Integrated Annual Report 2021

For Tiger Brands to perform, innovate and grow – no matter who they are, or where they add value – the "Future-Fit Tiger" employee must be consumer obsessed, an excellent executor, collaborative, agile, innovative, and resilient, centred by our purpose, values and winning behaviours.

Our people strategy is designed to enable execution of our business strategy and growth agenda by igniting a culture of consumer obsession, agility and a growth mindset that accelerates innovation. Through the three pillars of talent, leadership, and great place to work, we are building a diverse talent base, developing leadership capability and creating a work environment that liberates people to focus on the consumer, and deliver on our purpose.

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BUILDING A DIVERSE TALENT PIPELINE

In the last year, we have continued sourcing and developing a diverse talent pipeline to further enhance our ability to perform at our full potential. To improve diversity and inclusion across the company, we are executing our diversity strategy to meet our targets and strengthen our ACI representation, as well as improve diversity in terms of gender and people with disabilities across all levels. We are making progress in achieving our targets: over 90% of our workforce is ACI and 30% is female, with 50% of our South African managing directors being female. We are continuing to improve ACI representation at middle and senior management levels. The execution of our gender equity agenda through our targeted talent development programmes – Women in Customer, Women in Supply Chain and Women in Bakeries – also gained traction during the year. In 2021 our efforts towards creating a gender-equal workforce were recognised through winning four gender-mainstreaming awards, including that of Gender Champion for South Africa.

For more information about our employment equity profile please see our ESG report at www.tigerbrands.com.

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CULTIVATING CORE CAPABILITIES

We continued to cultivate core and future-fit capabilities. We have established a strong foundation for building our talent pools by identifying the core commercial and specialised technical capabilities needed to execute our strategic agenda and business priorities. This has formed the basis for our sourcing, talent mapping and development actions. In line with our talent philosophy of "growing our own timber", we review our internal talent and succession plans annually to identify individuals with potential to grow further in the organisation, and we drive deliberate execution of our development plans to get internal talent ready for opportunities.

Over the last three years, we have improved our succession bench ratios from 0:1 to 2:1 on average; our goal is to achieve a robust succession bench ratio of 3:1 across the board. This year we refocused our Supply Chain, Marketing, Customer, Bakeries and R&D Learning Academies on building core capabilities that drive strategy execution in the business of today, as well as ensuring that Tiger Brands is fit for the future. In addition to retaining our strong focus on developing capabilities internally and promoting from within, where necessary, we have also assessed talent to be sourced externally for key positions to ensure that any capability gaps can be closed quickly.

We have made significant progress in the delivery of our Rest of Africa talent and capability agenda. We have registered permanent entities in Nigeria and Kenya, resourced key vacancies in our Rest of Africa business, and undertaken coaching and mentoring as part of preparations for in-market placements.

We took advantage of the opportunities presented by remote-working arrangements to embed the use of just-in-time digital learning to accelerate the integration of learning into day-to-day work across the organisation.

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DEVELOPING INSPIRING, AGILE LEADERS

We continued to develop the leadership capabilities required to enable our leaders to engage our workforce and create the conditions for them to perform at their peak. We leveraged our targeted talent rotations and flagship development programmes, Game Changer and LIFT, to embed our leadership competences geared to improve our leaders' ability to lead self, people, performance, innovation and partnerships.

We measure our leaders' progress on acquiring these critical capabilities through our 360° MultiRater feedback platform that provides leaders with direct feedback from their teams, peers and line leaders on their behaviours and demonstrated ability to live the Tiger Values. We also recently launched mentorship circles for emerging leaders looking to learn from more experienced leaders.

Looking ahead, we will continue executing our fit-for-purpose leadership development programmes and rotations to strengthen our leadership pipeline, as well as to stimulate innovation and a growth mindset across our organisation.

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CREATING A GREAT PLACE TO WORK

We are making progress on our culture transformation journey through our actions to create a great place to work and energise a consumer-obsessed and agile "one-Tiger team". We recognise that building a consistent culture requires time and deliberate actions. We have established internal alignment on the desired culture and have built a foundation for this through our shared values and winning behaviours. Our focus now is on consistently infusing our values and winning behaviours in how we operate on a day-to-day basis, creating collaborative teams that are consumer obsessed, agile, risk-embracing, and innovative.

In November 2020, we initiated our new Voice of Tiger process, a group-wide employee engagement and experience survey. The survey was conducted digitally and made available in six languages, and we achieved a 73% employee participation rate from across all our sites. Our overall employee engagement score was a positive 70 against a global benchmark of 74, indicating that most employees who participated in the survey experience Tiger Brands as a great place to work, are fully committed to our goals and values, and are prepared to go the extra mile to deliver winning performance.

The survey results highlighted clear strengths, which we continue to reinforce and celebrate. Opportunities for improvement were also identified. We are implementing deliberate actions to address these to further improve our employee experience and ultimately our ability to execute with excellence, speed and agility. The opportunities identified and prioritised for action were clustered into priority areas for action, which included: visible recognition for a job well done; more visibility and equal access to career opportunities across the organisation; more opportunities to challenge the status quo and contribute to the innovation agenda; improvement in empowerment and speed of decision making; and enabling our people to balance their work and home lives. Over the last year, we have taken numerous actions to address the opportunities identified through the survey; these are reviewed in more detail in our sustainability report. In November 2021, we will conduct our follow up Voice of Tiger Pulse to solicit further feedback on how we are progressing in terms of opportunity areas identified in the 2020 survey.

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ENHANCING EMPLOYEE WELLBEING

Our employee wellbeing programme, THRIVE, has continued to play a critical role in enabling our people and their families to navigate the Covid-19 pandemic, and build the resilience required to deal with work-life integration issues, and physical, emotional and mental-health challenges. During the year, we reviewed and re-engaged our people on our flexible working practices seeking to continue and better enable effective work practice in a hybrid environment, as we emerge from the pandemic.

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REWARDING WINNING PERFORMANCE

We reward winning employee performance to motivate excellence in the execution of our strategy, and to enhance our ability to attract, develop and retain high-calibre talent. We review and refine our reward and recognition strategy annually to stimulate execution of our strategy, and to align with market benchmarks and with the interests of our employees and shareholders.

We have enhanced our remuneration strategy to improve alignment with our KPIs used to measure and reward performance against our strategy. The remuneration committee approved the implementation of a revised STI scorecard that drives the achievement of KPIs, maintaining a balance between the focus on financial, strategic and sustainability measures. We also revised the STI weightings for the group and business-units to increase focus on the delivery of results at category team level. Further amendments were made to the group and business-unit scorecards to improve line-of-sight for employees in the frontline of our business. These changes to the STI structure further support our reward framework, which follows a "total reward" approach, consisting of guaranteed pay and variable pay, and a range of market-relevant benefits and professional growth opportunities that recognise individual and team performance.

We reward performance fairly and responsibly in accordance with the reward philosophy outlined in our remuneration policy, which aligns with International Labour Organization (ILO) conventions and relevant legislation. We conduct assessments on pay fairness, and annually ringfence and manage a separate budget to address identified pay disparities.

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MAINTAINING WIN-WIN EMPLOYEE RELATIONS

We align and comply with all labour-related legislation and ILO conventions relevant in the countries where we operate. This year there were no reported instances of non-compliance with labour standards. One of the company's strategic intents is to establish and maintain a meaningful collaborative relationship with our key stakeholders, including our representative trade unions and employees. During the year we made further progress in implementing our Employee Relations Partnership Framework to ensure better alignment between site leaders, employees and union representatives. Site partnership forums and engagement channels help to ensure that matters of mutual interest are addressed before they escalate into conflicts or industrial action. In line with this approach, our CEO and members of our executive team engaged this year with our most representative trade union partners on business strategy, business performance, employee safety and wellbeing and other matters of mutual interest.

During the year, we successfully concluded 23 site-negotiations out of a planned 24, without industrial action. Regrettably, we experienced one protected strike at our Davita site due to a wage dispute. The strike lasted 44 days, with 1 056 manhours lost. Stabilisation efforts at this site are starting to have a positive effect, resulting in a more collaborative partnership with our trade union partners. We continue to build the capability of our operational line and site-based human resources teams to improve employee relations and the negotiations approach. This has been supplemented by building the capacity of our shop stewards on negotiation skills.