Introduction to the Dutch Sustainable Growth Coalition Tomorrow is green seminar Hanoi, 10 May 2016 Tomorrow is green Topics for today Introduction to FrieslandCampina and our purpose The Dutch Sustainable Growth Coalition Sustainability at FrieslandCampina 19,000 ambitious member farmers are the owners of FrieslandCampina FrieslandCampina: global player in dairy ‘From grass to glass’ 3rd largest global dairy cooperative ● Annual sales EUR 11.3bn ● 6th processor of milk globally with 11 bln kg milk/year ● 19,000 member farmers and 22,000 employees ● 80 Factories in 32 countries ● Sales in 100 countries ● Nourishing billion people all over the world with dairy products containing valuable nutrients Friesland Foods receives Royal designation on its 125th anniversary Acquisition of Zijerveld and Veldhuyzen B.V and G den Hollander Holding B.V 2020 Acquisition Olam Ivory Coast and DEK srl in Italy 2001 1993 1989 1979 1947 1926 1880 1871 Acquisition of IDB Belgium N.V 2014 2008 We have a long history… 2013 2012 Acquisition of Alaska Milk Corporation Philippines 2004 2001 Merger of Coberco, Acquisition Friesland Dairy Foods, of Nutricia Dairy & De Zuid-Oost-Hoek and Drinks Twee Provinciën Group 1997 Founding of Coberco in Zutphen 1965 Friesche Vlag, Dutch Baby and Bonnet Rouge are registered for international markets 1919 Founding of CCF in Leeuwarden 1913 1879 Founding of Arnhemse Melkinrichting Founding Campina Melkunie Nine farmers take over a cheese factory in the Dutch Wieringerwaard Oprichting van de eerste zuivelcoöperaties Founding of the De Meijerij Veghel / De Melkindustrie Veghel Campina brand introduced DMV Campina and Melkunie Holland introduced Acquisition of Sudmilch (Heilbronn) International launch of formation of international Campina brand and co-operative Our purpose Better nutrition for the world… ● Provide food for the growing population from to 8.5 billion people in 2030 ● Optimise nutritional value of our dairy products ● Provide affordable nutrition in selected markets …a good living for our farmers… ● Be an attractive cooperative for our member farmers ● Provide dairy development support in selected areas to increase yield, safety and quality of milk and farming ● Enhance attractiveness for young farmers …now and for generations to come ● Invest in the long term growth and health of the company ● Grow in a climate neutral way ● Reduce the usage of scarce natural resources The story of milk Topics for today Introduction to FrieslandCampina and our purpose The Dutch Sustainable Growth Coalition Sustainability at FrieslandCampina We are of initiators of Dutch Sustainable Growth Coalition The DSGC aims to drive sustainable growth along three lines:  Shape: connect economic profitability with environmental and social progress by integrated sustainable growth business models  Share: aim for joint advocacy of sustainable growth business models both internationally and nationally  Stimulate: Influence policy debate on enabling sustainable growth to find solutions to the environmental and social challenges 10 Topics for today Introduction to FrieslandCampina and our purpose The Dutch Sustainable Growth Coalition Sustainability at FrieslandCampina 13 Challenges of food and nutrition security De groeiende wereldbevolking Growing world population Enough farmers to produce food Scarcity of natural raw materials Common goal: Long term solutions to food and nutrition security in South East Asia 14 Our Strategy is locked into detailed action program Purpose Our unique milk chain Better nutrition for the world and a good living for our farmers ,now and for generations to come Leverage our Dutch dairy heritage and unique milk chain in a sustainable way to win the hearts and minds of our key consumers and customers Better nutrition for the world Good living for our farmers Now & for generations to come Strategic pillars Themes Better products Responsible marketing Transparent nutrition labeling Education on diet & exercise Optimal milk valorization Economic performance DDP quality & quantity DDP skills & knowledge Climate-neutral growth Source, produce sustainably Animal health & welfare Meadowgrazing + biodiversity Corporate governance, CSR implementation teams Business foundations Dairy Sustainability Framework, Stakeholder dialogue, partnerships, external reporting Health & safety, employee and member farmers engagement, CSR Training, Awards Product quality & safety, minimum standards, supplier code, business code of conduct Our CSR strategy in SEA is driven by Our vision: Nourishing by Nature Nutrition Drink.Move.Be.Strong SEANUTS New nutritional products through innovation Schoolmilk programs Farmers Dairy Development Program Sino-Dutch Dairy Development Centre Financing with Rabobank Foundation Sustainability Sustainable sourcing 2020 goal Energy and Supply chain efficiency 16 Multi-sector Collaboration to address challenges Retailers Govt Regulator Farmers Academia Consumers Food System Value Chain Logistics F&B compani es NGOs Distributors 17 17 Some of our partners in Asia and Vietnam Retailers Govt Regulators Farmers Academia Consumers Food System Value Chain Logistics F&B companies NGOs Distributors 18 18 Let’s take a closer look at some of our initiatives in South East Asia Drink.Move.Be.Strong campaign across Southeast Asia In partnership with: Inspired by: A partnership with a purpose… In 2015, over 200 schools joined DMBS in Vietnam Our message of healthy lifestyle and diet has reached more than 68 million children across Malaysia, Indonesia, Thailand and Vietnam - 21 - Our multi-stakeholder partnership has been recognized We won international awards in 2015 for our pioneering work in the region The Gold Standard Awards "Corporate Citizenship for Regional Programme 2015" FrieslandCampina Asia, Singapore Our healthy lifestyle and diet initiatives 2015 Asia-Pacific Gold Stevie® Award "Corporate Social Responsibility Program of the Year" FrieslandCampina Asia, Singapore Our healthy lifestyle and diet initiatives CMO Asia 5th Best CSR Practices Awards 2015 “Best Use of CSR Practices in FMCG” FrieslandCampina Asia, Singapore Our healthy lifestyle and diet initiatives 22 22 Our Dairy Development Program supports 45,000+ dairy farmers Dairy development program in Vietnam • Support over 3000 farmers • More than 35,000 cows • Intensive training program • Over 100,000 MT/year of high quality fresh milk • Sustainable Dairy Zone in Hanam Visiting FrieslandCampina President Truong Tan Sang said: “Building a new countryside of Vietnam is an important strategy of the State, and you have remarkable contributions to this cause.” 23 We target climate-neutral growth globally… Minimize use of natural resources • Energy efficiency improved 0.4% in 2015 • Water usage reduce 0.6% in 2015 • Green energy from 43% to 65% of total in 2015 • 4.3% lower Co2 emission per kg in production World class waste management • Waste recycling from 67% to 72% in 2015 Sustainable sourcing • Sustainable agricultural ingredients from 23% to 26% Valorize manure by circular means …and in Vietnam Water wastage processing system in our manufacturing facilities in Vietnam is able to treat domestic and industrial solid waste The amount of waste and water wastage has been reduced by over 25% in 2015 compared to 2010 We have reduced energy usage by 15%, water usage by 25% and CO2 emissions by 40 % compared to 2010 Recognized by our stakeholders in Vietnam Certificate of merit from the Minister of Natural resource and Environment 2016 Kickoff of the Green innovation award Vietnam Environment Award granted by Minister of Natural Resource & Environment in 2015 Agreement with Vietnam Environment Administration to develop year education program [...]... conditions for sustainable growth FrieslandCampina case on Manure recycling 11 DSGC driven by commitment from the Top 15 April 2016: FrieslandCampina CEO Roelof Joosten presents vision paper “Netherlands as Circular Hotspot” to Dutch Prime Minister Mark Rutte Topics for today Introduction to FrieslandCampina and our purpose The Dutch Sustainable Growth Coalition Sustainability at FrieslandCampina 13 Challenges... Citizenship for Regional Programme 2015" FrieslandCampina Asia, Singapore Our healthy lifestyle and diet initiatives 2015 Asia-Pacific Gold Stevie® Award "Corporate Social Responsibility Program of the Year" FrieslandCampina Asia, Singapore Our healthy lifestyle and diet initiatives CMO Asia 5th Best CSR Practices Awards 2015 “Best Use of CSR Practices in FMCG” FrieslandCampina Asia, Singapore Our healthy... development program in Vietnam • Support over 3000 farmers • More than 35,000 cows • Intensive training program • Over 100,000 MT/year of high quality fresh milk • Sustainable Dairy Zone in Hanam Visiting FrieslandCampina President Truong Tan Sang said: “Building a new countryside of Vietnam is an important strategy of the State, and you have remarkable contributions to this cause.” 23 We target climate-neutral