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2019 Annual Ombudsman Report

Copyright Mars, Incorporated / Confidential. For Internal Use Only.

Independent Neutral Informal Confidential

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Contents

Ombudsman’s introduction 3

Why have an Ombudsman Program? 4

Meet the Ombudsman Team 5

Holding crucial conversations 6

Understanding our pay 7

P&O Transformation and the new normal 8

Associate Wellbeing more in focus than ever 9

2019 Ombudsman Contacts: At a Glance 10

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Twenty-three years ago, the Ombudsman Program

was established to provide an alternative channel of

communication to all Mars Associates, with the Five

Principles and Associate Concept at its heart. In recapping

the year, 2019 could be described as one of revitalization for

our program:

• New team member: We were delighted to

have Jutta Reitmeier join our team in July,

bringing with her a wealth of x-segment

experience, terrific functional skills from

Corporate Affairs and Consumer Marketing, as well as

knowledge of four languages to engage with Associates

in CIS, France, Germany, Estonia, Latvia, Lithuania and

Ukraine.

• New look and new ways to connect with us: After much

hard work, the team was proud to deliver a complete

overhaul of our Program materials including posters,

videos and a website – with a more contemporary look

and feel, aligned with our new Mars visual identity. We

hope you can now find it even easier to connect with us.

• Expansion into Mars Veterinary Health (MVH): With a

dedicated Ombudsman for MVH, we have been able to

launch and further embed the Program with all 49,000

Associates in North America in this fast-growing sector

of our business. Recognizing the unique challenges

of this group, which is widely dispersed across 2,300

North American hospital sites, we will be piloting our

Ombudsman Helpline, available 24/7/365 in three

languages commencing early in 2020 – providing yet

another way to connect with us and have your voice

heard in a confidential and informal way.

Ombudsman’s introductionWelcome to our latest annual report for the Mars, Incorporated Ombudsman Program, providing you with a glimpse into our year and the conversations that the Ombudsman Team has had across the business in 2019.

“Although I knew the program you

have is a fantastic one, it’s greatly

reassuring to hear the way you

operate.” – Ombudsman, McKinsey

To the more than 2,600 Associates who contacted us directly

in 2019, and to the nearly 16,000 Associates with whom we

have connected around the world, we thank you for putting

your trust in us and engaging with the program.

As a team we could not be more proud and engaged to be

part of a company that is so committed to providing this

additional level of support to its Associates. We believe

this helps differentiate Mars as a great place to work and is

completely aligned with our Purpose - "the world we want

tomorrow starts with how we do business today."

And if you have a work-related matter on your mind, why not

reach out to your Regional Ombudsman, because…“if you

need to talk, we’re here to listen.”

Debby on behalf of

Gabor, Isabel, Ish, Jutta,

Lorraine, Sam and Willem

Debby Hyde Corporate Ombudsman

Mars, Incorporated

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Why have an Ombudsman Program?We understand it’s not always easy or possible to share your concerns or feelings using formal business channels.

The Ombudsman Program provides an alternative channel

if you want to speak “off the record” about a work-related

issue. We find that Associates contact us when they:

• Want to talk or vent about a concern

• Want confidentiality and an “off the record”

conversation

• Want to get a different perspective

• Need a safe sounding board to identify or evaluate

their options

• Do not know where to take their concerns or need to

get more information

• Want to clarify company policies, practices,

procedures or decisions

• Want to present new ideas to improve the business

We will work with you to determine how we can best support

you, given your specific situation.

What will the Ombudsman actually do?

We want to support you in any way we can, and we offer a

number of services that Associates have told us they value.

These are described in more detail on the right and the graph

below shows how often Associates use each of the services.

How often do Associates use each of these services?

Information Only: You may want to talk through a situation or simply provide information to an Ombudsman. This might include being a sounding board to vent or express frustration, which often helps put a matter to rest or achieve personal closure. The Ombudsman are all very experienced Associates and can be a resource for a wide variety of information. They can be especially helpful on questions about the Mars Culture, the ways of working of the company and the history of Mars, for example.

Coaching: The Ombudsman can be your personal one-on-one coach offering guidance on a wide range of topics. For example, you can ask the Ombudsman to help coach you to resolve issues you might be having or help you work through career-related decisions. They can coach you through important discussions or meetings you are preparing for by having mock interviews or role playing. All this can be done in the strictest of confidence. The scope of how an Ombudsman can help you here is wide and we encourage you to talk to your Ombudsman to see how he/she might be able to assist.

Referrals: You might contact an Ombudsman because you are not sure where to go with a problem or want to discuss an issue prior to informing someone in a formal channel. They also provide guidance to you in seeking outside help or counseling, such as the Associate Assistance Program or other programs as needed.

Facilitation: If you explicitly request it, the Ombudsman can review a situation with a Line Manager, P&O or any other relevant parties to get a better understanding of your concerns. There is also the option of having the Ombudsman facilitate discussions between you and other relevant parties. In all cases, it is your choice on what you want to do, and whether or not you would like to remain anonymous during the facilitation process.

Mediation: The Ombudsman will facilitate a standard mediation process between the relevant parties, typically two to three Associates. The mediation process ensures that all parties have the opportunity to state what is most important to them, and then work with each party to determine possible solutions that meet as many needs of the parties involved as possible. In such cases, the Ombudsman does not take sides or make judgments; they will simply provide the framework for respectful, constructive conversations.

23%

Information Only

2018 2019

0%

10%

20%

30%

40%

50%

15%

23%19%

1% 1%

17%13%

45% 45%

Coaching Referrals Facilitation Mediation

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When you want to talk, our Ombudsman Team is here to listen.

Our Ombudsman Team is located around the globe and

has resources available for you 24 hours a day. Our contact

information is available on the Mars Ombudsman website.

Your Ombudsman Team is committed to providing the

highest standards of support and is guided not just by

our Five Principles and Associate Concept, but also by the

exacting requirements of the International Ombudsman

Association (IOA) “Code of Ethics and Standards of Practice.”

Meet the Ombudsman Team

Reach out to begin taking advantage of our support!

Debby HydeCorporate Ombudsman Based in Plymouth, UK (PLY)Language Spoken: English

Ismail (Ish) BakiAmericas Ombudsman – MVH Based in Phoenix, AZ USA (PHX)Languages Spoken: English/Spanish/Arabic

Isabel CalderonAmericas OmbudsmanBased in Hackettstown, NJ USA (HKP)Languages Spoken: English/Spanish/Portonol

Gabor KocsendaCentral EU/META/South East Asia/ANZ Ombudsman Based in Dubai, UAE (EXD)Languages Spoken: English/Hungarian/Arabic

Willem KweensEuropean Ombudsman Based in Veghel, Netherlands (VEG)Languages Spoken: Dutch/English/German

Lorraine MedalAmericas Ombudsman Based in Miami, FL USA (MOC)Languages Spoken: Spanish/English

Jutta ReitmeierCentral EU/CIS Western EU OmbudsmanBased in Munich, Germany (WUN)Languages Spoken: English/German/Russian/French

Sam ZhouNorth Asia Ombudsman Based in Beijing, China (HUA)Languages Spoken: Mandarin/English

Here is what Associates say about their experience!

“Having someone as a sounding board to develop

ideas is super helpful, especially when I work alone

and remotely via email the majority of the time.”

“I no longer feel stuck in a bad situation and now feel

I have a resource for any future concerns. What an

amazing program this is for Associates.”

“This advice helped me to move forward and on

from the issue.”

“This Program reaffirmed my faith in the Mars culture.”

“The Ombudsman is a great channel to raise concerns.

It was very helpful for me to unload the burden on my mind and vent out.”

“If it wasn’t for the Ombudsman I would probably have left Mars.”

We do appreciate your feedback, as it supports our effort to continuously improve the Ombudsman Program and to make it more relevant for your needs.

5

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Great communication is never a one-way street. Every one

of us can help ensure that communication is easy in a team:

• Ensure you are open to frequent conversations,

individually and as a team. Engage in regular

discussions with your Line Manager and ensure he or

she knows that you are interested in regular exchange.

• The ability to engage in crucial conversations is

an incredibly helpful tool. We have numerous

conversations all day long, and even a short

conversation might be more important than it

may first seem. If you would like to improve your

crucial conversation skills, have a look at “Crucial

Conversations,” a book by Kerry Patterson.

Holding crucial conversations

During the past few years, Mars has been going through

significant change. When we look at our environment and

the challenges we face in our respective fields of business, it

is fair to say that change will remain a constant, and necessary

to ensure that we set ourselves up for the long-term success

of our business.

Change can mean many different things – new teams, new

Line Managers, changed roles and different ways of working.

While all of this will have been put into place with a positive

outcome in mind, it can cause a level of uncertainty and

anxiety.

The Ombudsman Team has experienced an increasing

number of Associates during the past year contacting us

with questions, comments and concerns in the area of

Job & Performance. These contacts relate to recruitment

and selection, performance reviews, job evaluations,

restructurings, job termination, career development

opportunities and performance improvement.

During times of change, it is more important than ever that

Line Managers keep lines of communication with their direct

reports wide open and are well-equipped to conduct the

more difficult conversations. After all, if we understand

where we are going, what our objectives are and why our

manager would look at things in a specific way, we would

likely be far more engaged and able to contribute.

When Line Managers are confident in engaging in sensitive

conversations, they are able to provide their team members

with the stability, trust, compassion and hope they need to

be able to understand and contribute.

“I’m truly grateful that the company supports this Program as the Ombudsman was instrumental in helping to facilitate a conversation between myself and my Line Manager. I left the discussion feeling very optimistic that we could resolve the issue.”*

*All quotes are taken from 2019 Associate feedback to the Ombudsman team.

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Understanding our payDuring the past year we’ve noticed that many Associates

have reached out for help to understand one of the most

important reasons to come to work: their individual pay

and benefits. Overall, individuals had questions in three

different fields: Pay Philosophy & Design, Benefits and Pay

& Performance.

We’ve talked to global and local leadership and P&O

teams to ensure they are aware and can increase their own

communications on the subject, as well as train their Line

Managers to better understand and talk about the complex

topic of Associate pay.

Two key concerns Associates shared with us:

1. I don’t understand our AVP.

As the Associate Variable Pay (AVP) brochure states, AVP

has become an increasingly substantial component of our

remuneration offering, and as a result there is a strong need

from Associates to:

• Understand the variables of base pay vs. variable pay

vs. additional benefits and how they play together.

• Understand how much they can influence these

variables and, as a result, the outcome.

• Have regular communications about their AVP plan

throughout the year, both targets and progress, to

avoid surprises at year end.

The transparency of our pay methodology explained by the

annual compensation statements and new AVP brochure

is a big step forward to provide more clarity around all

remuneration components. At a local level, frequent updates

on business performance and the impact on AVP will be an

additional key to fully address any related questions.

Top three categories

Pay Philosophy & Design

Benefits

Pay & Performance

Other

32%26%

22%20%

2. Single Landscape – is it close to completion?

The adoption of Single Landscape (now called Pay

Framework) across the organization (i.e., the harmonization

of job levels as well as AVP, MPI and MSOP incentive pay

targets (the “pay mix”)) has been a multi-year journey and

has impacted practically every Associate in the business over

the last five years (excluding MVH). For some, those changes

were straightforward, happened at the beginning of the

transition and were a positive experience, while for others

the journey is not yet complete. This resulted in questions

to the Ombudsman Team from Associates (especially those

below the minimum) about when they will be "caught up."

Throughout, the Rewards team has been working in close

collaboration with the business and P&O partners to address

these concerns. They are taking deliberate action to ensure that

the pay mix for Associates is being consistently applied within

our pay framework. They are also ensuring individual plans are

in place for Associates whose pay falls outside of the standard

pay range (i.e., below 80% or above 120% of the pay reference

point), reflecting both performance and affordability.

“I really enjoyed the interaction and would definitely talk to the Ombudsman in the future. In fact, I wish

I had reached out earlier in my career.”

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P&O Transformation and the new normalOver the last few years, the P&O function has been on

a journey of reinvention, with significant changes in

organizational structure, ways of working within the

function and across the business, the reframing of roles and

responsibilities, and the use of technology. It is little wonder

that we have had many discussions with Associates over the

last 12 months and longer, who have found it difficult to

adapt to the changes or have felt unable to navigate the

new model effectively.

We would like to thank you all for reaching out, talking

about your concerns and explaining to us what you felt

was missing, as well as what’s working. Your input to

P&O directly (or to us) was a critical element for MyP&O

teams to work on improving Associates’ experience as

fast as possible, and to prioritize and course correct

wherever necessary.

While there have been frustrations and concerns, we

can recognize that the P&O team has responded to the

challenges and your feedback. In parallel with the global

deployments, they have been on a continuous improvement

journey – further simplifying processes and building

capabilities, all while navigating their own feelings about

the changes and supporting the business.

With any significant transformation there naturally comes

a period of transition before the changed ways of working

become the "new norm." Now that the global deployments

are complete and the model is in place, we can focus on

efficiency and effectiveness of delivery. Your continued

feedback to the P&O team is a valuable source of information

that will aid this work.

19%YoY increase in

contacts relating to P&O Transformation

“This was my first experience with an Ombudsman and after the call I feel like I should have had that many years before. This is a reliable way of venting things when needed.”

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Associate Wellbeing more in focus than everOur Associates are at the heart of Mars, and their personal

health and wellbeing is essential to the success of our

organization – today and tomorrow. Many Associates

have shared with us that they highly appreciate Mars'

strong focus and commitment to Associate Health

and Wellbeing.

We live in an age where non-communicable diseases and

social-, lifestyle-, and mental health-related concerns are on

a constant rise. The Ombudsman Team is hearing from an

increasing number of Associates (up 73% compared to last

year) about health-related issues which may be impacting

them, their peers or someone in their close family.

While we are here for you in situations like these, we are

neither doctors nor therapists. What we can do is help you

identify the right resources to support you further.

One contact we may refer you to is the Associate Assistance

Program (AAP). This external, confidential resource has

been rolled out to many of our countries already. If you’d

like to find out more about your site’s AAP, check out your

noticeboards, talk to your local Associate Relations partner

or reach out to us.

Locations that have AAP in place:

There are still gaps in AAP coverage, and around 15,000

Associates across 54 countries currently do not have access

to an AAP service. The Mars Global Associate Health and

Wellbeing team is working to close these gaps in 2020.

Moving forward, the team will establish a minimum scope for

all existing and new sites around the globe.

There is a lot you can do in terms of prevention and

precaution. The Mars Global Associate Health and Wellbeing

team has launched “Mars Be Well,” a comprehensive program

for Associates and Line Managers to ensure our Associates

have what they need to stay well and healthy. You may also

want to check out the Mars Health and Wellbeing mission

statement which reflects the company’s commitment to this

important topic and what it takes from both the company’s

and the Associates’ point of view to stay healthy. Remember:

“Healthy Associates bring more energy to work and home

every day, leading longer and higher quality lives.”

“I really appreciate my Ombudsman’s

insight, coaching and willingness to listen

to my situation.”

Americas: US

Canada

Brazil

Argentina

Europe: Austria (BBN, BRK, VIE)

Belgium (OLN)

France (STD, ERN, DOE, HAG/SXB)

Germany (RKO, VSN)

Netherlands (OBL, VEG)

Poland (WAW)

Russia (OKF, ISS)

Spain (CAF,MAD,RAD)

UK (PLY, ISB, MEL, SLO, THO,

WAL, KLN, RCS, LON)

APMEA: China

Australia

New Zealand

Kenya

South Africa

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6%

7%

2%

1%

We continue to see the vast majority of Associates that come to the Ombudsman achieve at least some level of resolution of their concern.

2019 Contacts byRegion Western Europe

12%Central Europe + CIS

8%

Asia Pac22%

META5%

Contacts bySegment

At a Glance

in contacts, partly as a result of expanding coverage to newly acquired businesses.

22% YoY increase

Total Contactsin 2019

2,621

Associate Touchpoints

15,948

through site visits, townhalls and small g roup meetings

vs. 11,336 in 2018

YoY increase, reaching

12% of Associates

41%

1 pt.

4 pts. 4 pts.

0 pts.

Americas53%6 pts.

Americas Western Europe

Central Europe+CIS

Asia Pac META

1,012

1,387

337 306 246 221450

572

97 135

2018 2019

2018 2019

Petcare

45%

Mars Wrig ley

41%

Food*

4%

Corporate/MGS

9%

The graph shows the breakdown of the 2,621 contacts we received in 2019 by seg ment.

* Food segment data is inclusive of Mars Multisales, low number of contacts from Edge & KIND were not included.

The graph shows what percentage of Associates from each segment contacted the Ombudsman in 2019. We calculate this by dividing the number of contacts from a segment during the year by the number of Associates in that segment.

Petcare Mars Wrigley CorporateMGS

Food*

1.8%1.3%

2.4%3.1%

6.6%6.0%

3.2%2.5%

Contacts byOutcome

Full Resolution

Partial Resolution

No Resolution

92%

92%

2018 2019

Contac ts byDemographic

The graph shows contact method statistics reflecting how the Associate first contacted us.

In 2019, we experienced rapidly increasing adoption of social media as a contact method by Associates.

Contac tMethod In-Person

Telephone

Social Media

32%

31%

29%

24%

27%

33%

17%

2018 2019

1 pt.

10 pts.

9 pts.

2 pts.

7%

57%43%

Gender

Female

Male

Role

Management

Non-Management

Non-Associate

2 pts.2%

39%59% 3 pts.

5 pts.

Tenure

>20 years

11-20 years

6-10 years

1-5 years

<1 year

10%

22%37%

24%

7%

2%

Global Leadership / General Management

Job Level

People Leadership

Technical Leadership

Business Operations

20%

39%

39%

Contacts byCategory

2018 2019

Leadership

36%33%

Job & Performance

30% 32%

Remuneration & Benefits

7% 8%

Behavior

6% 6%

Work Environment

4% 4%

Policy & Practices

5% 4%

Communications

2% 2%

Compliance

1% 1%

Other

9%12%

The graph shows the breakdown of the 2,621 contacts we received in 2019 by categor y. Over the past three years, there has been a sharp increase in the number of contacts related to the Job & Performance category. In 2019, 831 contacts were in this category, representing a 23% YoY increase.

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2019 Annual Ombudsman Report

Mars, Incorporated

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