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Sustainability

Learn about our sustainability practices

With a history of achievements, we publish our annual 2020
Sustainability report, based on topics considered most relevant
to our stakeholders. We demonstrate the company’s progress with
sustainability practices to build together with our value chain a more
democratic digitized and sustainable society. In addition to presenting
how we solidified our Sustainability Strategy and focused on structuring
the area and the Diversity Strategy.

Linx annual sustainability report (2020) ou Linx annual sustainability report (2019)

Our sustainability report

For the second consecutive year, we have prepared our annual report in accordance with the guidelines of the Global Reporting Initiative (GRI), a world reference for corporate reporting. The full document is available for download here. Below is a summary of its content that addresses Linx's performance between January 1 and December 31, 2020 in the EESG (Economic, Environmental, Social and Governance) areas. The publication brings the main initiatives and indicators related to our 10 material topics, raised from a materiality process carried out early 2020. Are they:

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Message from the CEO

In the beginning of 2020, very few people could imagine that an epidemic would have the consequences that we are still experiencing today all over the world. In a time of intense difficulty, Linx showed, once again, its incredible ability to reinvent itself. In 2020, part of the evolution of the economy was directed towards the digitization of processes and solutions, and Linx continued to follow this path. We found quick solutions for our retail customers to maintain their revenues, even if partially: we focused on expanding e-commerce tools.

Alberto Menache CEO

Read the message in its entirety,
located on pages 3 and 4 of the 2020 annual report.

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About us

Leader and specialist in technologies for retail, we are Linx. S.A., one of the largest companies in Latin America in cloud-based technology. Active since 1985, our operations are focused on the development and supply of software system solutions for the various retail segments, through integrated technologies that bring more efficiency and profitability to customers.

With headquarters in São Paulo and more than 3,300 employees, we are present in nine Brazilian states and in addition to Brazil, in Chile, Mexico and Argentina!

Learn more about Linx and our Linx Core, Linx Digital and Linx Pay business areas in the 2020 annual report.

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Corporate Governance

Linx has been part of B3's Novo Mercado segment since 2013, when the company went public on the then BM&F Bovespa. In 2019, with the entry of the company in the New York Stock Exchange (NYSE), we began to adapt to the compliance standards set forth by the Sarbanes-Oxley Act (SOX), mandatory for companies listed in the United States.

The highest body of Linx's governance structure is the Board of Directors (CA), which manages the Company together with the Statutory Board. There is also a non-permanent Fiscal Council – which operated in 2020 – and three advisory committees to the Board: the Audit Committee, the People Committee and the Strategy Committee. The Executive Board is assisted by the Sustainability Committee.

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Human Capital

The year 2020 was quite challenging due to the pandemic and its impacts, both in terms of caring for employees, as well as for the changes that came with the remote management of the teams.

To monitor this moment, we created a section in the Annual Climate Survey, called #LinxEmCasa, and found that 85% of respondents perceived the company's genuine care for people and 90% responded that they were maintaining an adequate remote work routine.

The proof of this is that, in May 2021, we received the Great Place to Work seal: we were certified as "Excellent Place to Work" after our team answered a questionnaire that assessed Linx's work environment according to the GPTW certification methodology.

employer reputation

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Linx diversity strategy

In addition to bringing more results from the Annual Climate Survey, the Human Capital chapter of our 2020 annual report addresses our policies and initiatives related to talent development and inclusion and Diversity - which had its strategy formulated in 2020 and has already established to work with actions related to five priority topics: GENDER, RACE, LGBTQIA+, PCD's and GENERATIONS.

Learn about the steps to build the Linx Diversity Strategy:

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Social and Relationship Capital

In 2020, Linx reaffirmed its commitment to the local community, supporting projects focused on professional training and the development of socioemotional skills, through courses on digital inclusion and entrepreneurship for young people in vulnerable situations.

4

Volunteer Work

Even at a distance, we were able to strengthen our volunteer program with the creation of the Linx Volunteering Meeting: with approximately 300 Linx participants, over eight virtual meetings, we engaged and facilitated the exchange of experiences to promote corporate and individual volunteer actions.

Learn more on page 66 of our 2020 annual report.

Social partners

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Natural Capital

Linx operates in full compliance with the best practices of the National Solid Waste Policy, through partnerships to donate equipment and dispose of electronic waste with an environmental certificate, in addition to avoiding the waste of natural resources.

Get to know our Emissions Inventory on pages 72 and 73 of the 2020 annual report.

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Performance in the year

In 2020, we consolidated our strategy in three areas of activity: Core, Digital and Pay Hub. We also expanded our ecosystem, acquired four companies and surpassed the mark of 400 franchises. Regarding operational performance, we achieved a 99.2% customer renewal rate in 2020, in line with 2019.

Imagens_A

Stimulus to innovation

To create a productive environment for innovation within Linx, we hold the Innovation Cup every year. The competition focuses on technology, R&D, Cloud, Corporate IT and Support teams, including teams from Brazil and Argentina.

In 2020, 46 projects were registered. The winners in the Products/Software category were Linx Commerce Farma and App Venda Fácil; in the Business Processes category, LAIS 2.0 was chosen. The Farma solution is already present in over 11 thousand stores.

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Expansion plan

In 2020, we advanced in our plans for expanding franchises and Linx Service Partners (LSP) – a program aimed at service partners to deploy Linx solutions to our customers, which allows a larger number of technology companies for retail to join the Linx ecosystem.

Learn more on page 66 of our 2020 annual report.
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2020 highlights

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Financial Capital

At the beginning of the pandemic, we entered into important partnerships with marketplaces and expanded the accessibility of our e-commerce platform, enabling the growth of Linx Digital, while Linx Pay prepared and expanded with the arrival of Pix.

With all this, Linx's financial performance was satisfactory in 2020, and the company ended the year with net operating revenue of R$ 876.3 million, which represents an 11.2% growth over 2019. EBITDA was 3.6% higher than the previous year and ended 2020 at more than R$ 210.3 million.

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Linx Sustainability

For questions, suggestions and partnerships on social and environmental issues, contact us on sustentabilidade@linx.com.br.

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