IN 2017, ENAEX CONTINUED WORKING TOWARD MEETING ITS STRATEGIC CHALLENGES OF "BECOMING A GLOBAL COMPANY ABLE TO OPERATE IN A MULTINATIONAL ENVIRONMENT AND BEING THE MINING INDUSTRY'S MOST PRESTIGIOUS COMPANY, DELIVERING HIGH-VALUE SOLUTIONS TO THE WORLD'S MOST IMPORTANT MINING REGIONS.

AS PART OF THE TRANSFORMATION, THE FOLLOWING MAIN INITIATIVES WERE IMPLEMENTED IN 2017.

ORGANIZATIONAL CULTURE

CULTURE CAMPAIGN: “WE ARE ONE”

In 2016, the leadership of all Enaex S.A. subsidiaries came together to identify the Company's corporate values. This year, these corporate values were launched under the “We Are One” slogan in all the countries in four different languages (English, Spanish, French and Portuguese). The culture campaign was relaunched to continue integrating subsidiaries around the world.

In the second half of the year, the ”Our Priority: Life” value was promoted around the world with activities to support exercise and healthy eating as well as initiatives to create a culture of safety and environmental protection. The campaign will culminate in April 2018 with a group of employees from all subsidiaries participating in the Santiago Marathon (42 km and 21 km).

ORGANIZATIONAL CLIMATE

For the second straight year, an organizational climate survey was conducted throughout the Company, including employees from Enaex subsidiaries in a total of 9 countries. This enabled the Company to continue learning about employee perceptions regarding important issues like leadership, benefits, development opportunities, among others.

Organization-wide action plans have been drafted to address the issues raised in the survey.

RECOGNITION PROGRAM

The recognition campaign, which aims to foster a culture that encourages positive employee actions, continued in 2017. This year, the number of awards increased by around 122% to a rate of 11.36 per person as of December. Each year, the program culminates with the Enaex Spirit (Espíritu Enaex) award.

FLEXIBLE BENEFIT PROGRAM

The flexible benefits program allows employees to select benefits based on their individual needs. Available benefits include time off and bonuses. Launched in 2014, the current program participation rate is 98%.

PEOPLE AT THE RIGHT TIME

TALENT DEVELOPMENT AND SUCCESSION PLANS

The Company uses a performance-potential matrix to map and monitor its professional teams. Executives meet periodically to identify critical positions, succession plans and relevant facets. This year, we performed skill assessments at all Enaex S.A. subsidiaries.

THE INTEGRATION PROCESS

The professional exchange between all Enaex S.A. subsidiaries is one of the Company’s top integration initiatives. It seeks to create collaborative networks between the subsidiaries, share best practices, identify potential synergies and align cultures.

INTERNAL MOBILITY

This year, approximately 70% of vacancies were filled from within the Company, including both international and domestic placements.

TRAINING

The Company provided more than 61,000 training hours, reaching 71% of the workforce with an average of 35 hours per person. This is an increase from the 2016 figure of 38,000 hours reaching 58% of the workforce. The Company ensures that training covers technical specialization, certifications and retraining for critical positions. Furthermore, the Enaex Training Center created a strong job training program and launched four schools focused on developing technical skills: leadership, service, production and support. Furthermore, the CFE launched an on-line training platform featuring e-learning courses and an enhanced registration process for face-to-face courses.

One of the major production plant programs was “Career Development at the Prillex Plant”. Offered in partnership with Universidad Católica del Norte’s Technical Training Center, the program aims to help the plant’s maintenance and production operators expand their knowledge and certify their skills. The largest service plant training program was “Recertification of Skills and Preparation of Mobile Manufacturing Units Driver Operators”, which seeks to standardize drivers roles at service plants.

TRAINING SCHOLARSHIP PROGRAM

Forty-six employees had their studies funded by the scholarship program. The initiative gives preference to programs leading to technical and professional degrees over graduate degrees.

LEADERSHIP PROGRAM

The “Leadership Pipeline” project stands out among efforts toward cultural integration and standardizing leadership at the different Enaex S.A. subsidiaries. The program’s four leadership levels are: leader of self, leader of others, leader of leaders and senior leader.

Face-to-face classes were offered in Chile. At the international level, online trainings in four languages were designed and offered at all subsidiaries.

One highlight in operational leadership was the development program for high-potential professionals at service plants. This program trains participants on labor legislation, accountability and other areas in order to develop their leadership roles.

SUPPORT INFORMATION

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As of December 31, 2017, the company had a workforce of 3,416.

LABOR RELATIONS

The Union Leader Training program continued in 2017 with participation in the “SK Group Operational Leaders Program” and training specific to collective bargaining. The unionization rate was 53%, down from 54% the previous year.

The Company concluded three successful collective bargaining processes. It reached agreements with the Basic Services and Emergency Teams unions that were approved by the Labor Bureau.

ORGANIZATIONAL DIVERSITY

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* At Enaex, the salary gap between men and women is around 3.4%.