHS annual report 2013-2014

Environmental aspects

In recent years, SERHS has brought criteria of environmental protection into the general management of its business in a general policy of corporate social responsibility, and assuming its part of responsibility in preserving and improving the environment. In this sense, the corporation is moving forward slowly but surely along the path to environmental excellence.

SERHS DISTRIBUTION SERHS Distribution adheres to the Program of Voluntary Agreements for the reduction of greenhouse gas emissions. The companies Facilcar, Port Parés and soon Serhs Fruits have adhered to this project from the Government of Catalonia. The Voluntary Agreement is a commitment that any organisation, company, entity or group can voluntarily assume in order to contribute to reducing greenhouse effect gas emissions beyond what the regulations require. In the agreement, the organisation agrees to draw up an inventory of its emissions, to consider and implement measures to reduce them and to make an annual follow-up to assess the results of its voluntary effort. The immediate benefits obtained are the reduction of the energy bill, the reduction of dependence on fossil fuels and the vulnerability associated with potential price increases, the advanced strategic positioning in terms of environment and climate change. On the one side this brings added value to the services, products or projects of the organisation and, on the other, to the organisation’s

relationship with its members or workers, and the improvement of environmental management thanks to the involvement of the organisation’s suppliers and customers. On the level of waste management, all companies in the division manage the waste produced through authorised waste managers (principally plastic, cardboard and organic products). All of the companies of SERHS Distribution have a vehicle maintenance program of their own and also subcontracted. SERHS Distribution has a team of people responsible for Quality and Environment that leads and defines the processes related to reducing the environmental impact of waste produced by the distribution activity. The distributors have a Code of Good Environmental Practice made up of a series of actions in order to improve the company’s environmental behaviour. These are simple measures whose application does not require great technological changes, but are rather basically aimed at organisational factors of the company. It also has collaboration alliances in order to promote these good environmental practices.

SERHS TOURISM As part of the project of documentary digitisation and management efficiency, SERHS Tourism achieves more than 90% paper-free billing by doing the process directly online, in accordance with the established aim of completely eliminating bills on paper. SERHS HOTELS The group’s hotel division has specifically brought the Hotel SERHS Sorra Daurada into an automatic energy consumption control system installed by the company Denergy. With the aim of improving the quality reputation of the services and installations of our hotels, in 2014, the SERHS Rivoli Rambla refurbished its rooms and furniture and installed lights with LED technology to ensure more efficient consumption. The establishment is in the heart of Barcelona and is a hotel of high occupation and customer rotation throughout all of the months of the year. Since the spring, the SERHS El Montanyà has been using the biomass boiler with great economic savings and also in ter-

SERHS annual report 2013-2014

Environmental aspects

ms of CO2 emissions. As for the Vilars Rurals, in which one of the fundamental pillars is care for the environment, an agreement has been reached with the Soler Group which will perform as an Energy Service Company and deal with the purchases and consumptions of energy. In addition to preparing and updating the installations to make them more efficient, work is in process to install a biomass boiler in each of the Villages as well as frequency variators, motors and other economising technologies. SERHS FOOD The Security, Innovation & Nutrition for Catering system brings a considerable improvement in the food safety, hygiene, diet control and environment. The handling processes of the Security, Innovation & Nutrition for Catering system are developed in such a way that they impose strict and measured control over the procedures taking place in the establishments, guaranteeing the harmlessness and salubriousness of the food at all times. The system provides the implementation of ISO 22000:2005 certificates on Food Safety Management in facilities that apply it; as a result, this certification was granted to Vic University Hospital in 2014 and was maintained in the central kitchen in Vilassar de Mar.

Concerning the environment, the design of an installation of the Security, Innovation & Nutrition for Catering system is a different way to work on restoration. Energy consumptions and those of cleaning products fall considerably and also reduce the waste they produce. And more importantly still, they contribute to practically eliminating food waste, which is one of the companyâ&#x20AC;&#x2122;s main concerns at the present time. ISO 14001:2004 environmental certification shows that the Security, Innovation & Nutrition for Catering system is an environmentally correct system implemented, for example, in the Sant Jaume Regional Hospital of Calella, where each year waste minimisation goals are achieved. SERHS PROJECTS With the collaboration of SERHS Projects in designing facilities where the Security, Innovation & Nutrition for Catering system is implemented, large environmental savings are achieved on the level of energy consumption, cleaning product consumption, waste production, etc. It also contributes to the environment with the search for suppliers of low energy consumption machinery and new technologies as the main goals of their ISO 9001:2008 certified quality management system.

SERHS SERVICES AND NEW TECHNOLOGIES This division promotes the recycling of printer paper, cartridges and toners (the recycling being included in the agreement with Ricoh). Centralised recycling is performed on any electronic equipment in all of the SERHS companies either in collaboration with NGOs or by taking the material directly to approved deposits. Both the offices of Migjornser and the CPD have rooms equipped with air-conditioning and heating which are programmed to guarantee the right temperature but also to ensure energy savings whenever possible. Energy consumption is therefore optimised as far as possible. The fact of intervening in automation/domestic control projects means that it helps the rest of the companies of the group to improve their energy efficiency, and therefore to optimise their energy consumption. The technology was implemented to help to meet the â&#x20AC;&#x153;Paper-free Officesâ&#x20AC;? goal with multifunctional devices, online collaboration tools (Google Apps), electronic billing, documentary management, electronic signature and the digitisation of work and business files.

SERHS annual report 2013-2014

Social Area

Supportive agreements VICENTE FERRER FOUNDATION

OMNIUM CULTURAL

CARITAS I TRAINING AND WORK FOUNDATION

Once more this year, the corporation renewed the agreements started more than 10 years ago with the VFF in India. This year, the collaboration will be aimed at the building of water structures for the collection of rainwater, this time with a reservoir. Construction will begin in the month of September 2014 once the necessary additional financing has been found for a project of such a size. Up to now, the collaboration had mainly addressed the financing of development projects in the sector of the disabled, with the construction of schools, study centres and other buildings in the region of Anantapur (India) to guarantee that disabled children could have access to quality education.

SERHS has renewed its collaboration agreement with Òmnium Cultural in order to support our language and the Catalan culture.

For the sixth consecutive year and continuing with its volunteering, SERHS has started up the “Give food, school material or toys and feed desire” campaign. One year more, the aim was to voluntarily collaborate in the donation of all of these elements to share with the most disfavoured groups by actively participating in feeding, mainly with Cáritas, and less in the area of toys with the TRAINING AND WORK Foundation. Apart from this sporadic campaign, the SERHS Distribution division periodically worked with the Food Bank. In 2014, products were contributed to a value of €20,000.

SERHS annual report 2013-2014

Social Area

Emblematic events SERHS NIGHT 2014

FAMILY FESTIVAL 2014

This is an emblematic celebration that has been held since SERHS’s first year of existence around a gala dinner with shareholders, collaborators and figures from the economic, institutional and social world. On the past 3 July, the 38th SERHS NIGHT was held at the Castell Jalpí. For the second consecutive year, the Minister for Enterprise and Occupation of the Government of Catalonia, the Rt. Hon. Mr. Felip Puig presided the event which gathered more than 300 guests between shareholders, collaborators, figures and friends of the corporation. This exciting event included the SERHS Prize-giving and the company Gallina Blanca Star was distinguished with the special prize for its “Trajectory and Commitment to SERHS”, a prize that was collected by Mr. Ignasi Ricou, CEO of Gallina Blanca Star, accompanied by Mr. Joan Cornudella, CEO of Agrolimen. The SERHS Awards were also given for the “Manager of the year”, which this year went to two managers of Serhs; on the one hand to Mr. Lluis Pérez, sales manager of the SERHS Distribution coffee department, and on the other to Mr. Ernest Guitart, operations manager of SERHS Hotels in Brazil and director of the SERHS Natal Grand Hotel. The award to the “Distinguished worker” this time went to Mrs. Núria Rueda, head of the Andalusian office of SERHS Tourism. They were all thanked for their work and their contribution with their effort and example to maintaining and significantly driving the activity of SERHS.

Barcelona Zoo was once more the stage for the party most long-awaited by the workers of the corporation. This time, coinciding with the 10th edition, there was a record attendance with 500 people between the workers and their families as part of the celebration of Family Day. First thing was the awarding of the aid forming part of the “Families Program 2014”, for SERHS workers, accompanied by a gift for the children. A draw was held during the event for 3 annual tickets to the Zoo for 3 families, and it was also accompanied by a photography competition in which the 3 most beastly, original and amusing photographs were rewarded. By participating through the Twitter and Facebook social networks, the contestants will be rewarded with annual family tickets to the Zoo and tickets to the Tibidabo funfair. The families were then able to enjoy a day with their family in the zoo with activities for the youngest and tours around different routes of the park, including a dolphin show. It must be remembered that SERHS Food has managed the restaurant points in the Zoo since November 2012.

SERHS annual report 2013-2014

Economic-Financial Information 31-08-2014

SERHS annual report 2013-2014

â&#x20AC;&#x153;

Presentation This economic and financial information corresponding to the year closing at 31 August 2014 that follows, has been prepared from the account registers of Grup SERHS, SA and its subsidiaries in order to show the true and faithful image of the wealth, the financial situation and the results of the Consolidated Group. These consolidated figures are backed by the auditing of the firm Faura-Casas Auditors-Consultors and, as such, according to their opinion which we attach below, the annual accounts of the 2014 financial year express the true and faithful image of the consolidated wealth and consolidated financial situation of Grup SERHS and its subsidiaries, and the results of their operations. This dossier includes:

GROUP CONSOLIDATED ANNUAL ACCOUNTS Financial statements (Balance Sheet and Profit and Loss Account) Auditorsâ&#x20AC;&#x2122; report CONSOLIDATED INFORMATION Different analyses of important aspects of the economic and financial situation. IMPORTANT NOTE: the General Assembly dated 7 October 2013 approved the close of the financial year at 31 August, given the seasonal nature of our business. It is for this reason that in relation to the comparison of the figures, those indicated as 31/08/2014 correspond to a full financial year starting on 1/09/2013 and ending on 31/08/2014, whereas those indicated as 31/08/2013 correspond to a period of eight months between 1/01/2013 and 31/08/2013.

SERHS annual report 2013-2014

SERHS consolidated annual accounts

For the effects of drawing up the Annual Accounts of the GRUP SERHS, SA and its subsidiaries (Consolidated Group), we must remember that the Group is formed by 58 active companies grouped by business operative divisions, with the following composition: SERHS DISTRIBUTION SERHS TOURISM SERHS HOTELS SERHS FOOD & PROJECTS SERHS SERVICES & NEW TECHNOLOGIES SERHS REAL ESTATE SERHS EQUITY AND PORTFOLIO

11 Companies 2 Companies 12 Companies 11 Companies 8 Companies 7 Companies 7 Companies

In the year 2014, the Moroccan company International Catering ZFT SARL left the Group consolidation perimeter (by the dissolution), leaving the number of companies at 58. Likewise, there were movements between the different divisions as a result of the process carried out to rationalise the number of companies belonging to each division and to increase the number of businesses in certain divisions. In application of current regulations, as a result of the different percentage participations of the companies forming the consolidation perimeter, this year different consolidation procedures were used, which are: • •

GLOBAL INTEGRATION Method (Companies with a participation of more than 50%). The consolidation method used in 2014 for all of the companies of the Group, mentioned above. PLACEMENT IN EQUIVALENCE Method (Companies with a participation of between 20%-50%) Companies consolidated by this method in 2014: “Viatges Sol i Esquí, SA” (travel agency), and “Baciverser, SL” (real estate company)

The functional currency of the Group is the euro. As a result of the Group internationalisation process in recent years, the Group has been joined by Brazilian and Moroccan companies in the consolidation perimeter and transactions have also increased with foreign customers and suppliers using currencies other than the euro. This means that our Group is currently working with four different currencies: • Euros (EUR).- The principal working currency of our companies. • Dollars (USD).- The currency in which certain operations are performed with countries outside the European Union. • Brazilian Reals (BRL).- The principal working currency of our companies in Brazil. • Dirhams (MAD).- The principal working currency of our companies in Morocco. The fact of working in different currencies and with different accounting criteria makes the consolidation procedure more complicated as the financial statements have to be transformed into a currency other than the functional currency of the Group, which is the euro, and which can produce conversion differences with repercussions on the equity and results of the year due to exchange rate differences in transactions. Since 2010, the SERHS Group has been taxed under the system of tax consolidation in which a total of 43 of the subsidies were included in 2014 for Corporate Tax, and 47 subsidiaries for VAT.

SERHS annual report 2013-2014

Consolidated Balance Sheet ASSETS A) NON-WORKING ASSETS I. Intangible fixed assets II. Tangible fixed assets III. Real estate investments IV. Long-term investment in group and associated companies

31-08-2014

31-08-2013

191.636.008,58

177.962.253,35

17.999.060,54

18.018.814,21

132.317.209,10

125.595.833,22

6.476.609,26

5.075.280,85

573.985,09

571.017,05

14.205.621,89

7.563.046,16

VI. Assets for deferred tax

9.144.134,30

10.218.873,46

VII. Consolidation goodwill

10.919.388,40

139.895.051,08

160.700.301,01

V. Long-term financial investments

B) WORKING ASSETS I. Non-working assets held for sale

9.612.266,65

24.971.413,47

II. Stocks

18.156.673,49

20.485.763,06

III. Commercial debtors and other accounts receivable

85.471.346,74

84.862.223,13

IV. Short-term investments in group and associated companies

0,00

V. Short-term financial investments

3.174.667,37

6.791.074,16

VI. Short-term deferrals

2.005.007,30

1.961.156,45

21.475.089,53

21.628.670,74

331.531.059,66

338.662.554,36

31-08-2014

31-08-2013

VII. Cash and other equivalent liquid assets TOTAL ASSETS (A+B) LIABILITIES A) A) NET EQUITY

86.547.956,89

83.978.273,85

A-1) Stockholdersâ&#x20AC;&#x2122; equity

87.570.766,88

86.444.167,70

A-2) Adjustments for changes in value

-7.907.413,42

-9.430.069,24

A-3) Subsidies, donations and legacies received A-4) Minority interests B) NON-WORKING LIABILITIES

I. Long-term provisions

II. Long-term debts III. Long-term debts with group and associated companies IV. Liabilities due to deferred tax V. Long-term deferrals C) WORKING LIABILITIES

0,00

6.884.603,43

6.964.175,39

106.051.324,17

95.400.894,15

0,00

105.455.903,70

94.687.051,31

0,00

595.420,47

713.842,84

0,00

138.931.778,60

159.283.386,36

I. Liabilities related to non-working assets held for sale

0,00

II. Short-term provisions

0,00

15.920.619,00

27.953.694,20

III. Short-term debts IV. Short-term debts with group and associated companies V. Commercial creditors and other accounts payable VI. Short-term deferrals VII. Short-term debt of special characteristics TOTAL NET EQUITY AND LIABILITIES (A+B+C) Data expressed in euros.

0,00

122.899.609,36

131.138.944,33

111.550,24

190.747,83

0,00

331.531.059,66

338.662.554,36

SERHS annual report 2013-2014

Consolidated Profit and Loss Account 31-08-2014

31-08-2013

473.304.261,11

345.307.226,52

a) Net turnover

449.883.370,10

331.533.434,36

a1) Sales

389.258.215,02

292.033.411,31

60.625.155,08

39.500.023,05

23.420.891,01

13.773.792,16

20.366.119,68

12.514.682,41

0,00

3.054.771,33

1.259.109,75

-338.682.530,61

-249.857.454,06

-338.092.381,88

-249.764.556,43

-590.148,73

-92.897,63

-76.824.196,38

-50.743.961,34

a) Wages, salaries and similar

-60.100.606,52

-39.726.121,62

b) Social charges

-16.723.589,86

-11.017.839,72

Other operation expenditure

-40.579.728,91

-29.170.751,66

a) Outsourced services

-36.142.271,79

-25.539.120,21

-3.912.447,44

-2.754.505,35

-522.839,85

-863.447,59

-2.169,83

-13.678,51

-12.039.328,71

-7.070.649,10

0,00

8.045.818,95

-49.916,86

13.224.295,45

8.414.493,50

771.326,08

361.609,10

Financial expenditure

-9.976.465,92

-4.422.822,63

FINANCIAL RESULT

-9.205.139,84

-4.061.213,53

0,00

4.019.155,61

4.353.279,97

-1.798.589,60

-1.352.665,76

2.220.566,01

3.000.614,21

0,00

2.220.566,01

3.000.614,21

ON-GOING OPERATIONS Operation income

a2) Provision of services b) Other income from operation b1) Accessory income from operation b2) Subsidies b3) Work for own fixed assets Procurement a) Goods consumption c) Work done by other companies Staff expenses

b) Tax c) Losses, damage and change of provisions for commercial operations d) Other current management expenses Fixed assets repayment Provision surpluses The deterioration and result by fixed asset sell-off RESULT OF OPERATION Financial income

Participation in profits (losses) of companies placed in equivalence PRE-TAX RESULT Profit taxes YEAR RESULT FROM ON-GOING OPERATIONS INTERRUPTED OPERATIONS YEAR RESULT Data expressed in euros.

SERHS annual report 2013-2014

Investment activity

The present circumstances of our surroundings makes us cautious in our investments without stopping to make investments we consider essential for the future growth of our businesses. The volume of investments made by Grup SERHS in 2014 was of an overall amount of 6.4 million euros, made mainly in recurrent investments (new technologies, management applications for our businesses), vehicle fleet renewal, computer equipment, improvement of hotel facilities and warehouses, amongst others).

INVESTMENT 2014 17,09%

4,02%

19,72%

18,33%

Our analysis of the investment activity for 2014 by a group operative divisions and its share-out breaks down as follows: 40,85%

INVESTMENT 2014 BY DIVISIONS

(thousand â&#x201A;Ź)

SERHS DISTRIBUTION

1.272,00

SERHS TOURISM

1.102,00

SERHS HOTELS

1.182,00

SERHS FOOD & PROJECTS

2.635,00

SERHS SERVICES, REAL ESTATE AND PORTFOLIO

SERHS SERVICES, REAL ESTATE AND PORTFOLIO 259,00 TOTAL 6.450,00

SERHS annual report 2013-2014

Operation income

The figure for consolidated operation income for the year closing at 31 August 2014 supposed an increase of 1.07% with respect to the same 12-month period (September 2012 - August 2013) of the previous year, which we believe to be satisfactory given the circumstances in which this year has been developed, due to the situation of crisis in which we are immersed.

There follows a presentation of the weight of each of the divisions in the overall consolidated income of the Group. OPERATION INCOME BY DIVISIONS

46,65%

There follows a breakdown of this turnover by the different divisions of the Group: Division

31/08/2014 31/08/2013

SERHS DISTRIBUTION

167.868

167.828

SERHS TOURISM

220.788

215.506

SERHS HOTELS

33.407

31.611

SERHS FOOD & PROJECTS

48.068

48.747

3.173

4.615

OTHERS (Services and Equity) TOTAL Data in thousands of euros.

473.304 468.307

0,67% 10,16%

7,06 %

SERHS DISTRIBUTION SERHS TOURISM SERHS HOTELS SERHS FOOD & PROJECTS OTHERS (Services and Equity)

35,47%

SERHS annual report 2013-2014

Consolidated Information We must insist once more on the importance of the team for Grup SERHS, for as a result of their active participation and daily work, we can continue improving our products and services and maintain our leadership position. Taking the twelve month period, the evolution in recent financial years has been: PERIOD

Average Payroll

2010 2.683 2011 2.570 2012 2.500 2013 2.524 2014 2.529 The contribution to the national income, understood as an indicator of prosperity not only of the people forming part of the Group but also of our country as a whole, has always been a priority point for the attention of the Group. Its evolution in recent financial years has been: YEAR

Million euros

2009 88,38 2010 88,90 2011 88,60 2012 82,96 2013 (January-August)

57,85

2014 84,76 The table that follows shows the evolution both of the Results and of the Cash Flow and EBITDA of the financial year 2014 with respect to the previous year (taking a projection of twelve months to make them comparable, as the 2013 financial year was one of eight months) Financial years EBITDA Extraordinary results

2014

2013

25.263 18.001 0

Ordinary gross result

25.263

18.001

Repayment

-12.039

-10.108

Operation result

13.224

7.893

Financial

-9.205

-7.002

Pre-tax profit

4.019

891

Repayments

12.039

10.108

Cash Flow

16.058

10.999

Data in thousands of euros.

Published by: Grup SERHS, S.A. Design and production: Publintur, S.A. Photos: Publintur photo archive, SERHS photo archive, Joan Ribot, Lluís Valcàrcel February 2015

Edifici SERHS Carrer GarbĂ, 88-90 - 08397 Pineda de Mar (Barcelona) Tel. 902 010 405 - (+34) 93 767 03 78 - Fax (+34) 93 767 05 40 grupserhs@serhs.com