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How and why we are building a sustainable FrieslandCampina


 Status report Aug 2012
Our gateway to the world



       (10%)


• 15,000 dairy farms in NL, D, B
• Processing in 26 countries
• Sales EUR 10 bn>100 countries
• Leading consumer brands
• Strong balance sheet
Growing FrieslandCampina in a very,
         very dynamic environment
Rabobank: global food system close
                                                    to tipping point




Key points:

• The global food system has been brought to a tipping point, and the
 battle for agro-commodities will intensify

• In the profound transition of the next 40 years, the F&A sector will need
 to double agro-commodity supply with access to only about half of
 the current land, water and mineral resources



 (Rabobank: ‘Rethinking the F&A Supply Chain: Impact of Agricultural
 Price Volatility on Sourcing Strategies’/ 27 Sept 2011)
Piet Boer; Chairman of FrieslandCampina
                                      cooperative

   “I am expecting as a representative of our 20,000 member farmers – also
   shareholders – our company FrieslandCampina N.V. to deliver tangible
   results in three different areas:”




1. Return on Investment (RoI)

2. Continuity (we have a 130 yrs heritage)

3. Successfully embedding FrieslandCampina in the societies where we
   operate…. (So, stay aligned with stakeholders’ expectations)
Strategy route2020:
Growth & value creation


                                                                Aspiration

                                                                                To bring the
                                                                                essential                        To be the most
                                                                                nutrients of                     attractive
                                                                                natural dairy                    dairy company
                                                                                to people                        for member
                                                                                worldwide                        farmers


                                                Value-drivers




                                               Dairy-based    Infant &          Branded          Strongholds      Foodservice      Basic
                                               beverages      toddler           cheese           & geographic     in Europe        products
                                                              nutrition                          expansion
                                                              (B2B, B2C)


                      Benefit platforms




                                 Growth &                                                       Health &
                                 development                  Daily nutrition                   wellness                          Functionality


                      Capabilities




                                Talent                       Milk                                                                 Business model
                                management                   valorisation                       Innovation                        & cost focus


                      Foundation



                                                                                                                                  The way
                                Goodness                     Chain                                                                we work &
                                of dairy                     advantages                         Sustainability                    safety
What is the purpose of a company?
FrieslandCampina CSR Strategy House


                            CSR Mission and Vision

                         FrieslandCampina CSR Business Case
                             CSR Strategy, 4 priorities, KPIs

    Health &                Sustainable              Dairy                  Responsible
    Nutrition              Value Chains           Development              Dairy Farming

Combating obesity &       Improving resource       Helping farmers        Setting the standard
 nutrient deficiency          utilisation            Africa, Asia




    company                  company                 company                 cooperative


                       CSR Governance Board – 4 implementation teams


  CSR Performance Measurement – Annual Reporting – Stakeholder dialogue - Partnerships


 Employee & Dairy Farmer Engagement – CSR Training programs – Annual CSR Team Award


   Business Practices for Suppliers – Code of Conduct – Foqus – Policies & Position Papers
Red Cross: supporting the relief aid program
                                 and raising funds

• Brands link up to raise funds for Red Cross & 3FM SR
• Making our nutrition expertise available to Red Cross
• FrieslandCampina employees sponsor run
External recognition of the sustainability
                                       efforts of FrieslandCampina



     Highest score in food category in Transparency   Highest score food producer in MT Image
     Benchmark 2011 Dutch government (Min EL&I)                        monitor




                                                      FrieslandCampina Dairy production fulfils
            Intensive cooperation with WWF
                                                            requirements of Unilever SAC




10

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Studium generale - HAS Hogeschool - Frank van Ooijen - Friesland Campina

  • 1. How and why we are building a sustainable FrieslandCampina Status report Aug 2012
  • 2. Our gateway to the world (10%) • 15,000 dairy farms in NL, D, B • Processing in 26 countries • Sales EUR 10 bn>100 countries • Leading consumer brands • Strong balance sheet
  • 3. Growing FrieslandCampina in a very, very dynamic environment
  • 4. Rabobank: global food system close to tipping point Key points: • The global food system has been brought to a tipping point, and the battle for agro-commodities will intensify • In the profound transition of the next 40 years, the F&A sector will need to double agro-commodity supply with access to only about half of the current land, water and mineral resources (Rabobank: ‘Rethinking the F&A Supply Chain: Impact of Agricultural Price Volatility on Sourcing Strategies’/ 27 Sept 2011)
  • 5. Piet Boer; Chairman of FrieslandCampina cooperative “I am expecting as a representative of our 20,000 member farmers – also shareholders – our company FrieslandCampina N.V. to deliver tangible results in three different areas:” 1. Return on Investment (RoI) 2. Continuity (we have a 130 yrs heritage) 3. Successfully embedding FrieslandCampina in the societies where we operate…. (So, stay aligned with stakeholders’ expectations)
  • 6. Strategy route2020: Growth & value creation Aspiration To bring the essential To be the most nutrients of attractive natural dairy dairy company to people for member worldwide farmers Value-drivers Dairy-based Infant & Branded Strongholds Foodservice Basic beverages toddler cheese & geographic in Europe products nutrition expansion (B2B, B2C) Benefit platforms Growth & Health & development Daily nutrition wellness Functionality Capabilities Talent Milk Business model management valorisation Innovation & cost focus Foundation The way Goodness Chain we work & of dairy advantages Sustainability safety
  • 7. What is the purpose of a company?
  • 8. FrieslandCampina CSR Strategy House CSR Mission and Vision FrieslandCampina CSR Business Case CSR Strategy, 4 priorities, KPIs Health & Sustainable Dairy Responsible Nutrition Value Chains Development Dairy Farming Combating obesity & Improving resource Helping farmers Setting the standard nutrient deficiency utilisation Africa, Asia company company company cooperative CSR Governance Board – 4 implementation teams CSR Performance Measurement – Annual Reporting – Stakeholder dialogue - Partnerships Employee & Dairy Farmer Engagement – CSR Training programs – Annual CSR Team Award Business Practices for Suppliers – Code of Conduct – Foqus – Policies & Position Papers
  • 9. Red Cross: supporting the relief aid program and raising funds • Brands link up to raise funds for Red Cross & 3FM SR • Making our nutrition expertise available to Red Cross • FrieslandCampina employees sponsor run
  • 10. External recognition of the sustainability efforts of FrieslandCampina Highest score in food category in Transparency Highest score food producer in MT Image Benchmark 2011 Dutch government (Min EL&I) monitor FrieslandCampina Dairy production fulfils Intensive cooperation with WWF requirements of Unilever SAC 10