LETTER FROM THE CHAIRMAN OF THE BOARD AND THE PRESIDENT

carta del presidente del consejo y del director general

We have prepared this document as part of our commitment to keeping our stakeholders informed about our efforts in terms of corporate social responsibility. In it, you will find a summary of our most important actions and initiatives in 2015.

We are pleased to report that we made progress on a number of fronts, from programs to preserve the health and safety of our fellow workers, to initiatives in support of the communities where we operate, environmental care, and support to our value chains.

We also took a big step forward toward strengthening our Corporate Social Responsibility strategy with the migration to the G4 reporting methodology developed by the Global Reporting Initiative (GRI). To do so, we conducted an exhaustive analysis of the relevant issues we need to address, a study that gave us a more precise idea of the matters that our stakeholders consider to be the most important in our business. This will help us to develop an increasingly effective model of social responsibility management.

In addition to ALFA, our subsidiaries Sigma, Alpek and Nemak have joined in the effort by conducting parallel analysis and preparing their own reports on social responsibility actions.

During 2015 we executed more than 170 initiatives for the improvement of health and quality of life of our employees, including preventive healthcare, on-site medical attention, nutritional advice, and activities that promote healthier lifestyles. There are also personal and family counseling programs, which served more than 27,600 employees and their family members during the year. Reductions in the number and severity of accidents deserve also special mention.

On the community end, ALFA Foundation’s Educational Project operated three schools in Monterrey and opened the first high school. With this, it can continue mentoring students through their educational development after middle school. During 2015, the Educational Project provided services to almost a thousand students.

In environmental matters, ALFA placed special attention on managing water usage, as water is both an increasingly vital problem for the human race, and a key input for our companies. Our efforts to optimize the use of this essential resource yielded positive results: we were able to lower our water consumption by 3% compared to 2014.

In this report, we are also highlighting the programs our companies have carried out in support of their respective value chains. These initiatives include everything from actions to improve operations to consultancy on their social responsibility programs.

The year 2015 posed a series of challenges, including a decrease in oil prices and an appreciation of the U.S. dollar against the Mexican peso, both of which had an impact on our businesses. Nevertheless, we were able to overcome these obstacles and once again generate positive results.

For ALFA, social responsibility is a part of its business philosophy. For more than 40 years, we have commited to promoting the welfare of our employees, being solidary toward our communities, and respect our planet.

Going forward, we will redouble our efforts to consolidate this philosophy, toward which we have a permanent commitment, as demonstrated in the actions described in this report.

San Pedro Garza García, N.L., Mexico, February 2, 2016.


Armando Garza Sada
Chairman of the Board of Directors

Álvaro Fernández Garza
President