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FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

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Table of Contents<br />

The Chairman of the Audit and Corporate Practices Committee shall prepare an annual report to our Board of Directors with respect to the findings of the Audit and<br />

Corporate Practices Committee, which shall inclu<strong>de</strong> among others: (i) the status of the internal controls and internal audits and any <strong>de</strong>viations and <strong>de</strong>ficiencies thereof, taking into<br />

consi<strong>de</strong>ration the reports of external auditors and in<strong>de</strong>pen<strong>de</strong>nt experts; (ii) the results of any preventive and corrective measures taken based on results of investigations in respect of<br />

non-compliance of operating and accounting policies; (iii) the evaluation of external auditors; (iv) the main results from the review of our financial statements and those of our<br />

subsidiaries; (v) the <strong>de</strong>scription and effects of changes to accounting policies; (vi) the measures adopted as a result of recommendations and observations of stockhol<strong>de</strong>rs, directors,<br />

executive officers and third parties relating to accounting, internal controls, and internal or external audits; (vii) compliance with stockhol<strong>de</strong>rs’ and directors’ resolutions; (viii)<br />

observations with respect to relevant directors and officers; (ix) the transactions entered into with related parties; and (x) the remunerations paid to directors and officers.<br />

Employees<br />

<strong>20</strong>09 <strong>20</strong>10 % Change <strong>20</strong>11 % Change<br />

Total Employees 8,454 <strong>20</strong>,579 143.4% 19,702 -4.3%<br />

Total No. Employees in Mexico 7,257 14,069 93.9% 13,251 -5.8%<br />

Total No. Employees in Brazil 1,197 1,545 29.1% 1,401 -9.3%<br />

Total No. Employees Chile - 3,619 NA 3,402 -6.0%<br />

Total No. Employees in Peru - 1,346 NA 1,648 22.4%<br />

As of December 31, <strong>20</strong>10, we had 19,702 employees. In Mexico we had 13,251 employees, 5,689 of which are part of the distribution business and 7,562 are part of the<br />

retail pharmacy business. On the distribution si<strong>de</strong>, 2,452 are sales representatives for our Pharmaceutical and HBCG/Other Products businesses and other divisions, 929 are<br />

administrative employees and 2,308 are operational employees. On the retail pharmacy si<strong>de</strong>, 302 are administrative employees, 355 are operational employees and 6,905 are in sales. In<br />

Brazil we had a total of 1,401 employees of which 104 were administrative employees, 153 were operational employees and 1,144 were in sales. In Chile, we had 3,402 employees at the<br />

end of fiscal year <strong>20</strong>11. Of these, 230 carried out administrative functions, 3,1<strong>20</strong> held sales positions and 52 were on the operational si<strong>de</strong>.<br />

A significant majority of our employees in Mexico, 83.6% as of December <strong>20</strong>09, 72.0% as of December <strong>20</strong>10 and 75.5% as of December 31, <strong>20</strong>11, were represented by<br />

unions. Almost all of our employees in Brazil, 99.9% as of December 31, <strong>20</strong>10 and 99.9% as of December 31, <strong>20</strong>11, were unionized. In Chile 28.4% of our employees were representd by<br />

union as of December 31, <strong>20</strong>10 and 27.0% were represented by unions at the end of <strong>20</strong>11.<br />

We believe that our relations with our employees and the unions with which they are affiliated are good. In <strong>20</strong>11, the total number of employees <strong>de</strong>clined by 4.3%<br />

compared to <strong>20</strong>10, primarily as a result of programs aimed at improving our operating efficiency and controlling costs and expenses.<br />

Share Ownership of Directors and Officers<br />

Share ownership of our directors and executive officers is set forth in the table un<strong>de</strong>r the caption “Item 7. Major Sharehol<strong>de</strong>rs and Related Party<br />

Transactions”. Except as set forth in the table, none of our directors or executive officers is the beneficial owner of more than 1% of any class of our capital stock or options<br />

representing the right to purchase more than 1% of any class of our capital stock.<br />

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