Lojas Renner Annual Sustainability Report 2012

2012Annual Sustainability Report

4

Messagefrom Management GRI 1.1 | 1.2

We have ended 2012 with a number of achievements to

celebrate and disclose. The Brazilian economy, though

having grown insufficiently, was much encouraged by

consumer spending during the year, which has boost-

ed our performance. Lojas Renner was able to drive its

growth in the industry further by virtue of the solid base

previously built and in constant development.

An essential aspect in this regard is our attitude,

which is a daily practice among our staff members

by means of our Enchantment Philosophy. Having

the right people in the right places, always willing to

exceed, to overcome challenges and achieve excel-

lence, enchanting everybody who participates in our

world, this is essential. This is what defines us, much

beyond distinguishing us from our competitors, mak-

ing us a unique company.

We also have the Lojas Renner brand, considered the

most valuable in the retail trade and ranked no. 11 in

Brazil by Interbrand. A brand recognized for its close

relation with present-day women, providing quality and

style at competitive prices. And progressively more

widely known and admired by our customers, through

the Company’s ongoing expansion. We opened 35

stores in 2012 only, among Renner, Blue Steel and

Camicado, most of these in shopping malls.

This expansion, a part of the Company’s growth strat-

egy, is supported by other important in-house actions.

Among these we may stress the new fully automated

distribution center we organized in Rio de Janeiro in

2012. This unit is the first important facility in support of

our growth, and for the coming years we have already

planned two additional distribution centers.

Another relevant project in support of our growth is the

planning of the Shared Services Center (SCS). Created

in 2012, its implementation will take place over the next

two years, and once concluded it will provide efficiency

gains and a greater strategic focus. With support ac-

tions concentrated in one sole area, our staff members

will be able to drive all of their efforts to the business,

strategic goals and planned activities.

Preparing for the future is already part of our attitude

and that is why we reap good results from our work

year after year. In 2012 we achieved 19.3% in sales

growth and 20.6% in operating cash generation. On

the other hand, the investments that maintained this

solid operation rose to R$382.3 million over the year.

Our financial services rose by 19.0%, we obtained the

lowest ever loss rates and increased the Private Label

and Meu Cartão card base.

A further highlight of the year and worthy of mention are

the efforts in integrating Camicado, acquired in 2011.

Very much in line with the Renner attitude, it adopted

important differentials in its activities, with personalized

services, a philosophy of excellence in it wares and a

countrywide leader in wedding lists. All of these factors

favored the acquisition of Camicado by Lojas Renner

and expedited the integration process now under way.

The existing mismatches were already detected and

2012 ANNUAL SUSTAINABILITY REPORT 5

are being closely monitored by our teams. We hope

to see tangible results in this operation’s synergy and

efficiency during the second half of 2013.

All of these advances and achievements are sanc-

tioned by the Lojas Renner corporate governance. This

responsible and transparent business management is

one of our commitments, and we have therefore ad-

opted the country’s highest level of corporate gover-

nance, and we are a part of the São Paulo Stock Ex-

change’s (BM&FBovespa) Novo Mercado since 2005.

Through our motivation for greater and better perfor-

mance, we have systematically and continuously im-

proved our structure and practices. In this regard, we

may highlight the creation in 2012 of the Audit and Risk

Management Committee, which jointly with the existing

Sustainability and People Committees are advisors to

the Board of Directors. The committees are extremely

important as they allow us to detail discussions of rel-

evant Company topics and to more easily match stra-

tegic and operating topics.

In our relations with our stakeholders, our attitude is

reflected in our Enchantment Philosophy. Through its

exercise we are enabled to convert our customers,

suppliers and staff members into true stakeholders in

the Lojas Renner scenario. This Philosophy permeates

our relationships and spreads out our Values and the

Company’s commitments among our stakeholders.

In this regard, we are fully focused on qualifying and

managing our suppliers, ensuring that our sustainability

vision and our defense of human rights are also adopt-

ed by the Lojas Renner value chain. Among the actions

put in place to ensure this alignment are the Suppliers

Relations Policy, the Suppliers’ Qualifying Program by

Associação Brasileira do Varejo Têxtil (ABVTEX) and

restructuring of Administration Suppliers’ Management

area, started in 2011 and concluded in 2012.

We believe that our market will grow briskly over the

coming years, not merely because of the country’s

economic activity and the population’s increased earn-

ings, but also due to the activity’s consolidation. This

movement in the fashion trade involves chiefly less in-

formality and fragmentation. We have before us a very

important window of opportunity to increase business,

with clothing purchases in 2013 estimated by Ibope at

R$129 billion.

We will continue resilient and committed with our

growth strategy, as we are certain that it is taking us in

the right direction, and we also envisage in the future

a likely leadership in the activity. Each one of our staff

members, customers and stakeholders is essential to

achieve the targets that we aspire, and we trust that we

will achieve them with the same determination that has

brought us so far.

José GallóChairman

Claudio Thomaz Lobo SonderChairman of the Board of Directors

Preparing for the future is part of our attitude and that is why we reap good results from our work year after year

6

Report Building Process

Lojas Renner submits its 2012 Annual Sus-

tainability Report in which it discloses its

achievements and results to its staff members,

customers, shareholders, investors, suppliers,

society, government and the press. This re-

port includes Lojas Renner plus the Blue Steel

and Camicado units, as well as Instituto Lojas

Renner throughout the country, for the period

from January 1 to December 31, 2012. GRI 2.7 |

3.1 | 3.6 | 3.7 | 3.8 | 4.14 | 4.15

The annual sustainability report is published

since 2010 and serves as a communica-

tions channel with our relationship publics,

and which stresses the Company’s culture,

achievements and differentials. In order to en-

sure a relevant and transparent submission of

accounts, this publication adopts Global Re-

porting Initiative (GRI), version G3.1 interna-

tional guidelines, pursuant to application level

B and the criteria by Associação Brasileira

das Companhias Abertas (Abrasca) and by

Comitê de Orientação para Divulgação de

Informações ao Mercado (Codim). Social and

environmental information are currently sub-

mitted to external examination. Therefore, only

the financial statements were audited. GRI 3.2 |

3.3 | 3.9 | 3.13

Some of the information shown here is differ-

ent from that reflected in the previous report,

chiefly owing to the inclusion of Camicado’s

social and environmental indicators, which

was acquired in 2011. Should this be the

case, explanatory notes will appear in the text,

tables or graphs regarding such changes.

GRI 3.10 | 3.11

With this report Lojas Renner intends above all

to reassert its commitment of depicting to its

stakeholders a story of enchantment, to share

achievements and to prepare continuously for

future challenges. To this end, your assistance

is always important: send your queries, sugges-

tions and comments to relatorio@lojasrenner.

com.br or call (51) 3272-2577. The Sustainability

team will be pleased to provide further informa-

tion or explanations. GRI 3.4

Materiality Matrix GRI 3.5 | 4.15 | 4.16 | 4.17

This report’s contents is a picture of the Com-

pany’s sustainability management and focus-

es on 11 priority topics, jointly defined by Lojas

Renner and its strategic stakeholders in 2011

based on the materiality principle.

REPORT BUILDING PROCESS


The selection of priority topics involved sectoral

and comparative studies among companies in the

fashion trade and materiality tests with represen-

tatives of our relationship publics. The materiality

test started with 34 topics in line with GRI indica-

tors and proposed as priorities by the stakehold-

ers surveyed. The survey took the form of online

questionnaires that were returned by 564 people.

The stakeholders with which Lojas Renner has rela-

tions was selected based on queries in the Compa-

ny’s internal areas. Among the criteria employed for

this survey, are the intensity of stakeholder relations

and the impact that the latter may bring about in

conducting business, as well as the influence of op-

erating activities on these stakeholders. Based on

this database, Lojas Renner invited stakeholder rep-

resentatives to interviews and round tables in order

to discuss relevant topics and to point out concerns

and suggestions to improve management.

The ensuing materiality matrix was organized in two

axes. The first was external and consolidated as-

sessments of external stakeholders and compara-

tive and sectoral studies. On the other hand, the

internal axis was based on surveys with staff mem-

bers, an interview with the chairman and senior

management assessments on the materiality test.

Lojas Renner expects to update the matrix in 2013

and every two years from then on, save for signifi-

cant changes in the economic or business scenar-

io, when the survey may be held every year. Always

seeking to improve its practices, the Company in-

tends to go deeper into this commitment process,

including person-to-person surveys in meetings or

panels during the 2013 edition. GRI 4.16

0 1,00 2,00 3,00

1,00

2,00

3,00

Priority subject 1: Employment number of workers, turnover, benefits

Priority subject 7: Child labor or that analogous to slave labor

Priority subject 2: Training and education

Priority subject 8: Products and services – impacts, reduced impacts, recovered products and packagesPriority subject 3: Investment,

purchase practices – contractual clauses regarding human rights Priority subject 9:

Occupational health and safety

Priority subject 6: Emissions, effluents and residues

Priority subject 5: Economic performance as created distributed value

Priority subject 11: Diversity and equal opportunities

Priority subject 4: Materials used, conservation of resources, efforts to reduce, savings in use of materials/recyclables Priority subject 10:

Management of impacts by Company operations on the community

SOCIETY (EXTERNAL)

COMPANY (INTERNAL)

8 REPORT BUILDING PROCESS

Commitment by Strategic Stakeholders GRI 4.14 | 4.15 | 4.16

Stakeholders Detailing Forms of commitment

Shareholders, investors and market analysts

5,549 shareholders

Management Report, Institutional Overview, Quarterly Financial Information, Shareholders' Meeting Attendance Manual,

meetings with shareholders, disclosure of results, Renner Day, Investor Relations Website, Speak with IR (Lojas Renner site),

Carbon Disclosure Project (CDP)

CustomersWomen from 18 to 39 years in medium/high

consumer classes

Enchantmeter, Lojas Renner site, Customer Assistance (through Lojas Renner site), Renner magazine, social networks and

mobile application, Renner Clube das Vantagens, sponsorships in fashion and cultural events, satisfaction surveys and focal

groups, Eco Estilo project, Mais Eu campaign

Professional Staff 14,915 staff members

Ethics and Conduct Code, Renner Welcome Program, Trainee Program, Fundamental Leadership Program, Learning Managers,

High Performance Group, Renner Academy, Renner University, in-company MBA, Executive Leadership Program, Internal

communications channels (Canal Renner, Planeta Renner, Planeta Informa, Vitrine, Líder@Renner, Café com a Diretoria, Reunião de

Ponto de Partida, Palavra do Presidente), in-house campaigns, incentive campaigns, Enchantment Stories Program, Accident Prevention Internal Committee (Cipa), SIPAT, 5S Program, HR Website, Speak to Us (through the HR Website), Relationship Guidelines, Climate Survey, 360º Assessment, Management

Assessment, benefits and profit sharing

Environment

Over one thousand ton of residues gathered and

correctly disposed, and 575 tCO2e neutralized

Alchemia Bio Line, Solid Residue Management program, Eco Estilo project, Greenhouse Gas Emissions Inventory

and neutralizing emissions, Efficient ICO2, public registration of emissions


Stakeholders Detailing Forms of commitment

Suppliers636 resale suppliers and

1,481 administration suppliers

Resale suppliers: Ethics and Conduct Code, Renner Supplier Relations Policy, Responsible Conduct Commitment Statement, Agreement, Supplier Relations Website, technical visits, audits,

Crescendo Juntos program, Escola de Costura Renner program (through Instituto Lojas Renner),

Administration suppliers: Responsible Conduct Commitment Statement, Agreement

Press and opinion formersMagazines, newspapers, TV, radio, online vehicles

Renner Preview, fashion production for editorials, interviews, releases, press kit

Government and associations

Federal, state and municipal governments, associations with focus

on business

Associations: Instituto para o Desenvolvimento do Varejo (IDV), Associação Brasileira do Varejo Têxtil (ABVTEX),

Carbon Disclosure Project (CDP), Grupo de Institutos, Fundações e Empresas (GIFE), Pacto Global, Pacto Nacional

pela Erradicação do Trabalho Escravo, Princípio do Empoderamento de Mulheres. Governments: Rede Parceria

Social, Rouanet Law, Sports Law, Funcriança, Fundo do Idoso, clothing donations to state and municipal governments

Communities and social organizations

Social organizations supported by Instituto

Lojas Renner and communities in which the

Company is present

Announcement of support to social projects, Programa Escola de Costura Renner, Rede Parceria Social,

Programa Escola de Varejo, Projeto Pescar, Rede Bom Jesus, Programa Estilo Solidário, Rede Parceria

Social, Funcriança, Fundo do Idoso, Instituto Lojas Renner website and social networks

10 OVERVIEW

Overview


With 232 stores and over 14 thousand employees, the Company is the country’s second largest fashion retailer

About the Company GRI 2.1 | 2.3 | 2.6 | 2.7 | 2.8 | 3.11 | 4.8

Lojas Renner S.A. is the second largest fash-

ion retailer founded in Brazil, active in the re-

tail trade since 1965. Known for its pioneering

spirit and quality, as well as for its Enchant-

ment Philosophy in customer assistance, it is

one of the fastest growing companies in its

field. Its background is marked by a passion

for overcoming challenges and making things

happen, an obsession for growth, ethics and

entrepreneurship and respect for all those

which participated in it growth.

The Company has been listed in the stock mar-

ket for 45 years and since 2005 its equity capi-

tal is widely dispersed, with roughly 100% of its

shares free floating in the BM&FBovespa Novo

Mercado. By late 2012 it had 232 stores under

the Renner, Blue Steel and Camicado names,

and three distribution centers. Among the di-

versity of people and styles that can be found

among its over 14 thousand staff members, it

is easy to recognize a feature in common: the

wish to enchant and to be enchanted.

Renner AttitudeThe Enchantment Philosophy based on three

pillars (see table in page 13) goes much be-

yond overcoming customer expectations, it

permeates Lojas Renner’s relations with all of

its stakeholders. The Renner attitude is applied

every day by all staff members and in every ac-

tivity, from managing human resources to the

business and operating areas, also including

support activities such as IT and Investor Rela-

tions. This common view of principles between

employees and the Company is a business dif-

ferential, as it ensures that efforts are placed to

fulfill the Mission and Vision.

Employees are encouraged to share their en-

chantment stories by means of a specific in-

ternal channel. Since this action was created,

over 620 thousand stories have been received.

The best are selected for the “Enchantment

Stories” book, the second edition of which was

published in early 2013 with 100 stories dating

back to the period between 2006 and 2011.

With 22 thousand copies printed, the book will

be handed out to all current employees and to

new ones during the integration period. The first

“Enchantment Stories” edition was launched in

2006 and contained experiences by employees

since the program’s beginning to 2005. Several

of these stories can also be found in this report,

in the course of its text.

12 OVERVIEW

Family Management (1912-1965)

1912 Antônio Jacob Renner, entrepreneur and innovator, founded a textile company in Porto Alegre (RS) and a product that made history in its day, the Capa Ideal.

1922 After the First World War, fashion and habits changed. It was under these circumstances that Renner founded his first point of sales in the capital city of Rio Grande do Sul, to sell textile goods.

The 1940s With the growing popularity of electrical appliances and the cinema’s golden age (which broadened women’s references on fashion), the Renner company expanded its product mix and became a department store.

Family and Professional Management (1965-1997)

The 1960s During the period under the dominance of the spirit of liberation, with the introduction of the birth-control pill and the mini-skirt, Renner was also emancipated: in 1965 it became an independent company and two years later it went public in the Stock Exchange.

The 1970s and 1980s The Company opened its first branches and pioneered by opening a unit in a shopping mall and automating its stores.

Early 1990s A new concept marked by a reference to the beauty of top models, freedom of choice with globalization and less time available for purchases owing to increased daily working hours and traffic, led to the Company’s overall restructuring and the adoption of professional management, now operating as a department store specialized in fashion.

J.C. Penney Management (1998-2005)

1998 J.C. Penney, one of the largest retail networks in the United States, acquired Renner’s equity control in December of this year, which contributed to the Company’s large growth.

Early 2000s Committed to developing a close relation with present-day women, the Company started to display its goods in a coordinated manner, easing choices and optimizing customer time, and tuned to the movement of universal fashion. This style was refined in 2002 with the Lifestyle concept whereby collections were according to lifestyle and composed of house brands.

Corporation(as of July 1, 2005)

2005 On July 1st Renner became the country’s first company to have its equity capital widely dispersed, with roughly 100% of its shares free floating, following a public offering of shares owned by J.C. Penney.

2006 a 2009 Family purchasing power is on the upswing. Renner is enabled to intensify its expansion plan and opens it first stores in the Northeastern and Northern regions, in addition to organizing its Financial Services area.

2010 The co-branded Mastercard and Visa cards were launched (the first Brazilian non-financial institution to have its private label card), e-commerce and new brands.

2011 Keeping up with women in the new millennium – who require things closer, more practical and quickly – the Company breaks a record by opening up 30 stores. The expansion strategy is driven with the opening of specialized stores, Internet sales and acquisition of the Camicado network. During the same year Renner is elected Brazil’s 11th most valuable brand by Interbrand, and the best retail trade in customer assistance by Instituto Ibero-Brasileiro de Relacionamento com o Cliente (IBRC).


2012 In order to provide support to the Company’s expansion plan, the Shared Services Center (CSC) and Supply Chain projects are kicked off, with the inauguration of Rio de Janeiro’s new Distribution Center. Other highlights are the new web platform and revamping of the Cartão Renner card.

Pillars of the Lojas Renner Enchantment Philosophy

TIMELINERenner’s background of events

1996 Inauguration of the Enchantmeter in its stores in order to monitor quality in customer assistance and degree of satisfaction.

Investing and developing talentsStaff members are being constantly prepared and encouraged to act independently, to resolve any problems right away and to ceaselessly seek to enchant customers.

Customer focusCustomer purchase experience should be unique, which involves among other aspects store layout, intelligent assistance avoiding the formation of lines, displaying goods according to lifestyle for customers to easily find what they are looking for, the store’s environment and of course the Enchantmeter (read more in the chapter on Sustainability/Customer Management in page 84).

Putting the Enchantment Philosophy into practiceThe Enchantment Stories Program acknowledges and awards staff members who practice the Enchantment Philosophy. In addition, the Company’s birthday is commemorated as Enchantment Day, when Management employees exchange their office routine for the store and experience enchantment in direct customer contact.

1997 Driven by its Enchantment Philosophy, Renner expanded its operations by starting business in the state of São Paulo, the country’s chief business region.


1414

Enchantment is Our Fulfillment

We put ourselves in the place of our

customers, doing everything for them

that we would like to be done for us.

We must understand their desires and

needs, exceed their expectations and,

so, enchant them. We are not simply

employees, but rather enchanters of

customers. We do not have a Customer

Service Desk, because each one of us

is a Customer Service Desk: there’s a

problem – we solve right there and then.

Our Way

We are a cheerful, innovative, ethical,

austere, open doors company where

communication is easy and transparent.

We do things in a simple and responsive

way, with much enthusiasm and pas-

sion. Our business is driven by persis-

tence, creativity, and optimism, always

very close to the market: we adopt a get

up and go attitude.

People

We hire, develop and retain the best

staff – staff that like people, who have

a passion for what they do and a shine

in their eyes. We work as a team and

our staff have the authority and respon-

sibility to take decisions. We provide the

same ladder to all our employees so

they can rise in the company at a pace

equal to their talents, efforts and results.

Owners of the Business

We think and act as owners of our busi-

ness units, being rewarded as such.

We have a sense of urgency, attitude

and aggressiveness in seeking the best

practices, constantly alert to all the op-

portunities in the market. We take deci-

sions, running risks with responsibility;

we accept the errors that come from

moving up the learning curve, not seek-

ing to blame but to identify causes that

must be corrected. We are responsible

for the long-term future of Renner, prin-

cipally through attitudes and examples:

an example worths more than a thou-

sand words.

Determination to Achieve

Exceptional Results

We are responsible for achieving results

– not just good ideas. Results are what

guarantee our investments, give a return

to our shareholders, pay our salaries

and make our growth and long-term

continuity a reality.

Quality

We develop and implement standards

of excellence in all that we do, since

there is room for improvement in all that

we do. Our products and services enjoy

the highest levels of quality: this is writ-

ten into our DNA.

Renner Values

Mission GRI 4.8

To be biggest and best department store in the Americas for the middle/high income consumer segments with different styles, always in the forefront of fashion, quality, competitive prices and excellence in services rendered, by enchanting and innovating.

VisionEnchanting everybody is our fulfillment.

We adore challenges: impossible is not a word in our vocabulary, we just get on and do it.

OVERVIEW


Enchanting any time

THE BEST 2012 ENCHANTMENT STORY

On August 9 I was arriving at the store for the opening and noticed a couple talking to the caretaker of the neighboring building. The caretaker asked at what time the store would open for business, and when I informed 9 AM, I saw the couple’s frustrated expression. Questioned on the reason for the inquiry, Karine explained that she and her husband Alexandre had traveled all night from São Paulo state to Belo Horizonte, as he had passed in an admission test and had arrived in the city to start working. However, when arranging their luggage in the car, they had forgotten to load Alexandre’s suitcase, whose only clothes were those he was wearing, – t-shirt and jeans – and his appointment was just one hour away. I quickly thought of a way to help this couple. I asked them to wait and went to my supervisor Luiz Eduardo, to tell him of my wish to enchant them. He readily agreed to help me. I returned to see the couple and gave them the news: we would open the store solely for them to do their shopping. Karine and Alexandre looked at each other with excitement and followed me inside the store. I took them to the Preston Field sector where they were marveled with the models and they soon selected a look for the occasion. Alexandre had to leave the store dressed, but the new shirt was wrinkled and couldn’t let him leave like that. So I decided to iron the shirt. He said that he had never expected such a special treatment, chiefly at 6 AM. Before departing, Karine thanked me and regretted that she lived in a small town where there is no Lojas Renner, and said that she would soon be back at the store.

Denize de Paula da Silva | Store inspector | Shopping Bahia (MG)

Market Presence GRI 2.2 | 2.3 | 2.4 | 2.7 | 2.8

Lojas Renner is the country’s second largest

fashion retailer in terms of gross billings, with

188 Renner, 4 Blue Steel and 40 Camicado

stores, a network acquired in May 2011. With

headquarters located in Porto Alegre, state of

Rio Grande do Sul, over 90% of its stores are in

shopping malls, making life easier for custom-

ers with quick access and closeness of other

services. Street stores are located in central

urban areas, with an expressive influence and

circulation of consumers. GRI 2.7 | 2.9

Its activities focus on women from 18 to 39

years in population’s medium/high consumer

classes. With its vocation of close relations

with present-day women and with the slogan

“You have your style. Renner has them all.”,

it provides collections with the most recent

fashion trends, with quality and at competitive

prices. GRI 2.7

ENCHANTMENT STORIES

16 OVERVIEW

Lojas Renner in Brazil GRI 2.5 | 2.7

North

Center-West

Southeast

South

Northeast

Lojas Renner

Camicado

Lojas Blue Steel

Distribution Center

AMAZONAS 2PARÁ 2

RONDÔNIA 1TOCANTINS 1

ACRE 1

DISTRITO FEDERAL 6 1MATO GROSSO 2

GOIÁS 6 1MATO GROSSO DO SUL 2 SÃO PAULO 62 2 21 1

RIO DE JANEIRO 20 4 1MINAS GERAIS 13 1 2

ESPÍRITO SANTO 4 1

RIO GRANDE DO SUL 23 1 5 1 PARANÁ 13 3

SANTA CATARINA 10 2

BAHIA 8PERNAMBUCO 6

CEARÁ 2SERGIPE 2PARAÍBA 1

RIO GRANDE DO NORTE 2ALAGOAS 1

MARANHÃO 1


Lojas Renner: Brazil’s 2nd largest fashion retailer

188

192 stores

4

4.7 billion

20.8 million

93%

361.3 thousand m2

78 thousand m2

Brazilian reais in gross revenues for 2012

cards issued

of its stores in shopping malls

is the total sales area

is the total area of the three distribution centers

Lojas Renner markets a product mix of 25

thousand item consisting in house brands,

third-party brands, licensed goods and im-

ported goods. The 19 house brands include

exclusive apparel items (with 16 brands), foot-

wear, toiletry and beauty accessories (each

one of one brand). GRI 2.2

Among the 16 apparel house brands, 6 rep-

resent different lifestyles. Clothing, footwear

and accessories are displayed in the stores

grouped under specific styles: casual, young

look, neo-traditional, fashion or contemporary.

This model created in 2002 makes selecting

easier when purchasing and provides a practi-

cal and pleasant store environment. GRI 2.2 | 2.8

Stocking the right goods, in the correct

amounts and at the correct time in the right

stores is a challenge overcome by the Compa-

ny’s integrated and flexible logistics. In addition

to the two Distribution Centers (CDs) existing in

Santa Catarina and São Paulo, in 2012 Renner

inaugurated a new CD in Rio de Janeiro in or-

der to comply with its expansion plan. Located

in venue close to important highways and ar-

eas that concentrate suppliers, this logistics

structure is supplemented by an outsourced

fleet of vehicles specialized in the retail busi-

ness, which is a competitive differential.


18 OVERVIEW

Ease of purchase terms and specific installment options are assured

over 39 years by means of the Cartão Renner, bringing customers even

closer to the Company and encouraging purchases. The creation of the

Financial Services area back in 2006 intensified Lojas Renner’s activi-

ties in this field. In the course of the years, financing sales was supple-

mented by the provision of personal loans, insurance and capitalization

bonds, by means of the Realize Soluções Financeiras brand and busi-

ness partners.

Diversification in specialized stores, e-commerce platform and acquisitions contributes to Renner’s growth


Blue Steel is the first Lojas Renner house

brand to have specialized stores. In 2012 a

fourth pilot store was opened in São Paulo

(three others were opened in 2011 in the cit-

ies of São Paulo, Belo Horizonte and Porto

Alegre). This model has been well accepted by

customers and should be expanded in 2013

with the opening of at least ten youth fashion

stores. The YOUCOM brand is scheduled for

launching still this year, replacing Blue Steel as

an independent company. GRI 2.2

Another Lojas Renner growth front has no

frontier restrictions: the e-commerce platform

was completely restructured in 2012, with a

modern layout, improved browsing and the

provision of online services. The product mix

is at the reach of a click, easy exchanges in

the physical stores, discounts and exclusive

purchase terms.

The same diversification and growth logic led

the Company in 2012 to return to the house-

hold and decorations area, with the acquisi-

tion of Camicado in 2011. The company has

the largest portfolio in this segment and a style

that is in agreement with Lojas Renner: per-

sonalized assistance and a pleasant environ-

ment for it customers to experience unforget-

table consumer moments. Tuned in to world

trends, it has a product mix with over eight

thousand items and is a leader in wedding list

services. GRI 2.2

Competitive

advantages GRI 1.2

Complete apparel collections at competitive prices Coordinated and frequently renewed clothing, accessories and footwear contribute to a differentiated customer perception of Renner.

Pleasant and convenient consumer experience Brands displayed in stores according to styles make purchases quicker and more comfortable, helping customers to select the style that they wish and encouraging them to come back for new purchases.

Focus dedicated to customer assistance Cares for a pleasant purchase experience go beyond customer satisfaction, surprising and enchanting them.

A solid corporate culturePrinciples and value found in day-to-day routine and in each gesture by staff members are supplemented by a solid Human Resources policy, valuing a pleasant environment and a commitment with team development.

Attractive credit optionsSpecial payment terms are provided by Cartão Renner and other market means of payment, such as cash, checks, credit cards, and are widely accepted in the stores.

20 OVERVIEW

Brands, Goods and Services GRI 2.2

All the brands and goods displayed in the

stores comply with the Lifestyle concept, house

brands meet different lifestyles and regardless

of the collection’s topics, trends in fashion are

examined and adapted to different lifestyles.

The brands displayed in a coordinated manner

in the stores is essential to ensure a pleasurable

consumer experience. Customers may put to-

The Lojas Renner range of apparel is organized into 16 house brands, and 6 of these represent different lifestyles:

Youth fashion (male and female)

TrendyAttitudeYouth

Connected

Casual (male and female)

CasualFrugal

PracticalRelaxed

Neo-traditional (female)

SophisticatedModern

CosmopolitanProfessional

gether a complete wardrobe in a practical and

quick manner, in accordance with their style.

The diversity in models and constant renewal

of collections are also part of this enchant-

ment process, embodying international fashion

trends adapted to each lifestyle and to the pref-

erences of Brazilian consumers.


...to customers Ease in selecting items

Better use of purchase time

Store with goods for the entire family

Display of footwear and accessories to complement each style

...to the Company Increase in cross-sales opportunities

Greater inventory turnover without overlapping of goods

Less need to reduce prices

Opportunities for increased margins

Advantages of the Renner Lifestyle...

PREVIEW RENNER

Neo-traditional (male)

Tailor-madeTraditional

ClassicTidy

Fashion

(female)

YouthSensualFashionSociable

Contemporary (male)

TunedModern

ContemporaryUrban

22 OVERVIEW

Among other house brands, Alchemia is the Company’s perfume and toi-

letry brand, with a portfolio for a complete beauty ritual to bring about well

being and self-esteem in women. There are 86 items in this line, in ad-

dition to limited editions for commemorative dates and coordinated with

apparel brands intended chiefly fort customers between 26 and 45 years.

Fine perfumes are inspired by the Alchemia Notes line, developed by in-

ternational specialists in perfume and consisting in three perfumes, which

combine with three apparel Lifestyles. Besides being sophisticated, the

proposal is practical: the perfumes come in 20 milliliter flasks – small,

delicate and ideal for carrying in the purse.

Alchemia Bio line goods reflect concern with the environment


On the other hand, Alchemia Bio is a distinc-

tive line with a touch of sustainability. All of its

goods reflect the concern with the environ-

ment when they were created with natural

plant ingredients, with bio-degradable for-

mulas and packaged in recyclable materials,

with water-based dyes and Forest Steward-

ship Council certification. These goods are not

tested on animals. GRI EN6

The target public are mindful women who de-

fine their choices to make themselves feel well

and to benefit society and the environment.

There are 17 items dedicated to women’s mo-

ments of well being and beauty, including exfo-

liants, moisturizers, body oils, liquid soap and

invigorating fragrances. In 2012 a special home

line was launched and in 2013 a new refreshing

fragrance, Verbena, was launched.

Financial Services GRI 2.2

Cartão Renner: for 39 years a part of every-

day life by customers, this card provides five

interest-free installment payments or 8 interest-

bearing installments. With it, the Company re-

mains even closer to its customers by providing

an increase in the number of purchases and the

sum spent in fashion, by virtue of the distinctive

payment terms and participation in the Renner

Clube de Vantagens (Advantages Club).

Meu Cartão: launched in 2010 jointly with

Mastercard and Visa, this card issued by

Renner Administradora de Cartões de Crédito

is one further differential. It is accepted in Lo-

jas Renner, Blue Steel, Camicado and every

store that accepts credit cards, and provides

payment options such as invoices or booklets.

Personal loans: available since 2006, these

are one more example of Lojas Renner’s willing-

ness to provide convenience to its customers,

by meeting their specific needs of small sums.

The source is a master agreement with Finan-

ceira Alfa S.A. and they are provided through

the Realize Soluções Financeiras brand.

Insurance: Jointly with Porto Seguro S.A.,

there are a number of classes such as con-

sumer credit insurance, unemployment, per-

sonal loan, card loss and theft, and Seguro

Pessoal Viver Bem. Available in the store net-

work, the policies entitle holders to participate

in draws for capitalization bonds by means of

the Federal Lottery.

Capitalization bonds: in a partnership with

Icatu Seguros, these have a 60-month effective

period. Customers save from R$40 to R$400

per month during 12 months, in addition to run-

ning in weekly draws of as much as R$1 million.

CamicadoCamicado is a leading company in Brazil in

wedding lists and has a complete household

and decorations product mix. There are a

number of items in the bedroom, tableware,

bath, household utensils and appliances lines,

among which exclusive items. With 40 stores

and one distribution center in São Paulo, the

company has a market differential in its excel-

lent customer assistance and the pleasant en-

vironment in its stores, which provide a plea-

surable consumer experience to customers.

www.clubedevantagensrenner.com.br/

www.camicado.com.br

24 CORPORATE GOVERNANCE

Corporate Governance


Lojas Renner belongs to the BM&FBovespa Novo Mercado and has 100% of its equity capital widely dispersed

Relations based in ethics and respect, this proposition

served as guidance to Lojas Renner ever since its first

years of activities and has let its imprint in its business

governance. Always seeking to exceed and to serve as a

reference, the Company has refined its practices in this

field since 1967, when it became a public company in the

Stock Market. In 2005 Lojas Renner had its equity capital

widely dispersed and became the country’s first company

with roughly 100% of its shares free floating.

The Company systematically adopts transparency, equal-

ity, accountability and responsibility principles from

Instituto Brasileiro de Governança Corporativa (IBGC).

Moreover, it is a part of the São Paulo Stock Exchange’s

(BM&FBovespa) Novo Mercado, which includes compa-

nies with Brazil’s highest governance level, besides a

number of market ratios (read more in the table).

A number of policies and guidelines ensure dissemina-

tion of a transparency, financial discipline, internal control

and professional culture in its stakeholder relations. These

guidelines are based on Corporate Foundations and con-

tribute to apply Values on employees’ daily routines. All

of these differentials are shown in the topic that follows.

Equity breakdown on Dec. 31, 2012 (shareholders with over 5% of Company shares)

Number of shares

% of equity capital

Aberdeen Asset Management PLC 17,858,786 14.38

BlackRock Inc. 8,999,153 7.25

TRowe Price 6,872,800 5.53

Schroder Investment Management Limited 6,167,300 4.97

Other 84,272,026 62.52

Total 124,170,065 100.00


Corporate Governance Practices GRI 4.9 | 4.11

The Code of Ethics and Conduct

Each staff member’s conduct is guided by the Code of Ethics and Con-

duct Created in 2009, it is a reference in the ethical and sustainable man-

agement of business, which stresses the Company’s commitment in es-

tablishing real partnerships when addressing staff members, suppliers,

customers, government, society, the community and shareholders. The

Code’s review is scheduled for 2013, making it the sole guideline for Lojas

Renner, YOUCOM and Camicado.

Disclosure Policy

Defines guidelines that ensure disclosure of consistent and equalitarian

information in line with best corporate governance practices and trans-

The Code of Ethics and Conduct is a reference for sustainable management


Key Corporate Governance Practices

Novo Mercado

100% free float

Majority of independent board members (75%)

Board of Directors Committees

Management Committees

Different executives in the office of chairman of the Board

Permanent Board of Inspectors

Manual for Attendance at Shareholders’ Meetings

Share Options Purchase Plan

Internal regulations for Boards and Committees

Formal assessment of the Board of Directors

Secretaries for Boards and Committees

Board of Directors Website

Reporting channels

parency, and in compliance with provisions in

Brazilian legislation and those by Comissão de

Valores Mobiliários (CVM). Based on this policy,

the Investor Relations area defines relationship

practices with the capital market.

Relevant Event Disclosure Policy

Aspects that materially affect business, such

as Shareholders’ Meeting resolutions and

those by governance bodies, and exceptional

political or financial and economic conditions,

should be informed quickly and clearly to the

market. The Relevant Event Disclosure Policy

ensures that this should occur, when it defines

rules and criteria for this kind of situation. The

Investor Relations area is responsible for im-

plementing these guidelines.

Arbitration Clause

Arbitration Chambers are a much more agile

mechanism to resolve conflicts than lawsuits

in a common court of law. A number of legal

provisions and market entities regulate actions

by these Chambers. The Lojas Renner By-

laws provides for adopting this mechanism, by

means of the Novo Mercado Arbitration Cham-

ber, which fact provides greater reliability and

peace of mind to shareholders.

Financial Management Policy

A Financial Policy is being prepared for the

subsequent approval by the Board of Direc-

tors, formalizing guidelines that will protect the

Company’s income figures and assets. Once

it is approved, this document will reinforce the

Renner culture regarding responsibility and

concern in managing liquidity and loans, with

a view to preserving the financial health of

business and improving practices and proce-

dures in this regard.


Policies and guidelines ensure a culture of transparency

Governance, Risk and Compliance Policy

With publication expected for 2013, a resolution by the Company’s Execu-

tive Committee, the Audit and Risk Management Committee and the Board

of Directors is being reviewed. This policy will cover the Governance, Risk

and Conformity (GRC) model, detecting opportunities for gains and reducing

the loss likelihood and/or impact. By exceeding compliance with regulatory

requirements, this model will support decision making by the executive com-

mittee in order to progressively improve the Company’s performance. GRI 4.9

Information Security Policy

Information is a highly valuable asset, which should be employed and protected

appropriately. Lojas Renner has an Information Security Policy (PSI) since 2009,

with the most recent update going back to 2012. The PSI is intended to protect

the confidentiality, integrity and availability of information against a number of

different threats, minimizing risks and ensuring business continuity.



Sustainability Policy DMA EN

Under study by the Sustainability Committee

for the subsequent examination by the Execu-

tive Committee and the Board of Directors, the

Sustainability Policy will provide guidelines for

managing environmental indicators, sustain-

ability commitment by suppliers and improved

relations with staff members and communities.

The policy enhances the Company’s vision of

the future, acting currently in order to grow

more and more in the fashion market.

Supplier Relations Policy

DMA HR | DMA SO

To encourage sustainability in the supply chain,

avoid conflicts of interests and define limits and

criteria for a fair selection of suppliers. These are

a few of this policy’s objective principles that

govern the relationship with suppliers, in par-

ticular during the selection process. Conformity

reduces risks for Lojas Renner, creates benefits

for the area and stresses responsibility and

transparency in management. Renner also relies

on the Lojas Renner Suppliers’ Manual and the

supplier relations guide.

Non-bookkeeping topics: 0800 702 0130 (Lojas Renner) and 0800 077 0077 (Camicado)

Bookkeeping topics: 0800 702 0740 (assistance is provided by the Audit Manager or electronically, not allowing tracing the call or the reporting party)

Correspondence (care of the loss prevention manager for non-bookkeeping topics, or the audit manager for bookkeeping topics): Lojas Renner S.A.Avenida Joaquim Porto Villanova, 401 Postal Code 91410-400 Jardim CarvalhoPorto Alegre (RS) | Brasil

[email protected] and [email protected]

Audit Policy DMA HR | DMA SO

The Audit Policy lists the objectives, attributions

and scope of the Internal Audit department. Lo-

jas Renner is backed by an internal audit struc-

ture and an external audit firm, both of which

act independently and are accountable directly

to the Audit and risk Management Committee.

The Company extends its concern with this veri-

fication to its suppliers, holding regular audits on

topics such as social responsibility, process and

sub-contractors (read more in the Sustainability/

Supplier Chain Management chapter). GRI 4.11

Reporting and Opinion Channel GRI 4.4

Renner asserts its commitment with the search

for excellence and transparency with its stake-

holders, by maintaining a specific channel for

anonymous and confidential reporting of inap-

propriate situations related to bookkeeping and

non-bookkeeping aspects, loss prevention,

human resources, legal topics, compliance and

ethics. The competent areas are activated to

take the required steps. This channel is open to

everybody and may be accessed for:


Target Stakeholder Performance 2012 Commitment 2013

Inauguration of a new distribution center in Rio de Janeiro with a total area of 50 thousand square meters

Shareholders and investors

AchievedOperations begun

on Aug. 27.

Stabilizing and migration of a larger amount of items

(1000% increase) to this unit.

Inauguration of 30 stores, chiefly in the states of São Paulo and Rio de Janeiro, and Northern and Northeastern regions


Partial24 stores were opened, in

compliance with geographical priority. The greatest difficulty

was the postponing of shopping malls.

Opening 26 new Renner stores and at least 10

Blue Steel stores.

Monitoring performance of three Blue Steel pilot stores


Achieved Besides the three pilot stores

in activity, Renner inaugurated the fourth specific Blue

Steel store.

Rollout and development of the youth fashion chain

with a new banner.

Launching of an organic cotton t-shirt line of the Blue Steel brand

Customers

Not achieved The item’s average price was

much above that of other t-shirts of the same brand.

Development of a product line with organic certification (including organic cotton) for

launching in 2014.

Raising the level of customer satisfaction Customers

Achieved The satisfaction rate of very

satisfied or satisfied customers in the Enchantmeter survey

was 96.6%.

Maintaining the rate of very satisfied or satisfied customers

above 96%.

Committing 85% of employees in charge of managing the Speak to Us program to meet the customer reply maximum term of 72 hours

Customers

Achieved On average 99.4%

of outstanding tickets in the channel were

answered within 72 hours.

Maintaining 2012 performance, monitoring commitment

of employees in charge of managing the Speak to Us

program by concluding tickets.

Launching of virtual course for the Procurement division on the Supplier Relations Policy

Staff Members

Achieved The course was launched

and included in the integration program for the Procurement

area’s employees.

Continuity of the virtual course in the Renner

Academy and University.

Commitments Assumed GRI 4.17 | SO1 | DMA SO



Development of a course on the Consumer Defense Code for store employees

Staff Members

AchievedThe course was provided

for all Renner stores and held for 540 employees.

A 50% increase in the number of participants.

Holding of virtual training for cashiers to detect counterfeit bills

Staff Members

PartialThe contents were defined

but the course is still to be developed.

Disclosure of course in the first half of 2013.

A 5% reduction in the occupational casualty and illness rate

Staff Members

Not applicableChanges in the calculation

methods of these rates from 2011 to 2012 made

comparisons difficult.

A 5% reduction in the occupational casualty and

illness rate.

Holding of awareness campaigns in diversity and actions to prepare staff members to receive and live with diversity in the work environment

Staff Members

PartialFive of the nine regional areas

held the training course for Godparents of Diversity and

trained 80 godparents.

Training of Godparents of Diversity in all the regional

areas and ensure the preparation of every employee,

in particular in administration, to encourage diversity.

Working jointly with suppliers in order to improve production and subcontractors and to seek approval in the Retail Suppliers Qualification Program

Resale suppliers

AchievedTwo live events were held

focused on an Associação Brasileira do Varejo Têxtil (ABVTEX) program, with

resale and apparel suppliers, in addition to visits to resale

suppliers, guidance by email and notices on the program

and its merits.

Maintaining visits to apparel resale suppliers and monitoring

qualification of the latter and pending subcontractors.

Having 100% of São Paulo suppliers qualified by the end of the year in the Associação Brasileira do Varejo Têxtil (ABVTEX) program

Resale suppliers

AchievedIn São Paulo, 69 apparel resale suppliers were qualified (100% of this state's active suppliers)

concluding a commitment process started in 2010.

Maintaining Supplier qualification in the state of São Paulo

and expanding it to 100% of suppliers and subcontractors in

other states in Brazil.

Stressing its transparency in accountability and the ongoing search for greater and better performance, Lojas Renner discloses in its Sustainability Report every year the targets and commitments assumed by the Company. The following is a description of the performance and outlook for the targets mentioned in the 2011 report.



Ensuring that suppliers exemptfrom ABVTEX social responsibility audits should hold process audits by an external firm based on three criteria: purchase volume, score obtained and date of last audit

Resale suppliers

Achieved138 resale suppliers held

a process audit during the year, of which 105 were

Approved, 29 Approved with Restriction and 4 Failed. The

latter are blocked in the Renner system and cannot receive

new orders.

Maintaining the 2012 target – audits comply with the Lojas Renner Supplier Audit Policy.

Maintaining a specific social responsibility audit in workshops

Resale suppliers

AchievedDuring the year 290

workshops were audited, 50 more than in 2011.

Audits in 670 workshops, covering 100% of those in

the state of São Paulo and 25 located in other states in Brazil.

Monitoring pre-selected supplier performance by means of the Supplier Performance General Indicator (IDGE), which embodies in its score 25% in social responsibility

Resale suppliers

AchievedThe 25 strategic suppliers

selected in 2011 (based on significance of purchase

volume) were monitored and reflected IDGE progress from

21.09 points in January to 22.05 at the year's end.

Expanding IDGE monitoring to 30 suppliers.

Developing a ratification processfor suppliers of consumables

Administration suppliers

PartialProcess defined based on technical, commercial and

social and environmental assessment metrics for suppliers. The GFA held

discussions on scale for 2013, resulting in R$4.7 million in

reductions with ratified suppliers.

Developing new suppliers and implementing

performance assessments for non-resale suppliers.

Increasing by 30% the amount of recycled residues

Environment

PartialLojas Renner obtained an 18% increase in residues

sent to recycling.

Increasing by 10% commitment by stores in the Solid Residue

Management Program.

Increasing by 20% the collection of residues in the EcoEstilo project

Environment/ Customers

AchievedAwareness campaigns

and the increase in numbers of stores contributed to

achieve the target.

Increasing by 10% the collection of residues in the

EcoEstilo project.



Developing a specific residue management program for refurbishing of stores

Environment

PartialThe program was developed

and is in the internal approval stage for future

implementation.

Putting the program into practice.

Reducing emissions in the performance indicator (emissions per m² of sales area) by 2%

Environment

Not applicableThe inclusion of Camicado

in the 2012 greenhouse gas emissions inventories did

not allow a comparison of performance from 2011 to

2012 – due to the difference in emissions standards from one

year to the other.

Based on the results of the 2012 inventories, we will

maintain the 2% reduction target for the performance

indicator (emissions per m² of sales area).

Maintaining actions focused on logistics operations

Environment

Not applicableOwing to changes in the

logistics of goods with the new Rio de Janeiro distribution

center, and the inclusion of Camicado in the GHG

emissions inventory, it was decided not to work in 2012

with logistics operators before stabilizing routes and suppliers.

Developing a management plan for GHG emissions.

Having 10 Sewing Schools and training 800 people by the end of 2012

Community

Partial3 Sewing Schools

were added and 849 women were trained.

Maintaining 3 units and opening 6 new ones (4 of which being

opened), and training 1000 people.

Supporting at least one job and income creation project in each of the states where Lojas Renner has stores, through Instituto Lojas Renner

Communities and social organizations

PartialInstituto Lojas Renner

supported projects in 17 states and in Brasilia, and had no project enrollment in other states where the

Company is active.

Improving performance of projects supported by Instituto Lojas Renner, working in a pro-

active manner and proposing new units of Escola de Varejo

and Escola de Costura.

Placing 100% of Projeto Pescar pupils in the labor market, preferably in Lojas Renner, or motivating them to enroll in the university

CommunityAchieved

100% of young employees.

Maintaining training of 100% of young people for the

Lojas Renner units.


Governance Structure GRI 4.1 | 4.7 | 4.10

Renner’s governance structure is based on clearly defined composition attributions and criteria, in which

each body works with a view to ensure the Company’s sustainability and value creation for shareholders.

The governance body is highly qualified and broadly experienced in the market in order to define strat-

egies and ensure the Company’s good performance regarding social, environmental and social and

economic aspects.

To read more on qualifications, see the Reference Form in www.lojasrenner.com.br/ir.

Shareholders’ Meeting

People Committee

Administration and IR Officer

HR OfficerProcurement

Officer

Board of Inspectors

Executive Group

IT and Management

Officer

Operations Officer

Sustainability Committee

Audit and Risk Management Committee

Board of Directors

Chairman

External Audit

Internal Audit

Loss Prevention

Compliance


Shareholders’ Meeting GRI 4.4 | 4.7 | 4.9 | 4.10

The Shareholders’ Meeting is an important

corporate governance instrument and defines,

among others, the election of Board of Directors

and Board of Inspectors members, allocation of

the fiscal year’s profits and dividends payouts.

The Common Shareholders’ Meeting is held

once per year and its resolutions depend on the

absolute majority of votes. Every shareholder

has equal voting rights.

Lojas Renner practices for calling this meeting

exceeds legal requirements. Besides calling them

from 30 to 45 days in advance – the legal require-

ment being 15 days – the Company provides a

Shareholders’ Meeting Attendance Manual. The

manual provides guidance for attendance by

shareholders, describing the topics subject to

resolution and anticipating explanations.

The manual also contains a draft of a power-of-

attorney, in case a shareholder should need to

appoint a representative. This publication was

a market pioneer in 2006, clearly demonstrat-

ing the desire to exceed shareholders’ expecta-

tions. Its creation led to Lojas Renner’s acknowl-

edgement in 2007 by means of the Corporate

Governance IBGC Award.

The Boards GRI 4.2 | 4.3 | 4.7 | 4.10

Board of Directors The Board of Directors provides guidance for

business strategy, elects and monitors the

Executive Committee, decides on calling the

Shareholders’ Meeting and defines and se-

lects independent auditors. All of these func-

tions are intended to preserve a body inde-

pendent from executive activities to guide the

Company’s strategy in the long run and ensure

the working order of the management control

and accountability mechanisms.

Its regulations provide for holding at least six

meetings per year. Nonetheless, this body met

13 times in 2012 and closely monitored the

company’s management.

Currently six of its eight members are inde-

pendent. This presence of board members

not related to the Company is highly relevant

in avoiding conflicts of interest and in allow-

ing a diversity of visions and contributions to

the Board’s activities. Also in line with good

market practices, the chairman of the Board

of Directors cannot accrue the office of CEO.

The Board of Directors has six out of eight independent members



Committee Members on December 31, 2012

Audit and Risk Management CommitteeOsvaldo Burgos Schirmer (chairman), José Carlos Hruby and Flavia Buarque de Almeida

People CommitteeEgon Handel (chairman), Pedro Pezzi Eberle and Claudio Thomaz Lobo Sonder

Sustainability CommitteeDeborah Patricia Wright (chairwoman), José Carlos Hruby and Clarice Martins Costa

Board of Directors Members on December 31, 2012

Name Age Office Date of first election

Claudio Thomaz Lobo Sonder* 70Chairman of the Board of

Directors 04/02/2007

Egon Handel* 73Vice Chairman of the Board of

Directors 04/30/1991

José Galló 61 Board Member 04/26/1998

Pedro Pezzi Eberle* 64 Board Member 04/02/2007

Deborah Patricia Wright* 55 Board Member 03/31/2008

José Carlos Hruby 68 Board Member 04/11/2011

Flavia Buarque de Almeida* 45 Board Member 10/26/2011

Osvaldo Burgos Schirmer* 62 Board Member 04/20/2012

* Independent member.

The committees that advise the Board contribute for discussions to

be more greatly focused and structured. Hence, the interface between

strategic and operating topics is better coordinated, as each commit-

tee specializes and refines discussion on topics such as management,

contributing to excellence in governance practices. The Audit and Risk

Management Committee was created in 2012, which expedites dis-

cussions on related subjects and provides guidance to internal and

external audits and the Compliance area. In addition to this one, the

Company has a People Committee and a Sustainability Committee.


Board of Inspectors GRI 4.6

The Board of Inspectors is one more monitoring instance for the Company’s

management, with the chief purpose of ensuring the ethical conduct of busi-

ness and the scope of the established plans. It is bound to report its activities

to the Shareholders’ Meeting, and in order to inspect other governance bod-

ies it cannot be formed by Board of Directors members, Executive Commit-

tee officers or other Renner staff members. It met nine times during 2012.

Executive Committee The Executive Committee is empowered to manage the Company.

Much more than defining plans for putting in practice the guidelines

established by the Board of Directors, it works very closely with staff

members. The executive officers are accessible and promote Renner

Values by means of examples. Hence, they are the first ones to do their

best for the Company to achieve everything that it has planned.

As in the Board of Directors, the Executive Committee is advised by

committees that qualify resolution and expedite decision making. Cur-

rently there are the following Committees: Losses, Real Estate, Corpo-

rate Ethics and Executive.

Executive Officers serve as examples in encouraging Renner Values

Board of Inspectors Members on December 31, 2012

Name Age Office Date of first election

Francisco Sérgio Quintana da Rosa 68Chairman of the Board of

Inspectors 09/01/2005

Helena Turola de Araujo Penna 38 Board Member 09/01/2005

Isabel da Silva Ramos Kemmelmeier 38 Board Member 03/21/2006

Ricardo Gus Maltz 54 Substitute 04/22/2010

João Luiz Borsoi 75 Substitute 04/15/2009

Roberto Frota Decourt 40 Substitute 04/22/2010


Management Compensation GRI 4.5

The Company’s compensation is based on the

following assumptions: the creation of sustain-

ability and long-term values, business goals and

strategies, best market practices, Vision, Mis-

sion, and Renner Values. These foundations are

intended to ensure a policy to attract profession-

als with competencies and values in line with the

Company, and to motivate them to develop their

careers in recognition of individual performance.

The Board of Director members’ compensation

includes a fixed portion that is competitive with

market practices and a floating portion, encour-

aging their effective participation.

On the other hand, the Executive Committee’s

compensation is defined by the Board of Direc-

tors supported by the People Committee, the

floating portion is directly related to achieving pre-

viously established goals, and total compensation

also includes a benefits package and the Stock

Option Purchase Plan. Hence, compensation for

performance by executive officers is closely relat-

ed to the objectives created for the year (goals) as

well as longer term ones (action plan). The Board

of Inspectors members have a fixed compensa-

tion base on that of executive officers.

Shares in possession of Renner board members and executive officers on December 31, 2012

Number of shares

% of equity capital

Board of Directors 76,001 0.06

Executive Committee 407,000 0.33

Board of Inspectors 0 0.00

Total 483,001 0.39

Breakdown of Executive Committee on December 31, 2012

Name Office Age

José Gallo Chairman (since 1991)* 61

Clarice Martins Costa Human Resources Officer (since 2006) 59

Haroldo Luiz Rodrigues Filho Procurement Officer (since 2008) 51

Paulo José Marques Soares Operations Officer (since 2010) 44

Adalberto Pereira dos Santos Administration and Financial Officer (since 2010) 52

Emerson Silveira Kuze Information Technology Officer (since 2012) 40

* Elected Lojas Renner’s superintendent on September 30, 1991 and elected CEO on March 15, 1999.


Renner seeks the creation of

sustainable and long-term value

Strategy and Management GRI 1.2 | 4.7 | 4.10

Committed to constantly overcoming chal-

lenges and achieving exceptional outcomes,

Lojas Renner devises its strategies in line with

the Values and principles that served to guide

it throughout its existence. Simplifying opera-

tions, valuing its internal stakeholders, training

new leaders, adjusting to consumer require-

ments in order to enhance the purchasing ex-

perience, strengthening the supply chain and

increasing productivity are some of the Com-

pany’s objectives.

Risk Management GRI 1.2

A cross-functional structure is in charge of risk

management at Lojas Renner. In addition to

the Internal Audit, Compliance and Loss Pre-

vention areas, the Company retains external

audit services. All the efforts in order to detect

and mitigate risks likely to harm Lojas Renner

are coordinated by the Audit and Risk Man-

agement Committee, created in 2012.

Prosperity of Company business depends on

consumers’ buying power. Hence, market risks

likely to affect the pace of the economy and

availability of income by the population, are the

most relevant to management. These include,

for example, instability in the Brazilian reais vs.

US dollars exchange rate, restrictions on over-

seas remittances, government interference in

www.lojasrenner.com.br/ri

To read more on Lojas Renner’s corporate governance bodies, such how

it operates and breakdown, see the Reference form and the By-laws at

www.lojasrenner.com.br/ir.

40 CORPORATE GOVERNANCE40

the domestic economy that may upset vari-

ables such as interest rates, inflation and taxes,

changes in regulations for extending credit,

among other.

In 2012 the Information Security (IS) area was

restructured and assumed a managerial posi-

tion in the Company, with structure apart from

the Information Technology area. The IS area’s

mission is to protect company information, man-

aging security risks by maintaining them within

acceptable levels.

Crisis Management GRI 1.2 | 4.11

The Communications in Crisis Situations Manual

defines processes for Lojas Renner to preserve a

responsible posture in crisis situations, in particular

with regard to its positioning with the press. This

attitude stresses the application of Values in day-

to-day life and reduces any likely friction in its repu-

tation and relations with publics of interest. This

document was devised jointly by the Corporate

Marketing the press relations areas, with involve-

ment by other departments, among which Loss

Prevention, Procurement, Legal Counsel, Human

Resources, the Controller, Financial Services, Infor-

mation Technology, Information Security, Logistics,

Administration Suppliers’ Management, Investor

Relations and Architecture and Engineering.

This manual’s printed version is handed out

to each manager when inaugurating stores.

Should a crisis situation occur, the Commu-

nications in Crisis Situations Committee is

in charge of devising the strategy, response

and positioning. Among the risks that Lojas

Renner may seek to mitigate with this model

are listed: upsetting of the corporate image

and reputation, discredit to the Company

and to it spokespersons before its strategic

stakeholders; creation of open conflicts (with

customers, officials, suppliers, journalists,

community, investors, etc.); exposure of con-

tradictions between Values and a practical

stance; financial losses; depreciation of assets

and of shares; lawsuits claiming indemnities.

Business Continuity Management GRI EC2 | DMA EC

Business Continuity Management (GCN) is dedi-

cated to detecting potential threats to the avail-

ability of the Company’s operating processes

and the likely impacts on business should these

threats become reality, and the definition of con-

tingency strategies and monitoring of the Busi-

ness Continuity Plan’s (PCN) effectiveness.

The PCN was devised based on the Business

Impact Analysis, which relates the financial im-

pact per hour of downtime to each business

process. The calculation included the value of

compensation, costs and benefits per area and

in some cases the image value and percentages

regarding non-compliance fines. The plan pro-

vides for actions to ensure the continuity of op-

erations, should employees not be able to use

the Company’s headquarters owing to physical

access restrictions, lack of electricity (blackout)

or adverse weather conditions.

Furthermore, the Information Technology area

has a disaster recovery environment dedicated

to the data center, which includes two data cen-

ters located in different spots and that replicate

the Company’s critical services. A testing and

simulation routine is under implementation in

order to ensure this plan’s efficacy, pursuant to

practices required by the Company’s PCN.

CORPORATE GOVERNANCE


Virtual courses on Code of Ethics principles and anti-corruption aspects(% of employees trained compared to the target public)

2012 2011 2010

Managers (managers and supervisors)

Code of Ethics 80 62 63

Loss Prevention 73 57 82

Prevention of Money Laundering 69 39 48

Non-managers (other staff members)

Code of Ethics 78 74 42

Loss Prevention 54 54 62

Prevention of Money Laundering 35 31 28

Fighting Corruption and Money Laundering GRI HR3 | HR6 | HR7 | HR8 | SO2 | SO3 | SO4 | DMA HR | DMA SO

Lojas Renner rejects any practices contrary to

legislation in force and to good market prac-

tices. In order to fight corruption and money

laundering, the Company is always concerned

in detecting and mitigating factors that facilitate

criminal practices. To this end, it discloses ethi-

cal conduct standards and provides specific

training to it staff members, confirm custom-

er documentation and monitors operations.

Should it detect a risk situation, the Compli-

ance area will investigate and submit results of

this examination to senior management.

The Conheça seu Cliente (Know your Cus-

tomer) practices with this purpose deserve to

be mentioned in the internal control structure,

which since its acceptance and in the course

of entire customer relationship, have allowed

Lojas Renner to know this customer well, if he/

she is conformity with legal requisites and may

be of any risk.

Besides receiving a copy of the Renner Code

of Ethics and Conduct on being admitted, em-

ployees are submitted to virtual courses that

stress Values and the responsible conduct

expected by the Company. In 2012, Lojas

Renner staff members trained in the Renner

Code of Ethics and Conduct virtual course

rose to 79% of the body of staff members.

In 2012 Lojas Renner also held the Ethics and

Fraud Workshop, involving 21 leaders. The

choice of public was based on the under-

standing that the Renner Leader is the chief

person responsible for promoting ethics in the

work environment and for caring for Company

resources, serving as an example for all other

employees. Aspects were discussed during

the workshop such as the concept of ethics

and its relevance to the Company, the im-

portance of Renner Leader’s ethical attitude

in detecting and reducing fraud. This training

course will have new groups every year.


Intangible AssetsManaging Lojas Renner’s intangible assets is

highly valuable, as it involves aspects inherited

from the founder and strengthened in the course

of almost one century. This is the outcome of an

impeccable background of daily practicing the

Values and the Enchantment Philosophy.

The Strength of the BrandAcknowledged by its stakeholders for being tu-

ned to fashion trends, for having a close relation

with modern women, and transparent in all of its

relations, the Renner brand depicts the concept

of enchantment. Lojas Renner is constantly lis-

ted in Top of Mind surveys and has a respectful

background, rejecting any non-compliant prac-

tices in connection with human rights related to

forced or child labor in its operations.

Intellectual PropertyRight people in the right places, passionate over

what they do and acknowledged for their distinc-

tive performance. With this strategy, Renner se-

lects and retains talents and provides everybody

with the same opportunities for them to grow and

develop themselves apace with their efforts and

achievements. All the people management prac-

tices are described in the Sustainability/Employee

Management chapter.

Technology and InnovationLojas Renner’s operations depend on the

functionality and operating stability of tech-

nological systems employed at the points of

sales, in the logistics area and in communi-

cations, besides specific applications for in-

ventory control and the creation of commer-

cial and financial performance reports. In the

course of recent years, the Company invested

in improvements and put in place new infor-

mation technology systems and equipment,

required to develop the business.

42 GOVERNANÇA CORPORATIVA


Global Pacts and Actions GRI 4.12

In 202 Lojas Renner decided to undersign the

Women’s Empowerment Principles (UN Wo-

men), the United Nations Organization Global

Pact (UNO) and the National Pact for Eradi-

cating Forced Labor, all of which formalized in

2013. This decision was taken following a reso-

lution by the Board of Directors and reflects the

Company’s convictions in the light of its commit-

ment with sustainable business management.

To Lojas Renner, in addition to being its pre-

ferred public, women are essential in the for-

mation of society, reference in the behavior and

conduct of people. Therefore, the ever greater

inclusion of women in economic activities is an

essential condition for creating strong econo-

mies, defining more just societies and achieving

development goals, sustainability and human

rights. In this regard, formal concurrence with

the Women’s Empowerment Principles stres-

ses the Company’s culture and is very closely

related to its strategy.

The Global Pact is a voluntary action that pro-

vides guidelines to encourage sustainable

growth strategy and citizenship by means of

leaders committed with ten principles. Its gui-

delines are in line with the Company’s attitude

and practices, including among others, topics

such as dignity at work, transparency in mana-

gement, discussions with the community and

respect for the environment.

The decision to concur with the Eradication of

Forced Labor Pact also has a lot to do with the

Company’s culture, as the commitment to fight

child or forced labor in its operations and those

of its suppliers and sub-contractors is provided

for in the Code of Ethics and Conduct.

During the same year Lojas Renner participa-

ted in the Rio+20 Conference’s Major Group,

in discussion groups on the empowerment

of women. This participation is related to the

Company’s long-ago commitment with this to-

pic, whether through the activities by Instituto

Lojas Renner or by adopting the Women’s Em-

powerment Principles.

Participation in Associations GRI 4.13

Instituto para Desenvolvimento do Varejo

(IDV): has as its key purpose the contribution

to sustainable development of the Brazilian

economy and the ethical and formal retail ac-

tivity. To this end, IDV represents in society 37

retail companies in different activities, taking

part in discussions with the public authorities,

and also prepares studies and proposals to

improve efficiency in the sector. The relation

between Lojas Renner and IDV dates back to

2004, when José Gallo, the Company’s chair-

man, was active as one of the entity’s foun-

ders. The organization is one of the represen-

tatives of the retail textile business. In 2012,

the lack of adoption of safeguards for the

apparel retail trade was one of the key topics

dealt with by the Lojas Renner team with IDV.

Associação Brasileira do Varejo Têxtil

(ABVTEX): represents the retail trade in rela-

tions with government bodies, manufacturing

business, trade entities and the market in ge-

neral. In this manner it promotes an exchange


of experiences and studies on topics that are

relevant to the activity, such as foreign trade,

taxation issues, social responsibilities and

supplier certification. Lojas Renner participa-

tes in the ABVTEX Management Committee

(quarterly meetings) and work groups for spe-

cific subjects (monthly meetings).

Carbon Disclosure Project (CDP): this is a

non-profit organization with the purpose of

creating a relationship among shareholders

and companies. CDP examines potential risks

and opportunities related to climate change

for participant companies. This is a questio-

nnaire prepared by institutional investors and

addressed to companies listed in the world’s

chief stock exchanges, in order to disclose

information on climate change policies. CDP

currently represents investors that jointly ac-

count for US$87 trillion in transactions. Lojas

Renner responds voluntarily every year to the

CPD investors’ questionnaire.

Awards, Acknowledgements and Certifications GRI 2.10

Interbrand ranking, 11th Most Valuable Brand in Brazil and 1st in Brazil’s Retail Trade

Exame 2012 magazine, Best and Largest, 1st place in the Retail class

Dinheiro magazine, Among the Best, 1st place in the Retail class

Carta Capital magazine, Most admired companies in Brazil, 1st place in the Textile Retail class

Época Negócios magazine, 360th rank, Best Fashion Company

Capital Aberto magazine, Best Company for Shareholders, Governance class

DCI newspaper, DCI Award, Most Admired in the Trade Sector


150 Best Companies in People Practices and 50 Psychologically Healthy Companies – Gestão RH

Among the 10 Most Admired HRs in Brazil – Gestão RH

3rd place in the above 10,000 employees class – Valor Carreira and Aon Hewitt

13th ranking in the list of 50 Best CEOs in Latin America – Harvard Business Review

José Gallo, Freedom-Businessman – Instituto de Formação de Líderes de Minas Gerais

Latin America Executive Team Ranking Best CEO, 1st place by sell side and by buy side, Best CFO, 2nd place by sell side and by buy side, Bet IR Professional, 1st place by sell side and by buy side; and Best IR Program, 1st place by sell side and 2nd place by buy side – Institutional Investor Magazine

About magazine Popular Vote Award, Announcer of the Year, Grand Prix 2012 class; Gold, silver and bronze in Fashion class; Gold and silver in Retail class; Gold in Institutional and Corporate class, totaling eight awarded commercials or spots

Confidence Brands 2012, winner in Department Store class – Ibope and Seleções magazine

Top Consumer 2012 – Excellence in Consumer Relations and Respect for the Environment – Consumidor Teste magazine in partnership with Instituto Nordeste Cidadania

PCI DSS (Payment Card Industry, Data Security Standard) Certification, market standard that establishes a security model to protect confidentiality of customers’ credit and charge card data

500 largest in the South, 7th ranking in Rio Grande do Sul and 22nd in overall ranking – Amanhã magazine

Top of Mind, most recalled brand in Fenale Apparel Store class (13th time) and preferred brand in new Top Y class (young consumers) – Amanhã magazine

Brands for Who Decides, most recalled brand in Female Apparel and Retail Network, also the public’s favorite – Jornal do Comércio newspaper (Rio Grande do Sul)


46 OPERATING, BUSINESS AND FINANCIAL PERFORMANCE

Operating, Business and Financial Performance


In a challenging economic scenario, Lojas Renner raised sales and operating cash generation

Lojas Renner ended 2012 with a number of

achievements to commemorate, having in-

creased total sales by 19.3% and 20.6% in

operating cash generation. The expansion

plan was maintained, in line with long-term

planning, and investments totaled R$382.3

million, directed among others to inaugurate

35 stores (Renner, Blue Steel and Camicado).

Expectations for the coming years are that the

market will grow briskly, driven by the econ-

omy’s growth and the population’s increased

earnings, and above all by the industry’s con-

solidation, reducing informality and fragmen-

tation rates. This scenario will provide the

Company with a relevant opportunity, albeit

less efficient in the short term, to expand, con-

solidate and also to gain market leadership in

the near future.

Operating Performance Though facing the impacts of uncertainty in the

economic scenario during the first semester, the

industry as a whole reflected a trend for slight

improvement throughout the year. Recovery

of the level of activity resulted chiefly from the

domestic increase in purchasing power, with

greater access to credit and job stability.

Pursuant to the Monthly Retail Survey (PMC)

by Instituto Brasileiro de Geografia e Estatística

(IBGE), nominal retail sales volume and revenues

rose 8.4% and 12.3% over the year respec-

tively, while the textiles, clothing and footwear

increased 6.4% in nominal revenues. Lojas

Renner grew 18.0% according to this same indi-

cator, far from the encouraging results of recent

years but still well above the industry’s average,

pointing to possible gains in market share. This

distinctive performance is the outcome of the

Company’s culture, determined to achieve ex-

ceptional results and focused on quality.

The Fashion Market GRI 2.8

Clothing purchases in 2013 should total R$129 billion, or yearly per capita expenditures of R$786.39.

Most purchased items in virtual stores

In the Internet...

Among those that keep up with fashion...

Chief consumers...

dressesfemale blouses

shoes sneakers sandals

59% 41%40%

50.3%

34%74%

38%

79% 85% 68%

69%

they are between 25 and 34 years old

live in the Southeastern region

purchased footwear

they purchased clothing and accessories

of the population seeks to keep up with fashion and styles

belong to class AB

plan carefully the purchase of costly goods

look for offerings and discounts

believe that well-known brands are better

In July 2012...

Class

39.7% 40.4%class B class C

Source: Ibope 2012

women men


Shared Services CenterImplementation of Lojas Renner’s Shared Ser-

vices Center (CSC) was begun in 2012. The

structure will consolidate and standardize

support processes, leading to efficiency gains

and enhanced internal controls. By taking over

these activities, the CSC will allow the busi-

ness to drive their efforts to strategic issues,

new projects and challenges. With the struc-

turing organized in three stages and estimated

for conclusion in 2014, the project is in line

with the Company’s strategic plan, in readi-

ness for the vigorous rise in operations by the

corporate structure.

Financial Services HighlightsThe Cartão Renner card accounted for 52.1%

of total store sales during the year and the rec-

ognized loss percentage was of 2.7%, both

below the previous year’s figures, of 54.7%

and 2.9% respectively. The Meu Cartão credit

card launched in 2010 ended 2012 with a to-

tal of 1.1 million cards issued. With regard to

personal loans, the default rate dropped, as

opposed to the market, and stood at 15.5%

of the portfolio at the fiscal year-end.

Know more about the financial services provided

by Lojas Renner by means of the Realize Soluções

Financeiras brand, in the Profile chapter.

StoresThere was a record number of store openings

in 2012, 24 Lojas Renner, 1 Blue Steel and 10

Camicado stores, increasing the Company’s

sales area by 14.2%. In terms of productivity, the

average sales by Lojas Renner and Blue Steel

was of R$9.9 thousand per square meter, and

of R$8.5 thousand per square meter Camicado

stores. The ceaseless search for efficiency was

converted into actions in the course of the year,

such as a new environment and refurbished

units, adoption of new visual merchandis-

ing project and steps to enhance consumers’

purchasing experience. During 2012, 24 Lojas

Renner stores were remodeled and remained

open to the public during the work period.

With regard to Camicado, operating integra-

tion efforts required attention during the year.

Next, an adjustment in the product mix re-

ceived priority, with increased variety, in partic-

ular of imported goods. To this end, Camicado

was enabled to proceed with direct imports, to

take place using the same structure employed

for imports of apparel. Projects for Camicado

include organic growth, an increased number

of stores and stressing venues in shopping

malls. The strategic model is the same as that

adopted for retail apparel stores, benefiting

from all of Renner’s accrued expertise.


Key Indicators GRI 2.8 | EC1

Key Indicators (R$ thousands) – consolidated 2012 2011 2010

Total net operating revenues 3,862,508 3,238,543 2,751,338

Total net revenues from sale of goods 3,461,960 2,896,617 2,462,683

Total net revenues from financial goods/services 400,548 341,926 288,655

Total gross profit 2,228,262 1,842,414 1,541,879

Gross profit from retail transactions 1,845,548 1,521,372 1,280,316

Operating profit after financial income 508,820 475,393 431,771

Net profit for fiscal year 355,401 336,907 308,028

Number of shares at end of fiscal year 124,170 122,821 122,349

Adjusted retail Ebitda 565,591 467,553 384,075

Total adjusted Ebitda 714,449 592,626 505,120

Operating indicators – Lojas Renner and Blue Steel 2012 2011 2010

Number of stores 192 167 134

Sales area (thousands of m²) 361.3 318.0 274.7

Average m² per store (thousands of m²) 2.0 2.0 2.1

Same stores growth (%) 8.8 7.2 10.3

Number of cards at end of period (millions) 20.8 19.0 17.1

Number of cards issued during period (thousands) 1.739 1.904 1.878

Share in sales (Cartão Renner) 52.1 54.7 56.6

Share in sales (0+5) 40.2 42.8 43.6

Share in sales (0+8) 11.9 11.9 13.0

Share in sales (sight) 24.9 23.8 23.4

Share in sales (credit cards) 23.0 21.5 20.0

Cartão Renner average ticket 154.95 145.53 132.16

Company average ticket 111.9 105.01 97.65

Personal Loan portfolio (R$ millions) 112.3 101.1 98.5

Personal Loan portfolio (present value – R$ millions) 82.4 74.6 72.0


Financial and Economic Analysis GRI 2.8 | EC1

Net Revenues from Sale of Goods

Result: R$3,462.0 million, a 19.5%

increase over 2011.

Factors: operating actions to enhance

purchasing experience and improve the

macro-economic outlook.

Same stores sales:

8.8% growth over the period.

Operating Expenses

Result: growth in line with net revenues of 19.2%, totaling

R$1,223.5 million at fiscal year-end.

Future: implementation of Shared Services Center (CSC)

and conclusion of Camicado integration should optimize

operating leverage.

Gross Profit from Retail Transactions

Adjusted Retail Ebitda

Result: 21.3% growth for the year, totaling

R$1,845.5 million, with a 53.3% gross mar-

gin from retail transactions, 0.8% percent-

age points above the previous year, even

after including Camicado with structurally

weaker margins.

Result: R$565.6 million for the year, a per-

formance 21.0% above that for 2011, with a

16.3% adjusted retail Ebitda margin, as against

16.1% for 2011.

Factors: operating actions related to the

supplier chain, such as support by dedi-

cated teams from Asian suppliers and inten-

sified three-sided negotiating tools in local

procurement, in addition to the lower cost of

cotton and other fibers.

Factors: growth in revenues above rise in

costs and strict control of expenses, though

with increased logistics expenses and greater

profit sharing.

Breakdown of net revenues (%)

95.4

4.6

Lojas Renner

Camicado

Breakdown of operating expenses (%)

76.0

24.0

General and administration

expenses

Sales expenses


Income from Financial Services

Breakdown of income from financial services (R$ thousands) 2012 2011 2010

Revenues, net of funding and taxes 382,714 321,042 261,562

Sales without charges (0 + 5) 91,584 79,635 67,000

Sales payable in 0 + 8 installments with charges 171,310 150,485 114,018

Meu Cartão co-branded card 34,417 6,962 -

Personal loans and other financial services 85,403 83,960 80,544

Credit losses, net of recoveries (126,081) (109,427) (88,172)

Sales without charges (0 + 5) (31,965) (28,282) (20,948)

Sales payable in 0 + 8 installments with charges (59,898) (54,039) (46,867)

Meu Cartão co-branded card (15,461) (2,724) -

Personal loans and other financial services (18,757) (24,382) (20,357)

Operating expenses (Cartão Renner and Financial Services) (107,775) (86,542) (52,435)

Income from financial services 148,858 125,073 121.045

% on Company’s total adjusted Ebitda 20.8 21.1 24.0

Company’s Total Adjusted Ebitda

Net Financial Income

Result: R$714.4 million, a 20.6% increase

over the preceding year. The total adjusted

Ebitda margin was of 20.6%, slightly above the

20.5% obtained in 2011.

Financial income: R$33.4 million, 33.7%

below the preceding year owing to the lower

cash level managed during the year and the

reduced Selic (inter-bank) rate reduced market

rates in general.

Financial expenses: R$83.8 million in 2012

as opposed to R$47.5 million in 2011 – this

increase is justified by a R$600.0 million de-

Factors: business scenario and second se-

mester sales, end of remodeling process, strict

control of expenses and good income figures

for Financial Services.

benture issue in 2011 and 2012, by the end

of part of fiscal benefits in Santa Catarina and

by the change in foreign exchange hedging in-

struments for imported goods.

Performance: R$50.4 million in net expenses

for the year as compared to R$2.8 million net

revenues in 2011.


Indebtedness/Net Cash and Cash Equivalents

In June 2012 the Company held its fifth

public offering of common non-convertible

debentures at a br AA+ rating attributed

by Standard & Poor’s. The issue involved

R$300 million, which jointly with the 2011

issue formed the Lojas Renner new equity

structure. These funds are being allocated

for the Company’s organic growth.

Net cash and cash equivalents: R$38.6

million at fiscal year-end, as compared to

R$215.0 million available in late Decem-

ber 2011.

Indebtedness and cash (R$ millions)

48,7

363,5

644,7

2010 2011 2012

Profit for 2012 was

of R$355.4 million, 5.5%

above that for the

previous year

683,7

578,3

683,3

Total debt

Cash



Performance of Shares

Having appreciated 64.7% during the year,

Lojas Renner ended the period quoted at

R$79,75. The average daily volume traded

rose to R$58.4 million, in line with the average

recorded in 2011.

Net ProfitResult: R$355.4 million, with a 10.3% net

margin. Compared to the previous year, a

5.5% rise in profits and a 1.3 percentage point

decline in margin.

Factors: greater financial expenses arising

from the new equity structure and increased

depreciation level.

Dec 11

LREN 3 x IBOV LREN 3 + 64.7%

IBOV + 7.4%

Apr 12 Aug 12Feb 12 Jun 12 Oct 12Jan 12 May 12 Sep 12Mar 12 Jul 12 Nov 12 Dec 12


InvestmentsIn accordance with its long-term planning, the Company put in place several

important projects in the course of 2012, in which R$382.3 million were in-

vested, including the opening of 25 retail apparel stores (Renner + Blue Steel)

and 10 Camicado, in addition to the remodeling and updating of 24 stores.

Compensation to Shareholders Payouts of dividends and interest on capital (JCP) to Lojas Renner share-

holders takes place pursuant to the Corporation Law and corporate By-laws,

equal to a minimum of 25% of the net profit found in each fiscal year. In recent

years the Company paid out dividends and JCP equal to 75% of net profit.

18.7

44.9

19.9

4.0

12.5

New stores

Distribution Centers

Remodeling of facilities

Others

Technology equipment and systems

Breakdown of investments in 2012 (%)

New stores

Remodeling of facilities

Technology equipment and systems

Distribution Centers

Others

Investments (R$ millions)

160.2

296.6

382.3

2010 2011 2012

72.5

22.3

37.8

12.315.3

15.7

76.1

47.6

71.3

171.6188.3

29.2

39

28.3

11.8

Compensation to

shareholders (R$ millions)

231.0252.7

266.6

2010 2011 2012

3.3%4.3%

2.7%

Compensation to shareholders

Dividend yield

Payout 75%

Payout 75%

Payout 75%

Managing Sustainability

Overall and specific guidelines for each relations stakeholder serve to orient actions by Renner

Lojas Renner considers the issue of sustainability strategically and directs it actions based on overall

guidelines and according to stakeholders (please see diagram). The Sustainability area (which until late

2012 was referred to as Social Responsibility) prepared a proposal for the Lojas Renner Sustainability

Policy. By means of the Sustainability Committee that provides guidance and consolidates efforts in the

area, as of 2013 this policy will require approval from the Executive Committee and the Board of Directors.

Overall guidelines

Awareness and training of staff members to become Corporate Sustainability players

Enhancing of the Code of Ethics and Conduct as the guideline for Corporate Sustainability practices

Advising on the Company’s Corporate Sustainability practices to internal and external stakeholders

Monitoring and assessment of Corporate Sustainability practices

Guidelines per stakeholders

Environment: structuring of an environmental program considering the liabilities created by the business

Internal Stakeholders: enhancing tools and processes in connection with employees

Suppliers: structuring the Renner Supplier Relations and Support Program

Customers: structuring the Renner Customer Relations Program

Communities: structuring the Renner Social Investment, Government and Society Program

Government and Society: consolidating the company’s leadership and social influence

Strategic management and sustainability pillars

Environmental Aspect DMA EN

Commitment with the environment is one of

Lojas Renner’s working assumptions, in accor-

dance with its responsible management culture.

The Company seeks continually to improve its

environmental management practices, keeping

up with modern women, who are ever more de-

manding and aware in their purchase decisions.

Efficiency in the use of resources and responsi-

bility in the disposal of residues are encouraged

internally as well as in their stakeholder relations.

In this regard, Lojas Renner has a number of

sustainability practices that need to be men-

tioned, as in the case of the Solid Residue

Management Program (PGRS), the EcoEstilo

project, greenhouse gas emissions manage-

ment and the use of certified paper in its dis-

closure materials, which will be detailed further

ahead in this chapter. GRI EN 26

The company seeks to use low environmental

impact materials and prefers to use paper with

the Forest Stewardship Council (FSC) seal in its

catalogues and campaign materials.

Renner¹ used materials (in units except where indicated) 2012 2011 2010

A4 paper (tons)² 100.5 86.5 n/a

Paper in catalogues (tons)³ 131 n/a n/a

Alarms available 43,697,351 n/a n/a

Hangers available 17,122,539 10,166,575 n/a

Hangers used (all types) 55,175,018 58.076.483 62.033.421

Plastic glasses 13,467,200 11,246,100 n/a

Paper packaging 1,632,925 18,000 n/a

Mailing list 8,200,000 5,720,000 n/a

Biodegradable plastic bags 6,279,000 2,886,200 n/a

Oxy-biodegradable plastic bags 39,630,500 38,782,500 n/a

Toners used and gathered4 3,337 1,543 542

1 Includes Lojas Renner and Blue Steel data.² Roughly 90% FSC recycled.³ 100% FSC source. 4 100% of used toners are gathered by suppliers for re-use (contractual clause).

Camicado* used materials 2012 2011 2010

A4 paper (tons) 175,500 186,938 94,688

Recycled A4 paper (tons) 28,238 n/a n/a

Cardboard (tons) 73,539 75,055 n/a

Used toners (units) 832 714 513

Used cartridges (units) 1,746 1,464 824

* Includes sheets for printing wedding lists.

Materials TP EN1 | EN2 | EN26 | EN27 | DMA EN

58 MANAGING SUSTAINABILITY

There is also legal compliance in connection with

the use of biodegradable and oxy-biodegrad-

able bags in stores, and in administration offices

activities with materials focus on gathering and

re-using 100% of cartridges and toners. Hence,

Lojas Renner improves its responsible environ-

mental practices and reduce the creation of

residues and emissions, re-using materials and

reducing their impact in the environment.

Energy and Energy Efficiency GRI EN3 | EN4 | EN7 | EN26 | DMA EN

Part of the energy used by Lojas Renner is ac-

quired in the Free Energy Market, which works

under specific agreements and pre-established

pricing supply period conditions. Energy ac-

Water: Sourcing, Use and Re-use GRI EN8 | EN9 | EN10 | EN21 | EN26 | DMA EN

The Company’s headquarters uses an average daily 146 cubic meters of water, and owing to this daily control,

Lojas Renner is able to quickly detect any changes in volume. During 2012 it installed aerating devices in the

units and exchanged conventional taps for others that shut off automatically, reducing the use of water.

All the water used in the headquarters and units comes from public supplies and is disposed of in the rainwater

or sewage networks. However, a new administration area building now being planned will have gray water re-

use systems installed (water from showers and washbasins).

Electricity consumption (GJ) 2012 2011 2010

Electricity consumption1 460,854 443,020 334,100

Use of diesel oil in generators 826.90 751.70 675.99

Total use of direct and indirect energy (GJ) 461,680.90 443,771.70 334,775.99

% renewable energy2 3.28 n/a n/a

¹ There was a change in electricity consumption unit regarding the unit used in the 2011 report, the unit was GJ thousands and is now GJ.² Considering that energy in Brazil comes from different sources that are combined in the distribution network, the percentage of renewable source energy considered by

the Company is that purchased through the Free Energy Market and currently supplying 12 stores.

GRI EN3 | EN4 | EN7

quired by the Company under this system is

100% renewable and comes from 4th Gen-

eration Small Hydroelectric Plants (PCH). This

model also allows the reduction of electricity

costs, estimated at R$3.4 million annually after

the migration of 33 units. GRI EN7

In its search for energy efficiency, the Company

held awareness campaigns among its staff

members, installed LED lamps and changed

equipment for low-energy consumption and

more efficient models. All of these improve-

ments are provided for in the new store proj-

ects. To know more on other efficiency actions,

please see the Impact by Transportation sec-

tion in page 65. GRI EN5


Emissions Inventory TP EN16 | EN17 | EN18 | EN26 | EN29 | DMA EN

Lojas Renner has been preparing a Greenhouse Gas (GHG) emissions inventory since 2010 in order to measure and

manage its emissions. This inventory will be employed as an ongoing process by the Company and will enable it to

detect the progress of emissions mitigation efforts.

Direct and indirect emissions – scope 1 and 2 (tCO2e) 20121,2 2011 2010

Scope 1 (generators, vehicle fleet and refrigeration gases) 1,092 575 416

Scope 2 (purchased and consumed electricity) 9,461 3,636 4,701

Total emissions – scope 1 and 2 (tCO2e) 10,553 4,211 5,1171 The emissions inventory includes Lojas Renner, Blue Steel, Administration, Credit and Collections Department, CDs and Camicado. The inclusion of Camicado in the GHG emissions inventory for 2012 prevents yearly comparisons regarding the efficacy of mitigation projects.² Calculations regarding GHG emissions took place based on the GHG Protocol’s spreadsheet v2012.0.1.

Indirect emissions – scope 3 (tCO2e) 20121,2 2011 2010

Solid residues 0 15 n/a

Business trips 3,019 3,140 1,399

Transportation of goods 10,444 3,859 26,758

Total emissions – scope 3 (tCO2e) 13,463 7,014 28,157 1 The emissions inventory includes Lojas Renner, Blue Steel, Administration, Credit and Collections Department, CDs and Camicado.

The inclusion of Camicado in the GHG emissions inventory for 2012 prevents yearly comparisons regarding the efficacy of mitigation projects.² Calculations regarding GHG emissions took place based on the GHG Protocol’s spreadsheet v2012.0.1.

57 tCO2e 0 tCO

2e36 tCO

2e 998 tCO

2e 9,461 tCO

2e 3,019 tCO

2e 10,444 tCO

2e

Scope 1 Scope 3Scope 2

Air conditioning Purchased and use electricity Business tripsResidues Transportation of goodsCompany vehiclesGenerators


The emissions inventory reflects

the Company’s concern with

climate change

In 2012 the Lojas Renner emissions inventory

started to include operations by Camicado.

Hence, it is not possible to compare it with

2011 in order to confirm the reduction target

of 2% of emissions. Yet this inclusion reflects

the Company’s commitment in continually en-

hancing its control of indicators and emissions

management, the 2% reduction target for the

performance indicator will be preserved for

2013 (total emissions per m² of sales area).

In addition to controlling its emissions inven-

tory, Lojas Renner participates in a number

of actions related to greenhouse gas (GHG)

management. This involvement reflects the

Company’s concern with responsible ac-

tions that exert a declining negative impact

on the environment.

An example is the publication of its inventory in

the Brazilian GHG Protocol Program’s platform,

allowing anybody to have access to this informa-

tion. Brazilian GHG Program encourages a cor-

porate culture in the preparation and disclosure

of emissions inventories, and rates the compa-

nies that belong to its platform with regard to

transparency and quality of data reported. Lojas

Renner was awarded the silver seal in 2012.


The Carbon Disclosure Project (CDP) is a non-

profit organization with the purpose of creat-

ing a relationship among shareholders and

companies focused on business opportunities

resulting from global warming. The entity also

assesses information by companies that com-

plete the questionnaire. In 2012 Lojas Renner

improved its performance in the CDP assess-

ment, rising from E to D in the Performance

Score and being placed above average in the

Governance & Strategy, Emissions Manage-

ment and Emissions Reporting requisites.

In addition, the Company is a part of the

BM&FBovespa’s Carbon Efficient Index (ICO2)

since 2011. All the 39 ICO2 members in the year

were selected for adopting transparent practices

in connection with their greenhouse emissions.

Solid Residue Management Program (PGRS) TP EN22 | EN23 | EN24 | EN26 | DMA EN

Lojas Renner runs the Solid Residue Manage-

ment Program (PGRS) since 2010, based on

the Solid Residue National Policy Law (PNRS).

The PNRS defined the principle of shared re-

sponsibility for product life cycle and has re-

verse logistics as its essential aspect – a set

of disposal actions that expedite the return of

residues to their source, for treatment or re-

use in new products.

Lojas Renner’s Solid Residue Management

Program implemented in all the Renner and

Blue Steel units is based on the principle of

reduced creation and correct disposal of resi-

dues. The program defines procedures and

criteria for classifying, separating, packaging,

gathering and transporting, recycling and the

final disposal of residues.

The entire disposal process is certified by spe-

cialized firms. The same trucks that go from

the Distribution Centers (CDs) to the stores

loaded with goods, return to the CDs with the

residues created by the units. Separating resi-

dues according to type takes place in the CDs

(recyclable, non-recyclable and hazardous

residues) for the correct final disposal (recy-

cling, industrial landfill or co-processing). Re-

mittance of residues is controlled on a weekly

basis by means of invoices, controlled by the

CDs and managed by the Sustainability area,

which discloses the stores’ residue ranking.

The three mist committed stores for each

month are listed in the Planeta Renner maga-

zine, available to internal stakeholders.

Among the chief actions covered by the pro-

gram in 2012 are the store encouragement

and recognition campaigns and disclosure of

the Solid Residue Management Manual. Over

one thousand tons of residues were gathered

during the year. The Company had no cases

of spills during the removal of residues and it

does not create, transport or exports residues

deemed to be hazardous, pursuant to the

terms of Basel Convention. GRI EN23 | EN24

62

The smart logistics operation optimizes costs in solid residue management


800tons

of residues were remitted for

recycling

Approximately

Residues created (in tons, save where indicated) GRI EN22

Disposal 2012 2011 2010

Paper/cardboard Recycling 618.81 634.3 123.65

Plastic Recycling 151.64 134.36 20.51

Metal scrap Recycling 2.65 3.78 7.33

Technological residues¹ Recycling 7.22 11.38 n/a

Other non-hazardous residues² Recycling/landfills/co-processing 237.77 78.61 n/a

EcoEstilo Industrial landfill 9.12 4.61 1.31

Sundry scrap (m³)³ 610 135 92

Total non-hazardous residues created6 1,027.21 867.04 152.80

Cells and batteries Industrial landfill 4.12 4.85 0.01

Fluorescent lamps (units)4 Decontaminating and recycling 44,729 26,629 672

Other hazardous residues5 Industrial landfill 4.12 0 0

Total hazardous residues created6 8.24 4.85 0.01

1 Technological residues are remitted to outsourced firms that re-use or recycle these materials and correctly dispose of residues that are not re-used. ² Merchandising materials, fixed assets, dummies and unmatched footwear. ³ Lumber, pallets, rubble and organic residues; Lojas Renner has no data on tons for this kind of residue. 4 Lamps are remitted in units to the firm that decontaminates and recycles. Hence, it is more correct to inform units disposed of rather than weight (which previously was

estimated and did not consider different lamp models). 5 Contaminated residues that cannot be recycled.6 Camicado residues are not included, as they are part of the residue management programs in the shopping malls where the stores are located. The Solid Residue

Management Program has not been put in place yet in Camicado.

GRI EN22


EcoEstilo TP EN 26 | EN27

The EcoEstilo Project launched in 2011 ac-

counted for 9.12 tons of residues gathered un-

der the Solid Residue Management Program

in 2012. This is an action by Lojas Renner that

encourages customers, consumers and em-

ployees to discard toiletry and beauty residues,

whether or not purchased in Lojas Renner, in

appropriate bins available in all the stores. The

packaging gathered is disposed of in an environ-

mentally correct manner by Lojas Renner. It was

put in practice in 2011 and is part of the Lojas

Renner Solid Residue Management Program.

Besides the goods discarded by customers, the

project is also aimed at testing samples in the

stores and defective beauty goods.

At the time of purchase of toiletry goods, custom-

ers receive an explanatory leaflet on the impor-

tance of returning packaging and the appropri-

ate disposal of residues in order to preserve the

environment and natural resources. They are also

informed that they may discard bottles and pack-

aging of any beauty products in the stores’ bins.

Virtual courses at Academia Renner and Uni-

versidade Renner (please see these in the Em-

ployees item) on residue management and the

EcoEstilo Project are provided to employees.

Since the introduction of EcoEstilo, the environ-

mentally correct disposal has taken place of 15

tons of beauty and toiletry resides.

See how EcoEstilo works

Use of toiletry and beauty products

Correct discarding of bottles and packaging

Separation according to type of residues

Final disposal

Recycling: plastic, paper and cardboard

Industrial landfill: non-recyclable residues


Transportation Impacts GRI EN11 | EN12 | EN13 | EN14 | EN15 | EN25 | EN29 | DMA EN

The increase in the Company’s distribution

capacity and the review of the procurement

logistics processes were important highlights

in the Supply Chain Project. This action which

is still in progress includes cross-functional

teams from Procurement, Logistics and IT,

which in 2012 were called on to implement

a specialized distribution cell and to build the

Rio de Janeiro Distribution Center, with auto-

mation equipment new to Lojas Renner and

to Brazil. Automation made it possible to re-

duce the CD built-up area by 11%.

The CD in the state of Rio de Janeiro joins

those already in place in Palhoça (SC) and

São Bernardo do Campo (SP), in order to

deliver the right goods at the right time. They

are all located close to areas with a greater

concentration of suppliers, stores and the

country’s main highways. The Company’s

stores CDs are located in urban areas, where

there is no direct impact on areas with a high

rate of bio-diversity, protected or restored

habitats or protected areas adjacent to these.

GRI EN11 | EN12 | EN13 | EN14 | EN15 | EN25

The location of CDs is also strategic as they

favor a regionalized distribution of goods:

suppliers’ delivery network and remittance to

stores is always based on the definition of the

shortest routes possible, avoiding unneces-

sary traveling distances. Provisioning follows

the procedures shown above.

Transporting goods accounted for 44% of

emissions by the Company in 2012 (equal to

scope 3), above the 34% recorded in 2011.

This increase resulted from the inclusion of

Camicado in the inventory.

A Suppliers

CD RJ CD SP CD SC

B Suppliers C Suppliers


Mitigation Actions and Investments in Sustainability TP EN18 | EN26 | EN28 | EN30

Lojas Renner sponsors a number of actions to reduce the use of natural resources, to encourage

the appropriate disposal of residues and awareness by its stakeholders on responsible consump-

tion. Investments in management, prevention and mitigation of impacts rose to R$278,068.00

for the year. In recognition of the environmental management efforts, Lojas Renner was awarded

the ECO-WBrasil, a Certificate for Installing Sustainable Materials, attesting compliance with do-

mestic and international environment legislation. The Company knows no bounds for compliance

with environmental aspects. Proof of this is that in 2012 there were no cases of expressive fines

imposed and of non-conformity with rules, laws and regulations. GRI EN28

Please see below a number of highlighted actions:

Investments in sustainability* (in R$) 2012 2011 2010

Treatment and disposal of residues 242,093 185,618 25,020

Mitigating environmental impacts 25,875 n/a n/a

Environmental management 10,100 85,000 253,158

Grand total of investments 278,068 270,618 278,178

* Considering investments in Lojas Renner and Blue Steel only.

Lower water consumption: in Company headquarters, saving water was obtained by installing efficient equipment, with taps that shut off automatically.

Neutralizing GHG emissions: Lojas Renner took part in the Descalvado Carbon Project, involving restoration of 41 hectares of permanent preservation areas (APP) in the municipality of Anhembi (SP), located on the edge of the Barra Bonita reservoir. This action consisted in the acquisition of 575 tons of carbon credits, employed to neutralize Scope 1 emissions in the 2011 greenhouse gas emissions inventory.

Lower electricity consumption: use of LED lamps and changing for more efficient equipment.

Awareness: the Consumer Vibes in-house campaign encouraged staff members to avoid wasting natural resources.

Products: the Alchemia Bio product line (read more in page 22) is bio-degradable, packaged in materials certified by the Forest Stewardship Council (FSC) and containing no petroleum derivatives, such as Vaseline, in its formula. GRI EN6


The world’s largest fan letterWhat has pop star Madonna’s tour to do with Lojas Renner’s sustainability actions? In 2012, the Company’s awareness style combined both of these initiatives in one pioneering action.

By means of Facebook application and the Twitter #cartamadonna hashtag, fans were able to send messages, love letters, photos and images to the singer, aiming to write the world’s largest fan letter. This action resulted in 3425 messages to the pop star, which were disclosed innovatively in mobile projections on several seaside locations in Rio de Janeiro, the city that staged her tour’s first show in Brazil.

A selection of messages was printed on canvas and formed a kilometer-long letter, unrolled on the seaside at Ipanema from the hotel where Madonna was staying. Passing fans were called to interact by leaving a message.

This action created commitment and noise, and attracted attention owing to the purpose for all this canvas: the creation of 2 thousand eco-fashion bags. Producing the sustainable bags involved re-use of post-consumer materials, adding design value, and created income for women undergoing semi-open imprisonment and for self-employed seamstresses in the state of Rio Grande do Sul.

The bags are part of a kit sent to fans who were drawn in a promotion of 1500 tickets for the pop star’s shows in Brazil. The entire action involved Madonna herself, who was given an iPad with all of the messages that, had they been printed, would produce a letter of over 4 kilometers in length.

67

Staff Members TP LA1 | LA2 | EC7 | DMA EC | DMA LA | DMA HR

Lojas Renner knows that its greatest assets

are its employees and therefore sponsors a

number of action to value its human and intel-

lectual capital. Attention and intense experi-

ence with the Renner Values take place as of

the first days on the job in the Company, with

the start of the Welcome Program. During

the first three months, employees undergo a

number of activities to ease their integration,

and exercise the Renner attitude.

Enchanting employees is the start of a vir-

tuous circle that will end up by enchanting

all of the Company’s stakeholders. That is

why Lojas Renner invests in people manage-

ment, continually enhancing aspects such as

compensation, organizational environment,

health and safety, training, career and com-

munications. It also adopts the 5S Program

in its units since 1994, in order to disclose a

culture of encouraging quality.

Besides not having a specific admission and

succession policy granting priority to profes-

sionals in the communities in which it oper-

ates, Lojas Renner trains professionals locally

for its activities, chiefly due to the nature of

rapid dissemination. The business dynam-

ics provides for opportunities in countrywide

mobility. GRI EC7


Those who Enchant TP LA1 | LA2 | DMA LA

444 2012 276 2011 262 2010

1,119 2012 1,108 2011 1,110 2010

1,584 2012 1,503 2011 1,213 2010

6,576 2012 6,097 2011 5,684 2010

5,192 2012 5,051 2011 4,756 2010

Breakdown by region

According to function

Lojas Renner and Blue Steel Employees* 2012 2011 2010

Executive Committee 6 6 6

Leaders (managers, coordinators and supervisors) 1,124 956 856

Administration (analysts and similar) 359 289 255

Operations 12,902 12.232 11,488

Others (apprentices, trainees and interns) 524 552 420

Total per function 14,915 14,035 13,025

* Total employees includes only those admitted under the CLT statutes and interns, and does not include temporary and outsourced professionals. There is a seasonal variation during the months prior to Christmas and Mothers’ Day. However the percentage changes are not available as they depend on information not currently monitored, such as temporary and outsourced people.

Camicado employees per function (2012)

133

21

647

33

Leaders (managers, coordinators and

supervisors)

Administration (analysts and

similar)

Operations

Others (apprentices, trainees and interns)

Camicado employees per region (2012)

32

642

160Center-West

Southeast

South


Turnover in operations 2012

Renner and Blue Steel Camicado

Admissions Terminations Admissions Terminations

Executive Committee 0 1 0 0

Leaders (managers, coordinators and supervisors) 29 112 35 44

Administration (analysts and similar) 98 74 18 8

Operations 7,379 6,489 505 555

Others (apprentices, trainees and interns) 636 565 43 33

Total admissions and terminations for 2012 8,142 7,241 601 640

Turnover rate per region Renner and Blue Steel (%)* 2012 2011 2010

Center-West 47.78 54.69 43.75

Northeast 31.48 29.73 34.47

North 50.56 52.03 45.66

Southeast 48.43 45.57 43.80

South 41.49 38.07 39.81

*The average turnover rate for Lojas Renner and Blue Steel for 2012 was of 44.89%.


A special uniform

ENCHANTMENT STORY

I received a call in January from Dinair, commercial supervisor in the 06 store in Joinville (SC). As I am in charge of purchasing uniform for stores, she got in touch with me because she was uncertain on how to proceed with a special employee, who could not use a td t-shirt due to a health problem. The uniform is the same for every employee, so I suggested getting in touch with HR to address this exception. In April I received approval for buying the special uniform. Faced by the opportunity, I asked myself: “What can I do in this situation to enchant this fellow worker?” At this point I thought of explaining the issue to our supplier of uniforms and ordered two t-shirts with the same layout as the others, but of a special fabric. As soon as the t-shirts arrived, I sent them through the in-house mail pouch. I included a note and a chocolate in the package. A week later I got an email from Liliane, the special employee, which read: “I was enchanted with the attention given to me. Let me thank you from my heart! I felt much honored in receiving two t-shirts made especially for me. You now have your Enchantment Story, as it made me very happy. Your action surprised me. Congratulations! If I were the Mystery Shopper, you would have my full approval and also 100% for the Story of the Year. Oh, and the chocolate, believe me, was better than the box, as it came with love. You are enchanting. Many thanks!” This opportunity served to show that enchanting is accessible to us every day, you simply need to see opportunities with other eyes.

Camila da Silva Dornelles | Procurement | Administration

Enchanted TP EC5 | LA3 | LA12 | LA14 | DMA EC | DMA LA

The competency compensation system in use at Lojas Renner is based

on merit and consists in three pillars: job description, employee assess-

ment and career. The former ensures that employees understand what

is expected from them in their day-to-day activities, their responsibilities,

requisites and required competencies. The Company does not practice

wage discrimination between men and women in the same function and

who perform the same activities. GRI LA14

Performance assessment takes place under different methods accord-

ing to stakeholders. Employees in operating functions, analysts, su-

pervisors and coordinators are submitted every six month to the 360º

Assessment, involving generic and specific attitudes and competen-

cies. The final score attributed to staff members is composed of self-

assessment and of assessment by line managers, peers and in-house

customers. Employees will receive feedback at the end of the process,

with positive aspects and improvement opportunities. In 2012, roughly

82% of in-house employees eligible for assessment underwent the en-

tire process, including formal feedback. GRI LA12


Yet management level staff members are sub-

mitted to an assessment of competencies

built around three axes: organizational, strate-

gic and functional. The assessment’s outcome

is discussed in a committee including the line

manager, the area’s officer and the Human

Resources office – in order to equalize criteria

and to ensure consistent assessments. Every

executive was submitted to this performance

analysis in 2012.

The compensation system’s third pillar pro-

vides growth opportunities for staff members

with distinctive performances. Renner encour-

ages staff members to plan their careers un-

der guidance by their line managers, and sig-

nals two possible routes: technician/specialist

(with wage progression at the same functional

level) and leadership profile (with a vertical rise

in Company hierarchy).

The compensation management model is

supplemented by salary surveys. Defining

compensation does not discriminate employ-

ees by gender and there may be in several

cases difference due to competency levels

and seniority. The lowest compensation paid

by Lojas Renner and Blue Steel was 4.82%

above the national minimum salary, while in

Camicado this ratio was of 13.34% The Com-

pany practices payment of the floor for the

employee class, and exceeds this figure in

39% of units. GRI EC5 | LA14

Furthermore, a wide range of benefits is pro-

vided to employees, described in detail in the

Welcome Manual and in the integration pro-

cess for new employees. Please see the Lojas

Renner benefits in the table that follows. GRI LA3


Employee benefitsGRI LA3

Agreement with learning institutions for discounts on matriculation fees and monthly dues for university, post-graduate and extension courses (for employees and dependants).

Meals: by means of cafeterias and contracts, Lojas Renner pays from 80% to 90% of the price of meals.

Health plan: with a broad range of medical and hospital coverage and a network of accredited services, including legal dependants.

discounts for purchases in Lojas Renner, depending on years of work, for employees as well as for legal dependants.

Multi-purchase cards for use in grocery and drug stores, fuel stations and other accredited retail outlets, deducted from payroll.

Bus vouchers for home/ work/home commuting, deducted from payroll according to the fare’s price and restricted to 6% of compensation.

Profit sharing as much as one salary, on condition of

achieving pre-specified and disclosed goals.

Life insurance optional, deducted

from payroll.

Association in recreational activities

known as

SER, providing dental plans, language

courses and social events, among others.

Work uniforms provided at no

cost to store and distribution center

staff members.

Year-end celebrations to promote integration and to commemorate

achievements, also including family members.

10% to

15%

Lojas Renner holds an annual Organizational

Environment Survey intended to measure com-

mitment by its employees. Participation is online

and 100% of staff members are requested to

respond. The survey’s result in 2012 was 76%

commitment, a 4 percentage point rise as com-

pared to the previous year. This rate confirms

Lojas Renner among high-performance compa-

nies. The process is embodied in the Company’s

culture and is strengthened by the rising rate of

respondents – in 2012 concurrence was of 86%.

Based on these results, action plans are devel-

oped and put in place aimed at the organizational

environment’s ongoing improvement.

Health and Safety Indicators TP LA6 | LA7 | LA8 | LA9 | DMA LA

Safety of staff members is essential in order

to preserve a pleasant work environment, be-

sides showing respect and concern by Lojas

Renner with its internal stakeholders. In 2012

with the integration of Camicado, every unit

with over 50 staff members included an In-

ternal Accident Prevention Committee (Cipa),

formed in accordance with NR05 criteria found

in the Ministry of Labor’s Ordinance 3214/78.

Cipa is in charge of health promotion pro-

grams together with managers and the Hu-

man Resources division. The Committee also

trains brigade members who are provided with

guidance in first aid, evacuating buildings and

fire-fighting, and provides every employee with

virtual courses on coronary diseases, tobacco

addiction, postural health and quality of life.

Every year it assists in organizing the Internal

Accident Prevention Week (Sipat), which in

2012 was held in all the Lojas Renner units.

Other health and safety practices include monitor-

ing environmental risks related to each function,

regular medical exams and influenza vaccination

campaigns, as well as a constant disclosure of

information on health and family planning.


Occupational health and safety indicators¹ 201210 2011 2010

Accidents with leave³ 28 33 56

Accidents without leave4 3 3 2

Occupational accident rate 0.002 0.003 0.004

Total yearly working hours programmed8 28,112,000 34,465,000 34,386,000

Working days lost² 555 27.920 137.436

Lost days rate (TDP)9 3.9 162.01 799.371

Frequency rate of accidents with leave5 0.99 0.95 1.62

Frequency rate of accidents with/without leave6 0.10 0.08 0.05

Investment in accident prevention per employee (R$)7 56 48 n/a

Frequency rate of occupational diseases 0.00 2.031 2.69

1 Includes Lojas Renner and Blue Steel.2 In previous years occupational and common diseases were listed, giving rise to erroneous information and increasing excessively the number of days lost. According to NBR 14280 criteria, occupational accidents did not include commuting accidents, which condition was also not followed in previous years.³ Accidents with leave are those whereby employees do not return to their activities until the day following the event. 4 Accidents without leave are those whereby employees return to their activities on the day of the event or on the first subsequent working day.5 Equal to the number of accidents with leave divided by one million man hours worked (HHT).6 Equal to the number of accidents with or without leave divided by one million man hours worked (HHT).7 Average investment per employee. Investment in accident prevention includes: The entire Occupational Safety Department’ budget and expenditures and investments

made by the Engineering and Manufacturing area to ensure and/or improve occupational safety or comfort conditions. Does not include expenditures with training (under the charge of the HR/Training area).

8 Total hours programmed: considered as 8 hours daily x business days estimated.9 TDP: Considers the factor 1 million pursuant to NBR 14280 instead of the factor 200,000 recommended by the GRI. Calculating days lost starts on the day following an accident.10 No deceases in operations over the period covered by the report.

Occupational diseases¹ 2012 2011 2010

Absentee rate 0.0381 0.0376 0.0376

Investment in disease prevention per employee (R$)2 56 48 n/a

Total notices to the National Institute of Social Security on occupational diseases

31 36 58

1 Includes Lojas Renner and Blue Steel.² Average investment per employee.

Virtual course on health and safety* Total conclusions

Quality of life 1,754

Tobacco addiction 994

Coronary diseases 1,342

Postural health 1,626

Cipa 1,755

* Includes Lojas Renner and Blue Steel.


Diversity TP LA1 | LA13 | DMA LA

Encouraging diversity is part of the Lojas Renner style. If the Company publicly supports and develops

a number of actions on behalf of women (see more in the Instituto Lojas Renner item), it could be no

different with its internal stakeholders. In 2012 Lojas Renner trained by means of awareness and train-

ing programs 80 Godparents of Diversity in 5 regional divisions – and plans to broaden this action in

the coming year. These staff members understand the importance of diversity and act as examples

to their colleagues.

The Company monitors diversity indicators such as age, gender, race or handicaps, and bars any

form of discrimination. Specifically on the issue of women, 72% of Lojas Renner’s staff members are

women, and it sponsors projects that comply with the Women’s Empowerment Principles.

Diversity indicators* GRI LA1 | LA13 2012 2011

% of women in the Company 71.75 72.05

% of employees above 45 years of age 5.95 5.79

% of employees above 45 years of age in management functions 8.83 11.00

% of employees above 45 years of age in executive officer functions 66.66 66.66

Total overseas leaders with international experience 4 4

* Includes Lojas Renner (Admin., stores, CDs) and Blue Steel.


Daiane’s graduation

ENCHANTMENT STORY

My story started when I saw customer Daiane on a wheelchair and who whenever she comes to the store wants me to help her. I know her from the time when I worked in the female dressing booth, when I always helped her to try on clothes. This time Daiane needed a pair of shoes for a very special occasion: her graduation. After trying several models, we selected one that she loved. Daiane also asked for help in selecting make-up for the occasion. My colleague Daniela in the beauty area helped us and on seeing Daiane’s difficulty, she decided to call our colleague Jaqueline, who has lots of practice with make-up. Daniela spoke to me and suggested that we should enchant our special customer by going to her house to do her make-up on the graduation day – she uses a probe and it would be difficult for her to come to the store on that day. So we asked for approval from our supervisor Tatiana, who immediately let us go. We told Daiane of our idea, who was speechless because of our kind offer. On August 3, as we had arranged, Jaqueline and I went to Daiane’s home. We were very anxious to see her. On our arrival we were surprised, Daiane’s whole family was waiting for us and we were very well received. Her sister had told us in confidence that Daiane had hardly slept well in expectation of the great day. At each stage of the make-up, Daiane was being transformed, ever prettier, and when she saw herself in the mirror she was moved. We also felt that her mother was also very restless and offered her the make--up in order to relax her. She told us awkwardly that she could not pay and that she did not use make-up since she was widowed. We said that the occasion called for a very attractive make-up and that she should not worry, we would not charge anything, after all, Daiane had purchased the make-up. She thanked us and was very happy with the outcome. Everything was ready for the great moment, but our enchantment could not end here: we made a gift of a necklace to Daiane, to use for the graduation. Everybody was speechless and invited us to socialize with them at a table laden with tidbits and sweets. We felt very enchanted at being part of that unique moment. We said good-bye and returned to the store with the sensation of a job well done. We later telephoned to find out about the graduation and Daiane told us that she was very much praised, and also that the graduation was beautiful. I loved having assisted in this moment so special for Daiane. Without the assistance by my colleagues Daniela and Jaqueline, I would not have achieved this. This is the Renner way: mutual assistance to enchant our customers.

Joara Manzoni Pereira | Sales assistants | Shopping Barra Sul (RS)


Breakdown of groups per gender (%)¹

2012 2011

Women Men Women Men

Board² 28.57 71.43 33.33 66.67

Executive Committee 16.67 83.33 16.67 83.33

Leaders (managers, coordinators and supervisors)

53.99 46.01 52.74 47.26

Administration 65.74 34.26 67.82 32.18Operations (assistants, technicians and store operations)

73.95 26.05 73.94 26.06

Others 69.08 30.92 65.22 34.78

¹ Includes Lojas Renner (Admin., stores, CDs) and Blue Steel.² The chairman of the Board of Directors is not included, as he is accounted

for in the Executive Committee.

Handicapped employees per region* (% over total) 2012 2011

South 1,91 2,74

Southeast 1,13 1,44

Center-West 2,17 2,00

Northeast 1,15 1,22

North 0,46 1,36

Company overall average 1,46 1,68

* Includes Lojas Renner (Admin., stores, CDs) and Blue Steel. A number of actions have been put in place to full comply with the quota for handicapped employees, which has still not been achieved due to the scope of operations (requiring the admission of roughly 650 people in this class), and the high turnover rate in this group of staff members. Lojas Renner has entered into a Conduct Adjustment Agreement with the Labor Public Prosecutors’ Office, granting a grace period for complying with the quota.

Blacks and tawny per gender and functional level (%)1, 2 2012 2011

Women Men Women Men

Board 0.00 0.00 0.00 0.00

Executive Committee 0.00 0.00 0.00 0.00

Leaders 4.75 4.75 3.38 4.43

Administration 1.39 0.84 1.04 0.35

Operations 23.55 7.74 22.53 7.31

Others 23.47 10.69 23.37 11.23

¹ Includes Lojas Renner (Admin., stores, CDs) and Blue Steel. ² According to self-description.

Breakdown of groups per age bracket (%)*

2012

Up to 30 years

Between 31 and 50 years

Above 51 years

72.56

70.98

72.75

27.44

29.04

27.25

* Includes Lojas Renner (Admin., stores, CDs) and Blue Steel.

GRI LA1 | LA13


Chief training programs

78

Supervisor Trainee Program: develops store, merchandising and distribution center supervisors by means of technical improvement and leadership and Company Values. It has a six-month duration, with theoretical and practical activities.

Fundamental Leadership Program (PFL): based on a concept of ongoing Renner leadership training, the preparatory stage for a future executive career in the company.

Management Trainee Program: trains executives for stores and the procurement department, who think and decide strategically, who understand retail dynamics and act as owners of the business, encouraging competitive differentials in order to enchant customers.

Executive Leadership Program: reinforces the enchantment culture by enabling gifted staff members to become Renner leaders at different Company levels.

Magia Renner: disseminates Company culture and business strategy. To this end, the leaders themselves hold 6-hour courses in the Lojas Renner units. The topic for 2012 was Enchantment in every sense, and to commemorate 20 years of existence, Magia Renner launched an internal social network for employees to exchange experiences on enchantment.

This live training enabled 9,394 people and over 8 thousand staff members accessed the social network, which totaled 12 thousand posts.

Welcome: as of the second half of 2012, new staff members are submitted to a special program during their first 90 days of Lojas Renner. Several stages of development, in addition to monthly feedback from the supervision, provide in-depth knowledge of operations and of Renner Values.

Change Management: specific workshops are preparing employees for the expressive changes that will occur with two major projects in progress: putting in place the Shared Services Center and the Supply Chain. To date 213 employees were involved in 11 workshops in 2012 – and work will be intensified in 2013.

Virtual Courses: every Lojas Renner employee has access to a portfolio of 142 virtual courses. There are computers in all the units dedicated to learning, and leaders and analysts may also access the system from outside the Company. There were 140 thousand participations throughout the year. On concluding their training, staff members assess their satisfaction with courses. In 2012 very satisfied assessments accounted for 95% of the total.

MANAGING SUSTAINABILITY

Corporate Education and Leadership Deve-lopment TP LA10 | LA11 | LA12 | DMA LA

Meritocracy pervades the development of Lo-

jas Renner staff members. The Company pro-

vides the same ladder for each employee to

rise at a pace equal to his/her talents, efforts

and results.

It provides systematically training to its em-

ployees and totaled 133 hour of training per

employee in the operations of Renner and Blue

Steel, and 60 hours per Camicado employee.

Educational programs range from technical

training to and MBA scholarships to manage-

ment education and coaching programs.

Two fronts concentrate development programs:

Academia Renner de Varejo for specific training

in the retail area and directed at operating area

employees, and Universidade Renner that pre-

pares leaders for business management.

Preparing and developing leaders are essential

aspects in sustaining growth by Lojas Renner.

To this end, the Company runs the Trainee

Program to prepare new store managers and

supervisors, the Procurement and Merchan-

dising areas and the Distribution Centers, for

the development of professionals in technical

and leadership aspects.

Another action in this regard is the Executive

Leadership Program, a part of Universidade

Corporativa Renner and accessible to all man-

agement levels. This program develops lead-

ers in order to ensure results and the pace of

growth expected to sustain the business. On

the other hand, the Fundamental Leadership

Program stresses the concept of ongoing

training for leaders by developing supervisors

and coordinators, preparing for future execu-

tive careers in the Company.

Every year Lojas Renner holds the manage-

ment performance assessment, combining

strategic and organizational competencies

with the results gained in achieving individual

goals. Staff members who stand out as po-

tentially positive in this assessment are labeled

as likely successors and undergo special de-

velopment programs. The intention is to allow

them to exploit their skills and to expand their

corporate experiences, preparing to rise step

by step on the development ladder and to

achieve ever higher positions in the Company.

GRI LA11

The Renner attitude is what makes the Com-

pany different and makes it unique. Hence,

this philosophy is an experience from an em-

ployee’s first day at work, while participating in

the Welcome Program. With a 90-day dura-

tion, this program situates the new employee

in the organizational culture and discloses the

key HR policies and practices, encouraging

the sense of belonging.

Employee development provides each one with his/her own growth prospects


Course participants per function* 2012 2011 2010


Managers 363 312 271

Coordinators and supervisors 772 n/a n/a

Administration (analysts and similar) 370 n/a n/a

Trainees 309 322 322

Operations 12,420 n/a n/a

Total 14,240 640 599

* Information does not include Camicado. These data began to be recorded and monitored in the computerized system put in place in 2012.

Hours of training per function* 2012 2011 2010


Managers 38,970 25,874 28,543

Coordinators and supervisors 23,526 75,174 85,530

Administration (analysts and similar) 23,382

Trainees 399,300 375,704 301,068

Operations 1,327,919 1,402,773 1,280,759

Total 1,813,865 1,879,669 1,696,044

* Information does not include Camicado. These data began to be recorded and monitored in the computerized system put in place in 2012.

GRI LA10


Renner & Blue Steel ongoing education and competency management¹ (total of employee participants)

2012 2011 2010

Coaching 68 n/a n/a

Leaders’ Convention 398 388 325

Leadership development 713 513 427

High-performance group (GAP) 728 554 921

Focus on Reading 363 312 271

Magia Renner 9,082 9,161 8,265

MBA – Retail Management – in company (scholarships granted) 28 28 n/a

Virtual Training Program 14,712 14,850 13,867

Executive Leadership Program (PLE) 622 174 667

Fundamental Leadership Program (PLF) 686 513 427

Succession Program 21 21 -

Rite of Passage Program 7 3 5

Management Trainee 154 155 125

Supervision Trainee 155 167 197

Training in anti-corruption practices (loss prevention)² 4,171 7,530 8,187

Training in anti-corruption practices (money laundering prevention)³ 3,013 4,361 3,854

Training in anti-corruption practices (Code of Ethics and Conduct)4 6,026 10,123 5,615

1 Information does not include Camicado. These data began to be recorded and monitored in the computerized system put in place in 2012.2 Annual recycling aimed at store leaders, tellers and staff members related to the Financial services department. 3 Held during the integration period for all staff members.4 Held during the integration period for all store employees.

Magia Renner which has been active since 1992

also stresses this one-of-a-kind culture, also contrib-

uting to disseminate this business strategy. In 2012

in commemoration of its 20 years of existence, its

theme was “Enchantment in every sense”, and it

launched an internal social network for staff mem-

bers to exchange experiences on enchantment.

Other projects deserving of mention are Projeto

Pescar and Escola de Varejo, which prepare young

people in the communities where the Company op-

erates to act in retail customer assistance. In addition

to a theoretical background, students are given the

opportunity to work as Lojas Renner apprentices

(see more on these actions in this report’s Instituto

Lojas Renner item).

GRI LA11


% of employees per function submitted to performance analysis* 2012 2011 2010

Managers 100 100 100

Leaders (coordinators and supervisors) 94 92 95

Administration (analysts and similar) 94 92 95

Operations 94 92 95

Others (trainees) 100 100 100

* Includes Lojas Renner and Blue Steel.

Camicado ongoing education and competency management (total of employee participants)*

Coaching 2

Technical training 432

Behavioral training 235

Leadership Technical training 38

Corporate Foundations training 549

Magia Camicado 794

New Leadership program 19

Team Building 37

Cumbuca 60

* Camicado employees in 2012 were given 45,664 hours of training, with an average of 60 training hours per employee.

Communications ChannelsCommunications is easy and transparent at

Lojas Renner. Doors are always open to staff

member to give compliments, make sugges-

tions, clear up doubts or lodge complaints.

See below the key communications channels

with internal stakeholders.

Canal Renner: a TV program with Renner’s

main newscasts. Employees watch this 15 to

20 minute program every month, commented

by a Company leadership.

Planeta Renner: an in-house magazine pub-

lished monthly with tips on fashion, photos of

activity in the stores and a profile of employee

teams, in addition to the chief news on Lojas

Renner. Can be taken home by employees.

Planeta Informa: a bulletin-board newslet-

ter permanently displaying internal campaign

posters of notices and local information on

each unit.

GRI LA11 | LA12


Líder@Renner: an email sent to leaders

whenever necessary to deal with strategic

topics that should be shared with the team.

Café com a Diretoria: staff members may

enroll to have breakfast with a Lojas Renner

executive officer. Among those who enrolled,

15 people will be drawn for a chat, the subject

of which is selected by employees themselves.

Ponto de Partida (PP): every day at the start

of the working day, store employees will have a

brief meeting to coordinate information, speak

of goals and other important topics related to

their functions. This meeting will be held every

week in the administration areas.

Palavra do Presidente: an exclusive channel

from the CEO’s office with staff members, plus

an email sent whenever necessary, intended

for every Company employee. For those with

no corporate email, leaders will be in charge of

sharing information.

Fale com o RH: a permanent and direct link

from employees to the HR area to cover sub-

jects of interest to the former, clear up doubts

or make suggestions.

Face-to-face interaction, TV, magazine and

electronic channels ensure transparent

communications with staff members

83

Customers GRI PR1 | PR3 | PR5 | DMA PR

The Enchantment Philosophy dictates the

pace of Renner’s relations with its customers.

As it is evident in each gesture by Company

staff members, this attitude and work form

constantly seeks to exceed expectations and

provide experiences. No problem is simply

left aside: employees know that responsibility

for customer satisfaction lies with everybody

and is shared, and they feel as owners of the

business compelled to immediately solve any

inappropriate situation.

Mystery shoppers regularly visit the stores

and assess performance by employees in the

front line of customer assistance. This practice

awards employees with the best performance

in enchanting customers.

Stores are designed and furnished in order

to engross customers in their purchases, be-

sides making it easier to select items. In ample

spaces with music by Rádio Renner, collec-

tions are displayed in accordance with the

Lifestyle concept, making the entire experi-

ence more practical and customer empathy

with items that attract them much quicker.

Concern by Lojas Renner with customers is

also related with health and safety in the use of

its goods. Clothing items are made to ensure

comfort, and to this end they may include felt

linings (in embroidery) and a larger percentage

of elastane (in blue jeans), in addition to em-

bodying modeling patterns that favor mobility.

Alchemia brand goods intended for modern

women’s appearance and well being strictly

follow the rules and procedures by Agência

Nacional de Vigilância Sanitária (Anvisa). This

Lojas Renner brand provides a portfolio for a

complete beauty ritual, including lines of a so-

cial and environment trend (Alchemia Bio) and

goods for the home.

The labeling of textile goods complies with In-

metro rules and in Alchemia labels meet Inmet-

ro standards on volume and Anvisa’s RDC 79.


A very special gift

ENCHANTMENT STORY

I was in the men’s department when I noticed a customer who seemed to need help. I politely offered to assist. She introduced herself as Sueli and said that she was looking for a white handkerchief. I inquired whether she had not liked any of the options and she replied that what she really needed was a white handkerchief to give to her father for his birthday. She had gone through a number of stores in search of one, but could not find it. I asked why she preferred white and she explained that when her father was a child her grandmother used to buy him white handkerchiefs only, and they were all starched and embroidered with his name. On her grandmother’s decease, her father went on using white handkerchiefs, this was a form of preserving his mother’s presence with him. But as the years went by, the handkerchiefs given to him by his mother wore out – he had only one remaining, which he kept as a relic. She told me this story with emotion and tears in her eyes. I felt that this customer could not leave our store in that condition. Her father’s birthday was on Saturday. I told her not to worry any longer and to return on Friday, I would find a way. I asked her to bring her father’s handkerchief on the following day, for me to see how it was. I woke up on Thursday and went out looking for the white handker-chief, but unfortunately I could not find a similar one. So I went to a textile store and took the customer’s handkerchief with me. As soon as I arrived, I asked the saleswoman if she had a fabric similar or the same, and luckily she had. With this fabric in hand, I decided to make not only three, but one dozen handkerchiefs. I took the fabric to my grandmother’s home for her to embroider it as the one I had in hand. Before asking my grandmother, I told the story of Sueli’s father. She was moved and said that it was incredible that something so simple had acquired so much value. Finally to our surprise, the handkerchiefs came out just like the original! We both were satisfied and anxious to hand over the great surprise to the customer. I purchased a small box and secured it with a beautiful blue bow together with a card. On Friday, as had been arranged, the customer arrived and I soon noticed her anxiety. As I handed her the box I saw her eyes sparkle. She smiled, hugged me and said: “Never had anyone given me so much attention.” I replied that it was from my heart. When she opened the box and saw the handkerchiefs, she cried emotion and thanked me so much. She said that they were beautiful, just like those that her grandmother used to make for her father. At that moment I had a huge sensation of mission accomplished. On the following day her father phoned to thank for this great gift that I had helped his daughter give him. I was enchanted with the phone call. I felt that in fact who enchants ends up being enchanted.

Michele Aparecida de Oliveira Santos | Sales assistant | Shopping Maxi Jundiaí (SP)

Communicating with Customers GRI PR5 | DMA PR

Fale Conosco (Speak to Us) is customer assis-

tance tool that Lojas Renner provides on the

Company’s site (Customer Assistance). Emails

received through this channel are answered in

not over 72 hours. The number of events, the

area involved and reply time are monitored,

and efforts are made to solve the problem in

question and to enchant customers.

Lojas Renner took part of the IndexSocial

ranking among the 10 Brazilian brands with a

greater commitment in social networks such

as Facebook and Twitter, in November and

December 2012, and January and February

2013. The Company was the only department

store included in the report disclosed. Always

with an eye on social networks, in addition to

Facebook, Twitter and Instagram, Renner was

also the country’s first department store to

disclose its profile in Pinterest and the mobile

application in 2012 (see more below).

Customer relations is also monitored in the so-

cial networks and in case of any complaints,

these are forwarded through the channel.

Suggestions and complaints sent to newspa-

pers, totaling 52 publications during the year,

are handled by Corporate Marketing.


Lojas Renner also participates in the Con-

sumer Board, a qualitative survey formed of

customer groups that discuss topics such as

image, quality of assistance, comfort of store

environment, and new products acceptance.

This information is employed by the Company

to enhance its good and services.

In Camicado, the key customer interaction

channels include price surveys, variety and

quality, diagnosis research, assistance through

online chats, and Contact Us through e-mail. In

2012 Camicado intensified its presence in so-

cial networks such as Facebook, Twitter, Insta-

gram and Pinterest, and created the Camicado

blog, with tips on cuisine, home organization,

marriage and decoration.

Lojas Renner Mobile ApplicationLojas Renner was once again a pioneer in its

activity when it launched Brazil’s first mobile

application for a fashion store. This tool con-

tains in one place only exclusive fashion con-

tents from the Estilo Renner blog in Facebook,

Instagram and Pinterest. It also contains new

editions of Renner magazine, promotions and

a virtual dressing booth.

The application is free of charge and compat-

ible with the iOS and Android systems, and a

simplified version of Windows 8. Relying deeply

on social media is very much in line with the

innovation background by Lojas Renner and

with its close relations with women in the fast

fashion and online era.


Renner’s figures in the social media (year-end 2012)

1.8 million fans

38

thousand followers

64thousand

followers

1,369,319 views

Over

one thousand

followers

Average

of one thousand

visits per month

Blog

Estilo Renner

Customer satisfaction and enchantment

are measured in the stores themselves

Online BusinessIn 2012 a new e-commerce platform was launched

in accordance with Lojas Renner’s positioning, dis-

playing goods based on fashion trends, more modern

and with an improved usability. The www.lojasrenner

site provides a complete mix of apparel, footwear, ac-

cessories and toiletry line, underwear, and watches,

unique payment terms, discounts and special price

and delivery conditions.

The Enchantmeter GRI PR5 | DMAPR

Lojas Renner was the first fashion store in Brazil that

measured customer satisfaction in the store itself, right

after the purchase experience. The Enchantmeter as it

is known, is found at the stores’ exits and allow cus-

tomers to assess whether they were very satisfied,

satisfied or dissatisfied. This is the opportunity to keep

the thermometer turned on permanently, measuring

vital signals and solving problems expediently.

This model was adopted in the 1990s with the Com-

pany’s clear intention of applying the Enchantment

Philosophy, when companies were still starting to be-

come aware that they should meet new customer ex-

pectations and needs. Currently all the Renner stores

are equipped with Enchantmeters.

Customer reactions are inserted in the Lojas Renner

intranet on a daily basis and consolidated every month

by the Corporate Marketing area for in-house dis-

closure. The stores have monthly goals for positive

customer assessments. A ranking is prepared every

month of the best placed stores, bearing in mind the

very satisfied score and the mystery shopper’s score.

Base on this outcome, those stores placed first during

three consecutive months, or five alternate months in

the same year, are financially rewarded.

www.lojasrenner.com.br


Customer satisfaction percentage until December 2012

OPINION January February March April May June July August September October November December TOTAL

Very satisfied 60.02 61.17 61.92 61.39 60.73 61.07 61.58 61.88 61.70 60.81 61.88 61.84 61.36

Satisfied 36.70 35.71 35.08 35.50 35.88 35.75 35.07 35.42 35.38 34.13 34.65 34.42 35.26

Dissatisfied 3.28 3.12 3.00 3.12 3.39 3.18 3.35 2.69 2.92 5.06 3.48 3.74 3.38

Customer Data Privacy GRI PR8 | DMA PR

Lojas Renner sends news and information to

its customers whose email addresses were

registered in its database, whether due to the

use of communications channels or to online

purchases. The idea behind this practice is to

involve customers in the Renner world, putting

them in tune with everything that occurs, new

collections, promotions and trends.

Expectations Satisfaction

EnchantmentThe Enchantment Philosophy

Owing to its commitment with respect for its

customers and compliance with their needs

and desires, Lojas Renner will stop sending

emails to customers who request cancella-

tion of such news, and will not get in touch by

telephone with customers who register in the

Procon São Paulo Blocking Receipt of Telemar-

keting Calls.


Customer satisfaction percentage until December 2012

OPINION January February March April May June July August September October November December TOTAL

Very satisfied 60.02 61.17 61.92 61.39 60.73 61.07 61.58 61.88 61.70 60.81 61.88 61.84 61.36

Satisfied 36.70 35.71 35.08 35.50 35.88 35.75 35.07 35.42 35.38 34.13 34.65 34.42 35.26

Dissatisfied 3.28 3.12 3.00 3.12 3.39 3.18 3.35 2.69 2.92 5.06 3.48 3.74 3.38

Supplier ChainTP EC6 | HR1 | HR2 | HR6 | HR7 | DMA EC | DMA HR

Management of the supplier chain takes place by means of two different areas. Supplier Management

(GFO) is in charge of resale item suppliers, while Administration Supplier Management (GFA) is in charge

of all other supplies, from retaining builders for new stores to office supplies, uniforms and other services.

Despite not having a formal policy for retaining local suppliers, Lojas Renner has an expressive percent-

age of its purchases with this class of suppliers, as shown in the table that follows.

Supplier chain1GFA2 GFO³

2012 2011 2012 2011

Total suppliers 1,481 1,414 636 616

a) Total expenditures with local suppliers (R$ thousands)

617,338 455,417 1,286,119,446 1,174,730,530

% of expenditures with local suppliers 99 100 77 81

b) Total expenditures with overseas suppliers (R$ thousands)

7,700 n/a 388,732,122 276,082,400

% of expenditures with overseas suppliers 1 n/a 23 19

Grand total expenditures with suppliers (a+b) (R$ thousands)

625,038 455,417 1,674,851,568 1,450,812,930

1 Data in this table consider Lojas Renner and Blue Steel transactions only. There is currently no formal policy granting priority to local suppliers. ² The GFA considers local suppliers all domestic suppliers, as the delivery of goods takes place in every state where Lojas Renner has branches. ³ The GFO perfected its rating criteria for local suppliers. This class until 2011 included suppliers located in the same states as the then existing Distribution Centers (SP and SC).

As of 2012, the GFO adopts the same criteria as the GFA, considering local suppliers as domestic suppliers. Data considered embrace suppliers of resale items to Renner and Blue Steel stores. Period under consideration: calendar year 2012 when there were 177 Renner and 4 Blue Steel stores.


Resale Suppliers Management (GFO)GRI HR1 | HR2 | HR4 | HR5 | HR6 | HR7 | DMA HR

Selecting resale suppliers takes place based

on supply and demand criteria, competitive-

ness, quality, productive capacity and com-

pliance with Lojas Renner requirements. In

compliance with its Values, Lojas Renner does

not have agreements with suppliers that use

child labor, forced or slave labor, insecure en-

vironments, discrimination attitudes, corporal

punishment, psychological coercion, sexual or

oral harassment, in connection with its work-

ers. It is essential and required that in every

agreement that suppliers should formalize

concurrence with human rights principles. In

this regard, in 2012 there were no cases of

discrimination.

Retaining resale suppliers is not limited to de-

tecting and mitigating risks. More than this, it is

related to the involvement by this chain in the

practice of principles in which the Company

believes and that contribute to sustainable de-

velopment and respect for human rights. All

these suppliers undersign the Renner Supplier

Agreement jointly with the Renner Supplier Re-

sponsible Conduct Agreement, formalizing con-

currence with principles related to human rights.

Audits are an important tool to mitigate risks

and to develop resale suppliers employed by

Lojas Renner. GFO currently run three differ-

ent audit procedures. The Process Audit, per-

formed by an outsourced firm, was started

in 2006 and takes place according to criteria

defined by Lojas Renner, covering issues re-

garding quality, manufacturing processes, fa-

cilities and social responsibility. In 2010 with

the creation of the Supplier Certification Pro-

gram by Associação Brasileira do Varejo Têx-

til (ABVTEX), this entity began to be in charge

also for Social Responsibility Audits in cloth-

ing suppliers for criteria such as: child labor;

forced labor or that analogous to salve labor;

irregular foreign labor; freedom of association;

discrimination; abused and harassment; health

and occupational safety; monitoring and doc-

umentation; compensation; working hours;

benefits; monitoring the productive chain; the

environment. Hence, currently the Process

Audit is held only with resale suppliers not in-

volved with apparel. Finally, the Sub-contractor

Audit is applied since 2010, also by an out-

sourced company, to supplier sub-contractors

of apparel with the purpose of minimizing risks

related to regular working conditions.


Happy customers!

ENCHANTMENT STORY

My enchantment story began when I received a Fale Conosco email. Customer Ana used to tell us that she loved a Cortelle blouse, which unfortunately was stolen from her house. Ana had searched everywhere in stores in her region and also in the virtual store, but could not locate it. She was very sad, it was hard for her to like a blouse so much. That was when I decided to enchant this customer, as I wanted so much to make her happy! I phoned our supplier to check on the possibility of making a similar blouse for this customer. After a long search for the fabric, the suppler found a surplus item of size 50, exactly Ana’s fit. The supplier then sent me the blouse and I forwarded it to her house. She thanked me so much, she had never expected a gesture like this one and was extremely happy!

At the end of her email she wrote: “Thank you, Renner! You are surprising!”

Josiane Peres da Rocha | Procurement Assistant | Administration

Other highlights are the Crescendo Juntos pro-

gram, held during the year with the purpose of

encouraging and making apparel resale sup-

pliers aware of the importance of qualifying in

the ABVTEX Program. In order to ensure un-

derstanding and compliance with goals, these

events were regionalized. In March local sup-

pliers in the states of Rio Grande do Sul and

Santa Catarina were made aware. The event

for suppliers in other states was held in June,

save for the state of São Paulo, as the event

for these suppliers took place in 2011.

Total active suppliers with orders during 2012

Productive suppliers audited (process + social responsibility)

Value chain management

636 616

700

238 242280

2012 2011 2010


Program stages1. Notice: in March 25 selected suppliers partici-

pated in the Crescendo Juntos event, kicking off

the program.

2. Diagnosis of needs: between April and May,

weaknesses and improvement opportunities

were detected in supplier processes by means

of technical visits.

3. Treating diagnoses: the 3 topics given priority

– problem analysis and solving, sub-contractor

management and production layout – are being

addressed in training courses. The first was held

in September with the attendance of 25 suppli-

ers. In addition to live training, virtual courses are

made available for suppliers. Other courses are

expected for the first half of 2013.

4. Consultancy and monitoring: together with

training, the Lojas Renner Supplier Management

monitors supplier performance since September

2012.

Qualifying SuppliersThe Restructuring Project in the Supplier Man-

agement area begun in 2011 and concluded in

2012, was an important landmark in defining

the area’s key processes. With over R$1 million

in investments, this change defined key pro-

cesses for supplier activities, metrics and man-

agement indicators. It also involved, among

other topics, selecting, ratifying and monitor-

ing suppliers, contract and audit management,

and relationship assumptions. One of the proj-

ect’s important results was the creation of the

Supplier Global Performance Indicator (IDGF),

consisting in quality, commercial, logistics and

social indicators.

The IDGF monitoring began with a group of 25

suppliers selected for the Ongoing Improve-

ment Program, based on their share in the total

sum of the year’s purchases. The program aims

to strengthen Lojas Renner’s relations with its

suppliers and is composed of 4 stages (see

the table). Lojas Renner intends during 2013

to extend this action to 30 suppliers, selecting

them according to their share in the strategic

and purchase value, in addition to the risk they

are likely to pose to the business.

Administration Supplier Management (GFA) DMA EC | DMA HR

As a part of the CSC Project, the Supplies de-

partment was remodeled in 2012, giving rise

to the Administration Suppliers Management

area (GFA). This new area has as its key objec-

tives strategic discussions with its best suppli-

ers in the world scenario, and the detection of

innovative opportunities to create exceptional

results and the enchantment of customers. It

is in charge of annual procurement planning,

prospecting, ratifying and supplier assessment,

as well as for risk management and non-resale

purchase agreements. GRI EC6 | HR2 | HR6 | HR7

Following implementation of the area’s gover-

nance project estimate for July 2013, the GFA

will be enabled to strategically manage is sup-

plier base, with the use of commercial, financial

and social performance indicators, and to put in

practice action to correct any deficiencies and

risks detected.


Community and Government TP SO5 | SO6 | DMA SO | DMA HR

Lobby and Social InfluenceLojas Renner is active in furthering public poli-

cies that contribute to develop the country and

improve retail trade. This contribution takes place

through participations in entities such as As-

sociação Brasileira do Varejo Têxtil (Abvtex) and

Instituto de Desenvolvimento do Varejo (IDV). As

provided in its Code of Ethics, the Company does

not make financial contributions to political par-

ties, candidates or related institutions.

Trade Union RelationsThe Company’s commitment with regard to

stakeholder relationships is also present in

trade union relations. Lojas Renner attends

every year negotiating tables in those venues

where it has a large number of stores and in its

most representative business centers, forming

part of the employer entity in the discussion

committee facing its employees’ trade unions.

The same seriousness and responsibility are

enforced in complying with resolutions arising

from collective agreements, ensuring trans-

parent, fair and professional relations.

Every employee is covered by collective

agreements. These are also represented by

the Sindicato dos Empregados do Comércio

(retail employees’ trade union) in the different

venues. Notice on operating changes is given

in advance, yet there are no minimum terms

defined by the Company with regard to no-

tices. GRI LA4 | LA5

Over R$ 1 million was invested in enhancing

supplier relations


Instituto Lojas Renner TP SO1 | SO5 | EC8 | EC9 | DMA EC | DMA SO

Instituto Lojas Renner is in charge of managing the Company’s social invest-

ments, conveying development to the communities where it is located. The

institute’s primary focus is inserting women in the labor market, which is very

much in line with Lojas Renner’s vocation of encouraging close relations with

present-day women. This target is also in tune with furthering gender equal-

ity as disclosed among the UNO’s Millennium Development Objectives and

the Women’s Empowerment Principles (UNO’s Women and the Global Pact).

A letter to the Christmas inspector

ENCHANTMENT STORY

It was on a Monday, I was helping to open the store when I found a letter addressed to Santa Claus. I kept thinking that the sender might be very sad for having lost the letter, so I decided to open it. When I read it, I saw the moving

story of a four-year old boy named Lucas. He wrote that he understood the difficulties should he not be given a remote control car, as his mother was unable to purchase one. At that moment I decided that I myself would enchant him with the cherished remote control car. Having the gift in hand, I called the number found in the letter next to his

mother’s name, and explained the event. Much surprised, she said that her son would love the gift. On that occasion Lucas was beside his mother and inquired who she was talking to and she replied: “Lucas, I’m talking to Santa Claus,

get on the phone and talk to him also.” I was speechless, surprised, when I heard that voice saying to me: “Hello Santa Claus! Is that really you?” I replied with the good old man’s voice: “Yes Lucas, it’s really me, Santa Claus.” He

then asked: “Have you already bought my remote control car?” I replied “Yes, I already told your mother and both of you are coming here to the store to get it.” Everything was ready on the agreed day. When I was told that Lucas

was in the store, I ran to dress the Santa Claus costume and asked my colleagues to call him. “Santa Claus, are you there?” At that moment my world stood still when I heard his voice echo through the Realize. I replied right then: “Ho, ho, ho, Merry Christmas, Lucas.” On coming out of the management room as a genuine Santa Claus, I saw Lucas for

the first time. He put his hands on his head and shouted with wide open eyes: “It’s really you Santa Claus!” I raised Lucas up in my arms and we started to talk. I handed him the gift and tears and smiles overcame Lucas, his mother and several employees and customers who were watching everything. After giving many thanks, Lucas’ mother left

with him beside her, playing with the remote control car that he dreamt of so much.

José Ailton dos Santos Prudêncio | Leading inspector | Shopping Pompéia (SP)


95

MissionTo encourage the insertion of women in the labor market, in support of entrepreneurial social actions put in place by civil society organizations that effectively contribute to qualify and include women and the development of communities in which Renner is active.

Forms of actionEducation and Professional Training: contribution in acquiring and/or developing skills that assists in accessing the labor market.

Entrepreneurship and Creation of Income: encouragement of entrepreneurship and forms of association and/or cooperation for production and service provision.

Insertion in the Labor Market: support of market insertion mechanisms by providing market information, detection of work opportunities, preparation for the selection process and for inserting products in the market.

The institute’s global actions are planned end prepared based on three axes:

• Emancipation of women through enabling projects and the creation of employment and income.

• Training young people in an unfavorable social and economic position.

• Local development based on actions that enhance independence by communities and also by means of corporate volunteer actions.

Investments made (R$)

3,722,7643,857,171

4,796,052

2010 2011 2012

People benefited

6,972

16,234

38,101

2010 2011 2012

Since its foundation in 2008 Instituto Lojas Renner has already allo-

cated R$15.2 million in 341 projects, directly benefiting over 69 thou-

sand people in all of Brazil’s regions. In 2012 alone R$4.7 million were

allocated to actions put in practice in 17 states and in Brasilia.

Number of projects

8189

97

2010 2011 2012


Private social investment 2012 2011 2010

Creation of employment and income 1,617,404.14 1,535,546.86 2,199,691.24

Local development 846,798.13 292,825.42 644,073.04

Sports 230,000.00 960,000.00 375,000.00

Culture¹ 140,000.00 260,000.00 72,000.00

Training young people 393,874.45 268,800.00 183,000.00

Children and teenagers 760,000.00 540,000.00 249,000.00

Senior citizens 800,000.00 na na

Corporate volunteers na na 16,200.00

Total (a) 4,788,076.72 3,857,172.28 3,738,964.28

Culture² 3,249,958.00 1,942,904.00 1,830,000.00

Humanitarian aid3 na 307,684.00 44,640.00

Clothing donations4 7,848,577.50 8,123,539.00 na5

Total (b) 11,098,535.50 10,374,127.00 1,874,640.00

Grand total of investments (a+b)6 15,886,612.22 14,231,299.28 5,613,604.28

¹ Investments in culture managed by Instituto Lojas Renner.² Investments in culture managed by Lojas Renner’s Corporate Marketing jointly with Instituto Lojas Renner.³ Sums invested in the purchase of food and clothing donations to assist towns affected by environmental disasters.4 Clothing donations when opening Renner stores in new towns and to the RS, SC and SP state governments.5 Sum not accounted for.6 The sum for 2011 is different from that disclosed in the previous report, as it includes funds for clothing donations.

Instituto Lojas Renner intends to invest R$21

million by 2013 in projects with a priority in

inserting women in the labor market. These

investments will be aimed at training and the

creation of employment and income in the

communities where the Company is present,

covering all of the country’s regions.

These projects are funded by the company it-

self, by state and federal fiscal incentives and

funds arising from Campanha Mais Eu, which

allocates 5% of 4 days of net sales revenues

to the Institute. The funds collected by the

campaign are allocated to the Escola de Cos-

tura and Escola de Varejo programs, and to

projects submitted by social organizations by

means of call notices, in order to train women

and to create employment and income.

Mais Eu CampaignThe Mais Eu campaign held in 2012 exceeded

expectations with it results in excess of the

previous year’s, having collected R$1.3 million

in 4 days of campaigning. With the Na Renner

invitation, you can try on new clothes and

somebody may experience a new life, custom-

ers were inspired to combine the pleasure of a

purchase experience with the joy of support-

ing a relevant action for training and creating

employment and income for women. From Au-

gust 13 to 16, 5% of net sales from 173 of the

network’s stores and from e-commerce were

transferred to Instituto Lojas Renner.

@institutorenner

www.institutolojasrenner.org.br


This publicity campaign, starred by women

who already had been submitted to the insti-

tute’s projects, had its presence stressed in

points of sales, newspaper and magazine ads,

email marketing, folders, TV films and radio

spots. The disclosure showed examples of

people who got up and went after their dreams,

worked at it and supported by Lojas Renner,

were given the shove they required to get there.

The campaign has been held since 2008 in or-

der to mobilize staff members, customers, sup-

pliers and society in general for women’s cause,

and has already collected R$4,937,519.81,

benefiting 7,834 women through 61 projects in

17 Brazilian states and in Distrito Federal.

Creation of Employment and Income for Women GRI EC8 | EC9 | DMA EC

Training actions aimed at the creation of em-

ployment and income for women include in-

vestments in social projects selected through

call notices, in the Escola de Costura and

Rede Parceria Social programs.

Investment in creation of employment and income projects 2012 2011 2010

Total investments (R$)* 1,617,404 1,535,545 2,199,691

Projects each year 58 50 59

Empowerment of women (women benefited yearly) 3,382 3,733 4,327

* Investments arising from the Mais Eu, Escola de Costura and Rede Parceria Social campaigns (from tax rebates). The figures do not refer to sums transferred during the year but to the projects with activities over the period.


Project Supported by Call NoticesThe institute discloses every year a notice on social

projects dedicated to training and creating employ-

ment and income for women. Those social organiza-

tions that qualify in the criteria covered by the no-

tice may enroll their projects directly in the institute’s

website. The Institute’s staff is in charge of selecting

and assessing projects, which takes place as fol-

lows: score (pursuant to previously established crite-

ria), confirmation of legal documentation and visit by

social organizations.

As for project monitoring procedures, social organiza-

tions with funded projects are visited regularly by the

institute’s representatives, who will assess the use of

funds and progress of actions. Every 3 months enti-

ties will forward reports of activities, submission of

accounts and photos in evidence of achievements.

During this fiscal year 32 project were sponsored

throughout the country’s regions.

The institute was restructured in the current year and

therefore no notices were published. Nonetheless, in

the absence of a notice for 2012, transfers for projects

covered by the 2011 notice (disclosed in the year’s 4th

quarter) continued in 2012. The next notice for the se-

lection of new projects will be disclosed in April 2013.

Escola de Costura Renner ProgramThe Escola de Costura Renner is another relevant

program in qualifying women for the labor market.

Dating back to 2011, it provides courses free of

charge to adults over 18 years on using sewing ma-

chines and equipment, technical standards and top-

ics such as health and occupational safety.

This action was made possible through a partner-

ship with Instituto Lojas Renner and Company re-

sale suppliers, civil society organizations and Ser-

viço Nacional de Aprendizagem Industrial (SENAI).


Our stakeholder suppliers retain roughly 70%

of the trained professionals at the end of the

course. Other applicants conclude the project

prepared to enter the labor market.

In 2012 Renner organized the first group in

the municipality of Campo Grande (MS) with

25 women and in Macatuba (SP) with 62

women. The program was extended to other

towns throughout the years, and trained 849

seamstresses in the entire country, by stress-

ing these actions.

Parceria Social NetworkThe Parceria Social network is a joint action

by the state of Rio Grande do Sul’s Secretary

of Labor and Social Development with social

organizations and companies. Projects pre-

pared and put into practice by social entities

supported by the productive sector – compa-

nies – that fund the activity. Funds are partly

provided by tax rebates (as much as 75% of

ICMS tax) and by company cash flow.

The program’s fourth edition in 2012 includes

Lojas Renner’s participation in two notices in

a partnership with Instituto Nestor de Paula,

involving projects in favor of women.

Training Young People GRI EC8 | EC9 | DMA EC

Projeto PescarLojas Renner is a sponsor since 2004 of

Fundação Projeto Pescar, which provides

technical training units for needy young peo-

ple and their insertion in the labor market. The

project dates back 37 years and consists in

an extensive network of companies that define

their training courses in accordance with their

business strategies.

Courses provided by the Company in 2012

were focused on two targets: one of these

was customer assistance, with groups in Por-

to Alegre (RS) and Campinas (SP), and anoth-

er was logistics, with groups in São Bernardo

do Campo (SP). The total of 800 class hours

is divided in theoretical and practical classes,

held in the stores or distribution centers.

Classes are given by Lojas Renner staff mem-

bers who convey the Renner Values while

sharing knowledge and retail experience with

young students. These instructors form par-

ticipants in the Estilo Solidário program, a Lo-

jas Renner corporate volunteer project – see

more below.

Lojas Renner Projeto Pescar 2012 2011 2010

Total investments (R$) 268,800 268,800 183,000

Young people trained* 50 139 40

Employability by young people (%) 90 85 85

* The difference in the number of youths trained by Projeto Pescar between 2011 and 2012 results from closing down of the São Bernardo do Campo and Campinas units in the course of 2012. This occurred owing to a change in legislation under the MTE Normative Ruling (MTE ordinance 723/12) which led to changes in the country’s training system. The Porto Alegre unit continues its activities. The project will be included in the Escola de Varejo activities.


Escola de Varejo Program As an example of seeking to continually enhance

its activities and to meet its ensuing expansion

requirements, in 2012 Lojas Renner launched

the Escola de Varejo program, which encour-

ages professional training and insertion of young

people in the labor market, in a partnership with

non-governmental entities. This consists in the

provision of free of charge courses regarding as-

sistance in the retail trade, ensuring employability

and benefiting the regional economy, with a pilot

group in Salvador (BA) formed by 18 youths. A

second group of 15 participants is being orga-

nized in the same city.

This action trains young people to work in the

Company based on the Renner Values and is

closely related to Lojas Renner business strate-

gies and sustainability guidelines, as it expedites

retaining employees already adapted to a retail

profile, from local communities and young train-

ees. Lojas Renner staff members participating

as instructors also display their solidarity through

the corporate volunteer spirit acquired among

the corporate values.

The program was started with a pilot group in

Salvador (BA) of 18 young people. A second

group of 15 participants is being organized in the

same city. With an estimated investment totaling

R$500 thousand for 2013, the target consists in

training 115 youths and expanding the number

of schools to five, with new units in Santa Cata-

rina and São Paulo. The target in the future is to

put Escola de Varejo in place the program in all

the regions covered by the Company.


Local Development GRI SO1 | EC8 | EC9 | DMA SO | DMA EC

Bom Jesus NetworkThe Bom Jesus network was organized in 2009 to assist the community neighboring the Lojas

Renner administration facilities in Porto Alegre (RS). In involves projects directed at women, children

and teenagers and is focused on inserting the community in the labor market, and integrating children

and youths in educational and sporting programs. It also includes development goals devised jointly

with community leaders, public bodies and companies headquartered in the district.

Bom Jesus Network¹ 20122 20113 20103

Total investments (R$) 854,773.90 292,825.42 644,073.04

Total projects each year 10 2 9

1 Funds arising from the Solidarity law.² Projects supported by the first call notice.² Projects supported by the second call notice.

The network seeks to strengthen the local

community’s independence, preparing it to

continue on its own on the project’s conclu-

sion. The Bússola do Desenvolvimento is one

of the highlighted actions covered by the net-

work, in a partnership with the town hall and

serving as a local development indicator, mea-

suring the results of the actions implemented.

In 2012 the Bússola’s second edition was

postponed to 2013 owing to the municipality’s

electoral campaigns.

During the project’s three years it was possible

to feel the improved integration by social or-

ganizations and the more vigorous community

leaderships in the district. The outcome fasci-

nated everybody involved and encouraged a

continued investment in the community for the

next five years, intensifying the changes put

in place.

Estilo Solidário ProgramLojas Renner knows that changes in society

will occur only with the participation of people

who live in it, and hence since 2009 it holds

its corporate volunteer program: the Estilo

Solidário. This is its manner of encouraging

volunteer work among its staff members, in

addition to holding online and live courses on

the subject of individual assertion.

Support by Lojas Renner to this attitude is vis-

ible, for example, in the approval to carry out

such activities during working hours and limit-

ed to four hours per month, and the use of the

company’s physical resources such as rooms

and support material, to organize actions and

hold regular meetings to monitor and assess

activities. To this end, the Company has vol-

unteer groups located in its units throughout

Brazil, engaged in the Pescar and Escola de

Varejo projects, as well as in other projects

sponsored by the institute.


1 – Calculation base 2012 – R$ thousands 2011 – R$ thousands

Net Revenues (RL) 3,645,414.00 3,105,831.00

Operating Profit (RO) 355,401.00 336,907.00

Gross Payroll (FPB) 278,719.00 232,412.00

Total Value Added (VAT) 2,076,738.00 1,776,728.00

2- Internal Social IndicatorsR$

thousands% over FPB % over RL % over VAT

R$ thousands

% over FPB % over RL % over VAT

Meals 21,467 7.70 0.59 1.03 24,396 10.50 0.79 1.37

Mandatory social charges 96,997 34.80 2.66 4.67 80,880 34.80 2.60 4.55

Private pension plan 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Health 24,925 8.94 0.68 1.20 21,035 9.05 0.68 1.18

Health and occupational safety 787,136 282.41 21.59 37.90 0 0.00 0.00 0.00

Education 311 0.11 0.01 0.01 311 0.13 0.01 0.02

Culture 902 0.32 0.02 0.04 426 0.18 0.01 0.02

Professional training and development 8,297 2.98 0.23 0.40 7,540 3.24 0.24 0.42

Nursery and nursery subsidy 326 0.12 0.01 0.02 288 0.12 0.01 0.02

Sports 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Profit sharing 27,497 9.87 0.75 1.32 4,949 2.13 0.16 0.28

Commuting 15,182 5.45 0.42 0.73 14,517 6.25 0.47 0.82

Others 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Total - internal social indicators 983,040 352.70 26.97 47.34 154,342 66.41 4.97 8.69

3- External Social IndicatorsR$

thousands% over RO % over RL % over VAT

R$ thousands

% over RO % over RL % over VAT

Education 393 0.11 0.01 0.02 268 0.08 0.01 0.02

Culture 2,202 0.62 0.06 0.11 3,389 1.01 0.11 0.19

Health and sanitation 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Sports 960 0.27 0.03 0.05 230 0.07 0.01 0.01

Eradication of hunger and food safety 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Sectoral indicator 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Others 11,872 3.34 0.33 0.57 10,799 3.21 0.35 0.61

Total contributions to society 15,427 4.34 0.42 0.74 14,686 4.36 0.47 0.83

Taxes (less social charges) 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Total - external social indicators 15,427 4.34 0.42 0.74 14,686 4.36 0.47 0.83

Social Balance Sheet Ibase + NBCT 15 TP GRI EC1 | DMA EC


4- Environmental IndicatorsR$

thousands% over RO % over RL % over VAT

R$ thousands

% over RO % over RL % over VAT

4.1 – Investments related to company production/operations

Expropriation of land 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Environmental liabilities and contingencies 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Technological and industrial development program 245,778 69.16 6.74 11.83 185,618 55.09 5.98 10.45

Energy conservation 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Environmental education 10,100 2.84 0.28 0.49 85,000 25.23 2.74 4.78

Sectoral indicator 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Others 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Total investments related to company production/operations 255,878 72.00 7.02 12.32 270,618 80.32 8.71 15.23

4.2 – Investments in external programs and/or projects

Environmental education projects in communities 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Preservation and/or recovery of 0 0.00 0.00 0.00 0 0.00 0.00 0.00

degraded environments

Others 0 0.00 0.00 0.00 0 0.00 0.00 0.00

Total investments in external programs 0 0.00 0.00 0.00 0 0.00 0.00 0.00

and/or projects

Total investments in the environment (4.1 + 4.2) 255,878 72.00 7.02 12.32 270,618 80.32 8.71 15.23

Breakdown of investments in the environment R$ thousands % of total R$ thousands % of total

Total investments in environmental prevention actions 219,903 85.94 185,618 68.59

Total investments in environmental maintenance actions 25,875 10.11 0 0.00

Total investments in environmental offsetting actions 10,100 3.95 85,000 31.41

Number of environmental, administration and court 0 0 0

proceedings filed against the entity:

Sum of fines and indemnities with regard to environmental matters imposed by administration and/or courts

0.00 0.00

With regard to annual goals to minimize residues, consumption in general in production/operations, to increase efficiency in the use of natural resources, the company:

( ) has no goals (X) complies with 51 to 75%( ) complies with ( ) complies with 76 to 100% 0 to 50%

( ) has no goals (X) complies with 51 to 75%( ) complies with ( ) complies with 76 to 100% 0 to 50%

5- Staff Member Indicators 2012 2011

IN UNITS IN UNITS

Nbr of employees at end of period 14,881 14,035

Nbr of admissions during period 8,142 7,330

Nbr of terminations during period 7,240 6,346

Nbr of interns 16 24

Nbr of employees over 45 years of age 867 794

Nbr of employees per age bracket:

Below 18 years of age 322 119

From 18 to 35 years of age 11,956 11,423

From 36 to 45 years of age 1,864 1,783

From 46 to 60 years of age 735 666

Over 60 years of age 38 44


Nbr of employees per education:

Illiterate 0 0

Basic schooling 556 522

Middle/technical schooling 12,922 12,210

Higher education 1,258 1,193

Post-graduates 179 110

Nbr of women working in the company 10,767 10,112

% of leadership functions held by women 53.8 52.20

Nbr of men working in the company 4,148 3,923

% of leadership functions held by men 46.20 47.80

Nbr of blacks working in the company 4,331 3,918

% of leadership functions held by blacks 0.71 0.53

Nbr of handicapped people 217 219

Gross compensation broken down by:

Employees 271,789.00 226,682.00

Managers 6,930.00 5,730.00

Difference between lowest salary paid by the company and Minimum Salary

4.82 4.49

6 – Relevant information with regard to the exercise of corporate citizenship 2012 2011

Total number of occupational accidents 36 31

Social and environmental projects developed by the company were defined by:

( ) senior management(X) senior management and managers( ) every employee

( ) senior management(X) senior management and managers( ) every employee

Safety and health standards in the work environment were defined by:

(X) senior management( ) every employee( ) everybody + CIPA

(X) senior management and managers( ) every employee( ) everybody + CIPA

Regarding free trade union association, the right to collective bargaining and in-house representation of employee, the company:

( ) does not get involved(X) complies with WTO standards( ) encourages and abides by the WTO

( ) does not get involved(X) complies with WTO standards( ) encourages and abides by the WTO

Private pension plans include:( ) senior management( ) senior management and managers( ) every employee

( ) senior management( ) senior management and managers( ) every employee

Profit sharing includes:( ) senior management( ) senior management and managers(X) every employee

( ) senior management( ) senior management and managers(X) every employee

When selecting employees, the same ethical and social and environmental responsibility standards adopted by the company:

( ) are not considered( ) are suggested(X) are required

( ) are not considered( ) are suggested(X) are required

With regard to employee participation in volunteer work programs, the company:

( ) does not get involved( ) supports(X) organizes and encourages

( ) does not get involved( ) supports(X) organizes and encourages

Total number of consumer complaints and criticism: in the company 84,779 in Procon and Law courts

in the company 92,429 in Procon and Law courts

Sum of fines and indemnities to customers ordered by consumer protection and defense bodies or by Law courts

in Procon 138,084 in Law courts 11,086,984 in Procon 47,332 in Law courts 9,378,547

Number of labor claims:

Filed against the entity 850 752


Deemed with grounds 259 185

Deemed groundless 109 116

Total sum of indemnities and fine paid by order of the Law courts:

17,700.381 12,590.234

Total value added payable (in R$ thousands) 2,076,738.00 1,776,728.00

Breakdown by Value Added R$ thousands % of total R$ thousands % of total

Government 995,266.00 47.92 857,022.00 48.24

Employees 456,657.00 21.99 379,156.00 21.34

Shareholders 266,551.00 12.84 252,680.00 14.22

Third parties 269,414.00 12.97 203,643.00 11.46

Retained 88,850.00 4.28 84,227.00 4.74

7 – Other Information

2- Internal Social Indicators – Education: Sums invested in in-company MBAs from March 2011 to October 2012.3- External Social Indicators – Others: Expenditures with the creation of employment and income for omen, local development, support to children and teenag-ers (Solidarity law), support to the elderly (Elderly fund), clothing donations to the state governments of RS, SC and SP. 6 – Relevant information with regard to the exercise of corporate citizenship: total number of consumer complaints and criticism to the company: complaints directly at the Enchantmeters in the stores. Through this system, claims are settled punctually by managers in each store. - Number of labor proceedings: to inform of labor lawsuits filed against the entity, deemed to be with grounds and groundless, those proceedings were considered that had been shelved during 2011 and 2012.Information on Camicado will be disclosed in 2013 only.



Index GRI 3.12

Profile Indicators

1. Profile Indicators Report AR’s Pages Global Compact

1.1Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.

Total 4

1.2 Description of key impacts, risks, and opportunities. Total 4; 39; 40

2. Organization Profile Report AR’s Pages Global Compact

2.1 Name of the organization. Total 11

2.2 Primary brands, products, and/or services. Total 15; 17; 19; 20; 23

2.3Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Total 11; 15

2.4 Location of organization’s headquarters. Total 15

2.5Number of countries where the organization operates, and names of countries with either ma-jor operations or that are specifically relevant to the sustainability issues covered in the report.

Total 16

2.6 Nature of ownership and legal form. Total 11

2.7Markets served (including geographic breakdown, sectors served, and typesof customers/beneficiaries).

Total 6; 11; 15; 16

2.8 Scale of the reporting organization. Total 11; 15; 17; 48; 50; 51

2.9 Significant changes during the reporting period regarding size, structure, or ownership. Total 15

2.10 Awards received in the reporting period. Total 44

Repo

rt Ex

tern

ally

Assu

red

Level of Appliance of the Report

With

Exter

nal V

erific

ation

Repo

rt Co

ntent

With

Exter

nal V

erific

ation

Respond to items:1.12.1 to 2.103.1 to 3.8, 3.10 to 3.124.1 to 4.4; 4.14 to 4.15.

Respond to all of the criteria listed for Level C plus:1.23.9, 3.134.5 to 4.13, 4.16 to 4.17.

The same required for Level B.

Not required.

Resu

ltRe

sult

Resu

lt

G3 Profile

Information onthe G3 Management

Approach

G3 PerformanceIndicators for the

Industry Supplement

Information on the Management Approach for each Indicator Category.

Management Approach reported for each Indicator Category.

Respond to at least 10 Performance Indicators, including at least one of each of the following areas: Social, Economic and Environmental.

Respond to at least 20 Performance Indicators,including at least one of each of thefollowing areas: Economic, Environmental,Human Rights, Labor Practices, Societyand Product Responsibility.

Respond to each essential G3Indicator and the Industry Supplement(*) with due consideration of the Principle of Materiality in one of the following forms:(a) responding to the Indicator, or(b) explaining the reason for omission

* Sectorial supplement in its final version.

C C+ B B+ A A+

With

Exter

nal V

erific

ation

Based on GRI guidelines, version G3.1, Lojas Renner meets the applicable Level B requisites for disclosure of information

on the performance of economic, social and environmental – without external verification – and submits the assessment in

connection with the company’s representation pursuant to the criteria depicted in the figure that follows:

108 INDEX

3. Report Parameters Report AR’s Pages Global Compact

3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Total 6

3.2 Date of most recent previous report (if any). Total 6

3.3 Reporting cycle (annual, biennial, etc.) Total 6

3.4 Contact point for questions regarding the report or its contents. Total 6

3.5Process for defining report content, including: a) determining materiality, b) prioritizing topics within the report, and c) identifying stakeholders the organization expects to use the report.

Total 6; 7

3.6Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, and suppliers).

Total 6

3.7State any specific limitations on the scope or boundary of the report. See completeness Principle for explanation of scope.

Total 6

3.8Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Total 6

3.9Data measurement techniques and the bases of calculations, including assumptions and tech-niques underlying estimations applied to the compilation of the indicators and other information in the report.

Total 6

3.10Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/peri-ods, nature of business, and measurement methods).

Total 6

3.11Significant changes from previous reporti ng periods in the scope, boundary, or measure-ment methods applied in the report.

Total 6; 11

3.12 Table identifying the location of the Standard Disclosures in the report. Total 107

3. Report Parameters Report AR’s Pages Global Compact

3.13 Policy and current practice with regard to seeking external assurance for the report. Total

There was no external check of data regarding

GRI indicators. Economic and financial data are in

accordance with the Finan-cial Statements audited by PricewaterhouseCoopers Auditores Independentes.

4. Governance, Commitments, and Engagement Governance Report AR’s Pages Global Compact

4.1Governance structure of the organization, including committees under the highestgovernance body responsible for specific tasks, such as setting strategy ororganizational oversight.

Total 34

4.2Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).

Total 35

4.3For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

Total 35

4.4Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Total 29; 35

4.5Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

Total 38

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Total 37

4.7Process for determining the composition, qualifications and expertise of the members of the highest governance body and its committees,including any consideration of gender and other indicators of diversity.

Total 34; 35; 39

4.8Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Total 11; 14

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

Total 26; 28; 35

4.10Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Total 34; 35; 39


Economic Performance Indicators

Management

DMA EC Disclosure on Economic Management Approach Report AR’s Pages Global Compact

Aspect Economic Performance TotalFinancial statements |

Ibase

Aspect Market Presence Total 67; 70; 89; 92

Aspect Indirect Economic Impacts Total 93 -101

Aspect: Economic Performance Report AR’s Pages Global Compact

Core EC1Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations, and other community investments, retained earnings, and payments to capital providers and governments.

Total

51 - 55102 - 105 Financial

statements

Core EC2Financial implications and other risks and opportunities for the organization’s activities due to climate change.

Total 40 7; 8

Core EC3 Coverage of the organization’s defined benefit plan obligations. TotalThe Company does not

provide a private pension plan to its employees.

Core EC4 Significant financial assistance received from government. TotalThe Company does not

receive financial assistance from the government.

Aspect: Market Presence Report AR’s Pages Global Compact

Aditional EC5Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

Total 70 - 71 6

Core EC6Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Total 89; 92

Core EC7Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.

Total 67 6

Aspect: Indirect Economic Impacts Report AR’s Pages Global Compact

Core EC8Development and impact of infrastructure investments and servicesprovided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Total 95 - 101

Aditional EC9Understanding and describing significant indirect economic impacts, including the extent of impacts.

Total 96 - 101

4.11Explanation of whether and how the precautionary approach or principle is addressed by the organization.

Total 26; 29; 40

4.12Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Total 43

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: a) has positions in governance bodies, b) participates in projects or committees, c) provides substantive funding beyond routine membership dues or d) views membership as strategic.

Total 43

4.14 List of stakeholder groups engaged by the organization. Total 6; 8

4.15 Basis for identification and selection of stakeholders with whom to engage. Total 6 - 9

4.16Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Total 7; 8

4.17Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Total 7; 30

110 INDEX

Environmental Performance Indicators

Management

DMA EN Disclosure on Environment Management Approach Report AR’s Pages Global Compact

Aspect Materials Partial 58 8; 9

Aspect Energy Total 59; 66 7; 8; 9

Aspect Water Total 59 7; 8; 9

Aspect Biodiversity Total 65 7; 8

Aspect Emissions, Effluents, and Waste Total 59; 60; 62; 65; 66 7; 8; 9

Aspect Products and Services Total 58 - 60; 62; 64; 66 7; 8; 9

Aspect Compliance Total 66 8

Aspect Transport Total 60; 65 8

Aspect Overall Total 66 7; 8; 9

Aspect: Materials Report AR’s Pages Global Compact

Core EN1 Materials used by weight or volume. Partial 58 8

Core EN2 Percentage of materials used that are recycled input materials. Total 58 8; 9

Aspect: Energy Report AR’s Pages Global Compact

Core EN3 Direct energy consumption by primary energy source. Total 59 8

Core EN4 Indirect energy consumption by primary source. Total 59 8

Aditional EN5 Energy saved due to conservation and efficiency improvements. Partial 59 7; 8; 9

Aditional EN6Initiatives to provide energy-efficient or renewable energy basedproducts and services, and reductions in energy requirementsas a result of these initiatives.

Total 23; 66 7; 8; 9

Aditional EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Partial 59 7; 8; 9

Aspect: Water Report AR’s Pages Global Compact

Core EN8 Total water withdrawal by source. Total 59 8

Aditional EN9 Water sources significantly affected by withdrawal of water. Total 59 8

Aditional EN10 Percentage and total volume of water recycled and reused. Total 59 7; 8; 9

Aspect: Biodiversity Report AR’s Pages Global Compact

Core EN11Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected areas.

Total 65 7; 8

Core EN12Description of significant impacts of activities, products, and serviceson biodiversity in protected areas and areas of high biodiversity valueoutside protected areas.

Total 65 7; 8

Aditional EN13 Habitats protected or restored. Total 65 7; 8

Aditional EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. Total 65 7; 8

Aditional EN15Number of IUCN Red List species and national conservation list specieswith habitats in areas affected by operations, by level of extinction risk.

Total 65 8

Aspect: Emissions, Effluents, and Waste Report AR’s Pages Global Compact

Core EN16 Total direct and indirect greenhouse gas emissions by weight. Total 60 8

Core EN17 Other relevant indirect greenhouse gas emissions by weight. Total 60 8

Aditional EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Total 60; 66 7; 8; 9

Core EN19 Emissions of ozone-depleting substances by weight.Not

applicable

Not applicable, as there is no productive

process likely to emit these pollutants.

8


Core EN20 NO, SO, and other significant air emissions by type and weight.Not

applicable

Not applicable,as there is no productive

process likely to emit these pollutants.

8

Core EN21 Total water discharge by quality and destination. Total 59 8

Core EN22 Total weight of waste by type and disposal method. Total 62; 63 8

Core EN23 Total number and volume of significant spills. Total 62 8

Aditional EN24Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

Total 62 8

Aditional EN25Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

Total 65 7; 8

Aspect: Products and Services Report AR’s Pages Global Compact

Core EN26Initiatives to mitigate environmental impacts of products and services,and extent of impact mitigation.

Total 58 - 60; 62; 64; 66 7; 8; 9

Core EN27Percentage of products sold and their packaging materials that are reclaimed by category.

Partial 58; 64 7; 8; 9

Aspect: Compliance Report AR’s Pages Global Compact

Core EN28Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Total There were no cases. 8

Aspect: Transport Report AR’s Pages Global Compact

Aditional EN29Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

Total 60; 65 8

Aspect: Overall Report AR’s Pages Global Compact

Aditional EN30 Total environmental protection expenditures and investments by type. Total 66 7; 8; 9

Labor Practices and Decent Work Performance Indicators

Management

DMA LA Disclosure on Labor Practices Management Aprroach Report AR’s Pages Global Compact

Aspect Employment Total 67 - 70; 75 6

Aspect Labor/Management Relations Total 93 1; 3

Aspect Occupational Health and Safety Total 72 - 74

Aspect Training and Education Total 79 - 82

Aspect Diversity and Equal Opportunity Total 75 - 77 1; 6

Aspect Ratio of basic salary between men and women Total 70; 72 1

Aspect: Employment Report AR’s Pages Global Compact

Core LA1Total workforce by employment type, employment contract, and region, broken down by gender.

Partial 67 - 69; 75; 77

Core LA2Total number and rate of new employee hires and employee turnover by age group, gender, and region.

Partial 67 - 69 6

Aditional LA3Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Total 70 - 72

112 INDEX

Aspect: Labor/Management Relations Report AR’s Pages Global Compact

Core LA4 Percentage of employees covered by collective bargaining agreements. Total 93 1; 3

Core LA5Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

Total 93 3

Aspect: Occupational Health and Safety Report AR’s Pages Global Compact

Aditional LA6Percentage of total workforce represented in formal joint management – worker health and safety committees – that help monitor and advise on occupational health and safety programs.

Total 73

Core LA7Rates of injury, occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region and by gender.

Partial 73 - 74

Aspect: Occupational Health and Safety Report AR’s Pages Global Compact

Core LA8Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Total 73

Aditional LA9 Health and safety topics covered in formal agreements with trade unions. Total 73

Aspect: Training and Education Report AR’s Pages Global Compact

Core LA10Average hours of training per year per employee by gender, and byemployee category.

Total 79; 80

Aditional LA11Programs for skills management and lifelong learning that support the contin-ued employability of employees and assist them in managing career endings.

Total 79; 81; 82

Aditional LA12Percentage of employees receiving regular performance and career develop-ment reviews, by gender.

Total 70; 79; 82

Aspect: Diversity and Equal Opportunity Report AR’s Pages Global Compact

Core LA13Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indica-tors of diversity.

Total 75 - 77 1; 6

Aspect: Diversity and Equal Opportunity Report AR’s Pages Global Compact

Core LA14Ratio of basic salary and remuneration of women to men by employee cat-egory, by signifi cant locations of operation.

Total 70; 71 1

Human Rights Performance Indicators

Management

DMA HR Disclosure on Human Rights Management Approach Report AR’s Pages Global Compact

Aspect Investment and Procurement Practices Total 41; 89; 90; 93 1; 2; 4; 5; 6

Aspect Non-Discrimination Total 90 1; 6

Aspect Freedom of Association and Collective Bargaining Total 90 - 93 1; 3

Aspect Child Labor Total 41; 89; 90; 92 1; 4; 5

Aspect Forced and Compulsory Labor Total 41; 89; 90; 93 1; 4; 5

Aspect Security Practices Total 41 1; 2

Aspect Indigenous Rights Total None. 1

Aspect: Investment and Procurement Practices Report AR’s Pages Global Compact

Core HR1 Percentage and total number of signifi cant investment agreements and con-tracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

Total 89 - 90 1; 2; 4; 5; 6

Core HR2Percentage of signifi cant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

Total 89 - 91 1; 2; 4; 5; 6

Aditional HR3Total hours of employee training on policies and procedures concerning as-pects of human rights that are relevant to operations, including the percentage of employees trained.

Total 41 1; 2; 4; 5;


Aspect: Non-Discrimination Report AR’s Pages Global Compact

Core HR4 Total number of incidents of discrimination and corrective actions taken. Total 90 1; 6

Aspect: Freedom of Association and Collective Bargaining Report AR’s Pages Global Compact

Core HR5Operations and significant suppliers identifi ed in which the right to exercise freedom of association and collective bargaining may be voilated or at significant risk, and actions taken to support these rights.

Total 90 1; 3

Aspect: Child Labor Report AR’s Pages Global Compact

Core HR6Operations and significant suppliers identified as having significant risk for inci-dents of child labor, and measures taken to contribute to the effective abolition of child labor.

Total 41; 89; 90; 92 1; 4; 5

Aspect: Forced and Compulsory Labor Report AR’s Pages Global Compact

Core HR7Operations and significant suppliers identifi ed as having signifi cant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

Total 41; 89; 90; 93 1; 4; 5

Aspect: Security Practices Report AR’s Pages Global Compact

Aditional HR8Percentage of security personnel trained in the organization’s policies or proce-dures concerning aspects of human rights that are relevant to operations.

Total

Lojas Renner has no surveillance personnel in its

stores, but rather inspec-tors that assist in inhibiting

the theft of goods. In the event of such cases, the

inspectors are instructed to call on the shopping mall’s

surveillance team.

1; 2

Aspect: Indigenous Rights Report AR’s Pages Global Compact

Aditional HR9Total number of incidents of violations involving rights of indigenous people and actions taken.

Total None. 1

Society Performance Indicators

Management

DMA SO Disclosure on Social Management Approach Report AR’s Pages Global Compact

Aspect Local Community Total 30; 93 - 101 1

Aspect Corruption Total 41 10

Aspect Public Policy Total 93; 94 10

Aspect Anti-Competitive Behavior Total None.

Aspect Compliance Total

In 2012 Lojas Rennerwas fined R$348,101 ow-ing to administrative pro-ceedings by the Ministry

of Employment and Labor due to non-compliance

with the full allowance for hiring handicapped persons – article 93 in

Law No. 8213/91.

114 INDEX

Aspect: Local Community Report AR’s Pages Global Compact

Core SO1Percentage of operations with implemented local community engagement, impact assessments, and development programs.

Total 30; 93 -101 1

Aspect: Corruption Report AR’s Pages Global Compact

Core SO2Percentage and total number of business units analyzed for risks relatedto corruption.

Total 41 10

Core SO3Percentage of employees trained in organization’s anti-corruption policiesand procedures.

Total 41 10

Core SO4 Actions taken in response to incidents of corruption. Total 41 10

Aspect: Public Policy Report AR’s Pages Global Compact

Core SO5Public policy positions and participation in public policy developmentand lobbying.

Total 93 10

Aditional SO6Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Total 93 10

Aspect: Anti-Competitive Behavior Report AR’s Pages Global Compact

Aditional SO7Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

Total None.


Core SO8Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Total

In 2012 Lojas Renner was fined R$348,101 owing to administrative proceedings by the Ministry of Employ-

ment and Labor due to non-compliance with the full

allowance for hiring handi-capped persons – article 93

in Law No. 8213/91.

Product Responsibility Performance Indicators

Management

DMA PR Disclosure on Products and Services Management Approach Report AR’s Pages Global Compact

Aspect Customer Health and Safety Total 84

Aspect Product and Service Labeling Total 84 - 88 8

Aspect Marketing Communications Total 84

Aspect Customer Privacy Total None.

Aspect Compliance Total

In 2012 the Administrative Appeal filed by the

Company against the Defi-ciency Notice by PROCON

São Paulo was judged, regarding non-compliance

with State Law No. 13,747/2009, which

requires suppliers to spec-ify a shift to deliver goods

and/or provide services.


Aspect: Customer Health and Safety Report AR’s Pages Global Compact

Core PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Total 84

Aditional PR2Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Total None.

Aspect: Product and Service Labeling Report AR’s Pages Global Compact

Core PR3Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Total 84 8

Aditional PR4Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

Total None. 8

Aditional PR5Practices related to customer satisfaction, including results of surveys measur-ing customer satisfaction.

Total 84 - 88

Aspect: Marketing Communications Report AR’s Pages Global Compact

Core PR6Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Total There is not any.

Aditional PR7Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Total None.

Aspect: Customer Privacy Report AR’s Pages Global Compact

Aditional PR8Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Total None.


Core PR9Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Total

In 2012 the Administra-tive Appeal filed by the Company against the Deficiency Notice by PROCON São Paulo

was judged, regarding non-compliance with State

Law No. 13,747/2009, which requires suppliers to specify a shift to de-

liver goods and/or provide services. Sum of fine:

R$505,493.33.

116

Corporate Information GRI 3.4

HeadquartersLojas Renner S.A.Avenida Joaquim Porto Villanova, 401

Porto Alegre (RS) – ZIP 91410-400

Phone: + 55 51 2121-7044

Fax: + 55 51 2121-7121

E-mail: [email protected]

Site: www.lojasrenner.com.br

Suggestions, inquiries and comments on this report:Lojas Renner S.A.Sustainability Management

Avenida Joaquim Porto Villanova, 401

Porto Alegre (RS) – ZIP 91410-400

Phone: + 55 51 3272-2577

Fax: + 55 51 2121-7266

E-mail: [email protected]


CreditsCoordinationHuman Resources Officer – Sustainability Management

Contents Consultancy and Graphic DesignTheMediaGroup

IllustrationsDesign – Development and Style by Lojas Renner

Initiation of chapters, tags, GHG inventories and EcoEstilo – Canhotórium Arte Aplicada

Other illustrations – TheMediaGroup

PrintingBraspor

PhotosSocial project photos – Ita Kirsch

Store front photo – Celso Chittolina

Other photos – Felipe Gombossy

The models in this report’s photos are Lojas Renner staff members. The fees intended

as payment to these models will be donated to Instituto Lojas Renner.

2012Annual Sustainability Report

2012

Ann

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www.lojasrenner.com.br

Lojas Renner Annual Sustainability Report 2012

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Transcript of Lojas Renner Annual Sustainability Report 2012