62 2016 ANNUAL REPORT 2016 ANNUAL REPORT 63

GOVERNANCE AND RESULTSGOVERNANCE AND RESULTS

In-house communication The Group s internal communication is supported by in-house magazines, general and specialized intranet por- tals, posters, travelling exhibitions etc. A Group magazine is available to all employees.

SAVENCIA Fromage & Dairy s decentralized form of organiza- tion encourages all such initiatives, stimulates dialogue and contributes to staff development both within individual sub- sidiaries and in the Group as a whole.

Listening to employees Great Place To Work employee surveys have been per- formed periodically at all subsidiaries since 2009. They measure the social climate by allowing all staff members to express anonymously what they think and their expectations. The questionnaire covers pride of belonging, management s credibility, respect, fairness and conviviality.

Employees are informed of the results, which are used by each subsidiary to identify areas where progress is required and implement action plans. The mechanism helps subsidiaries fine-tune their human resource practices and results and contributes to our policy of continuously improving human resource management and tools with the involvement of both management and all employees.

SOCIAL AND SOCIETAL RESPONSIBILITY

A responsible approach to restructuring and organizational change SAVENCIA Fromage & Dairy pays attention to adapting and developing its employees skills so that they are able to respond to the ongoing changes in our organizations and jobs. We encourage training leading to diplomas that enhance staff employability. The Group s Ethical Charter recalls that when restructuring is required, the Group undertakes never to leave an employee confront a problem of employment alone.

In conjunction with trade unions, the Group places the accent on training, mobility and career management. When it is found to be impossible to resolve an issue of employment by internal mobility, SAVENCIA Fromage & Dairy implements a set of measures to help employees find work elsewhere: skills assessment, training courses, outplacement, help with business creation etc. In such circumstances, employees are always followed on an individual basis.

Compliance with International Labor Organization agreements Via its adherence to the UN s Global Compact since 2003, SAVENCIA Fromage & Dairy is committed to complying with its ten principles governing human rights, working condi- tions, the environment and the fight against corruption.

The ten fundamental principles are recalled in the Group s Ethical Charter which states that each employee has a duty to alert whenever the employee believes that a violation of the Group s ethics is occurring.

Local and social commitment Since 2011, the Group s Arrondi program enables volunteers forfeit the centimes included in their net monthly pay, in return for which SAVENCIA Fromage & Dairy also pays a con- tribution for the benefit of four partner associations provid- ing micro-credit finance.

In 2016, the Group signed a sponsorship agreement with Planète Urgence which enables volunteer staff to engage in a humanitarian mission for two weeks in the framework of special leave for the purpose of providing his or her skills in Africa, Asia or South America.

The Group encourages its entities and their staff to support local initiatives. Group subsidiaries are generally located in rural areas where they play an active role in providing jobs and in local economic and social development.

Numerous initiatives are conducted in cooperation with local and regional bodies, especially with regard to:

Jobs: partnership with national employment agencies, providing work experience and apprenticeship and pub- lishing vacancies in schools and universities; Training: cooperation with schools and universities, pay- ment of trainning taxes, sponsorship, educational inter- ventions in schools; Providing work for people in difficult situations: working with sheltered employment institutions and organization for disabled workers .

Subsidiaries provide local support to cultural or humanitarian organizations, such as Restos du Cœur and food banks, and organize specific aid for the victims of natural disasters.

At the Group level, our Bien Nourrir l Homme endowment fund supports employees undertaking socially inclusive ini- tiatives in France and abroad and also provides support for projects undertaken by organizations.

support and training processes, individualized welcome and integration and adaptation of premises, workstations and working hours. Collaboration is equally developed with sheltered workshops and similar bodies.

The Handicap Week provides the occasion for events and workshops designed to raise employees awareness of people's perceptions of handicaps, fight stereotypes and promote the recruitment and maintained employment of handicapped persons.

Certain subsidiaries have signed agreements to support their staff in the process of obtaining Recognition of Handicapped Worker Status.

In 2016, the Group employed 2.8% of handicapped persons. In France, the proportion amounted to 4.1%.

COMPENSATION SAVENCIA Fromage & Dairy s compensation policy is designed to ensure equity, support the Group s attractive- ness and retain and motivate talents. In addition to fixed compensation, certain employees may be eligible, depend- ing on their responsibilities and functions, for an individually determined variable component of compensation based on the achievement of objectives set during the annual appraisal. Profit-sharing arrangements may also be available.

Total payroll rose by 1.8% in 2016, notably reflecting in par- ticular individual and collective pay increases, inflation in the emerging countries and the weakening of the euro against other currencies.

Since 2012 and in France, the Group provides employees so wishing with a detailed annual summary of all the ele- ments of direct and indirect remuneration applicable to the employee.

EMPLOYEE SAVINGS IN FRANCE In 2015, SAVENCIA Fromage & Dairy implemented a Plan d Épargne Retraite Collectif (PERCO) Group Retirement Savings Plan for all its employees in France. The plan enables them to save additionally for retirement with the benefit of an incentive contribution from the employer. The plan has reinforced employee savings in the Group which already possesses a Plan d Épargne Groupe (PEG) Group Savings Scheme.

Available since 2008, the PEG allows all employees in France to invest via various mutual funds including the SAVENCIA SA Mutual Fund, an employee shareholding fund. In order to support and add value to the savings of employees who take a stake in the Group s development, the Group tops up the SAVENCIA SA Mutual Fund with a supplement encouraging small investments in particular.

French entities mandatory profit-sharing allocation for 2016 amounts to 6,707,650.

Some subsidiaries have signed additional profit-sharing agreements designed to promote greater commitment by employees to their companies performance or to the achievement of goals of quality, productivity or safety at work, etc.

QUALITY OF EMPLOYEE RELATIONS

INFOGRAPHIE

Social dialogue

Dialogue with employees is placed as close to the field as pos- sible, in order to adapt to each of the Group s businesses and organizations in accordance with the Group s principle of sub- sidiarity.

At all levels in its organization, the Group has bodies repre- senting personnel: in subsidiaries with works committees, in France with the Group Committee and in Europe with the European Works Committee.

Rules and procedures for consultation, the provision of infor- mation and negotiation are implemented to advance social dialogue.

Collective bargaining agreements In France, SAVENCIA Fromage & Dairy is progressively deploying a core set of harmonized collective bargaining agreements which already include the new PERCO Group Retirement Savings Plan complementing the prior agreements within the Group Savings Scheme, providence benefits and supplementary healthcare insurance. The agreements, negotiated and signed unanimously with our trade unions, are managed by joint Group employee and management commissions.

In 2016, annual remuneration agreements were signed at 57% of our subsidiaries.

In addition to profit-sharing (cf. the paragraph on employee savings in France) and with the aim of improving working conditions, agreements for the prevention of particularly painful working conditions have equally been concluded by certain subsidiaries. They may, for example, provide for spe- cial pre-retirement working arrangements for employees subject to harsh working conditions.

Staff welfare in France In France, the staff welfare budget is mainly managed by each subsidiary s Works Committee.

Most companies subsidize, partly or totally, benefits such as supplementary healthcare insurance, transport, meal vouch- ers and holiday checks. Supplementary healthcare insurance is the welfare benefit most widely provided.

According to the 2017 Great Place To Work survey,

80% of the employees of SAVENCIA Fromage & Dairy Deutschland declare that theirs is a company where it really feels good to work.

Our progress