58 2016 ANNUAL REPORT 2016 ANNUAL REPORT 59

GOVERNANCE AND RESULTSGOVERNANCE AND RESULTS

By type of contract

Breakdown of employees by type of contract 2016

Indefinite contracts Fixed term contracts Apprenticeship contracts

1.4% 11.5%

87.1%

In France, permanent contracts represented 94.0% of total employees in 2016 compared with 94.2% in 2015.

At December 31, 2016 the Group had 1,521 temporary or similar employees, i.e. 7.6% of total employees including temporary staff.

By age

Breakdown of permanent employees by sex and by age 2016

14.1% 17.2%

31.2% 28.6%

29.1% 29.3%

22.7% 21.2%

2.9% 3.7%

≥ 55

45 54

35 44

25 34

≤ 24

Women Men

Breakdown of permanent employees by status and by age 2016

16.8% 15.9%

29.6% 29.5%

32.4% 28.6%

20.6% 22.0%

0.6% 4.0%

≥ 55

45 54

35 44

25 34

≤ 24

Manager Non-manager

Young employees (≤ 24) represent 3.4% of permanent employees and employees over 55, 16.1%.

By length of service

Breakdown of permanent employees by length of service and by sex 2016

24.3% 28.5%

25.7% 26.6%

27.6% 25.6%

22.4% 19.3%

≥ 21 years

Between 11 and 20 years

Between 4 and 10 years

≤ 3 years

Women Men

Breakdown of permanent employees by length of service and by status 2016

23.3% 27.6%

24.0% 26.7%

28.0% 26.1%

24.7% 19.6%

≥ 21 years

Between 11 and 20 years

Between 4 and 10 years

≤ 3 years

Manager Non-manager

The average length of service in the Group amounted to 14 years in 2016.

ORGANIZATION OF WORKING HOURS

Hours worked On average, a Group employee worked 1,677 hours in 2016 and 1,471 hours in France including 18 hours of overtime. 34.1% of employees in France worked at least some overtime in 2016.

Part-time work Part-time work applied to 4.6% of the Group s permanent employees (8.8% of women and 2.1% of men).

Part-time work is mostly chosen by employees as a means of meeting the balance between work and home life, a dimen- sion to which the Group pays close attention.

Local residents Specific preventive measures are aimed at reducing and limiting any disturbance of local residents essentially in the following areas:

Noise disturbance with the installation of acoustic walls; Olfactory disturbance with the optimization of purifying station treatments in order to accelerate biodegradation, limitation of the ventilation of purifying station sludge and dehydration of sludge using centrifugation.

Suppliers SAVENCIA Fromage & Dairy develops long-term collabora- tive relationships with its main suppliers with the focus on sharing progress.

Suppliers are selected on the basis of criteria of quality, security, service and competitiveness, and of their capacity to accompany the Group in the long term. The Group is attentive to the economic equilibrium, for the long term, in particular of its large and small SME suppliers.

Functional analysis of requirements, reasoning in terms of total cost and the search for innovative solutions are the engines of the Group s purchasing policy which encourage the emergence of competitive and sustainable solutions. Forums for innovation allow suppliers to present their prod- ucts and processes.

Purchasing consolidation, the rationalization of references and the development of framework agreements also con- tribute to the Group s competitiveness.

RESPONSIBLE PROCUREMENT A purchasing code of conduct governs our buyers commit- ments in their relationships with suppliers in the following four main areas: integrity and ethics, communication and collaboration, progress and widely, responsible and sustain- able procurement.

The Group s Charter for Sustainable and Socially Inclusive Purchasing sets out the Group s expectations. Widely distrib- uted to suppliers, who are invited to confirm their adhesion, it is also systematically communicated in the framework of requests for tender.

In France, the Group is a signatory of the Charte Relations Fournisseur Responsable de la Médiation des Entreprises et du Conseil National des Achats intended to promote respon- sible purchasing and long-term partnerships between large and small companies of the same industry, and to support the competitiveness and financial equilibrium of large and small SME suppliers.

Buyers and all new managers receive training in the Group s responsible purchasing policy.

The social and environmental performance of our main suppli- ers is assessed by ECOVADIS using a consistent methodology. Areas for progress identified are shared with the vendors con- cerned. 105 vendors were thus assessed in 2016.

SAVENCIA Fromage & Dairy does not engage in any signifi- cant amount of production subcontracting but has recourse to service-providers in particular for cleaning and mainte- nance. Our service-providers are informed of the hygiene and safety requirements in force at the sites on which they operate.

SOCIAL REPORT

VALUES AND ORGANIZATION SAVENCIA Fromage & Dairy is attached to the development of equitable and constructive relationships with its stake- holders.

For many years, the Group has developed a responsi- ble human resources policy anchored in humanistic cul- ture: building the future with the support of its employees, and developing their talents by providing each employee the opportunity of progressing and engaging in personal achievement within the Group.

The Safety is OUR business program is designed to prevent the occurrence of occupational risks at all our subsidiaries, and is materialized by a common commitment to changing patterns of behavior and adopting a collective culture of safety. The World Week of Health and Safety at Work binds employees and provides recognition for initiatives deployed in the field to ensure the safety of all.

The diversity of our geographical locations, activities and businesses makes it possible to offer numerous career opportunities supported by a charter for mobility. Annual assessment provides input to personal development plans both reinforcing skills and ensuring continuing employability. Our participative management through objectives makes it possible to delegate, render each employee accountable and focus action on the year s priorities.

Periodic staff opinion surveys have been performed in con- junction with the Great Place To Work institute since 2009. They enable each subsidiary to dispose of quantified data and define focuses for progress and improvement.

The Top Employer label recognizes the quality of human resource managerial practices and systems. In 2016, the Group received the Top Employer France label for the 8th consecutive year and for the 4th time, the Top Employer Europe label. It was also recognized as a Best French Employer in 2016 by Capital magazine, with 1st place for food industry employers.

THE GROUP AND ITS EMPLOYEES The Group had 19,307 equivalent full-time employees (includ- ing temporary employees) in 2016 (18,911 in 2015).

They were located as follows: 41% in France; 30% in the rest of Europe; 29% in the rest of the world.

Analysis of employees at December 31, 2016 18,568 persons were employed on the basis of indefinite or fixed term contracts of employment at December 31, 2016 (18,131 at the end of 2015).

By status The number of managerial staff in the Group attained 2,764 at December 31, 2016 i.e. 14.9% of the total at the level of the Group and 18.0% in France, stable compared with 2015 (respectively 14.7% and 17.6%).