Co-operative Entrepreneurship 2012 Jan Willem Straatsma Manager - - PowerPoint PPT Presentation

Co-operative Entrepreneurship 2012

Jan Willem Straatsma Manager projects and sustainable dairy farming 27-02-2012

We provide people around the world with all the good things milk has to offer

PAUZE

By nature, milk is one of the richest sources

• f food.

We process the milk, supplied by

• ur member dairy

farmers, into a wide range of dairy products.

Our milk

Our farmers

We are a multinational dairy company wholly owned by Zuivelcoöperatie FrieslandCampina

• 14,800 member farmers form one of the oldest

dairy co-operatives in the world, the owners of FrieslandCampina.

• Sustainable value creation for the members consists
• f milk price, capital payment and addition of

members’ reserves on name.

Our co-operative base

14,800 member dairy farms

A young company in name, but we have a long history

Governance structure

“I am expecting as a representative of

• ur 20,000 member farmers – also

shareholders – our company FrieslandCampina to deliver tangible results in three different areas:” Return on Investment

• 1. Continuity (we have a 140 yrs

heritage)

• 2. Successfully embedding

FrieslandCampina in the societies where we operate…. (stay aligned with stakeholders’ expectations)

Piet Boer Chairman of FrieslandCampina

The role of our co-

• perative

10 Collective valorisation Guarantee collective licence to produce Opportunities for competitive dairy entrepreneurs Farmers are fully guided by their co-

• perative

Classic co-operative Stay strong together Entrepreneurial differentiation Fully integrated Company Royal FrieslandCampina N.V.

Organisation

What we do

Consumers around the world Retail chains, wholesalers, local shops Professionals in the hotel, restaurant, café and bakery segments Food producers and pharmaceutical companies

Our customers and consumers

Branches in: Belgium Germany France Greece Great Britain Hungary Italy The Netherlands Austria Romania Russia Spain Saudi Arabia United Arab Emirates Ghana Nigeria China Philippines Hong Kong Indonesia Malaysia Singapore Thailand Vietnam United States of America Worldwide Ingredients

Our world of brands

Key figures

in millions of euros

movement

2009 2010

Results

Net revenue

8,972 8,160

+10%

Operating profit

434

258

+68%

Profit

285

182

+57%

Balance sheet

Total assets

5,299

4,770 Group equity

2,071

1,749

Ratios

Interest coverage ratio

10.0

6.2

Net debt / EBITDA

0.9

1.4 Solvency

39.1% 36.7%

Key figures

movement

2009 2010

Employees

Average number of FTEs

19,484 20,034

• 2.7%

Member farmers

Member dairy farms

14,829 15,329

• 3.3%

Members

20,375

21,062

• 3.3%

Milk

Milk supplied by members

8,821

8,685 +1.6% Total payment milk member farmers 10,266 10,755 +4.5%

21,2 12,3 9,1 9,1 8,8 8,3 7,4 6,9 5,3 5,1 4,3 4,1 4,0 4,0 3,9

Our position

2010 dairy revenue, in billion Euro’s

• 1. Nestlé -Switzerland
• 2. Danone - France
• 3. Fonterra - New Zealand
• 4. Lactatis - France
• 5. FrieslandCampina - Netherlands
• 6. Dean Foods - USA
• 7. Dairy Farmers of America - USA
• 8. Arla Foods - Denmark
• 9. Kraft Foods - USA
• 10. Unilever - Netherlands/UK
• 11. Saputo - Canada
• 12. Meiji Dairies - Japan
• 13. DMK - Germany
• 14. Sodiaal – France
• 15. Parmalat - Italy

Company Dairy revenue

Strategy route2020

Help people move forward in life with natural dairy nutrition To be the most attractive dairy company for member farmers

Aspiration Value drivers Benefit platforms Capabilities Foundation

Growth & development Daily nutrition Health & wellness Functionality Talent management Milk valorisation Innovation Business model & cost focus Goodness of dairy Chain advantages Sustainability The way we work

Our strategy Growth and value- creation

Dairy-based beverages IFT (B2B, B2C) Branded Cheese Foodservice in Europe Basic products Strongholds & geographic expansion

Profitability Member milk usage The objective of a business with no member milk is to generate profits above our EBIT hurdle The objective of our member milk intense businesses is to valorise milk at positive EBIT margins

We need to generate profit and valorise member milk

• Fundamental global need for healthy food
• Milk is one of the most nutrient-rich foods
• As a leading multinational dairy business, we aim to

contribute to sustainable production

• We want to show leadership in the field of Corporate Social

Responsibility by means of:

Development of dairy farming Asia, Africa Sustainable value chains More efficient use

• f natural

resources Sustainable dairy farming Sets the standard Health & nutritional value Tackling nutrient deficiency &

• besity

Sustainability

Global challenges ahead for dairy farming and processing sector

Growing world population Food security & food inflation Scarcity in natural resources Global warming Volatile energy markets Need for sustainable energy Obesity & malnutrition Nature and biodiversity at risk Sustainability

23

Key sustainability issues at the farm

The most pressing sustainability issue on the dairy farm are: 1) green house gas emissions 2) animal welfare 3) sustainable soy, 4) mineral balance (manure) 5) ammonia

25% udder problems 25% claw problems 20% of cows never outside Sustainable feed (soy usage) CO2 Methane Ammonia

Energy and climate Cow is key Biodiversity

Renewable energy Phosphate and Nitrogen Methane

Impact on water quality

Responsible Dairy Farming 5 modules

Cows in the meadow

Energy & Climate

Nature conservation, landscape (protect biodiversity)

Health & Welfare dairy cows

Phosphate (Minerals)

• 140 meetings with 6,000 farmers
• Pilot projects started mid 2011
• Action plan ready & agreed by member

farmers end of 2011

Open farm days: a pleasant way to show our transparency

• Hundreds of thousands of Dutch consumers are having a day out at our

dairy farms annually

• Picknick, guided farm tours, cuddle corner with calves, dairy product

taste sessions, children festivities and events, education about farm life and nature conservation

• Supported by our Campina dairy brand

26

This is what sustainable dairy farming brings

Larger access in the international dairy market

Improved sustainability

Maintaining appreciation

• f the dairy farms

Economically powerful dairy farms

Royal FrieslandCampina