California Disclosure

As of January 1, 2012, the California Transparency in Supply Chains Act of 2010 (the “Act”) went into effect in the State of California requiring large companies who conduct business in California to disclose the efforts they are taking to eliminate slavery and human trafficking from their supply chains. It is the policy of the State of California to educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains, thereby improving the lives of victims of slavery and human trafficking.

Ferrero U.S.A., Inc., through its parent, Ferrero International, and its affiliate Ferrero Trading Luxembourg SA (collectively “Ferrero” or “we”), is committed to and fully supports the goals of the Act. At Ferrero, we have the highest commitment to human rights and support universal human rights principles; in particular, the Universal Declaration of Human Rights, the United Nations Rights of the Child Conventions, the Conventions of the International Labour Organization (ILO), and the Conventions of the World Health Organization. In addition, Ferrero supports and formally adheres to the ten principles of the United Nations Global Compact which address human rights, labor, environment and anti-corruption. Our commitment to the respect of human rights, together with Ferrero’s values, constitutes the basis of our policies and everyday activity. We implement this commitment through:

(1) the application of our Code of Business Conduct to all of our trade partners throughout the whole supply chain;

(2) the application of our Code of Ethics to our employees as well as all of our trade partners throughout the whole supply chain; and

(3) our Corporate Social Responsibility engagement, including policies applied at the global level in all relevant fields.

(Ferrero’s Code of Business Conduct, Code of Ethics, and Corporate Social Responsibility reports may all be found through www.ferreronorthamerica.com).

We diligently integrate the standards and obligations of our Code of Business Conduct and Code of Ethics into the way we run our business to address the significant concerns and issues covered by the Act, and have undertaken the efforts described below to ensure and verify the absence of slavery and human trafficking in our supply chain.

Supply Chain/ Supplier Requirements

Through our Code of Business Conduct and/or Code of Ethics, we require the following from all employee and third party participants throughout the supply chain:

(1) that they respect employment-related legislation and regulations in accordance with international standards (including, but not limited to, laws regarding slavery and human trafficking of the country or countries in which they are doing business);

(2) that they be committed to the elimination of child labor, starting with its worst forms, and of all forms of slavery, human trafficking, forced or compulsory labor, and prison labor;

(3) that they respect human rights and ensure that none of their employees shall suffer from any form of discrimination, abuse, or harassment; and

(4) that they will comply with our Code of Business Conduct and Code of Ethics.

To this end, Ferrero incorporates into its third party agreements, provisions that enable us to ensure that those third parties who are part of our supply chain are similarly as committed to these human rights principles. Specifically, our agreements contain provisions that seek to ensure that all of the materials, raw materials and other goods supplied by our suppliers have been obtained and transformed in full compliance with all local and other applicable laws, regulations and rules, as well as with the requirements established by the applicable international Conventions. As a further safeguard, our agreements include a provision that suppliers acknowledge that they reviewed and acknowledge and agree to be bound by the Ferrero Code of Ethics.

Inspections/ Audits

Ferrero reserves the right to verify its suppliers’ and other third parties’ compliance with the Code of Business Conduct and Code of Ethics by conducting audits and unannounced inspections of suppliers to examine their business practices, records, and facilities as well as to conduct private interviews with employees. Ferrero will not engage in a relationship with any potential supplier or third party that is not willing to accept the Code of Business Conduct, Code of Ethics or conditions established by Ferrero to verify compliance therewith. In the event that we become aware of any actions or conditions that are not in compliance with our Code of Business Conduct and/or Code of Ethics, Ferrero has the right to demand that the supplier or third party implement a corrective action plan or terminate the commercial relationship altogether. Ferrero uses independent third parties to assess supplier compliance with its Code of Business Conduct and Code of Ethics.

Employee Training/ Accountability

Ferrero is committed to providing employees with the tools and training needed to successfully perform their jobs, as well as apply and demand compliance with the company’s Code of Business Conduct and Code of Ethics. We train employees from our supply chain/ procurement department to identify and respond to a wide range of supply chain and procurement issues and risks, including those related to all forms of child labor, slavery, human trafficking, forced or compulsory labor, and prison labor. Ferrero provides regular training updates and programs as necessary.

When the Code of Ethics was implemented in 2010, it was provided on a global basis to all Ferrero employees. Training programs and other mechanisms for insuring that employees recognize the importance of the Code of Ethics, as it relates to their various functions, were implemented with the issuance of the written Code of Ethics. Employees were asked to acknowledge that they had received and read the Code of Ethics. At the heart of the Code of Ethics is the essential principle that all laws and regulations must be respected. Therefore, regardless of where they work, every Ferrero employee must not only respect the laws and regulations in force, but also the Code of Ethics. Failure to comply with the rules of conduct outlined in the Code of Ethics is grounds for the application of disciplinary actions up to and including dismissal, according to applicable national legislation and without prejudice.