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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Introduction Our sustainability progress Our reporting F Lapo Civiletti Chief Executive Officer, Ferrero Group Despite a challenging economic and geopolitical environment for all businesses, the Group was able to grow and to increase investments in its brands, R&D and production capacity. These investments represent our continuous approach to improving the quality, freshness and safety of our products, while reducing our environmental impact, all of which you can read about in this report. Ferrero closed the financial year with a consolidated turnover of 14 billion euro, an increase of 10% compared to the previous year's turnover of 12.7 billion euro. The Group now comprises 109 companies and 32 manufacturing plants around the world, selling in over 170 countries directly or through distributors. Our workforce, as of 31 August 2022, comprised of over 41,400 employees, 2,600 more than the previous year. Dataset. WRI has also applied its Deforestation Risk Assessment methodology to the dataset. This year, we bought about 97% of our entire cocoa volume from farmer groups we support With our sustainability work structured in four through our sustainability programmes, of major pillars, we have made excellent progress towards the objectives we have set ourselves. I would like to mention some of this year's highlights, of which you can read more in the report that follows. As regards the environment, we have developed a Climate Plan that focuses on decarbonising our industrial activities, based on technological interventions. It is structured at corporate and factory levels. Our Scope 2 emissions (market-based) are now less than half what they were two years ago. Wastewater has decreased over the past two years, and waste levels from production are also in decline. We are also proud to report that 88.5% of our packaging is designed to be recyclable, and we have partnerships for each of the four steps of our packaging roadmap to 2025 and beyond, to help us continue to make progress in our desire to offer more sustainable packaging. We have also made great strides in sustainable sourcing. This year, we completed our four-year Cocoa & Forests Initiative (CFI) Action Plan. We reached the targets we set back in 2018 and, in many cases, surpassed them. Our new plan in development will have targets for 2025. Along with other CFI companies, we also shared substantial farm data and mapping in Ivory Coast and Ghana with the World Resources Institute (WRI) to create a collective Farm which 82% from our dedicated farmer groups. We sourced all cocoa through certifications and other independently managed standards. Moreover, we continue to implement a holistic community-development programme with Save the Children in 65 communities in the Haut-Sassandra region in Ivory Coast, in close collaboration with the local authorities and our suppliers. We achieved 79% traceability for the hazelnuts we buy. Chile, Argentina, France and the USA all confirmed they were fully traceable after implementing the Sourcemap platform. We continue to meet our target to source 100% RSPO-certified sustainable palm oil for our historical Ferrero brands and for Thorntons. For other recently acquired brands, we are working to achieve the same, and now source 99.4% RSPO-certified palm oil across all our brands. We use only cage- free eggs within the EU (around 93% of our total egg use) and source 100% cane sugar certified by Bonsucro. In late 2022, we also published our new Dairy Charter, which you can read more about on page 54. For our people, we have set long-term diversity and inclusion goals for 2030, which relate to gender, nationality, generations, working culture and persons with disabilities. At the end of June 2022, we finalised the acquisition of FULFIL Nutrition, a company making high-quality vitamin and protein bars, as part of our strategy to meet the evolving health needs of consumers. At Easter 2022, we needed to recall Kinder products manufactured at our plant in Arlon, and in collaboration with Belgian food safety authorities, suspended our production there. Food safety, quality and consumer care have been at the heart of Ferrero since the company was founded. This serious event goes to the core of what we stand for. Therefore, we've made significant investments, updated equipment, installed new lines, and updated safety protocols and training, to preserve the full trust and confidence of our consumers. The authorities gave the conditional permission for the reopen in June and confirmed the production licence in September 2022. You can find out more about our sustainability initiatives in this report as well as on our website. I hope you will find it interesting and informative, and I welcome your feedback. Lapo Civiletti Chief Executive Officer, Ferrero Group 05 <
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