CSR Report 2012 Dallant

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TABLE OF CONTENTS

STRATEGY AND ANALYSIS 3

REPORT PROFILE 4

SCOPE AND COVERAGE OF THE REPORT 5

DALLANT AT A GLANCE 6

HISTORICAL BACKGROUND 8

RESULTS AND HIGHLIGHTED FIGURES 2012 10

FUTURE CHALLENGES 11

OUR MODEL OF SUSTAINABILITY 13

IDENTIFICATION OF OURINTEREST GROUPS 14

GOVERNMENT, COMMITMENTS ANDPARTICIPATION OF OUR INTEREST GROUPS 16

CODE OF ETHICS 18

SOCIAL ACTION 19

CONCEPTS: MATERIALITY, PRIORITY AND INTEREST GROUPS 21

AREAS OF ACTION: People 22 Operations 25 R&D 28

GLOSSARY, VALIDATIONS AND INDICATORS OF PERFORMANCE 33

CORPORATE SOCIAL RESPONSIBILITY REPORT 2012 DALLANT S.A.

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Letter from the Executive President

We are pleased to welcome you to our second Social Responsibility Report that gathers our approach to sustainable development and in which we collect and make public both our business model and our main areas of work.

With the dissemination of this document, we reiterate our willingness to establish a periodic dialogue with the interest groups that we interact with, at the same time that we give an explanation of our activity, in an open and transparent manner.

In 2012 we have continued to make progress down our path towards more sustainable growth, both in environmental and economic aspects and, above all, in those that affect people. As a demonstration of that commitment, we have agreed to the Global Compact, the United Nations initiative for Human Rights, Labour Regulations, the Environment and the Fight against Corruption. With the same goal, we are members of Sedex, an organisation that promotes responsible and ethical commercial relationships. In short, we are pleased to continue growing and learning through the incorporation of those systems that enable us to link and objectively report on our advances in the field of Social Responsibility.

We are a medium-sized company with a corporate identity and an organisational culture in which all the people that form part of the business feel very proud. Our principles and values are the clear reflection of our actions and way of being.

Throughout our history of more than 60 years, we have always encouraged establishing and maintaining stable and respectful relationships with people and the environment. We understand that this is the only way to cope with the challenges of the future and to ensure sustainable growth in the medium and long term.

We are in the midst of a severe economic recession that together with a widespread crisis of values in society, make the pillars of state of well-being unstable. In this tough context, our firm determination to continue implementing good practices of business management in all areas of our activity makes even more sense, as they ensure the good health of our company, our suppliers and our clients.

We believe that the small and medium-sized companies form a fundamental part of the economic and social sector, constituting a key structuring element of our society. Therefore, we must continue to be entrepreneurial and seek the best way to integrate the Corporate Social Responsibility policies within the management systems and daily operations.

We are fully aware of the impact of our activity at all levels: social, economic and environmental. As a result, we feel obliged to continue to promote both individual and collective attitudes, actions and commitments that ensure long-term success and help to build a more humane society, both for the present generation, as well as those of the future.

Jaime Pérez Costa Executive President

STRATEGY AND ANALYSIS

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CORPORATE SOCIAL RESPONSIBILITY REPORT DALLANT S.A.

This report covers the period that spans between January 1st and December 31st of 2012.

Our report has been carried out in accordance with version 3.1 of the G3 Guide for the elaboration of sustainability reports from the Global Reporting Initiative (GRI) organisation. This report has been completed with the criterion of a level C report.

Mr. Alejandro Pérez, Managing Director, certifies the veracity of the data presented in this report. The table of indicators can be found on p. 34 of this report.

More information about GRI: www.globalreporting.org

For more information about our report, you can visit us at http://www.dallant.com/en/company/corporate-social-responsability or contact: Joan Manel Torres, [email protected]

This is Dallant S.A.’s second Corporate Social Responsibility Report. This report was carried out according to the criterion of Global Reporting Initiative (GRI).

REPORT PROFILE

GRI is an online organisation that was a pioneer in developing the sustainability reporting system that is most widely used at the international le-vel. Its main objectives include the incorporation of the dissemination of information about the environment, social services and governance.

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The coverage of the report is Dallant S.A. in its entire area of action as well as what it confers to the company’s facilities. This memory has no limitations related to its scope.

The techniques of data measurement and the basis for performing the calculations, included in the hypotheses and underlying techni-ques are those that form part of our standardised procedures.

Our sources of information are those that are derived from our management system. At the same time, some specific instruments have been generated in order to be able to further elaborate this report.

Dallant promises their interest groups external verification of the report on the matters that are specific to Dallant, according to the criterion established by the company Management. The frequency of the report is on an annual basis.

SCOPE AND COVERAGE OF THE REPORT

“Sustainable Development: Action to meet the needs of the present without compromising the capacities of future generations to meet their own needs.”

Harlem Bruntland Prime Minister of Norway, 1985


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EXPERIENCE AND SENSITIVITY

Dallant is an organisation that researches, develops, produces and markets flavourings and ingredients for the food indus-try. We distinguish ourselves by offering a personalised relations-hip and business-to-business solutions in the form of specific pro-ducts tailored to each customer, from the perspective of thinking globally and acting locally.

Our projects are custom-fitted for our clients. We are extremely proud to be able to participate in sustainable growth through employment and our products.

Dallant’s social commitment started long before the birth of the concept of social responsibility.

This is another case where the practice constructs the theory.

Since the establishment of the company, the challenge of satisfying our clients has always been sought through the pairing of: job creation and efficiency. This pairing is more necessary than ever in these times of uncertainty.

DALLANTAT A GLANCE

INNOVATION AND CREATIVITY

DEVELOPMENTS AND CUSTOMISED

PRODUCTS

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Our organisation has subsidiary businesses:

S MOLEVA

S CITRICOS DE MURCIA

S DALLANT MAGHREB

S DALLANT MIDDLE EAST

S DALLANT EURASIA

S DALLANT CARIBBEAN

Our model of adaptive and multi-premi-se organisation offers specialised pro-ducts and a service close to the territory where we operate.

Head OfficeSant Feliu de Llobregat

Barcelona, Spain

MEMBER OF:

Sedex

SCIENTIFIC AND TECHNOLOGICAL

BACKGROUND

NATURAL AND HEALTHY INGREDIENTS

8 8 HISTORICAL BACKGROUND


1950Establishment of Especialidades Dallant in Barcelona

1963Inauguration of the Head Office in Sant Feliu de Llobregat

1966Start of commercial activities at the international level

1974Development of micro-encapsulated flavours

1987Creation of Cítricos de Murcia S.A.

1990Creation of compounds

for soft drinks

1991Integration of Moleva S.A.

juices and concentrates

1996Incorporation of

Ingredients S.A. as a savoury foods business unit

1997Development of dairy bases for alcoholic drinks

1997ISO 9001 Certification

1950

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1999Industrialisation of cream fillings for industrial bakeries

2000Implementation in Maghreb

2007Start of the new industrial investment plan

2008Implementation in Middle East

2009Enhancing of the emulsion’s portfolio

2011International reach:

50% of the bussiness

2012FSSC:22000 Certification

2012Implementation inEurasia-Turkey

2013


10 RESULTS AND HIGHLIGHTED FIGURES 2012

ECONOMY 2010 2011 2012

Sales 43 Milion 46 Milion 50 MilionIndebtedness 33.4 % 14 % 26.57 %Solvency 66.41 % 73 % 73.42 %Tech. / indust. investments 1.5 Milion 0.6 Milion 2.2 Milion Investments in R&D / sales 4.5 % 4.8 % 4.6 %

2010

100%66

.41

%

73 %

73.4

2 %

75%

50%

25%

2011 2012

SOLVENCY

2010

50

43 M

€

46 M

€ 50 M

€

45

40

2011 2012

SALES

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IS WATER THAT COMES FROM AN AGRICULTURAL WELL

ENVIRONMENT 2010 2011 2012

Energy 15,969 GJ 14,974 GJ 15,053 GJWaste 619.49 kg 425.73 kg 328.52 kgWater 26,152 m3 24,856 m3 22,087 m3

Energy savings UNAVAIL. 324.42 GJ 110 GJ Wastewater 12,240 m3 13,320 m3 11,957 m3

PEOPLE 2010 2011 2012

Employees 145.94 FTE 149.76 FTE 152.13 FTEStability 95.9 % 96 % 96 %Turnover 0.69 % 0.6 % 1.3 %Accidents 0.52 % 0.4 % 0.1 % Engagement 72 % - 89.9 %

87.69 %

2010

30,000 m3

2,700 m3

2,781 m3

2,719 m3

23,4

52 m

3

22,0

75 m

3

19,3

69 m

3

20,000 m3

10,000 m3

2011 2012

WATER CONSUMPTION

Agricultural well

Water company

2010

100 %72

% 89.9

%

75 %

50 %

25 %

2012

RATE OF ENGAGEMENT*

* The measurement of the level of engagement and commitment is biannual.


At Dallant we understand sustainable development as the key to ensuring the growth of our organisation and the envi-ronment in which our activity takes place.

SUSTAINED AND SUSTAINABLE GROWTH

Invoicing more and having economic benefits are incomplete objectives. We reject opportunistic approaches and speculators, in order to work with perseverance and prudence, with the purpose of sowing consciously and continuing to collect the fruit of our labour patiently.

The search for shared benefits is the great strategic objective of the future.

INTERNATIONALISATION

Our organisation is experiencing a moment of great change. We have reached 50% of international business, and therefore, it is important for our company to strengthen its global business dimension and to be able to efficiently respond to the context of complexity in which we are immersed.

In order to continue growing, the research of new emerging markets and the search for new opportunities in mature markets is essential, as well as being able to extrapolate our success stories to similar markets.

12 FUTURECHALLENGES

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We are an industrial company that works with natural raw materials, therefore, with finite resources that must be efficiently managed. Taking care of the environment and maintaining an adequate comprehensive management system, are the basic pillars to ensure the future. In this way, our desire is to act and grow in a sustainable way that equally guarantees the social, economic and environmental aspects.

This goal can only be achieved if we act responsibly so that we are capable of satisfying the expectations of our interest groups.

Therefore, the involvement of the entire organisation is fundamental to transfer these goals to our environment.

OUR MODEL OF SUSTAINABILITY

HIGH MEDIUM

HIG

HM

EDIU

MLO

W

Stable relationships with interest groups

Corporate ethics

Creating shared value

People-work teams

Transparency and credibility

Relevant aspects for Dallant

Rele

vant

asp

ects

for i

nter

est g

roup

s

Innovation in products, services and organisation

Health and safety

Corporate sustainability

Engagement

Energy e�ciency

Reduction of waste and water consumption

Integrated management systems

Development of talent

Dialogue and collaboration with interest groups

Pro�tability Donation and collaboration with non-pro�t organisations

LOW


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IMPACT ON DALLANT’S

SUSTAINABILITY

We understand that we live in a global world where we act locally. We share the idea that the planet and its resources are finite. We hope to be able to return what we do and who we are to our interest groups. Since our only missionmakes sense thanks to our relationship with them.

IDENTIFICATION OF OUR INTEREST GROUPS

Opinion Formers

Potential interest

Low priority

Critical interlocutor

+

-INTEREST FOR

DALLANT

OUR ECOSYSTEM:

Consumers | Clients | Employees Shareholders | Competitors Suppliers | Research Centres

Universities | Educational Centres Public Administration | Auditors

Unions Trade and Professional Associations Non-Profit Organisations

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SHAREHOLDERSWe have several instruments to dialogue with our shareholders:

S Quarterly Information about the economic evolution of the business

S Formal and informal meetings with the Executive President

S The sustainability report and good government will be a new privileged instrument of dialogue with our shareholders in the triple count of the following results: economic, environmental and social.

CLIENTSOur instruments of constant communication with our clients are:

S Personalised surveys about projects and innovation

S Client satisfaction survey

S Personalised visits

S Corporate Communication Newsletter

S Our website

S Formal and informal meetings at fairs and events

PEOPLECommunication with employees is developed in the framework of everyday life as well as with the following systematised instruments:

S Satisfaction surveys for employees

S Studies of Psychosocial Risks

S Collective negotiation

S Online magazine of internal communication

S Formal and informal interviews

S Focus-group

S Specific surveys about CSR GRI

Our main interest groups

OUR COLLABORATORS

Environmental Interlocutors

ALPIQTEGA

TRATESA

Audits

SGSSAI GLOBAL

BUREAU VERITAS

Public Commitments

SEDEXGLOBAL COMPACT


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MISSION

The creation of innovative aromas and flavours that people can enjoy as part of a healthy diet, by building stable and lasting relationships with our partners.

PRINCIPLES: THE THREE PS OF DALLANT

OUR PEOPLE TALENT AND RESILIENCE

Our strength lies in the human team that makes up our organi-sation. Our personnel and organisational policies allow for the creation and attraction of new talent, as well as the creation of new spaces of shared satisfaction.

OUR PROJECTS CO-CONSTRUCTED WITH OUR CLIENTS

Respond to the way in which our teams address the projects, some challenges that are experienced with enthusiasm and de-livery. The continual cooperation with the client favours maxi-mum adaptation to the needs of the consumers

OUR PRODUCTS WE CREATE TO SHARE SUCCESS STORIES

We represent the essence of the clients’ products. The con-sistent motivation behind our R&D processes is to address the cultural, nutritional and functional needs of consumers.

“Dallant’s good corporate government integrates the commitments in the area of sustaina-bility in its business identity, as expressed in our Mission, Principles and Values.”

Alejandro Pérez Arranz - Managing Director

GOVERNMENT, COMMITMENTS AND PARTICIPATION IN INTEREST GROUPS

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VALUES

Our business culture is fed by strong values that help us to take on new challenges.

The values that drive us, strengthen us as a group.

S

L

A

E

T

A

I

R

S

NNOV

TION

I

F

I

A

N

C

G

T I O NCIHT

S

ECCU

SS

18 CODE OF ETHICS

Our Code assumes the commitment and ethical responsibility in the business management and the business activity assumed by Dallant, whether they be administrators or employees. Below are the main groups of our code of conduct.

1. With respect to law, human rights and ethical values: Dallant assumes the respon-sibility to act in accordance with current legislation and internationally accepted ethical practices, and with total respect towards Human Rights and civil liberties at all times.

2. Respect for people: Dallant rejects any demonstration of physical, psychological or moral harassment, or abuse of authority, as well as any other conduct that may ge-nerate an intimidating or offensive environment with respect to the people’s rights. In the same way, the employees will maintain due respect for all their colleagues both within and outside of the company, not tolerating libel or slander.

3. Professional development and equal opportunities: Dallant promotes the pro-fessional and personal development since they support the creation of talent, thus ensuring equal opportunities for all its workers and not discriminating against any employee.

4. Corruption and subornation: Dallant is declared contrary to influencing the wi-llingness of people outside the company in order to gain some benefit through the use of unethical practices. Neither will it allow other individuals or entities to use such practices with their employees.

5. Irregular payments and money laundering: Dallant’s management team and em-ployees will not commit to or participate in any activity that involves money laun-dering or participation in illegal activities.

6. Competition and antitrust: Management will know the anti-monopoly rules and powers of jurisdiction, refraining from any conduct that may violate any applicable laws.

7. Accounting and internal control: Accounting will be diligent, transparent and ri-gorous.

8. Treatment of information and knowledge: Dallant’s management team and em-ployees must comply with the duties of discretion and silence, as well as keep in-formation confidential and preserved. Additionally, in accordance with applicable Data Protection legislation, the workers must respect protected dad and not offer data that could violate the legislation.

9. Communication: Dallant’s management team and employees shall ensure that the advertising and promotion is justified and truthful.

10. Quality: Dallant’s employees will ensure the safety and efficacy of the products manufactured by the company, as well as the parameters of production and the production quality.

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SOCIAL ACTION

Since the establishment of the company, the challenge of sa-tisfying our clients has always been sought through the pai-ring of: job creation and efficiency. This pairing is more neces-sary than ever in these times of uncertainty.

We have stable partnerships with different non-profit organisations. Our area of action is preferentially oriented towards children and young people in vulnerable situations. At the same time we cultivate stable partnerships with the territory where we operate.

COLLABORATION:


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Currently we have three areas of sustainability: people, research, development and innovation and operations. Next, we will introduce each one of them.

PEOPLEThe society of knowledge has highlighted the essential difference in organisations, the people. High technology is a common element in the leading organisations of the sec-tor, and as a result, the people and their development define the differential elements among current organisations.If our products are the essential part of our clients’ projects; our teams are the key to ensuring the success of these projects.

OPERATIONS With the use of advanced and efficient techniques, we continuously optimise our productive processes and analytical methods, improving the performance of our products in our clients’ applications. Additionally, we work to simplify their proces-ses, making them more efficient and more competitive.We have a full commitment to the rationalisation of our operations. We work to contribute our products to the market, based on three premises:

S That they are of quality.

S That they are safely manufactured.

S That they are the most environmentally efficient possible.

RESEARCH, DEVELOPMENT AND INNOVATION Motivated by the rapid evolution of the markets and our eagerness of continuous improvement, we focus our efforts on research and technological development of new applications and processes, as well as the organisational innovation, allowing us to contribute a differential value to our clients’ products.

Our philosophy is based on the management of internal and external talent and action according to a system that is dynamic, permeable and open to the market and to the scientific community.

This R&D activity is performed according to a management model based on projects that are approved and certified by accredited external entities and by the Ministry of Science and Innovation.

OUR INVESTMENTS TODAY ARE THE PILLARS OF OUR FUTURE

CONCEPTS: MATERIALITY, PRIORITY AND INTEREST GROUPS


22 AREAS OF ACTION PEOPLE

II SATISFACTION AND COMMITMENT SURVEY

Our II Satisfaction and Commitment Survey of employees increased in participation by 13% (of those employees). This second edition incorporated the commitment dimension for the sake of being able to measure new parameters that promote a good workplace.

89.9% of employees are satisfied and committed to working at Dallant. This repre-sents an increase of 17.9% with respect to 2010. 96.61% are proud to belong to Dallant. This reflects that only 3.38% of the people of the organisation don’t like their jobs.

With regard to the policies of conciliation, 91% are satisfied with the hour’s bank that facilitates personal conciliation as well as aligning the working time with the clients’ ne-cessities. It emphasises that 98% are satisfied with their working day and work timetable.

Finally, the following two variables remain as fundamental areas of the motivation of employees: business ethics and employment stability.

We talk. We grow. Dallant needs people who are enthusiastic, optimistic and resilient, in order to grow together.

89.9 % SATISFIED AND COMMITED EMPLOYEES

We have found our formula for our sustainable growth:

EXCEPTIONAL COMPETITION + CONTINUOUS LEARNING + RESILIENCE = TALENT

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LA11 SUPPORT PROGRAMS IN FINALISING THE PROFESSIO-NAL CAREER:

There are planning actions for early retirement for those who hope to retire, as well as support for continuous training in order to continue the professional career. They take into account the people who may have physical difficulties at the end of their career in order to facilitate partial, flexible or other types of retirement.

TALENT ACCOMODATION AND INTERNAL PROMOTION

During 2012 we continued with the policy of accommodating talent according to ca-pabilities and organisational needs. In this sense, we achieved 96% internal covera-ge of the offered vacancies during the last fiscal year.

This has brought about the need to syste-matise organisational [re]design processes for the sake of cultivating the best aligned virtues according to our map of compe-tencies.

The results of this “crossing” of profiles and positions have helped to increase the co-llective intelligence of the organisation. These work dynamics nourish the versatili-ty and flexibility of our structured teams in the comprehensive chain of development with our interest groups.

96 % VACANCIES COVERED INTERNALLY

GENDER WAGE EQUALITY

= WORK = WAGE

CASE


INDICATORS 2012

INDICATOR DESCRIPTION VALUE

Employees 152.13 FTE

Gender Male 72.30

Female 27.69

Age 20-29 years 9.2

30-48 years 53.26

49-61 years 32.29

>62 years 5.25

Contract Type Undefined 97.00

Workday typology Full-time 98.60

Turnover rate % 1.30

Absenteeism rate % 2.73

Accident rate % 0.10

Regular performance evaluation % 100.00

Rate of participants in the training plan % 97.00

Rate of participants with > 10 h. per year

74.00

Academic level University Studies 40.00

> Secondary school

72.30

Rate of satisfaction and commitment to the employees

% 89.90

PIMEC AWARD FOR COMPANY VALUES

Dallant received the Pimec Foundation award for Company Values. The judges empha-sised the effort that Dallant demonstrates day after day with its policy of personnel, the determination put into the creation and stability of occupation through Training and Development plans, as well as the programs of Talent Management. Additionally, the great possibilities that Dallant facilitates to its employees were highly valued, like in the conciliation of work and family life, allowing for the combination of professional deve-lopment with personal growth.

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AREAS OF ACTION OPERATIONS

Our network of operations is circumscribed by all of our management processes at our head office. The integration of services and rationalisation of operations are two cons-tants in this field of work. We understand all of the supply chain, production and ancillary services of our products as operations.

Our development policies of customised products are aligned with the strategies of industrial design. In this way we can be more flexible with the needs of our clients.

“The consolidation of our actions demons-trates our commitment to operational exce-llence, the commitment to the environment, health and well-being of employees, as well as the territory in which we operate”

Jordi Rovira (Energy Efficiency)

MANUFACTURING OF SAVOURY FOODS

The updating of the productive process of manufacturing of powder flavourings, ca-rried out in 2012, is a clear example of the convergence of three factors; operational excellence, and the environmental and health commitment.

It has shifted from a powder/liquidised mixed system with long production times that were not very ergonomic, to a process with a reduction of up to 75% of the production time, much safer and more ergonomic in terms of labour.

The process has also improved as a whole:

S Economic perspective

S Safety perspective

S Environmental perspective

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OBTAINING FSSC22000 CERTIFICATION

In line with the mission and the corporate values, where the contribution to improving the health of the people is highlighted, in 2012 Dallant culminated the certification project in food safety FSSC22000, for the production and marketing of all of the flavours and ingredients in its portfolio.

The FSSC 22000 standard (Food Safety System Certification) is a standard of global scope, recognised by the Global Food Safety Initiative (GFSI), which ensures the harmlessness, safety and suitability of food throughout the food chain. Therefore, it has a great impact on public health.

Each day, thousands of consumers around the world enjoy food and drinks that contain ingredients from Dallant. The company, aware of the great responsibility that this implies, guarantees the maximum level of food safety and transparency at all times.

Framed within an integrated policy on food safety and quality, as well as a result of the processes of continual improvement, obtaining the FSSC22000 Certification demonstrates the company’s complete commitment to food safety and the satisfaction of its clients.

The certification process was completed successfully at the Dallant S.A. head office, as well as in the productive subsidiaries of Moleva S. A. and Cítricos de Murcia S.A. Additionally, the implementation in Dallant Maghreb sarl is foreseen in the medium-term.

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INDICATORS 2012

CODE INDICATOR TYPE 2010 2011 2012 10/12%

EN3

Direct energy consumption broken down by primary sources(GJ)

GRI

Electric 6,886 6,846 7,323 6.34 1

Thermal 9,083 8,128 7,730 -14.90

EN5

Energy savings due to the conservation and improvements in efficiency (GJ)

GRI 72 68.75 110 52.78

EN8Total water collection by sources (M3)

GRI

Agricul-tural well

23,452 22,075 19,368 -17.41

Supply company

2,700 2,781 2,719 0.70 2

EN21

Total discharges of waste water, accordingto its nature anddestination (M3)

GRI 12,240 13,320 11,957 -2.31

EN22

Total weight of waste generated, according to the type and method of treatment (Tn)

GRI 619.49 425.73 398.52 -35.67

EN26Rate of revalued products%

GRI 55.14 % 61.13 % 36.67 % -18.47

1 Data in absolute value. In relative value to the increase in the company’s activity the evolution is positive.2 Data in absolute value. In relative value to the increase in the company’s activity the evolution is positive.

SUPPLY OF 100% RENEWABLE ELECTRIC ENERGY

Since 2012, Dallant normalises the supply of electrical energy with suppliers that only provide 100% of energy from renewable sources.

This need forms part of the interest in applying the eco-efficiency to Dallant and their intention to optimise the reduction of CO2 emissions, not subject to legal regulations by emission volume but rather by the assumed environmental commitment.

CASE


28 AREAS OF ACTIONR&D

Innovations do not emerge spontaneously with a stroke of genius, but rather they arise from the conscious, methodical and constant search for opportunities.

It is therefore necessary for the culture of innovation to be an inherent part of the orga-nisation and for multidisciplinary teams to be structured and interact properly. The inno-vative spirit and attitude are the key to conceiving and undertaking entrepreneurial projects both inside and outside of the organisation.

The results of our research can be expressed in new product concepts, in the creation of new flavours and ingredients, as well as in the development of non-alcoholic and alcoho-lic drinks, sweet foods, savoury foods, snacks and dietary products, whose organoleptic characteristics are evaluated by panels.

We therefore make applied science, whose benefits are transferred directly to the peo-ple through a simple sip or bite in each act of consumption.

OUR R&D STRATEGY AND, IN CONSEQUENCE, ALL OF OUR EFFORTS IN PRODUCT AND TECHNOLOGY INNOVA-TION REVOLVE AROUND THE FOLLOWING AREAS OF DEVELOPMENT:

“The real voyage of discovery consists not in seeking new ways but in having new eyes”

Marcel Proust

NATURAL HEALTH SENSORY EFFICIENCY

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NATURAL

Nature not only inspires us but it is also the main source where our creations come from, therefore we admire and respect it. We fully study its composition, in order to be able to offer the best of it to consumers through imaginative proposals that mainly come from fruit and vegetable raw materials.

What is natural transcends the tendency dimension, becoming a sine qua non requirement in the majority of the projects. It is not a passing demand, but rather an example of the maturity and consciousness that consumers take and express in their desires.

HEALTH

We are concerned about ensuring food safety throughout the value chain, while promoting good eating habits and offering nutritionally balanced food to the people. For us, it is an obliga-tion to contribute to a good quality of life and prevent health problems.

As a result, our research and technical teams, together with ex-ternal collaborators, are fully working the concepts of nutrition and functionality, studying the active components of the food and the best way to incorporate them into a wide variety of foods and beverages, thus giving response to the consumers’ growing concern on health issues.


30 SENSORY

The consumer wants to live experiences and establish emotional connections each time they eat or drink. Favouring these unique sensations through smell and taste is the key to the success of our projects.

The sensory creation is a mix of inspiration, talent and ingenui-ty with scientific rigour, experience and a broad knowledge of the raw materials and aromatic substances. These factors, to-gether with the sensitivity to the diversity of tastes, cultures and culinary traditions of each market, allow each consumer to enjoy eating and drinking to the maximum.

EFFICIENCY

The rational use of raw materials and energy, together with the continual development and the permanent optimisation of processes, technologies and methods of analysis, allows us to develop products with expectations of long-term growth.

Additionally, we improve the performance of our creations in our clients’ applications, with whom we work to simplify their proces-ses, making them safer, more efficient and more competitive.

We are committed to the society in which we live and work in order to take care of our environment.

TECHNOLOGICAL INNOVATION IN NEW ESSENTIAL OILS

At Dallant, we achieve the maximum potential of the organoleptic Mediterranean citruses through the use of the most advanced technology, complying with the highest levels of demand in terms of energy efficiency, cost and sustainability. Additionally, we seek product optimisation in order to improve their performance in our clients’ processes.

Pursuing this goal, we have developed our own technology for obtaining new concentrated essential oils, as expressed in the concession of a new patent.

This innovation consists of the design and development of a physical procedure that uses an innocuous refrige-rant gas as an extractor agent, avoiding the distillation of the essential oil and the organic solvents and their con-sistent subsequent processes to eliminate them. The result of this new productive system is obtaining the most

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INDICATORS 2012

INDICATOR DESCRIPTION

R&D investment 2.31 Milion €

4.6% on sales

R&D certification 1.6 Milion €

71% vs. Total R&D

Dedication to R&D 24.7% of personnel in R&D

Rate of innovation28.2% new products sales* vs total sales

Rate of added value27.4% Margin of contribution of new products* vs total products margin of contribution

Ratio of approved im-provement proposals

96%

S* new product: age < 5 years

volatile fractions of the essential oils and the concentration of the most oxygenated ones, which finally results in an essential oil with an enriched and more complete aromatic profile.

The procedure is fully respectful of the oil and the environment, obtaining a natural product, coming entirely from the fruit.

2010

2.5 M€

1,93

6,92

5 €

2,23

2,69

7 €

2,30

9,66

9 €

2 M€

1.5 M€

1 M€

2011 2012

4.5% 4.8% 4.6%

INVESTMENT IN R&D

2010

30%

26.5

%

26.6

9%

28.2

3%25%

20%

2011 2012

RATE OF INNOVATION

PR1 Phases of the life cycle of products and services that assess their improvement when applicable, the impacts they have on the clients’ health and safety, and the percentage of product categories and significant services subject to such assessment procedures:

INDICATOR YES NO %*

Concept development of the product x 100%

R&D x 100%

Certification x 100%

Manufacturing and production x 100%

Marketing and promotion x 100%

Storage. distribution and supply x 100%

Use and service x 100%

Disposal, reuse or recycling x 100%

* % Subject to such assessment procedures

“Favouring unique sensations through smell and taste is the key to the success of our projects”


33

GLOSSARY, VALIDATIONS AND PERFORMANCE INDICATORS

GLOSSARY S GLOBAL COMPACT: The United Nations Global Compact is an international initiative that promotes imple-

menting 10 universally accepted principles in the areas of Human Rights, Labour Standards, Environment and the Fight against Corruption in companies’ business activities and strategies.

S GRI. Global Reporting Initiative: It is an organisation whose purpose is to encourage the elaboration of sustainability reports in all types of organisations. GRI produces a complete framework for the elaboration of Sustainability Reports, that is most widely used around the world.

S INTEREST GROUPS: All of those groups that are directly or indirectly affected by the development of bu-siness activity, and therefore, also have the ability to directly or indirectly affect the development of such activity.

S FSSC 22000: Food Safety System Certification. A standard to ensure food safety in the manufacturing of food products.

S ISO 9001: It is the basis of the quality management system since it is an international standard that focuses on all of the elements of management that a company must have in order to have an effective system that allows it to manage and improve the quality of its products or services.

S KPI: Key Performance Indicators measure the level of the performance of a process, focusing on the “how” and indicating the performance of the process, so that a fixed goal can be achieved.

S MATERIALITY: Those aspects and indicators that reflect the impacts that are socially, environmentally and economically significant to the organisation or to those who could exert a substantial influence on the eva-luations and decisions of interest groups

S SEDEX: Sedex is a non-profit organisation whose objective is to enable improvements in responsible busi-ness practices and supply chains ethics around the world.

REGIONS COUNTRY LOCALISATIONQUALITY ISO 9001

FOOD SAFETY FSSC 22000

HALAL KOSHERSEDEX REGISTRATION

EMEA

Spain Barcelona X X OG X X

Spain Lleida X X OG X OG

Spain Murcia X X OG X X

Morocco Casablanca X OG

OG: ONGOING 31/12/2012

VALIDATIONS

[Erratum: The data reported in the CSR Report in 2011 from investment in R & D over sales were not correct, these being 4.8%.]


34 PERFORMANCE INDICATORS

INDICATOR DESCRIPTION OF THE INDICATOR Type Page

EC-1 Direct economic value, generated and distributed GRI p.10

DAL-E1 Rate of financial solvency DAL p.10

DAL-E2 Rate of Indebtedness DAL p.10

DAL-I1 Rate of the innovation of new products DAL p.31

DAL-I2 R&D investment DAL p.31

DAL-I3 R&D certification DAL p.31

DAL-I4 Dedication to R&D DAL p.31

DAL-I5 Rate of added value DAL p.31

DAL-I6 Rate of the success of new products DAL p.31

EN3 Direct energy consumption broken down by primary sources GRI p.27

EN5 Energy savings due to conservation and improvements in efficiency GRI p.27

EN8 Total water collection by sources GRI p.27

EN21 Total discharges of waste water, according to its nature and destination GRI p.27

EN22 Total weight of waste generated, according to the type and method of treatment GRI p.27

EN26 Rate of revalued products GRI p.27

PR1 Impact on health derived from the phases of the life cycle of products and services GRI p.31

LA1 Breakdown of the group of workers by type of employment and contract GRI p.24

LA2Total number of employees and average employee turnover, broken down into groups of age, sex and region

GRI p.24

LA7Rates of absenteeism, occupational diseases, lost days and number of work-related fatalities by region

GRI p.24

LA11Programs of skill management and continuous training that promote the employa-bility of workers

GRI p.24

LA12Percentage of employees that receive regular performance and professional develo-pment evaluations

GRI p.24

DAL-P1 Rate of employee satisfaction DAL p.24

DAL-P2 Ratio of approved improvement proposals DAL p24

DAL-P3 Rate of participants in the training and development plan DAL p.24

DAL-P4 Rate of stability DAL p.24

DAL-P5 Rate of employees with an academic level superior to secondary school studies DAL p.24

GRI Indicator

DAL Dallant Indicator

35

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CSR Report 2012 Dallant