Valorem > Matters > Value generation for shareholders

Value generation for shareholders

Generación de valor para los accionistas
Valorem > Matters > Value generation for shareholders

Generation of long-term value for shareholders, taking into account profitability,
reputation protection and risk mitigation to ensure business continuity.

Valorem Report 2018

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Valorem
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Valorem achievements

  • The strategic risk management system was implemented, which allows to identify and monitor risks that may hinder the fulfillment of the strategic objectives set. Likewise, this system facilitates the creation of action plans which allow to mitigate such risks, and to identify value generation opportunities from them.
  • The socialization of the Sustainability Corporate Model and the results of its operation was carried out with key external players. These meetings allowed to validate the relevance of the five material matters of the model and to receive the necessary feedback to seek to generate value to all stakeholders.
  • A benchmarking exercise of the organizations with the best sustainability practices, Best in Class, was made to identify tendencies, define the management approach for the next years and advance in the road map of the Group´s Sustainability Corporate Model.
  • An analysis and prioritization exercise of Sustainable Development Goals, SDG´s, was initiated for each company in the portfolio.

Valorem’s outstanding initiative

  • Valorem defined, with the support of the Mckinsey firm, the road map to substantially increase the portfolio value in a sustainable way.

Achievements

  • The opportunities to close gaps and maximize the value potential of each of the Valorem Group companies were identified from a Top Down perspective
  • A work plan was established so that these opportunities are revised and validated Bottom Up with the responsible teams

Valorem challenges 2019 - 2020

  • To continue with the implementation of the portfolio value capture initiative.
  • To generate a commitment from the teams of all the companies of the Group to attain the project objectives of closing gaps and capturing value.
  • To continue implementing the best practices of sustainable growth.

Caracol Televisión Report 2018

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Caracol Televisión
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Caracol Televisión achievements

  • For the seventh consecutive year, it continued to be the television channel most watched by Colombians, with excellent results in prime programming.
  • The 20 most watched programs on television in Colombia in 2018 were productions of Caracol Televisión.
  • The series The Flow Queen was the most watched program with a share of 48.1% and an average rating of 16.7%.
  • The Caracol Newscast which is broadcast from Monday to Friday at 6:00 a.m. continues to be the most viewed news program in its strip.
  • The synergies between the various Caracol Televisión media were strengthened.
  • The agreements with Netflix were renewed.

Caracol Televisión’s outstanding initiative

To consolidate the Corporate Responsibility Model and strengthen the alignment of Caracol Televisión’s management with the Model.

Achievements

  • The materiality analysis was updated.
  • A revision and benchmark of the media companies that are part of the Dow Jones Sustainability Index was carried out.
  • Action plans were developed to address the improvement opportunities identified as a result of the self-assessment of RobecoSam’s Corporate Sustainability Assesstment (Dow Jones Sustainability Index) and the review of good practices.
  • An analysis was made of the battery of indicators that measure the different aspects of the Model, especially for the contents issue.
  • The framework for the creation, production and diffusion of responsible and quality contents was completed. For this, meetings were held with the vice-presidents that have influence on the contents of the media (television, radio, digital) in order to review said framework and subsequently validate it, disseminate it with their work groups and begin the empowerment process thereof.

Caracol Televisión challenges 2019 – 2020

  • To maintain sustainability of the business during the third television concession period.
  • To consolidate Blu radio in the digital world.
  • To potentiate synergies between traditional brands (television and radio) and digital ones.
  • To define KPI’s (key indicators) and goals for the Corporate Responsibility Model.
  • To work on empowering the framework for the creation, production and dissemination of responsible and quality contents.
  • To implement specific projects to strengthen the positioning among external and internal interest groups according to the results of the reputation study.
  • To continue monitoring the positioning of Caracol Televisión Inspires through surveys with external groups.

El Espectador Report 2018

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El Espectador achievements

  • El Espectador continues to be recognized for its independence, seriousness and transparency.
  • The process of optimizing the distribution network of print media in the 15 main cities of the country began, which generated savings in logistics and transportation.
  • It trained the equipment in topics related to new technologies such as: digital consumer, social media, big data, browser marketing, SEO, contents marketing, Ad On Line Native-Advertising, digital media sales, programmatic purchases and Analytics.

El Espectador’s outstanding initiative

  • The collective direction of the organization to digital environment was implemented.

Achievements

  • A new digital business unit was created to prospect the company to generate new income.
  • This allowed El Espectador to be the first communication medium in Colombia to commercialize its contents through the implementation of digital subscriptions.
  • Likewise, a new video format `Audiovisual Commercial Communication – ACC´ was developed, for the promotion of third-party goods and services.
  • It has been successful in creating digital information and opinion channels such as La Pulla, Las Igualadas, En Contexto, Pelaos, La Rubia y La Morena, La Prohibida, Red Zoocial, among others.

El Espectador challenges 2019 – 2020

  • To consolidate the migration strategy from print to digital environment.
  • To bring the printed product to its right proportion.

Cine Colombia Report 2018

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Cine Colombia
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cine-colombia-report-2018

Cine Colombia achievements

At the end of 2018 the company’s operation completed 45 multiplex, 321 screens and 61.000 chairs. Cine Colombia’s share regarding the number of cinematographic complexes (multiplex), was 20,7% and on screens 28.4% in relation to the total industry nationwide.

  • Cine Colombia managed to consolidate its best year both in viewers and at the box office. Of the 12 months of the year, 8 of them reached the record for the best month in history. In 2018, 27,7 million viewers entered the theaters, billing $252,176 million, compared to 2017 when 24,9 million viewers entered and $238,798 million were billed at the box office.
  • In the industry market share the leadership was also strengthened in box office and viewers, with 45,6 % and 43,3 %, respectively. In the previous year (2017) these same indicators were 43,8 % and 39,7 %. This confirms the success of the strategies applied by the company. Likewise, of the 13 cities where Cine Colombia is present, in 9 of them it is the box office market leader.
  • The food business in 2018 grew 15,2 % compared to the previous year, achieving sales of $225.069 million, figures with which the company in this line would be in the top 10 of the large food chains in the country.
  • The Cineco APP grew 48% as a sales channel compared to 2017, managing to sell 2,2 million tickets for cinema and alternative content; this means that the APP participated in 7,8% of the total tickets sold by Cine Colombia

The other special products of the company presented the following behaviors:

  • Cineco Card: 300 new cards were placed and 1,1milion cards registered transactions.
  • Cineco Plus Bracelet: this novel bracelet targeted at kids was launched, with which they can buy products and services at a special price through collectible pins and redeem prizes.
  • Platinum Cineco Card: in its second year of operation this loyalty card reached 18,879 clients in this category, which compared to the 15,490 users of the second issuance of the card represented a growth of 22%.
  • Cineco Portal: 1,1 million tickets were sold through this channel and 45,7 million visits were received.
  • Box Office Express / Kiosks: The service Box Office Express was implemented through which 1,2 million tickets were sold.
  • Pop Cinema: the “Pop Cinema” product was launched, the new microwave popcorn that can be found at box office and supermarkets. 

The company carried out several measurements throughout 2018 which reaffirmed the position of leadership, positioning and excellent reputation. These measurements were:

  • The Net Promoter Score (NPS), an indicator that allows knowing the recommendation rate and customer satisfaction with the brand. The results of this indicator have been 64 for 2018, which compared to a score of 57 in the previous year gives a growth in satisfaction of 12,2 %.

    External brand health study, where the brand predisposition went from 46,3 % in 2017 to 48,2 % in 2018. This indicator measures the percentage of people who think of Cine Colombia as the first option to go to the movies.

  • Route 90 is the initiative that has the greatest external recognition and that has helped to boost the good reputation of the company. This initiative has managed to transport the magic of movies so that thousands of families enjoy for the first time the big screen. In its first two years it reached 28 of the 32 departments of the country, traveling 38 thousand kilometers and more than 2,000 nautical miles to visit a total of 309 towns.

Cine Colombia outstanding initiative

  • During 2018, Cine Colombia concentrated on launching innovative experiences that keep holding good and exciting the experience of going to the movies.

Achievements

  • It inaugurated the Multiplex Viva Envigado in Medellín, the largest Cine Colombia Multiplex, and has 14 cinemas, all the food businesses, a Platinum Zone, 2 Platinum cinemas (with reclining chairs with superior level specifications, and restaurant service to the chairs), 2 alternative content cinemas, and the first IMAX screen for the Company.
    • The “IMAX Commercial Laser Projection System” is one of the few installed in the world, with a projector that uses the RGB laser technology and produces a higher brightness on the screen. It has a 12.1 channel sound system and a floor-to-ceiling screen of 22.5 meters wide by 12.8 high for a total projection area of 288 m2 making it the second largest in the country by size. This screen has maintained 54.8% occupancy and ranks first in billing in the country.
  • It premiered the Onyx Room, Samsung LED 4K screen, at the Andino Multiplex in the city of Bogotá. Samsung and Cine Colombia made an alliance to install the first Onyx Room with LED 4K screen for commercial cinema in Colombia, which has been a milestone in the evolution of cinema exhibition formats, as it is the first theater without a projector to be installed in South America, and number seventeen in the world.

Cine Colombia challenges 2019 – 2020

Cine Colombia must face the accelerated growth of movie access platforms via streaming and competition. For this, it has as challenges:

  • To get premium locations in the cities where it wants to be present.
  • To maintain the profitability in the negotiations of premises for Multiplex.
  • To innovate permanently in technology: type of theaters, screens, projectors, sound, chairs and food formats.
  • To strengthen the APP’s (digital applications).
  • To keep consolidating products like Pop Cinema, Cineco Plus and Platinum Card.

Tiendas D1 Report 2018

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Tiendas D1 Achievements

Koba conducted a reputation study with Invamer / Gallup. The study indicates that in general terms, both customers and suppliers have a very good impression of the format and a high awareness of the D1 brand.

  • For the specific dimensions of leadership, financial situation, social focus, environment and corporate responsibility, the company has a very positive reputation among customers and suppliers.
  • The awareness of D1 was much higher when compared to direct competitors.

A brand study was made with MillwardBrown, for which 600 surveys were conducted nationwide. Among the general conclusions of the study it was found that:

  • Consumers have a clear understanding of the value proposal of the different channels.
  • The strength of D1 is its effectiveness in converting new customers into loyal customers (81%).
  • The power of the D1 is explained in that it fulfills the shopper’s expectation associated with the category (quality/cost).

Tiendas D1 outstanding initiative

D1 is pioneer in the Hard Discount store format in Colombia, benefiting thousands of households with its expansion and growth and promoting local chaining.

Achievements

  • In 2018, it opened 176 stores nationwide, reaching a total of 900 stores.
  • It generated positive EBITDA.
  • It implemented responsible practices in the value chain.
  • It boosted the growth of its suppliers.
  • In maintained customer satisfaction and loyalty.
  • It generated welfare for more than 8,000 direct employees.

Tiendas D1 challenges 2019 – 2020

  • To advance in the process of continuous improvement taking as inputs the results of the aforementioned studies.
  • To reach break-even point (positive net profit).
  • To finish the exercise of constructing the risk matrix.

Refocosta Report 2018

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refocosta-report-2018

Refocosta achievements

  • It carried out its continuous update of the risk map with the accompaniment of the firm Deloitte, focusing efforts on the aspects of greater impact and vulnerability for the company.
  • It maintained the FSC (Forest Stewardship Council) certification, which it has had for more than nine years, ensuring compliance of principles and criteria for the responsible forestry management of operations.
  • It maintained a constant dialogue with stakeholders, including communities in the area of influence of the operating units to identify needs and contribute to their social and economic well-being.

Refocosta outstanding initiative

  • The company’s operation is leveraged on constant innovation of processes and lines of product to expand its portfolio and ensure greater profitability.

Achievements

  • It invested in the construction of a Plywood board factory as part of the growth and development strategy of the wood business line, with which Refocosta can expand its portfolio in the market and ensure its profitability.
  • It initiated the investment process required for the entry into operation as of 2019 of the power generation plants located in Villanueva, Casanare and Puerto Carreño, Vichada.

Refocosta challenges 2019 – 2020

  • To identify new high-impact businesses that generate value for the shareholder and benefits for the environment.

Ditransa Report 2018

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value-generation-for-shareholders
ditransa-report-2018

Ditransa achievements

  • A diagnosis of the business continuity plan was made with the Deloitte firm, identifying the gaps and defining the execution and implementation of the plan in 2019.
  • The company’s risk matrix was reviewed with the audit and the actions to mitigate high risks were delivered, including legal risks as well.
  • The KPI’s (key indicators) related to the corporate sustainability model were monitored and managed
    • Talent turnover
    • Compensation of the CO2 emitted, allowing to establish reinforcement actions in good driving practices, positively impacting the reduction of the carbon footprint.

Ditransa outstanding initiative

  • Ditransa seeks to generate value through innovation.

Achievements

  • The company was a beneficiary of the Mega i program (mega-innovative companies) of INNpulsa Colombia (https://www.innpulsacolombia.com/) to receive support from top-level advisers in identifying corporate entrepreneurship and open innovation initiatives to diversify its business lines.

Ditransa challenges 2019 – 2020

  • To implement the company’s continuity plan.

San Francisco Investments Report 2018

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San Francisco Investments achievements

  • A benchmarking exercise was carried out to identify best sustainability practices for the sector in the stages of construction and operation of the project.
  • It fostered dialogue and participation of the Gethsemane community to empower it as an active actor in its own development
    • More than 30 socialization meetings were held with the community, the media, government entities and community leaders.
    • The Protocol for Questions, Answers, Complaints and Claims (PQRS) was created and the community requests management office was installed.
  • The project website was created: www.proyectosanfrancisco.com and its social networks as a communication tool with the community. Instagram and Facebook.

San Francisco Investments outstanding initiative

  • To incorporate sustainable practices in the development of the project.

Achievements

  • San Francisco Investments (SFI) obtained a loan under the Green Bonds line, whose financing is aimed at investment projects that seek to prevent, manage and / or mitigate environmental impact, as well as adaptation to climate change.
  • The achievement of said loan reflects the company’s commitment to efficient use of energy and water resources in the development and operation of the project.

San Francisco Investments challenges 2019 – 2020

  • To develop the company’s Sustainability Corporate Model.
  • To implement the risk matrix and define the corresponding mitigation plans.

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