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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Introduction Our sustainability progress Our reporting F Flexible Packaging Initiative as part of our strategy to fill in gaps in film circularity. Ferrero recently joined the Flexible Packaging Initiative, where the six brand owners have agreed to increase investment and provide support for a series of public policy interventions to accelerate the transition toward a circular economy for flexible packaging across Europe. Participants to the initiative are committed to working with partners and governmental bodies to improve infrastructure and go beyond individual packaging design efforts, by providing concrete proposals to help enable effective collection, improved sorting and innovative recycling of flexible packaging across Europe. Circularity of flexible packaging needs complementary technologies to be further developed and the mass-balance approach as a bridge from a linear to a circular system. C Flexible Packaging Initiative Driving Circular Economy for Flexible Packaging in Europo Even where infrastructure for collection, sorting and recycling is not fully developed, it is crucial to have flexible films that are technically recyclable, that is, designed according to design-for- recycling guidelines. This will ensure these films can enter a waste-management system, feeding a valuable mono-material stream, as soon as the collection infrastructure is in place. To be part of the change, we have recently joined the Flexible Packaging Initiative (FPI) to further focus on the need for action on this circularity gap. Partnering with recyclers and national waste-management systems: To support waste-management improvements proactively, we are investing in R&D projects with peers to upgrade current sorting and recycling technologies. In detail, we collaborate with brand owners, researchers and technicians to: 1. develop artificial intelligence (Al) models to enhance the efficiency of the sorting process 2. update and improve sorting and recycling technologies for plastic packaging. Perfect Sorting and The Recycling Partnership projects to boost circularity of plastic packaging The need to improve sorting of packaging for better quality and increased quantities is part of the Ferrero vision and strategy to boost the availability of high-quality recycled plastics. Circularity of plastic packaging is developing at different speeds and with different geographical coverage. We're focusing on different areas with a dedicated approach. PERFECT SORTING CONSORTIUM In Europe, Ferrero is a founding member of the Perfect Sorting consortium, 19 together with other eight brand owners, an independent 'test and research' centre and two universities. The project aims to improve sorting of packaging waste by using Al. The goal is to develop an Al decision model to detect, identify and classify packaging beyond the current sorting streams. An Al decision model can help properly separate post-consumer waste, such as food and non-food packaging, and allow recycled raw materials to meet the specifications required to be used again for food-grade applications within a circular economy. These steps are necessary for recycling flexible, multi-material packaging. Collaboration among peers and organisations along the value chain, and across regions, is key to dealing with common challenges. The Perfect Sorting Consortium aims to make the Al decision model widely available for use in sorting plants in Europe in the coming years. Polypropylene Recycling Coalition THE RECYCLING PARTNERSHIP In May 2022, Ferrero joined The Recycling Partnership in an effort to increase recycling access and collection, legislative advocacy, consumer research and education, analytic tools with the national database and infrastructure investment in the United States. Within the partnership, we have joined the Polypropylene Recycling Coalition to take the lead in boosting rigid PP packaging collection and recycling. The coalition focuses on increasing education and access for people to recycle rigid PP packaging through kerb-side collection programmes, ensuring more recycling processing facilities can sort the material successfully, and stimulating a robust end- market of high-quality recycled polypropylene for reuse in packaging. Since the launch of the Polypropylene Recycling Coalition, in 2020, its grants have proven highly successful at rapidly affecting the recycling system. The Coalition has awarded multiple grants, improving PP recycling for nearly 8% of all US households and improving recycling for 20 million people in the United States 20. 19. Perfect Sorting Consortium: Assessing the future of packaging waste sorting (ntcp.nl) 20. Polypropylene Recycling Coalition 33 <
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