Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 KPI: We support social initiatives in the communities in which we operate with manpower, knowledge, networks and facilities, and we invest the equivalent of 3% of our annual profit in social initiatives on a not-for-profit basis. Results 2020 In of profit 2016 2015 2014 target Community not-for-profit investments1 3.6 2.8 3.5 3 1 The KPI and target include donations by Rabobank Foundation, which is a separate entity outside the Rabobank Group organisation. Community funds and donations In millions of euros 2016 2015 2014 2013 2012 Cooperative dividend (from 97% of the local Rabobanks) 49.0 38.1 36.8 44.5 44.2 Donation from Rabobank and other Group divisions 6.5 6.9 8.0 8.0 4.6 Rabobank Foundation (in the Netherlands and abroad) 16.9 13.1 15.7 12.9 15.2 Other 0.4 0.5 0.5 0.5 0.4 Total community funds and donations 72.8 58.6 61.0 65.8 64.4 The 2016 contribution to community initiatives as a percentage of net profit equals 3.6%; this exceeds the KPI target of 3% and represents a significant increase from levels in 2015, when the target had not been met yet. This is primarily due to an increase in cooperative dividend spending by local Rabobanks. In 2016, 97% of local Rabobanks contributed funds to Rabobank Foundation. Besides giving financial support, Rabobank also supports social projects through a contribution of employee hours. KPI: By 2020, we will be supporting 1,000 cooperatives and other member organisations in achieving business success, including 500 in the Netherlands and 500 in developing countries. Rabobank Foundation supported 278 initiatives in 2016. As some initiatives consist of multiple independent projects, the total number of individually supported initiatives is expected to be higher. In 2017, Rabobank Development will begin reporting on farmers' organisations in developing countries. In 2016, local Rabobanks reported 103 collective local community initiatives, with both a social and an economic purpose. These initiatives consist of local renewable energy cooperatives, local civil healthcare collaborations and fibreoptic internet projects, as well as others. We share our knowledge and networks with these initiatives as well as financial support. If we continue to support around 100 initiatives annually, the cumulative target of 500 in 2020 is realistic. We used a more stringent method of measuring and reporting these initiatives in 2016 in order to focus on those which truly result from civil participation. We re-evaluated the portfolio to this end, so are not reporting the 2015 figures as they do not compare. This method will be used for future reference and going forward, will be embedded in the data collection processes of local Rabobanks. A side effect of the more stringent reporting method is the fact that it underrepresents the broad number of social initiatives supported by the banks mentioned. This presents us with a dilemma, as we want to report the correct figure, but it does not sufficiently reflect the valuable support of activities performed locally. A possible solution is the Rabo Versterkt platform, which does mention these initiatives which fit so well within our Banking for the Netherlands strategy. Rabo Versterkt One of the challenges we identified in 2015 was how to make our social contributions more known. The 'Rabo Versterkt' (Rabo Reinforces) initiative uses a digital and interactive map of the Netherlands to show which initiatives are supported by local Rabobanks. This makes it possible and easy to see where those projects are located and what they entail. Rabo Versterkt is about more than just sponsorships: it also encompasses donations and connections the bank makes in order to contribute to economic and community vitality. The local New collective local community initiatives as declared by local Rabobanks (cumulative) 2016 2015 2014 2020 target Total 103 n/a n/a 500 New collective local community initiatives (cumulative) Numbers supported by Rabobank abroad 2016 2015 2014 2020 target Number of initiatives supported by Rabobank Foundation 278 230 n/a Total 278 230 n/a 500 88 Rabobank Annual Report 2016

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Annual Reports Rabobank | 2016 | | pagina 386