Informatics fueling innovation at FrieslandCampina R&D

Ruud Schoemaker, Pistoia Alliance, April 14th 2015

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19,000 ambitious member farmers are the ownersof FrieslandCampina

5

Six farmers founded the

first dairy co-operative

Nine farmers take over a

cheese factory in the Dutch

Wieringerwaard

Founding of CCF in

Leeuwarden

Friesche Vlag,Dutch Baby and Bonnet Rouge are registered for international markets

Founding ofCoberco in

Zutphen

Merger of Coberco, Friesland Dairy Foods,

De Zuid-Oost-Hoek andTwee Provinciën

Acquisition of Nutricia

Dairy &DrinksGroup

Friesland Foods receives Royal designation on its 125th anniversary

Founding of the first dairy co-operatives

Founding of the De Meijerij Veghel / De Melkindustrie Veghel

Campina brand introduced

DMV Campina and Melkunie Holland introduced

Founding Campina Melkunie

Acquisitionof Sudmilch(Heilbronn)

International launch of formation of inter-national Campina brand and co-operative

Acquisition ofAlaska Milk CorporationPhilippines

Acquisition ofZijerveld en

Veldhuyzen B.V. and G. den

Hollander Holding B.V.

Acquisition of IDB Belgium

We have a long history

Every day we nourishmillions ofconsumersaround the world

With our brands

Consumer Foodservice Ingredients

Debic

Hollandia

Campina Professioneel

Chocomel

Fristi

Milner

Vifit

Optimel

Campina

CoolBest

Nutroma

Taksi

Frico

Extran

DubbelFrisss

DOMO

DMV

Kievit

Creamy Creation

Nutrifeed

DFE Pharma

Campina NoyNoy Puddis Valess

Landliebe Chocomel FrisianFlag CoolBest

Rainbow Milli Peak Friso

Friesche Vlag Vifit Fruttis Completa

Napolact Alaska Mona Botergoud

Dutch Lady Foremost DubbelFrisss

Fristi Optimel Frico

Milner Yazoo Appelsientje

Using milk as a healthy basis

● Milk is a natural source of nutrition and provides nutrients for a healthy lifestyle

● Milk contains essential nutrients such as proteins, fats, vitamins B2 and B12 and minerals such as calcium

● Milk is suited to contribute to the right balance in all types of diet

Key figures 2013

employees21.18611.4 billion

euro revenue

30Facilities in

countries 100Export to over

countries

Millionsof consumers

member dairy farmersown the Company

19,244 Every day

In order to valorize milk

The objectiveof a business withno member milk isto generate profitabove our EBIT

hurdle

Profitability

The objective ofour member milk

intense businessesis to valorise

milk at positiveEBIT margins

Member milk usage

Ambition

Foundation

Growthcategories

Respond to needs

Capabilities

To create the most successful, professional and attractive dairy company for its member dairy farmers, employees, customers and consumers and for society by providing people around the world with essential nutrients from dairy products during every phase of their lives

Dairy-basedbeverages

Infant nutrition (B2B, B2C)

Strongholds & geographicexpansion

Brandedcheese

Food-servicein Europe

Basic products

Growth &development

Daily nutrition

Health &wellness

Functionality

Talent management

Milk valorisation

Innovation Business model& cost focus

Chainadvantages

Sustainable dairy farming & business operations

The way weWork & safety

Goodnessof dairy

And a clear strategy:route2020

Innovation Centre Wageningen

Innovation at FrieslandCampina

● 320 R&D employees

● 450 workstations

● Pilot plant (2,500 m2)

● Laboratories and taste testing

● Experience center, innovation kitchen and bakery

● State-of-the-art and sustainable building: BREEAM certified

Data within FrieslandCampina

FrieslandCampina Data sources

SAP (finance, factory, procurement, recipe management, “milk web” (farm, milk composition & quality), …)

Microsoft Office and SharePoint

±1600 Corporate applications

Bioinformatics infrastructure

Knowledge management infrastructure R&D

Data within FrieslandCampina

Data Size

Data heterogeneity

Summit(SAP)

ONE R&D Portal(SharePoint)

Bio

-IT

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Scope of project Summit

In scope

• Sales & distribution, finance• Production and Detailed Scheduling, Warehouse management, Plant maintenance,

Quality management• Procurement (including SmartBuy for non-product related procurement) • Demand planning, supply network planning (Sales & Operations Planning on opco

level)• Sales & Operations Planning on Enterprise level• Business Warehouse (including standard reporting and queries)• Current Opco scope / user group

Out of scope

Knowledge management within FC R&D

To empower the R&D community to use knowledge efficiently and effectively

From 56 to way of working

global R&D organisation needsknowledge sharing environment

It’s not only a new system

A new way to share information and to stimulate collaboration within R&D

“By sharing you will be more effective”

Sharing profile information

Openness vs ConfidentialityKnowledge sharing within R&D before and after ONE

Simply not shared

Tip of iceberg visible

Sharedknowledge

ConfidentialSecret

R&D knowledge sharing environment to capture and reuse our information and documents

The heart of knowledge management

Knowledge Data

Your experiments built into our data collection

The place where measurements, observations and analyses from e.g. lab, pilot plant, factory and simulation experiments are collected

Your part in our collaboration

The place where all project/collaboration documents are stored

Your publication brought to our attention

The library where all (end) reports are collected

Your gateway to our collective dairy knowledge

The place where scattered knowledge is integrated, summarized, completed with new findings and made accessible to the FC R&D community

Overarching knowledge

Experimental results

Translated to End-user features

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Termstore

Termstore entries are linked to the dairy ontology

● Components, Products & Processes

● Clustering allows for suggested content and expertise finding

5298 Experimental reports

366 d

airy p

rocessin

g t

em

rs

Original Doc Hit 1 Hit 2 Hit 3 Hit 4

X020712NIZOvisit.txt FFAO00.002inpreparation.txt PSSB00.038.txt BBBT00.017.txtCopyofWWLE00.002.txt

AAAA00.002inpreparation.txt TEST01.001inpreparation.txtSSSS00.001inpreparation.txt

CCYZ00.029inpreparation.txt

AAAA00.003inpreparation.txt

AAAA00.003inpreparation.txt SSSS00.001inpreparation.txtTEST01.001inpreparation.txt

AAAA00.002inpreparation.txt

BSPO00.001inpreparation.txt

ASEN01.0611.003.txtBSD.0511.003inpreparation.txt

FFBB00.001inpreparation.txt FAP.0310.004.txt PSSB00.004.txt

ASEN03.002.txt PPAA00.001inpreparation.txtLNA.0512.016inpreparation.txt CST2.0512.012.txt DDAT01.003.txt

ASEN03.003inpreparation.txt CFRR03.006inpreparation.txtCCGI00.031inpreparation.txt CMS.0312.001.txt

CFDC00.012inpreparation.txt

ASEN03.004inpreparation.txt COPE00.005inpreparation.txtCCEN00.035.txtCOPE00.003inpreparation.txt

COPE00.007inpreparation.txt

ASEN03.0607.001inpreparation.txt

DDAZ00.020inpreparation.txt DDPB00.005.txt DDPB00.009.txt DDPB00.016.txt

ASEN04.002inpreparation.txtFAH.0310.001inpreparation.txt

CVIT00.001inpreparation.txt

CSIM00.044inpreparation.txt

CPEE05.048inpreparation.txt

interfaces directly with FC’s bio-IT infrastructure: ODIN

The bioinformatics infrastructure:ODIN as central hub

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External partners FrieslandCampina

Worldwide 1.500.000 reseachers are active in

for our company relevant research domains

Bridging Filter company-relevant information

All (milk) ingredients are captured and described in detail in our bioinformatics

computer infrastructure

ODIN gives access to nutritional information…

…vitamin B12 in more detail

…biochemical pathways

…and much more

…information about bacteria used for

fermentation

Connecting data to the businessExample: Leap2 – Commercial application of Bioinformatics

Infant nutrition development

bioinformatics

Development of a low ß-lactoglobulinIFT product faster and better

Bioinformatics assisted, fast development

Conclusion

Validate

Visualise

Connect

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Acknowledgements

Dr. Hilmar IlgenfritzDr. Sascha LoskoDr. Klaus Heumann

Jan GeurtsUrszula KudlaRolf Bos

Ellen van LeusenChristel TimmerThijs GuldemondAndre Groeneveld

Wynand Alkema

Marleen HijlkemaPeter NavarroMartin Wijsman