GENERAL MEETING OF SHAREHOLDERS
CARACAS, July the 30th, 2012.
The CORIMON, C.A. Board of Directors is pleased to announce to the shareholders that the financial year has been successfully ended this 30th day of April, 2012.
In this respect, it is our pleasure to inform you that during our financial period ended this 30th day of April, 2012; were completed consistent consolidated sales of Bs.F One billion, six hundred and eighty-nine million, four hundred and seventy-six thousand. (Bs.F. 1,689,476,000), and a consistent net income of Bs.F. Thirty-six million, nine hundred and ninety-two thousand (Bs.F. 36,992.000). The Company consistent total assets totaled Bs. F. Two billion, one hundred and two million, five hundred and eighty-one thousand (Bs.F. 2,102,581.000), while the liabilities of the Company totaled Bs. F. Nine hundred and eighty-eight million, nine hundred and thirty-eight thousand (Bs.F. 988,938.000), resulting to this 30th day of April, 2012 a consistent total net assets of Bs.F. One billion, one hundred and thirteen million, six hundred and forty-three thousand (Bs.F. 1,113,643.000).
Immediately thereafter, The Board of Directors is now turn to describe to the shareholders the following aspects of The Corimon group during the financial period ended this 30th day of April, 2012;
I. Performance of Corimon C.A. and its subsidiary companies, during the financial period ended this 30th day of April, 2012:
During the exercise of the ended financial period, Corimon C.A. and its subsidiary companies continue to develop new strategic partnerships and technological alliances, and in the same manner is still ongoing the process of its Plants and procedures actualization. All in order to exceed our goals, and to fulfill the motto “Environment liabilities = zero” significant investments have already been made in this respect. Thus, we continue to invest in latest generation peripheral and control equipments, in order to improve our services and productivity, and to provide our customers with the best quality of products.
CORIMON Pinturas, C.A.: during the financial period ended this 30th day of April, 2012, the subsidiary Corimon Pinturas, C.A. continued to strengthen its marketing strategies by increasing the its presence in the market due to a financial stability in the company. The gross profit totaled Bs.F. Three hundred and thirty-two million, three hundred and twenty-eight thousand, six hundred and seventy. (Bs.F. 332,328.670). The operating profit reaches Bs.F. One hundred and fourteen million, one hundred and thirty-one thousand, one hundred and twenty-five (Bs.F. 114,131.125). It also made significant investments, including the acquisition of a labeling system to add barcodes in all the production. Likewise, it was purchased in Italy a labeling system (Holmet type) for the alkyd line, allowing an increase in productivity. Finally, it was acquired two new generators with a capacity for the entire plant and it were built to the same diesel oil tanks with a storage capacity of 50,000 liters, allowing 7 days of autonomous operation of the plants.
Resimon, C.A: during the financial period ended this 30th day of April, 2012, the subsidiary Resimon. C.A., reached Bs.F. Fifty-six million, six hundred and seventy thousand and seventy-eight (Bs.F. 56.670.078) of gross profit. The operating profit totaled Bs.F. Twenty million, five hundred and eighty-two thousand, eight hundred and five (Bs.F. 20.582.805). The electronic and mechanic update of the subsidiary reactors is one of the most important investments, this increase substantially the quality and productivity. Also, it was acquire two generators to supply all the plant and two large capacity chillers to reduce production times in 20%.
Cerdex, C.A: This Corimon Group subsidiary dedicated to the manufacture and sale of brushes, rollers and accessories for the painter, maintained its leadership position in the domestic market, offering high quality products at affordable prices. Referring to investments in Cerdex, we emphasize that it acquired a brushes automatic wrapping machine, which has contributed to increased productivity. Similarly, an electrical generator was purchased to supply the whole production. The gross profit totaled Bs.F. Twenty-three million, two hundred and fifty-one thousand, four hundred and eighty-two (Bs.F. 23.251.482) and there is an operating profit of Bs.F. One million, five hundred and fifty-two thousand, five hundred and seventy (Bs.F. 1.552.570).
Tiendas Montana, C.A: this leading chain store in marketing of paintings and related products in Venezuela ended its financial year 2012 with one hundred and seventy eight (178) stores operating under the franchise system and its participation in the total sales of Corimon Pinturas increased 45% in Bolivares. For the 2012 it opened 24 new stores, located in: Distrito Capital (3), Zulia (3), Aragua (3), Carabobo (2), Anzoategui (2), Nueva Esparta (2); Guárico (2) , Bolivar, Monagas, Lara, Yaracuy, Barinas, Vargas and the first store in Delta Amacuro. Finally, we culminated the replacement project of all Tiendas Montana billboards with an updated design and quality that represent a significant investment.
Montana Gráfica, C.A: With regard to this subsidiary dedicated to the production of a wide variety of flexible packaging and folding for consumer and industrial goods, and the provision of design services and prepress for graphic arts industry, it is noteworthy that this subsidiary ended the sales period reaching Bs.F. Three hundred and sixty-seven million, one hundred and fifty-three thousand, six hundred and thirty-one (Bs.F. 367.153.631). With regard to the investments, Montana Gráfica has added two new generators that allow to work throughout the plant, despite the constant power outages. Finally, there are in progress major investments in printing equipment, pre-press, cutting and finishing.
PPV Puras Pinturas Venezolanas, C.A: This new subsidiary in consolidation process, have opened 34 Pintatodo stores in Anzoategui, Aragua, Barinas, Bolivar, Carabobo, Distrito Capital, Falcon, Guarico, Lara, Merida, Monagas, Nueva Esparta, Trujillo, Yaracuy and Zulia, also it have presence in major multi-brand stores nationwide. Currently, it is in process of opening 15 new Pintatodo stores in Puerto La Cruz, Cabimas, Caracas, La Grita, Valencia, Cagua, Trujillo, Merida, Barquisimeto, Margarita, Puerto Ordaz. We can also highlight opening plans of distributors and retail outlets with presence in different parts of the country.
II. BEST CORPORATE GOVERNANCE PRINCIPLES
Concerning the Principles of Best Corporate Governance and subject to the criteria adopted by the National Superintendency of Securities, by Resolution No. 19/01/2005, the Board of Directors of the company has determined that over one fifth of the Directors that the integrated, can be considered independent. Furthermore, the Board has appointed an Audit Committee, whose main functions are: i) To know in advance the company’s financial statements as a necessary condition for them to be considered by the Board and subsequently submitted for approval by the shareholders meeting ii)to assist the Board regarding the implementation of measures necessary to preserve the financial information integrity of the society; iii) to work with the Board in its oversight of the internal audit activity and external auditors and, iv) to review and analyze the content of the management letter in order to make recommendations that from time to time they may determine.
III. CORPORATE SOCIAL RESPONSIBILITY
Finally, we would like to inform our shareholders that the Corimon, CA, Group is aware of the importance of their social role, in this regard, we highlight below some of the activities undertaken during financial year 2012:
- During the year 2011-2012 we continued to make voluntary contributions through payroll Dividend for the Community. Thus, in December 2011 with joy and aguinaldos the students of Unidad Educativa Virgen Misionera, received the representatives of Corimon and the Voluntary Dividend for the Community. The meeting served to hand the seventh contribution by the Corimon group companies and employees. The distribution of contributions by Company in the year was as follows:
AF12 CRM 70.568 CER 10.680 CRP 65.390 MGR 23.450 PPV 9.560 RES 20.266 TMO 840
- During December 2011 on a voluntary basis, employees of the Group made a contribution to the mothers of the Concepción Palacios Maternity in Caracas, by preparing 30 baskets of essential products to newborns. Similarly, we delivered toy to Fundación Hatillo Sonríe benefiting a large group of children.
- Corimon, C.A. made contributions to foundations dedicated to health care as SenoSalud, who was given recovery products for Área de Consulta de Mama and care to patients of Dr. Luis Razetti Cancer Institute. Furthermore, Corimon, C.A. made a contribution of Bs 20,000 to Fundación de Niños con Cáncer del Zulia.
- This year, Corimon include in its Corporate Social Responsibility programs the “Échale Color” (Paint it!) Program, which main objective is to bring joy, harmony and peace through a day of community life in which you “paint” the facades of a selected community. This program runs hand in hand with Iniciativa Paz con Todo, part of the Civil Partnership Rompe el Molde, which is lead by Maickel Melamed. In September 2011 the community “24 de Marzo” located in Petare was selected and the event was held at the International Day of Peace.
- The subsidiary Montana Graphics, C.A. has exercised a voluntary work in conjunction with its workers, in this sense; it has benefited 62 children from the Instituto Educación Especial Nacional Mariara located in the city of Mariara, highlighting the fact that beneficiaries are children with disabilities.
- With the voluntary participation of employees of subsidiaries of Corimon Group, during the month of December (since2008) the workers organize and proceed to deliver toys and gifts (clothes, food, toiletries) to children in different day care centers. In December 2011there were 79 children benefited in the following orphanages: La Casa Abrigo Dr. Luis Gadalacau, Casa Hogar Febres Cordero and Casa Hogar San Antonio.
- Likewise, in fiscal 2012, the subsidiary Corimon Pinturas, CA, has continued with the paint donation program to educational institutions, foundations and public institutions. It can be mention among others: Saime, PDV Comunal, Fundación Fe y Alegría, Fundación Amigos del Niño, Hospital Psiquiátrico de Valencia, U.E. Colegio Don Bosco, Turumo, Caucaguita.
Consequently, mindful of the considerations addressed above, and overlooking the Statutory Auditors’ Report, the Board of Directors of Corimon, CA, presents for consideration of the shareholders; the Consolidated Financial Statements of Corimon, CA and its subsidiaries in constant bolivars for the financial year ended this 30th day of April, 2012.
THE BOARD OF DIRECTORS