60 Integrated Report 2017

CAGR 7,4%* *Compound Annual Growth Rate

Price

Volume

CAGR 7,5%

The sales in Colombia represent

4,6%-1,3%

CAGR 4,1%

2016 20152017

2016 20152017

2016 20152017

2016 20152017

of Grupo Nutresa’s total sales. of the total business unit sales.

The international sales represent

of the total business unit sales.

Growth percentage

Margin

CAGR 28,9%

14,1%

Represents

of the total business unit sales.

Growth percentage

0000%

The Chocolates Business represents

9,7%2,1%

11,4%

-1,3%

10,3% 9,8%

18,7%1.268

3,0%1.464

12,0%1.421 796919 891

184 174 170

2063,7%124

40,8%147

18,0%

16,8% 62,8% 37,2%

19,8%

Chocolates Nutresa

• We increased the sales in the chocolate confectionery with products of greater value added, which allowed us to get a greater market share.

• We made our Business' operations more profitable with a better portfolio, productivity adjustments, market optimization, expenditure efficiency and rationalization of the promotional activity.• We achieved a significant growth in

the snacks and cereal bars category in the international markets, and we had an increase in the exports dynamics of industrial products, especially to the United States.

• We strengthened our leadership among customers and consumers by means of innovation strategies.

• We achieved an excellent organizational climate level, consolidating the organizational culture and the employment relations with warmth, closeness and productivity.

• We consolidated the programs focused on productive alliances and cooperation with the participants from the cocoa chain.

• We completed the biggest installation of solar panels at a food production plant in Colombia, using the roofs of our Rionegro factory with the purpose of generating clean energy to cover 15% of our consumption.

Jorge Eusebio Arango López President until 2017[Part of Nutresa since 1991]

62 years old

Juan Fernando Castañeda Prada President from 2018[Part of Nutresa since 2011]

50 years old

RELEVANT ASPECTS FROM 2017

Total Sales

(Direct employees,indirect employeesand apprentices)

Sales in ColombiaCOP billionS A L E S

E B I T D A E M P L OY E E S

3.91037,0% 63,0%(Direct employees and apprentices)

Local International

56,6% 43,4%

COP billion

International SalesUSD million

61

OUTLOOK FOR 2018• We will continue to boost our growth

in the chocolate drinks category with product innovation, preparation convenience, health and nutrition.

• The value proposition of chocolate confectionery will be maximized in order to increase the consumption per capita and promote the development of new segments with products based on innovation and technological differentiation.

• We intend to implement a widespread growth strategy for the snacking category based on chocolate, cereal and nuts bars, and prioritizing the international market penetration.

• The portfolio development will be sped up with nutritional standards that address the nutrition, functionality and health trends.

• We will boost the growth of the industrial products category under the Cordillera brand in the strategic region, prioritizing the United States, with a value proposition focused on Latin-origin cocoa and commitment to sustainability.

• We will keep on reinforcing the cocoa production sustainability programs and their projection as a support strategy in the Colombian post-conflict stage.

Chocolate confectionery

Chocolate drinks

Snacks Milk modifiers

Variation

M A I N C AT E G O R I E S

D I R E C T P R E S E N C E I N 1 2 C O U N T R I E S

MexicoSales: 8,3%Production facilities: 1

Central AmericaSales: 7,6%Production facilities: 1

ColombiaSales: 62,8%Production facilities: 2

PeruSales: 11,5%Production facilities: 1

0,9% 0,2% -1,0% -0,7%69,4% 63,6% 55,0% 23,6%

(includes direct labor, IMCs and other raw materials)

25,8%

5,3% 11,3%

13,5%Packagingmaterial

39,1%

Milk5,0%

Sugar

Other

Oils and fats

Cocoa

Chocolateconfectionery

Chocolatedrinks

Milk modifiers

Other

23,4%

40,4%

19,2%

8,8%

8,2%

Snacks

Market share in Colombia

R AW M AT E R I A L S A N D O T H E R(Production cost %)

(Total sales %)

Performance of the Business Units

Other countriesSales: 9,8%

Presence of our main brands [GRI 102-2]

Brands with sales over

USD 50 Million

Production facilities