DEVELOPMENT OF OUR PEOPLE

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1 DEVELOPMENT OF OUR PEOPLE Purpose Promoting the comprehensive development of the human capital with the purpose of achieving the availability, commitment and productivity of the employees, guaranteeing their capabilities and talents in the short, medium and long term to secure the achievement of the Organization s goals. STRATEGY GRI PROGRESS GRI Embracing and incorporating the Nutresa Talents of the Being into the Development Management process. Implementing the training plan for the development of the Nutresa Talents of the Being.» The Organization consolidated the knowledge on the talents of its employees and they were incorporated into the Development Management Model in order to measure them. This measurement was supplemented with the performance indicators related to the corresponding positions.» Ten training modules were developed with participants, 230 total hours and a satisfaction indicator of 4,55. Consolidating practices to plan and develop the human talent. Strengthening the talent recruitment and engagement channels and strategies. Developing capabilities focused on the management of the supply chain. Managing the organizational climate and the commitment of Grupo Nutresa s companies.» 129 internships, 438 promotions, call for entries and nominations were carried out.» Grupo Nutresa was active in the social networks as an employer, which resulted in interactions and 1% candidates from these media.» A Contractor Management diploma course was organized with the participation of 30 employees. It consisted in 100 hours of training and the satisfaction level of its participants was 3,8.» 18 measurements were conducted, which produced a result of 83,4%, with respect to a goal that had been established at 83,2%. 102 Integrated Report 2016

2 Managing the value chain responsibly Risks and opportunities GRI The development of the employees is a key business factor. Therefore, the development management strategies are focused on achieving the commitment, productivity and comprehensive growth of the employees, minimizing the risks of a high level of personnel rotation and low availability of suitable talent to ensure the Organization s sustainability. Currently, it is essential to maintain a work culture that is appealing to all generations, as well as socially inclusive and diverse, a work culture that fosters the balance between work and personal life, driving thus the construction of an employer brand and a leadership platform favorable for the development of the human talent. Outlook Furthering the programs for training and development of leaders and people in critical roles for the Organization, with a flexible curricular program focused on the transverse talents of the Nutresa Being and key business matters, such as: innovation, sustainability, digital culture, supply chain, customerconsumer-buyer, transformative leadership, business continuity and bilingualism. Indicator: Number of participants Goal: Training 100% of the leaders and people in critical roles. Strengthening the talent planning process by updating the key talent map in all Grupo Nutresa s companies and supplementing it with preparation plans and career development routes. Indicator: qualified talent vs. key roles. Goal: Identifying 100% of the talent. Servicios Nutresa employees, Medellín. Consolidating the Organization s inclusion strategy by identifying and incorporating diverse talents in new projects and responsibilities by means of practices that strengthen gender equality, and the hiring of people with special capabilities and talent coming from different geographic origins, among other. Indicator: number of internships, foreign internship students, people from other regions and people from minority groups. Evolving the measurement and the understanding of the organizational climate toward a more comprehensive model that incorporates other perceptions of the employees regarding organizational health, such as management, leadership, culture, responsibility, coordination and control, capabilities, motivation, external guidance, innovation and learning. IIndicator: Organizational Health Index (OHI). Finally, developing new talent-hiring methods with the aim of achieving a greater flexibility and attraction of specialized professionals, apart from promoting the participation of external and internal entrepreneurs as a strategy to develop high-value projects for the Organization. 103

3 Success stories and acknowledgments GRI The Organizational Behavior Research Center (abbreviated CINCEL in Spanish) acknowledged several of Grupo Nutresa s companies due to their outstanding improvement and organizational climate management. Compañía Nacional de Chocolates was ranked in the first place in terms of organizational climate with an outstanding score of 90,4%, from a group of 57 companies with more than 500 employees from Colombia and abroad, which were evaluated by CINCEL in Comercial Pozuelo El Salvador was acknowledged as the foreign company with the best organizational climate. Molinos Santa Marta was ranked first among the companies with more than 100 employees in Colombia. Pozuelo employees, Costa Rica. Productos Alimenticios Doria stood out in the category with the most significant improvements in terms of organizational climate management. CINCEL acknowledged several of Grupo Nutresa s companies due to their excellent organizational climate management. TALENTO 104 Integrated Report 2016 Grupo Nutresa was acknowledged as the second best company to work for in Colombia and the first from the food sector. In Chile, Tresmontes Lucchetti stood out in Merco Talento 2016, getting the second place in the ranking in the food sector. For the third consecutive year, TMLUC has been acknowledged as one of the top companies in terms of talent attraction and retention.

4 Managing the value chain responsibly Nutresa Nuestra Academy for sales Assistants, Comercial Nutresa. Progress archived in 2016 GRI In 2016, all the employees embraced and incorporated the Nutresa Talents of the Being: Thinking without borders; Sustainable vision; Achievement-driven inspiration; Passion for customers, consumers and buyers; Sense of collectivism; Innovation and change management; and Development of both the self and other people. The purpose consisted in achieving the understanding and remembrance of the behaviors associated with said talents and incorporating them into the Development Management Model, which derives from a comprehensive management by the employee, giving equal importance to the fulfillment of business indicators and to the talent maturity level. Additionally, this model was implemented in Success Factors, an information platform that supports the human talent management performance management assessments were carried out over the year as part of this system, which has the purpose of ensuring the contribution of the employees to the Organization s performance and productivity. Regular performance assessments GRI [SDG 5] [SDG 8] 2015* 2016 PERCENTAGE OF MEN who are regularly assessed for performance and professional development. PERCENTAGE OF WOMEN who are regularly assessed for performance and professional development. PERCENTAGE OF EMPLOYEES who are regularly assessed for performance and professional development. *The 2015 data were recalculated to have comparability. 52,3 33,1 45,2 58,6 42,6 52,8 105

5 The strategies focused on training and developing the Nutresa Talents of the Being were defined within the context of the Schools for Leaders, Employees, Customers and Strategic Allies, where the following modules were taught: agreement establishment, comprehensive contractor management, diversity and inclusion, business environment, knowledge management, protection of free competition, indirect service model, labor relations, consumer-focused pricing, digital marketing, productivity-aimed conversations, Human Rights and Familiarly Responsible Companies, with the participation of people, a total of 230 hours of training, and a satisfaction rating of 4,55. Skills and training management programs GRI [SDG 8] Program name Business Goal Prejubilo (Pre-retirement) Coffee Facilitating reflective and educational processes that prepare the employees to face the changes related to this new stage of their lives, achieving thus their adaptation to change and full enjoyment of their retirement. Adultez Plena (Plentiful Adulthood) Program Jubilados (Retirees) Mentorship in preparation for retirement Jubilados (Retirees) Competencias comerciales (Commercial Capabilities) Cold Cuts Ice Cream Biscuits Biscuits Ice Cream Preparing two years in advance the people who are reaching the age of retirement and fulfilling the corresponding requirements with the purpose of providing them with tools so that they start assimilating the change and enjoying the new lifestyle. Understanding the process of making the transition to retirement and anticipating actions focused on making it a successful new stage, securing the personal contribution and the satisfaction in the new status. Comprehensive follow-up and support that allow an adequate labor disengagement process. Identifying guidelines and strategies that contribute to the process of adapting to the change in the retirement stage according to the expectations, interests, needs and personal motivations. Facilitating tools for the employees to learn about profitability, negotiation, service and communication matters. Working capabilities certifications Biscuits Supporting the operating staff for them to get certified in three applicable standards with regard to their capabilities. Excel Level II Ice Cream Providing tools that facilitate tasks and optimize execution times. Buenas prácticas de manipulación BPM (Good Handling Practices) English Lab Retail Food Servicios Nutresa Achieving the levels of the Common European Framework, developing the employees skills of interaction with people from other regions of the world where Grupo Nutresa operates. Achieving the levels of the Common European Framework, developing the employees skills of interaction with people from other regions of the world where Grupo Nutresa operates. 106 Integrated Report 2016

6 Managing the value chain responsibly The reinforcement of practices and scenarios for the development and training of professionals was made by means of 129 employee internships in all the companies and organizational processes both in Colombia and abroad, 438 promotions and the publication of call for entries to fill open positions. In addition, people enrolled in external training programs that represented an investment of COP 8,9 billion. GRI Meals de Colombia employees, Bogotá Employee training GRI MANAGEMENT SENIOR EMPLOYEES OPERATING STAFF Men Women Men Women Men Women TOTAL Education and training Number of people Occupational health and safety Higher education Education and training Total hours Occupational health and safety Education and training Investment (COP millions) Occupational health and safety Higher education Grupo Nutresa s presence as an employer in social networks was consolidated, achieving interactions and 1% of candidates resulting from Facebook, Twitter and LinkedIn. This evidences a high capacity to attract talent directly and a strong employer brand positioning, which in turn opens employment possibilities in all the regions where the Organization operates and provides the global talent with opportunities to participate in the recruitment processes to fill the open positions. 107

7 Geographic distribution of direct employees according to their gender and country of origingri Employees (2016) / internship students (2016) 2,3% 252 / / / / / / 2 1,4% 301 / 0 96 / / / / / % % 0,6% 111 / 0 62 / / / 0 67 / 0 194/ ,0% 203 / / / / / / 0 Chile 6,7% Mexico: 4,3% 746 / / / / / / / / / / / / 14 0,1% 0,7% 13 / 0 22 / 0 35 / / 0 78 / / 0 15 / 0 30 / 0 45 / / 0 72 / / 0 68,5% 0,8% / / / / / / 0 51 / / / / / / / / 732 7,4% Peru 2,7% 302 / / / / / / / / / / / 0 2,4% 108 Integrated Report / / / / / / / 815

8 Managing the value chain responsibly Executive managers from the local community GRI ,1% 100% 80 78,6% 75% 85,7% 60 44,4% 50% 50% Colombia Costa Rica Mexico Peru Panama Dominican Republic United States Chile The Organization continues to settle on a level of excellence with regard to the management of the organizational climate after getting a consolidated result of 83,4%, with respect to a goal that had been established at 83,2%. The most outstanding variables were the following: organizational clarity, teamwork, stability, interpersonal relations, resource availability and respect. Grupo Nutresa was acknowledged within the framework of Merco Talento 2016 in Colombia as the top company to work for in the food sector. While in Chile, Tresmontes Lucchetti was ranked among the top companies to work for in its sector, according to the local version of the same study. The foregoing supports healthy indicators in terms of personnel rotation, which closed 2016 at 17,4% for the productive operations. Additionally, the Organization has put in place other talent retention strategies such as professionals mobility practices in project assignment, internships, participation in internal call for entries, employability training, and a salary policy that ensures competitiveness and fairness. Another aspect worth highlighting is the Organization s technical system for salary assessment, which determines the salaries according to the dimension of the contribution from the people with regard to their positions, and in which gender is not considered as a criterion for salary allocation. Novaventa s commercial team, Medellín. Hiring of personnel and rotation ratio GRI [SDG 8] Production operations Distribution and commercialization Retail food New employees Rotation ratio 17,4% 11,1% 63,4% 109

9 Relation between the initial salary and the local minimum salary GRI Colcafé employees enjoying a cup of coffee. MENS WOMEN Colombia 1,78 1,27 Costa Rica 1,72 1,10 Ecuador 1,25 1,11 Mexico 5,13 3,68 Panama 1,14 1,17 Peru 1,98 1,78 Dominican Republic 1,62 1,95 U.S. 1,31 1,08 Chile 1,93 1,27 All the management actions and facts described above drive to the consolidation of the human capital as one of the differentiators of Grupo Nutresa s business model. 110 Integrated Report 2016

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