The document discusses how HR can better support the business strategy through developing a new HR operating model and compliance model. The key points are: 1) HR aims to transition from an administrative function to strategic business partners that provide workforce management counsel and ensure policy/regulatory compliance. 2) The new HR operating model splits responsibilities between business partners, operations, and centers of excellence to better support strategic priorities and business needs. 3) The compliance model aims to formalize critical HR rules, ensure practices are coherent across sites, and reduce risks from audits through collaboration with compliance teams.

1. How can HR make the difference ? Hugues Berlemont Head of Global HR Compliance

2. HR Vision A pro-active, highly effective, business focused and value adding global function. A function that has the capability, capacity and attitude to influence and support the business agenda.

3. How to define the HR Strategy ? Corporate Strategy Local Business context Input from Management team and other Business Leaders Input from HR Management team & HR Community Corporate HR diagnostic survey of senior business leaders and HR leaders

4. HR Strategic Priorities Talent Management Improve Talent Sourcing and Development to deliver the ambitious business perennity Build the leadership, technical and organisational capability to ensure the company can sustain her ambitions Ensuring the strategic capabilities Leveraging Cultural Change to enable the successful delivery model Supporting the cultural Change Ensure the capacity, capability and attitude to successfully influence and support the business agenda HR Capability

5. Two Major projects within HR Enabling of two linked strategic projects : Designing a new HR Operating Model Development of a HR Compliance Model Final objectives are : Efficiency Return on Investment Customer satisfaction

6. 65% Administration Business Partnering Policy/ Planning 25% 10% OLD HR service delivery model Less administration More strategic workforce management More counsel to leadership on HR best practices and business Business Partnering Policy/ Planning NEW HR service delivery model Adminis- tration 25% 50% 25% Manager & Employee Self-sufficiency Process: Enabling Improving Leveraging Requires Effective Change Management Streamline Admin. Redefine HR Role Build Capabilities HR Service Operating Model Transition

7. HR Service Operating Model HR Business Partners Business focus HR Operations Deployment focus (operational & transactional) HR Centers of Excellence Expertise focus BUSINESS How the HR Service Delivery Model functions as a Triangle Focus on HR Strategic priorities Request for HR specific operational & transactional support Implementation of business specific operational & transactional support linked to contractual & compliance specs Request for business specific operational & transactional support

8. Strategic Consultative Transactional Administrative Talent Enabled Technology Enabled Core HR Competencies HR Service Operating Model

9. 1. Growth of the company, multiplication of sites and development of autonomous businesses require more clarity from HR 2. More formalization of HR rules / practices and more certainty about their right application is required 3. Suppress / reduce risks in case of audits Current Situation Coherence & consistency More clarity, precision and certainties of the company policies and practices Certification Broadcasting and knowledge of the practices with regard to the adequate partners. Vision in 2 axes HR Compliance Model

10. BELGIUM & INTERNATIONAL COLLABORATION WITH COMPLIANCE TEAMS : Link with Belgian structure Link with Corporate structure HR Compliance Model SET UP OF THE COMPLIANCE PROGRAM : Alignment on the compliance vision Support / writing / coordination of the formalization of critical HR Rules Ensuring the compliance with Global / Corporate programs Support / advice role / follow-up in case of audits STRUCTURATION OF THE COMPLIANCY STUCTURE : Set up & lead of the Compliance Networks Formal and regular coordination process

11. Expected outcomes Improved HR service with standardized and simplified processes & rules Increased HR capability as strategic partners equipped with accurate, timely data & rules and outcontracting non adding value activities Reduced HR costs due to streamlined and integrated systems and approaches HR productivity gains due to real-time access to critical data Enhanced controls provided by integrated systems to ensure compliance & remediation Increased HR job satisfaction as valued business partners

12. Support the roll-out of our strategy Our strategic orientation must be clear at all levels of the organisation. Ensuring everybody understands the direction we are heading in will ensure that the many activities carried out every day in our organisation are all aligned in the same basic direction : Deliver services of value to our customers’ expectations.