How to read this report
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We are pleased to present KUO's sixth integrated annual report for the fiscal year 2022. The information contained in this report shows the results of Environmental, Social and Corporate Governance (ESG) impact management, in addition to the Company's relevant Financial, Operational and Sustainable results. Throughout the document you will appreciate the commitment to transparency and accountability to all stakeholders on material issues.
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In order to identify what content is referred to, at the beginning of each section, the reader will find the respective codes for the GRI standard (GRI 2-6, for instance) or SASB benchmark. The reader can also refer to the GRI or SASB index at the end of this report.
01
About Kuo
02
Risk Management and Monitoring
03
Sustainability Model
04
Corporate Governance
05
Employee Development
06
Customer Satisfaction
07
Sustainable Processes and Products
08
Operational Efficency and Continuity
Message from the Chairman and Chief Executive Officer
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BRE
KUO
FOCUS
ON EXCELLENCE
Presencia en
+70
países
sobre kuo
Business
Porfolio
The Group's business model has proven to be highly competitive, achieving outstanding results, even in an environment of global challenges.
portafolio de negocios
portafolio de negocios
2022 was a year in which we proved, once again, the competitive advantage of having a conglomerate business model. Despite the episodes of crisis that we experienced around the world, we were able to maintain our focus, adapt to the circumstances and execute efficient solutions to continue serving each of our markets.

Thanks to a combination of perseverance and a focus on operational continuity, we were able to adapt with agility to the challenges presented in the different sectors in which we operate, achieving double-digit sales growth for the year.
Consumer Sector
keken
megamex
herdez
Pork Meat
Branded Foods
We produce, market, and distribute pork in different products: cuts, seasoned meat, frozen food, and live pork. The business is vertically integrated, from genetics, breeding farms, feeding plants, to processing plants and our own distribution channels, which enable us to have complete control of the products quality we offer and generate a higher added value, obtaining high bio-sanitary standards and becoming a global reference in the sector.

Our commercial strategy is divided into domestic, with the Kekén® brand, and additionally, under the Kinitón® brand, we export our products to countries such as Japan, China, United States, and South Korea mainly.

Nationwide, we have a network of more than 450 Maxicarne® stores, where we sell pork, chicken, and beef products. In addition, we have strategically located distribution centers, routes for direct delivery to businesses, self-service sales, wholesalers, food service and packing plants.

All processing plants are TIF (Federal Inspection Type) certified, ensuring that they meet the most rigorous standards of hygiene and sanitation.

In addition, we have HACCP certification, which addresses food safety by identifying, analyzing, and controlling physical, chemical, biological, and radiological hazards. Finally, we have FSSC 22000 certification, which guarantees the implementation of a food safety management system, and ISO 9001-2015 certification, which ensures the highest quality in processes.

 keken.com.mx 
Largest pork meat producer in Mexico
+50
own
farms
2
artificial
insemination centers
+450
Maxicarne stores
+30,000 m2
3
feed mills
· Umán, Yucatán
· KomchÉn, Yucatán
· HunucmÁ, Yucatán
3
plants with installed capacity to process APPROXIMATELY 3 million pigs per year
· Umán, Yucatán
· Sahé, Yucatán
· Irapuato, Guanajuato
Herdez Del Fuerte
In a strategic alliance with Grupo Herdez, we maintain a Joint Venture under Herdez del Fuerte. Through this partnership, we produce and market foods with the highest quality through a portfolio of highly recognized brands in the categories of tomato puree, ketchup, homemade salsas, mole, canned vegetables, among others. This year we innovated in products and presentations for the export market. In addition, in order to respond to new consumer trends, we acquired Libanius, a leading company in categories such as hummus, dry lebnah, pita bread, goat cheese, among others.

MegaMex Foods
Is the product of a joint venture between Herdez del Fuerte and Hormel Foods. We produce and distribute a wide variety of food products mainly in the United States in three main categories: guacamole, salsas, and frozen food. We are the largest guacamole marketer and have achieved an important position for the sauce category in the U.S. market.

 www.herdez.com.mx
 www.megamexfoods.com
Leading brands in different categories
24
distribution centers
22 Mexico
2 United States
10
facilities
2 Sinaloa
2 Coahuila
2 Querétaro
1 San Luis Potosí
1 Oaxaca
1 Guanajuato
1 Texas
Chemical Sector
dynasol
resirene
Polymers
Synthetic Rubber
For over 40 years, Resirene has been producing polymers, used by our customers in different applications, such as packaging and disposable products, electronics, lighting, school supplies, consumer, office equipment, among others. Additionally, we commercialize industrial chemicals and offer comprehensive services through a distribution center. We currently export to more than 20 countries around the world.

Our strategy has constantly evolved, focusing on the development of new, higher value-added applications and on strengthening circular economies.

www.resirene.com.mx
Main polystyrene producer in Mexico
2
facilities with an installed capacity of 200 thousand tons per year
1 facility | Tlaxcala
1 distribution center | Veracruz
Operating in more than 70 countries and with production facilities in the Americas, Asia, and Europe, in a joint venture with Repsol, we are the largest producer of Synthetic Rubber in Mexico and one of the world's leading producers. We maintain a focus on continuous innovation to offer differentiated and more sustainable solutions. Our applications are targeted to several segments such as asphalt modifiers, tires, adhesives, sealants, waterproofing membranes, thermoplastic compounds, among others.

Having facilities on three continents is a competitive advantage that we have taken advantage of thanks to the regionalization trend in the chemical industry.

dynasolgroup.com
Top 10 in global Synthetic Rubber production
6
facilities with installed capacity of more than 520 thousand tons per year
2 Mexico
2 Spain
2 China
Automotive Sector
tremec
dacomsa
sector automotriz
Transmissions
Aftermarket
Tremec is dedicated to the manufacture and assemble of transmissions and components for high performance vehicles, exporting to 17 countries. The company stands out for its continuous innovation and the quality of its products, which are used in a wide variety of platforms, from sports to recreational and agricultural vehicles.
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The strategy is based on the development of innovative products with the best technology, meeting the highest market standards, while maintaining a focus on automation, emissions control, fuel efficiency and torque capacity.
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 www.tremec.com
Focused technology for high performance vehicles
4
facilities with an approximate area of 150,000 sqm
‍2 Mexico
1 Belgium
1 United States
The Aftermarket business serves three main segments, engine, brakes, and powertrain parts. Over the years, we have developed brands that are highly recognized for their quality and durability, seeking to promote marketing and distribution solutions for the automotive aftermarket.

Dacomsa's distribution center, located in Mexico, stores all the products coming from the production facilities to be sold to customers.

 dacomsa.com
Highly recognized
brands
3
facilities with an approximate area of 44,700 sqm
‍2 Guanajuato
1 Mexico City
Partnership Organizations
During our Company's history, we have established numerous partnerships with different organizations in order to continue growing and generating alliances over time.
Consumer
Chemical
Automotive
CONCAMIN
Industrial Chambers Confederation
CNA
National Agricultural Council
CANAINCA
Canned Food Industry National Chamber
CONMEXICO
Consumer Products Industry National Council
CONCANACO
Commerce, Services and Tourism National Chamber
CANACINTRA
Transformation Industry National Chamber
COPARMEX
Mexican Republic Employers' Confederation
CAY
Yucatan Agri-Food Council
CANAINMA
Timber Industry National Chamber
CECC Yucatán T-includes
Yucatan Climate Change Business CoalitionGovernment, Companies, Civil Associations
AMAAC
Asphalts Mexican Association
ACC
American Chemistry Council
ANIPAC
Plastic Industry National Association
ANIQ
Chemical Industry National Association
AI
Asphalt Institute
CNIH
Rubber Industry National Chamber
IRSG
International Rubber Study Group
USTMA
United States Tire Manufacture Association
CIPRES
Suschem Plastics Industry Commission
CANACINTRA
Transformation Industry National Chamber
COPARMEX
Mexican Republic Employers' Confederation
AERI
Industrial Relations Executives Association
CCMX
Mexican Center for Competitiveness
ARRA
Automotive Rectifiers and Rebuilders Association
ARIDRA
Aftermarket and Accessories Importers and Distributors Representatives Association
SEMA
Specialty Equipment Market Association
MEMA
Motor & Equipment Manufacturers Association
SAE
Society of Automotive Engineers
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