• On behalf of Valorem Group, we cordially welcome all our stakeholders and invite them to know our sustainability report 2017. Carlos Arturo Londoño, President of VALOREM, will tell us about some of the achievements made and also the challenges in this area for the group.

• Mr. Londoño, thank you for speaking with us.

• Hi Alejandra, how are you?

• I’m fine, thank you. Mr. Londoño, let’s tell our stakeholders about the achievements made during 2017, which is about to end, in terms of the corporate sustainability model.

• I’ll be glad to do it. Valorem drew up a road map with specific actions for the companies in each one of the five material issues of the corporate sustainability model. In 2017, we achieved significant progress on the implementation of these requirements with a high percentage of compliance with the closing of gaps. Management of the five material issues of the model has made it possible to align, focus and appropriate a common language among the companies, even though they are located in different sectors of the economy. I invite you to know, through this report, about the achievements made in each material issue and about some of the initiatives of our companies.

• Well, the results are very good, but what are the challenges now, that is, where does the road lead us to?

• The main challenge we have is to make our subsidiaries the benchmarks of sustainable management in their sectors, spreading best practices in their value chain to have a multiplier effect.

• Mr. Londoño, we’d just like to invite all of you to get further details on the progress of the sustainability model of Valorem and its subsidiaries. Please take a tour of this 2017 sustainability report.

• We welcome, Mr. Carlos Arturo Londoño, President of Valorem Group. Mr. Londoño, thank you for speaking with us.

• Hello Alejandra, how are you?

• Mr. Londoño, let’s tell our stakeholders how the Generating Value for our Shareholders issue is incorporated into Valorem management.

• Generating value involves making consistent financial and portfolio management decisions, promoting the highest standards of corporate governance and business ethics, risk mitigation practices and construction of reputation capital, through responsible portfolio management and proper relationship with stakeholders. In 2017, we made some progress on the creation of a strategic risk management system, which allows mapping risks in the formulation and performance of the Valorem strategy; likewise, we made some progress on carrying out a reputation study, from which action plans will derive to strengthen the relationship and positioning with the various stakeholders.

• Thank you very much, Mr. Londoño.

• Thank you!

• And to talk about Corporate Governance and Business Ethics, we welcome Mr. Carlos Rave, Vice-President of Valorem. Carlos, it’s a pleasure talking with you.

• Hi Alejandra.

• OK, Carlos, let’s explain to our stakeholders the meaning of corporate governance and business ethics in Valorem.

• For us, a corporate governance system is a set of rules and procedures aimed at creating value for the company and for all the stakeholders of the company. We built this proposal based on something very simple, our principles: leadership, rectitude and efficiency; based on that, we designed some guidelines with three components; they are: strategic direction and the role of the Board of Directors, the rights of shareholders and the identification of conflicts of interest. In valorem, we are certain that the essence of corporate governance is business ethics, as long as business ethics is the materialization of our integrity, honesty, transparency and responsibility; it is as simple as saying that all our organizational culture, governing all the actions in which we may be involved, is based on these principles.

• Well, that picture is clear enough, but in terms of corporate governance and business ethics, there are also challenges involved, what are the challenges identified by Valorem?

• While Valorem meets all the requirements required by law in this area, the permanent challenge is the search for opportunities to improve our corporate governance system. We do this through training programs, programs for dissemination of policies, for monitoring two-way compliance with policies, that is, compliance towards the companies and the companies’ compliance towards us, a permanent feedback to all the stakeholders of the group, but without losing sight of the competitive environment and the challenges of each of the companies, which are so different from each other.

• Mr. Carlos Ravel, Legal Vice-President of Valorem Group, thank you very much.

• Thank you, Alejandra!

• I welcome Mr. Sergio Uribe, VP Corporate Affairs of Valorem Group. Mr. Uribe, thank you for speaking with us.

• Thank you very much for being with us, Alejandra.

• Mr. Uribe, with great pleasure, I want to ask you about the achievements made in terms of development and wellbeing of corporate talent for the group in 2017.

• Well, Alejandra this year’s most important project is the definition of a succession policy and the design of its implementation plan both in Valorem and in all subsidiaries. This project is critical for the sustainability of the group, the main purpose of the project is to ensure the talent required for the future by Valorem Group to achieve the business purposes. Thus, we encourage the identification, selection and development of potential applicants to hold medium and long term critical positions of the organization.

• Mr. Uribe, it is a position (Vice-President) with many edges. What are other remarkable achievements made in terms of welfare and development of talent?

• Well, that’s a very interesting question, we believe that the main pillars of people management are performance evaluations and development, with a very active participation of leaders. In the performance management system, we optimized the methodology for aligning the management team goals with other areas, and in addition, we incorporated tools for the monitoring, control and capture of results. In terms of development, which is very important, this year the Valorem Group’s competency model and the guide to put it into practice were implemented, tests were applied up to the coordinators’ rank, and work is being done on individual development plans with the participation and support of the leaders. Here, we believe that leaders should be at the service of the teams and this is an essential element for the promise of value to all our talent.

• Mr. Uribe, thank you very much.

• Thank you for being here!

• And we welcome Mr. Luis Felipe Arrubla, Vice-President of Planning and Development of New Businesses of Valorem Group. Mr. Arrubla, thank you for speaking with us.

• Alejandra, it’s a pleasure to be here with you.

• Well, Mr. Arrubla, first, let’s make an approach, if you like, to the concept of responsible investment, what is it?

• Responsible investment is going beyond an economic return. Responsible investment is taking into account social and environmental responsibility, and seeking a balance between these three factors: economic, social and environmental factors, implementing the best corporate governance practices. That is responsible investment for us.

• Well, now that the concept of responsible investment is clear, let’s talk about how this responsible investment is managed within the group.

• Well, we have an investment policy from Valorem, and in such policy, we have explicitly stated that the three factors should be analyzed and not only the economic factor; likewise, we have replicated this policy in the companies; in Valorem, we apply it to acquisitions of new companies and expect that, and support, in the development of new projects, the operating companies take into account the above mentioned factors.

• In this regard, Mr. Arrubla, what happens when you are analyzing an investment and realize that this company or this investment fails to comply with these three factors, do you reject the opportunity, decline…?

• Very interesting, because obviously, as it would not bring any value to the shareholders and the company, the easiest way would be to step back and decline the investment. We believe that we add by taking the company and bringing it into the best standards; we are always comparing how the company can be in our hands, how they can improve practices, how they can improve the situation for employees, how they can improve in environmental issues for each of these companies, and obviously, without losing the economic focus. All this is in favor of creating sustainable value. Consequently, we do not decline in full, but we take strength to bring it into a better standard.

• Mr. Arrubla, thank you very much.

• Thank you!

• Sustainable use of natural resources are part of one of the main lines within Valorem; as a matter of fact, Mr. Alejandro Arboleda, Financial and Administrative Vice President, is here to tell us about that. Alejandro, thank you for being with us.

• Thank you, Alejandra.

• Well, let’s talk about what the management focus was during 2017 in this area.

• Of course, Alejandra, during 2017, Valorem focused its efforts relating to the protection and proper use of resources on making its first carbon footprint measurement. Although Valorem obtained in the past and maintains its LEED Platinum Certification for the facilities, having made this first carbon footprint measurement allows us to identify the main impacts and define review goals and mitigation plans associated with those. Likewise, it allows establishing strategies to strengthen the culture of protection and proper use of resources in all people of the organization, seeking to become multipliers in their various environments.

• Thank you, Mr. Arboleda.

• Thank you!

• Talent management system KPIs and strategic risks performance indicators were implemented

• Valorem’s critical operation processes, policies guidelines and procedures were collected and organized in a single document

• Valorem hired a corporate reputation study with Invamer to identify opportunities for stakeholder engagement and communication

• Valorem created its strategic risk management system which allows mapping risks in the formulation and performance of the strategy

• Two Sustainability Committee meetings were held to follow up on the 2017 plan and share best practices

• The environmental sub-committee was structured with representation of all companies

• Semi-annual meetings were held with sustainability and material issues leaders of the companies to monitor performance on the sustainability strategy

• Sustainability Model of Koba-D1 was structured

• In accordance with best practices, Valorem is preparing a policies’ application guideline for Group companies

• A protocol is being prepared for Valorem’s Audit Committee to monitor the prioritized topics

• Valorem is reviewing current practices to identify improvement opportunities

• Supply chain procedures are being analyzed in each company to identify best practices

• Valorem is evaluating alternatives to share supplier information among the Group

• NO Se implementaron KPIs para la ejecución del proyecto de riesgos y el sistema de gestión del talento.

• Se elaboró un documento que identifica los procesos críticos de la operación de Valorem y relaciona las políticas, lineamientos y procedimientos existentes

• Se contrató un estudio de reputación del cual se derivarán planes de acción para fortalecer el relacionamiento y posicionamiento con los diferentes grupos de interés

• Valorem construyó su sistema de gestión de riesgos estratégicos que permite mapear riesgos en la formulación y ejecución de la estrategia

• Se realizaron dos sesiones del Comité de Sostenibilidad para hacer seguimiento al plan de cierre de brechas y compartir mejores prácticas

• Se estructuró el subcomité ambiental con representación de todas las compañías del grupo

• Se realizaron reuniones semestrales con los líderes de sostenibilidad y líderes de asuntos materiales de las compañías para hacer seguimiento a la ejecución de la estrategia de sostenibilidad

• Se estructuró el modelo de sostenibilidad de Koba-D1

• One hundred percent (100%) of professional level employees is part of the performance management system (Success Factors)

• One hundred percent (100%) of professional level employees has taken tests of the Development Center and has the corresponding development plan

• Critical positions in Valorem that must have a succession plan were defined

• A succession policy for critical positions was designed

• A methodological guide was structured to implement the succession policy and design the succession plans for the identified critical positions

• Emotional salary program has been successfully implemented

• New elements will be proposed to be included in the program

• The policy for higher studies and training was updated

• Pilot results of English courses were evaluated

• Position ranks that may apply for the vacancies were defined

• The application process is channeled through the Corporate Talent Management

• An internal wage parity study was conducted and no gender gaps were found

• The structuring of alliances for inclusion of people with disabilities was promoted at Group level

• Valorem included in its Investment Strategy Guidelines, Responsible Investment considerations

• Assessment tools for evaluation of corporate governance, social and environmental criteria (ESG) were developed

• Valorem measured its Carbon footprint to develop reduction, mitigation and awareness strategies

• Valorem incorporated sustainability guidelines in its purchase policy and supplier contracting process

• Critical and strategic suppliers were identified to include the evaluation process

• Based on such evaluation, action plans will be generated

• What were the social responsibility programs developed by Cine Colombia in 2017?

• Yes, primarily, we handle three fronts; the first one is ecological Cineco, where we’ve developed various environmental programs; it is noteworthy to mention one of them, every year, we are recycling about 210 tons of waste produced by the food division; the second one is cultural Cineco, where we are participating in and sponsoring various cultural events in the country; and the third one is social Cineco, providing assistance to the most needy children and young people in the country, where more than 1 million children in these conditions have already received help in recent years.

• What is the RUTA 90 program?

• That is a program that we have implemented on the occasion of the 90th anniversary of Cine Colombia, consisting of two trucks adapted with state-of-the-art technology, the latest in projection technology, the latest in sound technology, and those two trucks are traveling all over the national territory, reaching the poorest routes or municipalities in Colombia. In Colombia, only 50 municipalities have access to cinema and this year, we plan to impact 90 additional municipalities, about 200,000 people; even some locations are so remote and it’s so difficult to get there that we have made an alliance with the National Army, and have been able to reach some of these municipalities.

• The three business units (Distribution, Exhibition and Meals) and the theaters have KPIs associated with the business continuity plan

• In 2017, a brand study was contracted and it showed 44% predisposition and 95% top of mind

• The risk´s map is updated every year and a permanent control is maintained

• Continuous measurements of risk vulnerability in theaters are made by the Comptroller’s Office

• In 2017, as part of the 90-year celebration of Cine Colombia, several initiatives were implemented within the framework of social responsibility programs; worth mentioning is Ruta 90, which has brought mobile cinema to the most remote municipalities in Colombia

• Cine Colombia participated in Valorem’s Sustainability Committee and made progress in the implementation plan 2017

• Cine Colombia has implemented the applicable corporate governance practices

• The information disclosure manual is in the process of the Board of Directors approval

• The ethics line management was centralized in the Compliance Officer

• From 2018, Cine Colombia will include in its annual report, a chapter on corporate governance

• Guidelines for new projects are being incorporated

• One hundred percent (100%) of target employees is on the performance measurement platform, Success Factors

• Has been implemented for the units of: Distribution, Exhibition, Meals and for the Management of Theaters

• Career plans are available for the operation personnel

• Succession plans have not yet been designed

• There are welfare programs that are defined annually, according to the budget planning

• In 2017, for the celebration of the 90th anniversary, additional benefits were granted to employees

• Cine Colombia has an education assistance program

• In addition, in 2017, an English course program was implemented for 58 employees

• There are job descriptions of Managers and evaluation of managerial staff

• The publication of and application for vacancies are coordinated with Valorem Corporate Talent Management

• A parity study was conducted by Cine Colombia showing that there is a gender parity

• 62% of employees are women and 38% are men

• Alternatives for inclusion programs are being analyzed with Valorem

• Cine Colombia has a significant first-job recruitment and is working on initiatives to reduce turnover rates of these employees

• Cine Colombia did not measure its carbon footprint but has implemented initiatives to reduce natural resources use:
  -   Energy: Changing traditional lighting into LED and automated control of air conditioning
  -  Water: Water savers, waterless urinals and low-flow toilets

• Cine Colombia evaluates its critical and strategic suppliers. However, sustainability criteria has not yet been incorporated into such evaluations

• Hello, we’re here in the newsroom of El Espectador. Mr. Fidel Cano, director of the newspaper, is here with us to explain… Fidel, how did El Espectador contribute to the reconciliation of the country?

• Well, I think the axis has been around our project “Colombia 20 – 20,” which is a special project created, let’s say, to mix journalism with some pedagogy, and very much focused on the territories, and it was a way to get closer to what was happening in the country while there, in Havana, let’s say, the peace agreement was being negotiated and executed, [to know] how this reconciliation process was taking place in the territories in a tangible way, and in fact, it has been very important to journalism not just to stay in the political fight, let’s say, but to really get close to people and to tell how there are lots of examples in this country of people who have worked for the reconciliation.

• This is, undoubtedly, the most important issue in the country facing the 21st century, and the journalistic and pedagogical project mentioned by Fidel has already been awarded for the work performed, “Colombia 20 – 20.” But the next question is, what should be done so that such an important topic can be reached by the youngest and can be understood by the new audiences? How is that told?

• Well, we have been committed to that all this year and during this last time, we have been committed to trying to reach the new audiences, [finding out] how we can exploit that 130-year journalism of El Espectador, which has been transparent, independent, brave; how we can reach not only through texts, not only through an editorial into which new audiences might be afraid to get, but by using the same language they use today to handle the information and reach them, but with serious information, let’s say, that contributes to a better country. Obviously, perhaps the most well-known hits are the spears, and so are the gender equality, and well, many others…, documentaries…, in summary, we are trying to bring this language to the new public, but of course, with the seriousness of El Espectador’s journalism.

• Levels 1 and 2 of the organization have KPIs

• There are documented contingency plans for teleinformatics and production

• The risk mitigation plan formulated is being implemented

• Comunican actively participates Valorem’s Sustainability Committee and sub-committees of material issues

• El Espectador has made progress in the proposed implementation plan

• The following instruments are already available: (i) regulations of the audit committee operation; (ii) transactions with related parties policy; (iii) conduct code; and (iv) anti-corruption policy

• Comunican is working with Valorem on the definition of applicable practices for: (i) information disclosure manual; (ii) money laundering and terrorism financing policy ; and (iii) conditioned regulations of the Board of Directors and the Assembly of Shareholders

• LA/FT verification is being applied (It includes OFAC)

• The annual report submitted by the administration and the Board of Directors to the General Assembly includes a special chapter on corporate governance

•As part of the performance management system, a new assessment of competencies was carried out for levels 1, 2 and 3 of the organization, and the results will be compared with the last measurement made in 2015

• Target population is being identified to define career plans

• There are emotional salary and welfare policies that will be submitted for the approval of the Board

• Position ranks that may apply for the available vacancies are being defined at Group level

• A parity study was conducted showing that there are no material gender differences

• There are 192 women and 162 men included in the total employee population

• El Espectador seeks to promote new lines of business that are profitable and have a positive impact at the environmental and/social level

• The Relational Marketing includes among its goals the promotion of these businesses (e.g., BIBO, Colombia 2020 and Profesión Líder)

• In 2017, the first Carbon Footprint measurement was made

• Based on the results, reduction and mitigation plans will be developed

• El Espectador and Cromos are in the process of identifying sustainability criteria for the supplier evaluation

• Likewise, it is working on the identification of critical and strategic suppliers to be included in the evaluation

• What were the main achievements of Refocosta in relation to its sustainability strategy in 2017?

• In terms of sustainability, Refocosta may be considered a per se sustainable company, due to the fact that we own some forests that permanently capture CO2. In addition to this, we have the FSC certification, which demonstrates our good performance in these aspects; however, with all the knowledge we have, we believe that we can be even more ambitious and want to take us to the next level, which would be bioenergy production.

• What is bioenergy production?

• Bioenergy is, in this case, taking a forest that has a closed cycle, meaning that trees grow and they are cut; they grow again and they are cut again, they are taken to a clean, renewable energy production plant, which is currently protected by Law 1715 in Colombia, which promotes this type of technology. But here, we could talk a little beyond renewable energy, we could talk about sustainable energy, since this has a huge impact on Colombian rurality; here we are generating employment, from the most simple, the most basic jobs, to the most sophisticated positions; that is, people are required in the nursery and to run the power plant, that's why we talk about sustainability. Furthermore, these are long-term projects, designed for 20 years and more, which would generate a very important impacts on regions, giving them the possibility of new opportunities, which is something that Colombia definitely needs.

• Refocosta has defined indicators associated with the sustainability model and the individual performance goals registered in Success Factors

• Based on the risk´s map update, Refocosta is reviewing identified critical processes

• Stakeholder (customers, employees and communities) perception results were consolidated

• Strategies for stakeholder engagement will be defined, according to the results

• One hundred percent (100%) of the risk mitigation plan was implemented

• Sustainability model progress was monitored by the Refocosta’s Executive Committee

• Refocosta actively participated in Valorem’s sub-committees of material issues

• Refocosta’s Board of Directors approved the ethics code, the regulations of the Audit Committee and the Good Governance code

• Refocosta has disseminated the ethics guidelines and has shared the SARLAFT policy

• The regulations of the Audit Committee were approved by Refocosta’s Board of Directors

• Refocosta has an audit process for transactions between related parties

• Refocosta has an Ethics Line and a Compliance Officer

• Refocosta implements the Risk Management System for money laundering and terrorism financing (SARLAFT)

• From 2018, Refocosta will include in its annual management report, a chapter on its corporate governance practices

• Refocosta maintains 100% of its target employees on the performance management platform, Success Factors

• One hundred percent (100%) of the target employees has development plans

• In 2017, Refocosta identified an additional group to be included in the Development Center

• Building career plans for 100% of the target population is a challenge for Refocosta

• Refocosta identified 12 critical positions to develop the succession plan

• Refocosta is working to consolidate and formalize a welfare program for the entire company

• Likewise, it is analyzing the emotional salary options that best suit each of the operations

• Requirements to apply for the available group-level vacancies were defined

• The process is coordinated with Valorem’s Corporate Talent Manager

• Refocosta conducted a wage parity study that showed gender equality

• Refocosta is exploring with Valorem, alternatives for inclusion programs

• Refocosta is in the process of building an apprentice program seeking greater stability for people who are joining the company and connect them with other companies of the Group

• Refocosta implemented the methodology of growth protocols proposed by Valorem for the evaluation of sustainability elements in investment projects in CapEx, under which, in 2017, four projects were submitted

• Refocosta calculated GHG emissions with the following scope:

•  - Administration offices - Bogotá

•  - Point of sale “Boyacá Real” - Bogotá

•  - Warehouse, Funza – Cundinamarca

•  - Operating Unit, Villanueva – Casanare

•  - Operating Unit, La Gloria – Magdalena

• Measurement with 2016 data showed carbon footprint of equivalent 638 tons of CO2

• From these results, Refocosta will develop reduction and mitigation plans

• Refocosta defined social and environmental criteria for the supplier evaluation

• Refocosta will map its critical and strategic suppliers to be included in the evaluation process

• What were the sustainability achievements of Suppla during 2017?

• This year our sustainability strategy focused on two main fronts, one of them was our people, and the second front was on infrastructure. On the front of our people, we’ve worked hard to strengthen the self-care culture, which allowed us to reduce operation incidents by 45%. On the infrastructure front, we made important investments, in order to reduce our consumption of water, energy and paper. These projects focused on changing lights of hydraulic systems, on the operations, and on greater control of the printing production of the different operations. This not only allowed a reduction in the impact we have on the environment, but also had an economic benefit for the company, but those resources were reinvested in our sustainability project. All this work is recognized by our customer and employees, as reflected in our satisfaction measurements, [showing] how employees receive this with satisfaction and how our employees recognize that we are a sustainable company, a company for which they want to work for very long.

• Suppla has KPIs associated with goals of “Profitability” and “Development and Welfare of Talent.” Strategic indicators focused on the measurement of environmental and risk management aspects are being strengthened

• Suppla developed a pilot of business continuity management methodologies in two representative distribution center operations.The critical processes were identified and initiatives were defined to mitigate disruptive events. This pilot was supported by the consultancy of CRM (Cargo Risk Management,) reaching the testing and simulation phase in one of the operations

• Based on lessons learned in the pilot and the application of world-class standards, the documents and business continuity management system were updated

• Customers and employees were defined as public of interest. Annual customer satisfaction and work environment surveys were developed

• Based on the survey results, strategies will be developed

• One hundred percent (100%) of the processes defined in the scope of the management model were updated

• The risk management strategy exercise was completed

• Applying an abbreviated methodology was provided in critical projects performance, that allows identify and analyze risks, while defining mitigation plans

• Every six months, Suppla monitored the progress made in the gap closure plan of the Corporate Sustainability Model, at meetings with the President

• Suppla’s sustainability team participated in Valorem’s Sustainability Committee meetings, sub-committees of material issues and events led by the Government related to sustainability

• Suppla has followed corporate governance practices in accordance with Valorem guidelines

• In 2017, the regulations of the Board of Directors and the Assembly of Shareholders were approved

• Suppla included in 2017 management report a chapter of sustainability containing everything related to corporate governance

• Suppla expanded the base of the target employees for the performance management system, Success Factors. In 2017, 400 additional users were included

• The design of career paths is managed through Business Partners located in the operations and management areas

• Work is being done to identify critical positions to develop succession plans

• Emotional salary initiatives were defined, and will be implemented in 2018

• Position ranks that may apply for the available group-level vacancies were defined

• Information on the group-level vacancies is shared with the Vice Presidents of the areas in each company and its teams

• A gender equality policy was developed. An analysis of the related indicators was made, finding gender parity in participation and salaries for all ranks

• In 2017, it was not possible to work on the development of this program. This initiative will be evaluated in the future

• For CapEx investment processes and Project evaluations, eco-friendly assets are being purchased. e.g., refrigeration equipment using environmental refrigerants

• Suppla had its first internal carbon footprint measurement with limited scope

• Based on the results, some strategies will be developed to obtain greater efficiency in the use of natural resources

• Indicators were established for water and energy consumption, and waste generation. These indicators are permanently monitored

• Additional requirements are established, such as environmental licenses or wooden certificates in the supplier registration process

• Suppliers have been classified to verify environmental conditions

• All suppliers must comply with at least 93% of the environmental requirements; otherwise, they cannot be hired

• In Caracol Televisión, the meaning of corporate responsibility is a way of doing business to create economic, social and environmental value, and through that path, build long-term relationships with our stakeholders. In fact, to talk about this topic, I have the pleasure to welcome José María Reyes, Corporate Responsibility Manager; José María, how are you?

• Thank you, Alejandra, how are you?

• I’m fine, thank you, it’s a pleasure to have you here, so that we can tell our stakeholders how Caracol Televisión has progressed in its commitment to building and spreading such a positive cultural footprint.

• Well, look, we put at the disposal of the company our ability to disseminate contents, in order to build and spread a positive cultural footprint that contributes to enhance the exercise of the population…

• Yes…

• …to build the value of tolerance and to promote sustainable development. Additional to this, we have a framework that offers an action scenario to maintain and continuously strengthen the highest standards in the creation and responsible production of our contents. We also promote civic coexistence, where the priority for community life is peace, understood as the absence of violence, acceptance of differences and respect; we have focused on the fight against gender violence; furthermore, we are committed to continuing being leaders of the communications media sector in Colombia.

• We are definitely committed, José María; in fact, what is the contribution of Caracol Television to environmental issues and how is it materialized?

• Look, let me tell you, we encourage lifestyles with the environment, for which we are oriented towards the best practices, the green logistics in production and the promotion of the environmental culture; we efficiently use resources and materials, measure our carbon footprint, manage waste and promote the environmental culture among employees and their families; every year, we grant an environmental protection award; in its fourth version, we recognized and rewarded successful experiences developed by private companies and communities organized in the country to reduce their emissions and face the impacts of the climate change; we launch campaigns with partners such as TNC and Conservation International, we extend our commitment to the value chain, in particular, to our suppliers, with whom we seek to work together to achieve innovative and eco-friendly solutions.

• Well, José María, very good results. Thank you for sharing this information with us and with our stakeholders.

• Thank you very much.

• My pleasure.

• Likewise.

• Caracol Televisión has included KPIs associated with the Corporate Sustainability Model

• Caracol Televisión has process recovery plans for Medellín, Cali and Barranquilla

• It is in the process of developing these plans for Bucaramanga and Cartagena

• Caracol Televisión conducted a reputation study with Invamer. Based on the results, action plans will be defined

• The reputation study included variables associated with Corporate Responsibility Model

• Caracol Televisión is in the process of building its risk matrix and creating a Risk Committee

• Caracol Televisión monitors the Corporate Sustainability Model indicators at its steering committee meetings

• Likewise, it actively participates in the meetings of Valorem’s Sustainability Committee and sub-committees of material issues

• Caracol Televisión has implemented the applicable good corporate governance practices

• In 2017, the regulations of the Board of Directors were approved

• Caracol Televisión has a verification service list of penalties, surveillance and regulatory bodies for suppliers

• Guidelines and criteria were defined to evaluate suppliers in terms of good governance and business ethics

• It is developing strategy, for supplier engagement to apply best practices. This process will be extended to customers in 2018

• One hundred percent (100%) of the target employees is on the performance management platform, Success Factors, and in the Development Center

•This is being applied to Commercial and Production units

• Positions that must have a succession plan were defined

• Career plans for 60% of the target population will be held 2018

• Caracol Televisión has emotional salary elements and a welfare policy

• Position profiles that may apply for the vacancies were defined at Group level

• The process is coordinated with the Corporate Talent Management of Valorem

• A wage parity study was conducted with a positive result for gender equality

• Inclusion programs are being developed with Valorem´s help

• Guidelines were defined to develop a recruitment and training program for first job

• Guidelines were defined for social, environmental and corporate governance aspects in the evaluation of new investment projects in CapEx

• The carbon footprint measurement process was carried out for 2015 and 2016

• Based on these reports, reduction and compensation action plans will be defined, including the planting of trees in a plot of land

• Social and environmental criteria were defined for the evaluation of suppliers

• As part of the development of the supplier strategy, priority will be given to critical and strategic suppliers to apply the evaluation

• What were the main sustainability achievements of Ditransa in 2017?

• - In Ditransa, in 2017, we worked on different sustainability areas. The first one has to do with the environment; for this purpose, we continued with the carbon footprint measurement and the improvement made to this was that we started making measurements per customer and which is made public for each of them through our website. Additionally, a program was implemented to make a significant reduction in energy, water and solid waste consumption; that's what has to do with the environment. And from the social point of view, the volunteer program continued with homes for the elderly and children. In addition, 100% of the staff enter the Social Factor evaluation, and finally, a salary measurement was made, finding complete parity between men and women.

• Ditransa included environmental, talent development and welfare indicators

• A risk matrix was built from which business continuity plans will be defined in 2018

• Ditransa has independent plans in relation to emergencies, sabotage, power cuts, cyberattacks, communication failures and transport issues

• Work will be done on the development of a single plan that encompasses all the related topics

• Ditransa processed the information collected from perception surveys of customers, transporters and employees

• Based on these results, strategies will be developed

• Based on the risk´s map, the respective mitigation plan will be defined in 2018

• Ditransa monitors Valorem’s Corporate Sustainability Model at the steering committees

•Likewise, it actively participates in the Valorem’s Sustainability Committee and sub-committees of material issues

• Ditransa has implemented the best applicable practices, in accordance with Valorem’s guidelines

• In 2017, the regulations of the Board of Directors, the Assembly and the Audit Committee were approved

• The regulations of the Internal Audit Committee was approved by the Board

• Ditransa has an internal process to protect transparency of events reported through the ethics line, maintaining information confidentiality

• Ditransa maintains 100% of its target employees on the Success Factors performance evaluation platform

• Development Center tests will be applied in 2018

• Although career plans have not been formally structured, Ditransa prioritizes internal applicants when a vacancy is opened

• Ten (10) promotions were made in 2017

• Succession plans for critical positions have not yet been developed

• The policy was documented including the emotional salary initiatives developed by the company

• Profiles that may be appropriate for the vacancies within the group are being updated

• Ditransa coordinates this process with Valorem’s Corporate Talent Manager

• A wage parity study was conducted finding equality for men and women

• Ditransa promotes inclusion of people with disabilities and seeks to scale the impact of this program

• Ditransa, within its internal promotion process, includes apprentices

• In 2017, six (6) apprentices were hired and were trained according to the position held

• Ditransa developed a guideline with sustainable investment criteria for future investments in CapEx

• In 2017, Ditransa implemented a monthly measurement of carbon footprint for each client

• Purchase of carbon credits, training for transporters and awareness campaigns on good driving practices will be promoted, as well as the inspection of the fleets with greater impact

• Critical sustainable issues were included in purchase procedures and supplier evaluation