THE FERRERO GROUP APPROVES THE CONSOLIDATED FINANCIAL STATEMENTS 2017/18

Ferrero International S.A., parent company of the Ferrero Group, approved the Consolidated Financial Statements of the Group as of and for the year ended August 31, 2018. At that date, Ferrero International S.A. consolidated 94 companies worldwide, with 25 operating manufacturing plants. The Group’s products are present directly or through authorised distributors in over 170 countries.
Besides the global uncertainties and the industry challenges and trends, the Group was able to consolidate and confirm its performance during 2017/2018. The Ferrero Group continued to boost investment in its iconic brands and maintain a high level of operating income as well as strengthen internal R&D activities.

The Group, of which Mr. Giovanni Ferrero is the Executive Chairman and Mr. Lapo Civiletti is the CEO, closed the financial year with a consolidated turnover of 10.7 billion Euro, with an increase of +2.1% compared to the previous year, which reported a consolidated turnover of 10.5 billion Euro.
The sales of finished products increased by 3.5% (6.8% at constant rates) driven principally by Germany, France, Italy, Poland, UK and the USA.

The products that led the growth in net sales of finished products were Nutella, Ferrero Rocher, Kinder Joy, Kinder Bueno and Kinder Chocolate.
The Group's average workforce in 2017/2018 was 31,748, an increase from 30,305 employees in 2016/2017. The headcount as of August 31, 2018 amounted to 35,146 employees, compared to 34,543 as of August 31, 2017.

For another consecutive year the Group continued to invest in improving and expanding its factories, plants and equipment in line with its entrepreneurial and social commitments, as part of its corporate strategies. Key corporate strategies led to ongoing improvements in the quality and competitiveness of the products portfolio, while paying close attention to product freshness, food safety and the environment, which remains an important commitment for the Ferrero Group.

On March 30, 2018 the Ferrero Group announced the acquisition of Nestlé USA's chocolate confectionary business. Some iconic American brands, such as Butterfinger®, BabyRuth®, 100Grand®, Raisinets®, and the exclusive right of Crunch® brand for the U.S. market became part of the Ferrero brand portfolio. The acquisition also included two manufacturing facilities in Illinois.

The Group sustained its technological development strategy through the expansion of its production capacity, with total capital investments amounting to 673 million Euro. On the total amount of capital investments, the most significant part was focused on property, plants and equipment (596 million Euro) mainly in Italy, Germany, Canada, Poland, and Belgium. The Group also continues to invest significant capital in Luxembourg for the construction of the new headquarter building.

Luxembourg, 21 February 2019