CDP. Module: Introduction. Page: W0. Introduction. CDP 2015 Water 2015 Information Request W0.1. Introduction

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1 CDP CDP 2015 Water 2015 Information Request Tiger Brands Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization. Listed on the JSE, Tiger Brands Limited is a branded fast-moving consumer packaged goods company that operates mainly in and selected emerging markets. Its main activities are manufacturing, processing and distribution of branded food, and home, personal and baby care products. The company s vision is to be the world s most admired branded consumer packaged goods company in emerging markets. Our strategy includes on-going focus and investment to: Drive Revenue Growth Accelerate Expansion in Emerging Markets Expand into Adjacent New Categories Achieve Cost Leadership Advance Customer Leadership and Market Capability Brand Leadership Income Categories in order to Protect Positions The Company operates 42 manufacturing sites mainly in, but also in other operating regions. The company has expanded its presence into Kenya, Cameroon, Ethiopia, Nigeria and Zimbabwe. As a consequence of this expansion a review of the treatment of CDP reporting is necessary. For the period under review, newly acquired businesses in our International division will be excluded. W0.2 Reporting year

2 Please state the start and end date of the year for which you are reporting data. Period for which data is reported Wed 01 Jan Wed 31 Dec 2014 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related s are reported. Companies, entities or groups over which operational control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not included in your disclosure? Yes W0.4a Exclusions Please report the exclusions in the following table

3 Exclusion Please explain why you have made the exclusion Facilities that have been recently acquired internationally: Dangote Flour Mills Nigeria EATBI (East n Tiger Brands Industries) Ethiopia UAC Foods Nigeria Distribution Centres & Head Offices Recent acquisitions of manufacturing facilities in are excluded for reporting purposes. This is to allow sufficient time and resources for these operations to implement the new reporting system for tracking water consumption. However, these sites are held accountable for ensuring that their water consumption and effluent treatment standards are in line with Tiger Brands benchmarks. Tiger Brands does not consolidate the water consumed by its Distribution Centres and Head Offices due to low water usage and data limitations. We are currently focusing on our manufacturing facilities which constitute the highest water inputs and outputs. Further Information Module: Current State Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Please explain Sufficient amounts of good quality freshwater available for use Vital for operations Important Direct Use: Water quantity and quality is vital to the organisation as it is required to process products and is a key ingredient for specific products. A number of Tiger Brands products are for human consumption therefore water quality is of high importance. A sustainable supply of water is required; water needs to be of a sufficient quality to ensure the reputable quality of Tiger Brands products. Indirect Use: Tiger Brands have increased activity regarding agricultural water efficiency with suppliers, specifically for water intensive crops, e.g. tomatoes, beans, fruits and sugarcane. Water availability is an important factor that limits agricultural production, Tiger Brands acknowledges that

4 Water quality and quantity Direct use importance rating Indirect use importance rating Please explain Sufficient amounts of recycled, brackish and/or produced water available for use Important Important the water availability is likely to become increasingly stressed due to demand from the economy and climate change; therefore water has an in sourcing some of Tiger Brands crucial farmed raw materials. Direct Use: Tiger Brands have investigated the possibility of using of recycled and grey water in some facilities. Therefore systems retain as much water on site as possible. Moving towards a closed-loop (or as closed as possible) system is important for Tiger Brands to ensure sustainable water consumption. Indirect Use: A number of Tiger Brands suppliers utilize recycled water, and brackish ground water, in their operations. The sustainability of Tiger Brands suppliers is important to the organisation therefore the sustainable input of water is key. W1.2 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect % of sites/facilities/operations Please explain Water withdrawals- total volumes Water withdrawalsvolume by sources Water discharges- total volumes Access to water is critical to ensure business continuity. The use of this resource carries financial implications for Tiger Brands; as such we recognise the importance of measuring water withdrawals across our manufacturing facilities. This data is tracked monthly using the Sustainability Reporting Tool. The bulk of the water used is water received / sourced from the municipality.the monitoring of water availability and reliability by river basin and water management area source is a new initiative undertaken by Tiger Brands this year. After undergoing effluent treatment on site; access water from all Tiger Brands facilities is discharged to municipal lines. The site is charged per kilo litre of water released for this reason discharge volumes are recorded and monitored using Tiger Brands Sustainability Reporting Tool.

5 Water aspect % of sites/facilities/operations Please explain Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Facilities providing fullyfunctioning WASH services for all workers The majority of facilities have a single effluent output which is measured and monitored Less than 1% Less than 1% A range of physical, chemical and biological effluent treatment methods are used across the Tiger Brands sites. However, the structure of the current Sustainability Reporting Tool does not make provision for quantifying the volume of water discharged by treatment method. The reporting tool will be reviewed to include this metric. Tiger Brands requires quality water inputs in its manufacturing sites; for processing and often as a key input for specific products. A number of Tiger Brands products are for human consumption, therefore water quality is of high importance. As part of Tiger Brands quality controls in the various operations, there are key water specifications that the company works with based on the following indicators: Water quality, i.e. taste, look, smell, disinfection, etc. All facilities monitor the COD of effluent. The majority of facilities also measure and monitor the effluents PH level and conductivity. Some facilities also measure and monitor ss, n and p levels in effluent. The water consumed at a Site, Business and Division level is measured monthly using the Tiger Brands Sustainability Reporting Tool. This is essential as environmental KPI s set for each level is monitored using this data. Fully functioning wash facilities are provided at certain Tiger Brands sites. However, the structure of the current Sustainability Reporting Tool includes this amount in the total withdrawal value. The reporting tool will be reviewed to include this metric. W1.2a Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Fresh surface water 0 Not applicable No

6 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Brackish surface water/seawater 0 Not applicable No Rainwater 0 Not applicable No Groundwater - renewable 0 Not applicable No Groundwater - nonrenewable 0 Not applicable No Produced/process water 0 Not applicable No Municipal supply Lower Tiger Brands uses municipal water both domestically and internationally. We rolled out water saving schemes at our sites within the Grains Division. This has helped to reduce the volume of municipal water withdrawn. Wastewater from another organization 0 Not applicable No Total Lower No W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Fresh surface water 0 Not applicable No comment Brackish surface water/seawater 0 Not applicable No comment

7 Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Groundwater 0 Not applicable No comment Municipal treatment An increase in production volumes as well as water recycling projects has Not applicable plant resulted in a reduction in effluent discharged to Municipal Treatment Plants. Total Not applicable No comment W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Higher Due to a reduction in discharge volumes an increase in the water consumed within the reporting period was realised. W1.3 Do you request your suppliers to report on their water use, risks and/or management? Yes W1.3a

8 Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage Tiger Brands has operations, and suppliers, across ern. The organisation has highlighted water exposure, in terms of catchments under threat, as defined by the WWF. Tiger Brands ensures that vulnerable suppliers respond to sustainability questionnaires. Tiger Brands also conducts water footprints based on Green, Blue and Grey water to determine the nature of the risks the organisation faces. W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management Primary reason Please explain W1.4 Has your organization experienced any detrimental s related to water in the reporting period? Yes W1.4a

9 Please describe the detrimental s experienced by your organization related to water in the reporting year Country River basin Impact indicator Impact Description of Length of Overall financial Response strategy Description of response strategy Other: Numerous basins as the water is supplied directly from source to municipality through to the manufacturing sites Reg- Higher water prices Higher operating costs Even with a 5% yearon-year reduction target in water usage for the next 3 years, increasing water prices have resulted in the organisation having to rethink strategic opportunities. The company s budget does account for annual water price increases, however it remains essential to investigate efficient water consumption. Initiatives include: - Redesigning the production line for efficient water usage - Investigating utilizing recycled and storm water - Installing water pulse meters The will be an on going concern. Increased budget figure for facilities to accommodate for the increase in water tariffs Other: Tiger Brands response strategy incorporates a number of aspects which are included in the organisations primary response strategy of reducing water consumption while maintaining water quality. Furthermore, for Tiger Brands sustainable farming is about meeting the needs of ns today and in the future. The recent global rise in food prices and repeated reports about social media arrest in a large number of countries reveal the strategic and basic importance of the agricultural sector for social and economic stability Tiger Brands has numerous response strategies, i.e. involvement in infrastructure maintenance, greater due diligence, setting site specific targets, engage with other stakeholders in the watershed, align to public policy positions with water stewardship goals. Strategies include: -Set targets - Implement clearly defined actions to be undertaken per site - Collaborate with service providers, government, NGO s, business and consumers -Develop innovative production solution -Support agriculture W1.4b

10 Please choose the option below that best explains why you do not know if your organization experienced any detrimental s related to water in the reporting year and any plans you have to investigate this in the future Primary reason Future plans Further Information Attachments /Shared Documents/Attachments/Water2015/W1.Context/Sustainability Scorecard - Albany.xlsx Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks

11 Risk assessment procedure Coverage Scale Please explain Comprehensive company-wide risk assessment Direct operations and supply chain Some facilities and all suppliers Tiger Brands updated risk profiles and disaster recovery plans to take into account water issues. To understand where manufacturing sites are in water-scarce locations, publically available and bespoke tools are used to identify risks. Water scarcity ratings are validated with local knowledge and publically available data provided by regional and site teams. Tiger Brands continue to develop a comprehensive understanding of water risks in manufacturing, supply, distribution and third party sites. The organisation responds to the commercial and reputational risks that water and wider climate change issues pose to the business. An example is the engagement with the agricultural sector; discussions arise around irrigation being the conventional method to increase productivity by expanding arable area. However s irrigable land is already cultivated (+- 1.2% of the country), irrigation is rapidly expanding into unsuitable areas negatively ing the environment. W2.3 Please state how frequently you undertake water risk assessments, what geographical scale and how far into the future you consider risks for each assessment Frequency Geographic scale How far into the future are risks considered? Every two years Country 3 to 6 years Tiger Brands Group Research team conducts water risk assessments for the 3 year annual strategy session. Water risks are reviewed annually and included in the strategy. The Research team gains input from national researchers working on campaigns such as "Towards 2030: certainties, uncertainties and scenarios". Tiger Brands also considers the timeframe of water risk assessments by benchmarking against competitors and aligning to legislation and water stewardship bodies. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy?

12 Yes, evaluated over the next 5 years W2.4a Please explain how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy? The process of identifying risk involves a series of steps which are: Step 1 - Brainstorming Step 2 - Determine the probability of the event occurring (Past Events) Step 3 - Quantifying the risk in terms of monetary value Step 4 - Prioritise risk in terms of monetary value utilising this formula (Existing Risk Projected Climate Change = Future Climate Risk) Existing Risk = Related Risk (Rands) Projected Climate Change = Frequency of the event happening (%) Future Climate Risk = Rand Value (Projected Risk) The footprint of Tiger Brands throughout is extensive. So the process is done per division within the organisation. As a result this filters down to individual units (operational) where the at an asset level can be determined. W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy, and are there any plans in place to do so in the future? Main reason Current plans Timeframe until evaluation

13 W2.5 Please state the methods used to assess water risks Method Please explain how these methods are used in your risk assessment FAO/AQUASTAT Internal company knowledge Life Cycle Assessment WRI Aqueduct Aquastat has been used to collect and analyze information on agricultural water use which is a significant component of Tiger s overall consumption. The results are used to identify current and projected water risks relating to the companies agricultural holdings. Tiger Brands has undertaken work with PE International on Life Cycle Assessments (LCA) for key brands, which focuses on Green, Blue and Grey water. The results from this study will be incorporated into our water risk assessment. The WRI Aqueduct Tool has been used to generate a database for each of the Tiger Brands Manufacturing Sites which provided weighting schemer for the following metrics: Overall Water Risk Physical Risk Quality Physical Risk Quantity Regulatory & Reputational Risk Baseline Water Stress Interannual Variability Seasonal Variability Flood Occurrence Drought Severity Upstream Storage Groundwater Stress Return Flow Ratio Upstream Protected Land Media Coverage Access to Water W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments? Issues Choose option Please explain Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Relevant, included Relevant, included Water availability and quality is key to the success of the business. Tiger Brands assess water risks at a facility level as water is used in the manufacturing process and water is often a key ingredient products. Water quality is critical to maintain the Groups brand as low quality water s the quality of consumer products and may be disregarded and cannot be sold. Tiger Brands consider increasing water tariffs as a risk to the organisation. Water usage is critical to the organisation and even with reduction targets the rising cost of water will the business. Tiger Brands engage with policy makers in order to keep up to date with regulation changes, tariff increases and try to mitigate risks.

14 Issues Choose option Please explain Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Estimates of future potential regulatory changes at a local level Estimates of future potential stakeholder conflicts at a local level Estimates of future implications of water on your key commodities/raw materials Estimates of future potential changes in the status of ecosystems and habitats at a local level Relevant, included for some facilities/suppliers Relevant, included Relevant, not yet included Relevant, not yet included Relevant, not yet included Relevant, included for some facilities/suppliers Relevant, included Relevant, included Relevant, included Relevant, not yet included Tiger Brands engage with stakeholders in watersheds where the organisation has a presence. Water risks are assessed for the specific facilities in watersheds where stakeholder conflicts are prominent. A watershed is defined as the area of land where all above ground and below ground water converge at a single point. Tiger Brands business operations rely on a sustainable input of raw materials. The abundance of raw materials is largely dependent on water. Tiger Brands engage with the agricultural sector on improved water irrigation techniques. Of particular concern is that irrigation of agriculture land is already by far the biggest water user in. The discussions thus far have been with the department of agriculture, the WWF organization, the department of water affairs and forestry, etc. Tiger Brands acknowledge that there are water risks in relation to ecosystems and local habitants, however this has not yet been included in the organisations water risks assessment as Tiger Brands risk priority assessments have resulted in the organisation focussing on water supply, cost and quality risks. Tiger Brands has initiated the process of determining the river basin source for each of it's manufacturing facilities. The information will be used in future risk assessments. Access to fully-functioning WASH services for all employees is mandatory at Tiger Brands food manufacturing facilities. However, this has not yet been included in the organisations water risks assessment. Future water availability is critical to Tiger Brands operations. The Group acknowledges that this is a company-wide risk, however Tiger Brands have focussed its risk assessments on facilities which are the most vulnerable to future water security and declining quality. I.e. facilities most vulnerable to these water related risks. Regulatory changes relating to water can have a significant on the business as there is potential for decreased access to quality water, both from an availability and cost perspective Tiger Brands engage with stakeholders in watersheds where the organisation has a presence. Water risks are assessed for the specific facilities in watersheds where stakeholder conflicts are prominent. Global water scarcity is expected to increase over the next 20 to 30 years. Sub-Saharan has the largest number of water-stresses countries of any region. Raw materials, specifically, high water consuming crops, are vulnerable to water scarcity. As a food converter, Tiger Brands relies on a sustainable input of raw materials. Additionally, water is often a key ingredient in products for Tiger Brands The status of ecosystems and local habitats has not yet been prioritized at this time

15 Issues Choose option Please explain Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Scenario analysis of regulatory and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials Scenario analysis of potential changes in the status of ecosystems and habitats at a local level Other Relevant, included for some facilities/suppliers Relevant, included Relevant, included Relevant, included for some facilities/suppliers Relevant, not yet included Relevant, included Future water availability is critical to Tiger Brands operations. The Group acknowledges that this is a company-wide risk, however Tiger Brands have focussed its risk assessments on facilities which are the most vulnerable to future water unavailability. Tiger Brands utilize water management tools to analyse the of future water scarcity on high risks business units. The Group analyses the of tariff increases on the organisations bottom line. The analysis is also conducted per facility in order to prioritize water reduction efforts. Tiger Brands engage with the government, DTI, municipalities and water boards; this is to influence legislation, build partnerships in the industry and to also learn from organisations doing sustainable best practices that Tiger Brands can apply to internal processes. Stakeholder conflicts are a risk to Tiger Brands reputation. Tiger Brands analyse the of conflicts on the organisation. Raw material supply is critical to Tiger Brands operations. The organisation analyses various climate change risks, such as drought, rainfall patters and changes in seasonal rain, on raw material production. The agricultural sector may require increased volumes of irrigation, therefore further ing water resources. Tiger Brands examine how water availability s raw material production and how this on suppliers affect the organisation. The status of ecosystems and local habitats has not yet been prioritized at this time Tiger Brands highlighted key questions regarding water risks: -Which facilities are located in water-stressed regions? -What percent of a watershed s available water do facilities use? - What percent of the available water is used for human purposes and what are the allocations among sectors? -Where is there a high potential for reputational risk? -How will exposure to water risks change due to population growth, climate change, and economic development? W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments?

16 Stakeholder Choose option Please explain Customers Employees Investors Local communities NGOs Other water users at a local level Regulators River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities/suppliers at a local level Other Relevant, included Relevant, included for some facilities/suppliers Relevant, included Relevant, included for some facilities/suppliers Relevant, not yet included Relevant, included for some facilities/suppliers Relevant, not yet included Relevant, not yet included Relevant, not yet included Relevant, included Relevant, included Relevant, included Tiger Brands acknowledge that consumer products have the potential to reduce water consumption in the home. Through research and product innovation Tiger Brands aims to assist customers in reducing their water consumption. Tiger Brands further acknowledges the importance of the quality of water used in products for human consumption. Water quality cannot be jeopardised as this can have an on products meeting certain quality standards, e.g. n Water Quality Guidelines There has been increased awareness among employees; and Tiger Brands have implemented simple solutions (small, easy-to-implement changes) which can be carried out by employees. As well as being crucial to the organisations business operations, water risks Tiger Brands reputation. Therefore investors are considered when assessing risks. Investors are able to request and gain access to any information relating to Tiger Brands water use, strategy and policies which can assist in their decision making. Water risks are assessed for communities which are located in vulnerable areas. Tiger Brands continue to emphasise water availability and quality through partnerships with farmers. Shared learnings with the agricultural industry raises the need for conservation awareness, e.g. soil erosion changes the flow of rivers and storage capacity of dams; resulting in the need for water treatment systems. Poorly applied fertilisers run off into rivers, polluting water sources and causing algal blooms. Tiger Brands engages with NGO's on water related issues. However NGO's have not been included in water risk assessments. Tiger Brands assesses water risks for stakeholders in areas vulnerable to water unavailability and/or contamination Tiger Brands engages with regulators on water related issues. However regulators have not been included in water risk assessments. River basin management authorities have not been included in risk assessments at this stage. Statutory special interest groups have not been included in risk assessments at this stage. A sustainable input of raw materials is key to Tiger Brands business operations. The organisation includes suppliers in water risk assessments due to the significant that a lack of raw materials can have on business operations. Tiger Brands engage with local water utilities and suppliers on issues around water supply and cost. This enables the organisation to identify potential risks and can address these risks at a company level Tiger Brands are involved in public forums held and facilitated by WWF for integrated regional water management plans.

17 W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment Primary reason Please explain Further Information Attachments /Shared Documents/Attachments/Water2015/W2.ProceduresandRequirements/AqueductWaterRiskData xlsx Module: Implications Page: W3. Water Risks W3.1 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure? Yes, direct operations and supply chain W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk

18 Tiger Brands utilises two methods to define substantive changes in operations, revenue or expenditure from water risk: 1) Tiger Brands highlights the facilities where the production process requires water, the water may not be consumed in large volumes but the water is critical for the manufacture of key products. 2) Tiger Brands prioritizes facilities according to the highest water consumers. Water usage is the water used relative to production. This is ranked according to water usage and the cost of water. 3) Tiger Brands analyses the facilities contribution to the group, i.e. a percentile value of the water utilized by the respective unit in relation to the total amount of water the whole of Tiger Brands used. To determine the facilities to prioritize with regards to water risks, Tiger Brands cross references the highest consuming facilities with the facilities where water is critical to the manufacture of key products. Utilizing methods 1, 2 and 3 described above, the following facilities are focussed on in Tiger Brands water disclosure response: - King Foods Potchefstroom (Sorghum germination) 55.44% largest contributor to the Group - Boksburg Manufacturing Site (vegetable, salads and tomato sauce) 10.24% contribution to Group - Langeberg and Ashton Foods (fruit canning) 9.23% contribution to Group - Musina Manufacturing Site (tomato paste and cans) 1.05% contribution to Group W3.2a Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure and the proportion of total operations this represents Country River basin Number of facilites Proportion of total operations exposed to risk within river basin (%) Breede- Gouritz (WMA) % of Tiger Brands water withdrawals is extracted from the Breede Water Management Area by a single facility (Langeberg and Ashton Foods). This facility has been identified as a significant water user relative to production. The WRI Aqueduct Tool rates the overall water risk for this facility as medium to high risk

19 Country River basin Number of facilites Proportion of total operations exposed to risk within river basin (%) Orange Limpopo % of Tiger Brands water withdrawals is extracted from the Orange River Basin. A substantial portion of these facilities fall in the consumer brands business unit as these manufacturing sites require water consumption to produce consumer foods products, i.e. in cleaning of raw materials and at times as a key ingredient in the consumer product. The WRI Aqueduct Tool rates the overall water risk for these facilities as low to medium risk 7.6% of Tiger Brands water withdrawals are extracted from the Limpopo River Basin. Facilities which fall within this river basin run production processes where the water consumed is not in large volumes but the water is critical for the manufacture of key products. In addition, these facilities are within a region of water stress. The WRI Aqueduct Tool rates the overall water risk for these facilities as high risk. W3.2b Please provide the proportion of financial value that could be affected at river basin level associated with the facilities listed in W3.2a Country River basin Financial reporting metric Proportion of chosen metric that could be affected within the river basin Breede-Gouritz (WMA) % cost of goods sold No Orange % cost of goods sold No Limpopo % cost of goods sold No W3.2c

20 Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the potential to your direct operations and the strategies to mitigate them Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Breede- Gouritz (WMA) Orange Regulatory- Regulation of discharge quality/volumes leading to higher compliance costs Regulatory- Mandatory water efficiency, conservation, recycling or process standards Fines/ penalties Fines/ penalties Increased regulations around the volume and quality of discharged water will lead to increased compliance costs. This has the potential to stop operations at sites with high discharge quantities. As a food converter effluent issues arise due to the COD levels in effluent. Mandatory water efficiency, conservation, recycling or process standards will lead to higher costs of variable overheads leading 1-3 years Probable High 1-3 years Probable High Other: Comply with local legal requirements or company own internal standards, whichever is more stringent Other: Comply with local legal requirements or company own internal standards, whichever is High High Tiger Brands monitor legal requirements and aim for compliance. The capital expenditure to comply with water standards is often high, as standards become more stringent these costs are likely to increase. For example, one site has a capex cost of R150 million to treat wastewater to river standards. As mentioned above, Tiger Brands monitors legal requirements and aims for compliance. The capital

21 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Limpopo Regulatory- Higher water prices Supply chain disruption to increased costs per product. Water supply is critical to a number of Tiger Brands operations. The Musina manufacturing site requires a constant supply of high quality water to produce tomato paste and canned tomato products. Disruptions in the supply of water or the quality of water required to meet standards will result in a loss of production of tomato paste which is used in the production of tomato sauce and other tomato products. Unknown Probable High more stringent Engagement with suppliers Low expenditure to comply with water standards is often high, as standards become more stringent these costs are likely to increase. Tiger Brands Musina site meets regularly with water suppliers to ensure a constant supply of quality water.

22 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Orange Regulatory- Higher water prices Higher operating costs Higher cost of variable overheads leads to increased cost per product 1-3 years Highly probable Medium Water management incentives Low- Medium Tiger Brands have begun addressing issues around increasing water prices. Strategies include increasing water saving awareness, repairing water leaks, and other water saving projects. W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the potential to your supply chain and the strategies to mitigate them Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Breede- Higher Water scarcity is 1-3 years Probable Low- Engagement Low-medium Tiger Brands

23 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Gouritz (WMA) Orange Physical- Declining water quality operating costs Brand damage coupled with a lack of both water availability and water accessibility. Water accessibility is whether or not an individual or organisation can access water, i.e. water may not be accessible due to increased water prices. An increase in the price of water leads to increased costs to produce products therefore resulting in a lower margin. Water usage is critical at a number of Tiger Brands sites. Often the processes requires high volumes of water and at a number of sites water is a medium 1-3 years Probable Medium with public policy makers Engagement with suppliers The response strategy differs across Tiger Brands facilities. Tiger Brands Boksburg Manufacturing site meets biannually with engage with stakeholders and policy makers on issues of water scarcity and supply costs. Tiger Brands also invest in water conservation projects and education around water saving behaviours.

24 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Limpopo Physical- Inadequate infrastructure Supply chain disruption key input in the manufacture of products. Declining water quality is a health risk for consumers, and a rise in consumer complaints will bring significant brand damage Water supply is critical to a number of Tiger Brands operations. The Musina manufacturing site requires a constant supply of quality water to produce tomato paste and canned tomato products. Loss of production of tomato paste, that is used in the production of tomato sauce and loss of production of other tomato Unknown Unlikely Medium Engagement with suppliers local water service providers Low Tiger Brands tomato manufacturing site meets regularly with the manufacturing plants water supplier. Tiger Brands regularly engages with suppliers to promote a strong relationship. Tiger Brands engages with supplier to ensure their sustainability though improved

25 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs Orange Regulatory- Higher water prices Higher operating costs products. This can lead to a disruption in the supply of these products to the market and a financial loss to the company Tiger Brands requires raw materials which are processed into consumer products. Raw materials often require significant volumes of natural and/or municipal water for production. Increased volumes of water required for irrigation (due to drought) coupled with increased water costs will the availability and cost of raw materials. The indirect water costs (increasing the cost of raw 1-3 years Highly probable Medium Engagement with suppliers Low Medium farming practices Tiger Brands regularly engages with suppliers to promote a strong relationship. Tiger Brands engages with supplier to ensure their sustainability though improved farming practices

26 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs materials) coupled with the direct water costs will increase the cost of production resulting in lower margins W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Please explain W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure

27 Primary reason Please explain W3.2g Please choose the option that best explains why you do not know if your organization is exposed to water risks that could generate a substantive change in your business operations, revenue or expenditure and discuss any future plans you have to assess this Primary reason Future plans Further Information Page: W4. Water Opportunities W4.1 Does water present strategic, operational or market opportunities that substantively benefit/have the potential to benefit your organization? Yes W4.1a Please describe the opportunities water presents to your organization and your strategies to realize them

28 Country or region Opportunity Strategy to realize opportunity Estimated timeframe Please explain Companywide Companywide Increased brand value Cost savings In, and internationally, there is growing customer awareness of water and other sustainability issues. Tiger Brands believe that efficiency in operations will help in creating a resilient and sustainable business which is a positive image to portray to internal and external stakeholders. Tiger Brands relies on good communication and marketing of its sustainability initiatives to attract and retain ethical and environmentally conscience consumers. Water efficiency in Tiger Brands operations enables the business to withstand water scarcity and quality challenges, while reducing costs. Reducing costs is a key opportunity for the organisation particularly with the anticipated tariff increases. Tiger Brands online metering system allows for improved data regarding cost recoveries, i.e. Tiger Brands can recover overcharging from landlords, identify leaks that have not been picked up physically and investigate the billing from municipalities. Current-up to 1 year Current-up to 1 year Tiger Brands communicate the organisations sustainability commitments (which includes water) to customers, employees and suppliers via marketing and communication channels. This helps to grow awareness amongst stakeholders and portray a positive image for the company. Consumer research tracks the success of communication efforts. Tiger Brands also works with its suppliers to reduce water use and improve wastewater management. Tiger Brands regularly investigates opportunities that reduce water consumption and promotes effective and efficient water use. This is accomplished through reducing the organisations water footprint, rolling out water-saving product innovations, increasing activity on agricultural water efficiency, specifically for the most water-intensives crops (tomatoes, beans, fruits, sugarcane, etc.). W4.1b Please choose the option that best explains why water does not present your organization with any opportunities that have the potential to provide substantive benefit Primary reason Please explain W4.1c

29 Please choose the option that best explains why you do not know if water presents your organization with any opportunities that have the potential to provide substantive benefit Primary reason Please explain Further Information Module: Accounting Page: W5. Facility Level Water Accounting (I) W5.1 Water withdrawals: for the reporting year, please complete the table below with water accounting data for all facilities included in your answer to W3.2a Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Please explain the change if substantive Facility 1 Breede- Gouritz (WMA) L&AF Ashton West/ Ashton East Higher No Facility 2 Limpopo Albany Pretoria Lower No Facility 3 Limpopo Albany Randfontein Lower No

30 Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Please explain the change if substantive Facility 4 Facility 5 Facility 6 Facility 7 Facility 8 Facility 9 Facility 10 Facility 11 Facility 12 Facility 13 Facility 14 Facility 15 Facility 16 Facility 17 Limpopo Albany Secunda Lower No Limpopo Culinary Marble Hall Higher No Limpopo Culinary Musina Higher No Limpopo Culinary Peanut Butter 2.77 Higher No Limpopo Limpopo Enterprise Factory Polokwane Enterprise Factory Pork Packers Higher No Higher No Limpopo HPCB Isando Lower No Limpopo Milling Randfontein Lower No Orange Albany Germiston Lower No Orange Albany Sasolburg Lower No Orange Culinary Mayonnnaise Higher No Orange Orange Orange Culinary Salads, Vegetable & Tomato Unit (Boksburg) Enterprise Factory Germiston King Foods Potchefstroom Higher No Higher No Lower Water saving campaigns launched on site

31 Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Please explain the change if substantive Facility 18 Facility 19 Facility 20 Orange Milling Henneman 18 Lower No Orange Pasta Isando Much higher Orange S,T&B Roodekop Higher No Production volumes increased significantly in 2014 resulting in greater water requirements. Water is a core ingredient for the manufacture of pasta Further Information Page: W5. Facility Level Water Accounting (II) W5.1a Water withdrawals: for the reporting year, please provide withdrawal data, in megaliters per year, for the water sources used for all facilities reported in W5.1 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Facility No

32 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No Facility No

33 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Facility Facility No No W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities included in your answer to W3.2a Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? Please explain the change if substantive Facility Higher No Facility Lower No Facility Lower No Facility Lower No Facility 5 At the time of submitting the CDP Water Response this data was not made available by the site. Facility Higher No Facility 7 At the time of submitting the CDP Water Response this data was not made available by the site. Facility Higher No Facility Higher No Facility Lower No Facility Higher No

34 Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? Please explain the change if substantive Facility Lower No Facility Lower No Facility Higher No Facility Higher No Facility Lower No Facility 17 At the time of submitting the CDP Water Response this data was not made available by the site. Facility 18 At the time of submitting the CDP Water Response this data was not made available by the site. Facility 19 At the time of submitting the CDP Water Response this data was not made available by the site. Facility Much lower An increase in water saving awareness was realised. In addition, the site worked more product in the 2014 financial year. W5.2a Water discharge: for the reporting year, please provide water discharge data, in megaliters per year, by destination for all facilities reported in W5.2 Facility reference number Fresh surface water Municipal Treatment Plant Seawater Groundwater Facility No comment Facility No comment Facility No comment Facility No comment Facility 5 At the time of submitting the CDP Water Response this data was not made available by the site

35 Facility reference number Fresh surface water Municipal Treatment Plant Seawater Groundwater Facility No comment Facility 7 At the time of submitting the CDP Water Response this data was not made available by the site Facility No comment Facility No comment Facility No comment Facility No comment Facility No comment Facility No comment Facility No comment Facility No comment Facility No comment Facility 17 At the time of submitting the CDP Water Response this data was not made available by the site Facility 18 At the time of submitting the CDP Water Response this data was not made available by the site Facility 19 At the time of submitting the CDP Water Response this data was not made available by the site Facility No comment W5.3 Water consumption: for the reporting year, please provide water consumption data for all facilities reported in W3.2a Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year? Please explain the change if substantive Facility Higher No