ESP

Message from the Chairman of the Board and Chief Executive Officer

On February 15th, 2023, we had the opportunity to thank, remember and appreciate those who, over the course of 100 years, have made it possible for this company to remain relevant over time, fulfilling its purpose of “making people’s lives easier”.

I would like to thank you all for your support during this year 2023, which was undoubtedly full of challenges, but also of learning experiences.

A year of great progress in the maturation of our comprehensive business transformation, defining the Iconn 2030 ambition and recognizing the customer at the center of our strategy. Building capabilities and focusing on strategic priorities to ensure that the vision is connected from strategy to execution, while resuming accelerated growth in point-of-sale expansion and maintaining the company’s financial health.

The path is set, we continue to focus on our priorities, performance management and strengthening the employer brand, while facilitating a better world.

Robust corporate governance, as well as institutionalization and transparency, have been key to the evolution of a family business into a private corporation, and are fundamental to the company’s long-term performance and sustainability. For this reason, we continue to strengthen our practices to ensure meritocracy, accountability, and ethics in all decisions.

We are a company committed to sustainability, which is immersed in our corporate strategy. Sustainability is embedded in our corporate strategy, identity and values. We recognize our responsibility to improve the standard of living of the communities in which we operate, and to preserve our planet for future generations. During 2023, we reinforced alliances with civil society organizations, supported projects that have a positive impact to contribute to their well-being, and made significant progress in our three sustainability pillars: People, Planet and Product.

In the People pillar, we continue to support the integral development of our employees, enabling them to improve their participation as citizens, their contribution in the family environment, and to work on their personal improvement. We promote fair labor practices, equal opportunities, diversity and inclusion, and we are distinguished as a flexible and trusting work environment, focused on creating growth opportunities for all.

In the Product pillar, we have promoted our own-brand products to be identified by their sustainable attributes for their production and packaging.

In the Planet pillar, we have allocated significant investments to reduce our carbon footprint and improve our energy efficiency, rational water use and responsible waste management in our operations.

None of this would have been possible without the support of the more than 2 million customers we serve every day, whom I thank for their preference and loyalty.


Thanks

To the Heroes of Our Operation,

whose physical presence allows us to meet the changing needs of our customers, offering the best products and services to make their lives easier.


To all of Our Employees,

for their commitment, hard work and dedication.


To Our Suppliers, Business Partners and Financial Institutions,

for their cooperation and trust.


To Our Board Members,

for their guidance and counsel in outlining our strategy and ensuring it is followed.


To Our Shareholders,

for their long-term vision and commitment to the company’s continuity and endurance.

A special gratitude to our company’s founders,
Ricardo, Andrés and José Chapa González we honor you for your entrepreneurial spirit and for laying the foundations of a company founded on respect for personal dignity and service to the customer.

I am hopeful and certain that lthe next 100 years will be even better!

Luis A. Chapa G.
Chairman of the Board and Chief Executive Officer