Securitas Argentina 2013 Corporate Social Responsibility Report

Securitas Argentina 1 Securitas Argentina 2013 Corporate Social Responsibility Report

2 Securitas Argentina

Securitas Argentina 3 Institutional letter Words from the Country President Christian Faría Country President Securitas Argentina This fifth Corporate Social Responsibility Report is part of a continuous process we carry on guided by the cornerstones of our Road to Follow : committed employees, loyal clients and sustainable profits. All our actions during 2013 were focused on this vision since all sustainability efforts of the Company were aimed at strengthening these three business' cornerstones and at improving employability conditions, operations' excellence and ethical standards. Among some of the achievements we point out in this edition we can mention the consolidation of the new Security solution model of Securitas Argentina with a strong technological component through the completion of the process to integrate two new companies, Trailback and Fuego Red, which allows us being closer to our clients and offering them cutting edge security solutions tailored to their needs. We continue focusing on our employees, extending the education offer so as to give them opportunities to receive training and to spread out their potential. Having qualified personnel allows us offering better services to all our wide range of clients, incorporating competitive technology and adapting our business offer to answer all their needs. In alignment with a global responsible management, we are working to foster sensitivity, training and knowledge of the Values and Ethics Code, through mandatory courses for all our employees available in our e-learning platform. During 2013 the Defensor del Empleado [Ombudsman], a channel to solve queries and complaints from our employees not solved through the line of command that ensures confidentiality and fair solutions of such claims, continued to grow. This communication channel is framed within the global tool SIL (Securitas Integrity Line) that also makes it possible to receive claims on defaults on the Code of Conduct. As challenge for the following year, we intend to go into details about innovation and advances of technological tools to offer solutions tailored to the needs of each client. We are convinced that our contribution to the industry is to share our knowledge as global Company in order to improve the development of the Private Security sector in our country; therefore, we intend to continue creating value with sustainability as the strategic cornerstone of our Company. Reporte 2013 de Responsabilidad Corporate Social Social Responsibility Corporativa Report 2013

4 Securitas Argentina Principles to prepare the Annual Report This Report comprises 2013 Securitas Argentina Fiscal Year and it is the fifth CSR Report published by the Company, again based on the Global Reporting Initiative (G3.1) 1. This edition includes information on Securitas' transactions within the domestic territory for the purposes of complying with the greatest possible number of indicators suggested by GRI, as mentioned in item 7 (GRI Indicators Table) at the end of this document. The Report is mainly focused on those essential or relevant subjects for the Company: transparence and good governance, responsible management of our human resources and service quality. The Report was prepared based on information obtained ad hoc by the Report Team composed of representatives of strategic areas of the Company. Furthermore, within the framework of this process we conducted a workshop with the members of such team to strengthen the common vision of the CSR and carried out integration activities related to certain important aspects of relevant interest that must be managed from sustainability. All information included in this report results from the Company's report processes both at local and global levels, including more detailed information -as compared to the information reported in previous editions- as the result of a policy at group level of favoring information related to material aspects of the Company's businesses and pertinent indicators. We invite readers to give us their opinions, comments and suggestions to improve future editions through the following email address: rse@securitasargentina.com (1) 2013 edition and previous editions of Securitas' report are available at www.securitas.com/ar/es-ar/responsabilidad-social-corporativa/reporte-de-rsc-/

Securitas Argentina 5 CSR Report Team: Management and Finance Department: Gastón Corrado - Tax Responsible Person. Brenda Ratto - Purchase Chief. Verónica Solorzano - Accounting Chief. Sebastián Vega - Payroll. Commercial Department: Natalia Pereyra - Coordinator. Communication, PA and CSR Department: Vanesa Colaneri - CSR Analyst and Report Coordinator. Carolina Hansen - Image and Brand Analyst. Patricia Sclocco - Director. Innovation and Technology Department: Bibiana Ferreira - Controller and Management. Risk and Legal Department: Paola Cámara - National Quality Coordinator. Maximiliano García - Security, Health and Environment Responsible Person. Verónica Loizaga - Risks and Legal. Juan Ratto - Director. Human Resources Department: Agustín Baeck - School, Personal and Business Development Coordinator. Luis Lagos - Employment, Compensation and Development Responsible Person. Patricia Lindblom - Director. RR.II. Department: Néstor Cruzado - Director. General Management: María Laura Paladini - Management Support and Community Program Coordinator. Contributors to this Report: Gustavo González, Yanina Marquevich, Florencia Páramos, Leila Rivas, Gladys Rodríguez, Fernando Russo, Claudio Suppa.

6 Securitas Argentina Table of Contents 1. Introduction 7 1.1. The industry 7 1.2. Securitas Group 7 1.3. Securitas in Argentina 8 1.3.1.Social Responsibility in Securitas Argentina 10 1.3.2. Securitas and its groups of interest 12 1.3.3. Material Nature 15 2. Corporate Governance 17 2.1. Mission, Vision and Values 18 2.2. Board of Directors and Round Table 19 2.3. Values and Ethics Code 20 2.4. Declaration of Human Rights 21 2.5. Defensor del Empleado (Ombudsman) 21 2.6. Securitas Integrity Line 22 2.7. Support to initiatives and associations 23 3. Responsible Business Model 25 3.1. Security Solutions 26 3.2. The Tool box - The Diamond Box 29 3.3. Risk Management 30 3.4. Clients' satisfaction 32 3.5. Securitas Innova 33 3.6. Client Welcome 34 4. A Company built by persons for persons 35 4.1. Securitas Argentina's human capital 36 4.1.1. Diversity map 37 4.2. Employability 38 4.3. Diversity management 42 4.4. Quality of employment 43 4.4.1. Local contracts 43 4.4.2. Training and development 43 4.4.3. Benefit programs 44 4.4.4. Labor environment 45 5. Environment and Labor Health and Safety 47 5.1. Environmental management 48 5.2. Labor Health and Safety 51 6. Community 53 6.1. Support to institutions 55 6.2. Blog Info Zona Segura 55 6.3. Program Convivir 56 6.4. Voluntary action program: Give and Gain Day 57 7. GRI Indicators Table (3.1) 58

Securitas Argentina 7 1. Introduction 1.1. The industry The private security sector is composed of the following participants: Companies of the segment. Their employees. Their clients. The public administration and their regulatory bodies. Professional associations. Communication media. These participants are acknowledged by Securitas at international level as those highlighted relevant participants for the Company. Therefore, cooperation actions carried out are focused on those key players so as to foster relationships and achieve a transparent and growing professional sector. 1.2. Securitas Group Present in Latin America North America Business units Security Services Ibero-America Security Services North America Security Services Europe 85% of the joint business Middle East Asia Africa Access through selective acquisitions to cover international clients present in these markets Securitas is a global Company that offers security solutions in almost all geographical areas, leading almost all markets in which it is present. Each branch has close relationships with its clients that are essential to develop the business. This combination of global Company with strong local presence implies a great added value for clients. Security Services Ibero-America 7 Latin America countries, Spain and Portugal. 15% of the joint business. 57,000 employees.

8 Securitas Argentina 1.3. Securitas in Argentina Securitas Argentina in figures 2013 2012 Employees 15,005 14,971 Provinces in which operates 23 23 Market share 13.8% 13.8% Corporate Buildings (Región Buenos Aires, Región Centro, Región Litoral, Región Sur + Instituto Securitas in Buenos Aires) 5 5 Suppliers 3,673 2,028 Local suppliers 3,669 2,024 Percentage of local purchases 99.89% 99.80% Main financial indicators* 2013 Growth vs. 2012 2012 Net sales AR$2,089,262,000 37% AR$1,523,717,785 Operating costs AR$301,465,612-17% AR$364,254,000 Payment to suppliers AR$500,060,422 21% AR$412,624,916 Payroll and social contributions AR$1,535,603,000 53% AR$1,005,139,149 Taxes and charges AR$105,699,865-13% AR$121,900,000 (*) The values informed are nominal values at the closing of each fiscal year. Other economic indicators 2013 Investments in the community AR$413,345 Sponsorship Law (Ley de Mecenazgo) AR$96,000 Withheld economic value AR$136,816,000 Liabilities AR$866,724,654 Equity AR$171,701,415 Ayudas financieras significativas 2013 Employer's contributions due to promotion regime (including contributions corresponding to employees that are part of the program Inclusive Security) Fiscal Incentives/bonus (Program Educating with Taxes) Total subsidized amount in Aysa services (potable water and sewage)* Total subsidized amount in Edenor S.A. services (power supply services)* AR$13,095,545 AR$773,828 AR$16,775.91 AR$165,008.81 (*) They correspond to corporate office building in Munro.

Securitas Argentina 9 2013 Organizational Chart Services / Clients Guards / Technicians / Monitoring / Mobile / Escort Supervisors / Service Chief Managers Managers Managers Managers Managers Managers Managers Managers Mobile CMT C&I Aviation V. Sosa Buenos Aires G. Di Cesare / A. Castex Center L. Magistralli Littoral M. Bs. Tortul As. 1 South F. Azpiroz Trailback F. González Systems M. Goméz Mobile Services S. Cruzado Innov. and Tech. M. Gómez Comp. Centers A. Nieto National Support Sectors Country President C. Faría Responsible restructuring As a result of Securitas' acquisition processes, the Company is working to integrate business, employees and directives, towards a gradual two-year transition. The process to integrate the companies Fuego Red and Trailback, that were acquired in 2012 and added to Securitas Argentina's staff more than 4,000 employees, was stronger during 2013.Such companies are deemed essential to Securitas Argentina's new solutions model because they added a high technological component. Upon the integration of different workforce clients obtain the support and backup of a multinational Company without losing their point of contact and traditional expertise. During this integration, the administrative and training processes of all employees were adjusted for the purposes of migrating models used by the acquired companies to the Securitas model as a unique culture.

10 Securitas Argentina Loyal clients Committed Employees Sustainable projects 1.3.1. Social Responsibility in Securitas Argentina For Securitas Group, the Camino a Seguir (Road to Follow) is based on achieving a sustainable business as from three main foundations: employability conditions, operations' excellence and ethical standards. Focused on the client to provide specialized solutions Near to our People Leadership to strengthen our business essence operations Inspiring a culture of innovation and creation of value for our clients Near to our Clients Near to our Shareholders Developing knowledge on security and share better practices The Road to Follow Foundation of Securitas Argentina's responsible management Transparence. Employability. Quality. Social responsibility in Securitas is naturally aligned with this vision since all sustainability efforts of the Company are focused on potentiating these three business foundations. To give our Clients Innovative Solutions, of Excellent Quality and Efficient.

Securitas Argentina 11 In Argentina, the CSR strategy is aligned with the strategic foundations at global level set forth by Securitas headquarters. Alliances at international level Organization for the Economic Cooperation and Development (OECD). Securitas' sustainability initiatives are based on three main values: integrity, efficiency and helpfulness and are guided by their main corporate policies and principles such as the Values and Ethics Code. Taking into consideration the particularities of each region, the CSR strategy has national character and it is implemented in the whole territory. Based on the education offer by Instituto Securitas, it is aimed at generating the best employment conditions to more than 15,000 employees. Having qualified personnel allows offering the best services to clients from different segments and sizes, incorporating competitive technologies and adapting the commercial offer to answer all their needs. The transparence with clients and human resources is included in corporate governance policies that turn Securitas into a transparent Company with its shareholders and environment. Alliances at National Level International Labor Organization (ILO). United Nations Universal Declaration of Human Rights (UN). United Nations Development Program (UNPD). United Nations Global Compact.

12 Securitas Argentina Regional context The Corporate Social Responsibility Network was created as the way to align programs at Latin American level and to generate a greater impact with the actions carried out by Securitas. All tasks within the Corporate Social Responsibility Network are carried out in cooperation with persons in charge of Social Responsibility areas of the remaining six countries where the Company has presence at regional level: Ecuador, Chile, Colombia, Costa Rica, Peru and Uruguay. During the year 2013 we carried out a review of all groups of interest in each country, we defined the most relevant issues to be managed by each team and we shared good practices and results from each country's initiatives. 1.3.2. Securitas and its groups of interest The review exercise related to the groups of interest included an analysis of their critical nature. This allowed us to detect the degree of influence of Securitas towards each of these actors as well as the influence of each actor in the Company, from a point of view of economic, social and environmental performance. Main groups of interest for Securitas Employees. Shareholders. Clients. Industry. Community. Suppliers. 2014 Challenges To prepare and launch a local CSE Policy that articulates all initiatives currently exercised and acts as reference framework for future actions. To advance towards the diagnostic and the steps to implement an Ethics Management System pursuant to Standard SGE 21.

Securitas Argentina 13 Securitas Argentina's Criticality matrix Performance influence Employees / Collaborators 4.0 3.8 3.0 Suppliers 2.0 3.5 Shareholders 24% 1.1 1.0 57% Community 2.0 2.7 3.2 Clients 19% Industry Level of criticality of each group of interest, where 0 means low criticality to and from the Company and 4 represents maximum criticality. Human Rights and Labor Society Economic and Services Employees, shareholders and clients are the main participants, which is consistent with the importance of certain issues related to the labor and Human Rights environment such as aspects that represent risks and opportunities to be managed by the Company. Relationship among main groups of interest and ECR foundations Main group of interest Shareholders Employees Clients Foundations of Securitas Argentina's responsible management Transparence Employability Quality

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Securitas Argentina 15 Groups of interest Employees Shareholders Clients Industry Community Suppliers Communication channels and frequency Web page (permanent), SECAR by email (permanent, as needed), Securitas by email in two lines (every two weeks), Defensor del Empleado (Ombudsman) and SIL (permanent), publications in the magazine InfoSecuritas (every two months), Virtual Platform Portal del Guardia (Guard's Portal) (permanent). Web page, social networks (Facebook and Twitter), and Blog Info Zona Segura (Info Safe Zone) (permanent), results' report (every month), CSR Report (every year). Web page, social networks (Facebook and Twitter), and Blog Info Zona Segura (Info Safe Zone) (permanent), Guards' Books during services (permanent), publications in the magazine InfoSecuritas (every two months), CSR Report (every year). Web page (permanent), through chambers of security companies Caesi, Caesba, Casel, Casemara (permanent), CSR Report (every year). Web page, social networks (Facebook and Twitter), and Blog Info Zona Segura (Info Safe Zone) (permanent), CSR Report (every year). Web Page (permanent), mails and emails (permanent, as needed). 1.3.3. Material Nature The contents of Securitas' CSR Report are verified every year by a panel of representatives of different groups of interest. This allows the Company to know their evaluation and perception of the previous report as well as to review expectations, interests and opportunities to improve the following year report. Furthermore, the CSR Report was recognized as an efficient communication element, which reinforces Securitas' commitment to prepare and publish this report to inform its impacts. The contents of this report were defined pursuant to guidelines and suggestions made by such panel.

16 Securitas Argentina Stages in the analysis of the Material Nature 1. 2. 3. 4. Dialogue session with clients, suppliers, civil society organizations, journalists and guides from the academic environment and ECR in general. Internal consideration of the Social Responsibility area regarding the meaning of material nature for the Company. Preparation of the Report on Material Nature. Inclusion of highlighted issues in this Report. Chart on Material Nature of strategic issues Issues that were identified as high priority issues during the material nature analysis made by Securitas Argentina. Economic Aspects, performance and market presence. Human Rights and labor aspects: Occupational health and Safety, diversity and equal opportunity, security practices, relationship company/ workers. Compliance with rules. Transparence Articulation with the Government Furthermore, more issues can be added to these issues identified as relevant for groups of interest during the dialogue exercise: Cooperation with the community and support to social organizations. Procedures to carry out responsible purchases and commercial alliances focused on a sustainable value chain. Commitment with employees and their personal environment. This report will include all information to answer doubts from groups of interest related to these issues that are essential for Securitas Argentina's activity.

Securitas Argentina 17 2. Corporate Governance Photograph: Celia Samudio, Authorizations. "Camino de Pueblo": road from a town in the province of Misiones. Winner Buenos Aires Region 2014 Photograph Contest for employees "El Camino a Seguir".

18 Securitas Argentina 2. Corporate Governance The principles that regulate Securitas' actions are the adequate framework for an ethical and profitable performance that generates value to its groups of interest and the society in which it manages with leadership. The rendering of accounts is part of the integral business management. Shareholders receive monthly a report with main results through formal channels of Securitas AB -Swedish parent Company- and the Ibero American Region. The shareholders' structure of Securitas is composed as follows: 80% owned by Securitas Seguridad Holding SL, a Spanish limited liability Company, 19.99% by Securitas AB and 0.0001% (1 share) by the president of Securitas Argentina. 2.1 Mission, Vision and Values Mission: to protect homes, workplaces and society. Vision: to turn Private Security into a model of benefits for workers, clients and shareholders. Values: Integrity: It means to work with honesty, complying with all laws, respecting all obligations undertaken with clients, with security organizations, with tax entities and with the community in general. Securitas always complies with its integrity requirement, openly expressing its own opinions, informing irregularities and not withholding information. Vigilance: being professional implies seeing, hearing and evaluating. Securitas employees are always attentive and alert and notice things other do not. Thanks to their vigilance they are informed of potential risks and incidents that may take place in our clients premises. Helpfulness: Securitas employees will lend assistance when needed even if it is not specifically related to their job.

Securitas Argentina 19 2.2 Board of Directors and Round Table Board of Directors: it defines the policies of the Company, administers the resources, gives support, carries out the follow up and control of objectives. Chairman / Luis Vecchi Vice-Chairman / Carlos Rinaudo Country President / Christian Faría Round Table: it cooperates with the General Management as regards definition and followup of the Business strategy. Country President / Christian Faría Administration and Finance Director / Alberto Alesci Buenos Aires Region Director / Gabriel Di Cesare Buenos Aires Region Director / Alejandro Castex South Region Director / Fernando Azpiroz Littoral Region Director / Marcelo Tortul Central Region Director / Luis Magistrali Having local directors and managers allows strengthening the relationship and communication with clients, having direct knowledge of the needs and context where the services are rendered and offering solutions according to their expectations.

20 Securitas Argentina 2.3. Values and Ethics Code The Values and Ethics Code of Securitas is the main guideline that sets forth the ethic standard to be applied by all employees and it is closely related to the values of the Company. At global level, emphasis was given to awareness, training and knowledge of the Code both on the part of administrative as well as operative personnel through on-site courses and the e-learning platform. 2013 Training results Employees that took the Values and Ethics Course. 29.65% Staff employees that took the Values and Ethics Course. 82% Security guards that took the Value and Ethics Course. 24% Topics included in the Value and Ethics Code Compliance with the legal framework. Respect for human rights. Good business practices and good practices towards our employees. Protection of the environment. Commitment with the community. 2014 Challenges Preparation of the Compliance Policy related to competition and anti-corruption. By the end of 2014 it was half completed and it is expected to be completed by the first quarter of 2015. Preparation of Antitrust Policy related to Corporate Risk adapted to local laws.

Securitas Argentina 21 2.4. Declaration of Human Rights Securitas supports and respects the fundamental human rights set forth in the Universal Declaration of Human Rights from the United Nations and acknowledges its responsibility to foster and comply with such rights while performing its global activities. Its commitment is documented in the Values and Ethics Code and in its participation in the United Nations Global Compact. In connection with the commitment to uphold the elimination of all forms of forced and compulsory labor (Principle 4 of the Global Compact), the risk existing in the sector is related to shift extension due to lack of replacement of personnel. In this regards, there is a directive which sets forth that a security guard can work up to two eighthour shift and must enjoy the pertinent day off once his/her shift ends. This is regulated in the Collective Bargaining Agreement 507/07 which sets forth that overtime is contemplated as from 48 hours per week. During the 2013 fiscal year there were no incidents related to forced labor. 2.5. Defensor del Empleado (Ombudsman) Securitas created this figure in 2012 as a safe and confidential channel to deal and solve all queries and denounces made by employees with the intent to create a space for all those issues that could not be informed through habitual channels. During 2013, 206 denounces were received, 86% of such denounces were solved and the main issues were the following: doubts and claims related to wrong calculation of salaries and bad treatment from supervisors. Denounces unsolved yet are under process of resolution. Statistics of denounces as of 12-31-2012 Claims Type of claim Claim channel Received Ended Pending Wrong salary liquidation Bad treatment Harassment Ended due to termination of claimant 206 177 29 191 15 0 0 41 165 Mail Tel.

22 Securitas Argentina The Defensor del Empleado is represented by the Risks and Legal Director and all persons can contact him through a toll free number, 0800-122-1333, during working hours or by email to eldefensordelempleado@securitasargentina.com 2.6. Securitas Integrity Line "To carry out business activities in a responsible manner is good for the business". Alf Göransson, CEO, Securitas AB. During 2013, 7 cases were processed due to claims made to the Securitas Integrity Line. All cases were solved and are now closed. The Integrity Line (SIL) concentrates Securitas' efforts at global level to create a channel that supplements employees' communication with administrative areas in connection with issues directly related to the Values and Ethics Code. In Argentina, the Integrity Line began to operate in 2013, and employees were given the chance to file denounces and submit doubts through a toll-free number (0-800-555-0906) or the web site www.securitasintegrity.com Its aim is to protect values of the Company and solve situations that may create risks or problems related to integrity. Securitas Integrity Line 2013 Reported cases Claim type Results 4 Harassment and/or action related to the respect of Main Human Rights. Solved 1 Equal opportunities. Solved 2 Salary and employment conditions. Solved

Securitas Argentina 23 2.7. Support to initiatives and associations Securitas performs its leadership and duties as Company in a responsible manner. Its participation and support to chambers and other entities is intended to try to improve the industry, foster formality and adequate employment conditions that generate a better wellbeing for the security personnel, loyal competition and professionalization of personnel. Furthermore, it fosters ethical and responsible management of businesses as a constant challenge in the daily operations of the Company.

24 Securitas Argentina Participation in chambers Cámara Argentina de Empresas de Seguridad e Investigación (CAESI). Christian Faría is Deputy Treasurer. Miguel Feroglio is Regular Member of the Directors Committee, President of the Academic Issues Committee and Member of the Executive Chair. Carlos Rinaudo is Regular Member of the Directors Committee, President of the Economic Affairs Committee and of the Labor Issues Committee. Cámara de Empresas de Seguridad de Buenos Aires (CAESBA). Luis Vecchi is the president of such institution. Cámara Argentina de Seguridad Electrónica (CASEL). ASIS International. Foro de Seguridad Latinoamericano. Cámara de Comercio Sueco Argentina. Luis Vecchi is the Treasurer of such entity. Cámara de Comercio de Estados Unidos en Argentina (AmCham). Cámara Española de Comercio de la República Argentina. Instituto para el Desarrollo Empresarial de la Argentina (IDEA). Cámara de Industria y Comercio de la Matanza (CICM). Cámara Industrial del Parque Industrial Pilar. Forética Argentina Asociación Civil Luis Vecchi is the president of such institution. Consejo Empresario Argentino para el Desarrollo Sustentable (CEADS). Cooperation with Public Administration From the Institutional Relations Department there is continuous relationship with the Private Security Department of the Government of the City of Buenos Aires and of the Province of Buenos Aires. Furthermore, there is also a relationship with Repar (Provincial Registry of Firearms of the Province of Buenos Aires) and the Background Department of the Province of Buenos Aires. In addition, there is a relationship with the Ministry of Employment of the Province of Buenos Aires as well as with the Ministry of Employment of the Nation. In addition to Securitas' special interest in all issues related to Social Responsibility, during last year we worked together with the authorities from the Security Department of the Province of Buenos Aires in the e-learning program, focused on training personnel in mandatory courses of the activity for all companies of the sector. Its development and commissioning ended. Currently, it is under process of approval by the application authority.

Securitas Argentina 25 3. Responsible Business Model Photograph: Miguel Delgado, Security Guard. "Camino ingreso en Polvorines Mina Veladero : access road to Polvorines Mina Veladero, Department of Iglesia, province of San Juan. Winner Central Region 2014 Photograph Contest for employees "El Camino a Seguir".

26 Securitas Argentina 3. Responsible Business Model Being the leader is a great responsibility and Securitas undertakes such leadership as a continuous commitment, from the compliance with the legal framework to the consolidation of contributions to society and its environment. The close relationship with its clients is a key factor to understand their needs, to specialize itself and to offer innovative and useful security solutions. This is achieved if personnel are trained, motivated and always compliant with Securitas' values and its quality policy, which includes all these aspects. 3.1. Security Solutions Security is Securitas' sole business; therefore, it is the leader because of its knowledge. Being close to its clients allows it to understand the market and develop a Security Solution integrating several products adapted to the requirements from its clients. The Security Solution includes a deep analysis of threats and vulnerabilities of the assets of ìts clients' companies, the determination of risks and a mitigation proposal together with the integration of human resources, technology and procedures. It also includes maintenance of all systems installed, constant advisory activities and, above all, a sole point of contact for reference for the client.