Food security & malnutrition from a corporate perspective

Cees ‘t Hart

CEO Royal FrieslandCampina

The Hague, 12 October 2011

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

Our world of brands

Worldwide: Ingredients

• Belgium• Germany• France• Greece• Great Britain• Hungary• Italy• The Netherlands• Austria• Romania• Russia• Spain• United States of

America

• Saudi Arabia• United Arab

Emirates• Ghana• Nigeria• China• Philippines• Hong Kong• Indonesia• Malaysia• Singapore• Thailand• Vietnam

Branches in:

Key figures

Results 2010 2009 movement

Net revenue 8,972 8,160 +10%

Operating profit 434 258 +68%

Profit 285 182 +57%

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 milk processed 10,266 10,755 +4.5%

Authenticity and our heritage: we have a long cooperative history

Health & Nutrition

… all dairy products based on the goodness of milk

Proteins

Lactose

Milk fat

Minerals

Vitamins

Bio-actives

Growth

Vitality

Protection

Weight control

Health

Wellness

The challenge: How to feed and fuel 7-9 bn people sustainably?

FAO Food Price Index & FAO Dairy Price Index

Food commodity prices rise due to growing scarcity• Food prices still at a higher level than 2008:

risk of food riots• Sugar prices at 4 times higher level than 2002-’04 period• Dairy prices (trade) have doubled since 2002-’04 period

Rabobank: global food system close to tipping point

Sector challenges: the starting point of our sustainability program

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

To 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

Dairy-based beverages

Infant & toddler nutrition (B2B, B2C)

Branded cheese

Strongholds & geographic expansion

Foodservice in Europe Basic products

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

Growth and value-creation

Our strategy: route2020

Our CSR Mission: The purpose we serve with

Corporate Social Responsibility

Dairy Development

Helping 40,000 small farmers Asia,

W-Africa

Sustainable Value Chains

Improving resource utilisation

Responsible Dairy Farming

Setting the standard

Health & Nutrition

Combating nutrient deficiency

& obesity

There is a fundamental need in the world for nutritious foods. Dairy is one of the most nutrient-dense food stuffs. As an international dairy leader we aspire to demonstrate our commitment to responsible production and leadership in the CSR domain by providing:

companycompany company cooperative

Our efforts to contribute to food security

Program aimed at:

• Knowledge transfer via model farms

• Technical farm services & QA

• Higher productivity cows and farms

• Stable jobs and higher family income farmers

Dairy Development

Helping 40,000 small farmers Asia,

W-Africa

company

• 12 dairy cooperatives from West Java, Central Java and East Java which supply milk to local milk factory

• About 20.200 farmers are involved in those 12 cooperatives

• 52.000 dairy cows 3-4 cows/farmer

• Average production is 12 kgs/cow/day

Dairy Development on Java Indonesia

Our efforts to address nutrient deficiency

• Children nutrition survey conducted in Asia

• School milk programs in various countries

• Healthy eating and lifestyle education for children

• Small-size sachets condensed milk distributed

• Participation in international ‘Healthy Choices’ Program (less salt, sugar and saturated fats)

Health & Nutrition

Combating nutrient deficiency

& obesity

company

Seeking partnerships to create extra leverage

Partnering with Red Cross to create extra leverage

• combat hunger and nutrient deficiency for those in need• contribute to resolve food insecurity• strengthen the resilience of vulnerable communities

FrieslandCampina and the Netherlands Red Cross announce today their partnership to:

Thank you!