Page 9 - Parmalat 2017 Consolidated Statement

Strategy

The Group’s strategy is aimed at creating value for all shareholders and stakeholders and is based on the following
fundamental milestones:

- Consolidating and growing the business in those areas where the Group is already present and
expanding geographically to emerging and strategic countries, with the aim of achieving a balanced
development between mature and emerging countries;
- Strengthening its positions as a leader or co-leader in the markets where it operates;
- Establishing a presence in all dairy categories (milk, cheese, yogurt, cream, butter, powdered milk and
desserts) and in the fruit juice category, with a complete product portfolio;
- Leveraging its portfolio of brands, both global and local, that occupy preeminent positions in the markets
where they compete;
- Pursuing continuous innovation to provide optimum responses to customer needs and new consumption
habits;
- Benefiting from the technological knowhow and the brand portfolio of the Lactalis Group;
- Guaranteeing the quality and safety of its products through constant controls at every phase of the
production process, from the selection of raw materials to the testing of finished products;
- Continuously improving operational and production processes with the aim of achieving industrial
excellence;
- Deploying a constant commitment to the development of the Group’s activities with a sustainability
approach at every phase of each product’s lifecycle, “from the field to the table.”

Business Model
Parmalat is a multinational entity that produces and markets its products with the objective of satisfying the well-
being of its consumers worldwide.

Parmalat addresses different markets and different cultures and, necessarily, different needs; this entails
continuous challenges to satisfy the needs of all consumers, acting both directly, i.e. through its own organization,
and indirectly, through the active engagements of the players in its value chain, beginning with the suppliers of
raw materials up to the suppliers that the Group uses in the logistics and distribution areas: all of these actors are
present in the different areas where the Group produces and markets its products.

To face these challenges, the Group has engaged for several years in activities designed to develop a sustainable
business as it relates to the environment and the communities within which it conducts its business activities.

The objective is not merely to reduce the potential impact on the territories were the Group operates, but also to
provide meaningful contributions in economic and social terms, with the knowledge that creating value in an
increasingly competitive context is the true challenge of the future. In this regard, one of the key factors of
Parmalat’s success at the global level is its ability to innovate and develop, produce and market product that are in
tune with new market needs and capable of continuing the development of a trust-based relationship with its
consumers.

With this in mind, the Group is constantly pursuing investments aimed both at innovating and increasing and
optimizing its production capacity, so as to meet demand from its customers, while at the same time guaranteeing
the quality of the raw materials used for the product being marketed. Ongoing investments are also carried out to
improve energy efficiency, environmental sustainability and the safety of work environments.

Consolidated Non-financial Statement at December 31, 2017 Pursuant to Legislative Decree No. 254/2016 9