ANNUAL AND SUSTAINABLE AND SUSTAINABLE ANNUAL REPORT DEVELOPMENT

JUNE 2019 EDITION

Even, leading Breton Ecooperative group, major player in the French food industry. 01ANNUAL REPORT Even’s missions 06 Key figures 07 Interview with Guy Le Bars and Christian Couilleau 08 Governing bodies 10 Key events 2018-2019 12 Business lines and brands 14 Even Upstream 16 Laïta 18 Even Distribution 20 Even Development 22 01 ANNUAL REPORT ANNUAL Even, an agri-food cooperative group born in Brittany

Even is an agri-food cooperative group founded Even is firmly attached to its roots in Brittany, yet in Brittany in 1930. It has now become one of is open to the world, with around 100 subsidia- the major players in the French food industry, ries in France and abroad, and clients in over with more than 6,100 employees and a member- 110 countries. Thanks to a strong national and ship of around 1,320 farmers. international presence, its products are found on one million plates worldwide each day. Even generates a turnover of €2.2 billion and is structured around its parent company Even Even is driven by the values of agricultural cooper- Cooperative and four complementary business ation and has one clear ambition: to provide units: the upstream agricultural sector, milk and good, healthy food for all and to create sustain- dairy products, food product distribution, and a able human and economic wealth for its mem- diversification unit. ber farmers, employees, Brittany and the other territories that it serves.

6 EVEN 01 ANNUAL REPORT

Key figures

1,320MEMBER FARMERS

6,140 EMPLOYEES AN AGRI-FOOD COOPERATIVE GROUP

BORN IN BRITTANY IN 1930 €2.2 billion TURNOVER IN 2018

CLIENTS IN OVER MILK 110 COUNTRIES EVEN’S ROOTS

COMPLEMENTARY 4 BUSINESS UNITS 97SUBSIDIARIES

EVEN 7 01 ANNUAL REPORT ANNUAL Interview with Guy Le Bars and Christian Couilleau

WHAT IS YOUR ASSESSMENT OF THE 2018 FINANCIAL YEAR?

GUY LE BARS CHRISTIAN COUILLEAU

“Our dairy markets improved at the end of “2018 was a difficult year in our markets, but the year with the gradual disappearance of also one of transformation for the future. European powder stocks. As far as fat is In dairy activities, we are now experiencing concerned, processing remain at a high level. open market volatility: we have had difficulty We are emerging from the turmoil of exiting the passing on the increase in the value of fat to our European milk quotas, which has lasted four customers, while Europe is still facing a dairy years! protein stock impacting on a real value strategy. Our members' 2018 revenues are very similar In distribution activities, a new world is coming to those of the previous year. There is a strong into being, full of questions and hope, charac- legitimate expectation that the economic terised by the development of e-commerce, situation will improve in order to make certain delivery to the point of consumption and the end investments or improve working conditions on of isolation between the three main distribu- our farms. tion channels: supermarkets, restaurants, short This year, the positive results of the Group's distribution circuits. major activities made it possible to return, for In upstream activities, the ecological transition

the second consecutive year, the equivalent of is no longer a necessity but a reality: the CO2 80% of dairy results. All this has been achieved balance of farms, the reduction of phytosanitary while accelerating investment in our factories to molecules are part of our daily actions.” prepare the price of tomorrow's milk.” HOW ARE THE PROSPECTS FOR 2019-2020 LOOKING?

CHRISTIAN COUILLEAU

“We will be strengthening our project throughout this year: feeding everyone at every stage in their lives, developing the regions and Brittany in particular, giving priority to long term over short term, and also enhancing proximity, being innovative and efficient for our customers, for the members and employees of our cooperative Group.

THE AIM OF OUR COOPERATIVE GROUP IS TO CONTINUE SEEKING VALUE FOR OUR MEMBERS THROUGH CONSTANT WORK ON INNOVATION, INVESTING IN OUR TOOLS AND SEARCHING FOR INTERNATIONAL MARKETS.”

GUY LE BARS President of the Board of Directors

8 EVEN 01 ANNUAL REPORT

OUR STRATEGIC PRIORITIES ARE CLEAR, COHERENT AND CONSISTENT: DEVELOPING IN MODERN FIELDS SUCH AS DAIRY, NUTRITION, SERVICES AND THEREFORE INNOVATE, INTERNATIONALISE, INVEST AND IMPROVE EFFICACY.”

CHRISTIAN COUILLEAU CEO

As such, our strategic priorities are clear, coherent and consistent: developing in modern fields such as dairy, nutrition, services and therefore innovate, internationalise, invest and improve efficacy. Innovate: Innovation at Even naturally means designing, developing and distributing agri-food products or services to satisfy the needs or desires of our customers. It also means creating while respecting our threefold conviction: let us be at the forefront of nutritional science because it is useful and full of hope, let us not minimise, in any way, the immense responsibility for health and the environment, let us consider taste as irreplaceable in the food experience, let us work on it without forgetting that it changes with age, state of health or time of consumption. Invest: Investing to secure our future, even in uncertain times, is what we will be implementing forcefully this year. Preparing for the digital era in distribution, creating a new cheese workshop based on Emmental cheese, launching work to develop our manufacturing and packaging capacities for health products presented in bottles, are just some of the many transformation projects being carried out by our teams, which are real proof of our drive. GUY LE BARS Internationalise: Of course, the launch of our €80 million of investment around the theme “2019-2020 is shaping up in the best possible of children and protein underlines our desire way. In general, world production is expected for internationalisation. From the beginning of to be lower than the consumption of dairy 2019, the boxing workshop will be running on products. This is the first indicator you have to 2x8 shifts, which is a great satisfaction. look at. Large export markets should take over Improve efficacy: The redeployment of our from the less dynamic European markets. The distribution activities in the Alps, the closure annual negotiations on our domestic market of the historic yoghurt manufacturing went well. workshop at the birthplace of the Cooperative, How much of a post-Egalim law atmosphere is the Group's parent company, and the there and how much of a situation is there where technical partnerships to offer innovations demand exceeds supply? The future will say... in the upstream business, illustrate our The decline in global production of certain meats determination and ability to seek efficacy on a will affect the price of cereals and proteins, it will daily basis through method, pragmatism and be both an opportunity for the buyer and a risk for consideration. the dairy farmer, who is sometimes a grain farmer. Finally, we must continue to communicate on I would like to add a special focus on workplace our sustainable development commitments safety. For the first time, last year we conducted because the ‘anti-everything’ spirit has never a week-long, Group-wide event on safety. been so present in our media environment. On Everyone's safety at work is one of my concerns this matter, green Brittany surrounded by blue and I hope that we will make further progress on must highlight the quality of its environment and this issue in 2019.” the very beautiful image of the region.”

EVEN 9 01 ANNUAL REPORT ANNUAL Governing bodies

Even is built on cooperative values and belongs exclusively and collectively to Breton dairy farmers, i.e. its members. Its mission? To collect and process the milk produced by its member farmers in a sustainable manner, in order to secure the long-term future of their farms. At Even, member farmers are shareholders, milk suppliers and users of the Cooperative services. The Board of Directors is made up of 17 member farmers elected by their peers. Led by the Even’s Chairman Guy Le Bars, eight of these farmers make up the Executive Committee Members. The Management Committee is made up of CEO Christian Couilleau and five other directors. This system fosters a non-speculative, distinctly human type of capitalism which is focused on the long term.

MANAGEMENT COMMITTEE

Christian Jacques Charles Couilleau Talec Belin CEO Group Deputy CEO, Group Human Resources CEO of Even Distribution Director

Christian Geneviève Jean-Luc Griner Kerdraon Ménard CEO of Laïta Group Legal Director Director of Even Upstream and Even Development, in charge of Sustainable Development

10 EVEN 01 ANNUAL REPORT

BOARD OF DIRECTORS

Guy Jean-Michel Yves Ronan Le Bars Gac Kermarrec Le Bras President of the Board Vice-President, Vice-President, Treasurer, of Directors, farmer in Hénanbihen farmer in Le Drennec farmer in farmer in Ploudaniel (Côtes-d’Armor) (Finistère) Plounévez-Lochrist (Finistère) (Finistère)

Hervé Yohann Pierre-Yves Yann Loussaut Hervo Jestin Landin Secretary, Executive Committee Member, Executive Committee Executive Committee farmer in Plouégat-Guérand farmer in Allineuc Member, farmer in Lannilis Member, farmer in Plédran (Finistère) (Côtes-d’Armor) (Finistère) (Côtes-d’Armor)

Jean-François Brigitte Sandie Pascal Saluden Bertrand Coz Crenn Executive Committee Board Member, Board Member, Board Member, Member, farmer farmer in Planguenoual farmer in Plouezoc’h farmer in Guipavas in Mespaul (Finistère) (Côtes-d’Armor) (Finistère) (Finistère)

Sébastien Gwénaël Christian Yvon Gouérec Quéau Simon Tourmel Board Member, Board Member, Board Member, Board Member, farmer in farmer in Taulé farmer in Plounéventer farmer in Commana Plounévez-Lochrist (Côtes-d’Armor) (Finistère) (Finistère) (Finistère)

Soizic Trotel Board Member, farmer in Saint-Cast-le-Guildo (Côtes-d’Armor)

EVEN 11 01 ANNUAL REPORT ANNUAL Key events 2018-2019

May 2018

IMAGINING THE PRODUCTS OF TOMORROW

Laïta steps up a gear to speed up the creation of value on all its products. Innovation is structured in a global and collaborative approach in which all June 2018 employees are called upon to unite. The aim of this major brainstorming is to find avenues to explore the food of the future. COOPERATIVE ORGANISATION The brainstorming conducted and the method deployed lead to concrete actions with innovative product offers. Even has a proactive establishment policy to support young dairy producers who are members. The Cooperative offers its young members the allocation of development volumes, financial help and technical-commercial support. This policy attracts interest since about a hundred farmers have joined Even since the end of milk quotas. This dynamic is maintained by the number and richness of exchanges offered by the Cooperative to producers, July 2018 beyond its General Assembly, each year in June. 100% LOCAL

Since the beginning of the crêpe making activity, the ‘Crêpe Even’ has been able to establish itself on the market, reaching the coveted no. 1 position for sales in the West. This success prompted Laïta to innovate by launching the ‘Crêpe de Ploudaniel’, a soft and thicker August 2018 crêpe. Like its big sister, it is made of butter and fresh milk, without colouring agents or preservatives, and attracts consumers with its authentic natural taste. Enough CUSTOMER EXPERIENCE to write a new page for Laïta’s Finistère crêperie.

New consumer trends are at the heart of Even Distribution companies' growth strategies. A balanced, healthy and local diet September 2018 is one of the new concerns of our fellow citizens. The unit’s highlights take place around these themes, both BROADEN THE SCOPE OF POSSIBILITIES internally during the Réseau Krill and Atlanterra alliance conventions, Even has formalised its partnership with five start-up companies that won for example, and externally during the Even'Up innovation competition: Vitaline, Flymenu, Kolectou, Cook&Be exhibitions such as Breizh Pro Expo and Massaï. On this occasion, the Group invites project leaders to a day in Brest (Finistère) for SovéFrais. of discussion at its Ploudaniel site (Finistère). The Even'Up competition, launched in partnership with the Village by CA Finistère and Valorial, confirms the Even group's desire to accelerate the innovation process in the service of the economy, employment and attractiveness of the regions.

12 EVEN 01 ANNUAL REPORT

October 2018

SEA SPECIALIST Argel is strengthening its position as a specialist in seafood products, launching 40 exceptional products and continuing to train its teams in the specificities of the activity's business lines. The protection of the seabed and preservation of resources remain constant concerns for the company, in the choice of its commercial and associative partnerships. Argel's long-term partnership with the Fonds de dotation de la mer is a strong example that shows its ethics is much more than just a principle! It is a state of mind and all these actions work toward ensuring the future of the planet.

November 2018

TRADITIONAL CREAMERY

The Ancenis creamery (Loire-Atlantique) is celebrating its 40th anniversary! This is an opportunity to look back on the company's fine history, which is the pride of its 65 employees. Each year, the Ancenis creamery produces some December 2018 22,000 tonnes of butter, most of which are marketed under the Paysan Breton brand. The moulded butter, dressed in its chequered dress, has become number ONE YEAR LATER... one in its category. It is available as unsalted, semi-salted, ‘touch of salt’ butter for the greatest pleasure of consumers and the development of the Ancenis and Landerneau creamery activity where it is also manufactured. Créhen's baby milk and premium powder unit (Côtes-d’Armor) blew out its first candle. Inaugurated on 1 December 2017 in the presence of more than 500 guests, the new high-tech tool is growing to meet the expectations of international customers looking for superior quality dairy ingredients. Between its commissioning and the end of 2018, 1,000 tonnes of premium January 2019 powders and 2.5 million cans of baby milk left the production lines, much to the pride HAPPY NEW JOB of the 80 employees who work there every day.

The Even group is involved in the ‘Happy New Job’ operation, February 2019 organised by the Breton daily Le Télégramme as part of Objectif WOMEN AND SENIORS IN THE SPOTLIGHT Emploi Formation. Objective: put candidates in contact with companies recruiting in Brittany. The Cooperative organises a day dedicated to its member producers. Through this approach, Even It was an opportunity for the participants to meet each other, continues its fundamental work to share their experiences as women farmers but also to exchange to anchor its employer brand with some employees. An initiative appreciated by all those who have sustainably in the region's economic expressed the wish to renew these events. and social landscape. Another highlight is the reception for former member farmers. A friendly event for the 150 participants who were able to visit the new industrial facilities at the Ploudaniel site.

March 2019

ANTI-WASTE!

Réseau Krill is partnering with the Framheim start-up to fight food waste in the restaurant industry. The particularity of this start-up is to support restaurateurs from the outset by providing them with solutions to avoid filling bins rather than trying to empty them. The result is the award of a label for restaurateurs involved in the fight against waste!

EVEN 13 01 ANNUAL REPORT ANNUAL Business lines and brands International coverage

Even is structured around its parent company Even is firmly attached to its roots in Brittany, yet Even Cooperative and four complementary is open to the world, with around 97 subsidiaries business units: in France and abroad, and clients in over 110 the Even Upstream unit encompasses all countries. farming advice and services activities: milk production, crop production and self-service Even encompasses national and international supply stores, animal nutrition and swine flagship brands such as: Paysan Breton, genetics; Régilait, Mamie Nova, Gamm vert, Argel, and milk and dairy products under the Laïta banner: Réseau Krill, as well as equally emblematic consumer products, health nutrition products, regional and specialist brands. dairy ingredients, young mammal feeds; the Even Distribution unit which covers food product distribution for both home delivery EVEN'S BUSINESS LINES and the food service sector, and helps to mitigate Even's vulnerability to agricultural AND BRANDS MEET ALL economic cycles; NEEDS AT ALL STAGES and Even Development, a diversification unit OF LIFE. for prepared meals and curing.

14 EVEN 01 ANNUAL REPORT

EVEN EVEN LAÏTA DISTRIBUTION DEVELOPMENT

CONSUMER HOME DELIVERY PREPARED MEALS PRODUCTS

FOOD SERVICE SECTOR

CURING

HEALTH NUTRITION PRODUCTS

DAIRY INGREDIENTS Adour

YOUNG MAMMAL FEEDS

Quadri

Encadrement noir : Hermine Bleue : C 30% C 100% M 30% M 0% J 30% J 0% N 100% N 0%

EVEN UPSTREAM FARMING MANAGEMENT

DAIRY PRODUCTION CROP PRODUCTION AND ANIMAL NUTRITION, SELF-SERVICE SUPPLY STORES SWINE GENETICS

EVEN COOPERATIVE MEMBER RELATIONSHIP

EVEN COOPERATIVE MEMBERS

EVEN 15 01 ANNUAL REPORT ANNUAL Even Upstream privileged contact point for Breton farmers

A STEADY ESTABLISHMENT PACE Even Upstream sites The collection from Even member farmers was 422 million litres of milk in 2018, slightly lower than in 2017 due to a cold spring that delayed 1 Landivisiau (Finistère) grassing and dry weather during the summer Tecnor-Sofac (pig feed) 3 1 that did not allow production to catch up. 2 Loperhet (Finistère) The same applies to Laïta’s collection, which Even Animal Nutrition 2 (cattle, pig and poultry feed) decreased by 1.4% with 1.5 billion litres of milk. Topigs Norsvin (swine genetics) 3 Ploudaniel (Finistère) The average price of milk paid to Even members Even cooperative Even Agri (agri-supplies and (depending on fat, protein and milk quality) self-service supply stores) reached €330.49/1,000 litres in 2018, i.e. up by Gamm vert Village stores (Finistère) Landivisiau, Pleyber-Christ, 1.6% compared to 2017. In addition, the Board Ploudaniel, Plouigneau, Plounévez-Lochrist, Plouvorn, of Directors decided to propose significant Saint-Renan, Sizun return on result at the 2019 General Assembly Even Agri stores (Finistère) of €4.8 million and represents on average Cast, Le Cloître-Pleyben, Pouldergat, Saint-Thois €11/1, 000 litres of milk delivered over the 2017/2018 campaign.

Concurrently, the Cooperative has consolidated REMARKABLE EARLY MATURITY its young farmer policy. In 2018, thirty young In agri-supplies, the 2018 season was farmers joined the Cooperative. This brings to characterised by remarkable early maturity, with 100 the number of young members installed rainfall close to normal. The harvest started since the end of the quotas at 1st April 2015. ahead of schedule, in very good conditions. Although yields were falling, with significant The carbon footprint® audit of all Even dairy differences, the average was higher than in other farms has been completed. Their carbon regions and the quality is good. Corn silage

footprint averages 0.86 kg eq. CO2/litre of yields werre good to very good, with correct milk. From 2019, a new audit cycle begins in quality and good fibre digestibility despite a connection with agronomic practices aimed problem of lodging on a few varieties. to protect the quality of water and preserve biodiversity in keeping with the pilot partnership In spring 2018, nearly a hundred Even Upstream signed between Even and the Loire-Brittany members and customers participated in the Water Agency. ‘Fodder blends: produce more protein on your farm’ event organised jointly by the teams of Even Agri, Even Nutrition Animale and Even Development of milk prices, Dairy Production. Participants in the event could rediscover the advantages of grass through in €/1,000 litres. thematic workshops and visit a collection of fodder blends combining grasses and legumes €370 on a test platform.

€350 €330.49 €330 Total volume collected January- €310 December, in millions of litres.

€290 EVEN COOPERATIVE LAÏTA 2017: 428 2017: 1,478 2018: 422 2018: 1,458 2009 2010 2011 2012 2013 20142015 2016 2017 2018 -1.4% -1.4%

16 EVEN 01 ANNUAL REPORT

MILK PRODUCTION

CROP PRODUCTION AND SELF-SERVICE SUPPLY STORES

ANIMAL NUTRITION, AND SWINE GENETICS

€210 M 150 TURNOVER IN 2018 EMPLOYEES

GROWTH IN BOVINE AND SWINE SECTOR In 2018, the animal feed market in Brittany stabilised at around 7.5 million tonnes of fodder and feed. Even, on this stable market, was progressing in ruminants (+ 8.8%) and swine (+ 2.3%).

In ruminants, to support Laïta in its growth and adapt to new market expectations, Even Nutrition Animale offered a complete range of GMO-free food (< 0.9%) produced in its Loperhet plant, which is STNO certified (GMO- free Feeding Technical Platform).

In the swine sector, Tecnor-Sofac invested in its Landivisiau tool to meet the needs of on- farm production. Tecsoft, the raw materials marketing activity, is expanding its offer. At the same time, the company signe the Duralim charter, a sustainable development approach shared and recognised by the entire sector.

In laying hens, the partnership with Cocorette is being built with the deployment of alternative surfaces.

In swine genetics, Topigs Norsvin accelerated its development with a 16% increase in its activity. The TN 70 sow confirmed its promise in terms of numerical productivity and fattening performance of its offspring.

EVEN 17 01 ANNUAL REPORT ANNUAL Laïta a cooperative dairy company on a European scale

2018 will remain a pivotal year in the annals the development of the nutrition and health of the dairy industry. The end of intervention branch with the new baby milk powder unit of definitively propels European dairy farmers into Créhen (Côtes-d’Armor); the post-quota era, with shorter volatility cycles a great drive for innovation with the Paysan since intervention stocks will no longer be able Breton brand, but also in the markets of to play their buffering role. The transition from functional ingredients or food for human and the ‘old to the new world’ is a tough one. On the animal nutrition. protein market, the sale of the European stock of milk powder from ‘old world’ is weighing on For investments, in addition to the launch of prices as never before. The fat market, on the Créhen's baby milk and premium powder activity, other hand, is only just recovering its logic at a which uses the entire Laïta dairy ingredients late stage. However, the renewed appetite for network, many projects are being implemented butter and cream is allowing the price to move at a sustained pace. To be at the forefront of structurally to a new level. customer requirements in food safety and strengthen the offering, two major investments INNOVATING, INVESTING AND are being made in 2018 and will be operational INTERNATIONALISING in 2019: In this transition period, Laïta's strategy the new grating, cutting and packaging continues around its three priorities: innovate, workshop for hard cheeses for the Ploudaniel invest and internationalise. The goal is to creamery; make the product mix more resilient to market a new bottle packaging line for Even Santé volatility, by pursuing several actions: Industrie and the clinical nutrition and baby growth in cheese volumes to better optimize food market, which will double the current the value of the protein-milk fat combination. capacity. The tools of Ploudaniel (Finistère) and Ancenis (Loire-Atlantique) are at the core of this strategy;

Other Laïta sites in France and internationally

INDUSTRIAL SITES

1 Ancenis (Loire-Atlantique) Butters, soft cheeses, dairy ingredients Laïta HQ, 2 Créhen (Côtes-d’Armor) Brest (Finistère) Fresh cheeses, dairy ingredients, infant milks 3 Landerneau (Finistère) 5 2 Young mammal feeds, butters, 3 6 dairy ingredients 4 EURILAIT 4 Lanfains (Côtes-d’Armor) Evercreech Hard cheeses, ultra-fresh products UK ECI 7 5 Marloie FROMKA Ploudaniel (Finistère) Crepes, hard cheeses, health nutrition 1 LAÏTA Belgium Sarrebruck products, ultra-fresh products INTERNATIONAL Germany 6 Yffiniac (Côtes-d’Armor) Rungis Milk cracking, creams, milks, dairy ingredients France RÉGILAIT PARTNER INDUSTRIAL SITE LAÏTA Saint-Martin-Belle-Roche ITALIA 7 Pont-Scorff (Morbihan) France Soft cheeses Melzo LAÏTA Italy Shanghai China LAÏTA LAÏTA LAÏTA Martinique CONSEIL LAÏTA LAÏTA Guadeloupe Barcelone Bangkok Hô Chi Minh City Spain Thailand Vietnam

LAÏTA New Caledonia & French Polynesia LAÏTA Reunion Island

18 EVEN 01 ANNUAL REPORT

€1.3 billion The continuing innovation and investment TURNOVER IN 2018 dynamics should enable Laïta to pursue its objective of increasing international sales.

SHARING THE SAME PASSION DU LAIT® The deployment of the Passion du Lait® progress initiative highlights the virtues of 2,830 the Western France cooperative dairy sector as well as the excellence of agricultural, EMPLOYEES industrial, logistical and commercial practices. This sustainable development initiative combines the pride and know-how of dairy producers and employees, to better meet customers’ expectations. CONSUMER PRODUCTS

Based on these commitments, Laïta’s upscale in financial, social and environmental efficiency allows the company to present dairy producers with a financial develop- HEALTH NUTRITION DAIRY ment project that, although it is also affect- PRODUCTS INGREDIENTS ed by the economic context, retains solid fundamentals: ensuring that their farms last so that Western France remains a bench- mark dairy basin worldwide. YOUNG MAMMAL FEEDS

LAÏTA New Caledonia & French Polynesia

EVEN 19 01 ANNUAL REPORT ANNUAL Even Distribution a specialised French distributor

ARGEL, THE SEAFOOD SPECIALIST In 2018, Argel confirmed its position as a of the seabed through responsible and specialist in seafood products with an offer of sustainable fishing. Concurrently, Argel has more than 125 fish, shellfish and crustacean increased its loyalty-building initiatives for its products representing 25% of its total turnover. customers. For its part, Artika is focusing on The home delivery company strengthened the training of its sales force, with a view to its partnerships such as the one with the offering its customers and prospects relevant Compagnie des pêches de Saint-Malo or the and personalised product consultancy services. Fonds de dotation de la mer for the protection Gateways between the two home delivery companies were established while preserving each company’s identity.

SOVÉFRAIS, FRESH PRODUCE SPECIALIST IN BRITTANY SovéFrais, the fresh produce specialist in Brittany, continues its involvement in promoting Breton know-how. By participating in the Breizh Alim' €635 M initiative coordinated by the Brittany region, SovéFrais contributes to the analysis of the pork, TURNOVER IN 2018 milk and egg sectors among the various regional players in the sector. The development of Breton products remains a priority for the company, which is launching its own brand in partnership with 3,010 the world of agricultural production. EMPLOYEES

20 EVEN 01 ANNUAL REPORT

Even Distribution sites

Home delivery sites Food service sector sites

RÉSEAU KRILL, CLOSE TO ITS CUSTOMERS AND CONSUMERS As a leader in the food distribution industry in France, Réseau Krill’s ambition is to serve each customer as best as it can, regardless of whether they are independent caterers, national key accounts or collective restaurant managers. Réseau Krill companies operate in the heart of the regions to facilitate contact with customers and ensure timely delivery of orders. They have extensive local ranges that meet the expectations of GROWTH OF THE BAKERY ACTIVITY consumers who are increasingly watchful IN THE WEST regarding the origin and quality of products. Bondu, Legeay and Bertin, specialists in the They have a very high quality meat offering distribution of raw materials for artisan bakers, due to the network's cutting plants and from an continued to expand in the West of France. To offering of top-of-the-range artisanal ice creams support their development, investments are made by a professional. being made in Finistère and Loire warehouses, enabling them to expand their storage Enhanced by this service to the region and and shipping areas. Bondu, a favoured flavour, the Réseau Krill network partners ‘Tous partner in the field of food service, is involved au restaurant’ each September, an initiative over every year, with the other companies of the two weeks inviting consumers to discover or Boul'Pât branch, at various regional exhibitions rediscover the diversity, vitality and creativity of such as Breizh ProExpo or Qualidays. All these France’s finest restaurants. are opportunities to introduce customers to the latest developments in the profession. ATLANTERRA, AN ALLIANCE WITH A STRONG LOCAL ACCENT Bernat, Boncogel’Adour, Gel Côte de Beauté, HOME DELIVERY Charles Martin and Kenty have united to create the Atlanterra alliance since 2017. The five businesses, regional food distribution specialists for professionals, pool their resources to serve customers across the French Atlantic coast, Provence-Alpes-Côtes d’Azur and FOOD SERVICE SECTOR Languedoc. Building on their tagline ‘An alliance with a strong local accent’, they aim to service their customers locally and have a human- sized local player, as well as the strength and security of an alliance that promotes: Product expertise with a desire to share their passion for great product with a strong background; Differentiation with teams constantly driven by innovation; And ice cream with the most comprehensive range in the market dedicated to professionals. Adour

Quadri

Encadrement noir : Hermine Bleue : C 30% C 100% M 30% M 0% J 30% J 0% N 100% N 0%

EVEN 21 01 ANNUAL REPORT ANNUAL Even Development a value-added diversification unit

INNOVATION, THE MOTOR BEHIND PAM NEW CURING INVESTMENTS Located close to the Étel port (Morbihan), Pam In 2018, the dry-cured ham market continued boasts 30 years of expertise in the design to grow with the sliced ham (+5%) and culinary and sale of certified authentic products. The aid (+10%) ranges. These offers reflect the company, popular for its crêpes and scallops, expectations of the finger food and the ‘easy-to eventually developed other ranges, offering prepare’ markets. The Périgord black ham range new products and skills, including in puff has progressed significantly. The development pastry. Over 25% of Pam’s activity was carried of this local product is supported by several out using their most recent products, launched listings in premium private labels. less than two years ago.

In 2018, Pam introduced over 30 new products. It is also pursuing the development of the ‘Les Toqués Bio’ range by positioning itself in supermarkets and supermarkets. At the same time, it is preparing to extend its offering with a new brand, ‘Vagues Gourmandes’, distributed in specialised organic stores. Thanks to this quality offer and the flexibility of its IFS (International Featured Standard) certified industrial tool, many French and European customers have made Pam a trusted partner.

Industrial sites for prepared meals and curing

PAM Ploëmel (Morbihan) Frozen prepared meals

LE SALOIR DU PÉRIGORD Piégut-Pluviers (Dordogne) Dry hams

LANGUEDOC SALAISONS Pézenas (Hérault) Dry hams

22 EVEN 01 ANNUAL REPORT

NEW INNOVATION TERRITORIES PREPARED MEALS CURING TO EXPLORE To stay abreast of new food uses and at the forefront of nutritional science, Even embarked on a new approach of open and collaborative innovation in 2018.

In 2018, the partnership with the Village by CA of Brest, a third place for welcoming and supporting start-ups, is gaining momentum. The Group has formalized its partnership with five start-up companies that won the Even'Up innovation competition: Vitaline, Flymenu, Kolectou, Cook&Be and Massaï.

FrenchFood Capital, the independent investment €40 M fund, founded by Even, supports innovative TURNOVER IN 2018 SME projects in the food industry is closing its financial funding stage and conducting its first operations. Even is present at the investment committee and studying the possibilities of co-investments to complement it. 150 EMPLOYEES

EVEN 23 SUSTAINABLE DEVELOPMENT 02REPORT Risk management 26 Even's responsibilities 27 Business model 28 Fostering the cooperative spirit 30 Nine challenges of sustainable development Guaranteeing the future of farms 32 Developing our human capital 36 Serving clients and consumers with dedication 40 Ensuring occupational health and safety 44 Reducing our environmental footprint 48 Promoting environmentally-friendly agriculture 52 Developing an innovative and socially responsible agri-food offering 56 Investing to stay ahead of the game 60 Working in favour of regional development 64

Methodological note 68 Conformity and sincerity report 70 02 Risk management SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE

To meet the requirements of Article L. 225-102-1 III Risks related to the competitiveness of of the French Commercial Code and establish members and the transmission of the an Extra-Financial Performance Declaration, Cooperative to future generations. the Even group requested around twenty Risks related to the Group's strategic vision. contributors to broaden the requested themes. Risks related to the recruitment and retention Like any company, Even group is confronted of employees. with a set of risks likely to affect its business in Risks related to employee health and safety. the short, medium and long term. The process Risks related to food quality and safety of identifying and managing these risks aims control. to preserve the Group's development in order to Risks related to regional development. best carry out its mission. To this end, a risk and Risks related to the environmental footprint of opportunity analysis – based on Even group's our activities. strategy and the expertise of the four business units, on the one hand, and on customer Other risks, not yet major, could have a negative and consumer expectations, the external impact in the future. This analysis is therefore environment and stakeholders, on the other likely to evolve over time. hand – has to date made it possible to identify the main risks to which Even may be exposed. There are seven of them.

26 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Even's Responsibilities

Even is driven by the values of agricultural In this sustainable development report, the main cooperation and has one clear ambition: to risks* related to Even's business are illustrated provide good, healthy food for all and to create by nine challenges. For each of them, a close-up sustainable human and economic wealth for outlines the Group's priority strategy in line with member farmers, employees, Brittany and the its various activities. other territories that it serves. This ambitious yet realistic goal encourages members and employees to incorporate sustainable development practices into their day-to-day activities.

DEVELOPING2 our human capital

GUARANTEEING1 THE FUTURE ENSURING4 of farms OCCUPATIONAL health and SERVING3 CLIENTS safety AND CONSUMERS with dedication REDUCING5 OUR ENVIRONMENTAL footprint

DEVELOPING7 AN INNOVATIVE and socially responsible INVESTING PROMOTING 8 agri-food offering 6 TO STAY ENVIRONMENTALLY- ahead of FRIENDLY the game agriculture

WORKING9 in favour of regional development

___ * See methodological note on page 68

EVEN 27 02

ANIMAL2 nutrition factories

DAIRY PRODUCTION €210TURNOVER M IN UNIT

REPORT DEVELOPMENT SUSTAINABLE 2018

PRIVILEGED CONTACT POINT for Breton 12 farmers 150 AGRI-SUPPLY EMPLOYEES and self-service supply stores

CREATOR OF EVEN UPSTREAM SUSTAINABLE Milk production • Crop production and self-service PERFORMANCE supply stores • Animal nutrition • Swine genetics Expertise Health • Animal welfare Economy • Environment Efficient farms

STRONG VALUES4 passed down through the generations over the past 90 years Responsibility • Team spirit • Simplicity • Profitability AN AGRI-FOOD COOPERATIVE CLIENTS IN GROUP OVER SHARED COUNTRIES110 GOVERNANCE with a Board of Directors and a Management Committee

€2.2 billion 1,320 TURNOVER IN EVEN MEMBER 2018 FARMERS 100 97 6,140 YOUNG FARMERS SUBSIDIARIES EMPLOYEES ESTABLISHED since the end of quotas

COMPLEMENTARY4 DEVELOPMENT3 BUSINESS STRATEGIES UNITS Dairy • Nutrition • Services

INVEST in new territories OUR MISSION

RUN Provide good, healthy food for all and create projects that sustainable human and economic wealth for have their member farmers, employees, Brittany and the own logic other areas that we serve.

28 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

3,070 LAÏTA FARMS Consumer products • FARMERS Health nutrition products • Know-how • Expertise Dairy ingredients • Young Best practices mammal feeds 2,830EMPLOYEES

LITRES1.5 billionOF MILK All the milk is collected in Western France

OFFICES INTERNATIONALISATION 7 worldwide European 5 SUBSIDIARIES Industrial PRODUCTS SITES 7 €1.3TURNOVER billion IN Innovation CONSUMERS including a partner site Investment 2018 Efficiency

EVEN OUR PRODUCTS FOUND ON DISTRIBUTION ONE MILLION Home delivery • Food service sector PLATES 40,000CUSTOMERS COMPANIES23 EACH DAY EMPLOYEES 3,010 149SITES CONSUMERS

€635TURNOVER M IN 2018 TOP EMPLOYER within the Even group

PRODUCERS

MARKETING PURCHASING LOGISTICS AND COMMERCE Knowing consumer expectations and Serving the best looking for the best products products to our customers

EVEN TURNOVER€40 M IN DEVELOPMENT 2018 Prepared meals • Curing 150 CAPTURE EMPLOYEES growth CONTRIBUTE Industrial in other to the development SITES sectors of companies in Even's 3 related activities for curing and prepared meals

EVEN 29 02 Fostering the cooperative spirit SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE

Even is built on ultra-modern cooperative CULTIVATING STRONG VALUES values and belongs to the farmers of Brittany. Even's cooperative values are a factor in the Its mission? Sustainably collect and process Group's individual, collective success and help the milk produced by member farmers it forge ahead. to secure a long-term future for their farms, Responsibility involves ensuring respect for the vitality of the territories and future farmers, employees, clients and consumers generations. The Cooperative's two social whilst safeguarding animal welfare and the groups, farmers and employees, are driven environment. by a shared corporate project that gives Team spirit enables relationships of trust to meaning to their daily activities: provide be built in order to last and grow together. the best, healthy food for our fellow citizens Combined with honest communication, at every stage in their lives, by creating wealth simplicity guarantees constructive and in the service of agriculture and society. harmonious interpersonal relationships. However, feeding humanity in a context As the absolute prerequisite for current and of exponential population growth and scarcity future economic development, profitability of resources requires producing more relies on our team's drive for innovation and and better, with fewer raw materials and lower performance. environmental impact. These challenges motivate Even members and employees who take on sustainable development issues with determination and energy.

COOPERATIVE DNA Even Cooperative, the group's parent organisation, belongs exclusively and collectively to its member farmers, i.e. Breton dairy farmers, who hold members' shares. Based on a contract of trust, Even Cooperative's operation calls mutual commitments into play. Farmers are required to deliver all their milk to the Jean-Sébastien Cooperative. This is an exclusivity agreement. In DAIRY PRODUCER, return, the Cooperative undertakes to collect, EVEN MEMBER process and pay for all the milk that it is offered. AND ANNICK, HIS MOTHER PLOUVIEN, FINISTÈRE As a Cooperative, Even cannot be sold or transferred. It may not be relocated or offered for public sale. Its share capital may not be “We have been producers of Even sold or shared. A percentage of the Cooperative’s milk for three generations. Like profits are redistributed to members, another my grandparents and my parents, portion is reinvested, and the remainder is I believe that the cooperative placed in reserve for use in future projects. model is best suited to enhance the value of our production. My mother SUCCEEDING TOGETHER was a municipal delegate for the By electing their representatives according to the Cooperative for several years. principle of one man/one vote, member farmers When my turn came around and actively participate in the construction process I was asked to become a young delegate, I agreed to take on this and Even's strategic orientations. The responsibility. Being a delegate, cooperative model fosters a non-speculative, means relaying between the field and distinctly human type of capitalism focused on the Cooperative. I will make every the long term. Rigorous management creates effort to keep my colleagues and Even's results, which are constantly growing and dairy producer neighbours abreast are proof that by remaining true to humanist of what is happening within the values, a company can succeed, innovate and Cooperative. I'll also try to bring them stand the test of time. answers to questions they may have about their relationship with Even.”

30 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

EVEN 31 02

1ST CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Guaranteeing the future of farms

Even's future is built first and foremost with its dairy producers, who are its members. To renew its workforce in an ageing demographic context, the Cooperative implements a proactive establishment policy for young farmers. It also assists its members 17 deal with changes in agriculture and supports ELECTED TO MAKE UP their income in a spirit of equity. EVEN'S BOARD SUPPORTING OF DIRECTORS A NEW GENERATION Proud of its cooperative origins and history, the Group works on a daily basis to share essential human values, the unchanging foundation of sustainable and meaningful construction. To encourage young people to begin farming and ensure long-lasting dairy activities throughout the Breton territory, Even supports the establishment of young farmer members: financial aids, technical & economical assistance from the François French farming consultancy and training body, DAIRY PRODUCER, Bureau Technique de Promotion Laitière (BTPL), EVEN MEMBER volume allocation in line with their projects, etc. AND PIERRE-ÉDOUARD, All these measures highlight the Cooperative's HIS BROTHER commitment to ensuring a turnover of milk PLOUGUERNÉVEL, CÔTES-D’ARMOR producers in Brittany. Since 2015, 100 young members have joined the Cooperative, about thirty of them over the past year. The dynamic “My brother had just moved to Gaec renewal is accelerating with 50% more framers with us. It's a period of transition, established from 2015-2018, compared to 2011- before our mother retires. 2014. The average milk benchmark for farms We wanted to keep the family farm established by Even’s young member farmers and make it sustainable for the future. is 970,000 litres of milk. In 2018, the assistance Alone, I would have had to hire an allocated by the Cooperative to young members employee or reduce production. After amounts to more than €100,000. optimising the stalls for the dairy herd, we plan to diversify our income ENHANCING MEMBER sources by building an autonomous methanisation plant at the farm. We FARMER COMPETITIVENESS already produce renewable energy Even invests for members to remain competitive through photovoltaic panels installed amid the new agricultural, societal and market on buildings. Regarding cultivation context. An expert engineer from the BTPL and breeding techniques, equipment adds to strategic thinking among members and and the environment, we remain reinforces Even Upstream teams. He develops open to all the innovations that can innovative methods making it possible for help us move forward. A sustainable each producer, including young farmers, to farm is based above all on the overall be given markers that guide them through coherence of a system, with ever the proper management of their farm. Among more control in management and precision in coordination.” them, Écolait, an improvement initiative that encourages sharing feedback on various themes

32 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Guaranteeing the future of farms

EVEN 33 02 SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE (evolution of production systems, reducing INDICATORS* incoming goods, managing food costs, etc.). 75 member farmers have joined Écolait since the initiative’s launch in 2016. The comparison of results across the groups allows farmers to change their practices to improve their working conditions and make their farm profitable. 422 ML In 2019, the Cooperative aims to double the Volume of milk collected number of committed dairy producers. from Even members

SHARING PROFITS Even supports the profitability of member farms by paying milk above the basic price, thanks to a significant return on investment. In 2018, 100 despite an unfavourable dairy context, Even Number of young Even members paid the milk of its 734 member farms the same established over the past 4 years price as the major French dairy generalists: €330.49/1,000 litres. Better still, the Cooperative supports its producers beyond the base price by allocating, each year at the end of the General Assembly, a substantial return on investment, €13,500 the result of sharing the added value created in Amount of aid to establish the sector. This year, producers should receive young Even members €11.33/1,000 litres delivered on average. This additional price, which represents more than €4.8 million on the Cooperative's scale, is a real breath of fresh air for the farms' treasuries after three years of crisis. 60 Number of farms included in the Ecolait improvement initiative

POLICY 40.3% Percentage of farms having attended at least one information meeting or technical Support for and economic training the new generation of members Since 2017, the Cooperative has €13.4 M implemented significant measures to help Net income for establish young farmers, administered Even Cooperative on a daily basis by the dairy production unit. The Board of Directors have thus allocated a grant of €13,500 to eligible young members when they set up their farms. This aid is available in two forms: a flat-rate financial aid and technical and economic support with two services provided by the BTPL, Écolait and Pistil. These measures are accompanied by a right to produce 200,000 litres of milk per young member. The goal is to contribute ___ to the renewal of milk producers in * See methodological Brittany. note page 68

34 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

1,320 MEMBER FARMERS Shareholders • Milk suppliers Buyers of necessary products required for their farms

EVEN 35 02

2ND CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Developing our human capital

Even has created more than 6,100 jobs in the downstream sector, bringing to nearly a thousand the net number of jobs created over the past 10 years. The Cooperative and its subsidiaries contribute to the well-being of 10,000 families throughout the territories their activities serve.

ENCOURAGING EMPLOYEES TO EXPRESS THEIR TALENTS Since 2015, Even group is committed to human resource planning, recruitment, annual interviews, training, etc. In concrete terms, human resource planning optimises training measures, enhances individual skills, and improves career management. Professional mobility across the Group is encouraged. It helps match internal skills and the promotion ambitions of employees with the needs of jobs that arise. At Even, the small number of hierarchical levels is Florian a deliberate choice for organisational simplicity. Everyone can contribute to change, express their HRIS* MANAGER, EVEN GROUP ideas and follow their career path. Even fosters PLOUDANIEL, FINISTÈRE short communication circuits and simple, open relationships between the Cooperative and its members, the parent company and “We are setting up ‘ē-competences’, its subsidiaries, and the employees and their a central software solution for supervisors. human resources management within the Group. Ultimately, all Even employees will have access to it via FOCUSING ON TRAINING the intranet. Everyone will find their AND EQUAL OPPORTUNITIES personal information, the history More than 60% of Even’s employees went on of their training courses, the reports a training course in 2018 for a total budget of of their annual individual interviews... €3.5 million, i.e. more than 63,000 hours of In parallel, human resources are training provided over the course of the year. currently mapping all the Group's job descriptions and the associated Diversity at Even is illustrated by various actions skills. This consistent, cross- in favour of equality: fight against discrimination referenced repository with individual in recruitment by drafting job offers in gender- aspirations, will better enable neutral language, provision of around twenty employees to manage their career progression at Even. Managers and places in subsidised nurseries, reduction of pay the human resources department gaps between men and women, promotion of will be able to identify mobility women to positions of responsibility, etc. wishes more easily and identify the gateways that allow employees The employment of disabled workers amounts to progress within the Group.” to more than 300 full-time equivalent positions throughout the Group. In the event of partial or _ total incapacity for the position, Even human *HRIS: Human Resources Information System resources teams actively seek to reclassify the employee or adapt the position.

36 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Developing our human capital

EVEN 37 02

CREATING SUSTAINABLE JOBS The Even dynamic in favour of employment and the economy of the territories is increasing every year. Almost 100 jobs were created between the start-up of the new Laïta plant

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE in Créhen (Côtes-d’Armor) in 2017 and the launch of the new bottle line for ESI Nutrition in Ploudaniel (Finistère) at the end of the year. To provide these positions, Laïta and Pôle Emploi screened applicants, using a simulation recruitment method to assess their skills and drive rather than their qualification levels. The acquisition and training of successful POLICY applicants, including in terms of health and safety, required around 19,000 hours of training, with the introduction of individual Training courses for each business line leading to 67 Occupational Qualification Certificates (CQP). Since 2014, training investment has increased by more than €1.5 million - Partnerships with local actors are bearing €800,000 at constant scope - which fruit. They meet the Group's recruitment needs represents nearly 63,000 hours of in specific areas of activity experiencing training. Skill development plans are shortages: line drivers, remote operators, drawn up by the human resources teams maintenance technicians, etc. with managers and representative bodies. The main objectives of the ENHANCING ATTRACTIVENESS training policy are the sharing of the Even's internship and work-study policy company culture, the transmission of with local schools and universities provides knowledge and know-how. It also aims students and young graduates with to increase professional integration and development through job training and access to rich learning experiences and management sessions. More than 30% employment opportunities. Alongside this, of training actions concerned workplace human resources teams are involved safety or road safety awareness. in many job fairs and forums to promote the Technical business skills represented diversity of the Group's activities. Workshop 20% of training activities, and managerial visits are regularly organised on Laïta practices, nearly 10%. For the latter, production sites. They are an opportunity seven training courses have been offered for students to exchange with professionals, to Group executives and managers to discover industrial trades and thus to since 2015. The offer is expanding in encourage vocations and convey the message 2019 with three new training courses. The themes emerge from the needs on the quality of milk and the greatness of the expressed by employees during business food industry. and professional development interviews and are then listed in the development Even group has been associated with the plans of each division. Details of these Breton daily Le Télégramme through Objectif 10 training courses are available in a Emploi Formation since 2017. Supported by catalogue posted on the Even intranet. the Brittany Region, this operation aims to Most of the training takes place at the all possible means to develop employment four annual Even universities, which are in the region. Whether through articles important moments for exchanges and on the sectors that are hiring or videos of meetings between employees, activities and Group companies. employees presenting their activity, these actions contribute to a dynamic economy, creating sustainable jobs.

A PARTNERSHIP OF MORE THAN 20 YEARS Since 1997, operators of the Etablissement et Service d’Aide par le Travail (ESAT), supported by a specialised technical teacher, work in one of ESI Nutrition’s packing workshops. The team is an essential link in the product’s value chain and perfectly meets the company’s quality and productivity requirements. Besides its skills, it also provides its simplicity and great human values that work wonders on the site’s atmosphere.

38 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

INDICATORS* 1,795 Number of people recruited (permanent contracts, fixed-term contracts and traineeships) 3,251 Number of employees trained, i.e. 54.2% of the workforce €3.5 M Amount allocated to training

WORKPLACE WELLNESS 67 Initiatives on workplace quality of life are flourishing within the companies of Number of Occupational Group: employee satisfaction surveys Qualification Certificates issued with participation rates ranging from 51% to 70%, support for sophrology courses, organisation of unifying events, etc. All these actions generate a momentum of promoting 10.6 years personal development and workplace wellness. Average seniority Organisation of working hours depends on the Group's activities. For example, at Laïta production sites, work is organised in teams, 2x8 or 3x8 shifts, depending on the lines. 4.7% For companies in the Distribution division, Turnover rate linked which are more subject to seasonality, several organisations and work rhythms have to resignations been set up. Finally, teleworking solutions are being tested. They are accompanied by changes in managerial practices and processes: digitisation, virtualisation of work 4.4% meetings, new collaborative and relaxation workspaces, etc. Absenteeism rate

In addition, the collective agreements negotiated within the Group's companies are the concrete expression of a decentralised human resources policy that takes into account local realities. In 2018, 11 collective agreements were concluded, particularly aimed at improving working ___ * See methodological conditions, hygiene, health and safety, as well note page 68 as the organisation of working hours.

EVEN 39 02

3RD CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Serving clients and consumers with dedication

From upstream to downstream, the Group guarantees the quality and safety of its products for its clients and consumers.

SHARING PASSION DU LAIT® By designing Passion du Lait®, Laïta wishes from raw materials to finished products, to share the love it has for its trade and dairy including packaging. Internal analyses are expertise with as many people as possible. conducted in a laboratory that is separate from Through this sustainable development the production workshops and fitted with the initiative, producers and employees have all latest generation of equipment. Infant milk the transparency conditions for complete trust production requires many precise and advanced with respect to the dairy product and their physical and microbiological analyses. 1,700 manufacturing processes. This joint effort are conducted at the Créhen laboratory daily. stems from Laïta's initiative to continue to Across Laïta, almost two million analyses are provide healthy, varied and responsible food, carried out annually. while supporting the dairy farms in the West of France and the associated jobs. Passion du Lait® goes above and beyond normal quality standards. Compliance with regulations in force is but a basis for the organisation's approach. In addition to this, Laïta adds complementary commitments rolled out Yann according to three challenges: environment, QUALITY MANAGER IN CHARGE well-being, territories and the economy. OF SEAFOOD, STARTERS AND Coordinated by a dedicated Quality, Health, SNACKING, EVEN DISTRIBUTION Safety and Environment (QHSE) department, Passion du Lait® is an initiative specific to Laïta. PLOUÉDERN, FINISTÈRE Its credibility is based on recognised management systems, with NFV01 007, ISO 9001, IFS, BRC, FSSC 22000, etc. certifications. “Since April 2018, Even Distribution It will also be officially backed up by SGS, an is MSC* and ASC** certified. These international certifications independent certification body. are aimed at protecting resources for sustainable fisheries and A COMMITMENT TO responsible aquaculture, with PRODUCT SAFETY product traceability up to the plate. The new Créhen (Côtes-d’Armor) unit is a great We currently offer, about a hundred illustration of the special attention Even pays food service sector products to its products. The unit shows a high level of bearing these certifications within quality assurance, an essential prerequisite to the Réseau Krill network and the producing baby food. The concrete building Atlanterra alliance. In our home was designed to ensure easy compliance with delivery unit, Argel is also developing a range of seafood products from health and safety rules. The air is treated and sustainable fishing. The company is adapted to the sensitivity of each production also a partner in an endowment fund zone. The product-focused process respects that supports projects providing the integrity of the raw materials and meets the the general public with access to hight of international food safety standards. maritime knowledge and promoting The production is supervised through a access for young people to marine quality system compliant with the strictest of environments and maritime careers.” international specifications. Strict zoning was ___ implemented according to the criticality of the * MSC: Marine Stewardship Council manufactured products, with specific work ** ASC: Aquaculture Stewardship Council clothing for each zone and suitable changing rooms. Everything is tracked and controlled,

40 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Serving clients and consumers with dedication

EVEN 41 02

The Distribution division employs a dedicated team of engineers and quality managers, ensuring that products comply with specifications and applicable regulations, performing regular production facility audits,

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE carrying out microbial analyses, etc.

RECOGNISED PRODUCTS The products that Even sells are subject to taste tests involving panels of experts and consumers. The results obtained are encouraging. Over the last four years, about ten of Laïta's products were rewarded during the General Agricultural Competition. For four years, Paysan Breton has ranked among the 30 most purchased brands in France (29th in the 2018 ranking on 2017 sales). Its know- POLICY how, as well as the unique and authentic taste of its products, give the cooperative brand a great image among consumers. The number of households buying Paysan Breton Industry initiative: products continues to increase. The customer Passion du Lait® base is growing particularly in the butter and fermented milk categories. Although butter The sustainable development of the is the first pillar of Paysan Breton with 14% dairy sector is based on the Passion du market share by volume (41.8% for moulded Lait® initiative coordinated centrally butter), Madame Loïk's whipped cheeses are by a dedicated person. From upstream now a real challenger with 10% market share, to downstream, Laïta demonstrates its desire to manufacture traceable, thanks in particular to the plain variety. On safe products that meet its customers’ other segments, Laïta is also a leader with the expectations by committing itself to Mamie Nova brand for 'gourmet' yoghurts for areas of improvement in terms of: adults and on the french grocery milk market health prevention in farms; with Régilait. Laïta has certainly proved its guarantee the origin of fodder and feed worth in terms of its dairy expertise and the for dairy cows; quality of its products, on both the national control the nutritional profile of the and international stages. milk and optimise the nutritional composition of the products; Since April 2018, Even Distribution is certified control raw material purchases; control the risk of malicious intent for Aquaculture Stewardship Council (ASC) and the entire processing operation (Food Marine Stewardship Council (MSC). These Defense). international bodies ensure that seafood products have been harvested sustainably, respecting fish stocks and marine ecosystems, Food safety and while allowing fishermen to make a living from security in Distribution their work. The food service sector specialists ‘Réseau Krill’ and 'Atlanterra alliance’ offer Food safety is one of the key dimensions in the quality of products purchased and their customers around 100 products bearing distributed by Even Distribution. They these labels. must comply with the highest standards and increasingly stringent regulations. To check and control food safety, the Distribution division has a quality team of more than 20 people. Following a EXPERTISE rigorous referencing process, products As a local player, Even Upstream forms partnerships with national are selected, received, supplied and and international leaders to provide the best expertise in each of its controlled in the companies and by the activities for agriculture and tomorrow’s consumers. central quality department according to an annual microbiological, chemical and organoleptic inspection plan. If high-risk products are detected, blocking procedures and alert handling are immediately implemented. The goal is to achieve maximum customer satisfaction.

42 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

FRENCH-MADE PRODUCTS Since 2015, Réseau Krill has been working alongside the Bleu-Blanc-Cœur association on a nationwide range of fresh meat and poultry produced in France. The Réseau Krill network is INDICATORS* the first distributor to offer a Bleu-Blanc-Cœur fresh products range. Drawing on the same momentum, Bernat, Boncogel’Adour, Charles Martin, Gel Côte de Beauté and Kenty, combined under the Atlanterra alliance, are partnering 180,000 with fishing industry stakeholders around a new brand, Pavillon France. This initiative Number of raw milk analyses guarantees consumers that the products are fresh, that the fish is seasonal and of french origin. 6 The origin of ingredients is becoming an essential factor for consumers. Aware of this Number of Laïta Food issue, the Paysan Breton brand provides more Defense industrial sites information on the origin of its products. The french origin of the herbs, the origin of the milk from Western France and the place of manufacture in Créhen (Côtes-d’Armor) are 871 shown on the packaging of Madame Loïk's whipped cheeses. Number of certified references for the Distribution division MAKING SURE CUSTOMERS ARE LISTENED TO In 2018, Paysan Breton's marketing th departments carried out several consumer 29 studies: sensory analyses for Mme Loïk whipped cheeses, monthly tests with a Brand ranking for Paysan Breton consumer panel, co-creation days for crepes (Kantar 2018 edition) or soft cheeses, tasting days, notoriety studies, etc. These special day events make it possible to identify consumer expectations and desires 99% in order to adapt product offers accordingly. For Argel, 136,000 feedbacks from clients were Percentage of Even farms processed via the ‘Argel à l'Écoute’ application in in the Passion du Lait® 2018. Complaints have significantly dropped by initiative almost 7% compared to 2017.

Level of customer satisfaction for the Distribution division 15.1 ppm for frozen products

ANIMAL WELFARE Animal welfare is a major societal issue. It is also a lever to improve the 14.2 ppm quality of milk and the upstream competitiveness of the Laïta sector. ® for fresh products Animal welfare is fully in line with the Passion du Lait initiative, which supports producers in improving their practices (animal housing conditions, health prevention, pain management, etc.). By 2020, all the producers will have had access, via their cooperative's extranet, to MOOCs (digital distance learning) on animal welfare and in particular ___ on the management of animal pain. * See methodological note page 68

EVEN 43 02

4TH CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Ensuring occupational health and safety

Guaranteeing health and well-being at work are the spearheads of Even's social responsibility policy. The Group works proactively to ensure the safety of people and goods. The objective is clear: stimulate a safety culture that tends toward zero accident.

ALL COMMITTED! On a daily basis, the occupational health and safety policy is shown by: considering the health and safety of employees and goods as a value and a performance criterion for the Group; a training and awareness programme for teams designed to reduce and control risks and therefore workplace accidents and occupational illness; the implementation of an efficient prevention policy (systematic analysis of accidents, incidents and feedback, continuous improvement of facilities, etc.); regular communication of safety objectives and results to employees. Laura MANAGER OF THE DAIRY ROAD SAFETY MANAGEMENT PRE-PACKING WORKSHOP, The Group has been committed to a road LAÏTA safety management plan since 2015. On the PLOUDANIEL, FINISTÈRE one hand, it is based on the skills of external service providers and, on the other, on those of the network of internal facilitators, road safety “Within the workshop, we organise prevention representatives. Throughout the TOP visits, standing for ‘Preventive year, training courses are available for drivers Observation for All’. A pair of of light vehicles and HGV drivers. They made it managers observes an operator possible to reduce road accident by over 20% or line driver at their work station over three years. Another practice used at to analyse the potential risks related to the missions and working Even Upstream: the optimisation of journeys. environment. The pair then agree on In consultation with customers, food deliveries the positive points observed, but also are spread throughout the week to avoid Friday on the improvements to be made to peak activity, which has significantly reduced strengthen occupational safety and the risk of end-of-week incidents (orders, health. At the same time, a dialogue loading, on the road and operating incidents). is initiated with the employee jointly to find the solutions adapted for PROMOTING HEALTH the positions or equipment. Each TOP AND WORK STATION ERGONOMICS visit results in a report countersigned Ergonomic studies were conducted on most of by the parties, who commit to do better. I for one conducted 14 TOP Laïta's production sites to reorganise certain visits in 2018, and I plan to do at work stations and thus reduce constraining least as many in 2019. This approach conditions. As such, the order preparation work makes it possible to raise awareness station was laid-out differently and helped with staff about the advantage reduce the number of repeated body bending of working in complete safety. movements by 20% and over-handling by It's a win-win situation for everyone.” 5%. Alongside this, a study conducted on the

44 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Ensuring occupational health and safety

EVEN 45 02

warehouse at the Créhen site (Côtes-d’Armor) resulted in a development plan that reconciled the company's requirements in terms of quality, security, storage capacity and user needs in relation to the different areas (reception,

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE picking, traffic, etc.). This plan, the outcome of a multidisciplinary approach, anticipates the right gestures and postures while meeting productivity needs.

In Ancenis (Loire-Atlantique), employees have a warm-up session before starting their work. Volunteers trained by a sports coach show employees the right gestures through INDICATORS* a series of exercises. After two years of daily practice, feedback from employees regarding this initiative was positive and the number of accidents has since halved. With this in mind, warm-up sessions are increasing on the €3.6 M Group's various sites. Amount of investments TOP NOTCH! in the safety of people Laïta initiated behavioural safety visits, known as TOPs (standing for ‘Tous en Observation Préventive’, meaning Preventive Observation for All). In a concern to improve the health and 95 safety of all employees, managers are trained Number of employees trained in an observation method based on positive dialogue around work execution conditions in road safety and safety rules. Trained employees can then pass on these skills to their colleagues so that everyone can be at the heart of safety on a daily basis. The TOP method is deployed in all Laïta 779 basins with more than 700 visits since its launch in 2017. The ultimate objective is to halve the Number of employees who frequency rate every other year by: received a TOP visit positively acknowledging the work done, developing joint vigilance and anticipation, changing collective and individual dangerous behaviours. 34.01% Behavioural safety visits are also starting at Even Distribution, with the same goal: aiming Frequency rate for zero accident. 1.68% Severity rate HEALTH AND SAFETY WEEK In March 2018, for the first time, an Even group-wide week dedicated to occupational health and safety was held. Its purpose was to raise employee awareness of major risks such as handling and traffic, highlight the efforts made and encourage teams to do even better. Following workshops, challenges and simulations conducted internally, participants made several commitments that contribute to the well-being of all and to the Group's overall performance.

___ * See methodological note page 68

46 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

POLICY

Cap Even

The Even health and safety policy, implemented by the Management Committee, is coordinated by a Group- wide steering committee. This committee is supported by a network of facilitators and safety representatives in each division, called the Cap Even network. It is composed of about forty people. Their mission is to implement the Group’s health and safety policy and roll it out in its business units. This policy is based on common practices shared on a collaborative platform and action plans adapted to each organization with a common objective: instilling a safety culture to achieve zero accident.

EVEN 47 02

5TH CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Reducing our environmental footprint

In order to reduce the environmental footprint of its industrial activities, the Even group has set itself priorities: preserve water resources, limit energy consumption, promote the circular economy, fight against food waste.

PRESERVING WATER RESOURCES The Group signed a pilot partnership with the Loire-Brittany Water Agency early 2017, a first in Brittany. It combines the preservation of water resources and the economic performance of the dairy industry. The agreement was concluded for three years, and aims to roll out Vincent coordinated actions to reduce the impact farms INDUSTRIAL RISK MANAGER, LAÏTA and industrial activities have on water resources ANCENIS, LOIRE-ATLANTIQUE along the coastline. For Even, preserving water – both in terms of quality and quantity– is always a great way to increase finished product quality, “Every year, Laïta undertakes a large for the benefit of consumers. Within the Group, number of actions to improve each investment is now analysed according to its environmental performance. how it affects water resources. They are deployed on both energy-related components, OPTIMISING ENERGY CONSUMPTION to greenhouse gases, discharges From the routing of raw materials to the into the natural environment, delivery of finished products, there is one as well as actions related to watchword: optimisation. In order to improve industrial risks and nuisances the energy efficiency of its industrial sites, Laïta to third parties. Our permanent regulatory monitoring and implements various technologies: heat recovery involvement in national bodies and control systems on cooling units, high- allows us to anticipate issues and efficiency condensing systems, etc. implement high-performance, sustainable solutions. The latest Créhen's new infant milk unit and premium major investments made relate powders of Créhen (Côtes-d’Armor) combines to noise pollution on the Créhen technical and environmental performances site by installing a silencer on the with: new drying tower, to atmospheric pursuing the best energy efficiency emissions by installing low-Nox in the choice of energy sources and burners on the Ploudaniel site, but also protecting against legionella risk equipment: setting up mechanical vapour on the Ancenis site by replacing a re-compression (MVR), use of bag filters to cooling tower. All these investments limit flue losses, installation of meters on the are designed to meet our regulatory main flows, obligations, continuous improvement preserving water resources: installation of objectives and the desire to make our high technology evaporators used to recycle industrial tools safer.” vapour condensates, selective sorting and waste reduction.

48 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Reducing our environmental footprint

EVEN 49 02

Within Even Distribution, vigilance is also Also, the Group's food product distribution necessary: routine inspections of the cooling business lines have also increased their facilities, use of more cost-efficient solutions initiatives. Its key concerns include optimising for the design of new units, optimisation of the delivery routes from the logistics the energy efficiency of the lights, replaced platforms, renewal of the Euro6+ HGV vehicles,

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE with LED lights, installation of geolocation transport energy audits or use of more devices in the delivery vehicles, etc. SovéFrais environmentally-friendly means of transport, thus reduced its electricity consumption by such as electric cars for deliveries in town. 13% for the Ploudaniel warehouse, following Since 2015, Achille Bertrand's teams have the installation of dimmer switches and new been organising eco-driving training sessions cooling systems. There are many areas for for delivery drivers. The result: a drop in diesel improvement to explore and the teams are fuel consumption achieved over the same motivated to deploy them. distances covered.

REDUCING FUEL CONSUMPTION BEING PROACTIVE IN TERMS Since 2009, Laïta has been increasingly taking OF ENVIRONMENTAL REGULATIONS measures to reduce its fuel consumption The regulatory aspects of Laïta's industrial sites during milk collection processes: significant are organised on a daily basis by dedicated savings have already been made, including teams trained to respond to changes in increasing tank capacity, tanks with electric environmental standards and rules. pumps, providing eco-driving training, and formalising milk collection agreements with Beyond compliance with environmental cooperatives in North-West France. Diesel fuel requirements, Laïta participates in debates on consumption shrunk to 1.67 litres per 1,000 issues related to water, climate, discharges, litres of milk collected in 2018 compared to 1.87 biodiversity, etc., with government authorities litres in 2009, thus generating savings of over and the inter-professional community. By 291,600 litres for 2018 alone. This represents adopting a committed and mobilised position,

more than 925 tonnes less of CO2 released into Laïta wants to reduce its environmental footprint the atmosphere every year in comparison with through more efficient and environmentally 2009. friendly industrial tools.

The efforts made by Even Upstream have been just as important. On top of optimising delivery journeys and lorry fill rates, profit- sharing bonuses incentivise Even Agri and Even Nutrition Animale drivers to reduce their diesel fuel consumption though energy-efficient driving.

REDUCING PACKAGING At Even, packaging ecodesign rallies many employees from various POLICY sectors: research and development, purchasing, industry, marketing and logistics around a simple set of guidelines: maximum product protection, improved organoleptic quality of the product, minimum Preserving usage of raw materials and optimisation of storage and transport. A working group has been set up at Laïta since 2017. Its role is to water resources facilitate and accelerate consideration of environmental impacts when An agreement combining the preserva- choosing packaging in the development of Laïta products. Actions tion of water resources and the economic have been carried out in this direction for several years. Thus, in three performance of the dairy industry was years, Laïta has saved 642 tonnes of materials (mainly cardboard concluded between the Loire-Brittany and plastic) by modifying the packaging on cheese spreads. After a Water Agency and the Even group. training phase in eco-design and an assessment of current practices This three-year partnership covers a to reduce packaging quantities, the working group is considering how budget of €16 million for investments to improve their sustainability. The objective for 2022 is to guarantee in sustainable development, one third of which can be financed by the public recyclable packaging for most Laïta products. institution. This joint initiative supports projects aiming to reduce water consumption in the Group’s activities and reduce the impact of Even’s activ- ities on water quality. Member farmers and manufacturers are mobilised to achieve an objective shared with the Water Agency: the improvement of the ecological state of the environment and the preservation of water resources.

50 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

INDICATORS*

€80,500 1,601 tonnes Budget for external Volume of products sold studies on environmental to wholesalers, destockers protection for Laïta and/or smelters, to combat food waste

€1.2 M 3 Investments related to 2.15 m reducing discharges Volume of water consumed by volume into water and air of processed milk equivalent

5 0.33 MWh Number of sites in the Energy consumption per tonne Distribution division undergoing of processed milk equivalent a bilan carbone® or energy audit €170,754 29 kWh Energy consumption of Investments related to change animal nutrition plants of refrigerants in Distribution per tonne manufactured

___ 26% * See methodological Percentage of euro-6 note page 68 HGV and LCV/LV vehicles in the Even Distribution fleet

FIGHTING AGAINST FOOD WASTE Laïta is working on extending consumer product shelf life, by ensuring beforehand that the sanitary and organoleptic quality is naturally satisfactory. In 2018, 49 references had their Best-Before dates extended by an additional 10 days. On the retailer side, a partnership with the Framheim start-up has been established. It gives restaurant owners a preventive approach in order to prevent food waste. Alongside this, suppliers' awareness on the subject is also being raised. Concomitantly, food donation conventions are being organised with certified bodies such as the Food Bank or Restos du Coeur.

EVEN 51 02

6TH CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Promoting environmentally- friendly agriculture

In the same vein, Even encourages and supports member farmers in their efforts to reduce their environmental impact. 95% of member farms have joined the Fermes Laitières Bas Carbone® program and 99% of them are committed to the Passion du Lait® progress initiative.

CREATOR OF SUSTAINABLE PERFORMANCE Under the 'Delivering sustainable performance’ slogan, Even Upstream teams have built up an offer of high-tech services based on a set of core values: profitability, performance, progress, local production and the environment. Even Agri, for example, makes it possible for farmers to optimise the nitrogen fertilisation of their cereal Daniel crops using drones and satellites. This leads to DAIRY PRODUCTION TECHNICIAN, optimal and homogeneous crop yield, without EVEN COOPERATIVE causing any waste or affecting the natural surroundings. Likewise, the Sabrilactis cattle PLOUDANIEL, FINISTÈRE range - formulated using efficient amino-acids - improves protein digestion for dairy cows, whilst limiting rejections into the environment. “95% of Even farms have joined the low-carbon dairy farm programme by performing the Cap'2ER®** level PRODUCING MORE AND BETTER WITH LESS 1 diagnosis. The average carbon Farmers have been working actively to reduce footprint is 0.86 kg of CO2 per litre of their impact on the environment since the corrected milk, which is lower than the

1990s. The Group works closely with its national average of 1 kg of C02 per litre member farmers to achieve these goals, of milk. I have found that there is a including rationalising inputs, improving feed correlation between the results of the efficiency, controlling and managing waste bilan carbone® audit and the farm’s and discharge, landscape preservation and economic performance, linked to the improving water quality. In recent years, regular overall coherence of the system. The improvements and observable results have audits raised awareness and informed our members about the environmental been achieved, including the reduction of nitrate impact of their activity, particularly levels in the soil; embankments along streams in terms of greenhouse gases. After to avoid direct run-off; the reduction of nitrogen this first step of diagnosing practices, use; a reduction in the use of inputs fields; an we identify, during the new Passion du increase in feed autonomy for herds thanks Lait® audits, the main areas to the recovery of fodder produced within the for progress enabling each producer farm; reduced nitrogen and phosphorus waste to reduce the environmental footprint in animal effluents by reducing intake at the of their farm.” source (adjusting nutritional intake in the ___ ® animal's physiology); a reduction in veterinary ** Cap'2ER : performance measurement tool for the environmental impact of farms. treatments on animals; the recycling of waste (packaging, tarpaulins and oils).

52 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Promoting environmentally- friendly agriculture

EVEN 53 02

MEASURING AND IMPROVING THE ENVIRONMENTAL FOOTPRINT Most Even dairy farms have joined the Fermes Laitières Bas Carbone® programme. The Bilan Carbone® audit reports for the dairy workshops,

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE which were introduced in spring 2015, were deployed across 95% of farms using the Cap’2ER® diagnostic tool (developed by the Institut de l’Élevage as part of the Life Carbon Dairy programme). The outcome is that the Even farm, with a relatively dense field network (on average 56 ha biodiversity equivalent for 58 ha dedicated to dairy production), has an

average carbon footprint of 0.86 kg eq. CO2/litre CUSTOMISED PRECISION of milk. It is significantly lower than the national The wheat and rapeseed growth measurement service, set up by Even average, which is 1. Beyond the indicators, bilan Agri using drones and satellites, illustrates Even Upstream's dynamic carbone® audit reports have raised producers' innovation. awareness of their impact, and allow these producers to identify the levers to reduce them: changing agronomic practices, controlling incoming goods, waste recycling, energy savings, herd management and preservation of biodiversity.

Audits carried out as part of the Passion du POLICY Lait® sustainable development approach also show that more than half of the producers have an energy saving method. 96% of farmers use food supplements that do not contain palm Cap’2ER® oil. The herds are mainly fed on self-produced fodder. Finally, all the producers use quaternary Committed for some twenty years to ammonium-free cleaning products for milking ® the collective Agri Confiance progress hygiene. approach, the Even Cooperative has equipped itself with a reliable and objective audit tool: the Cap’2ER®. This is the Automated Calculation of Environmental Performance in Ruminant Livestock Farms. Deployed by the dairy production unit teams, this audit check list evaluates the impacts of each milk workshop on greenhouse gas emissions and biodiversity, by collecting 27 items of data. The results of these audits are summarised and sent to the farmer. After this phase of raising awareness, their technicians guide member producers to implement action plans for improving their environmental performance. To date, the average estimated carbon footprint is set to reach the target of

0.80 kg eq. CO2/litre of milk by 2025, within the scope of the national ‘Ferme Laitière Bas Carbone®’ plan initiated by CNIEL, the French Dairy Interbranch Organisation, and the Institut de l’Élevage.

___ * French Dairy Interbranch Organisation

54 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

FROM GOOD GRASS TO GREAT MILK In a region where cows spend more than 200 days a year on pasture, on average, pasture management is key to all production systems. The test platform ‘Fodder blends: produce more protein on your farm’, set up by Even Upstream, has enabled producers to explore ways of improving the grassland potential of their farms and the feed self-sufficiency of their livestock. Combinations of grasses and legumes have a higher dietary value than pure grass mixtures. INDICATORS* They help improve the protein autonomy of dairy workshops. Another advantage of fodder blends: the nitrogen release limits the use of mineral fertilizers on the land. This initiative reflects Even Upstream's commitment to promote profitable 95% and sustainable agriculture that meets societal expectations in terms of quality, animal welfare, Number of Even farms that conducted environment and biodiversity. the Cap'2ER® level 1 diagnosis Another example is Tecnor-Sofac's signature of the Duralim charter, a sustainable development approach shared and recognised by the €15,360 entire sector. Finally, Even Nutrition Animale , in partnership with Provimi Services, has ® Cap'2ER Level 1 Diagnostic Budget developed a complete range of GMO-free dairy in Even farms cow feeds (< 0.9%) manufactured in the Cobrena de Loperhet (29) plant, which is STNO certified (GMO-free Feeding Technical Platform). 150.6 tonnes REDUCING AND RECYCLING WASTE For over 10 years, as part of an agreement Quantity of empty packaging with environmental organisation Adivalor, Even and plastics collected at Even has operated a waste collection and recycling Agri and recycled through Adivalor service in its self-service agricultural supply stores. In 2018, 150 tonnes of non-usable phytosanitary products (PPNU), empty packaging for phytosanitary products (EVPP), empty packaging for fertiliser products (EVPF), 56 ha empty packaging for dairy farming hygiene Preservation of biodiversity (for products (EVPHEL) and used tarpaulins have 58 ha dedicated to dairy production) been collected, which is an increase of almost 35% in comparison with 2017. 0.86kg

eq. CO2/litre of milk Average carbon footprint of Even dairy farms

MASSAÏ Massaï is a concept of fractional harvesting and conservation of alfalfa or red clover that separates the leaves from the stems, while preserving the nutritional properties of the fodder. Winner of the Even'Up competition, this innovative concept gives farmers a certain autonomy in local GMO-free protein(< 0.9%).

___ * See methodological note page 68

EVEN 55 02

7TH CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Developing an innovative and socially responsible agri-food offering

Even develops a competitive, innovative agri-food industry, respectful of people and the planet. Its strategic areas are clear, coherent and consistent: developing in modern fields such as dairy, nutrition, services and therefore innovate, internationalise, invest and improve efficacy.

INNOVATING IN A SPIRIT OF OPENNESS To stay abreast of new food uses and at the forefront of nutritional science, Even embarked on a new approach of open and collaborative innovation in 2018. The Group has formalized its partnership with five start-up companies that won the Even'Up innovation competition: Vitaline, Flymenu, Kolectou, Cook&Be and Massaï. Laurence ULTRA-FRESH SECTOR MANAGER In addition to its external collaborations, Even FOR PRIVATE LABELS, LAÏTA has launched training and internal initiatives to strengthen positions and collaborative BREST, FINISTÈRE procedures to accelerate the dynamic of innovation. Creative moments, Inno Lab, an appreciation of the balance between risks, “Our milk culture allows us to bring resources and speed are part of the new reflexes appropriate solutions to the changing of the teams called upon to develop synergies expectations of our customers and consumers in the ultra-fresh market. between activities and sectors. For example, we have redesigned all our children's products to reduce At the same time, value creation is accelerating sugar content and additives. at Laïta. Innovation has been structured in So in 2018, we launched, under the a global, collaborative initiative: ‘Défi Inno’ Pâturage brand, the least sweetened (Innovation Challenge), during which all drinking yoghurt on the market. employees were asked to share their ideas To bring a note of fun to our drinking on tomorrow's food. The brainstorming led yoghurt range, we designed a to concrete actions. Laïta launched 60 new children's collection under exclusive products in 2018, across all markets. Among Smiley license. In 2019, we will launch drinking yoghurts and tubes them: a Nutriscore A curd cheese and compote of organic cottage cheese. We are tube, soft cheese to cook, or So Benefik, a high- developing our product portfolio protein yoghurt concept made exclusively from simply and effectively. To do this, ultra-filtered dairy powders. we all deploy the internal know-how of the teams: research and development, purchasing, industry, marketing, legal, commerce... TRENDING Innovation is a shared state of mind Epi Ingredients launches So Benefik, a high-protein yoghurt with low that allows us to move forward lactose content. This product, made from ultra-filtered dairy powders, in line with market needs.” retains optimal functional and nutritional properties.

56 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Developing an innovative and socially responsible agri-food offering

EVEN 57 02

ENSURING A CONSTANT PROTECTING OUR KNOW-HOW DRIVE FOR INNOVATION AND INNOVATIONS Clients and consumers expect innovative, user- Even group has set up an intellectual property friendly products with high nutritional value policy, covering industrial, literary and artistic and high quality taste. To meet these requests, property. Under the auspices of its R&D team, ESI

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Even invests in research and development both Nutrition opened the way to patent rights within upstream and downstream, as do Paysan Breton, the Group. To protect its recipes and clinical which fosters the know-how, authenticity and nutrition product manufacturing processes, unique taste of its products, or ESI Nutrition, the company has already applied for tens of which elaborates about twenty new products Soleau grants and patents in France – some of every year in the field of medical, baby and which extend abroad. Similarly, innovation and healthy nutrition. From a Distribution aspect, the its protection are the core project within Laïta's various branches boast the widest range of ice new high-end powdered infant milk drying creams on the market - completed by the recent and boxing factory in Créhen (Côtes-d’Armor). launch of an impulse range by the Réseau Krill The Even Distribution division is also active network: Rev'ice. in terms of intellectual property, via its many trademarks and artistic creations, with more and more sophisticated catalogues. The Group's Upstream activities boast a significant portfolio of brands. They organise their development into COLOSTRUM innovative and technical projects requiring the ECI, a subsidiary of Laïta, is at the cutting edge of the highly coveted implementation of protection so as always to colostrum market. From a technological point of view, the company stay ahead of the game. has developed innovative processes for filtering and drying colostrum. In terms of sales, this opened up the markets of feed, food, pharmacy and cosmetics.

POLICY

Laïta innovation initiative

Laïta’s innovation initiative, supported and managed by the Executive Committee, is intended to be a source of value for the entire company. Four steps structure this creative process: be inspired, generate ideas, experiment, develop/launch. On a daily basis, innovation is managed in subsidiaries by a facilitator. For a business line, this is the responsibility of the director. Methods and tools make it possible to structure the approach: Défi Inno to generate ideas, Inno Lab to develop the ideas selected and the principle of the funnel or inverted pyramid for better visualising and sharing the progress of projects by activity. The 10-year objective is to generate 5% of Laïta’s overall turnover with products less than three years old.

58 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

A FOCUS ON HEALTH AND ENJOYMENT Chefs and culinary advisors have been working with Even Distribution for several years now, INDICATORS* sharing their expertise to help create product solutions for the catering sector. These collaborations enable teams to adapt their offers to new consumer trends in health, well-being, naturalness, search for meaning, practicality, etc. In order to reassure consumers, 75 the Atlanterra alliance companies favour local Number of people trained in purchases. They diversify their offers with intellectual property rights protected designation of origin and organic local products, as well as seafood products from sustainable fishing.

As for customer advisors, they receive training 60 on how to support their clients through these Number of new products changes: offer digitalisation and segmentation, marketed by Laïta enhancement and implementation of products. The catalogues of the Réseau Krill network and Atlanterra Alliance companies illustrate these new consumer trends: aperitif boards, finger ___ and street food, on the go, etc. * See methodological note page 68

EVEN 59 02

8TH CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Investing to stay ahead of the game

Even continues its momentum of tangible and intangible investments at a steady pace: modernisation industrial tools, digital transformation, internationalisation, training... These investments support an open and collaborative innovation for tomorrow's agriculture and food.

INVESTING IN INDUSTRIAL TOOLS Thanks to its efficiency and shareholders' Within this context, Laïta opened its new dairy capital, Even finances its activities itself. As we site in Créhen (Côtes-d’Armor) in late 2017, a are not subjected to the short-term profitability major proportion in an investment of €80 million, requirements of investors or financial bodies intended for the worldwide market. A year often seduced by speculation, the Group is earlier, Even Santé Industrie was certified by the the master of our own investments. In 2018, competent Chinese authorities to produce liquid Even invested €66 million in modernising and infant milk for China. The company then ranked diversifying its tools. The teams have carried amongst the top 10 companies worldwide to out many processing projects in the dairy sector. have this certification. Two major investments were made: construction of a new high level robotisation unit to expand the range of processed cheeses (grated, portions) around Emmental cheese, in Ploudaniel (Finistère), for an amount of €25 million; Pascale creation of a new workshop at Even Santé IS STUDIES UNIT MANAGER, Industrie to increase the manufacturing and EVEN DISTRIBUTION packaging capacity of clinical nutrition and PLOUÉDERN, FINISTÈRE baby food products presented in bottles, for an amount of €22 million. “Digitisation of Even Distribution These facilities will be operational in early 2020. is on the move. We have been Beyond these projects, Laïta invested a great working for the past four years deal to support the dynamic activity of dairy with marketing and sales to create producers in Western France and better serve an e-commerce site for companies its customers in growing markets. of the Réseau Krill network and Atlanterra Alliance. It will provide access to the detailed technical data sheets of all the products, i.e. 15,000 references. This digital channel will, from the end OPEN INNOVATION of 2019, add to our sales channels: In 2017, the Group was involved in the creation of a new investment fund sales, telesales... FrenchFood Capital. It also supports Village by CA Finistère, a start- This is an additional service offered up incubator based in Brest. In early 2018, Even launched Even’Up, an to customers and prospects of the innovation competition for project leaders in agriculture and the agri- food service sector, who will be able food industry. The five winning start-ups receive personalised support, to place e-orders at any time of a global grant of €150,000, membership of Valorial, integration into the day or night. This omni-channel the Village by CA Finistère, but also easier access to the market. transformation requires us to adapt our working organisation, methods and tools. We are also considering opening an online e-commerce site, in the medium term, for other Even Distribution companies.”

60 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Investing to stay ahead of the game

EVEN 61 02

APPROPRIATING DIGITAL TECHNOLOGY EXPANDING SERVICES In addition to the large product offer, innovation TO USERS also comes in the form of new processes As a local player, Even Upstream forms and equipment. The integration of digital partnerships with national and international technologies is an illustration of this. This leaders to provide the best expertise in each of

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE digital strategy is essential for the Distribution its activities. This is evidenced by the technical division, which develops new commercial and economic day event on the advantages of websites to enable customers to discover grass, organised in May 2018 by the Upstream offers and order online, regardless of the device teams in partnership with Semences de France, used. The Distribution division thus intends to PâtureSens and the Water Agency. adapt to the growth of e-commerce and the end of isolation between the three main distribution In terms of distribution, the Group is pursuing its channels (supermarkets, restaurants, short external growth policy. Over the past four years, distribution circuits). With Product Information it has invested in services with the acquisition Management (PIM), Even Distribution has of several companies. Sobraquès Distribution created a unique database that optimises and Geldoc have joined Réseau Krill, thus the product experience for all departments contributing to its development. Charles Martin (quality, marketing, sales, etc.). The objective of has strengthened the Atlanterra alliance in the these new digital tools is to develop proximity Provence-Alpes-Côtes d'Azur region. Finally, with customers specialising in snacking and Gabopla, a company based in the Nantes region independent tabletop catering. and specialising in the distribution of bakery, pastry and chocolate products, is consolidating For animal nutrition, the deployment of the Boul'Pât branch in Western France. Stim'Vente, a customer relations management software, which is essential in the consulting INTERNATIONALISATION business, facilitates the work of the technical TO CONQUER NEW MARKETS sales teams and offers customers better Even is also innovating and investing to find service. Other deployments such as MOOCs growth relays to pursue its development. The (digital distance learning) are in progress. These continuation of the investment plan around the training courses are for producers, and take theme of infant milk and protein testifies to the the form of educational videos to be delivered Group's desire to internationalise. via the Cooperative's extranet. By 2020, all the producers will have had access to the first The new Créhen infant milk and premium distance learning courses on animal welfare. powder unit (Côtes-d’Armor) has obtained the green light from the Departmental Directorate for the Protection of the Population. It was approved according to the international FSSC 22000 protocol which complements the ISO standards for food safety. The qualification to manufacture infant milk powders gave the starting signal for production ramp-up. Nearly three million boxes of infant milk powder boxes were packaged in 2018. International customers from the Middle East, Asia and South America POLICY have commissioned Laïta for their branded productions. The collaboration with Régilait, a subsidiary of Laïta already operating in Africa Development plans and the Middle East with its France Lait brand, also contributes to the tool's growth. Since 1993, Even has defined the strategy of each one of its activities, using an The international market is also a priority for efficient tool: the development plan. Laïta’s consumer products: in Europe via its It measures the improvements made subsidiaries (Eurilait, Fromka, Laïta Italia, during the year as well as the progress Laïta Iberia and Iber Conseil), in overseas of progresses, in conjunction with the teams. The objectives set, the means to departments and regions or major export from be implemented and the schedules are Laïta’s offices in Rungis and more recently its validated by General Management during operations in New-Caledonia and Polynesia, annual meetings. Besides its material China and Vietnam. The specificities of each efficiency, the development plan sets market require adapting the ranges and the direction, encourages innovation working on brand awareness, such as opening and entrepreneurial spirit, while giving a Paysan Breton account on the Chinese priority to the expression of talents and WeChat social network. the development of personal skills.

62 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

INDICATORS* 12,700 Number of active product references for the range registered in the Product Information Management (PIM) of the Distribution division HEALTH NUTRITION DEPLOYMENT The grouping of health, child and adult nutrition activities under a new banner: ESI Nutrition, supports Laïta's growth in the health nutrition market. This very young entity benefits from the 30 year experience 75.8% of the Ploudaniel site (Finistère) in clinical nutrition and ready-to- eat products, from the 20 year know-how of the Laïta site in Ancenis Extranet consultation rate (Loire-Atlantique)in infant milk powders, but also from the brand new by member farms with, on average, high-tech unit for infant milk powder in Créhen (Côtes-d’Armor). 11.8 visits monthly per farm

€393 M Export turnover for Laïta, i.e. 31% of the turnover

€66.1 M Tangible investments made to support the growth strategy, i.e. 3.1% of the turnover

___ * See methodological note page 68

EVEN 63 02

9TH CHALLENGE

SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE Working in favour of regional development

Through physical investments, job creation, local partnerships, commitments in corporate social responsibility: Even participates in the economic and social activity of the regions it serves.

ENCOURAGING LOCAL PROCUREMENT Even favours local supplies. Laïta's dairy The origin of the ingredients is an essential products are made from milk collected from distinguishing feature for Paysan Breton. farmers in the Brittany and Pays de la Loire Thus, crêpes filled with strawberry jam are now regions (1.5 billion litres in 2018). The milk is then labelled ‘Fraises Gariguette - 100 % origine processed at seven processing facilities across Bretagne’ (Gariguette strawberries - 100% from north-west France: Ancenis (Loire-Atlantique), Brittany) on the packaging. Another illustration Créhen (Côtes-d’Armor), Landerneau (Finistère), of the Group's attachment to the Breton lands Lanfains (Côtes-d’Armor), Ploudaniel (Finistère), from which it arose: Even launched the ‘crêpe Pont-Scorff (Morbihan) and Yffiniac (Côtes- de Poudaniel’ in 2018, referring to its place of d’Armor). birth and manufacture.

Even Distribution also prioritises short distribution circuits: with Sovéfrais and Argel procuring 85 % and 50 % of their inputs respectively via local circuits. This preference for local purchasing is enshrined in their sustainable development charter.

As the founding member and active support of the Produit en Bretagne association, Even participates in the development of the territories Ludovic in which it operates. Six of its branches - A2S PRODUCT MANAGER, ATLANTERRA (Réseau Krill), Argel, Kenty (Atlanterra alliance), ALLIANCE, EVEN DISTRIBUTION Laïta, Pam and SovéFrais contribute to ‘enhancing PLÉRIN, CÔTES-D’ARMOR products thanks to their origin’ alongside 300 other member companies.

“As part of the Atlanterra alliance, 100% FROM BRITTANY we favour sourcing in France with By launching its So Breizh ! private label at the local produce from local actors end of 2018, SovéFrais is pursuing its strategy as whose know-how we recognise. a local player with over 50 years of experience. We were one of the first frozen food The selection of So Breizh ! products is made distributors to be referenced in the in Brittany and its chief raw material is of France Pavilion process. Thanks to Breton origin. It meets growing demand from our independent wholesaler partners, customers for regional products and reinforces we source our supplies directly at SovéFrais' historical identity. the auctions. Our tapenades, tomato confits, and anchovy purées are made by a master craftsman from the Luberon. We have selected an PARTNER SUPPLIERS organic pork, raised in the Dinan Conscious of its economic responsibility to its suppliers, Even has region for our new deli offer. chosen to stabilise and streamline the contracts which solidify its All these are examples of responsible partnerships. Therefore, for around a decade, supply agreement local purchasing that contribute periods have been extended to three years against one. As well as to the economy of the territories offering suppliers more visibility, this measure enables Even to commit and the reassurance of consumers to innovative industrial partnerships and Research and Development on the origin of products.” projects which benefit both parties.

64 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

Working in favour of regional development

EVEN 65 02 SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE

INVESTING IN LOCAL LIFE As well as the privileged partnerships developed Bretagne Commerce International, with higher education institutions, Even Club SRE 29, the road safety club for maintains close ties with many professional companies in the Finistère area, organisations and associations. Each and every Coop de France Métiers du Lait, Even member and employee works in favour of Coop de France Ouest, local development and knowledge transfer. For Fédalis, the federation of specialised food example, they are involved with the following distributors, organisations and associations: Fondation Université de Bretagne Occidentale Agriculteurs de Bretagne (Breton farmers’ (UBO)*, union)*, Initiative Bio Bretagne, Association Bretonne des Entreprises Investir en Finistère*, Agroalimentaires (ABEA)*, Nutrinoë, the professional organisation for Association de la Transformation Laitière Breton livestock feed manufacturers, Française (ATLA), Produit en Bretagne*, Breizh Alim’, Technopôle Brest Iroise*, Breiz Europe*, Valorial, the competitiveness cluster Breizh Small Business Act, the association dedicated to innovation in the future food and created in Brittany by public and private nutrition sector*, professionals, focusing on public purchasing Village by CA Finistère, accelerator of challenges, innovative projects in Finistère. Bretagne Biotechnologies Agroalimentaires (BBA), ___ Bretagne Développement Innovation (BDI), * Founding member

66 EVEN 02 SUSTAINABLE DEVELOPMENT REPORT

SUPPORTING COLLECTIVE ACTIONS In keeping with its cooperative values, Even encourages and supports the actions of citizens. Using a solidarity fund, Even has financed cooperative farming projects in rural communities in developing countries since 1979. For the past 20 years, Even's 'Agriculteurs Solidaires' (farmer solidarity) committee has devoted over €770,000 to agricultural development projects: helping women who process cereal in Ouagadougou in INDICATORS* Burkina Faso, helping the Mignouned Solidarité Rwanda association to set up a farm in the Matyazo sector, supporting the Coeur au Mali association to help populations gain access to drinking water and sanitation, supporting the 89% development of vegetable crops in Senegal, etc. That is also what expressing solidarity means. Percentage of French suppliers for the Distribution division ETHICS AND GOOD CONDUCT CHARTER The values, communication and behaviours that guide the actions of Even Group employees are set out in the Code of Conduct. This guide 100% enables each employee to remain vigilant within a framework that sets collective rules and Dissemination rate of the ethics benchmarks. Given to all employees, this ethical charter to employees charter encourages everyone to reflect on the basic rules to be respected in order to get on well together and protect the company's interests. In parallel, an e-learning course on the subject €22,880 of the fight against corruption is available to managers. Adhering to these fundamentals Amount allocated to Even's contributes to the Group's individual and 'Agriculteurs Solidaires' collective success and progress. (farmer solidarity) committee

1,204 tonnes Donations of milk and dairy products to charities

97.9% POLICY Share of taxes and taxes paid by the Group Priority to in France local purchases

To meet the growing demand for transparency and traceability from customers, Even Distribution’s purchasing department is organised into product families entrusted to specialised buyers. This distribution facilitates sourcing operations for which the choice of the right product and the know-how of suppliers are the main selection criteria. In addition to the sanitary and organoleptic quality of the products, other criteria such as the location of processing plants, the origins of the raw materials used in the ___ products and the suppliers’ CSR policy * See methodological are analysed. note page 68

EVEN 67 02 Methodological Note SUSTAINABLE DEVELOPMENT REPORT DEVELOPMENT SUSTAINABLE

PERFORMANCE RESULTS PAGE RISKS CHALLENGES INDICATORS SCOPE* PERIOD INDICATORS SCOPE* PERIOD

P.32 Risks related 1 €13.4 million Even from 01/01/2018 422 billion litres Even from 01/01/2018 to the GUARANTEEING in net income cooperative to 31/12/2018 of milk collected cooperative to 31/12/2018 competitiveness THE FUTURE OF FARMS of members Supporting a new 100 young members Even from 01/04/2015 and the generation established cooperative to 31/03/2019 transmission of Enhancing member the Cooperative farmer competitiveness €13,500 of aid to establish Even from 01/01/2018 to future Sharing profits young members cooperative to 31/12/2018 generations. Detail: flat-rate financial CLOSE-UP assistance of €7,500, and Support for the new financing up to €6,000 of generation of members the Ecolait improvement Scope: Even cooperative initiative for the farm

60 farms Even from 01/01/2018 included in the cooperative to 31/12/2018 Ecolait initiative

40.3% of farms having Even from 01/01/2018 attended at least one cooperative to 31/12/2018 information meeting or technical and economic training

1 1 P.36 Risks related to 2 10.6 years of average Even group to 31/12/2018 1,795 people recruited or Even group from 01/01/2018 the recruitment DEVELOPING seniority 608 permanent contracts, to 31/12/2018 and retention of OUR HUMAN CAPITAL 1,152 fixed-term contracts employees Encouraging and 35 traineeships employees to express their talents 4.7% of staff turnover Even group1 from 01/01/2018 3,251 trained employees Even group1 from 01/01/2018 Focusing on training related to resignations to 31/12/2018 or 54.2% of the workforce to 31/12/2018 and equal opportunities Calculation: number Calculation: number Creating sustainable of departures due to of employees trained jobs resignations/number of (single person) Enhancing employees present at the attractiveness end of the period Workplace wellness 4.4% absenteeism Even group1 from 01/01/2018 Training budget Even group1 from 01/01/2018 CLOSE-UP Calculation: number of to 31/12/2018 €3,480,907 to 31/12/2018 Training calendar days of illness/ Scope: Even group theoretical number of 67 occupational Laïta from 01/01/2018 calendar days of presence qualification contracts to 31/12/2018 (CQP) issued

P.40 Risks related to 3 99% of Even farms Even to 31/12/2018 180,000 raw milk analyses Even from 01/01/2018 quality SERVING CLIENTS in the Passion du Lait® cooperative Calculation: estimated figure cooperative to 31/12/2018 control AND CONSUMERS initiative by extrapolation and control of WITH DEDICATION Sharing Passion du food safety ® Lait Level of customer Even from 01/01/2018 6 industrial Laïta from 01/01/2018 A commitment to satisfaction in frozen Distribution to 31/12/2018 Food Defense sites to 31/12/2018 product safety products: 15.1 claims for food service Explanation: a Food Recognised products 1 million kg sold (ppm) catering Defense site is an IFS French-made products excluding and/or BRC certified site Making sure customers Boul'Pât are listened to

CLOSE-UP Level of customer Even from 01/01/2018 871 certified references Even to 31/12/2018 Industry initiative: ® satisfaction in fresh Distribution to 31/12/2018 Distribution Passion du Lait products: 14.2 claims for food service Scope: Laïta, 1 million kg sold (ppm) catering 29th: ranking of the Laïta from 01/01/2017 Even Cooperative excluding Paysan Breton brand to 31/12/2017 Food safety and security Boul'Pât Explanation: Kantar ranking in distribution 2018 edition on 2017 sales Scope: Even Distribution

1 1 P.44 Risks related 4 34.01 frequency rate Even group from 01/01/2018 €3,610,000 investment Even group from 01/01/2018 to employee ENSURING to 31/12/2018 in the safety of people to 31/12/2018 health and OCCUPATIONAL safety. HEALTH AND SAFETY All committed! 1.68 severity rate Even group1 from 01/01/2018 95 employees trained Even group1 from 01/01/2018 Road safety to 31/12/2018 in road safety to 31/12/2018 management Promoting health 779 people Laïta2 from 01/01/2018 and work station who have received a to 31/12/2018 ergonomics Preventive Observation for TOP notch! All visit (TOP) CLOSE-UP Cap Even Scope: Even group

___ * Scope: Even Cooperative = parent company of the Even Group, Even Cooperative = majority shareholder of Laïta with 50.57% of the capital 68 EVEN 1French subsidiaries excluding Régilait • 2 Industrial sites 02 SUSTAINABLE DEVELOPMENT REPORT

PERFORMANCE RESULTS PAGE RISKS CHALLENGES INDICATORS SCOPE* PERIOD INDICATORS SCOPE* PERIOD

3 2 2 P.48 Risks related 5 2.15 m of water Laïta from 01/01/2018 €80,500 Laïta from 01/01/2018 to the REDUCING OUR consumed per m3 of to 31/12/2018 amount spent for external to 31/12/2018 environmental ENVIRONMENTAL equivalent processed milk studies on environmental footprint of FOOTPRINT protection our activities Preserving water resources 0.33 MWh/t Laïta2 from 01/01/2018 €1,205,00 Laïta2 from 01/01/2018 Optimising Energy consumption to 31/12/2018 of investments related to to 31/12/2018 energy consumption (electricity and gas) reducing discharges in Reducing per tonne of processed water and air fuel consumption milk equivalent Being proactive in terms of environmental 28.98 kWh/t Even from 01/01/2018 5 sites undergoing a bilan Even to 31/12/2018 regulations Energy consumption Upstream to 31/12/2018 carbone® or energy audit Distribution (electricity and gas) CLOSE-UP of animal nutrition plants €170,754 Even from 01/01/2018 Preserving per tonne manufactured of investments related Distribution to 31/12/2018 water resources to change of refrigerants Scope: Even group 26% of heavy goods Even to 31/12/2018 vehicles, light commercial Distribution vehicles and light vehicles with the Euro-6 standard

1,601 tonnes Laïta2 from 01/01/2018 of products sold to to 31/12/2018 wholesalers, destockers and/or smelters, to combat food waste

P.52 Risks related 6 Dairy production Even to 31/12/2018 95% of farms have Even to 18/03/2019 to the PROMOTING carbon footprint: 0.86 kg cooperative conducted the Cap'2ER® cooperative ENVIRONMENTALLY- environmental equivalent CO2/litre level 1 diagnosis footprint of our FRIENDLY AGRICULTURE of milk activities Creator of sustainable €15,360 spent on Cap'2ER® Even from 01/01/2018 performance level 1 diagnosis on farms cooperative to 31/12/2018 Producing more and better with less 150.6 tonnes Measuring and of empty packaging and Even from 01/01/2018 improving the plastics collected and cooperative to 31/12/2018 environmental footprint recycled through Adivalor From good grass to great milk 56 ha equivalent Reducing and recycling biodiversity 482 farms out to 18/03/2019 waste for 58 ha milk of 734 farms

® Explanation: agro- in the Even Cap’2ER ecological features on the Cooperative CLOSE-UP farm contributing to the Scope: Even cooperative maintenance of biodiversity

P.56 Risks related to 7 No key performance 60 new products Laïta from 01/01/2018 the Group’s DEVELOPING indicator to date for this marketed to 31/12/2018 strategic vision AN INNOVATIVE AND challenge. The objective is SOCIALLY RESPONSIBLE to determine one 75 people Even group1 from 01/01/2018 AGRI-FOOD OFFERING within three years. trained in intellectual to 31/12/2018 Innovating in a spirit of property rights openness Ensuring a constant drive for innovation Protecting our know- how and innovations A focus on health and enjoyment

CLOSE-UP Innovation approach Scope: Laïta

P.60 Risks related 8 €66.1 million of tangible Even group from 01/01/2018 12,700 active product Even to 31/12/2018 to the Group’s INVESTING investments to support to 31/12/2018 references for the range Distribution strategic vision TO STAY AHEAD OF THE the growth strategy, registered in the PIM GAME that is 3.1% of turnover (Product Information Investing in industrial Management) tools Appropriating digital 75.8% of Even Extranet Even from 01/01/2018 technology consultation rate by cooperative to 31/12/2018 Expanding services member farms with, to users on average, 11.8 visits Internationalisation to monthly per farm conquer new markets Explanation: at least once a year CLOSE-UP Development plans €393 million in export, Laïta from 01/01/2018 Scope: Even group that is 31% of turnover to 31/12/2018

P.64 Risks related 9 97.9%: Share of taxes Even group from 01/01/2018 89% of French suppliers Even to 31/12/2018 to regional WORKING IN and taxes paid by the to 31/12/2018 Distribution development FAVOUR OF REGIONAL Group in France DEVELOPMENT compared to the total 100% of employees Even group1 to 31/12/2018 Encouraging local (France and other have received the Group procurement countries in the world) of Ethics Charter 100% from Brittany taxes paid by the Group Investing in local life €22,800 Even from 01/01/2018 Supporting collective amount allocated to Even's cooperative to 31/12/2018 actions 'Agriculteurs Solidaires' Ethics and good (farmer solidarity) conduct charter committee

CLOSE-UP 1,204 tonnes Laïta2 from 01/01/2016 Priority to local of donations of milk and to 31/12/2018 purchases dairy products to charities Scope: Even Distribution

EVEN 69 Conformity and sincerity report

udit eport Rapport de vérification-REV01-10-12-2018 Audit Report-REV01-10-12-2018 v RV_300077_2018_v1 RV_300077_2018_v1 31/12/2018 31/12/2018

udit eport v Responsibility of the public accounting professional SAS CABINET DE SAINT FRONT It is our responsibility, on the basis of our work, to formulate a reasoned opinion on the: AUDIT CONSEIL RSE EXPERT ISE COMPTABLE - Compliance of the Declaration with the provisions of Article R. 225-105 of the French Commercial Code COMMISSAIRE AUX COMPTES - Accuracy of the information provided in accordance with 3° of I and II of Article R. 225 105 of the French Commercial Code, namely the results of policies, including key performance indicators, and actions relating to the main risks, hereinafter the ‘Information’. However, it is not our responsibility to comment on:

Rappeoprot rdt uo p rthoefe cshsiaorntenreel dd ea cl’ceoxupnetratniste d ceosmigpntaatbelde adsé asnig ninéd oerpgeanndisemnte t thieirrds pinadrétp ebnodan otn, stuhre l an odnéclianraantcioianl de - The company’s compliance with any other applicable legal and regulatory provisions, in particular with perorance stateent contained in the anageent report performance extra-financière figurant dans le rapport de gestion regard to vigilance plans and the fight against corruption and tax evasion - The compliance of products and services with the applicable regulations.

ooperative We conducted the work described below in accordance with the professional standards applicable in France and C oopérative EVEN the decree of 14 September 2018 amending the decree of 13 May 2013 determining the terms and conditions raon ihan, loudaniel Traon Beiphoarnt, o29 t h2e6 0c hPalortuedraendi ealc countant designated as an independent thirdpart bod on the noninancial under which the independent third-party body performs its mission. perorance stateent contained in the anageent report

ear ended eceber Exercice clos le 31 décembre 2018 Nature and scope of the work ooperative We carried out work enabling us to assess the compliance of the Declaration with regulatory provisions and Auxora theo associésn cooperativeihan, coopérateurs, partners, louda ni el accuracy of the Information: Enn ournotre capacit qualité as de a professionnelproessional public de l’expertise accountant comptable designated désigné as an organisme independent tiers third indépendantpart bod,, accrédité accredited par b le - We reviewed the activities of all entities included in the scope of consolidation, the main social and under nuber the scope o which is available on the website wwwcoracr, we hereb present environmental risks associated with this activity and, where applicable, its effects on respect for human COeaFRACr end esousd le enuméroceber 3-1055 (dont la portée est disponible sur le site www.cofrac.fr), nous vous présentons notreto ou rapport our report sur onla déclaration the noninancial de performance perorance extra declaration financière or relative the inancial à l’exercice ear endedclos le 31 eceberdécembre 2018 rights and the fight against corruption and tax evasion, as well as the policies resulting therefrom and (ci-(hereinafter après la «the Déclaration ‘Declaration’), »), présentée presented dans in lethe rapport management de gestion report en applicationpursuant to des the dispositions legal and regulatorlégales et their results réglementairesprovisionso the cooperative o rticles des partners,articles L. 225, 102 -1, R. 225 and-105 et R. 225-105 o-1 the du oercial code de commerce. ode - We have verified that the Declaration covers each category of information provided for in III of Article L. 225-102-1 in social and environmental matters

n our capacit as a proessional public accountant designated as an independent thirdpart bod, accredited b - We have verified that the Declaration presents the business model and the main risks related to the Reosppoannsa underb rielistpéo dnubernes ilbai lsiotc iété the scope o which is available on the website wwwcoracr, we hereb present activity of all entities included in the scope of consolidation, including, where relevant and proportionate, to ou our report on the noninancial perorance declaration or the inancial ear ended eceber the risks created by its business relationships, products or services, with regard to the information IlThe appartient Board of auDirectors’ Conseil isd’A responsibledministration for preparingd’établir unea Declaration Déclaration in conformeaccordance aux with dispositi legal andons regulatorylégales et (hereinafter the ‘Declaration’), presented in the management report pursuant to the legal and regulator provided for in I of Article R. 225-105, as well as the policies, actions and results, including key réglementaires,provisions, including incluant a presentation une présentation o the du business modèle odel,d’affaires, a description une description o the des ain principaux noninancial risques riss, extra a- provisions o rticles , and o the oercial ode performance indicators financiers,presentation une o présentationthe policies applied des politiques with regard appliquées to these au riss regard and thede resultsces risques o these ainsi policies, que les together résultats with de eces - We have verified, where relevant to the main risks or policies presented, that the Declaration presents politiques,perorance incluant indicators des indicateurs clés de performance. the information provided for in II of Article R. 225-105 LaTheo Déclaration Declarationpan respo an wasétésibi l établieipreparedt en usingappliquant the entity’s les procédures internal procedures. internes de l’entité. - We assessed the process of selecting and validating the main risks The Board of Directors’ is responsible for preparing a Declaration in accordance with legal and regulatory - We inquired about the existence of internal control and risk management procedures implemented by provisions, including a presentation o the business odel, a description o the ain noninancial riss, a the entity ndependence and qualit control Ipresentationndépendance o e tthe co npoliciestrôle qu appliedalité with regard to these riss and the results o these policies, together with e - We verified that the Declaration covers the consolidated scope, that is, all companies included in the Notreurperorance independence indépendance indicators is estdeined définie b par the les regulator textes réglementaires, texts, the code le o code ethics de déontologieo the proession de la professioninserted in inséréthe decree dans scope of consolidation in accordance with Article L. 233-16 with the limits specified in the Declaration o arch relating to the exercise o the accounting proession and taes into account the provisions o - We assessed the collection process set up by the entity to ensure that the actions and results of the leThe décret Declaration du 30 was mars prepared 2012 relatif using theà l’exercice entity’s internal de l’activité procedures. d’expertise comptable et prend en compte les dispositionsrticle prévues o the à l’article rench L.822oercial-11 du Coodede de n addition,commerce. we Par have ailleurs, ipleented nous avons a qualit mis en control place ssteun système that policiesapport and de vérification key performanceE0110122018 indicators to be mentioned in the Declaration are complete and accurate - We implemented for the key performance indicators and for a selection of other quantitative results that deincludes contrôle docuented qualité qui policiescomprend and des procedures politiques toet ensuredes procédures copliance documentées with ethical visant rules, à assurerproessional le respect practice des 30002018v1 règlesstandards déontologiques, and applicable des legal normes and regulatord’exercice textsprofessionnel et des textes légaux et réglementaires applicables. we considered to be the most important: ndependence and qualit control 31122018 ur independence is deined b the regulator texts, the code o ethics o the proession inserted in the decree1 2 udit eport o arch relating to the exercise o the accounting proession and• taes intodes account procédures the provisionsanaltiques o consistant à vérifier la correcte consolidation des données collectées rticle o the rench oercial ode n addition, we have ipleentedainsi que a la qualit coérence control de sste leurs évolutions that v

includes docuented policies and3, rue procedures Brindejonc des to Moulinais ensure –copliance 31500 Toulouse with ethical rules, proessional practice • des tests de détail sur la base de sondages, consistant à vérifier la correcte application des standards and applicableTél. legal : 05 and 61 24 regulator 74 40 ––– e-mail texts : [email protected]• nalytical procedures consisting in verifying the correct consolidation of the data collected and EXPERT COMPTABLE INSCRIT AU TABLEAU DE L’ORDRE DE LA REION DE TOULOUSE MIDI PRENEESdéfinitions et procédures et à rapprocer les données des pièces ustificatives. Ces travaux ont été menés N SIRET – CODE NA C the consistency of their changes auprès d’une sélection d’entités contributrices et couvrent entre et 1 des indicateurs clés de 2 performance• etailed et résultats tests on sélectionnésa sample basis, pour consisting ces tests of checking the correct application of definitions and procedures and reconciling the data with supporting documents his work was conducted on a selection - ous avons consulté les sources documentaires1 et mené des entretiens pour corroborer les informations of contributing entities and covers between and of the key performance indicators and results qualitatives actions et résultats que nous avons considérées les plus importantes selected for these tests - Nous avons apprécié la cohérence d’ensemble de la Déclaration par rapport à notre connaissance de la - société.e consulted the documentary sources and conducted interviews to corroborate the ualitative information actions and results that we considered most important oens et ressources - e assessed the overall consistency of the eclaration with our knowledge of the company. os travaux ont mobilisé les compétences de personnes et se sont déroulés entre mars et mai 201 sur une eans and resources durée totale d’intervention de 3 mois. ur work mobilised the skills of people and took place between arch and ay over a total intervention ous avons mené entretiens avec 12 personnes responsables de la préparation de la Déclaration, représentant period of months. notamment la direction ressources umaines, la prévention groupe, des directeurs sites, des responsables E, productione conducted et tecnique interviews des withsites ainsi people que des responsible responsables for preparing environnement the eclaration, et prévention particularly des ples. representing the human resources department, group prevention, site managers, , production and site technology Conclusion managers as well as environment and prevention managers from the business units. ur la base de nos travaux, nous navons pas relevé danomalie significative de nature à remettre en cause le fait onclusion que la déclaration de performance extrafinancière est conforme aux dispositions réglementaires applicables et que leass endfo ornm oautiro nwso, rpkr,i swees daidn sn oletu ird entsiefym abnley, msoantte rpiarél smenistsétaetse, mdee nmtas ntihèarte wsionuclèdr ec.a ll into uestion the fact that the declaration of nonfinancial performance complies with the applicable regulatory provisions and that the

Information, taken as a whole, is accurately presented. bservations ans remettre en cause la conclusion exprimée cidessus, nous attirons l’attention du lecteur sur les éléments précisésommen dansts la note métodologique au suet du périmètre et des indicateurs clés de performance. Without calling into question the conclusion expressed above, we draw the reader’s attention to the information specified in the methodological note concerning the scope and key performance indicators. ait à oulouse, le 2 mai 201

L’ORGANISME TIERS INDEPENDANT oulouse, ay A CAE DE A I I

I I

acques de aint ront résident

acues de aint ront resident

3

– –––

EXPERT COMPTABLE INSCRIT AU TABLEAU DE L’ORDRE DE LA REION DE TOULOUSE MIDI PRENEES 70 EVEN N SIRET – CODE NA C

3

Design and production: d’une idée l’autre June 2019 Photographs: Emmanuel Pain Editorial line: Even, Edith L. Communication Printing: Cloître Document printed on PEFC-certified paper. Traon Bihan CS 40003 29260 Ploudaniel France T. +33 (0)2 29 62 50 00 even.fr