Arla Foods Annual Report 2020

Management Review Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance Our Performance Review Our Consolidated Financial Statements Our Consolidated Environmental, Social and Governance Data INDEPENDENT AUDITOR'S COMBINED ASSURANCE REPORT TO THE STAKEHOLDERS OF ARLA FOODS AMBA At the request of the Management of Arla Foods Amba (hereafter Arla) we have performed a combined reasonable and limited assurance engagement on the environmental, social and governance (hereafter ESG) statements in the Annual Report on pages 121-133 for the period 1 January 2020 to 31 December 2020. As a result of our assurance engagement we shall conclude whether the information in the ESG statements in the Annual Report is free of material misstatement and has been prepared in accordance with the reporting approach and criteria described on pages 121-133. The degree of assurance expressed in the conclusion is reasonable except for the Scope 3 calculations on farm level, found on pages 122-123. For this indicator the assurance expressed is limited. Management's responsibility Arla's Management is responsible for selecting the reporting approach and criteria described on pages 121-133, and for the preparation and presentation of the ESG statements in the Annual Report in accordance with the reporting criteria. This responsibility includes establishing and maintaining internal controls, maintaining adequate records and making estimates that are relevant to the preparation of the ESG statement in the Annual Report, such that it is free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express a conclusion on Arla's ESG statements in the Annual Report based on our procedures and evidence obtained. We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial In-formation (ISAE 3000) and additional requirements under Danish audit legislation. Those standards require that we plan and perform our engagement to obtain limited or reasonable assurance about whether, in all material respects, the ESG statements in the Annual Report is presented in accordance with the reporting approach and criteria described on pages 121-133, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risk of material misstatement, whether due to fraud or error. Our independence and quality control We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and additional requirements applicable in Denmark and have the required competencies and experience to conduct this assurance engagement. EY Godkendt Revisionspartnerselskab is subject to the International Standard on Quality Control (ISQC) 1 and thus uses a comprehensive quality control system, documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable requirements in Danish law and other regulations. Description of procedures performed As part of our examination, we performed the below procedures: Interviews of relevant company professionals responsible for sustainability strategy, management and reporting, to understand the systems, processes and controls related to gathering and consolidating the information Conducting interviews with representatives from reporting dairy sites to obtain understanding and evidence of the data gathering, controls and consolidation process on site level. Conducting walkthroughs of processes to assess whether data have been collected and assessed as prescribed in Arla's manual for collection of ESG data Analytical reviews, including sensitivity analysis, trend analyses against previous period and cross-analysis against applicable parameters, of data supplied by Arla Evaluation of the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management Obtain evidence on a sample basis that the information reconciles with underlying Arla documentation Evaluation of relevant internal and external documentation, on a sample basis, to determine the reliability of the non-financial information Evaluated the consistency of the information in the ESG statements in the Annual Report with the information in the Annual Report which is not included in the scope of our audit We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion below. The procedures performed on the information in scope of the reasonable assurance are more robust than those performed in connection with the limited assurance and therefore higher assurance is obtained than in a limited assurance engagement. Hence, the conclusion based on our limited assurance procedures does not comprise the same level of assurance as the conclusion of our reasonable assurance procedures. Since this engagement is combined, our conclusions regarding reasonable assurance and limited assurance are presented separately below. Conclusion In our opinion the information in Arla's ESG statements in the annual report for the period 1 January 2020 to 31 December 2020 which has been subject to our reasonable assurance procedures have, in all material respects, been prepared in accordance with the reporting approach and criteria described on pages 121-133. Based on the limited assurance procedures we have performed, nothing has come to our attention that causes us to believe that the information in Arla's ESG statements in the annual report for the period 1 January 2020 to 31 December 2020 subject to our limited assurance procedures is not prepared, in all material respects, in accordance with the reporting approach and criteria described on pages 121-133. Viby, 10th of February 2021 EY Godkendt Revisionspartnerselskab CVR-nr. 30700228 Henrik Kronborg Iversen State Authorised Public Accountant MNE no. 24687 Carina Ohm Associate Partner Head of climate Change and Sustainability Services 134 ARLA FOODS ANNUAL REPORT 2020

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