Guidelines for Sustainability

Conscientious Consumption and Supply

A Focus on Sustainability

Valuing our People

A Focus on Sustainability

Valuing our People

Guidelines for Sustainability

Conscientious Consumption and Supply

GPA HAD

169.959

EMPLOYEES

89.575

MEN

80.384

WOMEN

35.842

WAS THE TOTAL NUMBER OF EMPLOYEES WHO LEFT THE ORGANIZATION

30%

OF GPA EMPLOYEES LIVE AROUND THEIR WORKPLACES

An integral part of the strategy for sustainability, valuing and developing employees is one of GPA’s foci going forward. Complying with health and safety law, promoting the inclusion of people with special needs, women and youth, and disseminating the concept of sustainability among all employees are some of the strategic objectives the Company has mapped out.

In line with this positioning, the Group developed its proposition of value, materialized in the "We want you to be happy here" movement that seeks to enhance the conditions of happiness in the workplace.

In 65 years, GPA has consolidated itself as the largest distribution company in South America.

1. We want you to be happy here!

A large company – With 65 years of history, GPA is the largest South American distribution company, with the best reputation in the segment. Leading or on the way to occupying the top spot in all the segments in which it is active, the Group is the benchmark in the adoption of best practices, a company that is solid, ethical, innovative and committed to the growth of a just, humane and healthy society.

GPA is respected and admired for excellence in leadership, the quality of the products and services at the points of sale, the scope and impact of its activity, the agility of management, and its consistent results.

The diversity of the businesses forms a solid, robust and sustainable whole. For all these reasons, the Group plays an important role in Brazil’s economy, always trying to minimize environmental impacts and encouraging conscientious consumption, promoting the well being of the entire society and contributing to the development of Brazil.

Pleasure in serving – A company where employees are passionate about what they do. The work is intense and replete with achievement. Employees find satisfaction in the good service they provide every day to millions of customers. Even with the day-to-day pressure, GPA believes in and promotes an environment that prizes respect, ethics and team spirit, spreading internal enjoyment. With the belief that people dedicate their technical skill, and fulfill themselves professionally.

Driven by customer needs, the Group maintains an environment that stimulates creativity, the exchange of information and the integration of professionals with different profiles: a diversity of skills to attend to different customers.

Transparent, ethical and responsible partnership forms the GPA way of being and working, and permeates the environment, the corporative universe, and relationships with customers, suppliers and stakeholders.

Career opportunity – In a year, 20% of GPA’s roughly 160,000 employees evolve in their careers, whether toward higher posts in the hierarchy or in positions in different departments or businesses. A career journey that the Group believes is also worth it personally.

Much more than just a big company, GPA is also a partner – it believes in people, knows the importance of its role in their success, the contribution of its employees in each new conquest. It is a company that always tries to understand needs and expectations, and seeks to meet them. As one of the largest employers in South America, it can be seen as one of the largest providers of opportunities to those who want to develop.

Competitive compensation package – GPA offers competitive and meritocratic compensation at all its businesses, and benefits packages appropriate to each function, from offering baskets of basic goods and health plans with quality coverage and service, to programs that look after the quality of life and well being of its people.

Made up of people that do – Employees are the main asset at GPA, which invests in the value of human potential. The Group invests in training and developing its professionals, since it believes that its own growth depends on the daily development of each individual.

GPA cultivates skills that drive each business and enhance shopping experiences. Our People are a team of specialists that ensure focused management, facilitating the best possible results, today and in the future – for each segment of activity and for the entire Company.

GPA’s practice is to hire people who reside near or in the same cities as its stores. In 2013, of the 1,140 employees who live in metropolitan regions, approximately 30% live nearby. The Group has a Transfer Assistance policy to support employees with moving costs and rent. In 2013, 74.7% of senior managers were from local communities, higher than the 52% figure for 2012. For other roles, the percentage was 61.97%.

NUMBER OF EMPLOYEES BY FUNCTIONAL LEVEL¹ <LA1>
	2013
	Men	Women
Executive officers	89	15
General managers	1,859	519
Departmental managers/coordinators	2,962	1,586
Technicians/supervisors	1,964	328
Administrative	6,164	7,698
Operational	58,630	54,885
Sales	16,166	13,817
Apprentices	1,741	1,536
Total by gender	89,575	80,384
Total	169,959
1. Were considered direct contract employees. Were not considered athletes, trainees, service providers and third parties.

NUMBER OF EMPLOYEES BY TYPE OF CONTRACT¹ <LA1>
	2013
	Men	Women
Temporary hires	1,741	1,536
Permanent hires	87,834	78,848
Total by gender	89,575	80,384
Total	169,959
1. Were considered direct contract employees. Were not considered athletes, trainees, service providers and third parties.

NUMBER OF EMPLOYEES BY TYPE OF EMPLOYMENT¹ <LA1>
	2013
	Men	Women
Full time	46,589	52,136
Part time	42,986	28,248
Total by gender	89,575	80,384
Total	169,959
1. Were considered direct contract employees. Were not considered athletes, trainees, service providers and third parties.

NUMBER OF EMPLOYEES BY REGION¹ <LA1>
	2013
	Men	Women
South	3,549	2,470
Southeast	69,297	64,927
Central-West	7,281	6,235
Northeast	9,173	6,507
North	275	245
Total by gender	89,575	80,384
Total	169,959

NUMBER OF EMPLOYEES BY BUSINESS UNIT¹ <LA1>
	2013
	Men	Women
Stores	70,748	72,033
Distribution centers	14,536	3,203
Corporate	4,291	5,148
Total by gender	89,575	80,384
Total	169,959
¹Contemplates only employees under the Consolidated Labor Laws regime. Does not contemplate athletes, interns, service providers and outsourced labor.

TOTAL NUMBER OF WORKERS THAT LEFT THE ORGANIZATION <LA2>
	2013
	Homens	Mulheres
Total by gender	21,323	14,519
Total	35,842

DEPARTURE RATE BY GENDER(%)^{1 and} ² <LA2>
	2013
	Men	Women
Total by gender	24	18
Total	21
¹Fires/total employees at period end. ²Departure rates do not contemplate apprentices.

Number of hires by region <LA2>
	2013
	Men	Women
South	1,532	1,382
Southeast	26,135	26,400
Central-West	3,631	3,472
Northeast	4,031	2,459
North	148	131
Total by gender	35,477	33,844
Total	69,321

NUMBER OF DEPARTURES BY REGION¹ <LA2>
	2013
	Men	Women
South	1,132	666
Southeast	16,357	11,487
Central-West	1,864	1,315
Northeast	1,885	993
North	85	58
Total by gender	21,323	14,519
Total	35,842
¹Departure rates do not contemplate apprentices.

TOTAL WORKERS HIRED 2013 <LA2>
By gender

HIRE RATES BY GENDER (%)¹ <LA2>
	2013
	Men	Women
Total by gender	40	42
Total	41
¹ Hires/total employees at period end.

HIRE RATES BY REGION (%)¹ <LA2>
	2013
	Men	Women
South	43	56
Southeast	38	41
Central-West	50	56
Northeast	44	38
North	54	53
Total by gender	40	42
Total	41
¹Hires/total employees at period end.

DEPARTURES RATES BY REGION (%)^{1 and 2} <LA2>
	2013
	Men	Women
South	32	27
Southeast	24	18
Central-West	26	21
Northeast	21	15
North	31	24
Total by gender	24	18
Total	21
¹Fires/total employees at period end. ²Departure rates do not contemplate apprentices.

Developed for all the businesses, the Cycle of People Program occurs annually and evaluates employees based on criteria such as: fulfillment of goals, feedback on the results, performance evaluation, career path and individual development plans. Executives also undergo a 360º evaluation, a process that includes self-evaluation and evaluations by supervisors, colleagues and subordinates.

Performance Evaluation MultiVarejo

At Multivarejo, 96% of the employees eligible for the performance evaluation and development process were evaluated during 2013.

All of GPA’s business units offer career opportunities to their employees, prioritizing internal personnel for filling positions. External professionals are only sought when the internal candidates don’t fit the required profile.

In 2013, Assaí launched Universidade Assaí, a concept for corporate education that supports the sustainable growth and expansion of the business. With the challenge of stimulating knowledge of the management model and self-service wholesale operations, Universidade Assaí is divided into five schools (Wholesale; Leadership; Operations; Marketing; and Technical and Interpersonal Development), with teaching methodologies that permit the alignment of programs, courses and training with the demands and strategic objectives of the business. In 2013 alone, attendance numbers exceeded 22,000, totaling approximately 643,000 hours of training.

As highlights for 2013, more than 700 leaders were trained throughout Brazil through the Leadership School. Arrangements were also made for the second cohort for the Operations Trainee Program. Currently, 42 trainees are being prepared to become store submanagers. In the Operations School, a package of trainings including on service, knowledge of the business, and operational standards was created, toward preparing the professionals who will assume functions in new stores. In all, there were 233,000 hours of training for new employees.

With a focus on developing people, Nova Pontocom promotes the Talent of the Future Program, where participation is voluntary. The trainings are for operational personnel that are not yet in the leadership ranks. Launched in 2012, more than 780 employees have been trained.

The company also has a Leadership Development Program with the objective of disseminating GPA’s values and Nova Pontocom’s strategies, contributing to developing professional skills and training supervisors, managers and leaders in the practices of participative management and teamwork. The program trained 300 leaders in three years.

In October of 2013, Via Varejo began to change its management by deploying a tool for results-driven management. The new model reinforces Via Varejo’s attributes, by promoting sustainable results and giving more autonomy to managers. As of February of 2014, the manager can do the monthly monitoring of indicators and goals.

As a first step, 1,201 leaders were trained and indicators were established with points of control. In 2014, all store managers will be trained. Other programs also stood out in 2013 at Via Varejo, including:

THE LEADERS OF THE FUTURE PROGRAM
Initiated in 2011, it is intended to train store managers. In 2013 alone, there were 1,320 hours of training for 98 employees. Since inception, it has developed 266 store managers and submanagers, who previously acted as salespeople, administrative consultants and sales training coordinators.

THE CASAS BAHIA SALES TRAINING PROGRAM (PROVE)
The program imparts the best sales practices, so that salespeople can improve results and attain goals. Initiated in 2004, Prove has trained 70% of the employees. In 2013, there were a total of 85,308 attendees in 558,942 hours of training.

HOURS OF TRAINING IN 2013 <LA10>
Functional Category	Indicators	2013
Executive Officers	Total hours	577
	Total employees in the category	104
	Hours per employee in the category	5.5
General Managers	Total hours	33,930
	Total employees in the category	2,378
	Hours per employee in the category	14.3
Departmental Managers/ Coordinators	Total hours	322,466
	Total employees in the category	4,548
	Hours per employee in the category	70.9
Technicians/Supervisors	Total hours	15,905
	Total employees in the category	2,292
	Hours per employee in the category	6.9
Administrative	Total hours	295,825
	Total employees in the category	13,862
	Hours per employee in the category	21.3
Operational	Total hours	990,902
	Total employees in the category	113,515
	Hours per employee in the category	8.7
Sales	Total hours	309,142
	Total employees in the category	29,983
	Hours per employee in the category	10.3
Apprentices	Total hours	4,178
	Total employees in the category	3,277
	Hours per employee in the category	1.3
Total	Total hours	1,972,925
	Total employees	169,959
	Hours per employee	11.6

GPA has agreements with educational institutions that offer discounts for employees and their families, throughout Brazil. There are also selective half-scholarships offered for undergraduate and language study. During 2013, 133,000 scholarships were offered to employees at GPA, which also invested approximately R$16 million on internal programs for its team.

In 2013, the position with the lowest compensation at GPA was part-time, earning half of the minimum wage of R$678.00. In 2012, the lowest wage was equivalent to the national minimum (R$622.00).

AVERAGE COMPENSATION BY FUNCTIONAL CATEGORY (R$) <LA14>
	2013
	Men	Women	Proportion w/m (%)
Executive officers	R$ 43,776.10	R$ 35,100.19	80.2
General managers	R$ 8,707.52	R$ 9,576.53	110.0
Departmental managers and coordinators	R$ 4,814.17	R$ 4,856.45	100.9
Technicians/supervisors	R$ 1,467.89	R$ 3,020.81	205.8
Administrative	R$ 2,866.44	R$ 2,287.08	79.8
Operational technicians	R$ 979.33	R$ 1,012.64	103.4
Sales	R$ 1,450.39	R$ 1,333.08	91.9
Apprentices	R$ 437.05	R$ 427.57	97.8

Highlights

Nova Pontocom took 4th place, in the category for 2,001 to 4,000 employees, in the survey on engagement conducted in 2013 by Valor Econômico newspaper and Aon Hewitt, which identified best practices for personnel management in the Brazilian market.

Focus on communication

With the objective of innovating and facilitating internal communication, Nova Pontocom created internal radio so that employees can follow the company’s news and benefits.

Assaí launched an internal magazine (‘Our Assaí’) that, in addition to presenting the company’s corporate profile, deals with such topics as operations, processes, career, and best practices in business. In 2014, the objective is to strengthen direct channels of communication, toward tightening the relationships between the leadership and their teams.

BENEFITS OFFERED TO EMPLOYEES, BROKEN DOWN BY SIGNIFICANT OPERATING UNIT¹ <LA3>
	Number of employees benefitted	Observations (Via Varejo)
Food voucher	6,309	Branch FTEs²
Transport voucher	104,812	All FTEs
Life insurance	103,469	Corporate FTEs
Health plan	256,573	All FTEs
Maternity/paternity leave	516	Half of corporate
Retirement fund	921	-
Basket of basic goods	55,377	All FTEs
Gym	1,073	Corporate FTEs
Wedding gift	503 (R$ 41,960.94)	All FTEs
Ticket car³	150	All FTEs
Check-up	39 (Annual Cost 45,352.48)	Corporate FTEs
Private pension plan	34	Corporate FTEs
Vehicle	43	Corporate FTEs
Meal vouchers (eligible positions)	11,024	All FTEs
¹GPA:There is no coverage for disability/impairment nor a stock option plan. ²Via Varejo: FTE= Full-Time Employees The amounts denoted All FTEs refer to the sum for corporate, distribution center{s} and branches. When they correspond only to one of these, it is so noted at the side. At Via Varejo there is no: coverage for disability/impairment, retirement fund or stock option plan. ³Ticket car: 73 corporate FTEs, credit card – R$43,720.00 35 distribution center FTEs, credit card – R$39,376.00 42 branch FTEs, credit card – R$23,540.00

GPA maintains a voluntary private pension plan, based on defined contributions varying from 2-8%, depending on the employee’s salary and age. Program participants are entitled to the Company’s counterpart, which is equivalent to 100% of the employee’s contribution.

The defined contribution benefit is sourced to a private pension plan administrator, without GPA involvement in future obligations. In 2013, the annual cost of plan was R$514,329.32.

Collective bargaining <LA4 and LA5>

All GPA employees are hired under the Consolidated Labor Laws regime (CLT). The Collective Bargaining Agreement provides that two or more unions, together with the Group’s professionals, stipulate the applicable working conditions. Notices of possible operational changes relating to labor relations are provided considering the provisions of the Collective Bargaining Agreement and applicable labor law. Matters such as safety and health are not covered by the union agreements, but GPA stresses the requirement of complying with the Normative Regulations (NR), relating to occupational health and safety.

The Company respects diversity, without discrimination of any kind (race, gender, religion, sexual orientation, physical characteristics, nationality or socio-economic level), which values are contained in its Code of Moral Conduct. In cases of violations of these rights, GPA has reporting mechanisms such as the Channel for Complaints and an Office of the Ombudsman.

The Code of Moral Conduct also provides for an investigation and possible punishment in cases of discriminatory conduct. For such matters, the Personnel Management department, together with legal and the respective manager, are responsible for analyzing and monitoring possible occurrences. More complex situations may require the involvement of the Special Operations department.

In 2013, GPA continued several programs of a social nature. Through the People with a Future, Third Age, First Job and Young Apprentice initiatives, the Group tries to promote social inclusion and the professional training of youth and people aged 56 and up (Learn more in the box on Other initiatives).

The Personnel Management department was restructured in 2013; one of the objectives of this change was to improve the Company’s record in hiring and retaining people with special needs. One of the highlights in this new format was the contracting of three external consultancies, which mapped the profiles of the candidates, followed by a proposal to attract and select people and raise consciousness among leaders. The last stage, of training the leadership, will occur in 2014.

GPA also reinforced its efforts to include people with special needs, fomenting a culture of perennial diversity, providing increasing opportunities to these professionals.

To make this a reality, programs such as Refer a Special Needs Friend and Family, with employee participation, were created, and Case Histories of Success were promoted bringing together testimonials of leaders and colleagues from work with positive stories about the work of employees with special needs. This material was utilized in several trainings, including to facilitate the development of the managers.

At Assaí, there were a variety of actions focused on generating job opportunities for people with special needs. At the stores, vacant positions were allocated for hiring people with special needs. Recruitment began to be done through specialized consultancies, and partnerships were signed with institutions, NGOs, churches and governmental entities that serve people with special needs and their families, aiming at the possibility of hiring trained labor. A variety of channels of communication with customers were utilized to advertise job openings. In 2014, the Diversity Management Program, to raise consciousness within the organization, train the leaderships and develop actions that will help retain and engage these employees will be rolled out.

Via Varejo has begun to revise and draft policies for new rounds for hiring people with special needs, which will be implemented in 2014.

INDICATORS OF DIVERSITY < LA13>

Gender (%)
	Via Varejo		GPA¹
	Men	Women	Men	Women
Executive officers	87.5	12.5	84.7	15.3
General managers	79	21	77.2	22.8
Departmental managers and coordinators	64.5	35.5	65.2	34.8
Technicians/supervisors	86.5	13.5	84.6	15.4
Administrative	25.7	74.3	55.4	44.6
Operational	71.6	28.4	44.1	55.9
Sales	53.4	46.6	59.6	40.4
Apprentices	49.2	50.8	54.5	45.5

BLACKS (%) <LA13>
	Via Varejo		GPA¹
	Men	Women	Men	Women
Executive officers	3.8	0	0	0
General managers	1.9	0.4	21.9	14.5
Departmental managers and coordinators	2.9	0	43.3	38.4
Technicians/supervisors	5.6	0.4	53.3	41.7
Administrative	1.3	5	43.6	39.1
Operational	7	2.2	68.8	68.8
Sales	2.6	1.9	67.9	62.4
Apprentices	3.3	2.7	88.8	87.9
¹The GPA cluster contemplates Nova Pontocom, Multivarejo, Assaí, GPA Malls and Corporate.

GPA foments a series of programs dedicated to promoting diversity and inclusion, such as:

First Job

Oriented toward youth aged 16 and up searching for their first job. The objective is to prepare them for the labor market, so that they can in the future build a career in the Group. In 2013, 9,186 youth were hired under the program, with registry on a Work Card.

Young Apprentice

The program selects youth aged 14-24. The training lasts approximately one year and is intended to train, involve and promote the professional development of the apprentices. Courses administered by the Serviço {Nacional} de Aprendizagem Comercial (SENAC) also complement the program. In 2013, 1,976 youth participated in the program.

People with a Future

The program, conducted in partnership with Fundação Casa, hires youth that have completed social education programs (community service, probation or halfway houses), toward inclusion and reintegration. In 2013, six youth (from an initial cohort of 25 participants) were trained by the program.

GPA for All

This program promotes the inclusion of people with special needs. In 2013, 113 people were hired.

Third Age

Work opportunities for people aged 56 and up, to value the contributions and experience of this group throughout the business. In 2013, 424 people were hired under the program.

PEOPLE WITH SPECIAL NEEDS (%) <LA13>
	Via Varejo		GPA¹
	Men	Women	Men	Women
Executive officers	0	0	0	0
General managers	0.08	0.32	0.1	0.4
Departmental managers and coordinators	0	0	0.1	0.1
Technicians/supervisors	0.15	0.76	0.1	0
Administrative	1.43	0.96	0.3	0.2
Operational	1.23	1.94	1.7	0.8
Sales	0.25	0.49	0.1	0.1
Apprentices	0	0	0	0

AGE GROUP (%) <LA13>
	Via Varejo			GPA¹
	Under 30	30-50	Above 50	Under 30	30-50	Above 50
Executive officers	0	87.5	12.5	0	77.8	22.2
General managers	8.9	83.7	7.5	1.3	82.2	16.5
Departmental managers and coordinators	13.9	76.1	10	15.3	77.2	7.5
Technicians/supervisors	12.9	78.5	8.5	23.8	61.1	15
Administrative	31.2	65	3.8	23.5	69.7	6.8
Operational	38.1	55.7	6.3	49.1	43.1	7.8
Sales	30.6	62.1	7.2	35.6	56.9	7.6
Apprentices	99.6	0.4	0	100	0	0
¹The GPA cluster contemplates Nova Pontocom, Multivarejo, Assaí, GPA Malls and Corporate.

Commissions for In-House Prevention of Accidents (CIPAs) are responsible for identifying risks in the workplace and raising professionals’ consciousness on safe behaviors. There are currently CIPAs at 570 GPA units, representing approximately 85% of the staff. At year-end, 364 Via Varejo units had commissions, covering approximately 63% of the staff.

Occupational health and safety is governed by the Ministry of Labor’s Regulatory Norms, which deal with: the use of individual safety equipment; ergonomics; occupational exams; and good working conditions, among other matters. These standards are eventually reinforced in collective bargaining agreements. Violations of the laws entail the applicable penalties.

GPA has programs for the prevention and treatment of serious diseases for its employees and their families, providing general clinical and medical specialist assistance. It also has a flu vaccination campaign, a pre-natal care program, anti-smoking and chemical dependence initiatives and consciousness-raising campaigns on such topics as hypertension, diabetes, and healthy nutrition.

GPA’S HEALTH AND SAFETY INDICATORS¹ <LA7>
GPA and Via Varejo	Injury rate		Occupational disease rate		Total days lost²		Rate of absenteeism³
	Female	Male	Female	Male	Female	Male	Female	Male
Central-West	1.24	1.18	0.06	0.08	2775	1759	51.16	26.86
Northeast	1.11	1.53	0	0.04	2652	2679	44.70	32.69
Southeast⁴	1.01	1.71	0.04	0.33	19525	40556	29.53	55.90
North	0	0	0	0	0	0	0	0
South	0.66	1.20	0	0	539	1538	29.45	52.54
¹The consolidated indicator includes Nova Pontocom, Multivarejo, Assaí, GPA Malls, Corporate and Via Varejo. ²Days lost refers to calendar days following the accident. The basis for calculating this indicator differs from 2012, frustrating comparison. ³ Does not include data for Via Varejo. ⁴There were two deaths in the Southeast region.

Through its Sports Program, GPA tries to promote social change and mobilization, providing incentives for the quality of life and the well-being of employees and their families. The initiatives are oriented towards holding events on healthy habits, physical training and nutritional advice. The program is divided into three pillars – GPA Club, GPA Gym and GPA Nutrition – which are described below:

GPA Club

Maintained since 1993, it offers physical activities such as walking, running, biking and dance classes. Approximately 2,000 employees participate in São Paulo (SP), Campinas (SP), Brasília (DF), Rio de Janeiro (RJ), Goiânia (GO), Fortaleza (CE), Recife (PE), and Belo Horizonte (MG).

GPA Gym

Since the inauguration of the first unit in 1998, GPA Gym has grown to 19 units at stores and distribution centers in São Paulo state, the Federal District (DF), Ceará (CE), and Rio de Janeiro (RJ), in addition to a unit at the Group’s headquarters in São Paulo (the Brigadeiro Complex). In 2013, there were 7,500 employee beneficiaries who also received professional assistance and services such as gymnastics for the workplace (18 GPA Gym units and three administrative departments) and gymnastics for customers (eight Pão de Açúcar stores in São Paulo).

GPA Nutrition

GPA offers personalized nutritional guidance to employees, with the objective of contributing to a healthier lifestyle and providing nutritional technical support. In all, four nutritionists, including two at headquarters, one for the distribution centers in São Paulo and one in Fortaleza (CE), provided more than 3,000 sessions to employees during the year.

Annual and Sustainability Report 2013

Valuing our People

Valuing our People

169.959

89.575

80.384

35.842

30%

Profile of the employee <GRI LA1, LA2 and EC7>

Cycle of People <LA12>

Performance Evaluation MultiVarejo

Personnel development <LA10 and LA11>

Compacts on education <LA10 and LA11>

Compensation and benefits <EC5>

Highlights

Focus on communication

Pension plan <EC3>

Collective bargaining <LA4 and LA5>

Diversity < HR4>

Other initiatives

Occupational health and safety <LA6 and LA9>

Programs for risk education, prevention and control <LA8>

Focus on Quality of Life