A New Organization – A New Focus: Valuing Work at Viterra

1. A New Organization – A New Focus: Valuing Work at Viterra Diane McLean, CCP, Manager Compensation, ViterraDiane Panting, CCP, CHRP, Vice President, Aon Hewitt

2. Learning Objectives • Review innovative approach to compensation delivery • Discuss Viterra's specific approach to valuing work at the new organization • Understand links to HR programs

3. Presentation Topics • About Viterra • Valuing Work • Viterra’s Journey

4. About Viterra • The world’s largest exporter of canola • Strategically located in the world’s top exporting countries • $9 Billion combined revenue1 • $640 Million combined EBITDA1 • $4 Billion Market Cap2 • Over 4600 employees Moving essential ingredients from field to table 1 Unaudited Pro forma Statements for the 12 months ended October 08 (results not necessarily indicative of future performance) 2 Based on October 8 share price

5. Our History Canada Australia

6. Fully Integrated and Diversified Agri-Business Company Grain Handling, Marketing, Logistics Food/Feed Processing Agri-Products WORLD FARMER Customers throughout the entire value chain

7. Strategically Located in the World’s Leading Grain Exporting Countries Canada Kiev United States Geneva Beijing Cairo Japan India Singapore Southern Australia New Zealand • Shipments of up to 24mmt of grains/oilseeds annually • Exports to more than 50 countries

8. How Organizations Are Changing – Valuing Work Valuing employees as assets • Increased use of technology and knowledge workers • Globalization and competitive pressures • Flattening, right sizing and reorganizations

9. How Work Is Changing • Work less routine, demanding innovation • Self-managed employees • Demands for continuous learning • More external awareness and knowledge • Greater focus on customers • More business acumen required • Greater demands, broader accountability

10. Narrowly defined duties Minute differences Functional hierarchy Vertical Promotion Broad responsibilities Meaningful, substantive differences Flatter/matrix organization Lateral development How Organizing and Describing Work Has Changed From To Role/Job Family Job

11. Abolish the committee • Job questionnaire • Computerized tools Typically with point-factor plans What Has Been Tried • Competencies/contribution • Whole job ranking • Market pricing • Default: with no system, negotiation of pay by incumbent/job, at manager's discretion

12. Traditional Job Evaluation –Job Evaluation Challenges Lack of flexibility in deployment of resources Subjectivity creates conflict Inefficient Bureaucratic Internal inequities Inconsistencies due to no shared understanding of values Labour intensive — both initial and ongoing Centralized control

13. What Job Families Are Broad/more generic descriptions of work performed Reflective of increasing levels of accountability defined in relation to common elements Contemporary approach to documenting work and valuing work by grouping jobs into broad roles or job families Do not describe tasks or activities Job family levels are evaluated not individual jobs Level 4 Level 3 Level 3 Level 2 Level 2 Level 1 Level 1 Level 5 Level 4 Level 3 Level 2 Level 1

14. What Job Families Are Job Job Family • Provide client support to resolve issues • Analyze data and assess impacts • Develop project plans • Manage project activities • Provide guidance to junior staff Systems Analyst Financial Advisor Environmental Specialist

15. AS-1 AS-2 AS-3 PBS-1 PBS-2 PBS-3 PBS-4 PBS-5 S-1 S-2 S-3 S-4 S-5 M-1 M-2 M-3 M-4 NO-1 NO-2 NO-3 NO-4 NO-5 NE-1 NE-2 NE-3 NE-4 NE-5 Valuing Work Framework – The Picture Comes Together Sample Ranking of Job Families/Grades Based on Internal Relativities GradePointsJob Rate Grade 1 Grade 2 Grade 3 Grade 4 Grade5 Grade 6 Grade 7 Grade 8 100-199 200-299 300-399 400-499 500-599 600-699 700-799 800-899 30K 35K 40K 45K 55K 65K 75K 90K Administrative Services Professional Business Services Sales Marketing Network Operations Network Engineering

16. Valuing Work Considerations Judgments based on commonly shared criteria Appropriate autonomy & flexibility for management Facilitate openness and understanding by employees Reduce need for ongoing job description preparation and evaluation Strengthen links to the competency model, performance management, career development and succession planning Free HR resources for more value added activities

17. Ownership of the executive group Reinforcing shared understanding and buy-in around: Compensation philosophy Accountability levels and related ranking Bringing together disparate parts of the organization Opportunity for high involvement of employee teams Substantive involvement/buy-in of managers Communication throughout the project Training and education of managers and employees Initiative Success Factors

18. How About in Your Universe? What challenges is your organization experiencing re valuing work – from the manager perspective and from the employee perspective?

19. Viterra’s Journey

20. New organization – new compensation structure Sustainable model Framework for all employees – union and non union employees; North America and beyond Common terms and conditions for all employees Internal and external equity Foundation for other HR Programs Project Objectives

21. Viterra Project Sponsor Compensation team HR Generalists Senior Managers in key business areas Aon team Compensation/Rewards Communication Technology Job Family Project Team - 2008

22. Development of Compensation Philosophy and Guiding Principles Job Families for all jobs below Vice President level Evaluation of job family levels for each job family Slotting of all jobs into job family levels New salary structure Introduction of variable pay for all employees Determination of costing to ensure all employees were paid in the range What Were The Changes

23. Viterra Compensation Philosophy Viterra is committed to providing a competitive total compensation package that recognizes and rewards employee performance and enables the organization to retain and attract talented employees • Provide employees with an attractive, market competitive pay opportunity that includes variable based pay • Be competitive from a corporate and regional perspective • Foster a pay for performance culture • Utilize a universal job evaluation/classification plan to allow for mobility of talent • Ensure pay practices reflect regional market and any legislative requirements

24. Viterra Guiding Principles Base Salary Guiding Principles: • Competitive salary ranges to attract and retain employees • Competitive salary increase budgets to reward and motivate employees • Reflects performance and contributions of employees, motivate and reward performance and move salaries through the range Variable Pay Guiding Principles: • Focus management and employees’ efforts on the business objectives established by the Company. • Designed to provide a competitive total cash compensation package • Reward employees for significant achievements

25. Approach • Using a partnership team from Viterra and Aon, determine how many job families and how many levels within each family • Draft descriptions of progression • Work with senior leaders to develop and finalize • Develop Job Evaluation tool and evaluate each job family • Work with senior leaders to slot jobs into family levels • Gather market data • With Aon’s Ubertool, evaluated levels and developed new salary structure – assessed impact

26. Job Family Development

27. Job Family Development Number of Job Family Levels Job Family Business Support Services 4 Levels Professional Technical Advisory Services 5 Levels Core Areas of Business Facility Operations 3 Levels 4 Levels Sales Services 7 Levels Management

28. Challenges & Solutions Challenge #1: • Compensation Programs for both non union and union employees which supports Viterra's compensation philosophy and guiding principles Solution: Competitive ranges + variable pay + pay for performance • Challenge #2: • How to educate and communicate the new program • Solution: • Assessed change management implications + Regionalmeetings + Managers Guide + Managers Online FAQ site + Job Family Brochure

29. Challenges and Solutions • Challenge #3: • Compensation Program for all business units – operations vs. enabling functions • Solution: • Work closely with business leaders to ensure all core functions are described + continually review to maintain • Challenge #4: • Global differences in pay practices and policies • Solution: • Global Total Rewards area reviews global job leveling + develop different compensation structures to reflect regional pay

30. Advantages Provides consistency in administration - Accommodates differences in scope, complexity and accountability - Streamlines job evaluation process - Still have job descriptions which are slotted into job families, not evaluated individually with job evaluation tool Provides the framework for: - Performance Management - Variable Pay - Recruitment and Selection - Career Development and Career Pathing

31. Lessons Learned • Ensure as much involvement from the business as possible • Develop a project plan that encompasses all aspects • Ensure sufficient time is taken with business to create buy-in and that the right amount of education is provided • Communicate, communicate …

32. Phased in: Feed Products – Canada and US Fertilizer business Food Processing - Oats Acquisitions: Canola Crushing plant Australia Barley Board (ABB) Dakota Growers - pasta plants Other smaller acquisitions Progress since 2008

33. Changes made are consistent with compensation philosophy and commitment to employees Values work performed and provides progression of responsibilities Pay equity compliance Starting to align other HR programs Communication challenges exist with diverse and global company but managed With new lines of business being acquired have to review tools and determine whether refinements need to be made Does Approach Work for Viterra?

34. Comments/Feedback/Questions?

35. Thank You! Diane McLean, Viterra(204) 944-5520diane.mclean@viterra.ca Diane Panting, Aon Hewitt (204) 954-5512diane.panting@aonhewitt.com

36. Live Long and Prosper!