FRoSTA AG Sustainability Report 2016

Contents
About FRoSTA AG
Sustainability management
Our employees
What we have achieved
Our goals for the future
New products in 2016
How it all started
The FRoSTA Purity Command
Climate protection
Transparency and sourcing
Our suppliers
The FRoSTA packaging
Our social commitment
Introducing our "comic heroes"
About this report
Glossary
Imprint

FOREWORD FOREWORD Dear readers, We are delighted that you are interested in our company and our commitment to sustainable and responsible conduct of business. We have summarised our initia- tives for you in our first Sustainability Report. In the sixties, our company, FRoSTA, began selling fish that had been caught at sea, and processed and frozen on board the ship. At that time, the term “sustainabil- ity” wasn’t very common. However, even then we knew that the future of our company and the next genera- tion depended on conserving the fish population. The subject of sustainable fishing still influences how we operate to this day. At the end of the nineties, FRoSTA already offered a wide range of ready-to-eat products, and was required to compete with the large frozen food brands on the one hand, and the economy brands on the other hand. It was a difficult situation, as the recipes and flavour of our products were the same as the competitors’. We decided to radically change our course and completely stop using any additives and flavour- ings. Instead, we chose the best ingredients from responsible sources and provided the users with the highest possible level of transparency. At the start of 2003, after two years in development, the new FRoSTA products came on to the market. By doing so, we made sustainability the core value of our brand, FRoSTA. However, economic success didn’t come at first. Sales dropped dramatically, and FRoSTA recorded losses as our products had become more expensive due to the new strategy, and the customers were initially very reluctant to buy our new products. Fortunately, we managed to survive this difficult initial period. We didn’t change anything about our concept. However, we did improve communications and were confident that consumers would be won over by the high quality as soon as they tasted the products. our intensive cooperation with our suppliers. Along- side the qualitative characteristics of the ingredients, we also agreed in detail upon the way our ingredients are produced, processed, and transported. As early as 2008, we began to determine the carbon footprint of our products and assess the impact our company’s operations have on the environment. We were able to identify areas that could be improved and set ourselves goals for the future. With this project, we at FRoSTA created the formal structures of our sus- tainability management measures. In the past few years, we also worked actively on improving our approach to social responsibility. We launched projects for both the people who produce and process our ingredients, and also for the commu- nities where our four production plants are located. Why are we now publishing a Sustainability Report? Public interest in this subject has grown significantly over the past few years. We see this report as an excel- lent opportunity to compile reports on our activities and publish them in an informative and entertaining way. At the same time, we would also like to provide a forecast of what subjects we will deal with in the future. Our decision to include no additives in our meals meant that the quality of the ingredients used became a very high priority. They must not only have an excellent natural flavour, but they themselves must also be free from additives. We are able to ensure this because of Our first Sustainability Report is the perfect chance to clarify in what order and for what reasons we have engaged with the topic of sustainability since our com- pany was founded. Seven stories will introduce some of our employees that have substantially driven vari-

CONTENTS 2 3 ous projects and topics forward. Of course, they repre- sent the whole FRoSTA team, who are all responsible for everything we have achieved so far. Here, I would like to express my gratitude to all our emplyees for their extraordinary commitment to increasing sustain- ability at FRoSTA. In conclusion, I would like to make another comment on the structure of this report: to improve readability, we have placed all technical specifications and cal- culations in the latter section of this report (page 20), and tell our stories in the form of comics. We hope, that not only sustainability experts will enjoy this report, but also anybody who is interested in FRoSTA. Let’s have a chat! I would love to hear your opinion, for example at the FRoSTA blog. I will answer your com- ments personally! Yours, Felix Ahlers CONTENTS ABOUT FRoSTA AG ................................................................4 TRANSPARENCY AND SOURCING ................................. 26 SUSTAINABILITY MANAGEMENT ........................................6 OUR SUPPLIERS ............................................................. 28 OUR EMPLOYEES .................................................................11 THE FRoSTA PACKAGING .............................................. 30 WHAT WE HAVE ACHIEVED ................................................14 OUR SOCIAL COMMITMENT ........................................... 32 OUR GOALS FOR THE FUTURE .........................................16 INTRODUCING OUR “COMIC HEROES” ............................ 34 NEW PRODUCTS ..................................................................18 ABOUT THIS REPORT ......................................................... 36 HOW IT ALL STARTED .................................................... 20 ABBREVIATIONS ................................................................. 36 THE FRoSTA PURITY COMMAND .................................. 22 GLOSSARY ............................................................................37 CLIMATE PROTECTION .................................................. 24 IMPRINT ................................................................................ 38

ABOUT FRoSTA AG 4 5 ABOUT FRoSTA AG More than 1,600 people work for FRoSTA AG in eight countries. We produce at three plants in Germany and one in Poland. The FRoSTA brand is a successful provider of frozen fish, vegetables and meals in Germany, Poland, Aus- tria, Italy and Eastern Europe. The FRoSTA “Purity Command” is our way of promising that we will never add any colours, flavourings, flavour enhancers, sta- bilisers or emulsifiers to any of our branded products. FRoSTA products are available from supermarkets and include a range of vegetables, fish, fruit and herbs as well as classic dishes such as nasi goreng and paella. In April 2013, FRoSTA was the first frozen food brand to publish on the Internet the countries of origin of each batch of our ingredients. Since autumn 2015, 1,665 EMPLOYEES IN 8 COUNTRIES. we have included this information on all of our prod- uct packaging as well. FRoSTA AG is also a specialist production partner in the development and production of high-quality customer brands for the European retail and whole- sale sectors. CLICK HERE FOR MORE INFORMATION. Moscow Hamburg Bremerhaven Bydgoszcz Lommatzsch Prague Paris Bobenheim-Roxheim Budapest Bucharest Rome Production Sales

SUSTAINABILITY MANAGEMENT SUSTAINABILITY MANAGEMENT OUR RESPONSIBILITY: FROM THE SEED TO THE RECYCLING BAG! Processing by suppliers: Socially responsible and sustainable suppliers Partnerships Climate protection and energy Health and product safety Compliance Transport to FRoSTA: Climate protection and energy Transport to FRoSTA: Climate protection and energy Vegetable cultivation: Biodiversity Water Responsible suppliers Fishery: Sustainable fishing Breeding: Animal welfare Our vegetable processing: Climate protection and energy Health and product safety Waste water Fair employment Diversity and equal opportunities Compliance Our own vegetable farms in Germany (27% of all raw materials): Biodiversity Can be traced back as far as the field Water Climate protection and energy Health and product safety Cities/communities/society Social commitment Stakeholder involvement

SUSTAINABILITY MANAGEMENT SUSTAINABILITY MANAGEMENT AT FRoSTA Since the introduction of the Purity Command in 2003, sustainability has been the core value of our FRoSTA brand. Our purchasing and product development departments have played an important role in Sustainability Man- agement since that time. The Purity Command imposes strict requirements for all raw materials used in our FRoSTA brand products, and these requirements have also become a permanent part of our purchasing and development policy (as a component of our Quality Management handbook). The handbook not only specifies the qualitative requirements of the products themselves, but also our own requirements for respon- sible cultivation, breeding, and fishing. We have also introduced additional formal structures for our Environmental Management. During the CO2 Project of 2008, we established the responsibilities at each of our locations. The calculations of our climate balance and our carbon footprint combine and regularly evalu- ate data from all of our facilities. In 2016, we created a Sustainability Organigram, which illustrates how the responsibilities in the areas of product-related, social, and ecological sustainability are delegated. Our sustainability team comprises around 50 employ- ees at six locations. These include three main Sus- tainability Managers (for the areas of Environment, Product, and Society), whose task is to compile the relevant sustainability topics, both within the com- pany and externally, and forward them directly to the executive board. The board discusses these topics and decides what level of priority each should take. The ultimate responsibility for sustainability at FRoSTA lies with the CEO. The formal process of a “materiality analysis” took place in several workshops, in which around 20 mem- bers of the sustainability team participated, as well as some members of our Workers’ Council. The stakeholders and topics relevant to our company were compiled, evaluated, discussed at length, and then narrowed down. As a food manufacturer, we are aware that we are not only responsible for our own processes, but also for all of the steps along the production chain: from cultiva- tion of raw materials, to fishery, animal breeding, and packaging manufacturing, to our suppliers’ processing methods, the transportation to our own factories, right up to consumption by the customer and the disposal of packaging (see graphic on pages 6-7). INVOLVING OUR MOST IMPORTANT STAKEHOLDERS EMPLOYEES Many of our employees are already involved in the sustainability topics relevant to our company in their day-to-day work, for example in Purchasing, Product Development, or Environmental Management. Addition- ally, we have various channels that we regularly use to provide employees with information. The most impor- tant one is our intranet, MyFRoSTA!, which all of our 1,665 employees can access. What’s special about this intranet is that all employees can communicate with one another, regardless of hierarchy. Even employees that don’t have a work computer can access the intranet using their own mobile phones or using available termi- nals, which can be found in the canteen, for example. In this way, we can send a message, question, or request to every employee – the executive board included – and we do indeed make use of this opportunity. On the intranet, we communicate our sustainability efforts to our employees, but we also use this channel to identify the topics that are important to our employees from their queries and posts. In 2016, we conducted a large survey about our cor- porate culture among all of our employees. Comple- mented by regular surveys on inter-departmental cooperation and supervisor evaluations, this provides highly valuable feedback from all employees at all locations on their satisfaction and dedication. After analysing the results, measures are taken to tackle any potential shortcomings. Since 2015, we have used the intranet to inform all of our employees about our charity projects. Everybody can get involved with the discussion and suggest social projects that FRoSTA can donate money to.

SUSTAINABILITY MANAGEMENT 8 9 Materiality matrix h g h i o t e c n a v e l e R y t e i c o s / s r e d l o h e k a t s Animal welfare Responsible suppliers Cooperation throughout the supply chain Biodiversity and over- fertilisation/pesticides Consumer information and communcation Health and product safety Climate protection and energy Involvement of stakeholders Innovations Economic performance and market presence Life-cycle manage- ment/Recycling Social commitment Compliance and anti-corruption Water & waste water Diversity and equal opportunities Fair employment Sustainability Management Relevance to FRoSTA high Key: Forecasted changes to relevance No change Change in the axis direction indicated CONSUMERS Direct contact with our customers is very important to us. Our customer phone line is not an anonymous hot- line, but instead rings in our office in Hamburg, and all email queries are answered personally by our own employees. The FRoSTA blog has been around since 2005, which contains reports from our employees about their work. Readers of the blog can start discussions with FRoSTA employees and ask questions. Furthermore, at our website, www.frosta.de, every product can be rated and commented on. Just like with the FRoSTA blog, every comment here is posted online immediately, without being moderated, and serves to inform other consumers and at the same time, gives us valuable feedback on the quality of our products. NGOS The most relevant NGOs (non-governmental organi- sations) to us are those that concern themselves with consumer-related and environmental topics. We think it's very important and helpful to exchange ideas with them on the current topics that are relevant to us. That’s why we initiate direct contact whenever the opportunity comes up. Over the last few years, these opportunities

SUSTAINABILITY MANAGEMENT included the traffic light system for the nutritional value of products, labels to indicate product origin, questions of animal welfare, sustainable fishing, climate pro- tection, and environmentally-friendly packaging. The knowledge we were able to gain from these discus- sions was taken into account in the execution of all of our projects. SUPPLIERS Our suppliers are involved in our sustainability pro- jects in many different ways. Introduced in 2003, our Purity Command means that all of the ingredients in our FRoSTA products are free from additives. Accord- ing to the law, not all additives in the finished prod- uct must be declared, therefore we often also have to make the effort to convince our suppliers to comply with this requirement. We source 48% of all of our raw materials from Ger- many. 27% of the raw materials are vegetables sourced from our two vegetable processing facilities. Generally, we purchase our goods directly from the farmer. In some cases, our direct contract partners are retailers. Even in those cases, we feel responsible for the conditions on site, and therefore include our farm- ers in our risk management processes and conduct site visits. All of the suppliers along our supply chain are expected to comply with our Code of Conduct in all mat- ters of social sustainability. Today, when visiting sup- pliers, matters of social sustainability are always a key component of the agenda. We ask our suppliers to provide us with detailed infor- mation on their emissions, so that we can accurately calculate our Product Carbon Footprint. We are in close contact with them and are also happy to pass on our knowledge of methods for calculating CO2 emissions. We worked very closely with our packaging suppli- ers, the “Grünen Punkt” organisation that promotes recycling, and its specialist department for sustaina- ble packaging design (design4Recycling) on the “envi- ronmentally-friendly packaging” project in 2015/2016. This resulted in new foil packaging with a significantly improved environmental balance due to the use of mono-material packaging and water-based ink. We purchase all of our raw vegetable, fish, and meat products frozen. This not only improves the quality, but is also good for the environment, as we can therefore completely avoid using air transport, because if the products are kept frozen at -18°C, there’s no need to hurry. Our products sourced from overseas are always transported by ship. PUBLIC RELATIONS We're always happy to receive requests from journal- ists and camera teams who wish to report on how our products are manufactured. The public have shown great interest, which is why we always say yes to such requests. Just like direct communication with consum- ers, suppliers, and NGOs, these visits and interviews help us to understand how our company is seen by out- siders and what people expect from us. FRoSTA stands for transparency: At our headquarters in Bremerhaven, we replaced a part of the wall facing the street with a glass panel. As such, anybody passing by can look in and see how we manufacture our prod- ucts, without having to make an appointment.

OUR EMPLOYEES 10 11 OUR EMPLOYEES We offer attractive jobs and enable our employees to contribute their expertise and creativity in all areas. We are proud of our low employee fluctuation rate, which we see as a sign of high employee satisfaction and loyalty. Employees by gender 40.4% female Employees FRoSTA Administration of which administrative of which operative 2015 2016 210 131 79 210 127 83 59.6% male FRoSTA Production Facilities 1,421 1,455 of which at Bydgoszcz of which at Bremerhaven of which at Lommatzsch of which at Bobenheim-Roxheim 591 539 160 131 603 549 162 141 Group Total 1,631 1,665 EMPLOYEE STOCK OPTIONS Our employees are a crucial part of our company and each of them contributes to our overall success. There- fore, we introduced employee stock options many years ago, which means that any employee can purchase discounted shares in FRoSTA once a year. In 2016, 405 employees (2015: 387) took part in the offer and pur- chased shares. We are delighted by the popularity of this programme and the confidence in the company that it represents, and we hope that even more employees will become FRoSTA shareholders in future. Employees by age group 31.4% over 50 19.7% under 30 48.9% 30-50 Employees by type of employment 28% salaried employees Employees by nationality German Polish Turkish Portuguese Italian Bosnian Hungarian Serbian Croatian Other 72% industrial workers 50.5% 36.5% 4.9% 4.8% 0.5% 0.3% 0.3% 0.2% 0.2% 1.6% APPRENTICESHIPS AND TRAINING Our apprenticeship and training programmes allow us to educate our own junior employees so that they can fill vacancies within the company. This goal has the highest priority at FRoSTA.

OUR EMPLOYEES We promote and fund internal job rotation, also between different locations, as this allows our employees to gain diverse experiences and expertise. This is important for the personal and professional development of each and every employee, and also very significant to us in the long term, as we are able to fill management positions with skilled workers from our own ranks. We place great importance on ongoing education. Therefore, we are always investing in education in all areas of our company. We take pride in the fact that 478 employees took part in training programmes in 2016. Communication between our employees is the key to our success. This especially applies to the exchange between our international locations. Therefore, we require a good knowledge of English for many roles. As part of our training programme, we offer a wide range of language courses at all levels to support day-to-day operations. CORPORATE CULTURE AND SHARED VALUES – WE ARE FRoSTA! Applying the values of the corporate culture is the basis for prolonged success in any company. In 2014, we launched the largest single international, cross-hier- archy training programme in our company’s history, in order to ensure that all FRoSTA employees know and understand our corporate culture, our shared DNA. As this is a top-level matter, the entire executive board were the first to take part in a six-day training pro- gramme with a focus on “corporate culture, shared values, and our common rules of the game”. Afterwards, the same information was also given to all 370 management and administrative employees at all locations. The focus of this training, which also lasted several days, was placed on the special responsibilities that managers have for their employees. This is because the entrepreneurial thinking and initiative shown by employees are crucial components of our success. At FRoSTA, we hope to encourage such potential. Fur- thermore, our management employees are tasked with improving interpersonal and inter-departmental coop- eration and encouraging identification with FRoSTA’s strategic orientation throughout the entire company. The goal is to create an atmosphere where compliance with our values can and should be demanded by all employees, regardless of hierarchy. The training will be continued in 2017. FEEDBACK CULTURE An applied, universal feedback culture is an important instrument for developing a productive corporate cul- ture. It is important for each employee to know where they stand, in order for them to be able to develop. That’s why we regularly conduct structured feedback sessions throughout the entire administratíve depart- ment. All management employees at the production facilities also take part. Furthermore, employees evaluate their supervisors once a year. The results help our managers to improve their own performance. Additionally, once a year, we offer the various depart- ments the opportunity to provide feedback on coopera- tion. This helps us as a company to identify weaknesses and improve the cooperation between departments using targeted measures. “Together, we are stronger”. In line with this motto, we support measures that encourage teamwork by tak- ing part in activities together outside of the usual work environment. Alongside the annual company parties at all locations, we also support everything from inter- and intra-departmental social events, right up to inter- national company events. DIVERSITY, EQUAL OPPORTUNITIES, AND RECONCILING CAREER AND FAMILY In all areas of our company, we strive to ensure a bal- anced gender ratio. As we would like to increase the number of women in management roles, developing modern employment models to better reconcile career and family will take a high priority at FRoSTA in the com- ing years. That's why, where possible, we are imple- menting agreements ranging from increased flexibility of working hours, to regulations for working from home. Today, we are observing positive development in many situations in our day-to-day work together. Our corpo- rate culture is now expressed as 15 individual values. These are displayed and communicated at many places throughout the company. Our new intranet, also intro- duced in 2015, which all 1,665 employees can access, is also used to serve this purpose. Satisfaction is a crucial element for long-term employee retention. That’s why employees that need a break are given the opportunity to take a sabbatical. There are many reasons why an employee might want such a break. We are convinced that all parties benefit from this opportunity, as the employee can return to work after a break with less stress and increased focus.

OUR EMPLOYEES 12 13 As an internationally active company, “Diversity” is of great importance to the future of our company. COMPLIANCE The fact that at all locations we employ individuals from a diverse range of cultures enriches our com- pany. In this context, we offer refugees the opportu- nity to get to know us, and vice versa, as part of an internship, which can be developed into an appren- ticeship if the qualification is right. Compliance with the applicable laws and guidelines is a central component of our company ethos. At FRoSTA, these rules are described in full in the Compliance Policy Paper, which is accessible to all employees and applies to all employees and business partners world- wide, without exception. Any infringements of the Com- pliance rules will not be tolerated and will have legal consequences. A Compliance team regularly inspects and updates the Risk Catalogue and also introduces any necessary measures. This team consists of repre- sentatives from the various business areas and loca- tions at FRoSTA AG and reports to the executive board. All employees are obligated to take part in regular Compliance trainings and are required to report irreg- ularities or infringements to the Compliance team, in complete confidence.

WHAT WE HAVE ACHIEVED WHAT WE HAVE ACHIEVED SUSTAINABILITY GOALS THAT WE HAVE ALREADY REACHED AND WILL CONTINUE TO APPLY IN THE FUTURE Applies to: FRoSTA brand FRoSTA AG Product quality, safety, and declaration 100% free from food additives and flavourings 100% MSC, ASC, or the highest available sustainability standard for all seafood and fish 100% free-range eggs 100% declaring all ingredients on the packaging; no collective terms 100% specification on the packaging of the country of origin of all ingredients 100% traceability of all vegetables and herbs as far as the seed Packaging Paper and cardboard packaging from 100% FSC-certified paper 100% pure, recyclable mono-material for foil packaging 100% water-based ink for foil packaging Aluminium-free packaging Environment and Climate CO2e emissions reduced by 14.5% since 2007 Business travel reduced by 24% since 2007. 100% certified clean energy for manufacturing FRoSTA brand products Calculation of the product carbon footprints (PCFs) throughout the entire product life cycle to be published at www.frosta.de Strict CO2 limits for all company vehicles; incentive programme for choosing smaller vehicles Compensation for the remaining CO2 emissions from our company vehicles each year with Gold Standard CO2 certification. Our fleet is therefore carbon-neutral. Creation of a FRoSTA Corporate Climate Balance Supply Chain All suppliers sign the FRoSTA AG Code of Conduct 40% of our suppliers in high-risk countries are members of Sedex and/or certified according to a recognised social standard (BSCI, SMETA, SA8000) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ – – ✓ ✓ ✓ ✓ ✓ ✓ = Yes = According to customer specifications – = No

WHAT WE HAVE ACHIEVED 14 15 SUSTAINABILITY GOALS THAT WE HAVE ALREADY REACHED AND WILL CONTINUE TO APPLY IN THE FUTURE Jobs/Employees Employee fluctuation rate in Germany: 2% Salaries are based solely on the qualifications and specific job requirements of the employees. Share of women in management roles: Upper management 27%; Lower management 34% Employee Stock Options: Employee shares programme, which allows the employees to purchase discounted FRoSTA shares each year Availability of flexible employment models and the option to work from home in certain business areas We educate our own technical and commercial employees: Currently, we have 30 apprentice employees. Apprenticeships and training: In 2016, 478 employees took part in our training programmes. Annual, structured feedback sessions for all administrative employees and production facility managers, as well as regular evaluations of supervisors and departments Language courses offered at all levels Option to take a sabbatical Job rotation encouraged Social Commitment 2% of FRoSTA AG’s dividends from the previous year are spent on social projects. Integration of refugees by offering internships with the option for an apprenticeship Supporting the German Zusatzstoffmuseum [Additives Museum] in Hamburg Supporting the FRoSTA culinary school at the Bremerhaven Klimahaus Applies to: FRoSTA brand FRoSTA AG ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ = Yes = According to customer specifications – = No

OUR GOALS FOR THE FUTURE OUR GOALS FOR THE FUTURE SUSTAINABILITY GOALS THAT WE WOULD STILL LIKE TO ACHIEVE Product quality and safety Reduce the complaint ratio by 20% (calculated based on the number of complaints received against FRoSTA brand products in ppm) Develop a FRoSTA animal welfare standard: Reduce livestock density, improve live- stock health, minimise medication of the livestock Develop a FRoSTA standard for farmed fish and seafood that exceeds the require- ments of the ASC standard: No colourants in feed, lower livestock density, improve livestock health, minimise medication of the livestock 100% ban on palm oil Environment and Climate Applies to: FRoSTA Brand FRoSTA Group Deadline ✓ ✓ ✓ ✓ ✓ 2020 2020 2020 2018 Long term goal: continue to reduce greenhouse gas emissions related to the manufacturing of our products. Our long- term goal is to achieve completely carbon-neutral manufacturing processes. Interim goals: Reduce the FRoSTA Group's CO2e emissions (Scope 1-3) by 5% compared to 2013 Reduce energy consumption (in kWh/t FP) by 5% compared to 2013 Reduce business travel inc. company vehicles (in pkm/t FP) by 5% compared to 2013 Average emissions from the FRoSTA AG fleet max. 95g CO2/km 100% electric or alternate-fuel company vehicles Increase sales of vegan and vegetarian products from 30% to 40% Packaging and Environment ✓ ✓ ✓ ✓ ✓ ✓ Overarching goal: Our packaging has no negative effects on humanity or the environment. Interim goals: Reduce materials consumption for outer packaging by 5% Ratio of folded boxes to foil bags at 50:50 Supply Chain 100% of suppliers in BSCI high-risk countries are Sedex members and certified according to internationally-recognised social standards (SMETA, BCSI, SA8000) Unannounced social auditing of 100% of our suppliers in BCSI high-risk countries without a recognised social standard, conducted by an external certification agency ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – – ✓ – ✓ ✓ 2017 2017 2017 2020 2025 2020 2020 2020 2020 2020 ✓ = Yes = According to customer specifications – = No

OUR GOALS FOR THE FUTURE 16 17 SUSTAINABILITY GOALS THAT WE WOULD STILL LIKE TO ACHIEVE Applies to: FRoSTA Brand FRoSTA Group Deadline Social Commitment Long term goal: We take responsibility for the living conditions in the regions of our plants and those of our suppliers and make a contribution to improving these conditions. Interim goals: Support a two-year-long education project in Equador with the global children’s charity organisation “Plan International” Create a future-ready concept for advancing the FRoSTA culinary school for children ✓ ✓ ✓ ✓ Dec. 2018 End of 2017 Jobs/Employees Long term goal: We take responsibility for the wellbeing of our employees. We offer attractive jobs and enable all of our employees to contribute their expertise and creativity. We strive to achieve a balanced gender ratio at all levels. Develop and introduce flexible employment models and the option to work from home in the business areas where this is feasible. Develop additional trainee programmes for in-house recruitment of junior manag- ers in all business areas. ✓ ✓ ✓ ✓ ✓ ✓ 2025 2020 2018 ✓ = Yes = According to customer specifications – = No

NEW PRODUCTS IN 2016 HI THERE, WE’RE NEW! NEW FRoSTA PRODUCTS IN 2016 The 23 new products that we launched in 2016 are of course also subject to the strict FRoSTA Purity Command. Our products have been consistently free from all additives and flavourings since 2003. Since 2016, we have also included the country of origin of all in- gredients on our packaging. FISH FOR THE FRYING PAN OR OVEN Caught on the high seas and frozen immediately, these MSC-certified Alaska pollack fillets meet all the requirements set out by our company founder, Dirk for good fish. THREE VARIETIES OF FISH VEGGIE BURGERS In our opinion, these vegetable burgers taste much better than meat burgers. If you read the section on climate protection in our sustainability report, you will see why our colleague Urban has another reason to be happy about our veggie burgers. THREE VARIETIES OF VEGGIE BURGERS VEGETABLES – PURE AND SIMPLE Your own garden is probably the only other place you will find fresher peas. When it comes to these delicate vegetables, the race against time starts immediately once they are harvested and only stops when they reach your plate. Or the deep freeze section at –18 degrees, where our peas manage to be within two hours. They‘ve been handled like this for over 40 years by the way! FIVE VARIETIES OF VEGETABLES – PURE AND SIMPLE

NEW PRODUCTS IN 2016 18 19 BUTTERED VEGETABLES Like all the new products that we launched in 2016, our new buttered vegetables come in a cardboard box rather than a plastic bag. In the last two years, we have focused our atten- tion on environmentally friendly packaging and have made excellent progress in this area. BUTTERED VEGETABLES CREAMED VEGETABLES One of the greatest challenges that we faced when implement- ing our Purity Command was the omission of modified star- ches. Our solution was to return to high-quality fats like butter and cream and to rediscover a traditional cooking technique – the roux. The result is beautifully creamy sauces for our new creamed vegetables! FOUR VARIETIES OF CREAMED VEGETABLES SPINACH Like our peas, speed is of the essence when it comes to our spinach: its valuable nutrients start to diminish as soon as it is harvested. We also manage to transport our spinach from the field to the freezer within two hours! THREE VARIETIES OF SPINACH CHICKEN WITH SAUCE All that is missing from our four new chicken dishes is your fa- vourite side dish. A little self-catering is also good for a change! FOUR VARIETIES OF CHICKEN

Herford, 1950s Little Dirk hates Fridays. That’s fish day. And the fish stinks and is usually about three weeks old. That’s how long the fishing boats have been at sea since the first day out catching fish. 1954: Dirk’s father, actually a textiles manufacturer, buys the fish trawler “Maria von Jever” in Bremer- haven. Dirk thinks this is a strange idea. But at least the fish at the coast is fresh and won’t stink as bad there, he thinks to himself. ! ! E e w ! T h a t s m e l l s a s b a d a s F r i d a y s a t h o m e ! 1960: The fishing business isn’t going so well. Dirk is supposed to look after his father’s fleet of trawlers. When arriving at the fishery port in Bremerhaven, he is shocked. A captain takes Dirk onto the high seas. There, for the first time in his life, Dirk tastes fish that was prepared just after being caught. It gives him an idea... Mmm... That’s how fish should taste! ... If the fish can be filleted and frozen right on board the trawler as soon as they have been caught, and only thawed just before cooking, then the fish tastes like it has just been caught fresh. Back in Bremer- haven, Dirk sells the boat for fresh fishing, invests in the freezer ships “Sagitta” and “Vest Recklinghausen” and founds the frozen food brand, FRoSTA! 1976: The first FRoSTA fish fingers roll off the production line. N E U a u s s a f t i g e m S e e l a c h s Erbsen Mid-80s: FRoSTA starts producing ready meals, such as paella and bami goreng. Late 70s: Vegetables join FRoSTA’s range of frozen food products. Dirk Ahlers Company Founder and Supervisory Board

20 21 HOW FRoSTA CAME INTO BEING BECAUSE OF A CHILDHOOD MEMORY, A FRESH FISH, AND A BOAT TRIP ... Freezing is the best way of preserving fresh food for months in a way that it tastes as if it were freshly har- vested. Or – like the fish in our comic – freshly caught. For us at FRoSTA, this goes without saying. So much so that we sometimes forget to mention it. But then we get calls like “What do you put in your peas to keep them so green?” or “What chemicals do you use to preserve your frozen ready meals?”. Mostly it's younger people who are sceptical and ask us these kinds of questions. In fact, you really don’t need anything other than cold tem- peratures to keep food fresh. We find this just as intrigu- ing as Dirk Ahlers, FRoSTA’s Founder, did back then. What’s crucial is that we don’t lose any time between har- vesting or catching and freezing. Particularly with spin- ach, peas, and herbs, once they have been harvested, it’s a race against the clock – because they start to lose their vitamins and nutrients straight away. Freezing at -18°C stops these valuable substances from decomposing. If you’re not getting your vegetables from your own garden and eating them immediately, but getting them from the Remaining vitamin C content in peas after 7 days, by storage temperature supermarket via wholesalers instead, then frozen veg- etables have the best vitamin and nutrient content. The same goes for frozen fish. Today, we also know: Freezing helps to combat the prob- lem of food waste! Because fresh produce is almost twice as likely to be thrown away as frozen food. 83 households were asked: “How often do you throw away fresh and frozen food?” 52 47 28 20 8 8 25% at room temperature Weekly Monthly Never 80% refrigerated at +4°C 95% frozen Deutsches Tiefkühlinstitut DTI Number of households that throw away frozen food Number of households that throw away fresh food Wayne Martindale, (2014) „Using consumer surveys to determine food sustainability“, British Food Journal, Vol. 116 Issue: 7 MORE ON OUR BASIL FROM THE RHINE VALLEY MORE ON OUR MSC-CERTIFIED ALASKA POLLOCK

1999: The FRoSTA meals still contain too many additives and too little flavour. “This has to change!” thinks Felix, chef and new at FRoSTA Potassium ferrocyanide E1410 E538 E579 FRoSTA 1999: Food Technologist Arne is in love with additives, meanwhile Frank and Torsten are gushing about how great real ingredients taste. No additives whatsoever – is that even possible? What about the additives we’ve already bought? Carragen in the cream, anti-caking agents in the salt, colourants in the butter – additives are every- where. The suppliers ask: Why does FRoSTA care about ingredients that don't have to be declared? !??? Anti-caking agents s e n t ! f o a m i n g a g - A n t i Huh??? * ? The huge Purity Command pro- ject: all 121 FRoSTA recipes are changed, over 50 additives are sought out and banished, all raw materials are inspected for hidden additives, over 50 products are discontinued, new machines are designed and traditional cooking methods are rediscovered: the FRoSTA team have their hands full! Why are there so many additives in our food? They make our produc- tion quicker, cheaper, and more efficient! ? ! ??? ? Mmm... That’s delicious! They all have to go! Salt mill? ? ! ? # x¾± 2 years and 25,000 working hours later: At the start of 2003, the new FRoSTA hits the market. Even Arne is excited. Freezing and the highest qual- ity ingredients make additives and flavourings obsolete!

22 23 Felix Ahlers Executive Board OUR PURITY COMMAND – OR WHY WE THINK LESS IS MORE Arne Döscher Research & Development Torsten Schott Product Development Frank Gaida Product Development Frank Hoogestraat Production If you look around in a supermarket today, you’ll find packaging every- where that tells you the things it DOES NOT contain. For example, “no artificial flavourings”, and “no flavour-enhancing additives”. Does this mean that our “FRoSTA Purity Command” is not really anything special any more? 2000 approved flavourings, there are a lot of substances that are considered to be real ingredients according to food laws, but work like additives and are used as such. For example, “milk protein” can be used to enhance the taste, and sometimes behind “plant extract” hides – com- pletely legally – a preservative. Additives don’t make food tastier, they make it cheaper. A lot of the time, they’re not needed, e.g. when you’re using quality ingredients and cooking them the good old-fash- ioned way. However, it’s also true that even a food chemist doesn’t stand a chance of knowing whether Our food laws also state that many of the ingredients in the pre-products don’t have to be declared on the end product. That’s why we’re asking to close such loopholes in the law, so that all imitation additives must be approved and declared as additives, and so that everything that food con- FRoSTA pre-2003: 6 E-numbers 4 flavourings 89 other additives FRoSTA today: 0 E-numbers 0 flavourings 0 other additives or not a product really contains any additives just by looking at the list of ingredients. Alongside the 316 offi- cially approved E-numbers and over tains is written on the label. And the fact that this doesn’t go without saying is why our Purity Command of 2003 is still something special to this day. OUR GOALS FOR THE FUTURE FRANK GAIDA EXPLAINS WHY WE HAVE BEEN COOKING WITH REAL CREAM AGAIN SINCE 2003 HERE, ARNE TELLS US HOW WE MANAGED TO GET RID OF MODIFIED STARCH

What!? Freezing wastes energy??? I need to know for sure! Freezing is bad! o z o n e e s t r o y s t h e f o o d d r o z F e n 2008 0.0001% Volatile substances C k P i l G E M I S C O 2e ¾ K y o t o g a s e s ! 64,800 CO2 o Ooer!!! k m / p HFC Scope 1 P / t F c e j o O 2 t p e r P t F t The initial result: FRoSTA vegetables are always cultivated outdoors, chopped right after harvest- ing, and frozen. On the other hand, fresh vegeta- bles often come from a greenhouse. The carbon footprint of fresh, greenhouse-grown tomatoes is eight times higher than that of frozen tomatoes! Base year PCF Many people think that we ship our ingredients around the world by plane. That’s not true. Freez- ing means that we can take our time transporting our ingredients, usually by ship. And: A container can fit three to four times more frozen food than fresh produce! FRoSTA takes part in a pilot project to calculate the carbon footprint of frozen products. Urban has to compile all of the data and starts doing the math. 2010: We calculate the carbon footprint of all FRoSTA products. The result: Our freezing method and the Purity Command actually help to reduce CO2 emissions! This is also thanks to the huge FRoSTA kitchen, where we cook in a way that is much more energy efficient than at home. Urban Buschmann Process Engineering and Sustainability

24 25 WE DID THE MATH: FROZEN FOOD IS ECO-FRIENDLY! We have been dealing intensively with the topic of climate change and CO2 emissions. We calculate all of the emissions given off throughout the entire product life cycle. We also document all of the pollutants given off at our facilities. By constructing a comprehensive Environmental Manage- ment system, we are now able to calculate the product carbon footprint (PCF) of a product at the touch of a but- ton, as early as during the development phase. That's how we know that meals that contain meat or dairy products -3.1% Electricity consumption (in kWh/t FP; 2016/2013) Since 2011, we have also been calculating our corporate climate balance. In this way, we can learn which areas can be improved even further, and can set specific goals for the future. -4.9% -6.9% COMPARED TO 2007, THE TOTAL CO2e EMISSIONS HAVE FALLEN BY 14.5%. Total CO2 Fuel emissions (in t CO2e/t FP; 2016/2013) (in t CO2e/t FP; 2016/2013) have a much higher PCF than vegan or vegetarian dishes. In recent years, the share of meat-free FRoSTA products has shown steady growth, and we want to increase it to 40% by 2020. -8.8% -24% Employee business travel (in pkm/t FP; 2016/2013) Employee business travel (in pkm/t FP; 2016/2007) We were able to achieve significant reductions in con- sumption and CO2e emissions at all of our facilities over the last few years. There were several things that helped with this, for example refrigeration systems with heat recovery, biogas plants where plant waste is immedi- ately recycled, and photovoltaic systems at our freez- ing facilities. Everybody who drives a company car also supports our energy-saving programme. There have been strict CO2 limits in place since 2012, which get lower every year. Everybody must comply with them – including the executive board. And: If an employee chooses a smaller vehicle model than his contract enti- tles him to, he receives a bonus! That’s why in 2014, 2015, and 2016, we were awarded with the Green Card by Deutsche Umwelthilfe for having an environmentally- friendly fleet strategy. MORE ON OUR CO2 PILOT PROJECT OUR GOALS FOR THE FUTURE MORE ON OUR CO2 CALCULATIONS

i n g r e d i e n t s ? 3 5 c o u n t r i e s 2 0 0 ! Consumer groups also promote spec- ification of the countries of origin, but there is resistance from the industry and politicians. Can’t happen! Takes jobs! Just costs more money! The consumers don’t care! Hinnerk didn’t back down, and asked his colleagues Gerhard, Ralf, and Markus to find a solution. Hinnerk joins FRoSTA. He thinks the Purity Command is great and has a vision: The coun- try of origin of all 200+ ingredients from 35 countries should be on the packaging too! How could we do that? What if the tomatoes come from France sometimes instead of Italy? 2015 0 h e t 1 c e Then we’ll have to print new packaging. Or we must find another solution... Markus, think! Here you go! All of the countries of origin are now on the packaging. ! s s 0 % r G e n u O R I G I N A L STEAKHOUSE PFANN E 100% frei von zugesetzten Geschmacksverstärkern Aromen Excellent – how did you manage that? I have to tweet that right away! F l e xible Printing!!! In the end, the solution was simple: we are printing the countries of origin on the packaging during production, using the same tech- nologie than printing the expiry date, that is required by law.

26 27 OUR BEST-KEPT SECRET: WE DON'T HAVE ONE. The vast majority of consumers want to know where their food comes from. However, the law only requires the county of origin of some fresh foods to be declared, such as eggs, meat, fruit, and vegetables. Tomatoes from a tin or in a ready meal, on the other hand, can stay anonymous. We don’t think that this is enough transpar- ency for consumers. The FRoSTA Food Tracker has been available since 2013 and can give batch-specific information on where the ingredients used were sourced. We have taken this idea even further, and since 2015, we have been print- ing the countries of origin right on the packaging. Despite the fears of many politicians, associations, and commissions, no jobs have been lost, and our costs haven’t exploded. ingredients Nevertheless, our decision for full the roughly transparency about 200 different from 35 countries brought some crit- ical questions from consumers, such as: Is it sustainable to buy broccoli from Ecuador or garlic from China? We are just as concerned about these issues (Our answers). Declaring the information on source countries also led us to deal more thoroughly with our suppliers and conditions at their facilities. We think both are important. Our motto: For every manufacturer that knows where their ingredients come from, specifying their coun- tries of origin should not only be something they’re able to do, but also something they want to do! The Desire for Transparency: Consumers believe labelling countries of ori- gin on food products is ... Hinnerk Ehlers Executive Board Gerhard Schriever Quality Management Markus Bockhorn IT 4% … less important 1% … not important at all 22% … important Source: .vzbv, May 2014 73% … very important Ralf Finck Purchasing YOU CAN SEE HOW FLEXIBLE PRINTING OF COUNTRIES OF ORIGIN WORKS IN PRACTICE HERE

All FRoSTA ingredients must fulfil strict requirements for quality. One requirement is that they are cultivated in socially and environmentally conscious conditions. we’re already doing quite a lot, but let's look at it even more closely... Human trafficking ... Child labour... Social standards... K !!! NEWS !!! Blutshrimps Tagesschau Every supplier signs the FRoSTA Code of Conduct with requirements set by us related to working conditions and environmental impact. Yeah, but who can guarantee that they will comply with what they signed? t f c o u e d d n o o C C Particularly with suppliers in high-risk countries, we try to build long-term relationships. Kerstin, Sven, and some of our other colleagues make regular visits there. That gives us good and ongoing insight and promotes safety. Please, let us talk to your workers now. We purchase ingredients from over 30 countries. We also analyse where the risk of infringement of the social standards is particularly high. 2015: FRoSTA AG becomes a member of SEDEX. We also require that our suppliers in high-risk countries become members and demand certification according to an inter- nationally recognised social standard. N e d i s e i c t e m c o n s e q u i a d o l u p t a e p r e m o b e r u n t a s p e r f e r u m e u m q u e n o s c o r i b u s q u i s e n d i o r m o l o r a e n u m r e s t q u o e t e x p l i g n i u m v e l i b u s n i s v o l u p t a i s t o r e m r e c t a s q u o s t i b u s a e r e m n i e t q u o t e m p e d . Kerstin Janson Quality Assurance Sven Lehmann Purchasing

28 29 JUST LIKE OUR CUSTOMERS, WE LOOK VERY CLOSELY WHEN SHOPPING Our ingredients are the basis of the quality and sustain- ability of our products. The requirements of the Purity Command for the FRoSTA brand are used to formulate standards that extend much further than the current legal requirements. Because our suppliers aren’t allowed to use any additives or flavourings whatsoever. There- fore, it doesn’t matter if the additive legally needs to be declared or not. FRoSTA PRODUCTS CONTAIN EXCLUSIVELY MSC- OR ASC-CERTIFIED FISH AND SEAFOOD. Additionally, since 2011 we have been working exclu- sively with MSC-certified fish and seafood, and ASC-certified prawns as well, since 2016. We specify that our our Alaska Pollock must be caught at sea, and immediately filleted and frozen. We also deal with the finer details: The feed for our free-range chickens may not contain any colourants either, and the conditions we require for raising our chickens are specified in detail; from the livestock density, to feed, right up to age at slaughter. We work with our contracted farmers to decide on the seeds to use, and what plant protection products to use, and to ensure traceability as far back as the field. For some years now, we have increased our involvement in the working conditions for our suppliers’ employees. This is of particular importance in the regions classified as ‘high-risk’ by the BSCI. These include China, Thailand, Vietnam, Brazil, Ecuador, Peru, and Guatemala. Regular audits, visits, and FRoSTA employees on site also help to ensure that the standards for quality and social responsi- bility are applied. By 2020, we will have developed a FRoSTA Animal Wel- fare standard to reduce livestock density, improve live- stock health, and minimise medication of livestock. By the end of 2017, there will be no palm oil used in any of our FRoSTA products or FRoSTA ingredients. By 2020, we want to ensure that 100% of our suppliers in high-risk countries are members of SEDEX and certified according to an internationally recognised standard. KERSTIN SHOWS US WHERE OUR MUSSELS REPORT BY THE FRoSTA FOOD SCOUTS, WHO COME FROM VISITED ECUADOR FOR THE BROCCOLI HARVEST ARNE ON WHAT'S SPECIAL ABOUT OUR BUTTER OUR GOALS FOR THE FUTURE MORE ON OUR BROCCOLI FROM ECUADOR

Aluminium? Phtalate? R i i i i i n g ! BISPHENOL-A??? Are there soften- ing agents in your packaging? Can we improve anything about our packaging? We should ask our experts and NGOs! R i i i n g ! R i i i n g ! ! CO2 r e c y c l e 10% – aluminium, sol- vent-based inks, com- posite materials, … + water-based inks, recyclable, ... Our goal: The most environmentally-friendly packaging in the food industry! The goal is clear, but we can’t achieve it alone. A work-intensive period begins for our partner, “Der Grüne Punkt”, the FRoSTA foil suppliers, and ourselves. 2015 – 2016: Urban and Torsten scale mountains of rubbish, visit highly- modern recycling plants and gather expertise on the production of foil packaging. From colourful to white – less colour is better! 2016: The new packaging is ready! With no composite PE material it’s now in a single material and fully recyclable. A little revolution to the beneﬁt of the environ- ment. And it looks great too ... wow! r e c h t e ! s G e n u s O R I G I N A L Paella 100% frei von zugesetzten Geschmacksverstärkern Aromen before AHA! Ohhh!! today PAELLA ca. 11min msc asc Torsten Matthias Urban Buschmann Marketing and Sustainability Process Engineering and Sustainability

30 31 NEW: WATER-BASED INKS! LESS PACKAGING! WOW! 10 years after introducing our Purity Command, it was time to take a critical look at the packaging for our FRoSTA products. On the way to sustainable packaging, we ﬁrst checked where we could save on packaging materials. As such, we were able to reduce the materials used for outer packaging about a quarter, and therefore signiﬁcantly reduced our CO2 emissions. The materials themselves were also inspected. Because our goal was, and still is, to keep the impact of our packaging on humanity and OUR LONG-TERM GOAL IS TO CREATE PACKAGING THAT HAS NO NEGATIVE IMPACT ON HUMANITY OR THE ENVIRONMENT WHATSOEVER. WE STOPPED USING ALUMINIUM AND WILL INCREASE THE SHARE OF PACKAGING MADE OF PAPER AND CARDBOARD TO 50%. should be avoided. Our FRoSTA “Schlemmerﬁlet” has been packaged in a specially coated cardboard tray. This also allows you to cook the ﬁsh ﬁllet in 10 minutes in the microwave. That also reduces CO2 emissions compared to using the oven. In order to improve the recycling rate of our packaging even further, we developed bags made from polypro- pylene (PP). The new material for our bags and their new, light design means, that all FRoSTA packaging can now be recycled into mono-materials. The experts explained to us that you can only really make plant pots or park benches out of composite substances. From recycled mono-material packaging it is possible to also make smaller, more valuable plastic pieces. The recycled material can now be used in a lot more different ways. As we changed over to water-based printing inks, we were also able to reduce CO2 emis- sions from printing the packaging by up to 47%. the environment as small as possible. It quickly became clear to us that the use of aluminium – actually the standard packaging for most ready-to-cook ﬁsh ﬁllets – We worked very closely with our packaging suppliers and the “Grüne Punkt” on this project. Without the inten- sive exchange of ideas with them, we would have never been able to complete this project. MORE ON OUR PACKAGING PROJECT OUR GOALS FOR THE FUTURE

Since 2015, we have donated every year 2% of FRoSTA AG’s total dividends to charitable projects. Half of the charity budget goes to our 4 production facilities. All of our employees are invited to suggest regional projects at each of our locations that we should support. The other half of the budget is used to support social projects in the countries where we source our ingredients. 2% of dividends A p p l a u s e ! Applause! Bremerhaven Bydgoszcz Nursery, teaching, ... Elbtal Rheintal What could we donate to? Some ingredients come from all over the world. We are currently participating in charitable projects in Peru and Ecuador. In the evening, things become international when Bremerhaven locals and refugees from Syria, Eritrea, and Afghanistan cook and eat together: Baba Ganoush, Hummus, Timtimo, Labaneh, … The FRoSTA Culinary School has been in the Bremerhaven Klimahaus since 2015. During the day, school children learn how to make delicious meals from simple, locally-sourced ingredients. January 2017: Launch of our education project with Plan International in Ecuador. 200 young people in the province of Cotopaxi – that’s where our broccoli is from – will be given the skills and motivation to develop their own business ideas. negocio e l independencia beneficio Start-up?

32 33 WE ARE INVOLVED IN REGIONAL AND INTERNATIONAL PROJECTS. Before, there were no set rules on how much money we should donate and who we should donate to. We changed that in 2015 with a clear commitment: Every year, we will donate 2% of our dividends to social pro- jects, both in the regions where our production facilities are located, and the countries where our ingredients are sourced. We feel a sense of responsibility for both. Our charity budget for 2016: 185,000 euros! Our employees decide together what projects we should support. At the Bremerhaven Klimahaus, we opened the FRoSTA Culinary School in 2015. With the FRoSTA Culinary School, we wanted to get involved with a social project at our largest location in Bremerhaven, and also because Bremerhaven is the city in Germany with the highest rate of child poverty. Children can learn to cook here – completely without ready-made products. Not even instant vegetable stock is used in the recipes. We don’t see it as a contradiction that we manufacture frozen Education project with Plan International in Ecuador 200 young people in the region of Cotopaxi, Ecuador Duration: 2 years Budget: 150.000 euros 18 cooking events in 2016 with a total of over 500 adults and children from Eritrea, Syria, Sudan, Somalia, Iraq and Afghanistan Over 200 cooking courses for school classes in the Bremerhaven region since the Culinary School was founded food, including ready meals – quite the opposite: Chil- dren should learn things like how to make fresh tomato sauce and why soup tastes so much better without stock cubes. Because only people who can cook will appreci- ate good food their whole lives. Last year, the idea came up to also use the Culinary School in Bremerhaven for cooking events with refugees to help with their integration. There were 18 events in 2016 where over 500 adults and children from Eritrea, Syria, Sudan, Somalia, Iraq, Afghanistan, and Germany cooked and ate together, who probably would never have otherwise met. We also wanted to make a contribution to improving living conditions for people in the countries where we source our ingredients. Our most recent project was launched in January 2017 in Ecuador – the country where we source our broccoli. Together with Plan International, we brought a two-year education programme to life for 200 young people. MORE ON THE FROSTA CULINARY SCHOOL OUR GOALS FOR THE FUTURE MORE ON THE PROJECT WITH PLAN INTERNATIONAL

INTRODUCING OUR “COMIC HEROES” INTRODUCING OUR “COMIC HEROES” OUR “COMIC HEROES” REPRESENT THE ENTIRE FRoSTA TEAM, WHO ALL FIGHT FOR MORE SUSTAINABILITY IN ALL DIFFERENT AREAS AND ACROSS ALL LEVELS! Dirk Ahlers, Company Founder and Supervisory Board I still love fish to this day. Either fresh or frozen at sea! Torsten Schott, Product Development On your pots, get set, go! The big cook-off can begin. To the future with fresh ingredients like cream, butter, herbs, spices, and our own curry recipe. Felix Ahlers, Executive Board I still love cooking as much as I did during my culinary studies in France: traditional and without cooking aids like stock cubes and thermo mixers. Frank Gaida, Product Development As a trained chef, I know that really tasty meals only come from good ingredients and skill! Arne Döscher, Research & Development As a young food technologist, I loved the magical world of additives. Today, I know that food production is also possible with natural ingredients and even tastes better! Frank Hoogestraat, Production For me as a Facility Manager, it’s always a big challenge to make my dear colleagues’ crazy ideas a reality.

INTRODUCING OUR “COMIC HEROES” 34 35 Urban Buschmann, Process Engineering and Sustainability Making our sustainability progress measurable is very exciting to me. Thanks to the environmentally-friendly packaging, the FRoSTA products are now even more sustainable. Ralf Finck, Purchasing The “Flexible Printing” project is another milestone on the way to increased sustainability and transpar- ency. I’m proud that we, the project team, managed to implement it so successfully. Hinnerk Ehlers, Executive Board I was asked recently “why do you do all of this?”. “Because it’s what we think is right!”, was my response. Kerstin Janson, Quality Assurance With the help of my team, I ensure compliance with the quality requirements we have set. On our many visits to the countries of origin of our raw materials, we also take a very close look to the working conditions. Gerhard Schriever, Quality Management As Quality Manager, I take care of optimising the inter- action and communication between departments. This was of particular importance for the project on source country labelling. Sven Lehmann, Purchasing The requirements of our suppliers in terms of pro- duction and logistics processes and compliance with social standards are constantly gaining importance. Markus Bockhorn, IT “Flexible Printing” was an interesting challenge! I still find it amazing to see exactly where the ingredients came from, right on the packaging. I’m looking forward to the next projects. Torsten Matthias, Marketing and Sustainability I often eat our meals myself and I don’t want any additives in my food.

ABOUT THIS REPORT AND ABBREVIATIONS ABOUT THIS REPORT This is FRoSTA AG’s first Sustainability Report. It includes reports on all production and sales loca- tions belonging to FRoSTA AG (see map on p. 5). In doing so, we used the newest edition (4.0) of the guidelines from the Global Reporting Initiative (GRI) as the main point of reference. The report therefore con- tains standards defined by the GRI guidelines. We plan to publish the next edition in two years. ABBREVIATIONS a Annum IT Information Technology AG Aktiengesellschaft [Joint-stock company] kg Kilogram D German Ca. circa km Kilometre kWh Kilowatt-hour CCF Corporate Carbon Footprint PC Personal computer CO2 Carbon dioxide FP Finished products IP Internet Protocol PCF Product Carbon Footprint PP Polypropylene PE Polyethylene IPCC Intergovernmental Panel on Climate Change pkm Passenger kilometres ISO International Organization for Standardization t Tonnes

GLOSSARY 36 37 GLOSSARY ASC (Aquaculture Stewardship Council) This inde- pendent, non-profit organisation offers a certification system for sustainably farmed fish and seafood. ISO 50001 An internationally recognised standard for the certification of Energy Management systems within companies, with the goal of constantly improving their energy efficiency. Mono-material Packaging made from mono-material is easier to classify in recycling plants. As it includes no materials that cannot be recycled, it reduces the waste separation workload. This allows for a higher and more efficient rate of re-use. The material can be introduced back into the recycling life-cycle straight away. MSC (Marine Stewardship Council) A non-profit organ- isation that has a certification system for sustainably sourced fish and seafood. SA8000 An internationally recognised standard for the certification of workplaces and employees’ working con- ditions. The certification is carried out by Social Account- ability International (SAI). SEDEX (Supplier Ethical Data Exchange) A global non- profit organisation that provides an internationally recognised online platform.. Companies can use this database to post transparent information on ethical and social sustainability in their supply chains and communicate with other companies about accepted inspection standards. SMETA (Sedex Members Ethical Trade Audit) SEDEX’s auditing method that aims to help companies guarantee transparency and responsible sourcing throughout the supply chain. The standardised method is intended to allow for better comparability. BSCI (Business Social Compliance Initiative) A leading supply chain management system that supports compa- nies to drive social compliance and improvements within the factories and farms in their global supply chains. CO2e CO2-equivalent that allows for comprehensive and comparable calculation of greenhouse gas emissions. CO2e not only covers carbon dioxide, but also other gases that are bad for the environment, such as methane. DMA (Disclosure on Management Approach) This is part of the GRI-G4 regulations, which specify how companies should deal with their economic, ecological, and societal effects in all aspects. FSC (Forest Stewardship Council) This global, non-profit organisation sets standards for what is a responsibly managed forest, both environmentally and socially. GHG Protocol (Greenhouse Gas Protocol) Internation- ally recognised standards and guidance regarding accounting and reporting of direct and indirect corporate greenhouse gas emissions. IPCC 2007 The fourth Assessment Report of the Inter- governmental Panel on Climate Change. It contains information on climate change and its causes and con- sequences, provides a basis for a possible course of action, and suggests options for limiting climate change. The IPCC is a United Nations institution. ISO 9001 An internationally recognised standard for the certification of Quality Management systems. Compa- nies are certified by independent certification bodies for a fixed amount of time. ISO 14064 An internationally recognised standard that enables companies to calculate and verify their green- house gas emissions. This can be used as a basis for developing programmes to reduce greenhouse gas emissions and allows companies to improve their CO2 balance.

IMPRINT Published by: FRoSTA Aktiengesellschaft Am Lunedeich 116 27572 Bremerhaven Telephone: +49 471 9736-0 Telefax: +49 471 75163 info@frosta.de Email: Web: www.frosta-ag.com, www.frosta.de Concept, design and realisation: UMPR – Communications Agency www.umpr.de

Contents

About FRoSTA AG

Sustainability management

Our employees

What we have achieved

Our goals for the future

New products in 2016

How it all started

The FRoSTA Purity Command

Climate protection

Transparency and sourcing

Our suppliers

The FRoSTA packaging

Our social commitment

Introducing our "comic heroes"

About this report

Glossary

Imprint