ANNUAL REPORT 2019 Report... · Dear Reader: we present the Social Report 2019 of Copag da Amazônia S.A to you. A company with over 100 years, Copag is a pioneer in the manufacture

ANNUAL REPORT2019

ANNUAL REPORT 20192 LETTER TO THE READER

Dear Reader: we present the Social Report 2019 of Copag da Amazônia S.A to you. A company with over 100 years, Copag is a pioneer in the manufacture of playing cards in the Brazilian market and has become one of the largest companies in the world in the decks segment. In this Social Report, you will see how our actions achieved good results in 2019.

We would like to take the opportunity of the disclosure of this edition to inform you that, since the beginning of the Covid-19 pandemic, we have been acting with preventive measures in conjunction with the recommendations of the Ministry of Health, with the purpose of protecting the life, health and safety of our employees, service providers, family members and the society. Moreover, we created an internal committee that is tracking and monitoring all our employees and all actions daily, so that the best prevention practices can be disseminated. Copag believes that together, and adopting prevention measures, we will win this battle.

Use our Social Report to get to know some of the projects and actions that stood out most in 2019 in our balance sheet, as well as their results, plus our positioning and our initiatives in the field of innovation and business. We also dedicate a special chapter to the theme of Diversity. We want to convey to you how we underpin our organizational culture, and how it can bring about changes in society. Lastly, we present the result of everything that took place in 2019, which can be summarized in the engagement of our direct and indirect employees and in the capturing of new synergies to overcome the challenges that arose along our path throughout the year. The Social Report is also available for download. To do so, just click the button.

We have something new in this edition of our Social Report: a video with approximately 6 minutes. Please click here, watch and stay tuned.

ENJOY YOUR READING!

LETTER TO THE READER

https://youtu.be/06LWyFZB0Y0

ANNUAL REPORT 2019 3LETTER TO THE READER

Further information on Copag da Amazônia S.A. can be found on our corporate website at www.copag.com.br and on our social media:

ENJOY YOUR READING!

www. instagram.com/CopagOficial

www.facebook.com/Copag.Oficial

www.linkedin.com/company/678947

www.youtube.com/user/CopagOficial

www.twitter.com/CopagOficial

ANNUAL REPORT 20194 MESSAGE FROM LEADERSHIP

Ana Carolina Gonçalves - CEO

WE HAVE MAJOR CHALLENGES TO OVERCOME IN 2020, BUT I AM CONVINCED THAT WE WILL BE ABLE TO DO SO WITH THE TEAM WE HAVE“ We present to you our Social Report for 2019. To get here, we

tackled major challenges. In 2019, Copag da Amazônia S.A., together with the Cartamundi group, experienced significant changes, which required tremendous efforts from our employees. All this dedication to the business contributed toward excellence in achieving the agreed goals, thus identifying synergies, involvement, and cooperation between people in all aspects.

In mid-February we announced the new structure of the executive team and, shortly thereafter we began to work on the process of integrating Copag into Cartamundi, thus adding new guidelines, a set of benchmarks of what we want to be, and what we will do to get there. Our focus in 2020 is to improve our customer service model, strengthening people’s practices, fostering innovation, leveraging operational excellence, and consolidating their participation in the Cartamundi Group.

We want to be transforming agents in this world; we are aware of the size of our responsibility based on the leadership we exercise on the market in which we operate. Therefore, the challenges related to the environment will be some of our banners; we have already started reducing plastic consumption in the administrative environments of our sites, and we want to make greater strides in this direction in 2020. In the social sphere, we will continue to work with the Copag Volunteer Program and actions aimed at the health and well-being of our employees.

We have in our hands the perfect conditions to move forward in the pursuit of solutions, responding to the wishes of our employees, society at large, and our customers. I feel encouraged and very happy to be part of this very special moment in Copag’s history. We have major challenges to overcome in 2020, but I am convinced that we will be able to do so with the team we have, and that our paths will open up and have a positive impact on Brazil and the world.We are extremely grateful to all Copag employees for constantly building such a beautiful history of success and challenges that have been overcome together.

Sincerely,

MESSAGE FROM LEADERSHIP

ANNUAL REPORT 2019 5ABOUT COPAG

Ana Carolina Gonçalves - CEO

ABOUT COPAG

The headquarters of Copag da Amazônia S/A is located in the Manaus Industrial Zone, at Avenida Solimões, nº 1310. The company also has an Office in São Paulo-SP, located at Avenida Engenheiro Luis Carlos Berrini, nº 1645, 3º e 4º andar.

Copag is engaged in the manufacturing and distribution of playing cards, card games and industrial packaging. Copag is the absolute national leader, and is among the largest companies in its segment in Latin America.The history of the deck in Brazil is the history of COPAG’s trajectory.

FINISH

It is part of our commitment to improve civic awareness of our employees, so that they can feel committed to building a more humane and egalitarian society for all, through participation in events and campaigns designed to serve the most needy.

By doing so, we show that we are a company that seeks economic growth with social responsibility and in a sustainable way.

OUR COMMITMENT

We believe in the happiness generated by magical moments through interaction between people.

OUR PURPOSE

Be an innovative company and world reference in entertainment and fun.

OUR VISION

Provide fun and entertainment to people of all ages through card games, being committed to customer satisfaction and sustainable development.

OUR MISSION

ANNUAL REPORT 20196 COMMITMENT

OURVALUES

Ethics and Respect represent good customs and are formed by a set of positive attitudes that should be applied in the organizational environment so that work relationships are transparent.

ETHICS AND RESPECT

Integrity is working with information that is reliable, proper, and compatible with Copag’s values. Integrity is a conduct that fosters credible relationships.

INTEGRITY

Innovation is the possibility of aligning the market strategy with the business, appropriating ideas and creativity to propose new solutions to the challenges encountered in our daily activity.

INNOVATION

Cooperation is a way of establishing collaborative relationships to achieve common goals. Cooperating can be the ideal way to establish human interactions.

COOPERATION

Entrepreneurship is to be aware that we are “owners of the business,” committed to carry out, do and execute the activity, seeking new ways and new solutions, always keeping in mind the needs of the market and our customers.

ENTREPRENEURSHIP

People who act with excellence in their actions make quality their differentiator.

EXCELLENCE IN QUALITY

We are committed to society and to the environment, this is why we establish ethical concepts with the duties and obligations of individuals and companies toward everyone.

COMMITMENT TO SOCIAL RESPONSIBILITY AND ENVIRONMENTAL PRESERVATION

We believe that our greatest asset is people, and we want to offer a safe environment so that interactions are solid with a healthy climate.

TOTAL SAFETY IN THE WORKPLACE

We started reviewing our values within the new context where Copag is now part of the Cartamundi Group; we will release them in the next publication of the Social Report. We also want to increasingly unite our employees around our essential values.

ANNUAL REPORT 2019 7VALUES

ANNUAL REPORT 20198 ANNUAL REPORT 2019 9

DIVERSITY AND EQUALITY

ANNUAL REPORT 20198 ANNUAL REPORT 2019 9DIVERSITY AND EQUALITY

OUR HAIR-BRAIDING AND CAPOEIRA WORKSHOPS, ON BLACK AWARENESS DAY

DIVERSITYAND EQUALITY

OUR HAIR-BRAIDING AND CAPOEIRA WORKSHOPS, ON BLACK AWARENESS DAY

ANNUAL REPORT 201910 ANNUAL REPORT 2019 11DIVERSITY AND EQUALITY

Concern for people is in Copag’s DNA, since the company believes that results are achieved through satisfied professionals who bring with them the differences resulting from their experiences. To nurture differences and to value equality, Copag implemented the Diversity Program. We believe that an inclusive environment demonstrates the company’s maturity in dealing with the plurality of society, mitigates any possibility of prejudice, and encourages a receptive environment for all people. In 2019, Copag created two diversity committees, which are responsible for defining and deploying Diversity actions throughout the year. Among the actions now in place, we highlight the following: the engagement of our professionals in the Women’s Soccer World Cup, the activities that brought our Afro-descendent professionals closer together, and the Diversity Christmas Tree, to include diverse beliefs and religions during the month of December. This is a path of no return, and the construction of the Diversity culture at Copag will be an endless road.

DECORATING THE “RELIGIOUS DIVERSITY” TREE

APPRECIATING THE ROLE OF WOMEN ON INTERNATIONAL WOMEN’S DAY


OUR PEOPLE

ANNUAL REPORT 201912 ANNUAL REPORT 2019 13OUR PEOPLE

We value a welcoming, engaging and productive climate; we have in-house committees consisting of people from different hierarchies, positions and locations, who act in steering our culture and consolidating the business, through wide-ranging actions as well as reviews of our processes and practices in people management. Our company is made by people who work in the same direction; we have a single goal: to build the same success story.

Copag has been working to develop a unique organizational climate, where professionals can be who they are, and are respected, heard and valued, thus respecting any differences that may arise. It is possible to generate profit while taking care of people. For Copag, this is a daily pursuit to respond to issues relating to corporate climate. See what is being done for this.

A new journey, receiving new colleagues on the team, being invited to take another position within the company, or considering the possibility of no longer being part

of the company are among the variables in any internal reorganization process. So, how does one prepare for such a moment? Copag experienced this throughout the year, but was well-prepared and provided its employees with several meetings to clarify the entire process and strengthen the teams in their personal and professional issues, helping people to envision the opportunities that were coming and the alternatives that would help everyone to experience these changes in a positive way. After all, the stages of transition and integration bring with them a world of learning and growth possibilities. The topics and information developed on a face-to-face basis were presented in a transparent and inspiring way. Celebration of commemorative dates throughout the year, the People and Management department, together with the Marketing department, were dedicated to developing internal marketing actions in order to contribute to the strengthening of our climate of respect and welcoming.

PEOPLEAND CLIMATE


To celebrate life, on the last Friday of each month, we celebrate birthdays with cake and snacks. At Easter, we hand out chocolates to our employees, making the day sweeter.

On International Workers’ Day, we celebrate with live music, gifts, prize drawings, dance contests and recreational activities, valuing the importance of work in our lives.

On Mother’s Day and Father’s Day, we pay special homage by delivering a special gift, recognizing their value and role in society and human life.

On Children’s Day, we celebrate through games and entertaining/educational activities and hand out Copag products, bringing joy and fun to our employees’ children.

And, at the most highly anticipated Year-End Gathering, we celebrate and remember on this day all the results and learning acquired throughout the year.

In addition to internal marketing actions, Copag implemented the Diversity Program, carries out Social Responsibility actions, holds the “Coffee with Employees” event, and honors those who have retired. In this way, we wish will demonstrate through our actions that it is possible to be profitable and productive, with an inclusive and people-respecting model; no matter what the business environment is, the principal value of our company is people.

The evolution of governance Copag, currently accelerating its process of integration with Cartamundi, works on continuous improvement to comply with internal controls, procedures, indicators, and financial reports, thereby ensuring the transparency of business management. Copag has always been committed to high standards of corporate governance. Throughout this year, we prioritized and adopted a series of preparatory measures, namely: the reorganization of its customer service model, its people management practices, and its commitment to the environment.


Safety is one of Copag’s values, that’s why we constantly work through educational actions such as our “Internal Health, Safety and Environment Week” (known by the Portuguese acronym “SIPAMAQ”), which featured special programing and aims to raise awareness among employees regarding accident prevention and encourage them to take care of their health and the environment.

Our Internal Accident Prevention Commission (“CIPA”) works together with Specialized Services in Safety Engineering and Occupational Health (“SESMT”) in favor of a safer work environment, thus eliminating existing risks. We believe that a safe and healthy workplace is a fundamental right of all people. Our safety policies require each employee to take on – along with the Company – the responsibility of maintaining a safe workplace, doing everything possible to minimize risk of accidents and exposure to health risks of all our employees.

OURCOMMITMENTEMPLOYEE SAFETY AND HEALTH

Our workplace accident control indicator below shows our evolution:

Annual comparison of Occupational Accident

20192018201720162344

0000GoalNº of Accidents

2

3

444

2

0

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this so

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to express

company Copag to unite hap

py professionally

Valuation

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joy I love take part Fun

We are pleasant

to be proud of value together

team Power powe

r Pride

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that special

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my Employees

proud We made it

Employees

motivated work everything

cozy

love human Celebrate

diversity dignifies motivated

I do

objectives reasons

days

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become

job

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expectations in this of this

pride It feels limit COPAG

Environment

us staff am parties

organizational in a

art

beautiful Taste

goals Interaction deliver

diversified endeavor between contribute

company tomorrow worth

Moment Gratitude unforgettable BRAZILIAN

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Colleagues

Am Man


Our Safety target is Zero Accidents, every week, our employees attend the Weekly Safety Dialogue (“DSS”), whereby we address various issues related to the Employee Health and Safety. They learn how to develop a keener look at possible risks and assist in the analysis of opportunities for prevention and improvement. The importance given to the issue is such that one of our corporate mottos is “We will do it safely or we won’t do it at all,” ensuring to all employees the prerogative to refuse to perform any task or activity they do not consider 100% safe.

We also assure our commitment to employee safety through our Fire Brigade, which consists of 42 members, trained to act in situations of risk and in general evacuation in the event of fire. In order to prevent injuries and muscle fatigue, and to correct improper posture, we offer our employees activities such as Workplace Exercise; operating with safety remains our main priority and mission within the company.

A commitment to the safety of the teams in all operations is our pact. Once again, 2019 was marked by a reduction in the number of lost-time occurrences, an achievement that has been worked on for the past four years. The result indicates that the company has been moving towards the evolution of the safety culture and a zero-accident rate.The resulting accidents and incidents are analyzed, investigated and documented, in order to prevent recurrence and ensure their effects are minimized. Employee health is one of our banners. We want a Healthy Copag, therefore we reinforce the importance of self-care with our employees. Our medical clinic works with actions and activities geared toward occupational health, through awareness and prevention programs and initiatives, such as: Life Quality Week, Occupational Health Medical Control Program (“PCMSO”), Periodic Exams, Control of Blood Pressure, Body Mass Index (weight/height), Blood Glucose, Balanced Diet, Vaccination Campaigns, Medical appointments once a week; through these actions, we are able to monitor the health of our employees. Other important actions we carry out: Yellow September, Pink October and Blue November, are intensified during the year, strengthening the importance of caring for one’s health.

Conscious eating habits: Copag provides employees with an appropriate and healthy diet in order to provide a state of well-being, improving the lifestyle of our employees; we choose wholesome foods that have a properly balanced nutritional composition, through the assistance of a nutrition professional, making an essential contribution to good health. We believe that good eating habits work as a protective factor if adopted throughout one’s lifetime; good nutrition is synonymous with better health. Eating well: Improves mood and fends off depression and the effects of stress; Gives more energy; Provides immunity against future infections; Prevents various diseases, such as cancer, diabetes, and high blood pressure; Slows aging and improves blood circulation.

With nutritional education, we strive to present our employees with the gains from healthy eating, thus promoting health and food safety.

Safe breastfeeding, in 2019 we inaugurated a new area for female employees who are nursing: a breastfeeding support room, where employees are able to store breast milk in a freezer, which is taken home at the end of the working day. For Copag, knowing that our breastfeeding employees are able to work with greater peace-of-mind gives us a sense of accomplishment and strengthens our inclusive environment.

Stay tuned to this information!

According to a study prepared by Vigitel, 62.4% of the Brazilian population do not practice physical activity on a regular basis (Source: Vigitel).

The World Health Organization (WHO) recommends getting at least 150 minutes of physical exercise a week (Source: OMS); Approximately 30% of the general population over 40 years old may have high blood pressure. For this reason, the Pan-American Health Organization and the World Health Organization (PAHO/WHO) have been working on developing strategies and instruments that facilitate the development of activities for premature detection and ongoing control. (Source: OPAS/OMS).Given this scenario, in 2020 we want to continue improving our practices with the Employee Health, because creativity and productivity can only be achieved and yield good results when we are healthy.


TURN CHALLENGES INTO OPPORTUNITIES!“

Development of people

Development, enhancement and performance evaluation are some of the practices that we carry out. We believe that it is possible to invest in our talents and in development programs even under unfavorable macroeconomic conditions.

We want to demonstrate that we act in a clear and transparent way so that each employee can steer their career according to their professional targets and goals with the guidance of their manager and the support of their peers. To overcome our organizational challenges, we count on the commitment of professionals with wide-ranging profiles. We value our employees, with salaries and benefits compatible with the market, plus opportunities for career progression, training and courses for continuing education. People are encouraged to think creatively and express their opinions and suggestions, regardless of hierarchical levels. Accordingly, we optimize processes and day-to-day work routines, encouraging employees to take responsibility for the improvements that can be made in their activities and for their professional development.


Our People Development Program makes investments for employees to evolve and improve their skills. Under the concept of Copag University, our employees are inserted in the following Schools: Leaders, CSW (Copag Smart Way), Behavioral and Technical. For 2020, we are changing the name from ‘school’ to ‘academy.’ Through the modules, we will bring new streamlined practices and methodologies with a focus on business and results. We believe that constant development occurs through acquired knowledge, everyday experiences, and the employee’s own initiative.

With this ongoing improvement in mind, one of our company practices is Performance Management by Competence, our performance evaluation program whereby all the results of the evaluations are submitted to a committee that discusses the development of our professionals. Based on the results of the performance evaluation and identification of gaps, each employee and respective manager prepare the Individual

Development Plan (IDP), with the objective of developing and improving behavioral and technical skills.The new generation of talents. The hiring and training of young people is an extremely important matter for Copag, which, through this program, develops the future successors of the Company. At Copag, we seek to inspire young people aged 16 to 24, through training and professional development, creating references that broaden their views and emphasizing the importance of preparing for the future. Furthermore, it promotes conditions for the development of socio-emotional skills, through a methodology that promotes “learning by doing,” taking one lead roles, good communication, autonomy and critical thinking, all fundamental attitudes for young people. Thus, the program provides these young adults with opportunities to reach their dreams, encouraging them to see the pathway to their development. By putting into practice the knowledge they have acquired, they collaborate with society and strengthen their skills in the working world.


SOCIAL RESPONSIBILITY

ANNUAL REPORT 201918 ANNUAL REPORT 2019 19SOCIAL RESPONSIBILITY

Copag has voluntarily committed to conducting its business in accordance with high ethical and business standards, being in accordance with the main requirements and international standards, and encouraging its partners and suppliers to behave the same way.

Copag is intensely concerned with the quality of working conditions and maintains continuous efforts to improve these conditions, and also clearly shows all stakeholders its total commitment to these principles, being certified in the SA8000: 2014 Social Responsibility standard.

SA8000:2014 Social Responsibility. What is it?This is an international standard for assessing Social Responsibility for suppliers and vendors, based on conventions of the International Labor Organization (ILO) and other United Nations (UN) conventions.

SOCIALRESPONSIBILITY


Here are some of the items contained in the standard and our actions:

Copag does not support the use of child labor. The People and Management department controls the compliance of our practices with labor laws, through the monitoring of apprenticeship contracts, documentation of hired employees, working hours, rest periods, vacation time, among others. In this control, we are evaluated by the Integrated Management System and by the certifier as to whether we are in compliance with labor legislation and SA8000 standards, and the points that can be improved or can be treated in a safer manner and more aligned with our principles and values.

CHILD LABOR

Copag does not use or support forced or compulsory labor. All work, including working-time accounts and overtime, is in compliance with applicable laws, collective bargaining agreements (where applicable) and industry standards on working hours, days off, and public holidays. Moreover, all of our vendors and service providers must comply with the legal labor practices and the SA8000 standard. We monitor and track them through audits, in order to assess and mitigate possible risks and non-compliance with regard to Copag’s procedures.

FORCED OR COMPULSORY LABOR AND WORKING HOURS

Copag provides a safe and healthy work environment to prevent accidents and potential harm to workers’ health; 100% of our employees are represented on formal health and safety committees, with the aim of ensuring the safety and well-being of our greatest asset: “People.”

HEALTH AND SAFETY

Copag respects and informs the rights of all its employees. With no objection whatsoever, freedom to form or join labor unions is among the priorities of our actions, as it has the institutional mission of strengthening unions and curbing acts that undermine the satisfactory exercise of such freedom. The violation of this right compromises not only the workers, but society as a whole.

FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE NEGOTIATION

Copag does not support discrimination in hiring, pay, access to training, promotions, termination of employment, or retirement based on race, nationality, social class, religion, disability, gender, sexual orientation, family responsibilities, marital status, union affiliation, political opinion, age, or any other condition that could give rise to discrimination. We have specific frameworks internally to assist in identifying processes and ensuring compliance with our guidelines, values, Code of Conduct, internal policies, and procedures. In this scenario, it is possible to list what we have: Representing employees - RE, SA8000 Box, Ombudsman’s toll-free hotline, SPT (Social Performance Team) committee, are our channels for complaints and suggestions.

ITEMIZATION

Copag seeks to treat everyone with dignity and respect; we do not support the use of corporal punishment, mental or physical coercion, or verbal abuse. The responsibility to follow Copag’s principles and values is indispensable for all employees at all levels of activity and responsibility. We work through guidance in our New Employee Integration, in our Weekly Health and Safety Dialogue, and in the Leaders School, among other means in an integral and transparent way. In the event of behavioral deviations, the complaints channel is a secure and available means of contacting us. The channel guarantees the whistleblower’s anonymity and reports to the SPT Committee.

DISCIPLINARY PRACTICES


Copag respects the rights of its employees, and ensures that salaries and wages are properly paid, thus meeting the minimum legal standards and fulfilling the collective bargaining agreement. With the intent of Developing people, we carry out Performance Management, encompassing all our employees in operational, tactical and strategic positions. Once a year, everyone goes through the process we call Performance Management, a time when the level of delivery – and the way in which these deliveries have been made – are evaluated. Initially, each employee performs a self-evaluation, then the manager assesses the employees through their self-evaluation. Within this system, we hold evaluation calibration committees – only for tactical and strategic positions – which is composed of employees in the position of Analysts and Leadership, in order to calibrate the information and listen to different perceptions. Afterwards, the Development Dialogue session takes place, where the manager and employee jointly build the individual development plan (IDP) and the final consensus of Performance Management. Currently, we work with our Leaders to raise awareness in order for several Development Dialogues to take place throughout the year, making them more consistent and assertive with the development of our employees.

COMPENSATION

Our goal is to continuously improve the effectiveness of the integrated management system, which includes compliance with the requirements established in the standards and certifications we have. Accordingly, we hold our critical analysis meeting on an annual basis, covering issues that contribute to the evolution of the system.

MANAGEMENT SYSTEM

We have a Social Performance Team (SPT) to implement and act as the guardians of all elements of SA8000. EDS is formed of a balanced team of Executive Board’s and workers’ representatives and its also responsible for conducting periodic risk assessments to identify and prioritize areas of actual or potential nonconformities.

SPT SOCIAL PERFORMANCE TEAM

Volunteering Program

Being a volunteer means turning your vision toward all people and the world in which you live. At Copag, volunteering has been a vibrant part of our culture; inspiring and transforming are the essence of our activity. For this reason, showing its commitment to making positive and long-lasting changes in the world, the company supports the Volunteer Program, which encourages employees and partners to participate, through initiatives primarily aimed at education, sports, and health. In 2019, the program mobilized 86 volunteers and benefited eight institutions that currently work with children, youths, senior citizens, and people undergoing treatment.

Volunteering seeks to create opportunities for all employees to share their talents and exercise good citizenship. Through projects and social actions, it is our expectation that the program will strengthen our employees’ values and principles, thereby contributing and strengthening our organizational culture.

SOCIAL RESPONSIBILITY


Here are the institutions we supported throughout 2019

26 senior citizens currently live at the São Vicente de Paulo Nursing Home, located in the São Raimundo neighborhood of Manaus-AM. This is a home whose mission is to provide the elderly with the opportunity to socialize and receive support, caring for their health, diet and well-being.

SÃO VICENTE DE PAULO NURSING HOME

The “Alvorada of Tomorrow” Project, which works with sporting activities, includes 283 children and adolescents from the Alvorada neighborhood in Manaus, aiming to contribute to physical, psychological and social inclusion, in a healthy and guided manner, and with the assistance of a coach.

UNIDOS DA ALVORADA FUTSAL SCHOOL

Currently, the institution serves 320 children aged 2 to 5 years, in the Centro (Downtown) neighborhood in Manaus. Students stay at the institution from 7 a.m. to 5 p.m. while their parents work. There, they have all meals and participate in primary education classes.

CASADA CRIANÇA

This is an institution to support children with serious illnesses, located in the Pinheiros neighborhood in the city of São Paulo-SP, with branches in Campinas-SP and Rio de Janeiro-RJ, with the primary mission of inspiring hope and transforming lives. The institution seeks to find people who want to turn these children’s dreams into reality, thus giving hope, strength and joy to their dreams.

MAKE-A-WISH BRASIL

This is a philanthropic institution dedicated to the study and treatment of cancer in Brazil, serving 100% patients through Brazil’s national public health service (SUS), located in the República neighborhood in São Paulo-SP. The Institute seeks to guarantee excellence and provide humanized care to its patients.

DR. ARNALDO CANCER INSTITUTE

This is a support center for children, adults and seniors, located in the Pirajussara neighborhood of São Paulo, which receives SUS patients and their companion during the treatment period. The Institution’s goal is to serve people who cannot afford to rent a home to stay for the duration of the treatment.

CÂNDIDA BERMEJO CAMARGO CENTER OF SUPPORT FOR NEEDY CHILDREN WITH CANCER

Located in the city of São Paulo, the three units of the São Camilo Hospital Network currently have more than 750 beds in all, with a professional staff of around 5,000 employees (among the administrative and patient care areas) and approximately 3,800 registered physicians. The funds from the services provided by these three units make it possible to subsidize the activities of the 33 hospitals administered by Sociedade Beneficente São Camilo, and which offer public healthcare.

SÃO CAMILO HOSPITAL AND MATERNITY WARD

Located in the Jardim Brasilia neighborhood of São Paulo, its primary mission is to receive seniors and offer them proper care for their health and well-being.

CASA MADRE TEODORA ASSOCIATION FOR THE ELDERLY


COMMITMENT TO THE ENVIRONMENT

ANNUAL REPORT 201924 ANNUAL REPORT 2019 25COMMITMENT TO THE ENVIRONMENT

In 2019, copag kept its commitment to environmental management by supporting environmental projects and engaging its employees to participate actively in environmental practices.

Strategic objectives and socio-environmental conduct are part of COPAG’s integrated management system policy, and are part of the company’s strategic planning, thus guiding resources and personnel to act effectively in the management of environmental projects and practices.

Adopt a Cup

With the aim of reducing the use of plastic in its processes, in 2019 Copag started the “Adopt a Cup” program, which promoted the environmental awareness of our employees and reduced the use of disposable plastic cups. Our professionals began using reusable ceramic coffee cups and drinking glasses. With this change in attitude of employees, Copag ceased generating 255,000 waste items per year.

COMMITMENTTO THE ENVIRONMENT

Our average monthly consumption before the change

Our average monthly consumption after the change

% Reduction in monthly consumption

Quantity of Disposable Cups we ceased consuming each year

43,750

22,500

51.43%

255,000

Organic Vegetable Garden

Environmental education is good for one’s health and for one’s mind. With this focus, Copag started the first organic garden in 2019 with the participation of its employees in Manaus.

With the vegetable garden, employees have access to fresh organic produce, in addition to beautifying the company’s surroundings and by extension, employees are involved in the care and maintenance of the garden, giving an example of a sustainable commitment.

Good environmental practices

There are countless benefits of selective trash collection, such as the recycling of materials that would otherwise be thrown away and reduction of garbage in landfills, thus reducing waste through better reuse of discarded materials. Based on these advantages, in 2019 the employees of the São Paulo office started the program of selective collection by type of garbage, engaging in a practice that contributes to better sustainability and environmental awareness.


Reverse Logistics of Packaging Materials

Since 2017, Copag has been complying with the Environmental Legislation, which ensures the proper treatment of discarded packaging of its products through post-consumption compensation, proven through recycling certificates.

In 2018 alone, seven tons of plastic and 18 tons of paper and cardboard were compensated for products sold in just in São Paulo, and in 2019 Copag expanded this program nationwide, thereby ensuring a significant amount of materials with the proper destination. In addition to the undeniable environmental value, the Reverse Logistics Program has a social impact, since the packaging compensation occurs through recycling cooperatives, thus contributing to an increase in the cooperative’s income by up to 15% (Source: Eureciclo - Copag’s partner in the Program).

Correct disposal of cooking oil

The vast majority of people know that cooking oil (also known as vegetable oil) is recyclable, but there are still many doubts about how to dispose of it, whether or not we can pour it down drains, what to do with used oil, or even how to store it.

Copag, in partnership with a recycling company, started a program in 2019 that – in addition to guiding and making employees aware of the proper disposal and final destination of cooking oil – also provided a collection points where each employee can voluntarily bring the used oils to be disposed of, available on the company’s premises, and thus be reused in a sustainable manner in the production of biodiesel, soap, oil-based paint, and other products.

These actions ensure better control of the raw material for these processes, in addition to encouraging recycling and preventing more liters of oil from being disposed of improperly.

Waste Recycling - 2019


ENERGYCONSUMPTION 2019

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

TOTAL

AVERAGE

MONTH

30

30

30

30

30

30

30

30

30

30

30

30

30

30

LIMIT IN KW/H

25,49

24,67

27,66

24,60

37,25

27,40

31,07

34,50

23,67

22,35

28,53

22,64

329,83

27,49

KWH / GROSA KWH/GROSS

11974

12259

11136

13661

8945

11188

10230

10144

13070

15721

12170

12739

143237

11936,42

GROSS MONTHLY PRODUCTION

305.200

302.400

308.000

336.000

333.200

306.600

317.800

350.000

309.400

351.400

347.200

288.400

3855600

321300

MONTHLY CONSUMPTION IN KW


WATERCONSUMPTION 2019

50

100

150

200

250

300

350

0

400

23,392 9,07 24,522 7,03 25,652 4,33 29,972 9,94 33,472 6,10 35,373 2,97

341,7042243

0,060547854

0,066400196

0,059366079

0,068247126

0,088876467

0,065249064

0,090811339

0,076824202

0,051466094

0,091189683

0,080230691

0,087189095

CONSUMO MÉDIO DIÁRIO / PRODUÇÃO MÉDIA DIÁRIA (M3/GROSAS)CONSUMO MÉDIO DIA/DAY AVERAGE COMSUPTION (M)

Source: Control of water consumption

ANNUAL AVERAGE

JANM AY JULMARS EP NOV

MONTH

23,39

29,07

24,52

27,03

25,65

24,33

29,97

29,84

33,47

26,10

35,37

32,97

342

AVERAGE DAILY CONSUMPTION (M)

386,26

437,82

359,23

455,37

288,55

372,93

330,00

327,23

435,67

507,13

405,67

411

4717

AVERAGE DAILY PRODUCTION (GROSS)

0,06

0,07

0,07

0,06

0,09

0,07

0,09

0,09

0,08

0,05

0,09

0,08

0,89

DAILY AVERAGE PRODUCTION (M3/GROSS)

28,48 393 0,07

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

TOTAL

AVERAGE


INNOVATION TOWARD DEVELOPMENT

ANNUAL REPORT 201928 ANNUAL REPORT 2019 29INNOVATION TOWARD DEVELOPMENT

The “Ideas Program” began in 2014 with the aim of encouraging, recognizing and rewarding employees for their ideas and improvements, where they actively participate in projects aimed at innovation. However, this was only the start of this long and beautiful journey, making the culture of Innovation at Copag stronger and stronger!

In 2014 - Start of the Ideas Program

The program has been improving over the years, and in 2019 the format was expanded, i.e., the program now has the participation of A3 – a tool based on PDCA that seeks to analyze and propose solutions to problems. Thus, A3 was combined with the Ideas Program (“PDI”), whereby there was greater participation of employees in Manaus and São Paulo.

INNOVATION TOWARD DEVELOPMENT

This cycle had three different categories, one with a predefined theme and the other two with possibilities in any area of the company, with all themes to be solved individually or in groups, and may involve employees from Manaus and São Paulo. And so, the winners of each category of the 6th edition of the Ideas Program are:

Category 01 Simple General and Implementable

Category 2Presentation through Project structure;Suggestion: A3 Form or PPT Presentation.

Category 03Projetos Referentes a Perdas no Processo (Produção ou Administrativo) e/ou Aumento de Produtividade (Produção ou Administração).

Four criteria were evaluated: Clarity and organization of delivery/Creativity and Innovation/Financial Viability/Technical Viability. The scores were given on a scale of 1 to 10, with 1 being the weakest and 10 being the strongest. The evaluation committee is composed of the members of the Ideas + A3 Program and also technical members.


Here are the names of the winners of the 2019 edition

Category 1: aimed to encourage and stimulate small implementable ideas with qualitative return; thus, all employees who contributed ideas related to this category received a gift for participation in the Ideas Program.

Category 2 - Winners:

1º2º3º Category 3 - Winners: Game Box

1st placeCombis - Increase in productivity (Rontech)

Francimar SilvaMAINTENANCE

2nd place CalenderRetrofit Project

Guilherme Guimarães MAINTENANCE

3rd place Improvement in Workplace Ergonomics

Dulce Gonçalves GREEN LINE

Ester BritoGREEN LINE

Railson Cativo GREEN LINE

Thales Carim GREEN LINE


Copag started implementing Lean Manufacturing in 2013 as a business philosophy, always focusing on the customer and aimed at excellence in our operations,

In 2019, having matured this concept, the company decided to expand this cultural transformation aimed at ongoing improvement for administrative processes as well. Starting the journey of implementing the Lean Office.

First Lean Training at the São Paulo Offices

Training sessions were carried out to disseminate knowledge with the aim of engaging all employees in applying problem-solving and continuous improvement tools, consequently achieving operational excellence for all activities performed within the company. In all, 12 training sessions on Lean Office and Tools for continuous improvement were carried out at all hierarchical levels of the company. The consequence of this initiative was the involvement of many employees in projects

to improve their activities, from minor improvements to major projects that changed the entire working method in their sectors.

Check out our CSW Logo

ANNUAL REPORT 201932 ANNUAL REPORT 2019 33ANNUAL REPORT 201932 ANNUAL REPORT 2019 33INNOVATION TOWARD DEVELOPMENT

Always focused on meeting customer needs, reducing delivery time of orders, improving budgets, invoicing, and quality assurance through excellence in our internal processes, 36 improvement projects were carried out in all, with multidisciplinary teams that also promote the engagement and development of our employees – actions that directly reflect on employees’ quality of life. Ingeniously managing to associate “limitless fun” with significant results.

First Kaizen Event of 2019 Improvement in the Billing Process

CSW Week – Copag Smart Way

In its fourth consecutive year, the CSW Week is held with the aim of immersing employees in Lean concepts and mindsets, through lectures, training, workshops and group dynamics, with illustrious participation from the company’s top management. First CSW Week at the São Paulo office

CSW week at the factory, featuring the theme: Operational excellence journey

Our projects in the A3 methodology

In 2019, the Ideas Program was unified with the A3 Projects. Previously, suggestions for improvements coming from production were treated in separate ways by the programs, whereby the employee decided whether such suggestions would be addressed in A3 or whether they would sign up for the Ideas Program to vie for prizes. Today, all ideas from the production process are automatically inserted into the Ideas Program, even if they are processed with the A3 tool. Thus, we were able to expand our work method, involving a greater number of Copag employees, so that further improvements can be made in its production and administrative processes.

At our Manaus factory, operational excellence is our business philosophy and daily work culture, always maintaining quality, productivity and safety as mainstays of organizational development.

Some of the highlights of the year, at the initiative of our employees, were:

Reduction of Losses and Standardization in the Control of Critical Variables in Offset Printing; Change in the 1001 Cartridge Process; Reduction of Breakdowns due to Charring in the Nordson Glue Melters; Mirus Production Reduction of Breaks - Card Diverter; Increase in Quality and Productivity through Sheet Guides – Calender Change in the Game Cartridge Line (UNO); Black Light Printing - Invisible Ink Inspection; Maximization of Productivity by Employees Taking Turns at Meal Times; Reduction of Defects and Machine Downtime by Installing a Convex Mirror on Combi Cutting Machines 1, 2 and 3; Reduction of Risk of Accidents and Environmental Management.

At the São Paulo office, we had several initiatives of Kaizen Events, whereby a group of people stopped to analyze their processes and propose improvements within a week. In all, four events were held, including: Billing Process, New Product Budget, Collections, and New Product Developments.

ANNUAL REPORT 201932 ANNUAL REPORT 2019 33ANNUAL REPORT 201932 ANNUAL REPORT 2019 33

RELATIONSHIPS WITH CLIENTS AND SUPPLIERS

ANNUAL REPORT 201934 ANNUAL REPORT 2019 35RELATIONSHIPS WITH CLIENTS AND SUPPLIERS

ICE Totally Gaming 2019

Copag participated at ICE Totally Gaming 2019 in London, the world’s largest fair in the gaming, betting and lottery sector. ICE London 2019, which took place February 5–7, 2019, received gaming industry professionals at ExCeL London, and presented 612 exhibitor brands from 66 countries, a new record compared to the 2018 edition, which had 589 exhibitor brands from 65 nations. The ICE London exhibition venue now occupies 38 of the 44 halls at ExCeL London (compared to 36 in 2018).

RELATIONSHIPS WITH CLIENTS AND SUPPLIERS

INTERNATIONAL FAIR


ABRIN - 37th Edition

Copag was present at the 37th edition of the ABRIN fair, held at Expo Center Norte in São Paulo, taking our main products launches for the year, which were: Pokémon Sun and Moon collection - Union of Allies, Pikachu Detective, How to train your Dragon, Pets 2 Uno, Box of Activities and Stealing Bundles Toy Story 4, Justice League - Snap, Harry Potter - Horcruxes Challenge.

This fair is 3rd bigger and most important fair of the world in the segment of children’s games and toys for Copag, since we have the opportunity to show the news of the year.

NATIONAL FAIRS

APAS

Recognized worldwide as the largest supermarket event today, the APAS Show gathers the entire supermarket chain in Brazil and abroad in a totally targeted event, with exhibitors from various countries. With over 800 exhibitors, of which 204 are international companies from 22 different countries, such as: United States, Peru, Colombia and Uruguay, the APAS fair is the largest supermarket trade fair today.

We took our main launchings of decks, which were: Lata Rei do Baralho and UNIQUE present the theme of “110 years”, we celebrate the 110-year-anniversary of Copag and offering a space themed as Las Vegas, where we put a Poker table, allowing quick poker games with visitors and enchanting everyone who passed by the booth.

Brazil Promotion

Once again, COPAG was present at Brazil Promotion 2019 - 17th Edition, which was held at Expo Transamérica. This fair is a benchmark in the Promotional Marketing sector throughout Latin America, bringing together more than 200 exhibitors and receiving more than 12,500 visitors this year.

Copag took its entire line of personalized products and the latest developments, always aiming to maintain a good relationship, build customer loyalty, and open up a wide range of opportunities for prospecting new customers.

POKÉMONRegionals

During the 2019 Pokémon season, which runs from August to August, three regional tournaments were held in order to increase the number of competitive players in Brazil.

The regionals were held in three different regions of Brazil, namely: Northeast (Fortaleza-CE) with 293 players; Southeast (São Paulo-SP) with 602 players; and South (Balneário Camboriú-SC), with 309 players.

International

In 2019, Copag held the 4th Latin America International Pokémon Championship in Brazil. The Event took place November 15–17, 2019 at the Pro Magno venue in São Paulo. In all, 1,066 players took part in this tournament, making it the largest tournament in Latin America. For the first time ever, we sold visitor credentials for a Pokémon tournament, and had over 1,000 spectators at this event.

We implemented a new area at this tournament, called “First Step.” This is an area already used in the regional and worldwide tournaments organized by the Pokémon Company, which aims to train new players, in an environment where they have the opportunity to learn how to play and set up their own card deck. A total of 438 people passed through this area.

MARKETINGPlaying Card TournamentsSenior Citizens

According to the theme of our actions in 2019, where the focus was on people over the age of 60, Gin Rummy and Canasta tournaments were held. The actions took place in June and July, in different regions of the states of São Paulo and Salvador.

In São Paulo, the tournaments were held at Clubs, Senior Associations, and Rest Homes, with a total of 150 participants. In Salvador, the tournaments also took place at Clubs and Associations, but also at cultural centers (SESCs), with the attendance of 90 people.


Deck Day

In 2019 Copag, carried out the “Meeting of Generations” campaign, promoting gatherings of people over 18 and over 60 years old. We held Gin Rummy Tournaments in the cities of São Paulo and Salvador.

The event had more than 60 pairs. Through this action, Copag offered fun times with family and friends, making this moment a meeting of generations, revving tradition and conservatism through the energy of both age groups.

The winners were offered a R$ 3,000 cash prize.

Action on the Beach

Summer came and Copag could not be left out. Aiming to interact with its customers and disseminate its brand, Copag was present at Guarujá Beach (coast of São Paulo) on weekends in December 2019 and January 2020. It was a sure-fire success; we had four popsicle carts, eight sales promoters, and lots of energy to take our products to one of the busiest beaches on the São Paulo coast.

Action at Toll Booths

Nothing like Summer Vacation to renew your energy. This year, Copag wanted to be part of all stages of the vacation. We carried out an Action at the São Paulo Toll Booths (on the Dutra and Fernão Dias expressways), where a folder with Copag’s “Tips for the Summer” and playing-card key rings were handed out. We reached more than 10,000 people, helping the Brand to remind customers that Fun begins with Copag.


RELEASE OF PRODUCTS

ANNUAL REPORT 201938 ANNUAL REPORT 2019 39LANÇAMENTO DE PRODUTOS

Decks

Games

Collectibles

JAN 19 FEV 19M AR 19 ABR 19 MAI 19J UN 19 JUL 19 AGO 19 SET 19 OUT 19 NOV 19 DEZ 19

SUPER COPAG- Tuning

- Dinossauros- Motos Incríveis

ALADDIN- Jogo do Mico

Toy Story 4- Rouba Monte

- Box de Atividades

Rei Leão- Monta Quadros

PETS2- Jogo do Farejador

BABY SHARK- Box de Atividades

GOB SMAX- Blister Unitário

LUCCAS NETO- Box de Atividades

TOY STORY 4- Corrida Mágica

FROZEN 2- Corrida Mágica

COLOR ADDICT

GOB SMAX- Caminhão Devorador

FROZEN 2- Box de Atividades


NovoCARTUCHO 139

NovaEMBALAGEM

TEXAS HOLD’EM

Lata139 Rei do Baralho

PinguimMake a Wish

Ação139 Dia do Baralho


BOX- Borrifada Gigantesca

- Vaporeon, Jolteon, Flareon

BLISTER- Dossiê Pikachu

LEGO

COLEÇÃO- União de Aliados

BOX- Dossiê Charizard- Dossiê Mewtwo

COLEÇÃO- Elos Inquebráveis

LATAS- Aliados-GX- Pokébola 2

BOX- Melmetal-GX

- Marowak-GX de Alola

BOX- Kanghaskan-GX

COLEÇÃO- Sintonia Mental

MINI-LATAS- Amigos de Kanto

BOX- Charizard Reshiram

- Blastoise-GX

BLISTER TRIPLO- Destinos Ocultos

BOX- Porygon-Z

- Poderes Supremos-Destinos Ocultos-Decks Let’s Play COLEÇÃO

- Eclipse Cósmico

LATAS- Parceria Poderosa- Destinos Ocultos

BOX- Lua Pálida

- Geração de Aliados- Arena de Batalha Rayquaza vs Ultra

Necrozma

LATAS- Pokébola 3

Collections

Boxes

Detective Pikachu

Metal Tins

Blisters

Lego

ANNUAL REPORT 201938 ANNUAL REPORT 2019 39LANÇAMENTO DE PRODUTOS


AUDIT RESULTS

AUDITRESULTS

ISO 9001 - Quality Management ISO 14001 - Environmental Management SA8000 - Social Responsibility or products FSC - Forest Stewardship Council.

Our certifications

Throughout 2019, Copag underwent four external audits to evidence the organization’s compliance with the requirements of the Standards for the Quality Management System (ISO 9001: 2015), Environmental (ISO 14001: 2015) and Social Responsibility (SA8000: 2014).

The Audits

During the audits, three non-compliances were found, which were addressed according to the internal procedure. The Integrated Management System is implemented and maintained at the organization. Our indicators of non-compliance controls, shown below, show our evolution:

Non-compliance obtained

ANNUAL REPORT 201940 ANNUAL REPORT 2019 41AUDIT RESULTS

Results of negotiations with the customer

GENERALINFORMATION

Distribution of job positions by gender

2016

2017

2018

2019

215

377

338

252

CUSTOMER COMPLAINT

0

0

0

0

PROCON

0

0

0

0

COURT

2

3

2

2

INMETRO

COMPLAINTS RECEIVED

2016

2017

2018

2019

79%

97%

99%

96%

CUSTOMER COMPLAINT

0

0

0

0

COURT

0

0

0

0

JUSTIÇA

100%

100%

100%

100%

INMETRO

% COMPLAINTS RESOLVED

41%

59%



GENERATION

ETHNICITY

28%

68%

3%

1%

Distribuition of job positions by Ethnicity

CRÉDITOS

CREDITSTEAMS

People and Management Department Marketing DepartmentExOp&IP DepartmentCreation Department

ANNUAL REPORT 201944 ANNUAL REPORT 2019 45CREDITS


Documents

ANNUAL REPORT 2019 Report... · Dear Reader: we present the Social Report 2019 of Copag da Amazônia S.A to you. A company with over 100 years, Copag is a pioneer in the manufacture