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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Cocoa (continued) Introduction Our sustainability progress Our reporting F Through our sustainability programme, we provide targeted support to cocoa farmers to improve quality and productivity, aiming to help them earn more from cocoa. As cocoa doesn't provide a year-round income, we also help farmers diversify their income and increase food security. We provide individual and tailored coaching and support to a large segment of our farmers to help them professionalise and diversify their operations. In 2021/22, 32% of farmers have received one-to-one coaching on farm and business planning and 20% are supported through individual long-term Farm Development Plans. In addition, 155,000 farmers participated in group training on good agricultural practices. We also supported so far 30,000 people in diversifying their on-farm and off-farm incomes through additional income-generating activities such as soap- making, chicken farms, beekeeping, grasscutters and small shops. By distributing high-yielding and resilient cocoa seedlings, farmers can rejuvenate and rehabilitate ageing cocoa fields. We distributed 1,740,000 cocoa seedlings in 2021/22 alone, making 7,300,000 in total since 2014/15. In addition, on top of the commercial and farm-gate prices set by some governments, we pay cash premiums to farmer groups, doing so for 172,000 farmers this year. Of these, we paid 19% digitally to increase financial transparency and help farmers become bankable. We are aiming to increase this percentage year-on-year. Finally, we involved 4,700 young adults in community-service groups or 'pruning gangs' to provide farming services to farmers. Human rights and social practices We promote human rights throughout the global supply chain, and tackle child labour in particular. We also support the children of families in cocoa-growing communities by providing access to education, good nutrition and basic necessities like clean drinking water. We do this through an integrated approach that combines activities at household, community, regional and national level, working with key partners. Given the critical role of women in bringing economic, environmental and social change, and ensuring child protection, we have a strong focus on empowering women. To support us in achieving our objectives we have a long-term strategic partnership with Save the Children, which we renewed in 2021. To address child labour effectively, we need reliable systems in place to identify households at risk. We want all farmer groups in our supply chain covered with a Child Labour Monitoring and Remediation System (CLMRS) - or equivalent system. Last season, we reached 99% coverage with our dedicated farmer groups. In addition, we informed 172,000 people about children's rights, and 138,000 people about adult forced labour; we monitored 129,000 households and 219,000 children through our child protection systems, and help them obtain 2,600 children's official birth certificates in 2021/22. To improve education prospects, we constructed or renovated 24 schools and 18 school canteens in 2021/22, bringing the total respectively to 103 and 49, and gave 21,000 children school kits. We also supported 221 youth with vocational training in 2021/22, bringing the total to 503 since 2018/19. On the community side, there were 1,536 Village Savings and Loans Associations (VSLA) involving 38,000 members, of which 23% were women, that together saved over 2.1 million euros in 2021/22, of which 1.4 million euros was loaned to set up small businesses, pay school fees and similar. We also established three vegetable greenhouses in 2021/22, bringing the total to 130 since 2018/19, and constructed or renovated 33 water pumps in 2021/22, bringing the total to 155. Finally, we started phase 2 of a Community Development project with Save the Children, involving the remaining 33 communities, meaning that now all 65 communities in the Haut-Sassandra region in Ivory Coast are on board. Part of our strategic approach is also our membership since 2008 of the ICI, a multi- stakeholder platform of industry and civil society which aims to ensure a better future for children and to advance the elimination of child labour in Ivory Coast and Ghana, and the public-private partnership CLEF, which aims to promote good-quality education and early childhood development for over 6 million children in Ivory Coast. 24 103 Schools constructed or renovated (2021/22) U 18 TR Canteens constructed or renovated (2021/22) Total schools constructed or renovated 49 Total canteens constructed or renovated 21,000 Children given school kits (2021/22) 221503 Youth supported with vocational training (2021/22) supported with vocational training since 2018/19 42 <
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