Sustainable Palm Oil Sourcing Statement

Palm oil is an edible, highest-yielding vegetable oil produced mostly in Malaysia and Indonesia. It is used in almost half of the consumer products which are available in the market because of its good properties. Unfortunately, the land which was predominantly covered by forests having high biodiversity value is now facing deforestration risk because of excessive palm tree plantation. However, we believe that palm oil industry plays an prominent role in employment and economic development of the region, therefore it is important to support sustainable palm oil production.

CCC, as a member of the RSPO, is committed to act responsibly and encourage using only certified sustainable palm oil, palm kernel oil and its derivatives in our products. In this direction, we have taken our RSPO Certification in 2014 passed by succesful audit. http://www.rspo.org/members/2302/Continental-Confectionery-Company-Gida-San.-Ve- Tic.-A.S

Our aim is to move towards the use of certified sustainable palm oil and palm kernel oil with Mass Balance supply chain certification by 2015, as certified sustainable palm oil derivatives become commercially available in the market, we will be able to provide fully traceable and sustainable confectionery products. Hence, in 2014 we started to evaluate for supplying and producing MB RSPO certificated products to change with the uncertified PO, PKO sources. During 2015, we gradually shift to MB RSPO certicifated sustainable palm oil and palm kernel oil in our products.

And as of 2016, our aim will be to supply SG certificated raw materials and to ensure the transition of the MB RSPO certificated PO, PKO sources in our products to upgrade level on supply chain. But it should be noted that, possibility of using SG RSPO certificated PO fractions and PKO fractions still seems very difficult as commercial, it may therefore not to focus on this products within the specified timing.

CCC will ensure that its staff, suppliers and customers are kept aware of this statement and their individual responsibilities by issuing a procedure on sustainable palm oil procurement.

We hope this information provides you with a valuable insight into our position and we would highly appreciate being able to support you in your activities in this regard.

If you have any further questions, please do not hesitate to contact us.

Continental Confectionery Company Gıda San. Ve Tic. A.Ş Merkez: Cihangir Mah. Güvercin Cad. No:1 34310 Avcılar İstanbul/TÜRKİYE Tel: +90 (212) 422 12 12 Şube: Omurtak Mah. Asfalt Boyu (Küme Evler) No:1 59870 Ulaş Beldesi Çorlu Tekirdağ/TÜRKİYE Tel: +90 (282) 689 10 00

Definitons: Palm oil: The oil derived from the pulp of the fruit of the oil palm (Elaeis guineensis) Palm kernel oil: The oil derived from the kernel (seed) of the oil palm (Elaeis guineensis) Palm oil derivative: Any substance derived from palm oil. Roundtable on Sustainable Palm Oil (RSPO): The RSPO is a not-for-profit association that unites stakeholders from the seven sectors of the palm oil industry – oil palm producers; processors or traders; consumer goods manufacturers; retailers; banks and investors; and environmental or social non-governmental organisations (NGOs) – to develop and implement a global standard for sustainable palm oil. RSPO Certified Sustainable Supply Chain System: Palm oil and palm oil derivatives sourced through one or more of the RSPO “Identity Preserved”, “Segregated’, ‘Mass Balance” or ‘Book and Claim’ supply chains. Identity Preserved: The RSPO certified palm oil and palm oil derivatives delivered to the end user are uniquely identifiable to the mill and its supply base and is kept physically isolated from all other oil palm sources throughout the supply chain (including other segregated RSPO certified sustainable palm oil sources). Segregated: Palm oil from certified plantations is segregated from palm oil from non- certified sources at every stage of the supply chain. The physical oil is not uniquely identified to a specific estate/plantation as in the case of Identity Preserved Mass Balance: Certified sustainable palm oil is not segregated from non-certified palm oil but mixing of the two is permitted at known percentages. The palm oil’s traceability is maintained from the plantation through to the end product and the controls applied ensure that the same proportions are maintained at every stage of the supply chain. Book and Claim (GreenPalm): Certified palm oil is represented by tradable certificates, which are traded separately from the physical oil. The producers of certified oil sell these certificates, via a broker, to end-users who wish to support the production of sustainable palm oil. Further information on RSPO Supply Chain Certification Systems is available on the RSPO website: (www.rspo.org)