TO DEVELOP CLOSE AND LASTING TIES

2018 SuStainabilityPlanS

Completed

Significant Progress

Re-planned

4%

73%

23%

2018 SUSTAINABILTY MANAGEMENT

Advances in sustainability plans

2017 2018

82 86

for plans addressed in 2018

ongoing from 201728%

Focus Stakeholders initiatives

Consumers

Communities

Farmers

Customers

Partners

approach and

transparency

• Sustainable marketing • Open doors in our operations• Shared value• Learning and continuous improvement• Appreciation and respect

Every stakeholder

Farmers

Communities

Government bodies

Consumers

accountable for impacts

• Ethics and good practices in corporate governance• Energy matrix and consumption• Hydric resources• Waste management

Consumers

Customers

Farmers

Customers and

development

adjustment for growth

• Nutritional quality• Fight against obesity• Digital change and automation• Sustainable farming

We strive to contribute to society with our products, creation of employment, innovation and good practices.

Basis for interaction with stakeholders

Reliability transparency Mutual benefit

Partners Consumers Shareholders Suppliers Farmers Customers

Communities Government bodies and Law and Order

Institutions

TradeUnions

Academics Nutritionists Media

STAKEHOLDERS

n

S U S T A I N A B I L I T Y A T A G L A N C E

Responsible management

of the supply chain

Customer development

Protection of employees’ health and

safety

Fostering sustainable

farming

Customer and consumer satisfaction and grievance

management

Business associates’

development

Development of critical service

providers

Safeguarding price-quality

balance

Working conditions and

well-being

Production process environmental impacts

management

Ethical management

Good corporate governance

practices

Environmental impacts

of the product

Risk management

Reputation

Community relations

Trade union liaison

Fosteringhealthylifestyles

Fosteringhealthy diethabits

Commitmentwith nutritionalquality

C A R E FO R T H E E NVI RON

MEN

T

CAROZZ I CU LT U R E

SU

STA

INA

BL

E V

ALU

E CH

AIN

H EALTHY LI FESTYLE

STRENGTH, LEA

DE

RS

HIP

AN

D R

EL

IAB

ILIT

Y

Cont

ribu

ting

tow

ards

the

deve

lopm

ent

of o

ur s

trat

egic

bus

ines

s ass

ociat

es

Contributing to a healthier society

Becoming accountable

for our impacts

of future genera

tions

Being proactive in

favo

ur com

mitm

ent from the people

Placing a wager on quality life and

SU

S T A I N A B I L I T Y G O V E RN

AN

CE

S U S TA I N A B I L I T Y P I L L A

RS

CAROZZI’S SUSTAINABILITY STRATEGY

Comprising:

5 Pillars 20 guidelines GovernanceOUR SUSTAINABILITY STRATEGYWe continued with the implementation of the sustainability strategy during 2018. With it we take ownership of our social, economic and environmental impacts, as well as move forward to create value for our shareholders, and internal and external stakeholders.We wish to strengthen our business model by addressing both the risks and the opportunities for improvement in our value chain.

“Along with making the business grow and together with the stakeholders, we have travelled a road of building, learning, and improving.”

Sebastián GarcíaGeneral Manager

VISIONTo be the most respected and valued mass consumption company in Latin America.

PURPOSETo give our best so that people can enjoy life more

Strength, leadership, and reliability

Commitment to the vision and values of the company are essential to us. Furthermore, we develop transparent and close relationships with our

stakeholders, where Carozzi Open Doors programme stands out.

FREE COMPETITION POLICY

TRADE UNION RELATIONS

Due to the importance Carozzi has always given to free competition, we keep a full compliance programme that takes into consideration:

f Comply with our code of ethicsf Apply the free competition manualf Watch all kinds of communicationf Protect our informationf Report conflicts of interest

f Report relevant conflicts

f Issues forbidden by the code of ethics

f Sexual harassment

f Workplace harassment

f Changes to our code of ethics

f Corruption in private sector

(change to Chilean Penal Code)

iSSuES aDDRESSED in-DEPtH in 2018

SubJECtS OF “MESSaGE OF tHE MOntH” COMPany ValuES anD EtHiCS

“ValuES anD buSinESS EtHiCS baROMEtER SuRVEy”

peopletrained on free competition

Peru division drafted a free competition and consumer protection manual148

We believe that co-operation among different business associations enhance our sustainable practices. It is important to develop initiatives together with other

companies in the industry thus, assisting in having increasingly higher standards in the food industry, strengthen healthy competition, and product quality.

My company is always ethical and does the right thing

People in your company are guided by principles and values

to achieve their goals and objectives

Have you taken part in any training or education regarding values,

ethical behaviour or code of conduct of your company?

AnsweredYes

AnsweredYes

AnsweredYes

During the first semester of 2018 we participated in the “business barometer survey” of Company Values and Ethics-based on the employees’ perception (directors, middle management, and base rank) to assess ethical and corporate compliance. This anonymous survey was carried out by Fundación Generación Empresarial, based on guidelines regarding ethics, the following are considered the best:

ETHICAL MANAGEMENTCarozzi keeps its ethical code alive through a series of awareness and feedback activities wherein we gather concerns and suggestions from the business associates.

PREMiSE: Ethics are part of our core values

Talks

47in total

2016 2017 2018

11

2016

Participants

1 126Total

284

405

437

85%

76%

79%

ST

RE

NG

TH

,

LE

AD

ER

SH

IP

,

AN

D

RE

LI

AB

IL

IT

Y

f Free competition manual

f Training talks by expert attorneys

f New partners induction

f Reporting channel open to all stakeholders

f Compliance area

100To us, the 100 thousand visit to the Open Doors Programme is extremely special; it means that many children, youngsters, elderly and other community members have been able to enjoy the Carozzi experience since 2013.

PROGRaMME

is a space to build relationships with customers and the community

Are inter-active panoramic passages from where our visitors, guided by monitors can learn up-close the production processes at the Teno and Nos plants.

Skyviews

visit

It seeks to foster transparency, to develop close relationships, and fidelity to the products we manufacture, and to the business in general

OPENDOORS

People visited usat our industrial facilities

in Nos

our employees visited us

20 784

Children of 1 054

personas visitaronnuestro Complejo Industrial

en Nos

hijos de nuestros colaboradores

20.784

Nos visitaron1.054

Our sustainability management is based on a strong Corporate Governance structure that provides, inter alia, directives and guidelines regarding the expected behaviour of Carozzi’s each business associate or employee, the commitment to the vision and values of the company is paramount.

Guidelines

STRENGTH, LEADERSHIP, AND RELIABILITY

VALUESf We value and integrally respect people.

f We always give priority to truthful behaviour and fully commit to the company.

f We efficiently and responsibly manage resources.

f We are passionate about a job well done.

Good corporate governance practices

Trade union relationships

Risk management

Reputation

Ethical management

n

n

2018

thousand

CarozziCulture

The development of a strong and committed company is based on avision focused on respect and a purpose that fosters giving

the best of ourselves. The new leaders programme plays a fundamental role in shaping and inspiring the teams.

OUR TEAMEMPLOYEES’ DEVELOPMENTWhen selecting people and creating teams we strictly adhere to the principles of impartiality, fairness and non-discrimination. During 2018 we invested heavily in internal mechanisms that will ensure compliance with said values.

Working conditions and well-being

Employee development

Protection of healthand safety of our

employees

CaROzzi’S CultuRE

Fundamental pillar of our management.

o

aCCORDinG tO aGE GROuP

f Vision focused on respect and geared towards our purpose.f Commitment and motivation

baSiS OF OuR ORGaniSatiOnal CultuRE:

SalaRy GaP byPOSitiOn

7 022

Between 30 and 40

years old

Between 41 and 50 years old

Between 51 and60 years old

Between 61 and 70 years old

Less than 30 years old

27%21%

14%

3% 35%

3 301

216

25

Chile

Perú

Argentina

Other Countries

People spread in:Males

Females ChILE

10 5646 205

4 359

The strategic pillar of culture encompasses

three guidelines:

Operating group

Admin

Supervisors,heads and professionals

Data pertinent toChile and Peru

102,21%

92,14%

94,29%

wom

en/m

en

CA

RO

zz

I

CU

LT

UR

E

For Carozzi, diversity management is a corporate

commitment

Motivator

Respectful

Tutor

Strict Approachable

37%

We started this program for young people studying mechanics and electricity in technical schools in San Bernardo and surrounding areas, together with Universidad de Santiago de Chile (USACH). The graduates did their internship in our Nos plant and subsequently were able to apply for a job.

of all section heads and supervisors

trained

PROGRaMME

NEW LEADERS

The purpose of this programme is to train, support and align our leaders from their first day, based on a “Carozzi leader profile”, thus managing and

lead their teams in a suitable manner. In 2018 was the first time that inclusion and non-discrimination at work were introduced In the programme.

EDUCATION AND TRAININGWe worked hard in the internal training syllabus to make them more consistent and systematic. Together with that and to complement automation of our operations, we developed a training-focused programmed to provide the necessary tools for new tasks and procedures.

60%

30

3 800 300

Training sessions in 2018

Trained employees

483

Graduated 27

Participants

Courses for technicians

Employed 670%

Goal

Results

oo

2018

intERnal tRaininG

tECHniCal PROFESSiOnal DEVElOPMEnt PROGRaMME

Healthylifestyle

We promote well informed nutrition, in suitable portions, together with physical activity. Through the let´s Eat informed Programme we strive to educate

consumers in eating habits.

HEALTHY LIFESTYLECarozzi understands that obesity is the result of multi-factor issues and that, therefore, to address it as a society we need to become responsible for all the factors that have an impact. Seventy-five percent (75%) of the Chilean population is overweight, is obese o suffer from morbid obesity. One reason is the sedentary lifestyle and lack of physical activity.

Under the umbrella of this programme that invites people to do five 30 minutes exercise session, based on a WhO guidelines, we developed different sports activities, such as family races, organized for communities close to our production plants in Teno, Nos and Parral.

We have various programmes to invite people to join the movement and fight sedentary lifestyle.

Over ten years ago, we launched the Vivo trade mark, and it is now found in 80% of Chilean homes, in twelve categories. We offer products with the best nutrition indicators, including seeds, dried fruit, less sugar, less sodium -among other characteristics appreciated by the consumers. We also manufacture gluten free foods.

We promote healthy nutrition and healthy living through three

guidelines:

Working conditions and well-being

Fostering healthy eating habits

Commitment to nutritional quality

CAROZZIOLYMPICS

People2 500participating in community races in Nos and Teno

20 years of sports party in Concon, Valparaiso

10 competing disciplines

21 000 m2

of sports infrastructure for Carozzi’s business associates

2 000 sports enthusiasts participated

HE

AL

TH

Y

LI

FE

ST

YL

E

In 2018 we submitted a labelling proposal that provides information about the suitable servings to take.

89% of the surveyed people agree to change the current labels2018 Cadem survey to 1 000 people nationwide

people watched our 6 information

videos

700thousand

PROGRaMME

We are convinced that education is key to fight obesity and that with more information, people will be able to make decisions.With this in mind, the let s Eat informed Programme seeks to provide information regarding essential nutrients (calories, sugar, sodium, saturated fat) in the foodstuffs, with interactive videos and consumer behaviour.

We have a team of health reps that give ongoing information to professionals in the nutritional health industry regarding gluten free products, as well as information obtained through the let s Eat informed Programme.

Our Let s Eat Informed programme also includes Nutrition and lifestyle programs aimed at higher education students of health and nutrition related careers, with whom we shared our production processes from beginning to end, including laboratories.

This community-oriented initiative seeks to teach children the concept of energy balance, the importance of eating in adequate portions and ensuring the expenditure of energy through physical activity.In 2018, we visited educational es-tablishments and municipal gyms. The children could experience the processes of making cereal bars through virtual reality lenses.

LET’S EAT INFORMED

n

WORKING WITH THE HEALTH SECTOR

ENERGY TOUR

HOuRS in tOtal

dedicated to the visits

nutRitiOn StuDEntS contacted

33

1 259

a Day WitH nutRitiOn StuDEntS

of sugarper bar

of sugarper bottle

grams

grams

Cereal bar

,

,

Sustainablevalue chain

We are careful with our impacts, from raw material supplies up to the final consumer satisfaction. The Grow together Programme is key for the

development of our major suppliers: the farmers.

SUSTAINABLE VALUE CHAIN PILLAR Carozzi becomes accountable through this pillar for the positive and negative impacts we have as a company in our value chain that are relevant because of the size of our business.

places for finished product

pallets

110 000

Distribution Process

Transformation process

Marketing and sales

3 185agricultural

1 400supplies

3 000services

70 000hectares planted or sown

(R + D + I)

of the income originate from

products launchedduring the last

36 months

10%

a yearproduction

in Chile

660 000ton

warehouse for our supplies

40 000 m2

cereals storagecapacity

260 000ton people were

contacteddirectly

+550 000of our brands belong to the Hall of Fame

2distribution centres in

Chile – Peru

11customers

served directly or indirectly

70 000

Finished product storage

process

Our consumersprefer us in first andsecond place in every

category where we participate

Supplies andraw materials

Storingprocess of

supplies and cereals

Innovation

Quality Assurance

Security

units of our productsare consumed

daily byChileans

6,5million

SUPP

LIER

S

CUSTO

ME

RS

OUR OPTIMUS PROJECT

Progressive digitalisation and automation of processes in plants and distribution centres.

Strategically, it is one of our main projects in recent years and represents a leap into the era of digital change, placing Carozzi at the forefront of logistics and distribution technology in Latin America.

The modern Nos DC receives, stores and distributes the products from our 17

production plants throughout Chile. The second phase, consisting of a

high-density automated centre and self-supporting racks is scheduled to be put into operation during the second half of 2019 there by increasing the number of storage pallet positions by 30 000.

SU

ST

AI

NA

BL

E

VA

LU

E

CH

AI

NRESPOnSiblE ManaGEMEnt OF tHE SuPPly anD DiStRibutiOn CHain

n n

PROGRaMME

f Compete in the global market

f To Increase competitiveness and profitability

f Increase efficiency and safety

f Lower costs

Moreover, to address climate change challenges, the following initiatives have been developed:

f Mechanised farming

f Seeds varieties

f Training regarding climate change in agriculture

f Rice growing innovation

We strive to be next to the farmer in the process of becoming technical and to help him to:

GROW TOGETHER

The organic market is growing two digits worldwide thanks to a recent demand for natural products free of pesticides. In Carozzi we started to work in the transition from fields to organic farming, creating contracts for the future with its owners. This implies support and presence during the three years of certification period.

To ensure that our products meet international standards, our plants go through two kinds of quality and food safety certifications. In the agro-industrial business, we have audits done by our clients, who validate us as suppliers.

8Pet FoodConfectionery

15Foodstu�

14

AUDITS

SaFEGuaRDinG PRiCE-Quality balanCE

84

50%

hectares of organic crops in 2018

supply of organicapples in 2018

ORGaniC FaRMinG

Guidelines

Fostering sustainable agriculture

Price-quality balance safeguarding

Development of critical service suppliers

Customer development

Responsible management of supply chain

Customer and consumer satisfaction and grievance

management 7 of our plants were granted this certification

3 of our plants received this certification

Care forthe environment

Through our Positive Impact Programme, we establish strategies and initiatives to manage the external factors that our production process

generates in the environment.

We currently do not have a formal policy of water extraction and consumption; although we have actions in place to look after it in compliance with the legislation in force, and respecting how others use this resource. In four of our plants is where we pay special attention, as we have groundwater and we extract through wells we own.

We work the pillar with three guidelines

Production process’ environmental

impact management

Product environmental

impacts management

Community relations

HYDRIC RESOURCE ENVIRONMENTAL IMPACT MANAGEMENT

Numberof meters

Number of wellswith meters

Waterextractionmeters

23 5

3 5PlantNos Teno

In 2015 we started a working plan with the purpose of improving our consumption and water extraction management.

We have three green points (Nos, Reñaca and Lontué), infrastructure that allows us to manage our waste, to segregate and value it.

Wastegenerating

unit

d Plantd Distribution Center (DC)d Warehoused Cafeteriasd Facilities

d Plasticsd Cardboardd Metalsd Production wasted Pallets

d Slurriesd Timber

SEREMIauthorizedcompanies

Green point

Hazardous Not-hazardous

Sanitarylandfill

Withappraisal

Withoutappraisal

Recoveringplants

SanitaryLandfill

+$ b$

Selection andconditioning

d Can be assimilated to domesticd Condemned

In 2018, in Carozzi we adhered to the Clean Production Agreement (CPA) promoted by the Agency for Sustainability and Climate Change, Acción Empresa, and the Ministry of the Environment, which convened about 30 companies to achieve the goal of Zero Waste to elimination.

87% of the waste generated in 2018 was recovered

Ca

re

f

or

T

he

e

nv

ir

on

me

nT

PROGRAMME

POSITIVE IMPACT

Positive Impact programme addresses the management of important aspects of our productive chain, as are the external factors that we generate in the preparation of food and the waste generated.

ENVIRONMENTAL IMPACTS

MANAGEMENT OF THE

PRODUCT PROCESS

f Energy matrix

f Water resource

ENVIRONMENTAL IMPACTS

MANAGEMENT OF THE PRODUCT

f Waste management

f Green spots in plants

f Carozzi recycles

n n

Through a series of measures, we seek to take care of our natural resources and promote the use of cleaner energies, working on measures to control energy consumption, efficiency management and the use of biomass, which increased by 11% since 2016.

0

50

100

0

400

800

0

500 000

1 000 000

0

50

100

150

Electric energy (GWH per year)

Oil n° 6 (MMBTU per year)

Natural Gas (MMBTU per year)

Biomass (MMBTU per year)

Agro-industrial businessChile Peru

98

,7

10

4,0

1

07,3

37,

8

38,

16

45,

78

45

078

63

262

29 3

12,9

1 0

93 4

72

4

72 2

58

2

17 2

94

108,

406

128,

305

119,

850

0 0 0

374

291

40

9 74

8

440

299

179

125

214

981

239

970

0

432

733

71

3 23

7

38,

8

35,

1

35,4

2016 2017 2018 2016 2017 2018

2016 2017 2018 2016 2017 2018

Reduction of

Investment of

78%

USD 2,9 millions in project reduction of emissions

use of oil fuel n° 6 with respect to 2016

CHANGE OFENERGETIC MATRIXC o n T r i b u T i n g T o r e C y C l i n g

POSITIVEIMPACT

using the best ecological labelling experience in the world, we created a recycling label with information about

the material, the type of packaging component, and the final disposal for our waste. The goal is to provide

consumers with more and better information on how our packaging should be correctly disposed of for recycling

MATERIAL

N

PACKAGING

PRE-RECYCLING GUIDE

RECYCLE

PP PET

5 1

PACKAGING TRAY

EMPTYANDCLEAN

RECYCLE RECYCLE

at Carozzi we analyse and review the different aspects of all our operations based on the impact they have on the environment

and on neighbouring communities. We establish strategies and initiatives to connect with our stakeholders and manage the

environmental external factors that our productive process has along the value chain.