SERHS ANNUAL REPORT 2013

SERHSDNA2013 in forme anual

annual report

Institutional area

- Letter from the Chairman ..................................................... 4

- On the inside ....................................................................................6

Business activities

- Letter from the CEO ...................................................................8

SERHS Divisions

- SERHS Distribution ........................................................................10

- SERHS Tourism .................................................................................14

- SERHS Hotels ......................................................................................18

- SERHS Food .........................................................................................22

- SERHS Projects .................................................................................26

- SERHS Services ..................................................................................30

Human resources .....................................................................................34

- Staff Administration ................................................................35

- Presence ............................................................................................35

- Training ...............................................................................................36

- Occupational Risk Prevention .......................................36

- OHSAS18001certification .............................................37

- Accidents 2013 ............................................................................37

- SERHS Real Estate ..........................................................................38

- SERHS Equity and Portfolio .....................................................38

- Associated companies ................................................................39

summary

Registered address: Castell Jalpí, s/n - 08358 Arenys de Munt (Barcelona)

Tax and administrative address: Carrer Garbí, 88-90 - 08397 Pineda de Mar (Barcelona) - Tel. 902 010 405 - (+34) 93 767 03 78 - Fax (+34) 93 767 05 40 - [email protected]

SERHSDNA annual report 20132

Corporate Social Responsibility ..............................................40

- Occupational and family life conciliation policy ....41

- Families program ..............................................................................42

- Serhs manages through talent .............................................43

- Documentary management plan ........................................43

Social area ....................................................................................................44

- Supportive agreements ...............................................................44

- Emblematic events .........................................................................45

Environment....................................................................................................46

Economic-financial information ................................................48

General explanation ................................................................49

Consolidated Annual Accounts .....................................50

Auditors report .............................................................................51

Balance sheet ..............................................................................52

Profitandlossanalysis .......................................................53

Investment activity ..................................................................54

Revenue from operation .....................................................55

Consolidated information ..................................................56

Registered address: Castell Jalpí, s/n - 08358 Arenys de Munt (Barcelona)

Tax and administrative address: Carrer Garbí, 88-90 - 08397 Pineda de Mar (Barcelona) - Tel. 902 010 405 - (+34) 93 767 03 78 - Fax (+34) 93 767 05 40 - [email protected]

SERHSDNA annual report 2013 3

Last year, on the recommendation of our taxadvisers,weclosedthefinancialyearon 31 August as the strong seasonal na-ture of our businesses made this advis-able. The result of these 8 months was very positive, above all if we bear in mind the unusual state of the market in 2013. We closed our cash flow with €11.42 mil-lion, which was an increase of 20% over the same period in the previous year, and our consolidated sales increased by 2.01%, from €338.5 million in 2012 to €345.3 million in the same period in 2013 (if we take the consolidated sales of the 12 months in 2013, which amounts to €466 million, this is also a slight increase over the previous year).

These results allowed us to return a div-idend in September of €2,713,750, at a rate of €0.065 per share. In October, as every year, we distributed €1,613,143.90 in released shares, representing 1 share for every 60 under ownership. In Decem-ber, we collected the capital increase, selling 216,740 shares, which raised our share capital to €98,210,000 represented by 42,700,000 shares. Just like last year, I want to thank all of the partners for your loyalty and commitment. In the last divi-dend share-out in September, more than 69% of the partners chose to receive the €0.065 dividend in shares instead of cash.This,whichisalreadyasignificantfigureinitself,isevenmoresignificantif

we place it within the framework of the times we are currently going through, oncemoreshowingtheconfidencethatthe partners of Grup SERHS, S.A. have in the Corporation. Also in January, the company employees took on the Flex-ible Compensation Plan by purchasing 25,000 shares.

As for the perspectives for 2014, we must say that if we believe the news we read in the media, it seems that the market sit-uation will tend to correct itself, while on a general level a certain improvement is already being felt that at least makes us think that we have hit the bottom. In any case this is not happening in the street; companies continue to have difficultyaccessing credit and there is no need to mention the unemployment rate and theseriousdifficultiesmanyworkersarefindingwhohavebecomeunemployed.All of this makes us believe that nothing is quite as clear as they say, that the re-coverywillbeslowandverydifficultforsome, but we have to be optimistic and believe that we are now going into a more relaxed situation.

We have come through these last few years with a certain dignity, closing all of thefinancialyearswithprofitsandshar-ing out dividends and released shares. The work done to streamline structures, to correct inefficiencies, to gather and

concentrate activities and to consider-ably strengthen our management struc-tures must be highlighted. There is no doubt that without the collaboration of all our staff, and particularly of our man-agers, this would not have been possible; we have all made a great effort.

Now we can say that we have a much better management structure than in 2008 and that we are ready to take ad-vantage of this new market situation to increase our sales and especially our profitmargin.Todaythisisourgreatestchallenge, as we have the need to grow and to seek elements that allow us to in-crease our business.

The importance step we have taken in 2013 in the Tourism division must be taken advantage of in order to main-tain growth in 2014, especially bearing in mind that the tourist perspectives for this season are good. The Distribution division must continue to increase its In-ternet sales and must spread beyond the habitual areas in search of new markets, picking up on our experience in sales made last year in the Andalusian market. In the Food division we must continue to implement the Eudec System, which is our great opportunity to stand out from our competition and to create a model. Thanks to the development of the SER-HS Equipment website, we must contin-

Dear shareholders,


ue to increase sales through this chan-nel. In the Hotels division, we still have interest in finding establishments tomanage, especially in Barcelona, where we have seen the good experience of the SERHS Rivoli, and in Brazil, where the SERHS Natal Grand Hotel is working better and better.

We will continue to focus all our atten-tion on results, seeking maximum prof-itability and eliminating all products and actions that fail to bring in suitable profitorcauseusexcessiverisk.Forthemoment we will be very restrictive with investments and only undertake those which are necessary in the development of our business. As for new investments, we will be very careful and will only act if the operation is a very good one and liabletobeprofitableintheshortterm.

Where we will not stop placing our re-sources is in our staff training. We re-centlygavethediplomastothefirst18managers who completed the one-year “SERHS leads through talent” course. Wewillalsocontinuetowagerfirmlyoninvesting in new technologies, as we are more and more certain that the decision we took 15 years ago to create a compa-ny exclusively devoted to these matters was entirely the right one. Everything is moving at great speed and the fact of in-vesting in new technologies has placed

and connected us to today’s world. If we had not acted then, now we would be at a disadvantage and we would have missed an unrepeatable chance to be up-to-date. We will not stop seeking new business and innovating, above all, because we are in a world in which problems are not only resolved by doing things better, but often by being different.

Weareverysatisfiedathavingachieveda patent for our Eudec System, a system which sets us aside from the competi-tion and which we are applying to more and more centres managed by the divi-sion; we are sure that this system has a great future. Our hotel in Brazil, the SERHS Natal Grand Hotel, is working very well; so much so that it was recent-ly named the 6th Best Hotel for Families in South America. The only problem we have with Brazil is the fact that its cur-rency, the Real, is depreciating very fast, andthisbringsdifficultyforuswhenweexchange this currency to euros.

Furthermore, along with Barcelona Re-gional Council, we approached a spe-cialised company to make a study of the Russian market, and this has served to leave us as the benchmarks in this mar-ket. We must also remember that, just like last year, we signed a co-operation agreement with the Andalusian Minister of Tourism for €418,000 in order to pro-

mote Andalusia in the Nordic and East-ern European markets. Last year this agreement amounted to €210,000 and I would like to stress that, in the area of tourism, the Government of Andalusia has signed an agreement of this kind with us alone.

Our company has not been unseen in the economic sector of our country, as we are the leading tourist company in Cata-lonia and make a very large contribution to the national income. Our contribution to national income must be understood not only as an indicator of prosperity for the people forming part of the group, but also for the country as a whole. Our con-tribution to the national income in these eight months from January to August 2013 was €57,850,000 (if we consider the12monthsof2013,thisfigurewouldbe€83,169,000).Overthepastfiveyears,thisfigurehasreached€432,000,010.

Tofinish,Iwouldliketothankallofourpeople for their work in adapting to the demands of the modern world without losing the spirit which brought us onto the market in 1975 (soon 40 years ago). We now have a structure which assures us a better future, in which our partners, who always remained by our side at complicated times, will be witnesses to a large step forward by our group when the markets are stabilised.

Ramon Bagó i AgullóChairman of the Board of Directors of SERHS

Investing in the training of our staff is one of our principal goals.


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On the inside


SERHS shares out dividends for €2.7 million, 3% more than in 2012

On the past 12 September, the SER-HS Board of Directors agreed to share out dividends and shares for a val-ue of €2,713,750, 3% up on last year. For the fourth consecutive year, it was chosen to apply the dividend election programme for the 1,491 partners. As for the share-out of dividends, most of the shareholders, specifically 1,032(69.22%) came down in favour of buy-ing shares, and bought 201,608. The re-maining 459 partners (30.78%) chose to receive the dividends in cash.

SERHS increases its share capital to 98.21 million euros

At the last SERHS Ordinary General As-sembly of Shareholders held in the Cas-tell Jalpí in Arenys de MuntOn the past 7 October, the 358 share-holders that gathered there, represent-ing 64.48% of the SERHS share capital, approved the capital increase by means of monetary contributions in order to close the year with a share capital of 98.21 million euros. The capital increase was entirely covered by selling 216,740 shares. The term for taking part in the capital increase started on 8 October andwasfinallyclosedon30December2013.

Apart from a going through the main business activities of the group, it was unanimously decided to share out 699,193 released shares to the partners by way of non-monetary retribution equivalent to a par value of €1,608,144

For the fourth

consecutive year it was

chosen to apply the

dividend election

program for the

1,491 partners

SERHSDNA annual report 2013 SERHSDNA annual report 2013 7

SERHS MARKET, NEW ON-LINE SALE STRATEGY

At the beginning of 2014, SERHS started up “SERHS Market”, a website created with the idea of bringing together all of the corporation’s on-line sales plat-forms. This is a firmwager on on-linesales, to the extent that the 6 business divisions are already on the net selling their products and services through 8 on-line sales platforms (5 for products and 3 for services).At the time of its launch, the page, which can be expanded as new virtual shops start up, includes a wide range of prod-ucts and services of different categories: hotels and rural villages, food, drinks and cleaning products, equipment for the hostelry sector, prepared food range, insurance, computer products, staff ad-ministration services and many more.

SERHS INNOVATION 2013

In 2013, the winning projects of the SER-HS Innovation Plan 2011 were complet-ed, making a reality, on the one hand, of SERHS Distribution’s launch of its new website (www.serhsdistribucio.com) around which its on-line channel project revolves and is materialised. Further-more, the EUDEC project was consol-idated as an alternative to traditional group restaurant services in different sectors such as education, hospitals and micro companies.

More agile and transversal innovationWith the purpose of creating a more par-ticipative innovation, the SERHS ideas platform was started up in July, which is accessible to all of the corporation’s workers through the portal and which in just 6 months has brought in 60 ideas, 175 comments and 1,200 votes from a total of more than 250 users.

Inthesameperiod,thefirstideaontheplatform was implemented and three were chosen (the best of the year) to be developed in more depth and have the feasibility of their implementation stud-ied.

The winners of the Innovation Awards 2013 Santi Alcázar, Sandra Garrido and Joan Majó, accompanied by the General Manager Mr Raimon Bagó and the Chairman Mr. Ramon Bagó

The 6 business divisions

are already on the net

selling their products and

services on-line


In SERHS we still believe that, without forgetting the present, we must continue to clearly wager on the future. Our idea as a company has always to be one step ahead of events and therefore, despite the uncertainty of the present situation and the speed with which the market is developing, in SERHS we continue to work to make innovation part of the DNA of our businesses. We therefore under-stand that we have to have the best technologies to be able to be sure in fac-ing the future challenges. This year we can say that the Innovation Committee has worked in a consolidated manner to integrate all of the business divisions. The work done has allowed different ini-tiatives to be started in various divisions, which we hope will be consolidated in the coming years.Another of our features as a company is the way we wager on our staff, and our commitment to training is therefore unceasing. We continue to develop our e-learning platform, which we success-fully started many years ago. Thanks to this platform, we are able to offer trans-versal training to all workers of the group with complete flexibility and all possible guarantees of the quality of the training. Furthermore, two years ago we started the “SERHS leads through talent” pro-ject, aimed at managers of the differ-ent companies of the group in a highly innovative initiative in which we com-bine training in attendance with on-line training and coaching sessions. There is

great satisfaction in this and our aim is that around 100 managers of the com-panymightbenefit from it. Imust alsomention one of the most innovative and complex projects we have ever started in SERHS, the “Documentary Digitalisa-tion Plan”. The aim is to achieve a pa-per-free office and, to do thiswe haveworked on 3 large aspects: bills, occu-pational dossiers and mercantile doc-uments. Today we are able to say that almost 90% of our suppliers’ bills come in digital format and that this year, 2014, we will focus on the whole of the area of the bills we send to our customers with the aim of ending the year at over 50% done. We will end 2014 with all of the oc-cupational dossiers digitalised and will therefore not have any document con-cerning occupational matters that is not sharedandfiledinouroccupationalanddossier archive. We have also started to digitalisemercantilefiles.Alongsidethis,a large number of our managers already have their corresponding digital signa-ture to be able to start to close the man-agement circuit on these documents.As well as mentioning these corporate projects which are transversal in all divi-sions and form part of SERHS’s strategy, onthepagesthatfollowyoucanfindallof the projects on which our business divisions are working. Every division worksdaybydaywithaspecific focusof its own activity, reinventing ourselves and strengthening the aspects which make us more competitive and give our

customers more value. The situation of economic crisis that we have suffered in the last five years has significantlyincreased the rate of destruction of res-taurant points in the Spanish market; of-ficialfigurespoint tobetween12%and15%. This obviously has a severe effect on our Distribution division, for these are our customers. To relieve the situation, in January 2013 we brought the fresh and frozen products of the portfolio into the 6 distribution platforms Catalo-nia. From Vic, Girona, Mataró, Palafolls, Barcelona and Tarragona, customers have a wide range of over 6,000 fresh and frozen products within their reach (fish,meat,delicatessen,dairyproducts,drinks, coffee and cleaning products, and many more) through a single com-prehensive spokesperson.Also in early 2013 we merged the three companies Allelac, Costabonaser and Fruites Pàmies, into a single compa-ny, SERHS Fruits, which deals with the commercialisation of fruit and vegeta-bles in order to advance, optimise and grow by unifying processes to enhance the achievement of synergies in all man-agement areas (logistics, sales and ad-ministration) and especially in the area of purchases. We also have a new loca-tion for SERHS Fruits on three stalls of the Camp market (Reus).In June, it was agreed with Vins i Licors Grau to outsource part of our range of wines, liquors and sparkling wines.This agreement allows a larger cata-

Dear shareholders,


logue to be offered to our customers, with more than 9,000 references and a more agile service in 24 hours. Further-more, we have launched the new web-site in order to give greater visibility to promotions and offers by introducing new promotional mechanisms, discount coupons and other items. It also allows a single order to be made for different temperatures, with Web sales increased by around 20%.SERHS Tourism’s wager on standing out through products has led the division to invest heavily in destinations in Andalu-sia. In Huelva 3,000 exclusive beds have been brought in thanks to an agreement with the Asur chain. The work done in recent years in the Spanish market has allowed us to grow in a market which is clearlysufferingandforwhich theoffi-cial indicators still talk of a fall of over 20%.This year, however, we have managed to become even more consolidated in the Russian market. As well as achiev-ing a very large increase in sales and strengthening our agreement with the leading tour operators in this market, we have considerably increased our cus-tomer portfolio and now have more than 40 Russian tour operators working with us. It is precisely in order to grow in this marketthatwehavedevelopedthefirststudy on the behaviour of Russian tour-ists with Barcelona Regional Council; this work will give us all of the necessary indicators we need to be able to contin-

ue to grow in the market in which we are leaders today.In the hotel division, we must especially point to the development of our hotels in Brazil. In 2013, we closed the best year in terms of results and also in terms of customer satisfaction. This encourages us with the challenge we have in 2014 with the football World Cup being held in Brazil, where some of the games will be played in Natal. As for the domestic hotels, work has been done to consol-idate the already good evolution of the “Experience Science in the Vilars Rurals” program which we carry out with the support of the Applied Physics Depart-ment of Catalonia Polytechnic Univer-sity (UBC) and which is enjoying such great success amongst our custom-ers. It must also be said that our Hotel in Barcelona, the SERHS Rivoli Rambla, has become the first Chinese Friendlyhotel in Barcelona, in order to broach the Chinese market.In our Food division, we must congrat-ulate ourselves on the broad imple-mentation of our EUDEC food manage-mentsystem, forwhichwehavefinallyachieved a patent. We recently imple-mented the system in some centres in Vic Hospital Consortium. A new Eudec virtual store has also been launched in order to the increase the customer base of our prepared food range prod-uct. With respect to public tenders, I must highlight the adjudication of 25 schools in Sabadell, amounting to 1,400

daily menus. Furthermore in Camp Nou the sales points of the north goal have been renovated in order to improve the product display and the segmentation of the offer and thus encourage sales and reduce waiting times. SERHS Projects has launched into the virtual adven-ture by opening the store www.serhse-quipments.com with a new, previously non-existentconceptwithsignificantin-volvement on the part of hostelry equip-ment manufacturers. Although this is a project with a certain degree of maturity in the mid-term, we are already achiev-ing sales above our initial expectations.In our Services division we must stress the agreement signed with Telefónica, which not only provides us with its data network, but also allows us to share pro-jects of value for both companies. Under the same concept, we have renewed the agreement we signed three years ago with Oracle.WecontinuetowagerfirmlyonourCor-porate Social Responsibility plan, both with respect to the Occupational and Family Life Conciliation Program bring-ing in more workers every year, and on the Flexible Compensation Plan, which this year was approached by more than 600 workers, earning important advan-tages. We must not forget to mention the continuity we have given for many years to the Family Aid program, in which SERHS devotes large resources to help workers through the different stages of their children’s education.

Jordi Bagó i MonsVice-Chairman and CEO of SERHS

In SERHS we continue to wager to make innovation part of the DNA of our businesses.

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On-line sales account for 17% of orders, and nearly 20% of turnover.

They have a portfolio of 30,000 customers.

They have an average staff of 800 people.

17 stores with an area of 160.000m2

Providing customers with a total of 775 vehicles.


As an innovative way to access this strat-egy, they present a new leading portal and the integration of the cold product as part of their portfolio of services, as well as promoting the fruit and vegetables divi-sion. As one of the leaders of the Horeca channel distribution, they offer a diversi-fiedcatalogueof6,000productsatthreetemperatures (ambient, cold and frozen) to the 30,000 customers in a large geo-graphic area. The provision of the support activities of the customer businesses is a priority for the division just as it is to transmit the value of the integral service and the logistic and administrative opti-misation. STRATEGIC AGREEMENTS CACAOLAT. In July, an important collabo-ration agreement was signed in sales and distribution with one of the most symbolic brands on the market: Cacaolat i Letona, benchmarks for their quality and good flavour in the Catalan dairy industry and backed by their long tradition (since 1925).SERHS Distribution has worked with them since the company started. Grup CacaolatS.L. appeared in February 2012 as the as-sociation of two large leading drinks com-panies, Damm and Cobega.

EUROFRITS. In July too, a long-term stra-tegic agreement was reached with this frozen product manufacturer and distrib-utor in Burgos. This is the only deep fro-

zen potato factory in Spain and produc-es a volume of 40,000 tons a year. Since 2007 it has had a sales partner, the Dutch manufacturer AVIKO, which specialises in making potatoes in all versions: frozen, fresh, flakes, precooked, and is a Euro-pean leader in making and transforming potatoes. An agreement was also reached with Licors Grau for customers in the north of Catalonia. NEW INCORPORATIONSIn January 2014 an agreement was signed between Casa Salvans of Ripoll and SERHS Distribution to incorporate the trade managed by this company from the Ripollès region and which has long expe-rience and is widely renowned in the area. SERHS Distribution will therefore and above all market and distribute a large number of Coca-Cola boxes to the Gar-rotxa and Ripollès regions, thus increasing its area of action.At the end of December, SERHS Fruits signed an agreement with Fruites Montull I Fills, S.L. to bring in the fruit and vegetable distribution division. It is formed by more than 200 customers of the restaurant sector, and above all hotels and groups in Mataró, Barcelona and the Vallès area as faraslaGarriga.Thisareaofactivityfitsinperfectly with the stores of SERHS Fruits in Blanes and Ripoll.

On the web

www.serhsdistribucio.com

there are more than 3,500

registered customers who

in 2013 made purchases

for over 26 million euros.

At your service

Distribution of products at three temperatures for on-line and off-line sales

SERHS Distribution


Distribution of drinks | food |

cleaning products | fresh and frozen |

coffee | fruit and vegetables for hostelry,

restaurants and groups



SERHS Fruits has brought in the Fruites Montull distribution trade with 200 customers, above all in restaurants, in Mataró and Barcelona. New image of the widespread and renowned Cedi brand of great prestige for its value for money in the sector.



OUTSTANDING PRODUCTS AND SERVICESThis year the new image has been launched of the widespread Cedi prod-uct renowned for its value for money in the sector. A fresher and more dynamic design has been applied in the family of preserves and food which will spread throughout the range. There are a to-tal of 200 own brand items in the fam-ilies of milk, wine, coffee and cleaning, amongst others.

One of the basic premises of action this year was the integration of the cold product in the 6 distributors in Catalonia, preparing a diversified and specialisedcatalogue of frozen, refrigerated and fresh products. The geographic cover the company had up to the time with this kind of product has therefore been extended to a large number of custom-ers of the division.

The new on-line sales website started up in late October 2013. It has more than 3500 registered customers and is agreat leap inqualityover thefirstdi-vision website in 2010, and is consid-ered a 2.0 website that allows customer needs to be better managed, while of-fering all perishable and non-perisha-ble products on the same order, tech-nical sheets, billing and a new range of commercial options to offer more per-sonalised advantages and promotions. Adapted to any mobile device or tablet,

it incorporates contents for profession-als and very good attention to website incidents 24/365.

SERHS Fruits has reorganised its action by structuring and optimising the re-sources of the three stores it has in Ri-poll, Blanes and at the Mercat del Camp (Tarragona) where it has transferred its activity to a larger area better suited to market sales, as well as the manage-ment of the Horeca channel distribution. With the location of an integral fruit and vegetable supplier, it has continued to expand its first range (fresh) productportfolio, introducing Km 0, organic, pre-mium, special groups and above all ad-vancing in the latest fourth range nov-elties. The campaign of fruit distribution to schools by Afrucat was carried out less in the 2012-2013 school year and was also restarted in 2013-2014. The aim is to promote the consumption of fruit and vegetables selected according to the season of the year for proximity and quality among schoolchildren.

Important

collaboration

agreement with

Cacaolat, one of the

most symbolic brands

on the market, on

the level of sales and

distribution.

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Portfolio of 29,000 hotels in 64 countries

More than 500,000 visits to the B2B reservation portal

Average payroll of 226 people

1,900 million on-line requests with nearly 70% of reservations confirmedon-line

Giving service to more than 1.5 million tourists


OUTSTANDING PRODUCTS AND SERVICES

SERHS Tourism expands its offer of accommodation in the principal desti-nations to the detriment of low demand products. This is the case of the new in-corporation of “Premium” accommoda-tion through alliances with outstanding chains in Andalusia and Catalonia, while continuing to wager on the company’s establishments and the classical hotels in its product offer. The company now increases its volume in urban and inter-national hotels by means of agreements with independent owners and hotel dis-tributors in various locations of Europe. In this respect, destinations such as Portugal, Malta, Croatia, Italy and France must be highlighted.

DIVISION STRATEGIC PLAN

SERHS Tourism’s strategic plan, which culminates in 2014, focuses on 3 large axes:

Diversification: in relatively unstable surroundings, the division continues to expand its portfolio of customers by applying policies of intensive ad-ministrative and commercial control inordertomitigatethefinancialrisks.

Internationalisation: this wager to strengthen our international pres-ence, already a consolidated reality on the level of demand, has produced 50% growth in the provision of the division’s total sales produced in in-ternational hotels, making the offer of services available in the Mediterrane-an Arc and European capitals more attractive.

Distinction: following the established objectives, the hotel dossier is care-fully streamlined and adapted to the demand of the customer portfolio. This process seeks to balance the value proposal in terms of product, to cover present and future customers’ specialisation needs under exhaus-tivecontrolofprofitability in theop-erations.

Divisional consolidation

in the traditional markets

such as the Russian

(+18%) and Spanish

(+7.6%), in a context

ofsignificantretreatin

domestic tourism.


SERHS Tourism

On-line and off-line receiver agency and

wholesale supplier

www.serhstourism.com

2013finishedwithgooddevelopmentinthenewmarketssuchastheNordic and Portuguese while establishing the goal of enhancing the proximity markets in 2014.

SERHS Tourism and Barcelona Regional Council have drawn up the 1st Key Market Study: the habits and travel perceptions of the Russian tourist, the most in-depth study yet performed on the Russian market in Catalonia and Spain.


STRATEGIC AGREEMENTS

In 2013 strategic agreements were signed with tourist destinations, such as the one made with the government of Andalusia (Turismo Andaluz) for international mar-kets, that made with the Principality of An-dorra for the Spanish market and the one

with Barcelona Regional Council, with which it performed the 1st Key Market Study, mak-inganin-depthanalysisoftheprofileoftheRussian tourist in a study which has be-come one of the most important works on demand analysis made in Catalonia.

www.serhstourism.comwww.rhodasol.es | www.serhstravelservice.com


Receiver and B2B

Supplier of tourist

services for agencies

and tour operators for

the principle issuing

markets in the world.

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12 Hotel establishments under ownership and in management.

The team is formed by an annual average of 600 people.

5,225 beds and 1,918 rooms between domestic and international.

52 meeting and events rooms.



ABACUS: In order to expand the cus-tomer segment, a collaboration agree-ment was signed with Abacus in 2013 to reach the partners of this co-opera-tive, using its own available channels of communication.

TRIPADVISOR: SERHS Hotels wagers on direct marketing and the improvement and enhancement of establishments’ on-line reputation, which is why it has signed the contracting of the Tripadvi-sorProfilePlus for someof the hotelsof the chain. It stresses that the SERHS Natal Grand Hotel came in in 6th place amongst the best hotels for travelling with one’s family in South America, an award made each year by Tripadvisor within the framework of the Travellers’ Choice 2014 awards.

CEGOS: The division reached an agree-ment with this international consultancy toidentifyanddefineoperativeprocess-es taking place is in its hotels.

ZOPIM: An agreement with this technol-ogy company to bring in an instant chat system available to customers on the website of all the hotels.

ZOOX: In order to adapt to the needs of Brazilian customers in the SERHS Natal Grand Hotel, a strategic agreement was signed with Zoox, a company which pro-vides management solutions and Inter-net tariffs for hotel establishments.

BRITISH SUMMER: Continuing with its wager on education and training, a collaboration agreement was signed for English training in one of the Vilars Rurals under the caption of British Sum-mer.

PARTANCE: SERHS Hotels signed an agreement with this French company specialised in the MICE market for mar-keting the following establishments: Vilars Rurals, SERHS El Montanyà, SERHS Rivoli Rambla and SERHS Natal Grand Hotel in French-speaking mar-kets (France, Belgium, Switzerland and Luxembourg).

CODORNIU: An agreement was signed as the preferential drinks supplier in the SERHS Hotels’ restaurants.

CLUB SÚPER 3: Thanks to the agree-ment with Súper 3, Vilars Rurals took part in the Festa dels Súpers children’s party with several activities. The agree-ment also includes Club Súper 3 activi-ties in the Villages throughout the year.

The diversity of

the SERHS Hotels

establishments

and the division’s

specialisation in

different customer

segments (family,

corporate, holiday)

behind success of our

management model.


Moments full of life

SERHS Hotels

Vilars Rurals |

Holiday Hotels |

Snow and Mountain Resorts |

Urban Hotels |

Brazilian Beach Resorts

www.serhshotels.com

The division wagers on the growth of the company and congress and sports segment at home and abroad with its new Meeting Experience by Serhs.

SERHS Natal Grand Hotel closes its yearly sales with a record: R$ 43,560,017, 7% up on the previous year, enhancing sales in the holiday segment and on-line channels. It was 6th on the TripAdvisor ranking of the best family hotels in South America.


SERVICE ADAPTATION

Before the beginning of the season, the division created a new kind of Premium rooms at the SERHSOasis Park, standing out over the rest for their modernity and the fact of hav-ing large format LED TV, new furniture, lighting and decoration.In 2013 complete Wi-Fi coverage was given in the different hotels by strength-ening thestructure,withfibre-optic in-stallation wherever this was possible.

NEW PRODUCTS AND SERVICES

SERHS Hotels continues to wager on new technologies as a tendency in the hotel market by introducing tablet func-tional technological mobility systems in their hotels. The aim is to gain operative efficiency in managing these depart-ments, where the hotel staff are able to answer possible customer requests on site without having to go back to their workplace. In order to enhance the company, group and sports events and celebrations segment, SERHS Hotels has created a new brand, Meeting Expe-rience by Serhs.

This will help the division to ensure that the events part has its own entity and work will especially be done with 6 of its hotels, 1,000 rooms, 52 meeting rooms and sports facilities. SERHS El

Montanyà, Vilars Rurals, SERHS Rivoli Rambla and SERHS Natal Grand Hotel enable all kinds of events to be organ-ised and held in their facilities to ensure domestic and international success.

The Vilars Rurals have continued to pro-mote the thematic science weekends. Each month, Rural Village customers havebeenable tofindaspecialweek-end dedicated to Science at Cardona Rural Village. In the villages too, as well as at El Montanyà, a new marriage con-cept and product has been started up: the Weekend Wedding, in which mar-riages are made to size depending on the needs of the bride and groom, and where the principal appeal is the fact of offering a celebration throughout the whole weekend to give family and friends such a special day at the price of a reception.

It must also be mentioned that the Arnes Rural Village has created a new product intended for adults and families with children of over 12 years of age in packages help customers to discover the surroundings of the Rural Village.

www.serhshotels.com


Each month

Vilars Rurals customers

have been able

tofindaspecial

weekend devoted to

Science at Vilar Rural

de Cardona.

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>

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Own centres and more than 250 managed (hostelry and groups).

More than 600 references with the Eudec product.

The team is formed by a yearly average of 825 people, up to 1,500 at peak times.



SERHS Food set out last year on a virtu-al adventure with the new on-line store of the EUDEC product (www.eudecfood.com). The division continues to work and wager on this new sales channel, and especially on continually improving its image, functionality and expanding the range of products and references basically for the hotel, restaurant, health and education sectors, so that users are able to shop comfortably and easily. The continuous search to offer the best products and service in the world of restaurants has led the division to offer more than 400 dishes that can be made with the Eudec system to the on-line shopping system.With respect to its hospital line, SERHS Food produces new mashed referenc-es for hospitalised patients, which are characterised by their texture and visual presentation. From the hospital division, work is being done to improve patients’ meals with a mashed diet, as this is a monotonous diet not only for its texture, but also because all of the flavours are together in the same bowl.

ARCS CATERING has renewed the hospitality catering service contract for match days at FCBarcelona until 30 June 2015. At the same time, the catering service contract has been re-newed with the UEFA to give service on Champions League match days for the 2013/14 season.Moreover, ARCS Catering was a sponsor of the Asobal Handball Cup at the Palau Blaugrana held on 21 and 22 December 2013. With respect to events with large gatherings, Arcs Catering was also cho-sen for the Concert for Freedom events at Camp Nou and the concert for the Centenary of the Birth of SalvadorEspriu.Castell Jalpí has also signed a collabo-ration agreement with Cases Singulars, an institution dedicated to organising guided cultural visits open to the public in emblematic places such as the cor-poration’s majestic castle.

The FLECA SERHS, bakery, in its line to constantly improve quality and cus-tomer service and in order to be con-solidated as an integral supplier, has strengthened its portfolio and product variety with agreements with brands of renowned prestige.

SERHS Food has

achieved the patent of

the EUDEC System with

the name “Control and

Management system

for group restaurant

service and associated

procedure”.


Integral Restaurant Services

SERHS Food

Integral restaurant services for

hostelry and groups (Hotels,

Hospitals, Old people’s homes,

Social Healthcare Centres,

Restaurants, Bars and cafeterias,

Schools, Universities, Penitentiary

Centres, Company, Football

Stadiums I Leisure activities I

Catering for Events I Macro events

www.serhsfood.com

Sabadell Town Hall adjudicates the management of the restaurant service of 25 schools and introduces the EUDEC System.

Raimon Bagó, SERHS General Manager, appointed vice president of thefirstFoodserviceClusterofCatalonia,developedbytheGeneralitatgovernment.



The Government of Catalonia has en-couraged the constitution of the Food-service Cluster of Catalonia, with the leadership of ten Catalan companies of the sector as founding members, which together bring in a joint turnover of more than 3,000 million euros. One of these companies is SERHS, represented by Raimon Bagó, the corporation’s CEO, who was appointed vice president of the Cluster. This cluster wagers clearly on developing transforming projects re-lated to innovation and internationalisa-tion, and its strategic lines are intended to help associated companies in issues related to development and innovation, market awareness and tendencies, strategic reflection and improved effi-ciency in logistics operations.

NEW INCORPORATIONS AND INVESTMENTS

SERHS has achieved the patent of the EUDEC System with the name “Control and Management System for group restaurant service and associated pro-cedure”. This innovative system was developed to cover the needs and lim-itations of present management in the restaurant services in the healthcare area. SERHS has already set up the sys-tem in several hospitals to demonstrate itsefficiencyandshowhoweasyitistomanage.

www.serhsfood.comwww.serhsfoodservice.com | www.eudecfood.com | www.serhsfoodeduca.com

www.takeeateasyserhs.com | www.arcscatering.com


ARCS CATERING

Has renewed the

FCBarcelona hospitality

catering service contract

with the UEFA to give

service on Champions

League match days for

the season 2013/14.

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>

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www.serhsequipments.com on-line sale of machinery for hostelry and restaurants.

Projects for restaurants and kitchen buffet and bar equipment.

Dedicated to the hostelry, restaurant, education and healthcare sectors.


With more than 25 years of experience in projects for hostelry and restaurants, SERHS Projects has focused its busi-ness strategy on restaurant projects (basically kitchens, buffets and bars) and on the sale of equipment and ma-chinery for hostelry, restaurants and groups.

Similarly, the division continues to wa-ger on consolidating the on-line sales channel (www.serhsequipments.com) where highly competitive prices are of-fered for equipment, accessories, light-ing, furniture of the best brands on the market, so that customers can make their on-line purchases comfortably, fast and simply.

NEW ADJUDICATIONS AND RESTAURANT WORKS

In recent months, SERHS Projects has performed the comprehensive refur-bishment of the public cafeteria at Vic General Hospital, which basically con-sisted of a change of image and rein-forcing the atmosphere with fresh and renewed paintwork and signs. Similarly, this division has refurbished the kitchen of the Hospital de Santa Creu in Vic and the supply of the reheating trolleys.Also noteworthy is the continuity which the UDON Noodle bar & restaurant has demonstrated, once more placing its trust in SERHS Projects. This brand of establishments has become a leader and benchmark in the sector of casual food specialised in noodles in Spain, and continues to grow with new establish-ments. The latest: Udon Splau in Cor-nellà de Llobregat and Udon Parc Vallès in Terrassa. With these restaurants, SERHS Projects has been consolidated as the chain’s habitual supplier. UDON has recently opened the UDONya line specialised in fast food and take-away food and has also entrusted SERHS Projects with the installation of several premises of this line in Barcelona (Illa Diagonal, Las Arenas Shopping Centre and El Triangle Shopping Centre).

Thankstotheconfidence

of large manufacturers

in SERHS,

serhsequipments.com

offers highly competitive

prices for hostelry

and restaurants.


Innovative solutions

SERHS Projects

Specialists in

Food & Beverage areas

www.serhsprojects.com

Comprehensive interior refurbishment of the Gall de Bosc theme restaurant on the GrandValira ski slopes in Andorra.

Project and equipment of the kitchen of the new Giuliani’s pasta and pizza franchise in the shopping centres of Gavà Sud and Equinoccio inMadrid.


The projects include the refurbishment of the Gall de Bosc pasta theme res-taurant on the GrandValira ski slopes in Andorra. This has included the refur-bishment of the interior design and dec-oration of the dining room as well as the supply of a new free-flow. With respect to important future projects, the division has been adjudicated the performance in June 2014 of the extension of the kitchen and cold rooms of the Hotel Al-hambra in Santa Susanna (El Maresme region).SERHS Projects accompanies Urban Diner in its expansion by advising and supplying hostelry machinery equip-ment. Urban Diner is a franchise with a menu typical of the 1950s American “Diners”, with dishes based mainly on hamburgers and hot dogs made with Rational ovens. There are two in Madrid, one in Almeria and another will soon be opened on Torrevieja seafront (Ali-cante).


In the second half of 2013 the on-line sale of machinery and furniture for hostelry was consolidated through the Serhs Equipment virtual store with im-portant strategic agreements for sale and distribution with different manufac-turers.In order to move forward with the mar-keting of the E-water, the product con-cept has been renewed starting with a change of logo, new labels and acces-sories to optimise the use of the sys-tem. Work is being done above all on the complementary nature of this cleaning systemwiththeuseofmicrofibermops.The surface cleaning using microfib-er cloths and strips combined with the E-water system is very satisfactory and recommendable. The idea is that a product is marketed with all of the ac-cessories for the optimal cleaning of any surface in the establishment, and not just kitchens.

www.serhsequipments.comwww.serhsprojects.com


SERHS Projects

accompanies Urban Diner

in its expansion,

by advising and supplying

the hostelry machinery

equipment.


MEDITERRANEUM XX, S.L.The extra value of this company lies in the use of new technologies and the most modern communication systems, which has supposed an outstanding advancement in all activities carried out and which allows users to directly and efficiently manage a large number ofcomputer applications within their reach on-line. It also offers internal and exter-nal customers a quality job with highly professional specialists.

Human resourcesSERHS Human Resource Corporate Management has created its own brand: “Human SERHS Consulting” through which, with a distinct identity, since June 2012 it has begun to offer its dossier of services: salary manage-ment, legal and occupational advice, associated occupational risk prevention service, selection, training and human resource consultancy to companies outside the Group. Focused principally on the tourist, hostelry and food sec-tor, it is positioned on the market as a company specialised in Comprehensive Human Resource Services in all forms. www.humanserhs.cat.As a strategic project, we must also highlight the integration of the Human Resource part of the SERHS Food divi-sion in the specialities of training, staff administration and ORP in the Human Resource Corporate Management. The

main aim is to get the most out of all possible synergies, to accumulate ef-forts between the different divisions and departments of the group, which will un-doubtedly produce overall savings in ex-penses by using a single management system and, at the same time, unifying the two Associated Prevention services.

Administration and financeThe SERHS financial corporate man-agement is formed by different special-ised sections such as the calculation centre, tax advice, auditing, treasury and financialaggregationandconsolidation.Itsfieldofactionsurroundsallcompa-nies of the corporation. It also receives collaboration from different external ad-visers.

ASSEGURIS MEDITERRANEUM XX, CORREDORIA D’ASSEGURANCES, S.L.Set up as an insurance broker dedicated to advising on and distributing all kinds of insurance products, it deals with mar-ket leaders of the like of MAPFRE, AXA, DKV, ALLIANZ, ACE, ZURICH, VITALICIO, ARAG, FIATC, EUROPEA DE SEGUROS, MARKEL and Agrupació Mútua. This year it signed new agreements with leading companies in the insurance market (LIBERTY, NATIONAL SUISSE, REALE and CASER), in order to expand its offer.In 2013, the agreement was renewed that had been signed with AON, the lead-ing multinational supplier of risk man-

SERHS New

Technologies has

signed important

agreement with

leading companies

such as Telefónica,

Vodafone and Oracle

as technological

partners.

>

>

>

>

>

Management of + 65,000 salaries.

Specialised in hostelry courses + 500 e-learning courses.

Management of + 6,000 insurance policies.

+ 3,400 pupils a year and 38,500 reading hours.

OSHAS18001certified.ORPquality.

SERHS SERVICES


Within your reach

SERHS Services

Insurance | Administration and

Finance | New Technologies I

Computer Applications

www.serhs.com


>

>

>

>

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

More than 60 points of presence are monitored around Spain and Brazil.

The CPD houses more than 350 servers of different technologies.

Support is given to over 1,500 internal and external users.

agement, insurance and reassurance management, human resource and consultancy services. Work was also done on achieving exclusive high-qual-ity products for customers on the port-folio. Asseguriswagered on investing in training in order to professionalise the payroll particular-ly on the questions of on-line and new technologies so that they might adapt to the new demands of modern consum-ers. With respect to new products and services, exclusive products have been marketed in the area of the Maresme re-gion through the mentioned agreement with AON.

SERHS NEW TECHNOLOGIES

MIGJORNSER, SL

Strategic AgreementsIn the last year, a framework collabora-tion agreement as technology partners was signed with Telefònica for the com-ing 3 years, which includes landline te-lephony, the data network and Internet. With respect to mobile telephony, they continue to turn to Vodafone, renewing a collaboration which has now lasted more than 15 years.The agreement was also renewed with Google to continue using the collabo-ration and electronic mail suite (Google Apps), of which they were the pioneer-ing installation in the Spanish state now

over 6 years ago.Equally, they continue to commis-sion Ricoh with the management of all of the printers and the Documentary Management project, just as they have done in the last 6 years. This year too, SERHS New Technologies renewed the agreement with Oracle. Since the firstagreement, which was signed in Febru-ary 2011, SERHS and Oracle have been technology partners and this renewal is intended to intensify still further a rela-tionship already consolidated with this sector leader.

New Products and ServicesAs a new development and aimed at small and medium-sized companies outside SERHS, this year the private area of the www.migjornser.com web-site has started up, the channel through which the management of the products and services that customers trust is to be facilitated. The services offered are: Google Apps (cloud collaboration tools) and integral mobile telephony solutions. Furthermore two new services have been brought in which are expected to give customers added value:

web positioning through an agree-ment with a collaborating company specialised in this area; the aim is to be capable of giving a good service at competitive prices.

WiFi package for hotels. After one year of testing in different types of hotels, Migjornser is ready to spread this product with a full service guar-antee and a high degree of quality giving great satisfaction to the es-tablishment and to its hosts.

VECTOR-K, S.A.

The basic products offered are Guest (integral hotel management), Bistrot (management of bars, restaurants, discotheques, etc.) and the Webguest-Hotel, which allows the on-line sale of bookings from the hotel website itself.On-line sales enabled a turnover of more than€4millionin2013,averygoodfig-ure bearing in mind the fall in sales that mountain hotels are currently suffering. A new version of Bistro has been put on sale which is entirely functional for tab-lets with Windows 8 and Epson cordless printers may also be added as an option. A new version has also been created of the tourist tax for touch screens. This new version allows the new tourist tax to be managed easily and intuitively both in receipt and in payment. It also highlights the creation of sale point ter-minals intended for hotel receptions due to matters of upselling, loyalty gaining and deposits, amongst other things.

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


Human resourcesThe SERHS Corporate Management includes all of the necessary specialities to give a complete human resource management service:

• Staff Administration• Selection, Training and Development in Human Resources• Labour Relations• Occupational Risk Prevention


“


STAFF ADMINISTRATION

Advice and management in occupational processes to a team ofspecialisedprofessionals.ThisdepartmentwagersfirmlyonInternet portals while applying the continuous improvement of its services in order to offer SERHS companies and external customers an ever more effective service.

The https://portal.serhs.com/rrhh portal is used as a means of communication between the company and its occupational ad-viser. It 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 pointintheworld,andguaranteeingtherequiredconfidentialityand maximum security.

Assignificantdata,thestaffadministrationdepartmentin2013dealt with a total of 65,240 salaries. Let us remember that this department started up and implemented a key project in all companies of the group, a project which dates back to 2010; the Flexible Compensation Plan. The products which have been offered are: SERHS Shares, Health insurance, Restaurant card, Nursery and Training. In 2013, the project received a total of 660 product purchase requests.

Products of the Flexible Compensation Plan

Medical insurance. 71%

Restaurant card. 1%

Nursery. 5%

Training. 8%

Shares. 15%

PRESENCE

2013 was also the year in which a new strategic project began for the Human Resources Development Department: the imple-mentation of a new Presence Management System at the hand of the partnerSoftmachine. From the Corporate Management, a policy has been established with regard to this area, which will be applied across the whole of SERHS. This new system (hardware and software) has already begun to be implemented in some SERHS companies,specificallyinthedivisionsofServices,Foodand Distribution.

The advantage of this new system lies principally in the fact that all workers have a portal through which they can consult and manage their own time and ask for leave of absence and holi-days. The whole of the system is linked through a workflow that will facilitate the validation of these aspects and the reception of information in real time from any place and at all times.

“

Human Resources


TRAINING

In 2013, an investment was made of more than €275,000 in training throughout all of the companies of the corporation. A total of 430 training groups were formed including 2,907 partici-pants, giving a total of more than 32,000 hours of training.

This year, the new collaboration agreement with E-doceo Spain takes the lead. Through this agreement, SERHS has a new, much more agile and intuitive LMS e-learning platform giving access to a catalogue of over 500 e-learning courses in differ-entareas:salesskills,finance,officeIT,Internetandbasictools,languages, management skills and quality, and many more, and evenuniversitycertificationcourses.SERHSusedthisplatformto train more than 58% of its students in 2013.

The graph shows the subjects in which SERHS staff were trained in 2013.

As for external customers, the training department managed more than 35 training groups with a total of 533 students, amounting to 6,500 training hours and billing €34,000.

RSC, CALIDAD Y MEDIO AMBIENTE; 376

OFIMÁTICA; 75

IDIOMAS; 21

HABILIDADES; 416

FINANZAS; 38

ESPECÍFICA DIVISIÓN; 323

COMERCIAL Y MARKETING; 128

PRL; 1530

OCCUPATIONAL RISK PREVENTION

With respect to the SERHS Associated Prevention Service, the important events are the following:

Merger of the Associated Prevention Service In May the Associated Prevention Service of the SERHS

Food Area was merged with the SERHS Associated Preven-tion Service, thereby integrating the ORP management sys-tem in SERHS, and optimising all resources there for, while becomingmuchmoreefficient.

Commercial agreement with the company Einber Sistemas de Gestión S.L. in setting up comprehensive risk prevention management software.

In July, the SERHS Associated Prevention Service signed a com-mercial agreement with the company EINBER SISTEMAS DE GESTIÓN S.L. for the implementation of ORP integral software in all of the companies of the group to cover and give service in risk prevention management and also in coordinating the busi-ness activities.

The agreement between EINBER and SERHS goes much further than the simple purchase of the module of business activity coordination which the former company already had. Together they are designing and creating new modules for this software to become a comprehensive management product in prevent-ing occupational risks. This development will be carried out throughout 2014.

OHSAS 18001 Certification

In September, all of the companies adhered to the SERHS Asso-ciatedPreventionServiceachievedOHSAS18001certification.This certificateaccredits thequality of theORPmanagementsystem compatible with the ISO 9001 (Quality) and 14001 (En-vironment) standards.

ACCIDENT RATE 2013

The overall accident rate of the SERHS companies rose 0.97% in comparison with 2012. It must be said that all of the accidents were light. This increased accident rate was principally due to tworeasons:0.38%ofthecasesweredueto“trafficaccidentsen route” and/or travelling to customer centres. Obviously in thesecasesit isverydifficultforcompaniestoprevent/actasthis is beyond the activity of the company itself.Thesecondreason,specificallyapplicableto0.59%ofcases,isrelated to the workplace itself. All of these accidents happened in centres which have been granted to SERHS and in which the state of the facilities and/or conditions are beyond the power of SERHS.

Comparative SERHS accident rate 2012 vs 2013

Evolution of SERHS accident rate 2008 - 2013

In the last 5 years since 2008, the accident rate has been con-siderably reduced, maintaining an average of 5.75% in the last four years.


ACC. IN TRAFFIC OR DISTR. ACC. IN THE WORKPLACE

1,70%

3,25%2,09%

3,86%

2012 2013

5,92%

7,35%

4,95%

8,97%

6,50%

5,72%

2013

2012

2010

2008

2009

2011

SERHS


Real EstateThis business division has the function of seeking the greatest possible output from SERHS assets. Structured within the company Kimburu, S.L., it focuses its actions on renting facilities and pur-chase and sale, or developing certain actions on both urban and industrial lands.

Equity and PortfolioAs a business Corporation, Grup SERHS S.A. has a significant portfolio of se-curities and, at the same time, is the owner of a series of buildings. Through its security portfolio, it directly or indi-rectly plays a dominant role in all of the group companies.

These management actions led by the group’s general management are formed by companies engaged in the administration and ownership of proper-ties, land, securities and facilities, form-ing a series of goods resulting from the corporation’s business. SERHS’s strate-gic axes pass through the strengthening and future viability of all of the compa-nies that form it, which have a global fo-cus to allow them to successfully deal with the critical factors of competitive-ness by consolidating and creating new business opportunities in all areas of action.


Related CompaniesSERHS S/COOP. C. Ltda.

Its initial impulse and its will to cooper-ate and associate in the service of peo-ple have enabled it to develop an intense social activity. From its good start now 39 years ago, its sense of belonging, mutual confidence and its will to im-prove lead the deployment of many initi-atives around the company, which have facilitated the achievement of what to-day is known as SERHS.

Associated companiesUNIVERSITY SCHOOL OF HOSTELRY AND TOURISM OF SANT POL DE MARThe EUHT de Sant Pol de Mar is and has become the receiver of the group’s busi-ness baggage, which has provided it with updated knowledge at the forefront of the sector. This means that the group isable tobenefit fromthesupportandbaggage of technical knowledge and experiences which can only be provided byacertifiedUniversityCentrewhichisa benchmark in the country and enjoys international prestige. The school has received institutional recognition both in Spain and Catalonia and on the sector level, and has been distinguished with the “Placa d’Or al Mèrit Turístic” [Gold Plate for Tourist Merit] and the “Placad’Honor del Turisme de Catalunya” [Plate of Honour of Turisme de Catalun-ya], amongst other awards. It belongs to the exclusive “Hotel Schools of Distinc-tion” network and is the only member of this prestigious association of hotel schools in the south of Europe.

PUBLINTUR, S.A.

Devoted to image and communication and to graphic and digital production, this company maintains a close and in-tense relationship and bond with SERHS and this year has increased its action in the field of on-line marketing in orderto offer and help to implement strate-gies with its customers which are liable to improve its presence on the Internet tomake itaprofitable resource for thecompany. Altogether, activities which have produced strong business syner-gies and encouraged intense and close quality relationships. In 2013, PUBLIN-TUR celebrated its 30th anniversary by promotingdifferentprojects inthefieldof advice and attention to holiday cus-tomers, on-line communication and cul-turalequipment.Itisinthisfieldwhere,along with Calella Town Hall (Maresme region) it has become the promoter of the creation of the “Tourism Museum” project, a unique project of universal vo-cation which has received the support of the Catalan public administration and of the World Tourism Organisation, a body dependent on the United Nations, and of the different segments of tourist activity at home.

Corporate Social Responsibility


“

“


OCCUPATIONAL AND FAMILY LIFE CONCILIATION POLICY

In 2013 a total of 797 applications were made, and more than 25% of the payroll asked for some measure of conciliation throughout the year, which is a considerable increase over the year before (7%).

Percentage asking for some measure of conciliation, compar-ison January-December 2012-2013

As for the hours awarded, in 2013 these were 2,685:

16,1

9% 26,4

1%

25,2

7%

29,2

7%

11,8

3% 17,7

3%

67,7

8%

38,4

6%

42,8

6%

39,7

7%

64,8

9%

SERH

S DI

STRI

BUTI

ON

SERH

S TO

URIS

M

SERH

S HO

TELS

SERH

S FO

OD

SERH

S SE

RVIC

ES

TOTA

L GR

UP S

ERHS

18,7

4%

DOCTOR

ILLNESS

OPERATION WITHOUT HOSPITALISATION

PUBLIC ADMINISTRATION PROCESSES

CHILD’S MEETING

EXAMINATION

FUNERAL

OTHERS

CHILD’S BIRTHDAY

EXTENSION OF LEAVE FOR FAMILY CARE

ONE-WEEK EXTENSION OF THE MATERNITY/PATERNITY LEAVE

COMPACTING AND REDUCING THE WORKING DAY BY 1 HOUR

4 WEEKS AHEAD OF THE BIRTH, WORKING 75% OF THE DAY

961,5

4

11,5

32

57

40

16

164,5

177,5

185

340

514

186

Hours available. 82%

Leave. 4%

Child’s birthday. 3%

Change of working day. 11%

FAMILIES PROGRAM

Each year, SERHS starts up the Family Aid program, which cov-ers subsidies for workers with children of school age. The pro-gram includes 4 kinds of aid:

Welcome Baby: SERHS welcomes new-borns with a courtesy specially prepared for celebrating this happy event.

Nursery: This is a subsidy for workers who have children under 3 years of age enrolled in nurseries.

School material: Aid for school material for workers with three or more children in prep school, primary, secondary, baccalau-reate or medium grade training cycles (children between 3 and 17 years of age).

University Grants/higher grade training cycles: This proposal is intended to award grants to workers’ children studying a uni-versity degree or in higher grade training cycles.

AID AWARDED

Corporate Social Responsibility

2009

283 281

253

288 295

2010 2011 2012 2013

60 5150

61

65

69

136164 178

160

153

1413

17

54

22

15

17

Welcome Baby School material Grants Nursery


4949

SERHS MANAGES THROUGH TALENT

In the last quarter of 2013, the 7th edition of the Management Develop-mentPlanwasstarted.18participantshavealreadyfinishedtheproject,38 are on the way and 11 will be incorporated in the coming editions.

DOCUMENTARY MANAGEMENT PLAN

At the end of the phase for implementing electronic billing, a second stage has been started in which work is being done to further automate the invoice approval circuit. Along the same line, we must highlight the bill issuing process, which has also been electronic since the middle of 2013, thuspromotingthegoalofachievinganofficewithoutpapers.In the last quarter, the occupational dossier has begun to be implemented, and all of the dossiers opened in 2013 have started to be put into digi-tal format. Alongside this, tests have been carried out with the electronic signature to enable this project to be developed and the projects on mer-cantile documentation to be started. The aim is to have all documentation produced from now on in digital format, offloading the paper from our officesandspeedingupthesigningandfilingprocesses.


COMPANY VALUES FINANCE FOR NON FINANCIERS

SKILLS DEVELOPMENT FOR TEAM

MANAGEMENT

PROCESS IMPROVEMENT COACHING FINAL WORK

EDITION 1

EDITION 2

EDITION 3

EDITION 4

EDITION 5

EDITION 6

EDITION 7

EDITION 8

FINISHED

START MAY 2014

FINISHED

FINISHED

WORK PENDING

DOING COACHING

DIVISION

2011 2012 2013

PAPER ORIGIN

ELECTRONIC ORIGIN (VOXEL)

PAPER ORIGIN

ELECTRONIC ORIGIN

(VOXEL, BSF, SERÉS)

PAPER ORIGIN

ELECTRONIC ORIGIN

(VOXEL, BSF, SERÉS)

SERHS TOURISM (Start August 2011) 79.754 105.325 103.787 279.974 88.654 372.745

SERHS SERVICES (Start March 2012) - - 5.225 663 7.875 2.341

SERHS HOTELS (Start June 2012) - - 1.662 295 4.287 2.990

SERHS DISTRIBUTION (Start September 2012) - - 4.074 6.247 33.968 54.973

SERHS FOOD (Start January 2013) - - - - 14.157 2.570

DIGITALISED DOSSIERS 1,000 1.000

Social Area


VICENTE FERRER FOUNDATION

The foundation has received the collab-oration of SERHS for many years. This year the project consists of building a primary education Centre for 40 chil-dren with intellectual disability in the city of Kanekal, in Anantapur.

ÒMNIUM CULTURAL

SERHS has renewed the collaboration agreement with Òmnium Cultural to promote our language and the Catalan culture.

CÁRITAS AND FUNDACIÓN REIR

For the fifth consecutive year and topromote volunteer forces, SERHS has started up the “GIVE FOOD, SCHOOL MATERIAL OR TOYS AND FEED JOY” campaign. Once more this year, the aim was to voluntarily collaborate in donat-ing all of these elements to be hand-ed out amongst the most disfavoured groups and to play an active role in feed-ing, mainly with Cáritas, and to a small-er extent with toys with the Fundación Reir. These entities made a contribution of 4,000kg of food and 300 toys.

Supportive agreements

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XXXVII SERHS EVENING

ThisisanemblematiccelebrationheldsincethefirstyearofSERHS’s existence around a gala dinner with the sharehold-ers,collaboratorsandfiguresfromtheeconomic,institutionaland social world. On 27 June 2013, the 37th SERHS evening washeld in theCastellJalpí.For thefirst time, theMinisterfor Enterprise and Occupation of the Government of Catalo-nia, Mr. Felip Puig, was the guest of honour at the meeting. The event brought together more than 300 guests between shareholders, collaborators, figures and friends of the cor-poration. The institutional event was also used to give the SERHS awards to the “Manager of the year”, which in 2013 went to Mr. Marc Serra, Manager of Telecommunications and Business Solutions of SERHS New Technologies; and the award to the “Distinguished worker”, which went to Mrs. Mar-garita Manzano, General Management Secretary and Head of Centralised Treasury in SERHS. These people were chosen from among the personnel of all of the companies forming the group. The award to a company for its “Development and commitment to SERHS” this time went to Vodafone.

FAMILY PARTY 2013

Foroneday,BarcelonaZoowasfilledwithnearly350peoplefrom among the SERHS workers and families as part of the FamilyDaycelebration,whichforthefirsttimewasheldinthisso emblematic park in Barcelona. The event began with the awarding of the aid for the “Families Program 2013”, to work-ers of SERHS. The families were then able to enjoy a day out at the zoo, including a dolphin show. SERHS Food has managed the restaurant points in the zoo since November 2012. Mr. Ra-mon Bagó, SERHS Chairman, awarded the different aid, which this year amounted to €50,000 spread between allowances covering three kinds of aid: nurseries, school material and university grants, apart from the gift given to all workers when they become parents, as part of the Welcome Baby campaign.

Emblematic events

Environment


SERHS DISTRIBUTIONAll of the companies of the division manage the waste they produce (mainly plastic, cardboard and organic product) through authorised waste managers. In theareaofcertifications,Cediserhs,S.L.has ISO 9001 quality certification andSERHS Distribution intends to have all of the companies of the division certi-fied.AllSERHSDistributioncompanieshave a vehicle maintenance program for both their own vehicles and those sub-contracted. Different measures have been taken to help to reduce CO2 emis-sions, especially including the strategy to reduce travel and the progressive im-provement of transport vehicles.Cediserhs Tarragona has completely renewed its store with 13 condenser ap-paratuses and 4 compressors. As a re-sultofthedifferentmodifications,allre-frigerating apparatuses are loaded with R – 507 and R – 404a. These gases all produce very little toxicity despite long exposure periods.SERHS Distribution has a fleet of some 30 vehicles with regulated temperature distributed throughout the different companies of the division. These ve-hicles meet all established standards with regard to refrigerating gases. They use R – 404a and R – 134a and none of them contain chlorine.SERHS Distribution has a person re-sponsible for Quality and the Environ-

mentwholeadsanddefinestheprocessinvolved in reducing the environmental impact of the waste produced by the distribution activity.The distributors have a Code of Good Environmental Practices integrated by a series of actions in order to improve the company’s environmental behaviour. It also has collaboration alliances for promoting these good environmental practices.

SERHS TOURISMAs part of the SERHS documentary dig-italisation plan, the tourism division is taking a large step forward in electronic billing in order to avoid paper invoices. The aim to reach 100% of the hotel dis-tribution industry is a complex matter, but the levels in 2013 already exceed 85%.Similarly, other elements such as certain contracts or occupational dossiers have been managed entirely digitally in 2013.

SERHS HOTELSThe hotels division has implemented the cleaning system using E-water technol-ogy, which cleans and disinfects by us-ing water without any need for chemical or aggressive substances. A biomass boiler has been installed in SERHS El Montanyà in the place of the former propane boilers, giving considerable economic savings and reducing CO2

emissions; it is expected to be started up in March 2014. Efficiency studieshave begun to be made by a specialised company in order to reach a long-term collaboration agreement with regard to installations and management in the Vilars Rurals. Work is underway on the gradual replacement of high consump-tion lighting for LED technology. Finally the planned replacement of taps in the SERHS Sorra Daurada and the SERHS Oasis Park to improve saving has been carried out.

SERHS FOODSERHS Food guarantees maximum safety and hygiene in food. The dishes are produced under rigorous dietetic control according to the strictest Food Safety and Hygiene regulations. Simi-larly, we have our own quality controls certified according to ISO 9001:2008Quality Management System, ISO 22000:2005 Food Innocuousness Man-agement System and Environmental ManagementcertifiedaccordingtoISO14001:2004. the division also has ISO 9001certificationinitsVilassarfactoryand ISO 14001 for the Eudec System in Calella Hospital.

SERHS PROJECTSPrincipally with the marketing of the e-water, customers are informed and become aware of the environmental

Environmental aspects

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


care taken in purchasing the product. This is a cleaning and disinfection sys-tem which does not use chemical prod-ucts and furthermore, the use of this ap-paratus produces considerable savings not only in cleaning products, but also in water, for there is no need to rinse after the disinfection.

SERHS SERVICES AND NEW TECHNOLOGIESThese divisions promote the recycling of printer paper, cartridges and toners (the recycling process is established in SERHS’s agreement with Ricoh). Cen-tralised recycling is applied to any elec-tronic equipment from all of the SERHS companies, either in collaboration with NGOs or taking the material straight to approved disposal units. Both the SERHS New Technologies offices and the DataProcess Centre have rooms fitted outwith air-conditioning and heating pro-grammed to guarantee the right temper-ature, but also to assure energy savings whenever this is possible (energy con-sumption is optimised). The fact of inter-vening in automation/domestic robotic projects means that the SERHS New Technologies division helps the remain-ing companies of the group to improve their energy efficiency and therefore tooptimise their energy consumption.With respect to introducing technology tohelp toachieve thegoalofan“Office

without papers”, multifunctional devices are used as well as on-line collaboration tools (Google Apps) and electronic billing, documentary management, electronic signature and the digitalisation of occu-pational and mercantile dossiers are also brought into operation.

Economic-Financial Information


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Presentation

Thiseconomicandfinancial informationcorrespondingtothefinancial year closedat 31August 2013,whichweprovide inthe following, has been prepared from the accounts registers of Grup SERHS, S.A. and its the subsidiaries in order to demon-stratethetrueandfairimageoftheequity,thefinancialsituationand the result of the Consolidated Group.

These consolidated figures are backed by the auditing of thecompany Faura-Casas Auditors-Consultors and, as can be seen from their opinion attached below, the annual accounts forthefinancialyear2013reflectthetrueandfairimageoftheconsolidatedequityandtheconsolidatedfinancialsituationofSERHS and its subsidiaries, and the results of their operations.

Inthisdossieryoucanfind:

CONSOLIDATED ANNUAL ACCOUNTS OF THE GROUP

Financial statements (Balance Sheet and Income Statement) Auditors’ report

CONSOLIDATED INFORMATION

Different analyses of important aspect of the economic and financialsituation

IMPORTANT: The General Assembly of 7 October 2013 ap-provedthecompanychangingthecloseofthefinancialyearto31 August, given the seasonal nature of our businesses. It is for thisreasonthat,inrelationtothefigureswhicharecompared,those indicated as 31/08/2013 correspond to a period of only eightmonths,whereasthosefrom2012comefromafullfinan-cial year starting on 01/01/2012 and ending on 31/12/2012.

For the effects of drawing up the Annual Accounts of GRUP SER-HS, S.A. and its subsidiaries (Consolidated Group), we must re-member that the group is formed by 59 active companies and, grouped into operative business divisions, has the following com-position:

SERHS DISTRIBUTION 11 Companies SERHS TOURISM 2 Companies SERHS HOTELS 12 Companies SERHS FOOD & PROJECTS 11 Companies SERHS SERVICES AND NEW TECHNOLOGIES 8 Companies SERHS REAL ESTATE 6 Companies SERHS EQUITY AND PORTFOLIO 9 Companies

In the year 2013, there was no variation in the number of compa-nies forming part of the consolidation perimeter, which remained at 59. However, there were movements between the different divi-sions caused by the process of rationalising the number of com-panies belonging to each division, and also due to the increased business in some divisions.

In application of current regulations as a result of the different participation percentages in the companies forming the consol-idation perimeter, different consolidation procedures were used this year, which were:

• GLOBAL INTEGRATION method (Companies with a participation of over 50%).Companies consolidated by this method in 2013: “Viatges Sol i Esquí, SA” (travel agency), and “Baciverser, S.L.” (real estate company)

• PLACEMENT IN EQUIVALENCE method (Companies with a participation of between 20% and 50%)Companies consolidated by this method in 2013: “Viatges Sol i Esquí, SA” (travel agency), and “Baciverser, S.L.” (real estate com-pany)

The Group’s functional currency is the euro. Given the group’s internationalisation in recent years, it now includes Brazilian and Moroccan companies in the consolidation perimeter and the transactions with foreign customers and suppliers using curren-cies outside the euro have increased. This means that our Group is currently working with four kinds of different currencies:

• Euros (EUR). - The principal working currency of our compa-nies.

• Dólares (USD). - The currency of certain operations with countries outside the EU.

• Reales Brasileños (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 principles makes the consolidation process more complexas thefinancialstatementshave tobeconverted intoa currency other than that of the Group, which is the euro, which can cause conversion differences on the level of equity and on that of the results of the year due to exchange differences in the operations.

Since 2010, the SERHS Group has paid tax under the system of fiscalconsolidation,with40subsidiariescomingintotheconsol-idation perimeter in 2013.

SERHS consolidated annual accounts



AUDITORS’ REPORT ON THE CONSOLIDATED ANNUAL ACCOUNTS

To the Shareholders of the GRUP SERHS S.A.

We have audited the consolidated annual accounts of Grup Serhs S.A. and subsidiaries (Consolidated Group), whichincludetheconsolidatedbalancesheetat31August2013,theconsolidatedprofitandlosssheet,thechanges to the consolidated net equity, the consolidated cash flow and the consolidated report corresponding tothefinancialyearendingonthisdate.Theadministratorsofthedominantcompanyareresponsiblefordrawinguptheconsolidatedannualaccountsaccordingtotheregulationsoffinancialinformationapplicabletotheinstitution,whichareidentifiedinnote2oftheattachedreport,andparticularlytheaccountingprinciplesand criteria contained there. Our responsibility is to give an opinion on the mentioned consolidated annual ac-counts as a whole based on the work done in accordance with the regulations governing the account auditing activity in Spain, which requires the examination by selective tests of the evidence justifying the consolidated annual accounts and the evaluation of their presentation, the principles and criteria used and estimates made accordingtotheapplicableregulationsonfinancialinformation.

Inouropiniontheattachedconsolidatedaccountsfortheyearendingat31August2013, inallsignificantaspects,reflectthetrueandfairimageoftheconsolidatedwealthandconsolidatedfinancialsituationofGrupSerhs S.A. and subsidiaries at 31 August 2013, and the consolidated results of their operations and cash flows correspondingtotheyearendingonthisdate,accordingtotheapplicableregulationsoffinancialinformationand particularly the accounting principles and criteria contained there.

Without this affecting our opinion, we must mention what is indicated in note 2.4 of the report, where it is reportedthattheGeneralAssemblyofShareholdersagreedonthechangeofthedateonwhichthefinancialyearisclosed,whichwillnowbe31August,whichmustbeconsideredfortheeffectsofcomparingfinancialyears.

The attached management report closed at 31 August 2013 contains the explanations that the administrators consider appropriate on the situation of the consolidated group, the evolution of their business and other matters, and does not form an integral part of the consolidated annual accounts. We have checked that the accounts information contained in the mentioned consolidated management report coincides with that of the annualaccountsforthefinancialyearendingat31August2013.Ourworkasauditorsislimitedtocheckingthe consolidated management report with the scope mentioned in this paragraph and does not include the revision of information other than that obtained from the accounting registers of Grup Serhs S.A. and subsid-iaries.

Barcelona, 18 December 2013

Consolidated Balance Sheet


ASSETS 31-08-2013 31-12-2012

A) NON-WORKING ASSETS 177.963.253,35 200.608.712,57 I.Intangiblefixedassets 18.018.814,21 17.822.329,27 II.Tangiblefixedassets 125.595.833,22 149.903.517,65 III. Real estate investments 5.075.280,85 2.469.742,42 IV. Long-term investments in group and associated companies 571.017,05 576.625,29 V.Long-termfinancialinvestments 7.563.046,16 8.167.752,85

VI. Assets due to deferred tax 10.218.873,46 10.749.356,69

VII. Consolidation Goodwill 10.919.388,40 10.919.388,40

B) WORKING ASSETS 160.700.301,01 99.573.677,19

I. Non-working assets held for sale 24.971.413,47 5.224.350,00

II. Stocks 20.485.763,06 21.163.852,29 III. Commercial debtors and other accounts receivable 84.862.223,13 52.648.424,24 IV. Short-term investments in group and associated companies 0,00 0,00 V.Short-termfinancialinvestments 6.791.074,16 9.256.573,87 VI. Short-term deferrals 1.961.156,45 1.259.296,76 VII. Cash and other equivalent liquid assets 21.628.670,74 10.021.180,03

TOTAL ASSETS (A+B) 338.662.554,36 300.182.389.76

LIABILITIES 31-08-2013 31-12-2012

A) NET WEALTH 83.978.273,85 89.357.767,10

A-1) Stockholders’ equity 86.444.167,70 87.112.607,85

A-2) Value change adjustments -9.430.069,24 -5.030.881,31 A-3) Subsidies, donations and legacies received 0,00 0,00 A-4) Minority interests 6.964.175,39 7.276.040,56

B) NON-WORKING LIABILITIES 95.400.894,15 111.562.877,03 I. Long-term provisions 0,00 0,00 II. Long-term debts 94.687.051,31 110.608.603,29 III. Long-term debts with group and associated companies 0,00 0,00 IV. Deferred tax liabilities 713.842,84 954.273,74 V. Long-term deferrals 0,00 0,00

C) WORKING LIABILITIES 159.283.386,36 99.261.745,63 I. Liabilities related to non-working assets held for sale 0,00 0,00 II. Short-term provisions 0,00 0,00 III. Short-term debts 27.953.694,20 48.695.348,57

IV. Short-term debts with group and associated companies 0,00 0,00

V. Commercial creditors and other accounts payable 131.138.944,33 50.373.152,69

VI. Short-term deferrals 190.747,83 193.244,37

VII. Short-term debt of special characteristics 0,00 0,00

TOTAL NET WEALTH AND LIABILITIES (A+B+C) 338.662.554,36 300.182.389,76Data are expressed in euros.

Consolidated Profit and Loss Account


31-08-2013 31-12-2012

ON-GOING OPERATIONS

Operation revenue 345.307.226,52 465.394.646,25

a) Net turnover 331.533.434,36 435.849.909,72

a1) Sales 292.033.411,31 388.713.442,86

a2) Services 39.500.023,05 47.136.486,86

b) Other operation revenue 13.773.792,16 29.544.736,53

b1) Accessory revenue from operation 12.514.682,41 26.318.490,46

b2) Subsidies 0,00 0,00

b3)Jobsforownfixedassets 1.259.109,75 3.226.246,07

Supplies -249.857.454,06 -331.930.489,31

a) Goods consumption -249.764.556,43 -331.389.050,77

c) Work done by other companies -92.897,63 -541.438,54

Staff expenditure -50.743.961,34 -76.429.595,96

a) Wages, salaries and similar -39.726.121,62 -60.396.666,86

b) Social charges -11.017.839,72 -16.032.929,10

Other operation expenditure -29.170.751,66 -39.084.108,00

a) External services -25.539.120,21 -33.322.297,35

b) Taxes -2.754.505,35 -3.809.861,42

c) Losses, damage and variation of provisions for commercial operations -863.447,59 -702.657,83

d) Other ordinary management expenses -13.678,51 -1.249.291,40

Fixed asset redemption -7.070.649,10 -10.518.582,36

Provision surpluses 0,00 0,00

Damage and result due to fixed assets sell-off -49.916,86 57.375,85

OPERATION RESULT 8.414.493,50 7.489.246,47

Financial revenue 361.609,10 2.830.257,56

Financial expenditure -4.422.822,63 -7.601.538,16

FINANCIAL RESULT -4.061.213,53 -4.771.280,60

Participation in profits (losses) of companies placed in equivalence 0,00 0,00

PRE-TAX RESULT 4.353.279,97 2.717.965,87

Profit tax -1.352.665,76 -338.986,68

RESULT OF THE YEAR FROM ON-GOING OPERATIONS 3.000.614,21 2.378.979,19

INTERRUPTED OPERATIONS 0,00 0,00

YEAR RESULT 3.000.614,21 2.378.979,19

Data are expressed in euros.

The present circumstances in our surroundings makes us cau-tious when investing, without stopping the investments we be-lieve essential for future growth of our business. The volume of investments made by SERHS in 2013 was an overall amount of around 3.4 million euros, mainly in the current investments: new technologies (management applications of our businesses), vehicle fleet renewal, computer equipment, improvement of the hotel facilities and stores, and others.

Analysingtheinvestmentactivityofthe2013financialyearbygroup operative divisions, this breaks down as follows:

INVESTMENT 2013 BY DIVISIONS (Thousands of €)

SERHS DISTRIBUTION 776,00 SERHS TOURISM 783,00 SERHS HOTELS 933,00 SERHS FOOD & PROJECTS 735,00 SERHS SERVICES, REAL ESTATE AND PORTFOLIO 165,00

TOTAL 3.392,00

INVERSION 2013

Investment activity


22,88%

SERHS DISTRIBUTION SERHS TOURISM SERHS HOTELS SERHS FOOD & PROJECTS SERHS SERVICES, REAL ESTATE AND PORTFOLIO

27,51%21,67%

4,86%

23,08%

Theconsolidated revenue from theoperation for thefinancialyear closing at 31 August 2013 supposed an increase of 2.01% over the same eight-month period (January-August) in 2012, which we believe to be satisfactory given the circumstances occurring this year and the crisis situation in which we are im-mersed.

This operation revenue is broken down below, between the dif-ferent divisions of the group:

División 31/08/2013 31/08/2012

SERHS DISTRIBUTION 117.493 120.415 SERHS TOURISM 171.723 162.219 SERHS HOTELS 21.092 18.971 SERHS FOOD & PROJECTS 32.406 32.986 OTHERS (Services and Equity) 2.593 3.913

TOTAL 345.307 338.504

Data expressed in thousands of euros.

The weight of each of the divisions in the whole of the group’s consolidated revenue is given below.

OPERATION REVENUE BY DIVISIONS

Operation revenue


49,73%

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

0,75%

9,38%

6,11 % 34,03%

We must insist once more on the importance of the SERHS team, for as a result of their active participation and their daily work, we are able to con-tinue improving our products and services, and to maintain our leading po-sition. The evolution of the payroll in recent years, taking the eight-month period from January to August, has been:

PERIOD Average Payroll

January-August 2010 2.636




The contribution to national income, which is understood as a prosperity indicator not only of the people of the group but generally of our country, has always been a priority point of attention for the group. In recent years, this contribution has evolved as follows:

YEAR Thousands of euros

2008 95,69

2009 88,38

2010 88,90

2011 88,60

2012 82,96

2013 (January-August) 57,85

The following table shows the evolution of both the Results and the Cash flowandEBITDAofthefinancialyear2013withrespecttotheyearbefore(taking eight-month periods to make the comparison).

Years 31/08/2013 31/08/2012

EBITDA 15.485 13.082

Extraordinary results 0 0

Ordinary gross result 15.485 13.082

Amortisation -7.071 -7.482

Operation result 8.414 5.600

Financial -4.061 -4.017

Pre-tax profit 4.353 1.583

Amortisation 7.071 7.482

Cash flow 11.424 9.065

Consolidated information


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SERHS ANNUAL REPORT 2013

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