Ferrero S.p.A.

The Ferrero Group approves the consolidated financial statements for the year ended 31 August 2014 with a turnover of 8.4 billion Euros

Ferrero International S.A., the parent company of the Ferrero Group, approved the consolidated financial statement of the Group for the year ending 31 August 2014. On that date, the Group was comprised of seventy-four consolidated companies, with twenty production plants, of which three operate within the framework of the Social Enterprises. Ferrero products are present directly or through authorised distributors in over 160 countries.

The Group, of which Giovanni Ferrero is the Chief Executive Officer, closed the financial year with a consolidated turnover of 8,412 million Euros, indicating an increase of 3.9% from the previous period, which closed with a total of 8,100 million Euros.

Despite the difficulties faced internationally, this growth is the result of an extraordinary dynamism in the development of new markets: the sales of Ferrero products have matched and in some cases even improved from previous years’ results in Asia, Russia, United States, Canada, Brazil, Mexico and Turkey. The markets of the Middle East are also in a phase of strong growth.

The results achieved in the core markets of the UK, Poland and Germany were good and in some cases excellent. Whilst those achieved in the principle markets of south Europe were substantially stable or slightly down, due to the effects of the economic crisis.

In terms of products, particularly positive performances were seen by “Kinder Joy” (known as “Kinder Merendero” in Italy), Kinder Bueno, Kinder Surprise and Ferrero Rocher, which have helped the overall growth in various markets, with an increase in volumes of 29%, 10%, 9% and 6% respectively. Nutella and Tic Tac have also performed well.

The Group’s result this year, against a substantially stable operating income, presents an improved financial result, with a profit before tax of 907 million Euros (+14.2% compared to last year). The new investments made by Ferrero during the last financial year came to 537 million Euros, of which 458 million (5.4% of sales) was used to strengthen the Group’s industrial and production activities, mainly in Italia, Germany, Canada, India, Brazil, Mexico and China.

The Ferrero Group continues to strengthen its presence in the hazelnut market, to guarantee and improve the quality of a fundamental raw materials and ensure a unique taste for its products, including Nutella, Ferrero Rocher and Kinder Bueno. In fact in July 2014, the Group announced its acquisition of 100% of the family run group Oltan, a leading operator in the supply, processing and sales of the hazelnut market, with an annual turnover of around $500 million. The acquisition will reinforce Ferrero’s social commitment to sustainable cultivation methods, a commitment that has already been demonstrated in Turkey through the dedicated “Ferrero Farming Values” (FFV) programme. The programme places side by side social commitment, pursued in collaboration with partners and institutions, and the development of cultivation techniques used by the local farmers, with an consequent increase in productivity.

The average Group workforce during 2013/2014 was 24,836, increasing in comparison to the previous year (22,831 in 2012/2013). The headcount as of August 31, 2014 amounts to 27,457 employees (24,777 on August 31, 2013). When also including external collaborators, the total reaches 34,236 people.