Investor Presentaiton

Ferrero Group Sustainability Report 2022 Cocoa Introduction Our sustainability progress Our reporting F Cocoa is a fundamental ingredient in our products. Our distinctive sourcing approach is based on our promise of quality to consumers, as well as our ambition for a cocoa industry that's good for people and nature. A challenging context Ivory Coast and Ghana, two neighbouring countries in West Africa, together account for about 65% of global cocoa production, produced by about 2 million mainly smallholder farmers. We source most of our cocoa from these two countries, complemented by Nigeria, Cameroon, Ecuador and Colombia. The challenges in the cocoa supply chain, especially in West Africa, are complex. Many farmers live in poverty, which is one of the root causes of other systemic issues, including child labour, forced labour and deforestation. Breaking the poverty cycle and supporting farmers in making cocoa farming a profitable and sustainable business is key to improving livelihoods. But to be successful, we need a smart mix of initiatives, including those aimed at increasing farmers' resilience to climate change, empowering women, providing children access to good education, and holistic community development programmes. No stakeholder can solve these complex issues alone. We are therefore collaborating closely with industry, government, civil society and others to address agricultural, social, environmental and business issues in cocoa farming. Our distinctive sourcing approach At Ferrero, we do not simply buy materials, we manage and nurture our supply chains. As stated in our Cocoa Charter, published in early 2022, our ambition is to be a driving force in the cocoa sector where: • Production creates value for all. • We improve the livelihoods of smallholders and farming communities. • We respect children's rights. . We protect the environment and enhance it through sustainable agricultural practices. Our activity along our supply chain as part of the four pillars of our Cocoa Charter is closely linked and part of an integrated, holistic approach. We also have a strong focus beyond our own supply chain, through our active engagement in various multi-stakeholder platforms and collective initiatives. We are a long-standing member of the World Cocoa Foundation (WCF) and the International Cocoa Initiative (ICI). We are also a founding member of the Cocoa & Forests Initiative (CFI), which aims to tackle deforestation and land degradation in Ivory Coast and Ghana. The CFI model is considered by many stakeholders as a best practice for collective action. Ferrero is also one of the partners of the Child Learning and Education Facility (CLEF) - a public-private partnership between the Ivorian government, industry and donors that through an innovative approach aims to provide children in cocoa-growing communities in Ivory Coast access to quality education. For us, a key priority is to know who and where our suppliers source our cocoa from, and the conditions it is produced under. This supply chain visibility is essential, to assess if there are any non-compliances we need to address, or actions we need to take to improve conditions. Our distinctive sourcing approach puts us in a strong position to achieve this. In 2021/22, we sourced about 70% of our cocoa as cocoa beans and processed them in-house for products like Nutella. The beans we buy are physically traceable, also known as 'segregated', which means we know which Cocoa Charter 01 02 Human rights and social practices Sustainable livelihoods Ferrero committing to support cocoa farmers Farmers receiving targeted support to improve cocoa farming and diversify income Ferrero committing to provide children joyful growth Community Development programmes and woman empowerment activities to protect children's rights farmers produced them. This high level of traceability is further strengthened through long-term relationships with our direct suppliers and with farmer groups, and by requiring our suppliers to polygon map the farms of the farmers they get our beans from. In 2021/22, we sourced 82% of our entire cocoa volume from Ferrero-dedicated farmer groups we support through our sustainability programme. Of these, 80% have been in our cocoa supply chain for three years or more, and 15% for six years or more. This is important, as improving conditions takes time. Environmental protection 03 33 Ferrero committing to help end deforestation and promote biodiversity Farmers supported to apply agroforestry systems in our value chain FERRERO парольво Traceability, risk assessment and transparency Ferrero realising a transparent and compliant value chain 04 14 High level traceability, risk assessment, progress disclosure The four pillars are founded on a DUE DILIGENCE PROCESS which covers all Ferrero suppliers. 40

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