2Ο18 GROWN SUSTAINABLY

www.chipita.com Contents

04-05 06-07 08-11 CEO’s address Our presence Our owned across the world manufacturing plants

12 13 14-15 Our people Us at a glance Our mission

16-17 18-19 20-21 Our values CSR activities Added value & pillars for all

22-23 24-31 32-33 Commitment Care for Unique quality to the Environment society products

34 Corporate governance

3 Chipita CEO’s address

In December 2018, Chipita completed As far as the future is concerned, it can be 45 years of operation. summarised into just 4 words. We continue to dream. We do nοt feel that we have reached Throughout these years, all of us, jointly, have our goals, as we are aware that everything in life created a company we are proud of. Proud constantly evolves. because we built a company that today is the leader of the food industry in , and, as Thus, Chipita of 45 years old, wishes to per our daily experience, with products able continue evolving. In new markets, with new to satisfy the needs of people with completely products and plants, by building added value different tastes. for its stakeholders, its employees, its suppliers, a lot of which grew up and continue to prosper Obviously, we are proud for all you will read with us. We dream to continue creating. in the following pages of our social impact report. Above all, we are proud that everything Before closing, I would like to thank all of the we have accomplished, was done without employees for their constant effort. There is no compromising our values; all of which is international company created without sacrifices expressed with the word ‘respect’. Respect from all of its employees, without continuous to the consumers of our products, respect to trips for some, without staying in challenging our employees, respect to all of our operators, parts of the world under difficult circumstances, respect to the legal frameworks of all the without staying up late for thousands of my countries we operate in and respect to human coworkers. values. I thank you from my heart and I hope that We believe we are entitled to think of our by reading this report, you will feel that your company as a positive cell in every society we sacrifices and efforts have paid off, as we are present. have all, together, created a junior 45 years old company, which grows on a daily basis and is now ready to open its wings and fly stronger furthermore.

Thank you. We continue to dream. We do nοt feel that we have reached our goals, as we are aware that everything in life Spyros Theodoropoulos constantly evolves. CEO, Chipita SA, Greece

5 Chipita was founded in Greece 45 years ago. Since then, it has grown and expanded to 56 countries in Europe and across the world. Today, it has a very strong international footprint.

Through direct investments, Chipita has established a significant presence in Europe, while operating through strategic partnerships in Egypt, Saudi Arabia, Malaysia Mexico and India.

The company distributes its products: The group has Our presence 7 owned Through joint manufacturing plants Directly to ventures to across the world 43 countries, in Europe 13 more (Greece, , , Russia, and 29 of which are supported ) with 37 production lines. Through joint by advertising countries ventures, 10 more plants with 36 production lines operate in Egypt, Saudi Arabia, Mexico, Malaysia and India.

6 7 Our owned manufacturing plants Greece

Chipita owns 7 manufacturing plants in 6 countries across Europe, with state- of-the-art facilities that ensure high production capacity as well as the excellent quality and nutritional value of the company’s products.

Chipita’s plants contribute to employment and to the welfare of local communities, while offering exemplary health and safety conditions for workers. 9 production lines

Bulgaria

6 production lines

8 9 Romania Poland

7 5 production production lines lines

Russia Turkey

7 2 production production lines lines

10 11 Our people At a glance

Our people are our most important asset. They are the ones that convert our vision into reality. Chipita’s number of employees, as of 31.12. 2018, was over 17% of employees have higher education degrees, while 10% We believe in the talent of We provide our people with a Finally, we offer our employees 4,700 are part of middle our people and we care for safe, non-discriminatory working and their families a system of and upper management. their development. This is environment. We recognise and additional social benefits that we why Chipita, as a responsible reward effort and results. constantly evolve and improve. employer, invests in the development of human resources We treat every employee as a In the JVs that the company related, modern management distinct personality, with respect participates with minority systems, constantly updated and to culture and background. This shares, the total number 38% improved. allows talent to be nurtured, in all of employees exceeds of the middle and upper countries we are active in, and management team, is made up of Chipita to create better business practices that move all together women. the company, its people and 6,800 society, forward.

Out of all employees 30 52% different are women. nationalities

AGE CLASSIFICATION OF CHIPITA EMPLOYEES

2000

1584

1500 1309

1000

821 839

500

39 115

0

18-20 20-30 31-40 41-50 51-60 60

12 13 Our mission

Our mission is to offer to our global consumers Products that we develop, produce and distribute products of high nutritional value, that are to the market, ensuring the best cost-benefit ratio innovative and safe. of quality and price.

Our objective is to provide added value for all company stakeholders

14 15 High Trust Ethics quality and integrity and meritocracy

For us, quality is everything: We always aim towards building We always make our choices Our responsibility towards the long-lasting relationships, with on the principles of sound Our values consumer and our competitive solid foundations. That is why entrepreneurship. Since our advantage. We emphasise the we attach great importance to company’s establishment 45 quality of our raw materials developing a mutual sense of years ago, transparency, ethics and we apply rigorous control trust with our consumers, as well and meritocracy have been the For 45 years, we move forward with our values set being our compass. Values that reflect systems, certified by reputable as our internal and our external cornerstone of our activity at our sense of responsibility towards our employees, our customers, our consumers, the international organisations, partners. At the same time, we all levels. societies we operate in and the environment. Values that are always at the core of our ensuring that the products we operate with non-negotiable corporate decisions while they determine our respective actions. produce are of high nutritional integrity vis-à-vis our investors, value for our consumers. as well as the operators and communities with which we interact. In this way, we create lasting and solid relationships.

Innovation and Social and Respect on-going environmental and legal improvement responsibility compliance

Innovation is at the core of The greatest challenge of our We operate in 56 countries our philosophy. We relied on time is sustainable development. worldwide. In each of these, it to reach where we are today. We respond to it with respect and in any other country we It is what differentiates us and and sensitivity towards the will expand to in the future, is the key pillar based on which environment and the society. we will respect and fully comply our group continues to grow. We look to the future and, with with the law. We are bound We create innovative products the support of research and by our code of ethics to act tailored to the new dietary needs technology, we evolve and honestly and with a sense and contemporary lifestyle of develop responsibly. of social responsibility, our consumers. We invest in abiding by the law of each technology and research, state and fulfilling all related to ensure the ongoing tax obligations. improvement of our products and processes.

Our values are always at the core of our corporate decisions while they determine our respective actions.

16 17 Sustainable growth and added value creation for Our CSR all stakeholders are key priorities for Chipita. The company’s corporate social responsibility actions action in 2018 were developed around them. pillars

01. 02. 03. Added Commitment towards Care for value for all the environment society Operation with benefits Actions to manage natural resources Company initiatives as a for all stakeholders. and reduce energy and pollutants. responsible employer and citizen of the communities in which it operates.

18 19 Added value for all 01.

Through its optimal business operation, Chipita aims to create added value for all company partners and stakeholders.

In 2018, Chipita’s activities supported the wider economy in the following ways, as it contributed from its operations:

€ 351 million € 73 million € 19 million € 15 million € 27 million to local and to employees, for taxes to state to its shareholders in capital investments international salaries, insurance and local authorities, for the future suppliers and social benefits in all countries in development which it operates of the Group

20 21 Commitment to the Εnvironment 02.

Implementing a sustainable and responsible environmental policy is a key principle of Chipita’s philosophy, as well as the company’s duty towards the societies it operates in.

The company is committed to protecting the natural environment throughout the production chain, regardless of the financial burden on its operating costs. Looking towards the future, with the support of research and technology, responsible production methods and suppliers are being chosen.

Supplier Reducing Actions for selection plants’ footprint footprint reduction

Chipita has been long committed to Despite the fact that Chipita’s manufacturing sustainable and responsible growth, with plants are characterised by low environmental prudent management of environmental impact, the company focuses on actions resources. This is why we choose suppliers that reduce their footprint. During the 2016- who share the same principles and hold 2018 period, €750 millions were invested RSPO and UTZ accreditations. in reducing the environmental footprint of all production plants, through co-ordinated Reduction Reduction Reduction Recycling 4,099 UTZ: The supplying companies are UTZ actions. of electricity of water of electricity tons of paper in certified, proving that they tolerate neither consumption consumption consumption 2018, equivalent compulsory and/or child labour, nor any per kg of product per kg of product by 540,000 kilo- to the destruction discriminations. produced by 1.2% produced by 7.9% watt-hours per year, of 69,700 trees. in 2018, compared in 2018, compared resulting in a reduc- RSPO: Companies that are part of the to 2017. to 2017. tion of carbon dioxide global initiative for responsible sustainable emissions of 240,510 development with integrity, for the proper kg due to the re- management of environmental resources. placement of LED lamps from 2016 to 2018.

22 23 Care for society 03.

As a responsible corporate citizen being guided by our core principle for respect towards our people, we create value for the society. We invest in a series of acctions and initiatives that aim to improve the lives of the people around us and create optimism for the future.

24 25 A key concern for Chipita Lifelong learning The total training hours is the offering to its people for 2018 were 27,000, of a work environment that One of the most important covering the following areas: ensures respect, safety investments a company can make and equal opportunities. is in knowledge. Chipita gives 1. Technical Issues An environment where priority to the continuous training 2. Quality & Environment they can gain knowledge of its people, by implementing 3. Hygiene & Safety and skills, perform and integrated education programmes 4. Information Technology grow professionally and inside and outside the company. 5. Learning a Foreign Language personally. Programmes that allow employees to develop or upgrade their knowledge and skills.

Opportunities for young people

Today more than ever, specialised experience is an asset for employees. This is why Chipita offers many young people, through internship programmes, the opportunity to apply their knowledge in real working conditions and gain valuable work experience.

In 2018, 5,560h of internships were carried out by young people under 26 years old.

Every day, Chipita’s employees give their best, making a decisive contribution to the development of the company. Recognising their contrubution, Chipita supports its employees with additional benefits, on top of their fixed compensation. These benefits are offered to all employees, without discrimination, and in 3.1 Taking care 2018 amounted to € 2,814,724.

of our people • Free meals are being offered every day in the company’s factory and office restaurants in all countries. • Annual events are being organised for employees and their families, while special holiday packages are offered for the Christmas and Easter periods. • Free products are being offered every month to each employee. • We offer gifts to new families upon their weddings and birth of children. They say that people are the most important asset of a company. • Aid is offered to employees for tackling serious health issues. For Chipita, this is not just a point of view but a fundamental principle since our first day of operation.For 45 years, the company has been applying daily practices and actions aimed at enhancing human value.

26 27 3.2 Contributing

to society In this context, the overall contribution in countries of operation for charity and sponsorships in 2018 reached The areas € 2,567,000. At the same time, a total of €570,000 worth of units of products were distributed to in which Chipita prioritises the empowerment of local communities in all countries where it vulnerable population groups. Chipita operates. As such, it implements a series of actions with a strong social footprint in many contributes different areas. Actions that contribute to social well-being and local development, focusing on individuals and especially the young. to are:

Sports Supporting Culture vulnerable population groups

Education & School and Other Conferences educational actions institutions visits

28 29 Sports Support of vulnerable groups Stelios Foundation In cooperation with the Foundation, the Sports carry many positive values. Values embraced The company’s contribution to the teams’ For Chipita, social cohesion depends on a company provides products to vulnerable by Chipita that have the power to inspire society, revenues and European events, results in the great extent to the support provided to its population groups throughout the year. especially young people, on multiple levels. improvement of the teams’ competitiveness. most vulnerable members. Therefore, the This, in turn, contributes to promoting sports company is developing a series of initiatives, Boys’ Orphanage This is why, spreading the athletic spirit is central in general, enhancing young people’s interest aimed at improving the living conditions Consistently, Chipita supports the Βoys’ to the philosophy of the company. Chipita actively in sports and multiplying its positive effect of sensitive population groups - with an orphanage in Lamia, through the provision supports sports through sponsorships of major to the society. emphasis to young children. of free products. events, such as Euroleague, as well as local teams. ΚDAP (Centre of Creative Occupation & Culture Sponsorship of popular sports such Learning for Children), City of Ioannina as basketball, football and ice hockey, The Centre of Creative Occupation & Learning The company supports modern artistic builds a two-way relationship between the for Children has been operating since creation with concrete actions. In 2018, company and the team. The result of this September 26th, 2017. It hosts, on a daily it supported the Concert Hall relationship is the company’s association basis, a total of 150 children, aged 6-12, from and theatrical plays. with the team and its fans, as well as the families in financial need. financial empowerment of the clubs or groups. After 15 months of operation, 284 children Education and Conferences have made tremendous progress in their Chipita supports scientific work, with an performance at school, proving that the emphasis on sponsoring conferences, as well alternative experiential teaching methods as scientific publications, special editions and that are being followed, do work. There has albums, on a wide range of scientific subjects. also been a significant improvement in the The company also offers scholarships to children’s social behaviour and adaptability, students. The following institutions have been which is attributed to the love and individual supported: Piraeus University, Open University, attention they receive daily at KDAP. Foundation of Economic and Industrial Research (IOBE), Entrepreneurship Club, Anthropini Anthropi (Humane Humans) Athens University of Economics and Business. The organisation has been operating since Furthermore, in 2018, there were 2,258h of 2015 with the aim of providing financial school and university visits to factories in all and moral support for our homeless fellow countries the company operates in. citizens, until they stand strong on their feet and become active members of the society. To date, this goal has been achieved for 20 families. Local employees’ actions

In cooperation with local authorities, in 2018, Voluntary blood donations are being planned 25 families, primarily single-parent ones, were and carried out at the company’s premises supported in social housing repaired or rebuilt in Athens, as well as at the Lamia plant, in by the organisation. In total, 127 individuals cooperation with the Ayioi Anargyroi and have been accommodated, of whom 73 were Lamia hospitals. children. It is important to note that the company owns Apostoli (Mission) & Oli Mazi Boroume a blood bank to cover the needs of employees, (Together we can) / Red Cross their families, as well as the wider society. This activation includes support for population groups experiencing extreme living conditions, in regards to their living standards, by consistently offering free products throughout the year.

30 31 3.3 Offering of quality products

Chipita invests time, effort and significant resources in the Since Since In continuous improvement of its products. Its goal is to offer products with improved nutritional characteristics that meet current nutritional trends. 2006 2007 2007 no products all products we created contain artificial are free from croissants with no colours. trans fats. hydrogenated fats.

Since Since Since 2014 2014 2018 Chipita provides Bake Rolls we aim at reducing croissants with no have no flavour fat and saturated preservatives. enhancers. fat in our products.

In Most of our products are At the same time, Chipita checks the 2019 overall social footprint we began oven of its suppliers. replacing palm oil. baked.

32 33 Corporate governance

We pay special attention to the implementation of clear operating rules within Chipita and all our subsidiaries. This is why we have established and implemented a Corporate Governance framework, seeking to ensure:

Transparent management and Sound and rational corporate Our operation is based on the administrative control systems financial management principles of corporate social responsibility

The above are accomplished through the effective We comply with the law in all countries organisation and operation of the company’s Board where we operate. At the same time, of Directors, Internal Audit Committee, Remuneration as a member of the Hellenic Federation Committee, Committee on Successions, Corporate of Enterprises (SEV), we comply with its Governance and Corporate Responsibility and the Code of Corporate Governance as company’s Executive Management Committee which published on www.sev.org.gr. play an instrumental role in achieving the afore- mentioned goals in an atmosphere of accountability, mutual trust and compliance with rules, in line with our philosophy and commitments.

34 www.chipita.com