Stakeholders

Shareholders

Ferreycorp seeks to satisfy and maximize the value of the investment made by its shareholders. Therefore, its management strategy is aligned with these two objectives.

The corporation is characterized by maintaining high standards of compliance and leadership, being recognized both in Peru and abroad for its good corporate governance practices. Ferreycorp’ corporate governance is based on a continuous improvement approach, which leads it to make permanent progress in its field of action.

The company has adopted, for several years, practices that seek to respect the rights of shareholders, through their equitable treatment, the clear stipulation of the functions of the Board of Directors and the transparent and timely presentation of relevant information to the market. These actions are deployed within a control environment of its management and the risks that may affect its results. Thus, its recognized good corporate governance practices have allowed it to align the interests of its shareholders with those of the different management bodies.

Employees

Human capital is the corporation’s most important asset. Having a motivated and committed team is essential to forge leadership and strength in all operations. And it is thanks to the professional and committed work of this human group that Ferreycorp, throughout its history, has achieved great accomplishments and overcome important challenges. For this reason, the corporation recognizes their efforts and ensures that it provides all its employees with optimal working conditions and the necessary incentives for their integral development.

The great Ferreycorp team is made up of people with high ethical standards and different ways of thinking, feeling and acting, but united in the mission of providing products and services of the highest quality.

Diversity and Inclusion
Ferreycorp is committed to fostering and maintaining a work environment free of discrimination, favoring equal opportunities based on the merits of each collaborator, without distinction of sex, ethnicity, origin, creed or social condition. It should be noted that the corporation’s collaborators come from different geographic areas and different socioeconomic strata.

Likewise, Ferreycorp promotes the incorporation of useful and productive people with disabilities, strengthening their security and self-esteem, and integrating them into the world of work. Aligned with the gender equality objective of sustainable development of the United Nations, the group promotes gender equity among its companies, giving an important place to the female population in each of them.

Health care, safety and working conditions
Prevention is a key concept in all of Ferreycorp’ operations, especially when it comes to the health and integrity of its collaborators. That is why each operation is carried out in accordance with a responsible corporate culture that is aware of the need to provide safety and protection for both employees and the environment.

The corporation has an Industrial Safety, Occupational Hygiene, and Environmental Management system that enables it to fulfill its commitment to develop safe and healthy work environments to promote the well-being of all its personnel. This system seeks to ensure permanent compliance with the highest standards in risk management, in order to recognize, evaluate and control those actions, omissions and risk conditions for its employees and the environment.

All Ferreycorp companies have an Occupational Health and Safety Committee in the workplace which is formed on a 50/50 basis, i.e. 50% by the workers and 50% by the employer. The purpose of the Committee is to promote occupational health and safety, as well as to advise and monitor compliance with the Internal Occupational Health and Safety Regulations and national standards, promoting labor welfare and supporting the employer’s development by providing a suitable working environment and fair working conditions.

Likewise, the social welfare area provides personalized and permanent attention in areas such as health, education, housing, family problems, among others. Every year, for example, medical preventive campaigns on different diseases are carried out for collaborators.

Professional Development
Ferreycorp promotes and facilitates the professional development of its collaborators, offering them training aligned with the needs of the business and the demands of the market. Career paths and succession plans are established based on the good performance and training of each employee.

In the case of administrative and commercial personnel, training programs are undertaken to foster a strong organizational culture, maximizing collaborators’ performance and job satisfaction. For technical personnel, Ferreycorp promotes their development through training plans for specific tasks and skills development

Personal and family development
Ferreycorp is committed to the professional development of its employees, permanently offering them various training programs to enhance their skills.

The corporation encourages its collaborators to take time off for family life or to carry out other activities of their own interest. It believes in the appropriate balance that must exist between professional obligations and personal life, the only way to achieve maximum levels of well-being and productivity. Likewise, the subsidiaries develop various activities aimed at their collaborators and their families, such as training in productive activities, vacation programs for their children, family integration programs, and recreational, artistic and sports activities.

Relationship with the union
The corporation respects the free unionization of its collaborators. Since 1946 – and without interruption – the personnel of Ferreyros, the corporation’s main subsidiary, have been represented by two Workers’ Unions:
Unitary Union (Sindicato Unitario), with 340 members.
La Joya Union (Sindicato La Joya), with 44 members

In addition, the Unimaq company, also a member of the Ferreycorp group, has a Unitary Workers’ Union, represented by 16 members.
These groups of collaborators maintain good relations with the representatives of each company and in turn contribute to improving policies that favor labor conditions.

Compliance with regulations
The corporation and its subsidiaries take special care to comply with labor regulations in aspects such as formalization of the contractual relationship, registration of collaborators on the payroll, compliance with working hours, recognition of overtime when applicable, payment of benefits, termination conditions, vacation and leave entitlements, among others.

Fellowship activities
Each year the corporation holds various fraternity meetings with all its personnel. The corporate Olympics, soccer championships, year-end lunches, and the ” Ferreycorp 4k” corporate volunteer race are opportunities for the integration of personnel from the different subsidiaries of the corporation.

Customers

Ferreycorp constantly seeks for its companies to offer more and more value to its customers, providing top quality machinery, equipment, spare parts and services and solutions that complement and improve each other, in order to serve practically all sectors of the economy. In addition, customer satisfaction and complaint management are constantly monitored with a focus on continuous improvement of the services offered and anticipation of future needs. In this way, the corporation promotes mutually beneficial, long-term business relationships based on the availability of the best integral solutions, the support of a leading corporation with a nationwide presence, the excellence of the service provided and a tradition of integrity with solid values. Ferreycorp offers a value proposition that includes:

• Wide range of products and services: Added value for the customer and prestigious international brands.
• Excellence in after-sales service: Allows the customer to have maximum possible support for their capital goods.
• Customer experience monitoring: In order to improve their satisfaction levels regarding the products and services offered.
• Claims management: The solution of complaints and analysis of their causes, generating organizational learning.
• Marketing and communication policy: Principles of respect for competition and correct handling of business information.
• Respect for customer privacy: Information received from the customer can only be used with the customer’s authorization.
• Customer training: Related to technical specifications and proper handling of products.

Risks
Ferreycorp is committed to fostering and maintaining a work environment free of discrimination, favoring equal opportunities based on the merits of each collaborator, without distinction of sex, ethnicity, origin, creed or social status. It should be noted that the corporation’s collaborators come from different geographic areas and different socioeconomic strata.

Environment

Ferreycorp assumes the responsibility of adopting a preventive approach as a fundamental principle to protect the environment. Thus, each of the corporation’s companies seeks to prevent negative environmental impacts and continuously improve its environmental performance, in accordance with its Integrated Health, Safety and Environment Policy.

The corporation has developed a Standard Environmental Management System based on the ISO 14001 standard, in order to improve compliance with environmental requirements and enhance its performance. This system is implemented, monitored and audited through each company’s Environmental Management Programs (EMP) (Programas de Gestión Ambiental – PGA), which include:

• Planning: Identification of environmental impacts.
• Training and awareness-raising: Raising environmental awareness.
• Operational control: Proper management of the main environmental aspects of the business.
• Verification: Monthly indicators of consumption and follow-up of corrective and preventive actions.

Our commitment against illegal mining
Ferreycorp totally rejects illegal mining and joins the efforts of the authorities to combat it. We have a Compliance Unit dedicated to demanding key documentation from customers (authorization to start mining activities, mining certificates, work contracts that prove the destination of the equipment, affidavit assuring that it does not operate in illegal mining, among others) as an indispensable requirement for the commercialization of our products at a national level.

However, there are areas beyond the control of distributors, where public control mechanisms are necessary. In the last three years, more than 725 used Caterpillar machines have been brought into Peru by some 230 importers, who acquired them directly from their owners abroad. At the same time, every year hundreds of Caterpillar machines in Peru change ownership.

We reaffirm our commitment to the government’s efforts to combat illegal mining and express our full willingness to continue collaborating with the authorities and society in law enforcement and environmental preservation directly with our owners abroad.

Our commitment to the environmental impact associated with climate change
“Ferreycorp considers of utmost importance to reduce the environmental impacts associated with climate change, so it focuses its efforts on reducing its greenhouse gas emissions as a contribution to the Sustainable Development Goals and the national objectives agreed in the Paris Agreement. Since 2016, Ferreyros has implemented the good practice of performing greenhouse gas emissions measurements at its headquarters, following compliance with the principles of the GHG Protocol and the guidance of the international standard ISO 14064-1. Since 2017, the measurement performed in the main subsidiaries was exposed to an independent third-party verification with the company SGS.”

Community

Ferreycorp works closely with various sectors of the community, mainly in an area that it considers key to the country’s progress: the education of young people.

Pre-professional Internship Program, support for academic research and vocational orientation

Students are assigned a mentor who guides them through a learning program and provides feedback on their performance in order to develop professional skills. Support is also provided to different students who developed academic research papers in relation to Ferreyros.

Benefactor: Ferreyros, Unimaq, Soltrak, Motored, Orvisa and Cresko
Beneficiaries: Undergraduate students in their final years

Think BigSe Program

Prepares technicians specialized in Caterpillar products for 2 years. Training is at Tecsup and internships at Ferreyros. Access to a Ferreyros educational credit fund that allows students to finance up to 100% of their studies, an amount that is returned when the participant enters the labor market. Upon completion, graduates have the first option of entering a defined career path within the Ferreyros and Unimaq workforce.

Benefactor: The Corporation (Together with Caterpillar)
Objective: Train young people in the technical career of mechanics (since 2002)

Senati Dual Apprenticeship Program (Programa de Aprendizaje Dual Senati) and Sowing your Future Program (Programa Sembrando tu Future)

Program in Lima and Cajamarca. Young students of heavy machinery maintenance complement their technical training with practical learning at the company’s facilities. Through the Sowing your Future Program, Unimaq covers the cost of tuition for low-income schoolchildren from the community of Huaycan (Lima), with outstanding performance and a high degree of interest in pursuing higher education at Senati.

Sponsors: Ferreyros, Motored, Orvisa and Unimaq

Heavy Equipment Operators Club (Club de Operadores de Equipo Pesado)

Offers its members the ability to access knowledge and experience through free seminars via the website www.cluboperadores.com and its Facebook page. Promotes the recognition of Heavy Equipment Operator’s Day. Holds the contest “The Best Heavy Equipment Operator in Peru (El Mejor Operador de Equipo Pesado del Perú)”, which in its three editions has summoned more than 5 thousand operators from all over the country. It has more than 13 thousand members to date.

Benefactor: Ferreycorp, Ferreyros, Unimaq and Orvisa
Objective: Contribute to the development and recognition of machinery operators (Since 2013)

Heavy Equipment Technicians Club (Club de Técnicos de Equipo Pesado)

Contest “The Best Heavy Equipment Technician in Peru (El Mejor Técnico de Equipo Pesado del Perú)”, which had more than 1,800 entries. Publishes valuable information and promotes interaction among its members through digital platforms: www.clubdetecnicos.com.pe and its Facebook page. It has more than 4,200 members to date.

Benefactor: Ferreycorp, Ferreyros, Unimaq and Orvisa
Objective: Generate positive impacts on the professional group of heavy equipment technicians

Works for Taxes

In 2017, Ferreyros continued with the execution of two water and sanitation works in Cusco (Zurite and Sangarara), the first Works for Taxes called by the Regional Government of Cusco (Gobierno Regional del Cusco). Similarly, Ferreyros started the construction of three schools in La Libertad, two individually and one in consortium with the company Unimaq. In October, Ferreyros, in consortium with the company Fargoline, signed an agreement with the Regional Government of Ica (Gobierno Regional de Ica) for the construction of a school in that area. To date, through Works for Taxes, Ferreycorp has been benefiting more than 30 thousand Peruvians, for an approximate amount of S/. 70 million.

Ferreycorp Race

For the eighth consecutive year, the “Ferreycorp 4K” race, a fundraising activity for corporate volunteering, was held simultaneously in 14 cities in the country, with the participation of more than 3,500 collaborators from ten subsidiary companies, their families, friends and pets. Corporate Volunteering Seeking to contribute to the country’s education, the companies of the corporation located in Lima joined forces to carry out the first Ferreycorp Corporate Volunteering program. At the same time, at the national level, the Ferreycorp branches carried out their volunteer activities in different parts of the country. The initiatives were focused on improving infrastructure and transferring knowledge in various educational centers, benefiting more than 500 children in 2017.

Governance and society

Ferreycorp’ Code of Ethics stipulates that the interests of the corporation will never be favored by the fraudulent or illegal conduct of its collaborators, expressly prohibiting the use of unethical practices in commercial relations with Government entities. In addition, it requires all its collaborators -without exception- to comply with the laws and regulations applicable to their activities.

Likewise, the corporation encourages responsible citizenship and a culture based on values; it promotes the formation of opinion on issues of public interest such as social responsibility, foreign trade and capital markets, through participation in forums of sector organizations.

Similarly, the Ferreyros, Unimaq, Orvisa, Motored, Soltrak and Fargoline subsidiaries have been making joint efforts to report their performance and its impact on each of their stakeholders, measuring, understanding and improving their actions in the economic, social and environmental aspects.

It is important to note that Ferreycorp is a member of the United Nations Global Compact Network and is committed to its 10 guiding principles, as stated in its letter of adherence, signed in 2004.

Suppliers

Ferreycorp’ suppliers are not only part of its production chain, they are also strategic partners, which is why we seek to generate relationships based on trust. The corporation encourages the application of good labor practices among its suppliers, convinced that they increase personnel motivation, productivity levels, product and service quality, and in general the well-being of people.

Ferreycorp has a supplier contracting policy based on clearly established principles, such as transparency and fair treatment. As strategic allies, the objective is to develop reliable and fair relationships for both the supplier and the company, with a perspective of joint work and mutual growth, which allows us to achieve the goals and commitments assumed with our customers.

Suppliers are selected on the basis of product or service quality, price and delivery terms. These criteria are complemented by management elements, such as the treatment of personnel and the implementation of safety programs.

Likewise, the different Ferreycorp companies seek to promote the formalization and development of local suppliers in order to improve the quality of the goods and services they offer, thus contributing to the growth of local economies.

In addition, suppliers are trained in different topics relevant to Ferreycorp, such as: Supplier Health and Safety, Customer Privacy, Product Quality, and Service Quality.