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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Introduction Our sustainability progress Our reporting F Environmental protection The rate of deforestation and forest degradation, particularly in Ivory Coast and Ghana, threatens to undermine the resilience of the cocoa sector and the surrounding environment, and accelerate the climate, biodiversity and natural resource crisis. This affects the livelihoods of the millions of smallholder farmers who depend on it. Working with our suppliers, we're contributing to ending deforestation and restoring forest areas, and supporting farmers in converting to agroforestry systems and becoming more climate-resilient. We do this through the CFI, which brings together companies and governments to act collectively and in a coordinated manner. To prevent deforestation, we aim for traceability back to farm level and use satellite monitoring to monitor potential deforestation and ecosystem conversion in our supply chain. For all our cocoa in the 2021/22 season, we reached complete traceability back to farmer groups, 96% back to the farms with GPS locations and 89% polygon-mapped 5. We compare the farm locations with official maps to check compliance with our no-sourcing policy for farms in national parks and protected forest areas. In 2021/22, we also covered 470,000 hectares with deforestation risk assessments and restored almost 1,400 hectares of forest area of which 17% are in protected forests. As a cross-cutting solution to many cocoa sustainability issues, agroforestry is one of our primary Charter priorities, and links to other targets such as distribution of seedlings. To date, we have supported the development of over 140,000 hectares of agroforestry, involving a total of 77,000 farmers. We have trained 70,000 farmers in climate-smart farming. So far, we have supported the distribution of 7.3 million cocoa seedlings and almost 5.6 million native and multi-purpose tree seedlings. We also supported 10,000 farmers with Payments for Environmental Services (PES). Traceability, risk assessment and transparency Our results demonstrate our strong focus on traceability which, from the very beginning, has been the cornerstone of our responsible sourcing approach. Supply chain traceability has always been one of the key quality and sustainability pillars at Ferrero. Our ambition is to have full visibility of our cocoa supply chain to understand issues and risks, and address them. The total cocoa volume we received in 2021/22 was close to 224,000 metric tonnes (MT), of which 68% was cocoa beans processed in-house, with the remaining 32% being cocoa derivatives such as liquor, butter and powder, and chocolate products. It was all sourced through independently managed sustainably standards such as Rainforest Alliance, Cocoa Horizons and Fairtrade. In 2021/22, we published a specific Cocoa Report for the first time, where we stated the progress made on our Ferrero Cocoa Charter, published early 2022. 5. Polygon mapping is achieved by trained specialists who walk around the cocoa farm noting GPS points through which they can identify the location of the farm precisely and measure its size. Based on this, they can then verify a farm is not located in a protected forest, and estimate more accurately the total volume a cocoa farmer can produce. This method is more precise than others, which collect only a single GPS point for a farm. 6. See page 9 of the Cocoa Charter for the full list of Standards through which we source cocoa. ^ 43
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