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Progress in performance

Integrity and a culture of compliance
Customer
focus
Developing
talent
Product innovation, quality and safety
Environmental management: circularity and climate action

Integrity and a culture of compliance

Grupo Lamosa has a Code of Ethics, applicable to all employees. The company also encourages suppliers and distributors to apply it in their organizations. Additionally, the company’s Transparency Line provides a way for possible irregular events to be reported. Any complaints received are investigated and, depending on their nature and the outcome of the investigation, consequences applied.

Employees receive instruction in the Code of Ethics as part of the induction program. Moreover, campaigns that call for a culture of legality and honesty are held throughout the year.

The industry is evolving towards a greater use of technology in processes, including online information and data analytics. Grupo Lamosa works continuously to guarantee the security of its systems and to leverage every opportunity to strengthen communication across the value chain, including with the customer.

Corporate governance

Grupo Lamosa has a solid track record extending over more than a century, supported over the years by its corporate governance. Listed on the Mexican Stock Exchange since 1951, the company adheres to the corresponding Mexican stock market legislation, to the Mexican Business Coordinating Council’s Code of Best Corporate Practices and to related international recommendations.

This guarantees that the company’s decisions strengthen its position over time and generate value for all stakeholders, including investors.

The Annual Ordinary General Stockholders’ Assembly establishes the number of members of the Board of Directors and appoints them, including the alternates, with the exception of those appointed directly by stockholders with more than 10% of the capital stock. The Assembly is also responsible for approving the company’s annual results presented by the Board of Directors.

The Board of Directors defines the company strategy, approves the annual budget, reviews the operational performance and results for which the management team is responsible, and ensures compliance with applicable legislation, holding an ordinary meeting at least once a quarter. The directors receive remuneration approved by the Annual Ordinary General Stockholders’ Assembly for their attendance.

Directors are appointed for a period of one year and can be reelected, with no limit to such renewal. They are chosen on the basis of the guidelines established in Grupo Lamosa’s company bylaws. The selection of independent directors also conforms to the requirements of Mexican Stock Market Law to guarantee that they perform their role appropriately.

In the absence of an express appointment by the Annual Ordinary General Assembly, the members of the Board of Directors may appoint the Chairman and Secretary of the same, as well as the members of the committees that support the Board. The Board of Directors is also responsible for appointing the company’s Chief Executive Officer and senior management.

During 2021, the Board comprised 12 directors, all professionals with a long business career. Six of them are independent (50% of the total). The directors currently on the Board have held their positions for an average of 21 years.

The directors have great experience through their extensive participation in different industries, enabling them to understand and manage the main risks and trends related to the company’s businesses for better decision making.

It is important to note that, with the exception of the Chairman who also acts as CEO, the companies where the directors work have no relationship with Grupo Lamosa, thus avoiding any conflicts of interest.

50% of the directors are independent

Board of Directors Status (I or R) Number of years on the Board Audit Committee Corporate Practices Committee
Federico Toussaint Elosúa
Chairman of the Board and Chief Executive Officer of Grupo Lamosa
Related
Chairman
33    
Guillermo Barragán Elosúa
CEO of Hidrobart
Related 29    
Eugenio Clariond Rangel
CEO of Cuprum
Independent 1    
Eduardo Elizondo Barragán
Chairman of the Board and
CEO of CRIOTEC and Subsidiaries
Independent 30   Chairman
Antonio Elosúa González
Co-Chairman of the Board of Directors of U-calli
Related 13    
Bernardo Elosúa Robles
Independent Consultant
Related 29    
Armando Garza Sada
Chairman of the Board of ALFA
Independent 25    
Eduardo Garza T. Fernández
Chairman of the Board of Grupo Frisa Industrias
Independent 10    
Maximino José Michel González
CEO of 3H Capital Corporate Services
Independent 13    
Miguel Eduardo Padilla Silva
Ex-CEO of FEMSA
Independent 18 Chairman  
Javier Saavedra Valdés
Professional Painter
Related 24    
José Manuel Valverde Valdés
Independent Consultant
Related 24    
Stockholders’ Assembly
Board of Directors
Chief Executive Officer
Federico Toussaint Elosúa

Human Resources Vice-President
Germán Alvarado Paredes

Chief Financial Officer
Jorge Antonio Touché Zambrano

Wall and Floor Tiles Vice-President
Sergio Narváez Garza

Adhesives Vice-President
Jorge Aldape Luengas

The Board is supported by the Audit Committee and the Corporate Practices Committee, both mainly comprising independent directors, who perform their duties in accordance with current legal provisions and Grupo Lamosa’s corporate bylaws. Additionally, the Board of Directors has a Finance Committee which it can use for consultation purposes.

  • The Audit Committee reviews the internal control and internal audit system of the company and its subsidiaries, and evaluates the services of the external auditor, the financial information and the applicable accounting policies.
  • The Corporate Practices Committee appoints the company officers and evaluates their performance. It is also responsible for reviewing transactions with related parties.

The Chief Executive Officer conducts the company’s operations, adhering to the strategies, policies and guidelines the Board of Directors establishes, and the guidelines set out in the company bylaws.

The management team is characterized by its experience and commitment, and operates in accordance with the guidelines that the Board of Directors establishes. The Corporate Practices Committee sets the remuneration of the company officers. Their payment comprises a fixed part and a variable part associated with the achievement of previously set objectives related to the company’s financial results and the performance of the particular management area.

The functioning of the corporate governance is closely linked to the company’s Code of Ethics, as well as its culture and values, which have been passed down from generation to generation.

Grupo Lamosa Values: Responsibility, Honesty, Spirit of Service, Teamwork and Continuous Improvement.

The Code of Ethics is the main reference to which employees, management, directors and other stakeholders, such as suppliers and distributors, must adhere. Employees receive training on the Code on their first day at the company, during the induction process, sign a commitment letter (attesting that they have no conflicts of interest) and endorse it every two years. Additionally, training on the Code of Ethics is provided on a regular basis to reinforce compliance.

To ensure that the internal control environment of the company is appropriate and that human rights are respected, Grupo Lamosa’s Transparency Line is available for anyone to present their complaints, either anonymously or with their personal details. During the process of monitoring and analyzing the complaints, the confidentiality of all information is guaranteed for the complaining parties. The analysis and resolution of cases are the responsibility of the Ethics Committee, which is made up of Grupo Lamosa’s CEO, the Corporate Human Resources Vice President, the Chief Financial Officer and the Corporate Internal Audit Manager

Supply chain
The quality of Grupo Lamosa’s products and the continuity of its operations go hand in hand with the suppliers, who are selected in a transparent manner based on quality and innovation, together with growing ESG requirements.

Grupo Lamosa has been developing local suppliers, enabling the company to access materials (clays, pallets, etc.) close to the location of its plants, contributing to driving the economy and employment in the neighboring communities, and reducing greenhouse gas (GHG) emissions from transportation units.

It is important to note the company’s focus on SMEs, through support for development programs such as those offered by “CCMX” (Mexico Competitiveness Center) and the “CC” (Caintra Monterrey’s Competitiveness Center).

Customer focus

Sustainable homes
The availability of sustainable products, such as those with Green Squared certification, in Grupo Lamosa’s brand portfolio makes it easier for customers to certify their facilities (LEED, BREEAM, etc.).

The company’s porcelain products are certified by the Porcelain Tile Certification Agency (PTCA), ensuring that they meet water absorption levels of less than 0.5%.

It is essential that customers know, understand and value the sustainability attributes of Grupo Lamosa products. To this end, the company focuses on direct communication and training and awareness initiatives for the direct sales force and distributor network.

Customer experience
Technology is bringing Grupo Lamosa ever closer to its customers. Such is the case of the app launched in 2020, which uses augmented reality to enable customers to better visualize the company’s products in three dimensions. Progress has also continued with online sales.

Grupo Lamosa maintains its strong commitment to its distribution network, offering training sessions and involving distributors in product launches and conversations with customers.

Additionally, Grupo Lamosa supports the Firenze Entremuros Award, which is now an industry benchmark, encouraging and recognizing creativity and innovation in Mexican architecture and construction, and showcasing the potential of ceramic products in terms of quality and sustainability.

Developing talent

Safety and health
Given the continuing pandemic, in 2021 the company continued to prioritize the health of its employees, applying biosafety protocols and measures across its operations.

Moreover, Grupo Lamosa has implemented safety and health management systems using OSHA control methodology at all its plants. In Mexico, the NOM-035 standard for psychosocial risk factors at work is applied.

Employees are trained on a recurring basis, and awareness campaigns focused on the culture of prevention are implemented throughout the year.

Developing employees
Grupo Lamosa makes both internal and external training available for its employees, offering opportunities for professional development. Moreover, the company’s robust positioning and growth provide security for the workforce.

Throughout the organization, innovation goes hand in hand with the incorporation of diverse talent, with different capabilities and backgrounds.

In the area of conciliation and flexibility, which unite professional and personal development, based on the learning experienced in the context of pandemic, Grupo Lamosa is currently developing hybrid in-person and remote schemes for those positions where the nature of the job functions permits such work arrangements.

Work climate
Grupo Lamosa seeks to operate in an environment where employees feel safe and motivated, and committed to their teams. An annual measurement of the work climate enables the identification of strengths and opportunities for improvement, with the company working to mitigate the latter.

Respect for diversity is essential and Grupo Lamosa actively safeguards non-discrimination. In addition to the Code of Ethics, the company has a specific policy in this regard, which is complemented by awareness initiatives.

Since the acquisition of companies has required the incorporation of new members to the Grupo Lamosa team, the company has worked intensely on the integration process, always taking into consideration the cultural aspects of each particular situation.

Contribution to neighboring communities
Grupo Lamosa is committed to being a good neighbor, and its employees are a key element for the social actions in their own communities. During 2021, the company continued to support initiatives to address the health emergency resulting from the pandemic, as well as to attend to the main needs of the communities around each production center.

Product innovation, quality and safety

Materials and technology
Grupo Lamosa has a broad product portfolio, which allows it to meet different consumer needs and offer sustainability characteristics:

  • Ceramic products have competitive advantages in such areas as durability and recyclability, as well as being a substitute for diverse natural and non-renewable materials. Moreover, the fireproof nature of ceramic and the latest technological developments, such as the incorporation of antifungal components, represent advantages for customers’ health.
  • Various Grupo Lamosa products boast Green Squared certification, recognizing that they have been manufactured in accordance with rigorous sustainability criteria, from the raw material extraction process to product reuse, the latter avoiding the end of the product life.
  • New lines of environmentally-friendly adhesive products are being developed.

Across the operations, the company seeks to take advantage of new technologies, for example by reducing the thickness of ceramic products, which means less energy is used in manufacturing. Regulations are complied with in all cases and stability and durability properties maintained.

Environmental management: circularity and climate action

Climate action: energy and emissions
In all processes, Grupo Lamosa continuously seeks to enhance energy efficiency, using technologies that enable lower process temperatures and shorter cycles. Grupo Lamosa also participates in the Green Matters initiative, with the aim of transforming its manufacturing processes into a low-carbon operating system.

The fuel used in most of Grupo Lamosa’s operations is natural gas, the burning of which emits less GHGs than other alternatives. The company has three cogeneration plants in Mexico, which generate part of the electricity required for production.

Circularity: water and waste
Grupo Lamosa has infrastructure to ensure efficient water use and reuses a significant amount of this vital liquid in the production processes. It has water treatment plants at a number of the production centers.

The company also seeks to avoid the final disposal of waste, recycling it whenever possible. Grupo Lamosa enables selective and differentiated collection at its facilities, using external third parties for reuse and/or recycling.

It should be noted that the company complies with all environmental regulations.