Our Principles in Action: Responsibility and Sustainability at Mars

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IntroductionMars

Tom Albold, Cyrille Balmes, Thomas Bittinger, Laurent Devillers, Michael Kunze, Andreas Windler (from left to right)

Dear Reader,

Our society is today already facing enormous challenges. These include maintaining an environ-ment that will sustain a decent life for future generations, providing an adequate and healthy food supply to feed a growing world population and expanding prosperity and economic growth to developing countries and emerging markets. All will require ambitious solutions. And to find them, the food industry is also being called upon to act. In other words, we must do our part in finding answers to these critical questions.

Five Principles for a Sustainable Management

Mars as a company has been guided for generations by the objective: ”The manufacture and distribution of food products in such manner as to promote a mutuality of actions and benefits to all stakeholders.” This what Forrest E. Mars, Sr. formulated in 1947 continues to be the purpose for our responsibility as a business in adding value to the people and planet through our performance. The foundation is based on the Five Principles of Mars: Quality, Responsibility, Mutuality, Efficiency and Freedom. They guide the way we have been doing business for genera-tions. Remaining a family business since its founding has given the company a great advantage by us being able to adopt a cross-generational perspective when making decisions and willing to commit to a long-term engagement.

Global Targets and Progress

In this brochure we would like to give you an overview about Mars as a company, our approach to business and our beliefs about sustainability. In addition, we want to explain which goals and targets we have set for the future and the progress al-ready made in important areas. For us, the four areas of most significance consist of our supply chain, our operations, the topic of health and nutrition along with our role as an employer.

In our supply chain, for example, we have the ambitious goal of sourcing all our important raw materials - to include cocoa, tea, coffee, rice and fish - from sustainable farming methods and under fair working conditions for everyone involved. Especially in terms of cocoa we are pleased to report considerable progress.

Introduction 2 – 3

Mars in a Moment 4 – 5

Our Approach to Business 6 – 7 & Sustainability

Our Supply Chain 8 – 10

Our Operations 11 – 13

Health & Nutrition 14 – 16

Working at Mars 17 – 19

Impressum 20

Contents

Since 2012, Mars has not only been the largest user of certified cocoa in the world, but has also established one of the most far-reaching programs to support cocoa farmers in implementing sustainable cultivation of cocoa beans in the countries of origin.

Also at our production sites we strive to reach formidable targets. Under the motto, ”Sustainable in a Generation”, we want to manufacture products on a global scale with zero im-pact on the environment and climate by 2040. And in Germany in particular, we are already on course with a realistic plan to achieve this goal.

Another important topic is supporting our consumers attain a healthy balance between nutrition and an active lifestyle. Every year we reach millions of people with our brands. In 2007, as the first company in our industry, we decided to expand the

nutritional labeling on all our products. Moreover, we continue to develop our products and apply a clear marketing code that takes into consideration our responsibility towards children around the world.

Not to forget, Mars as an employer wants to attract the world’s top talent to our business, and give them an exciting opportunity to build enriching careers that will encompass the diversity our business offers to those who become our associates.

Selected Case Studies of Engagement

Also on these pages you will gain deeper insights into the already mentioned topics, not only at the global level, but also what we are doing here in Germany. Through selected case studies from our German operations, you will learn how our commitment is having an impact both locally and abroad.

Naturally, we can only give you an overview on these pages, but invite you to seek further details regarding our efforts and ap-proaches on www.mars.de or globally on www.mars.com/PiA.

We wanted to provide you with exciting and informative read-ing, while also looking forward to your feedback and ideas!

"The challenges our business shares with society require long-term efforts to deliver change on a large scale."[Paul S. Michaels, President, Mars Incorporated]

Thomas Bittinger, General ManagerMars Chocolate Germany

Cyrille Balmes, General ManagerMars Food Germany

Michael Kunze, General ManagerWrigley Germany

Andreas Windler, General ManagerMars Drinks Germany

Laurent Devillers, General ManagerRoyal Canin Germany

Tom Albold, General ManagerMars Petcare Germany

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Mars, Incorporated - much more than chocolate …In 1911, Frank C. Mars began making candies in his Tacoma, Washington kitchen, and there es-tablished our first roots in the confectionery business. In the 1920‘s, his son, Forrest E. Mars, Sr., joined his father in business, and together they launched the now world-famous MILKY WAY® bar. In 1932, Forrest, Sr. moved to the United Kingdom where he founded his own company with a dream of building a business model based on his philosophy of a ”mutuality of benefits” for all stakeholders – this objective serves as the foundation of Mars, Inc. today.

Mars with its six business segments of Petcare, Chocolate, Food, Drinks, Symbioscience and Wrigley, together with nearly 400 production sites in 74 countries, the company has become one of the leading producers of brands in the world today. Headquartered in McLean, Virginia, the over 72,000 associates working in pet food, chewing gum, confectionery, food, drinks and plant care generate about 33 billion dollars in annual sales. Every day they are guided by the Five Principles in their work, and through their performance they create added value for both the people and the environment.

Over 50 years in Germany

Mars has been active in Germany since opening its first sales office and production site in Verden in 1959. This site continued expanding over the years, and now is European Headquarters for the pet care segment. In 2005, the Pet Center for research-ing the health and nutrition of pets was opened. Another site

for producing pet food was opened in Minden in 1981. The German headquarters of Royal Canin, also a Mars brand, is located in Köln.

The famous chocolate bars from Mars Chocolate have also been enjoyed by millions in Germany for over 50 years. The first sales office opened in 1961 in Hamburg, and in 1979 production began in Viersen, where Mars Chocolate is producing such popular brands as TWIX® and BALISTO®, besides a production line for the famous CELEBRATIONS® confection packs.

The other business segments at Mars are also well established in Germany. Both Mars Drinks and Mars Food have their sales offices in Verden, and in 1990 the production of the SERAMIS® line of plant care products began in Mogendorf. Also Wrigley, located in Unterhaching, the European Headquarters for that segment, has been part of Mars Deutschland since 2008 with such brands as WRIGLEY’S SPEARMINT® and WRIGLEY’S EXTRA®. Altogether, about 2200 associates work for Mars in Germany, and in 2012 were responsible for about two billion euro in sales.

Mars in a Moment

Mars

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The global business and brand universe of Mars

Find more online:

Story of Mars http://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/story-of-mars.aspx

Business Segments http://www.mars.com/global/about-mars/mars-pia/business-summaries.aspx

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Five Principles for a Better CompanyThe Mars Five Principles of Quality, Responsibility, Mutuality, Efficiency and Freedom are the foundation of our culture and approach to business. They unite us across cultures and gen-erations. At the same time, they reflect the commitment of Mars as a family-run company that has the freedom to make long-term investments under consideration of economic, environmental and societal challenges, and then addressing these modern issues pro-actively.

Quality is the uncompromising standard for our actions. Pro-viding the highest quality is the top priority in all the work we do. This is guaranteed by a comprehensive and end-to-end quality management of our products.

Responsibility for their own actions and an ethically sound sense of responsibility is what we expect from all of our asso-ciates. In return, we give them the necessary freedom of choice to take on responsibility.

Mutuality is the basis for how we do business. Our goal is to achieve a mutual benefit for all stakeholders and not to pursue activities that come at the expense of our business partners.

Efficiency for us means to use resources to the full, waste nothing and focus on our strengths.

Freedom is what we need to shape our future; this requires running our business successfully so we can sustain our free-dom.

Sustainability for us means actively taking responsibility to solve the social and ecological challenges affecting us, and thus create lasting mutual benefits for our business and all our stakeholders. We want to achieve this by amplifying our posi-tive social impacts, minimizing our environmental footprint and helping to create economic prosperity.

Each of our business segments has put strategies and resourc-es in place to manage their specific impacts on people and the planet, and contribute to areas such as health and wellbeing.

Our Approach to Business and Sustain ability

Mars

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Scientifically-based strategy

We use scientific knowledge to analyze the effects of our ac-tions, and in response, develop meaningful strategies. One of the key approaches we use is the concept of Planetary Bound-aries, which highlights the impact of our business operations in nine environmental dimensions. According to this model, the biggest impact our business has on the environment comes from carbon emissions, water consumption and land use, and these will be analyzed in detail and addressed without fail.

We also use transparent criteria and scientific sources for our projects relevant to society, aimed at improving the quality of life and helping the people affected by our value chain. This is done in order for them to get a fair chance at prosperity. Ex-amples include the Oxfam model of the planetary and social boundaries, data from the Agricultural Sustainability Institute at University of California in Davis and the social investment bank, Big Society Capital, as well as insights from conversations with internal and external stakeholders.

Alongside this work, we remain committed to partnering with our stakeholders and harnessing our collective skills to ad-dress key public policy issues. We respect human rights throughout our value chain, and recognize the principles of the United Nations Declaration of Human Rights and the In-ternational Labor Organization‘s Declaration on Fundamental Principles and Rights at Work. In addition, Mars has aimed for years to end child labor and human trafficking, both on its own and through cooperative efforts with governments and non-governmental organizations, with a clear policy on child labor in the cocoa sector.

Close collaboration with science

Mars believes that investments in scientific research and building cross-sector collaborations are necessary to find new solutions that successfully address the major challenges fac-ing society - from climate change to food safety. That is why we are combining our internal expertise with the capabilities of external scientists and researchers.

One highly regarded example of our scientific commitment is mapping the cocoa genome together with our partners, and the results of which were subsequently made available to the public.

A project from our Food segment researching sustainable rice varieties and growing techniques is another example that has

the potential to deliver a fourfold gain. Alternating between ir-rigation and dry phases during growing seasons, for example, saves water without decreasing yields. Selecting optimal rice varieties, in addition to using less water and mineral fertilizer, reduces carbon emissions while also saving costs. And finally, the nutritional quality improves with a higher share of resist-ant starch. Based on these insights, Mars has been able to clearly improve the dietary fiber content of its brown rice.

As a key milestone in our research work, in 2013 we estab-lished the Mars Advanced Research Institute (MARI), conducting fundamental research and addressing major challenges in the areas of nutrition, agriculture and health. The goal is to encour-age cross-sector collaboration between business, politics, sci-ence and non-governmental organizations that support a mutual approach for sustainable innovations in the areas of nutrition, agriculture and health.

Dialogue and cooperation with our stakeholders

Open dialogue and the strategic collaboration with our stake-holders help us to develop effective business strategies benefit-ing both business and society. We work with several different groups, including suppliers, retail customers, consumers, politics and non-governmental organizations, as well as educational in-stitutions and scientists. In 2012, we also engaged for the first time in discussions with our external stakeholders about devel-oping a sustainability vision.

Find more online:

Our Approach to Business http://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspx

Five Principles http://www.mars.com/global/about-mars/the-five-principles-of-mars.aspx

Overview of Targets and Progress http://www.mars.com/global/about-mars/mars-pia/targets-and-progress.aspx

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Sourcing raw materials fairly and responsiblyProviding affordable and nutritious food for a growing global population, while in turn bringing prosperity to farmers and others along the entire supply chain, is one of the great challenges of our time. Only by meeting this challenge, we will be able to provide enough food for future generations. Mars is therefore diligently working to source more and more of its raw materials from sustain-able cultivation methods, while at the same time helping to raise the incomes of farmers, improve their livelihoods and enable mutual benefits for our suppliers and in the local communities where we and our stakeholders live and do business.

Ambitious Targets

Latest in 2020, we want to be in a position where we are sourcing all of our important raw materials from sustainable operations. In some areas, we expect to reach these targets even earlier. Already at the end of 2013, our supply of coffee beans will only be coming from certified sources. For black tea and palm oil, we are looking to be on target starting in 2015. The cocoa supply for our chocolate bars as well as fish used in pet food is set to be supplied completely from certified sources starting in 2020. To reach these targets we are working closely together with such organizations as the Rainforest Alliance, UTZ Certified, Fairtrade International and the RSPO (Roundtable on Sustainable Palm Oil).

Farmers First

We firmly believe that measures which improve the livelihoods of farmers are the essence for ensuring a sustainable supply of raw materials for our business. This is why we strongly sup-port training farmers in methods that enable them to improve their yields in a sustainable manner. Here is where we are also actively engaged in ground-breaking research. In 2010 together

with partners, Mars was able to map the genetic code for cocoa beans. This key information has been made available in a com-prehensive database that is freely shared with all interested parties. The results of this research have been helping cocoa farmers across the globe to improve their seedlings and future harvests.

Progress and Success

Through these efforts, we have been able to achieve significant results in our supply chain:

At the end of 2012, nearly 90,000 tons of the cocoa beans used by Mars came from certified sources, which means more than 20 % of our entire demand. We are now sourcing the highest volume of certified cocoa of all chocolate producers, and are on course to meet our targets in 2020. Within the framework of our ”Sustainable Cocoa Initiative”, we launched the ”Vision for Change” (V4C) in the Côte d’ Ivoire, where by 2020 we will be supporting 150,000 smallholder

Our Supply Chain

Mars

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Certification Targets

farmers boost their incomes, and thereby significantly improv-ing their livelihoods. The target includes raising their yields to about 1.5 tons per hectare, in other words, a threefold gain by 2020. By continuing to open more Cocoa Development Centers, major progress is being made in delivering fertilizer throughout the country. Whereas through our growing support of Cocoa Village Centers, we are able to help train farmers on sustain-able agriculture methods in so-called ’Plant Schools’. Similar to the ”Vision for Change” concept, pilot programs have begun in the coffee-growing regions of Papua New Guinea, Indonesia, Tanzania and Peru. The goal there is also to raise the incomes and productivity of smallholder farmers. In addition, we are in a better position regarding the traceability and trans-parency of our supply chain for coffee.

In 2012, we sourced half of the palm oil we use from sustain-able cultivation, and at the end of 2013 (two years earlier than planned), we will be sourcing all palm oil from certified sources. Even though Mars uses only 0.2 percent of the world’s palm oil supply, we feel obligated to join in with other partners to find long-term solutions for this important material.

Wrigley has continuously been active in improving cultivation methods for peppermint crops in order to reduce its environ-mental impact, while increasing the harvests of farmers. Work-ing in partnership with the ”Mint Industry Research Council”, a broad-based group representing mint farmers, wholesalers and producers, Wrigley has helped expand this research con-siderably in recent years. Harvests of peppermint have im-proved up to 50 % through these efforts.

Many smallholder cocoa farmers are women. The continuing development of a fair supply chain also involves gender equality. In consultation with Oxfam, Mars has committed to conducting an impact assessment on gender equality within the program ”Vision for Change”. The findings will inform our approach and contribute to our longer-term aim of developing common in-dustry indicators for monitoring women’s economic and social wellbeing in the cocoa sector.

>20 % (201 2)

10 % (201 1)

56 %(201 2)

20 %(201 1)

33 %(201 2)

32 % (2011)

14,5 %(201 1)

>50 % ( 2012)

2015 TARGET

100 % Black tea from certified  sources

2020 TARGET

100 % Cocoa from certified sources –  as the first company worldwide

2020 TARGET

100 % Fish and fish derivates from  sustainable sources

2015 TARGET

100 % Palm Oil from certified  sources

2013 TARGET

100 % Coffee Beans from certified sources

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The Sustainable Cocoa Forum was established in sum-mer 2012 by stakeholders from the industry, trade, politics and societal organizations in Germany. With this forum, we are pursuing the common goal of improving the living and working conditions of cocoa farmers, while also promoting a more sustainable production. Specific programs are being put in place to support smallholder farmers in producing cocoa with methods that are more economical, ecological and socially acceptable.

Collaboration raises visibilityAlthough many forum members had previously launched their own programs for a more fair and sustainable cocoa production, a close collaboration offers considerable advan-tages. This initiative is able to funnel all existing individual activities into a holistic approach and thus increase their visibility and effectiveness. This is why Mars is also actively engaged as a founding member of the ’Sustainable Cocoa Forum’. ”This forum puts the smallholder operations at the very beginning of the production chain in the focus, which is exactly in line with our approach of ’Farmers First’”, ex-plains Thomas Bittinger, General Manager of Mars Chocolate Germany. ”Better trained farmers can generate higher yields - to the benefit of both sides: The producers and the economy at large.”

A look at the figures reveals why the Sustainable Cocoa Fo-rum has such significance, especially in this country: Germany is one of the primary countries of destination for cocoa. This is where more than 10 percent of the global harvest is pro-cessed and turned into chocolate, as well as many other products - from ice cream to cookies.

Case Study: German aid for cocoa farmers - the Sustainable Cocoa Forum

For any sustainability strategy in the food industry to be successful, it has to be acknowledged by consumers, and ends up with their preferential purchase of relevant products. Since 2011, the REWE Retail Group in Germany regularly discusses with representatives from the indus-try, non-governmental organizations and politicians, as well as shoppers, on how to get sustainable products out of the niche and into the mainstream as part of their ’Hello Earth’ Sustainability Weeks.

Mars has played a dynamic role in this exchange of views from the start by organizing workshops of their own related to topics such as cocoa and pet food. And at the exhibition running parallel to the forum, Mars informs visitors about its own sustainable products, such as the UTZ-certified chocolate bar BALISTO® or pet food labeled with the Ma-rine Stewardship Council (MSC) seal for sustainable fish. ”Sustainability from field to shelf is only feasible in a joint effort between producer countries, manufacturers, trade and consumers.” explained Thomas Bittinger, General Man-ager of Mars Chocolate Deutschland.

Active involvement of junior managers Meanwhile, the sustainability cooperation with the REWE Group has expanded beyond ’Hello Earth’. In spring of 2013, junior managers of both companies in mixed teams devel-oped ways of transferring cocoa sustainability directly to the consumer as part of the project ’Trainees for our Planet’. This successful collaboration is to be continued for future projects.

Case Study: ’Hello Earth!’ - making sustainable products appealing to shoppers

Find more online:

Supply Chain http://www.mars.com/global/about-mars/mars-pia/our-supply-chain.aspx

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Our approach to sustainable production and logisticsPursuing sustainability in our business for the mutual benefit of all stakeholders is closely linked to sustainable operations locally. We are aware of the factors relevant to the environment in the factories and offices where we do business, and it is there we have the most control and influ-ence. The result is our ambitious goal of continuously reducing waste, energy and water usage in our operations.

Our OperationsMars

Our aspiration: ”Sustainable in a Generation” - sustainable production by 2040.

Driven by our Five Principles and backed by robust scientific data, we have set the ambitious goal of making our operations sustainable by 2040. This began in 2007 with the establish-ment of the program ”Sustainable in a Generation” (SiG) at all of our business operations, where each site is obligated to reduce waste, energy and water usage every year by three percent. This is to be done regardless of changes in production volumes. To accomplish our goal by 2040, we will not only increase the use of renewable energy, but also eventually completely ban the use of fossil fuels and greenhouse gases from our operations. We have also set clear, long-term targets regarding water and waste. This underscores our commitment to do something pro-actively that improves the environment and helps make a better world for future generations.

Four Strategies in place

We used 2007 as the baseline year for the first complete data set documenting our energy usage and waste. From

this information we developed four strategies to support us in reaching both short and long-term goals:

Operational efficiency: Decreasing energy use, water use and waste through changes in the practices and behavior of our associates. Capital efficiency: Investing in more efficient equipment and processes to save capital in the long run. New technology: Developing and deploying innovations that change the way we do things. Renewable energy: Working with partners to generate and use cleaner types of power.

Another area beyond our production operations is in making lo-gistics as efficient as possible. Backed by the slogan ”Competition on the shelf, but not in logistics”, in 2007 we established the ”AGENDA 2017” in Germany. (Learn more in Case Study on page 13).

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Progress and Success

Since our 2007 baseline, usage of fossil-fuel energy has been reduced by 7.3 percent and greenhouse gas emissions by five percent. This was done even though production ton-nage rose by 2.2 percent in the same timeframe. Despite this success, progress toward our overall SiG goals has not been as strong as we would like. Energy use and emissions in two of our segments, Mars Petcare and Mars Chocolate, have in-creased slightly. The amount of packaging material we use has also increased by three percent since 2007, largely due to the inclusion of several more business units.

Our usage of water based on the 2007 figures has altogether been reduced by about 18 percent. Especially Mars Drinks and Wrigley continue to reduce water, whereas other segments are using more water due to increased production tonnages.

Waste to landfill has been reduced across the entire busi-ness by 55 percent since 2007.

Our Mars Chocolate factory in Viersen is on track to reach all of the SiG goals, spearheading the corporation in this aspect. Also our Mars Petcare site in Verden has been meeting the global targets set for reducing energy and water use. (Learn more in Case Study on page 13)

Three of the only 50 hybrid trucks in Europe from Mercedes Benz are being tested by Mars Germany in our daily logistic op-erations. In particular in city traffic, their fuel consumption is 10 to 15 percent lower, which in turn also means reduced CO2 emissions.

Responsible waste management does not end with the pro-duction phase, but continues to be a challenge facing society. For many years now, Wrigley has been engaged together with various partners in educating our children and youth about proper waste disposal - including chewing gum. In Germany, Wrigley participates in a national school project started in early 2013, ”Don’t give litter a chance”, in partnership with the BDSI (Association of the German Confectionery Industry). This project aims to raise the awareness of teenagers about the importance of proper waste disposal and is supported by partners such as Gerhard de Haan, Head of the Institute for Educational Studies of the Future at the Free University of Berlin and President of the UN Decade of Education for Sustainable Development, and with support from the Working Group on Nature and Environmental Education (ANU) as well as the In-dependent Institute for Environmental Issues (UfU).

Sustainability at Mars involves teamwork requiring the active support of our associates. They are the ones who know most about our operations and processes, and are in the best posi-tion to identify potential improvements. This is why we have regular ”SiG Workshops” in place to increase associate en-thusiasm for generating ideas that will contribute to con-tinuously optimizing how we work with our resources.

Hitting our SiG targets remains a major commitment in the coming years. We will focus on rolling out best practice pro-cesses, which at individual Mars sites, have already been successfully implemented.

Our global targets

25 % ReductionReduce water use by 2015 from a 2007 baseline.

PROGRESS:Water use has reduced by 18 % between 2007 and 2012.

Zero WasteAchieve zero waste to landfill by 2015.

PROGRESS:Waste to landfill has reduced by 55 % between 2007 and 2012.29 of our 126 sites* achieved zero waste to landfill in 2012.

25 % ReductionReduce direct fossil-fuel energy use and green- house gas emissions by 25 % by 2015 and by 100 % by 2040 from a 2007 baseline.

PROGRESS:Fossil-fuel based energy use reduced by 7,3 % and greenhouse gas emissions by 5 % between 2007 and 2012.

10 % IncreaseIncrease the level of recycled content in our packaging by 10 % by 2015, where possible given regulatory and food safety requirements.

PROGRESS:Increased from an average of 21 % in 2007 to 37,2 % in 2012.

10 % ReductionReduce packaging weights by 10 % by 2015, from a 2007 baseline, regardless of business growth.

PROGRESS:Increased by 3 % from 2007 to 2012.

100 % RecyclableDesign our packaging to be 100 % recyclable or recoverable by 2015, where infrastructure exists.

PROGRESS:74,8 % of packaging was recyclable or recoverable at the end of 2012.

WATER

FOSSIL FUEL

PACKAGING (Recycled)

PACKAGING (Weight)

PACKAGING (Recyclability)

* This includes a facility that closed in late 2011 located in LeSueur, Minnesota and one co-processor (K&S in Germany). The following facilities are not included in the total number of sites: Research facilities in Bahia Brazil, Chicago and Tannessee in USA and the UK. Seeds production facility in Rancho Dominguez, California in USA. Manufacturing facilities under construction: Topeka in Kansas USA, Ho Chi Minh City in Vietnam, Jeddah in Kingdom of Saudi Arabia, Cherdakly in Russia and Guangzhou in China.

WASTE TO LANDFILL

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Mars also includes logistics in the sustainable approach of its operations. With AGENDA 2017, Mars has paved the way for some key strategic restructuring within the logistics industry. The idea: When trade, industry and logistics part-ners work closely together, it not only helps to lower the cost, but can also reduce their environmental footprint.

Alliances of competitors in the area of warehousing, for example, can contribute to bundling the flow of goods and significantly reduce the mileage, cost and environmental im-pact. The target for 2017 is for Mars to lower logistics costs by 25 percent and carbon emissions by 10 to 15 percent.

Excellent ideas”Our cooperation initiative follows the principle of competition on the shelves, but not in logistics,” says Romald Heuvelmans, Customer Logistics Director at Mars Deutschland. ”We firm-ly believe that together we can achieve considerably more. AGENDA 2017 is an important step towards ’greener’ logis-tics.” Literally an excellent idea: In 2010, Mars was presented the European Award for Logistics Excellence for its efforts in AGENDA 2017.

Mars is also working on self-controlling logistics systems in an initiative headed by the Fraunhofer Institute for Material Flow and Logistics and other partners. ’Intelligent pallets’, for example, can autonomously reach their destinations and thus be continuously monitored in real-time. This allows for more exact planning of delivery times and better utilization of trucks. This is something else Mars has been recognized for, and together with its partners CHEP, the REWE Group and the Fraunhofer IML, won the ECR (Efficient Consumer Response) Award in 2013 in the category ’Company Coopera-tion Supply Side’ for their joint project smaRTI (smart Reus-able Transport Items).

Case Study: AGENDA 2017 - Pioneer of ’green’ logistics

The global target of a climate-neutral production by 2040 also dominates our sustainability agenda at the German sites. As such, numerous improvements to increase energy efficiency, lower water usage and reduce waste have been put in place, and considered corporate-wide as exemplary in their impacts.

For example, at Mars Chocolate Viersen: In the last few years, several million euro were invested in activities to save energy. As part of this effort, more efficient chillers,

air conditioning and production equipment were installed. With enormous success the site was able to reduce its en-ergy consumption by close to 30 percent within five years. ”This puts us clearly above our target of 19 percent”, as Joachim Scholtheis, Environment & Systems Manager, points out. The water consumption has also decreased consider-ably in the wake of numerous programs and investments, for instance, in more efficient appliances in the canteen and new cleaning equipment in the factory. Same applies to the quantity of waste, which Mars in Viersen was also able to reduce by more than half compared to 2007.

In the last few years, large steps in this direction were also made on production equipment and in the offices at the Mars Petcare site in Verden. More effective water treatment, the use of flue gas coolers and an optimized lighting system are only some of the measures that have led to clearly im-proved metrics. ”We are on track and moving forward, and with additional actions will hit the target of producing climate-neutral latest by 2040”, says Ekkehard Schefford, Safety, Environment & Systems Manager at Mars Petcare in Verden.

Case Study: Leading the way – environmentally friendly production in Germany

Find more online:

Operations http://www.mars.com/global/about-mars/mars-pia/our-operations.aspx

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Support for a balanced lifestylePeople‘s health and wellbeing are influenced by numerous factors - including nutrition. With its products and initiatives, Mars would like to contribute towards balancing nutrition and an active lifestyle for both our consumers and their pets. For us, it is important to make prod-ucts that not only taste great, but which people also feel assured about eating and feeding their pets.

Health & Nutrition

Mars

Four areas of activity

We are focusing on four areas of activity in Health and Nutrition: Consumer information, product development, responsible mar-keting and promoting physical activity.

Consumer information

Mars wants to help consumers in making the right choices for a balanced nutrition by providing clear and meaningful in-formation about the ingredients we use and the nutritional value in all of our products. Besides the ingredient overview, we use the Guideline Daily Amount (GDA) on pack to prominently display nutritional information. Moreover, in 2007 we were the first company that pledged to use the extended GDA labeling on all chocolate and confectionery products - and since then have expanded this commitment to include our entire food range. We are also providing detailed nutritional information on our products at www.marshealthyliving.com - and on our chocolate

products in Germany at www.nuba.mars.com. In Germany, we worked closely with nutritional experts to also develop the website www.clever-naschen.de, offering tips and ideas about nutrition and exercise.

Product development

We want to do our part to help tackle rising levels of obesity, heart disease and diabetes by continuing to advance our product development. Since 2010, we have reduced the use of trans-fats and the level of saturated fats in our chocolate products in Germany to an absolute minimum, i.e. about 30 percent in our Mars®, Snickers®, Milky Way® and Balisto® brands. In addition, we also eliminated artificial coloring, preservatives and flavor-ings from our chocolate bars, and beginning end of 2013, we will not offer any chocolate products globally that have more than 250 calories per portion. Moreover, we partnered with

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Our global targetsscientific institutes to research the health benefits of cocoa flavanols, for example, and the oral health benefits of chewing gum. And in the area of pet food, we also work closely with the WALTHAM® Centre for Pet Nutrition in the UK.

Responsible marketing

We interact with millions of consumers primarily through our brands, and we take this responsibility seriously. That is why we have set strict guidelines in our Marketing Code for the way we advertise our food, confectionery and gum products. A key component of this global code is that we do not direct our advertising to children under 12 years of age - in TV as well as in the print media or on websites. This puts us at the fore-front of our industry, and we have already been recognized for this leading role.

Promoting physical activity

By participating in numerous local, regional and global partner-ships, we want to contribute to promoting people‘s health and nutrition. That is why Mars has been a member in Germany of the ’peb’ platform for good nutrition and physical exercise (peb = Plattform Ernährung und Bewegung), promoting a healthy lifestyle for children. Above that, we are also actively engaged in the German initiative ’LALE - iss bewusst & sei aktiv’ (eat healthy & stay active), directed at families of Turkish descent with specific nutrition and exercise offers. For more informa-tion, see Case Study on the next page.

Progress and successes

At the end of 2012, 90 percent of our chocolate and con- fectionery, as well as 70 percent of our food products globally carried the extended GDA nutritional labeling, and are sched-uled for completion with the entire range by end of 2013 (Food: 90 percent by end of 2014). In Germany, our products are already fully in compliance with this commitment.

Since end of 2012, our complete food portfolio in Europe as well as North America meets the regional targets for sodium, and globally we are at almost 70 percent. Thus, we have re-duced the sodium levels in our products since 2007 worldwide by a total of 25 percent. In 2012, we have consistently complied with our pledge not to aim any advertising at children. In the future we will continuously review our progress in the area of Health and Nutrition in all our business segments to con- sistently follow-up on our strategies and efforts.

GDA LabelingWe will implement Guideline Daily Amount (GDA) nutritional labeling on the majority of our choco- late and confectionery globally* by year-end 2013, and continue to roll out GDA labeling across our entire food portfolio** by year-end 2014.

PROGRESS:We have implemented GDA nutritional labeling on more than 90 % of our chocolate and confectionery globally and on 70 % of our food portfolio**.

25 % ReductionWe will reduce sodium levels in Mars Food products globally by an average of 25 % by 2015, from a 2007 baseline (excluding products that already meet regionally agreed sodium targets). We will achieve this through participation in government initiatives and agreeing to voluntary reduction commitments in different regions.

PROGRESS:By the end of 2012 we had achieved the 25 % reduction in sodium in our products across the globe.

< 250 kcal Per PortionWe will not ship any Mars Chocolate products that exceed 250 calories per portion by the end of 2013.

PROGRESS:More than 99 % of our chocolate products will meet the 250 calories per portion target by the end of 2013.

No Advertising to ChildrenNot to advertise our products to children under the age of 12 or advertise on websites aimed at those under 13.

PROGRESS:We consistently met this commitment around the world in 2012***.

* Chewing gum, bubble gum, breath mints, drops, dental pastilles and medicated confectionery are exempt from GDA labeling because they contribute a negligible amount of nutrients (per serving) to the diet. Also excludes gift /promotional items.

** Excludes herbs and spices and condiment packs that are too small label with GDA information as well as Mars Foodservice products.

*** Wrigley´s implementation of the code was completed in 2010, with the exeptions of China, which was fully implemented by the end of 2012, and India, which will fully implement it by the end of 2013.

NUTRITIONAL LABELING

SODIUM

CALORIES

ADVERTISING

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Find more online:

Health & Nutrition http://www.mars.com/global/about-mars/mars-pia/health-and-nutrition.aspx

Together with partners from politics, economy and so-ciety including Mars, the state Consumer Protection Ministry introduced an initiative in 2012 specifically tailored to the needs of families of Turkish descent: ’LALE - Iss bewusst und sei aktiv’ (eat sensibly and be active). A first step in this initiative was to provide training that would enable more bilingual nutrition and exercise experts convey their knowledge

in special LALE courses to parents - in both German and Turkish. The focus is on practical exercises, from cooking to group physical activities. The purpose is to support parents in learning how to integrate balanced nutrition and an active lifestyle into everyday family life and recreational time. Since the initiative was kicked off, courses have been held in many cities. Once the ’LALE’ pilot phase is completed, the goal is to certify this program so as to gain financial support from the statutory health insurers to ensure its continuation.

Over and above its commitment for ’LALE’, Mars in 2009 already extended its online portal www.clever-naschen.de to also provide information in the Turkish language.

Case Study: ’LALE’ - Nutrition and Exercise for ethnic Turkish families

Mars Petcare has been producing cat and dog food in Germany for more than 50 years, while pursuing a consistent nutrition philosophy: Putting pets and their needs first. That is why we are dedicated to actively promoting responsible feeding. We are providing pet holders with a wide variety of information

and services, and sharing the newest insights from science and practice, in addition to offering background knowledge on how to ensure balanced and appropriate nutrition. Of course, we also inform the public about the production and quality of prepared pet food. We invite pet owners to learn more about the Mars Petcare Nutrition Philosophy through our nutrition guidelines. In addition, we established the information portal www.mars4vets.de to support veterinarians in Germany.

New associates at Mars are intensively prepared at the Petcare Academy to give them a good start and become genuine pet care experts. At the workshop ’A Better World for Pets’, we not only communicate important facts about pet food, but also in-form our associates about the growing significance of pets in our society (www.zukunft-heimtier.de).

Case Study: Mars Petcare Nutrition Philosophy - proper feeding

Wrigley has been committed to better oral health-care in Germany for more than 20 years. The Wrigley Oral Healthcare program promotes dental healthcare in sci-ence, theory and practice, e.g. by annually awarding the Wrigley Prophylaxis Prize among the experts in this field.

Another initiative supported by the company together with our associates and financial resources is ’Special Smiles Germany’ - one of six health programs of the Special Olympics: People with a mental disability have significantly higher health risks. Mentally disabled athletes receive dental check-ups for free, plus information on prevention to improve their dental health. Now Wrigley is taking the next step by becoming actively involved in health policies. This is because in Germany many people remain affected by dental decay and periodontitis. Together with repre-sentatives from politics, science, relevant associations and NGOs, the company founded the ’Dental and Oral Health Forum’, aimed at defining a prevention approach from primary dentition to old age.

Case Study: Oral health - from primary dentition to old age

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Actively shaping your careerMars employs more than 72,000 associates in 74 countries across the globe. Our objective is to be a preferred employer who enables exciting professional careers, thus attracting the best and brightest over the long term. Our company culture is important to us, in addition to promoting young talents as well as motivating our experienced associates.

Working at Mars

Mars

The company culture at Mars is based on our Five Principles -Quality, Responsibility, Mutuality, Efficiency and Freedom. Although we speak different languages and live in different cultures, we are united by the same values and have the same objective of making a difference for people, planet and com-pany through our performance.

That is why these values are in the focus from the start; com-municated and expounded upon in professional courses and training on the job. Associates are also encouraged to actively follow up on their personal development and accept a high level of responsibility early on in their careers.

In an interview, P&O Directors in Germany, Nashwa El Gamal, Mars Chocolate, Eva Maria Metzl, Mars Petcare, and Dagmar Thöner, Wrigley, explain the company culture of Mars.

Nashwa El Gamal, P&O DirectorMars Chocolate Germany

Eva Maria Metzl, P&O DirectorMars Petcare Germany

Dagmar Thöner, P&O DirectorWrigley Germany

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What sets Mars apart from other employers?

Nashwa el Gamal:Definitely it is our company culture, characterized by a very open, transparent atmosphere and flat hierarchies. We are not a company of closed doors - in fact just the opposite. In our open-plan offices, everyone is directly visible and ap-proachable for other colleagues. This is how we encourage information sharing and imbed the corporate feeling. This also applies to line managers, who are approachable at any time, sitting among their teams.

Eva Maria Metzl: Another important aspect is the fast development opportuni-ties, which are open to all associates based on their capabili-ties and performance. Age, gender, religion or physical abilities are not relevant. One good example is that having women in leadership positions is no longer special, shown in the fact that the personnel departments of our three biggest segments in Germany are led by women. Currently, the share of women in leadership positions is at 38 percent, but we would like to keep raising it in the future.

How are associates at Mars promoted?

Dagmar Thöner: This is achieved through targeted support programs. Every year the development opportunities, content and targets are discussed with each associate in a so-called Performance Development Process (PDP). This process results in an indi-vidual development plan, differentiated by personal, team and functional aspects. Supporting associates in achieving their personal development targets, this plan is structured according to the 70-20-10 learning principle: 70 Percent of the learning is done on the job, 20 percent through other people - for example through coaching and mentoring - and 10 percent is gained from tradition methods such as training or expert literature.

What training is available to Mars associates?

Nashwa El Gamal: We offer a wide range of learning and development opportu-nities to support associates in their careers. Mars University plays an important role, and in 2012 alone, over 24,000 associ-ates worldwide took part in Mars U courses. But the main focus is clearly on everyday learning on the job, in addition to coaching and mentoring by colleagues and line managers.

Mars also supports the social engagement of its associates. Why?

Dagmar Thöner: For us, it is important that we get involved as a committed partner at our sites and local communities. Of course, our as-sociates play a vital role in doing this. Both our Mars Volunteer Program (MVP) to engage in the local community, and the Mars Ambassador Program (MAP) supporting projects world-wide, give associates the opportunity to take paid time off to become active themselves. And this opportunity is widely used: As part of these two programs at Mars, more than 50,000 hours of volunteer work were performed globally in 2012. Alone in Germany more and more teams and colleagues are joining these efforts.

And how do you know if you are successful as an employer?

Eva Maria Metzl: An important metric of our success as an employer is our annual engagement survey. Associates answering key ques-tions help us understand how they perceive us as their employer. Furthermore, we are participating internationally in a variety of employer competitions, and have already received a large number of awards. In Germany, we were recognized for the sixth consecutive year as a Top Employer. These success stories are encouraging and equally an acknowledge-ment of our approach.

Our Mars Ambassador Program (MAP) offers Mars asso-ciates from all areas and levels of the business an opportunity to become personally engaged - around the globe. Associates have the opportunity to either directly connect with a local community that supports Mars - for example, a cocoa planta-tion in Ghana or a coffee plantation in Kenya - or work together with an NGO or one of our business partners on projects focusing on topics that are also of special significance to Mars.

Dustin Bahr from Mars Chocolate in Viersen is one of the nu-merous ”Mars Ambassadors” who have already taken part in MAP. He spent an entire week on a cocoa plantation in Vietnam and visited many Mars partners in the region - from an elementary school and a university to various farms and local farmer associations. And this is how Dustin Bahr de-scribes his impressions: ”Here was a unique chance for me to get to the very source of our supply chain, and there on location I could learn all about cocoa, our most important raw material.” For him, the combination of gaining insights into the Mars world while having a chance to learn about the world directly on location is what makes the ”Mars Am-bassador Program” so special: ”I learned that the Mars world is much bigger than we often imagine. This has made me a lot more aware of the scope and responsibility of our busi-ness operations.”

Case Study: Mars Ambassador Program - learning in far-away lands

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As a global player, Mars offers multifaceted profes-sional prospects, and employs associates in all ages and experience - from interns to senior managers. With the Management Development Program (MDP) and the Euro-pean Finance Development Program (EFDP), we offer en-try-level positions that prepare junior managers for lead-ing roles in only three years. Trainees learn about the different business segments and divisions in our company and get an opportunity to gain international experience

at our European sites. For us, it is important to give all as-sociates enough freedom to operate and plenty of own responsibility from the start.

Lucas Seiler (on the left) was a trainee in his second year, working as an Account Manager at Mars Food, and can confirm this from his own experience: When Mars ac-quired the Mirácoli brand in 2012, Lucas was project man-ager in Germany and responsible for the entire merger. ”At that time, I had little job experience and never before had lead a project team”, he tells us. ”In retrospective, I am proud of having successfully managed this task and was allowed to be part of this merger.”

Peter Henning, P&O Manager for Mars Food, is also very satisfied with the result. ”We never cease being im-pressed about how engaged our trainees manage new tasks. Our approach to give our associates a high level of responsibility early and letting them grow by facing major challenges, has repeatedly proven to be successful.”

Case Study: Trainees@Mars - Diving in at the deep end

At their sites around the globe, Mars feels part of the surrounding community, and as an active member wants to help make it better. In Germany, teams of Mars associates are also engaged in various social projects.

For example, every year associates from Mars Chocolate in Viersen organize a Christmas market for the needy together with the ’Viersener Tafel’, a local food charity. Apart from that, the Viersen site also supports the local Child Protect-ion Agency in training volunteers for the children‘s helpline, in addition to promoting the ’Schwer mobil’ (heavy movers) program, initiated by the County Sports Association in

Viersen and directed at overweight children, motivating them to become more physically active.

Wrigley associates are first and foremost committed to dental care and oral health. As part of ’Special Smiles Ger-many’, one of the six health programs within the Special Olympics®, Wrigley associates worked as volunteers at the event in München in the summer of 2012. Proper dental prophylaxis is particularly difficult for people with a mental disability. They practiced the proper tooth brushing routine with the athletes in order to improve their dental health and sensitize them to preventive care. Moreover, associates from Unterhaching also supported non-profit projects in their communities, e.g. as part of the citizen‘s foundation ”Lebenswertes Unterhaching” (Livable Unterhaching), Wrigley teams remodeled a school campus and renovated rooms at a neighborhood charity.

And the Mars Petcare team in Verden promotes above all a better coexistence between people and pets. The site works together with, among others, ’Hunde für Handicaps’ (Dogs for Handicapped), enabling training of assistance dogs for people in wheelchairs. This is in addition to many activities together with the ’Deutscher Tierschutzbund’ (German Ani-mal Welfare Association). For example, Mars provides ser-vice vehicles for local animal shelters, and year after year is donating hundreds of tons of dog and cat food to animal shelters across Germany. Furthermore, Mars Petcare asso-ciates have the opportunity to actively lend a hand to partner organizations for an entire day, and thus personally con-tribute to a better world for pets.

Case Study: Many volunteers involved to help the needy

Find more online:

Working at Mars http://www.mars.com/global/about-mars/ mars-pia/working-at-mars.aspx

Impressum

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