Arla Foods Bringing safe, sustainable high quality dairy products to the world

SHIFTING PARADIGMS

Raw milk deficit

Raw milk surplus

Since the 1880’s, dairy farmers have joined together to form cooperatives

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Q4 2009 2011 2012 2013 2014

Arla Foods

Milk Partnership

4

More farmers and colleagues have joined

http://www.progratorgatetrade.com/public/billeder/Logo/tholstrup.gif

Today, more than 13,500 farmers from seven countries own our cooperative Our mission: To secure the highest value for our farmers' milk while creating opportunities for their growth

A Northern European Dairy with strong

Scandinavian Roots

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13,500+

OWNERS

THE 5TH LARGEST

DAIRY & LARGEST

ORGANIC DAIRY In the world

MILK INTAKE 13,5+ BILLION KILO

19,000+ COLLEAGUES

73+ BILLION DKK

REVENUE PRODUCTS SOLD IN

100+ COUNTRIES

We will deliver our mission by following Strategy 2017

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Develop the core Deliver the growth Do it faster, simpler and leaner

As we grow so will our responsibility 19 January 2015 8

We ensure that our milk is of high quality

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Arlagården® ensures milk of high quality

Milk

composition

Food

safety

Animal

welfare

Environmental

considerations

We care for the environment

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Sustainable

agriculture

Greenhouse gas

emissions

Water

and energy

Food waste

and zero waste

Innovation as a Key Growth Enabler Our Current Innovation rate

above 10 % is strong, but we invest to keep up the pace

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Cooperation is key

to creating

the best results

The importance of Export to Arla Foods

Delivering The Growth

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CIN REVENUE in DKKbn

7.0 7.8 8.9 9.6

2010 2011 2012 2013

Target

18

2017

REVENUE GROWTH

9% IN 2013

NUMBER OF

EMPLOYEES

~2,000

SALES VOLUME

~300mkg

in 2013

KEY BRANDS

NUMBER OF

EMPLOYEES

1,986 IN 2013

CAGR 11%

CAGR 17%

http://www.google.dk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=O_M6QRHN_v3vgM&tbnid=mt98RCXBpMlmkM:&ved=0CAUQjRw&url=http://www.arlafoods.es/&ei=bhYOUvaKCcKItQahj4HoBQ&bvm=bv.50768961,d.Yms&psig=AFQjCNEOhZtuG8raLs7SMu2Bz3ckpIz0jQ&ust=1376741354641579

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7% Long-life liquid

Dairy products

58% Cheese

10% Butter and

spreads

24% Milk powder

1% Other

47% Rest of the

World*

9% Russia

34% Middle East

& Africa

11% TPM

1% China

Our sales split by categories and markets Share of net sales, 2013

*RoW/DS & North America

Consumer International’s ambition is to

BE THE PROFITABLE GROWTH ENGINE in Arla

• Double our position in Middle East & Africa

• Make China big and profitable

• Triple our business in Russia

• Pursue global leadership within TPM

• Further optimize value markets and create

1-2 new growth markets Deliver the growth

STRATEGIC AMBITION

Further optimise value markets* and create 1-2 new growth markets

4,0 4,1 4,1 4,2

2010 2011 2012 2013

6,1

2017

*RoW/DS & North America

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South East Asia, e.g.

Bangladesh

Philippines

Indonesia

Myanmar

Malaysia

Others, e.g.

Australia

Latin America, e.g.

Brazil

Mexico

Columbia

Dominican Republic

Shortlisting potential

new growth markets

CAGR 2%

CAGR 10%

Africa, e.g.

Ivory Coast

Ghana

Egypt

Libya

Nigeria

Senegal

East Africa

Our key enablers to win

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Good Growth

Milk wheel

Winning brands

NPD & ”Glocal” concepts

To implement it, we need:

• access to more raw material at competitive conditions

• a well-functioning home market

• access to growth markets at competitive conditions

We have a strong plan

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Kasper Thormod Nielsen Director Global Trade Policy & Regulatory Affairs kthon@arlafoods.com Arla Foods amba

Thank you for Listening

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