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8 We analyzed a wide range of data including: • Monthly employee count report. • Monthly vacancy request process. • Workforce representation dashboard. • Culture scorecard. • External hiring data. • Retention data. • Exit interview results. The subcommittee also evaluated impacts to workforce representation as they relate to incoming workforce and employee turnover. 2018 Focus 2019 - Looking Forward Workforce Trends 2015-2018 Continue to sharpen our focus on employee retention and, specifically, those employee populations experiencing disproportionate turnover rates. Promote talent acquisition and talent management practices that lead to well-represented hiring pools. EMPLOYEE COUNT NEW HIRES AND PROMOTIONS REPRESENTATION 2015 2016 2017 2018 6,970 6,777 6,589 6,604 593 235 361 482 39.6% 39.6% 39.8% 39.9% We've reduced employee count to appropriately match the demands of our business. Reduced employee count brought fewer opportunities for new hires and promotions. There has been a slight increase of minorities and females in the workforce during this period. In 2019, we will continue to analyze workforce trends in employee count and representation, with two primary areas of emphasis. More than 45% of external hires are from underrepresented groups. Alabama Power has an average retention rate of 98.6% (excluding retirements). Over half of nonretirement turnover comes from underrepresented groups. Committee action: Approved company guidance on diversity of interview panels to promote an inclusive culture, minimize unconscious biases and ensure the selection of the best candidates for job openings. Data as of 12/31/2018

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