Fan Milk Group Annual Report 2010

Annual Report Fan Milk Group

2010

2 FAN MILK GROUP | ANNUAL REPORT 2010

Providing fresh and frozen milk and juice products in West AfricaThe Fan Milk Group operates in seven West African countries. For more than 50 years, the group has produced and sold affordable frozen dairy and juice products directly to consumers through a unique street vending system. By persistent leadership and innovation, Fan Milk has adapted to the local environment and proven its business model is sustainable for long term growth. Over the years, the Group has created thousands of jobs and today employs 1,400 people and engages with 25,000 agents and vendors. The Fan Milk Group contributes positively to all stakeholders; shareholders, employees and the Societies in which we operate.

FAN MILK GROUP | ANNUAL REPORT 2010 1

2 Corporate structure

3 Vision, Mission and Values

5 Introduction

6 Consolidated financial highlights and key ratios

8 Management’s review 2010

12 Risk Management and Control System

16 Fan Milk Group – 50 years in West Africa

18 The progress and potential of African economies

22 Fan Milk and the potential of the West African region

25 Fan Milk in West Africa and beyond

26 In focus: Nigeria

30 Reference (pages 1-29)

32 Company information

33 Management’s statement

34 Independent auditor’s report

35 Group highlights

36 Management’s review

37 Income statement

38 Balance sheet

40 Cash flow statement

41 Accounting policies

45 Notes

48 Addresses

Contents

Financial statements 2010

The progress and potential of African economies


FAN MILK GHANA

EMIDANDENMARK

100%

100% 100%

100% 60% 80%55.45% 62.22%

FAN MILK INTERNATIONALDENMARK

FAN MILK NIGERIA

FAN MILK CÔTE D’IVOIRE

FAN MILK LIBERIA

FAN MILK TOGO

FAN MILK BENIN

FAN MILK BURKINA FASO


Fan Milk aims to be the leading dairy company in West Africa.

Fan Milk creates business development and profits for the benefit of all stakeholders by producing high quality Fan Milk branded products which are offered to consumers in West Africa.

We strive to: ensure professional management on all levels use world class dairy technology ensure high quality products by continued

recipe optimisation and quality control exercise financially sustainable business activities be good corporate citizens

Vision

Mission

Values


africa tomorrow

$477 billionWest Africa’s GDP in 2015

$1,476 billionSub-Saharan Africa’s GDP in 2015

1.1 billionWorkforce 2040

$1.4 trillionAfrica’s combined consumer spending in 2020

Two out of threeIn 2050, 68 per cent of the inhabitants in West Africa lives in an urban area

50 millionWithin 20 years, there will be 50 million more city dwellers in West Africa

50 per centThe number of households with discretionary income is projected to rise by 50 percent over the next 10 years

$313 billionWest Africa’s GDP in 2010

$1,024 billionSub-Saharan Africa’s GDP in 2010

550 millionWorkforce 2010

$860 billionAfrica’s combined consumer spending in 2008

One in threeIn 2010, one in three inhabitants of West Africa is living in an urban area

1 millionAfrica is almost as urbanized as China and has as many cities of 1 million people as Europe

20 per centAfrican countries devote about 20 per cent of their government spending to education; almost double that of the OECD countries

africa toDaY

Source and lay out: McKinesy Global Institute (2010). Lions on the move: The progress and potential of African economies.Other sources: www.imf.org (2010, October). United Nations Human Settlements Programme (2010). The State of African Cities 2010. UN-HABITAT and La Chronique (2009). Urban Growth in West Africa from Explosion to Proliferation. Centre Population & Development .


The Fan Milk Group had a good year in 2010, with strong top line growth and an improvement in underlying opera-ting margins, resulting in the Group’s best ever financial performance.

In 2010, Fan Milk passed the 50 year milestone in West Africa. Over the years, the Group has accomplished remarkable results in this challenging market. Without doubt Fan Milk has proven that it has a sustainable business concept and therefore continues to invest in this strong platform for growth.

Regardless of the achievements of recent years, huge market potential remains in West Africa as well as in the rest of Sub-Saharan Africa. After years of focus on the BRIC countries for high growth opportunities, the high growth rates in Africa in recent years have turned both the media and the global business community’s attention to Africa. Today, six of the world’s ten fastest-growing economies are based in Sub-Saharan Africa.

The growth potential in Africa in general and more specifically the market potential for the Fan Milk Group is the theme in our Annual Report.

On behalf of Fan Milk International, it gives me great pleasure to present our Annual Report 2010.

Preben SunkeChairman

Introduction

A strong platform for continuous growth

The growth potential in Africa in general and more specifically the market potential for the Fan Milk Group is the theme in our Annual Report


Figures in DKK ’000 2010 2009 * 2008 * 2007 * 2006

KEY fiGUrES

income statement

Revenue 772,143 633,361 634,287 569,471 521,558Index 148 121 122 109 100

Gross profit 437,935 368,664 332,157 287,222 273,701Index 160 135 121 105 100

Profit before depreciation, amortisation, etc. (EBITDA) 206,309 158,962 124,270 73,260 68,695Index 300 231 181 107 100

Operating profit (EBIT) 147,182 119,890 87,740 40,822 30,848Index 477 389 284 132 100

Net financials -10,253 -14,799 -23,174 -12,925 -13,863Index - - - - -

Net profit 97,359 76,346 48,725 10,710 32,174Index 303 237 151 33 100

Net profit, parent company’s share 61,348 48,935 32,519 2,748 27,528Index 223 178 118 10 100

Balance sheet

Total assets 539,715 418,304 372,097 388,377 402,633Index 134 104 92 96 100

Equity 326,124 227,739 170,560 140,812 212,054Index 154 107 80 66 100

Equity, parent company’s share 218,774 154,632 115,547 96,549 162,262Index 135 95 71 60 100

Dividends 2,542 3,239 2,639 39,013 11,472Index 22 28 23 340 100

Net interest-bearing debt -12,369 21,525 65,033 56,633 22,694Index - 95 287 250 100

ratioS

Profitability

Gross profit ratio 56.7% 58.2% 52.4% 50.4% 52.5%

Return on equity, consolidated 35.2% 38.3% 31.3% 6.1% 15.2%

Return on equity, parent company 32.9% 36.2% 30.7% 2.1% 33.9%

Return on invested capital (ROAIC) 52.3% 49.5% 40.5% 18.9% 26.3%

Profit margin 19.1% 19.0% 13.8% 7.2% 5.9%

Equity ratio 60.4% 54.4% 45.8% 36.3% 52.7%

* As 2009 is the first year in which consolidated financial statements are prepared, the comparative figures for 2008, 2007 and 2006 represent non-audited figures.

computation of ratios The ratios have been computed in accordance with the recommendations of the Danish Society of Financial Analysts:

Gross profit ratio Gross profit x 100 Return on invested Operating profit x 100 Equity ratio Equity, end of year x 100 Revenue capital (ROAIC) Average invested capital Total assets

Return on equity Profit for the year after tax x 100 Profit margin Operating profit x 100 Average equity Revenue

Consolidated financial highlights and key ratios


Strong performance in 20102010 was a year of strong performances across the Group and financial results were in line with expectations.

The consolidated revenue reached DKK 772m, an increase of 22 per cent compared to 2009. Profit margins were maintained at the same level as 2009 and as a result, operating profit (EBIT) increased by 23 per cent to DKK 147m.

The Group continues to invest in capacity enhancements and plans ahead to secure the future growth. Capital expenditure in 2010 reached DKK 101m; the highest level ever.

REVENUE

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Management’s review 2010

The strategic priorities for the Fan Milk Group are focused on delivering value to the benefit of all stakeholders through the achievement of sustainable, capital efficient and profitable long-term growth. Improvements in profitability will be achieved through high efficiency throughout the businesses while respecting our quality standards at all times. The strategic priorities will be built on the continued strengthening of our value chain and brand portfolio.

Fan Milk has a long value chain and the core business activities are production, distribution and sale of dairy products such as yoghurt, ice cream and chocolate milk, as well as juice and juice drinks in West Africa.

The Danish companies in the group focus on providing supporting activities, such as global sourcing, procure-ment and distribution of raw and packaging materials, business development assistance, consultancy services and management support. Within the Group we jointly pull together all the relevant resources combined with adequate external assistance in our various R&D projects. The most significant R&D project during 2010 was the development of FanDango, a juice drink that we have successfully introduced into our key markets.

In recent years, we have observed an increased global awareness on Africa. We know from our own work that the proclaimed development on the continent is factual and our vision about a brighter future for Africa, and West Africa in particular, is becoming a reality. Indeed, we are standing on a strong platform for continuous growth.

Results for 20102010 was a year of strong performances across the Group and financial results were in line with expectations.

The consolidated revenue reached DKK 772m, an increase of 22 per cent compared to 2009. In spite of increasing raw material prices towards the end of 2010 the profit margins were maintained at 2009 levels and as a result, operating profit (EBIT) increased by 23 per cent to DKK 147m.

Net financial expenses in 2010 were DKK 10m, compared to DKK 15m in 2009.

With an effective tax rate of 29 per cent, we ended up with a net profit of DKK 97m compared to DKK 76m last year. Minority interests’ share of the profit amounted to DKK 36m leaving DKK 61m for the Equity holders of the parent company.

The cash flow from operating activities was DKK 138m compared to 123m in 2009, which was positively affected by a 30 per cent increase in profit before tax and operating profit adjustments for depreciation of DKK 59m, compared to DKK 39m in 2009. This was partly offset by bigger inven-tories and net receivables due to increased overall activity.

The net cash outflow used on capital expenditure amounted to DKK 101m, up 24m on 2009. The major increases relate to upgrading and expansion of production facilities and distribution systems.

Togo Group 14%

2009: 15%Togo Group

10%2009: 10%

Liberia 1%

2009: 0%

Denmark6%

2009: 14%

Ghana48%

2009: 45%

Ghana64%

2009: 55%

Ghana

Nigeria

Côte d’Ivoire

Togo Group

Liberia

Denmark

Côte d’Ivorie3%

2009: 3%

Nigeria34%

2009: 37%

Nigeria20%

2009: 21%

REVENUE 2010 EBIT 2010

14%2009: 15% 10%

2009: 10%

1%2009: 0%

6%2009: 14%

48%2009: 45%

64%2009: 55%

3%2009: 3%

34%2009: 37%

20%2009: 21%

REVENUE 2010 EBIT 2010


GhanaIn 2010, Fan Milk celebrated 50 years of doing business in Ghana and delivered excellent business results, which on all accounts were a continuation of the strong long-term performance of the Company. Focus on the core products, commitment and dedication to excel in production, as well as in delivering products to the consumers demonstrated the strengths and skills of the Ghanaian team.

The performance on the Ghana Stock Exchange reflected the excellent results. The value of shares of the Company more than doubled during 2010 and at year end 2010 the Company had a market value of DKK 1,100m.

Entering into 2011, now as an oil producing country, Gha-na’s development is expected to accelerate. On this basis, Fan Milk continues to invest in order to increase capacity, streamline operations and achieve nationwide presence for the distribution of products as well as expected future market growth.

NigeriaFan Milk in Nigeria grew volumes in its milk products by 25 per cent, thanks to strong yoghurt brands, new innovation in flavoured milks and a more than 60 per cent growth in the ice cream segment. Meanwhile, the juice division ex-perienced a reduction in volume and income due to strong competition. A new market approach with franchisers rather than company managed depots contributed positively in broadening the number of consumers we reach with our street distribution. In response to the fast growing HORECA (Hotel, Restaurant and Catering businesses) and supermarket sectors, Fan Milk reinforced the supply chain and developed new successful products for these sectors.

Fan Milk Nigeria continues to face challenges, especially with erratic water and electricity supplies. The Company has the infrastructure in place to address the electricity supply situation. However, continuous operation of the back-up equipment increases the total cost of operation, especially when considering the price of diesel, which has increased by about 40 per cent over the past year. We have, however, experienced a continued positive development in other business variables. Interest rates keep falling and the country is experiencing a strong economic develop-ment that induces hope and optimism.

Due to the positive prospects and despite the infrastructural challenges, we decided to initiate a more aggressive expansion plan during 2010. We believe in the continued development of the Nigerian society and the market place it offers for our products. Fan Milk, therefore, continues to invest in capacity enhancements and increases in production and in market access. We expect to celebrate the Company’s 50th anniver-sary in 2011 on the back of a year of strong performances.

GHAnA M.DKK 2010 2009 2008

Revenue 375 285 240EBITDA 119 86 57EBIT 99 72 43EBIT margin 27% 25% 18%

nIGeRIA M.DKK 2010 2009 2008



Togo GroupThanks to relatively stable prices on raw and packaging materials and a balanced product portfolio, Fan Milk in Togo, Benin and Burkina Faso achieved excellent results for 2010.

Fan Milk Burkina Faso experienced a growth in turnover of more than 60 per cent thanks to the introduction of LAIT, a unique vanilla flavoured frozen milk product, and also due to an underlying positive economic development in the country that enabled Fan Milk to expand the sales and distribution force. In 2010, the Company achieved the best financial results ever and we are optimistically looking ahead to further accelerate growth in Burkina Faso.

In both Benin and Togo, Fan Milk managed to continue to grow the business in existing markets and by the end of the year, the Company had invested in a significant capa-city enhancement as well as a geographical expansion plan that is believed to be a good base for yet another record year in 2011.

Côte d’Ivoire (Ivory Coast)In Côte d’Ivoire, Fan Milk entered 2010 quite optimistic about the prospects for its activities. This market has its own challenges but these are now well understood and the re-development of sales outlets began in late 2009. However, two extraordinary challenges affected the busi-ness during the year. Firstly, a four month electricity sharing scheme that put most agents and sales outlets out of business and secondly, the disputed presidential election of 28th November 2010 which has put the country into a deep crisis. Despite the efforts of our team in the country, the year ended with negative economic results. The prospects for 2011 remain negative and Fan Milk in Côte d’Ivoire is focused on minimising the potential loss in the business.

LiberiaIn Liberia, Fan Milk faced many challenges during most of 2010 and we could not penetrate the market with any acceptable sales volumes until late December 2010. During the year, it was decided to recapitalise the Company in order to allow time to get things right. The team in Liberia has now found the right products for this particular market and combined it with a unique mobile sales outlet system. In this way, the business is expected to sustain itself in 2011.

The strategic priorities for the Fan Milk Group are focused on delivering value to the benefit of all stakeholders through the achievement of sustainable, capital efficient and profitable long-term growth

toGo GRoUP M.DKK 2010 2009 2008



Corporate Social ResponsibilityFan Milk is determined to operate in a responsible manner and firmly believes that long-term profit and existence are linked to the way in which we do business, our respect for people and the environment.

Fan Milk is committed to conducting its business in a transparent as well as socially and environmentally responsible manner. In this regard, Fan Milk operates in accordance with the relevant laws of the countries, in which we operate and if no relevant local law exists, we will strive to comply with international standards and Danish laws.

Fan Milk wishes to continue to promote and develop its Corporate Social Responsibility with respect to human rights, social matters, environment and climate matters and the combating of corruption. Fan Milk, therefore, reaffirmed this commitment in 2010 by signing up to the UN Global Compact.

Fan Milk International advises all subsidiaries and relevant business partners of its policy and association with UN Global Compact. Furthermore, all Fan Milk subsidiaries are advised to adapt and implement the declaration and the policies within their local sphere of influence.

Specific policies, including The Ten Principles of The United Nations Global Compact, have been defined for human rights, labour rights, occupational health & safety, environment & climate and anti-corruption and can be found on our website www.fanmilk.com.

Fan Milk International has also published the first Communication on Progress report to UN Global Compact, and it can be found on our website www.fanmilk.com.

Jens Jørgen KollerupManaging Director


The Fan Milk Group operates in growth markets in West Africa which on the one hand offers high growth and earnings potential, but also implies various market risks


Risk Management and Control System

Structured risk management approachThe Fan Milk Group operates in growth markets in West Africa which on the one hand offers high growth and earnings potential, but also implies various market risks.

Fan Milk has many years of experience operating under such conditions, and our approach to risk management is and has always been as important as growing and operat-ing the business.

The Fan Milk Group risk management and control approach aims to ensure that the risks of the company are identified and managed, and that the operational and financial objectives are met in compliance with the applicable laws and regulations with a reasonable level of assurance.

Business planning and performance monitoringThe main pillars for Fan Milk’s internal governance activi-ties are annual business planning and running performance monitoring processes. Operating companies’ strategies, business plans, key risks and monthly performances are discussed with local management. The approved business plans include clear objectives, key performance indicators and target setting that provide the basis for monitoring performance against the business plan. These plans also contain an annual assessment of the main risks, mitiga-tions and financial sensitivities.

Internal controls in operating companiesInternal control procedures are in place in all operating companies. The main focus of the internal control func-tions is to unveil possible fraud and system malpractices.

Besides having formalised audit committees at board level, the larger companies also have internal audit de-partments while the smaller companies are being audited by a combination of regional internal auditors and internal audit from Fan Milk International.

The level of internal controls is determined locally, based on the annual risk assessment review and is structured in a framework containing key control activities that as a minimum must be performed.

The objective of the control activities is to ensure that the business processes and financial reporting process comply with the adopted framework in order to prevent, detect and correct errors in due time. The control activities com-prise both manual and automated controls.

Finally, integrated management systems are an important tool for management for control monitoring purposes.

Financial reporting and monitoringLocal financial reporting follows local requirements whereas group reporting follows a set of group account-ing policies. There is a clear link between local and group financial reporting.

Monthly financial reporting is analysed and monitored by local controllers and management, and consolidated data is analysed by the finance team of Fan Milk International.External internationally recognised auditors also provide additional assurance on true and fair presentation of the financial reporting at the operating company level. Within the scope of the external auditors’ financial audit assign-ment, they also sign off the group financial reporting and report on internal control issues through management letters.


Main risksIn order to optimise the Group’s main objectives Fan Milk works on a structured and long-term process with an attempt to manage all possible risks.

Fan Milk’s main risks are described below.

Strategic risksThe Fan Milk brand and company reputationAs the Fan Milk Group, its companies and the brand all carry the Fan Milk name, reputation management is of the utmost importance. The Fan Milk Group, and in parti-cular its operating companies, currently have a strong and positive corporate reputation with authorities and other stakeholders due to the professional manner in which we conduct our business. Constant management attention is directed towards enhancing Fan Milk’s social, environ-mental and financial reputation. The Fan Milk brand is our most valuable asset and anything that adversely affects consumer or stakeholder confidence in the Fan Milk brand or companies could have negative impact on the overall business.

Company reputation, brand image and revenue could be negatively affected by product integrity issues. There-fore, the entire supply chain is subjected to high quality standards and intensive monitoring procedures to secure product integrity and quality in accordance with interna-tional standards.

Fan Milk also invests considerable resources in activities that drive sustainability and support to the companies’ reputation.

Volatility of the markets in West AfricaThe markets in West Africa can be characterised as emerging markets and Fan Milk is constantly exposed to changing economic, political and social developments beyond our control, any of which could adversely affect our business.

But 50 years’ of experience based on strong local partner-ship has given us the ability to operate and develop our business successfully also during periods of economic, political or social change.

Having four production facilities in four different countries has also proved to be helpful in times of instability in one or more countries in the region.

Recently, we have found that the West African markets have become more stable and transparent. There is more focus on creating a good business environment and on educating the young people in the region and we foresee a continued positive development in these areas.

Volatility of input costsPricing strategies are top priority in all markets and price changes have an immediate and direct impact on sales.

Consolidated group purchasing leverages Fan Milk’s abil-ity to make use of flexible contracts and active hedging. Such economies of scale minimise the impact of increases in input costs, and maximise the opportunities for cost reductions and better commercial terms.

In 2010, a total of 70 per cent of input costs was covered via group managed contracts. In previous years, our hedg-ing strategy provided an effective shield against peak prices and similar strategies are now helping to secure future supplies in a cost effective way.


Operational risksSupply continuityDiscontinuity of supply of our products could affect revenue and market shares.

Constant production flow depends on timely and cost-effective supply of production materials, most of which are globally traded commodities. In order to protect ourselves against negative price fluctuations on commodities, we have centralised the majority of the group procurement and logistics through the Danish company Emidan. Procedures are in place to monitor short- and long-term raw material demand forecasts and these are used to facilitate the forward-buying of traded commodities to reduce future volatility of commodity costs. Furthermore, procedures to monitor stock levels are in place enabling the Group to secure timely arrival of produc-tion materials from suppliers around the world to destination ports in West Africa.

As we are also very conscious of the quality of our prod-ucts, we set high quality demands on our suppliers, both on the quality of the products supplied but also on the way our suppliers conduct their business. We have a high degree of self-control and we carry out control visits at selected suppliers’ and inspection of goods prior to ship-ment by professional auditing companies.

We have contingency plans to enable us to secure alterna-tive key supplies at short notice, to transfer or share pro-duction between manufacturing sites and to substitute raw materials in our product formulations and recipes.

In the operating companies, we have programmes of regular preventive maintenance for key lines and production sites.

We regularly undertake improvement programmes to identify cost benefit opportunities in direct and indirect costs. We benchmark internal product and service costs and regularly model our production, distribution and ware-housing capability to optimise capacity utilisation and cost.

Financial risksCurrency risksFan Milk operates internationally and reports in DKK (Danish Kroner), which is tied to the Euro. The XOF (West African CFA franc) in Togo and Côte d’Ivoire is also tied to the Euro and the risk involved is therefore limited. Currency fluctuations relating to the GHS (Ghana Cedi) and the NGN (Nigerian Naira) can materially affect the overall company results, particularly because these are the two major markets of the Group.

Fan Milk has a stringent policy of hedging transactional exchange risks wherever possible.

Capital availabilityFan Milk focuses on cash generation to optimise growth and to improve financial ratios. Fan Milk also focuses on ensuring sufficient access to capital markets to refinance maturing debt obligations and to finance long-term growth. Financing strategies are under continuous evaluation. Terms and conditions of additional refinancing may be impacted by the changing credit market conditions. Strong cost and cash management and strong controls over investment proposals are in place to ensure effective and efficient allocation of financial resources.

The Fan Milk Group is in close dialogue with financial part-ners, and strong equity financing helps to resist possible fluctuations in financial risks.


fan milK GroUP

50 years in West AfricaA strong platform for continuous growth

HistoryMany years before the current intense focus on business opportunities in Africa, Danish entrepreneur Erik Emborg saw the potential in combining foreign market opportunities with Danish know-how in dairy science and technology. The first Fan Milk operation was established in Ghana in 1960, and by introducing a unique system of distributing dairy products on bicycles equipped with cool boxes, Mr Emborg had laid the foundations for a successful business that has continued expanding into other West African countries.

Business conceptToday, more than 50 years later, Fan Milk operates in Ghana, Nigeria, Togo, Benin, Burkina Faso, Côte d’Ivoire and Liberia and offers unique frozen dairy products, juice and juice drinks to a total population of more than 200 million people.

Fan Milk’s business concept is based on a long-term commit-ment on the African continent and on persistence in gaining knowledge of the West African cultures and markets.

Fan Milk’s business relies not only on the operating com-panies’ ability to build and maintain customer loyalty, but also on the combination of a unique distribution system and high-value-for-money products that make the companies strong players in markets where both distribution and pro-ducts accommodate the customers’ needs for affordable and accessible high quality products. Furthermore, the Fan Milk business concept enables us to reach customers everywhere with great success.

An estimated 25,000 independent agents and vendors are involved in the day to day sales activities.


Value chainThe Fan Milk business concept is made possible through control with the value chain; from cost effective centralised global sourcing, procurement and logistics, to the high-technology operations and production in the factories in Ghana, Nigeria, Togo and Côte d’Ivoire, to the unique and efficient distribution system that provides products to the end consumers in West Africa.

The Fan Milk brand and consumersThe West African market place has its own sophistication and over the course of time, Fan Milk has developed core competencies in operating in this market. This entails providing high quality products in serving size plastic sachets or cartons directly to the end consumer by means of bicycles and push carts etc. This unique approach has proven successful in reaching the West African consumer and the Fan logo and its association with high quality products are the foundation for the expanding loyal consumer base.

EmployeesThanks to the efforts and dedication of our employees, the Group has grown successfully throughout the years.

Every day, 1,400 dedicated employees contribute to Fan Milk’s success. Everyone contributes with his or her individual skills to the benefit of the individual as well as the company. For many employees, the internationally recognised Danish expertise in dairy technology, quality and hygiene, creates a strong foundation for their dedica-tion while others are attracted by terms as leadership, management or commercial expertise. Fan Milk welcomes all such skills and therefore also supports further develop-ment of our employees.

A strong platform for continuous growthAfter more than 50 years of doing business in West Africa, Fan Milk knows its value proposition. Nevertheless, we continue our work to understand and develop our core competencies, and to improve the production and distri-bution of high quality and affordable refreshments to the West African consumer. In recent years, our financial per-formance has shown high and stable growth, proving the value of our overall business model and creating a strong platform for continuous growth in the region and beyond.

inBoUnD loGiSticS ProDUction DiStriBUtion SalES & marKEtinG

ValUE chain

We sell more than 20 products every second of every day


The progress and potential of African economiesThe Africa of 2011 is much stronger and its increasingly diversified economy makes for a more stable future growth


The progress and potential of African economiesDuring much of the postcolonial history, economic growth in Africa has been stagnating. The only exception to this was a period of growth in the 1970s during the oil boom, but the growth slowed during the next two decades as oil and other commodity prices collapsed.

In the late 1990s, things started to change. Propelled by a surge in global commodity prices the African economies embarked on a decade of high economic growth. In 2009, Africa’s GDP reached USD2.2 trillion which is on a level similar to that of Brazil and Russia. Projections for 2011 show an estimated GPD growth of 5.5 per cent which is more than twice its pace in the 1980s and 1990s1.

So what makes this recent boom in economic growth dif-ferent from that of the 1970s?

While it seems obvious that global demand for commodi-ties sparked the high growth of the last decade, one could argue that government actions to end political conflicts played an even bigger part.

In recent years, Africa has experienced a wave of democ-ratisation, resulting in a transition to, or strengthening of, multi-party politics and elections across the continent. As part of this process, landmark elections have recently taken place in Burundi, Democratic Republic of the Congo, Liberia and Sierra Leone, while other African nations have gone through second, third or even fourth periodic rounds of national elections16.

Although recent political transition in Africa has generally been swift and relatively successful, it is also clear that building truly sustainable democracies takes time. Never-theless, Africa is on the way to create a sustainable political situation and many countries have already shown the rest of the world that they are able to embrace democracy16.

With improved governing follow improved macroeconomic conditions, a better business climate, optimism, international outlook and participation in the ever increasing globalisation.

Global demand for commodities is still high and with China being a significant and growing consumer there are no signs of a slowdown.

The development in communication and the IT revolu-tion opened the eyes of Africa to the world. In fact, from an African perspective, it has been a quantum leap that within a year or two communication technologies became available to practically everybody.

Furthermore, a decade of growth and increased political stability has provided the economic resources and given time to develop other sectors of the African economies. Recent studies show that sectors such as retail, agricul-ture, transport and telecommunications are growing at the same rate as that of natural resources.

The Africa of 2011 is, therefore, much stronger and its increasingly diversified economy makes for a more stable future growth.


Foreign Direct InvestmentsInternationally, Africa was once viewed as the lost con-tinent. The recent economic growth and improvements in political stability however drive hope, optimism and possibilities. The international community has started to take notice and the interest for doing business in Africa has been revitalised.

Building an efficient infrastructure is another factor instrumental for growth of the economy. Both the African governments and private investors have realised this and as a consequence, the combined annual spending across the continent is more than ten times that of 20008.

The fundamentals for attracting Foreign Direct Invest-ments are, therefore, in place and the momentum is strong and relates to most sectors.

Social and demographic trendsOther important factors in securing future growth are the availability of a capable workforce and ultimately an increased economically empowered population.

Africa is currently experiencing the world’s fastest urbani-sation rate, and is showing no signs of a slowdown. That, combined with a high population growth means that the work force is expanding more than anywhere else in the world. At the same time, the African governments are

beginning to invest a relatively high proportion of their budgets on improving education.

If the African countries continue to focus on health and education and thereby providing their young population with the education and skills needed, this large workforce could account for a significant share of both global con-sumption and production.

The increased global focus on AfricaToday, collectively Africa ranks amongst the fastest growing economies in the world and six of the world’s ten fastest-growing economies are in Sub-Saharan Africa7. The historical importance of natural resources is still key to the future growth but African economies are also in the midst of a transition period where other sectors are starting to contribute significantly to the growth. This is expected to lead to a more stable economy with a greater chance of long-term growth.

After years of focus on the BRIC (Brazil, Russia, India and China) countries for high growth opportunities both the media and the global business community’s attention has turned to Africa. There is no doubt that Africa has the potential to show extraordinary growth and economic development for many years to come.

Today, collectively Africa ranks amongst the fastest growing economies in the world and six of the world’s ten fastest-growing economies are in Sub-Saharan Africa

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Source: IMF, World Economic Outlook Database, October 2010

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wESt africa

Fan Milk and the potential of the West African economies

Collectively, the economies in West Africa have potential to continue growing their economies at a fast pace. In particular this is the case for Nigeria and Ghana, due to a positive political context that has maintained a control-led economic framework. Fan Milk’s ability to understand and adapt to many of the local markets in West Africa has evolved over a long period of time. By persistently applying the most modern leadership, logistic and produc-tion techniques, Fan Milk continues to thrive as a market leader with an approach that transcends differences in countries and local cultures seen as a key element in securing long-term success.

At the same time, Fan Milk adjusts to the local environ-ment by having the right aptitude to analyse consumer preferences, working mentalities, logistics and special behaviour specific to the area or country. This uncompro-mised combination of skills has driven Fan Milk to great lengths in West Africa and formed a strong basis for further expansion.

Fan Milk has established manufacturing companies in Nigeria, Togo, Ghana and Côte d’Ivoire while sales and distribution companies cover the markets in Benin, Burkina Faso and Liberia. The major driver for the expansion via sales and distribution subsidiaries has been the establishment of ECOWAS (Economic Community of West African States) and UEMOA (Union économique et monétaire ouest-africaine or in English; West African Economic and Monetary Union). The purpose of these communities is to promote economic integration across the region and they have enabled Fan Milk to offer its products to a major part of the West African consumer base. The following is a brief description of each of the countries in which Fan Milk is present.

NigeriaNigeria has a population of approximately 155 million people1. Its eco nomy is large and growing with well-developed financial, legal, communication and transport sectors. It is ranked 31st1 in the world in terms of GDP which is largely dependent on oil and gas. The Nigerian manufacturing sector is the second largest on the continent17 and produc-es a large proportion of goods and services for the West African region. Domestically, Nigeria offers increasing market opportunities especially within the growing and increasing economically empowered population. Nigerian GDP at purchasing power parity has grown substantially from USD245bn in 2005 to USD374bn in 20102, and is now equivalent to more than USD2,400 per capita.

West Africa is a region of great economic potential comprising a large consumer base, vast natural resources both on and off-shore, and with abundant agricultural potential

GDP per capita (PPP) US dollar

0

400

800

1,200

3,600

1,600

2,000

2,400

2,800

3,200

Nigeria

Source: IMF, World Economic Outlook Database, April 2011

Togo

2006 2009 2012 2015

Ghana

Côte d’IvoireLiberia


Nigeria is facing several infrastructural challenges such as poor electricity and water supply and inadequate trans-port facilities.

Fan Milk has operated in Nigeria since 1961 and due to continuous focus and patience, the Company has established itself with a strong brand and is a well-known professional in the Nigerian business environment and amongst officials. Currently, Fan Milk implements a wide-reaching corporate social responsibility program for its employees as well as for its suppliers. This will further enhance Fan Milk’s status as a sound and proficient long-term business entity in Nigeria.

Fan Milk sees more market opportunities in Nigeria. The large population and the current market coverage leave room for strong growth during the coming years. In ad-dition, the Nigerian economy currently grows by around 7 per cent annually2. Urbanisation rates are high and by 2020, Lagos’ population will have gone up by 50 per cent9. Furthermore, there are at least eight more cities in Nigeria with more than 1 million inhabitants which are expected to grow at the same rate as Lagos.

Foreign Direct Investments in Nigeria was USD1.4bn in 2001 and hit USD11bn in 200911. The combination of closer political and financial ties with the outside world, high urbanisation rates and strong consumer demand makes Nigeria very attractive to investors.

GhanaGhana has become one of the growth engines in the region. In recent years, the country has developed into a stable and forward looking democracy, offering inves-tors a diversified and attractive investment climate. The economy remains largely dependent on cocoa and gold exports, but the production of oil has started. No doubt it will boost the economy over the forthcoming years. The first private power generation company, a joint venture between Chinese and Ghanaian investors, is expected to break the current monopoly and deliver to the national grid in 2011. The consumer base in Ghana is showing different signs of strong growth. For instance, in 2009, MTN mobile phone subscribers increased by 24 per cent to 8 million12, indicating solid spending power amongst consumers. Ghana is expected to grow the national economy by 10 per cent in 20112.

Ghana is Fan Milk’s most important market. Since 1960, Fan Milk in Ghana has played an important role in the market with its unique products and now enjoys very strong brand recognition. Products are distributed in all major cities and widely across the country. Fan Milk is in a strong position to respond to increased demand and to develop the product portfolio to cover new consumer trends. Fan Milk in Ghana has covered appreciable ground in corporate social responsibility, supporting organisations within health, agriculture and education. Together with a powerful business presence, Fan Milk holds a very strong operational platform in Ghana both for the present and for the future.


Togo, Benin, Burkina Faso This group of smaller countries in West Africa expects growth rates between 3.5 per cent and 5.4 per cent in 20112. All countries are French speaking and enjoy the membership of UEMOA, which provides the FCFA; a stable Euro linked currency as well as a well-functioning common market. Besides having a relatively well func-tioning infrastructure, the countries have various natural resources, agricultural potential, stable consumer bases and the potential for developing tourist industries. These countries have not yet entered a real economic expansion phase and rely on further political transformation in order to attract a Foreign Direct Investment level that will actu-ally spark higher growth. However, the three countries will benefit from the expanding economic development in neighbouring Nigeria and Ghana.

Fan Milk’s presence in these countries started in Togo in 1985. The geographic location and stable operating condi-tions forms an ideal base for Fan Milk’s manufacturing plant for the three countries which are all supplied from Fan Milk Togo. Availability of power and water is constant and easy distribution across borders is made possible not only by the efficient market created by the UEMOA agreement but also by Fan Milk’s long-term presence and stringent operational procedures. Therefore, Fan Milk sees further market potential particularly due to the population growth and by widening the product portfolio.

Côte d’IvoireUnfortunately, Côte d’Ivoire has not been able to benefit from positive trends in recent years due to political insta-bility. This unfortunate scenario has been challenging for all business activities and several businesses have closed down and pulled out of the country and the economic development is negative.

Fan Milk is established in the country but reaches only a minor part of the potential market. Fan Milk, however, has all the right reasons to maintain its operations in Côte d’Ivoire; in time, political stability will return and economic growth will follow. We will then have a great advantage of still being present in the market.

LiberiaA second cluster of countries in West Africa is made up of Liberia, Sierra Leone and Guinea Conakry. These countries have been politically stable for only a few years following civil wars, serious political instability and severe corruption. Their political status remains weak and fragile, but the potential for developing strong economies is apparent. Their vast resource base, favourable climate and access to sea transport make them attractive to foreign investors. Liberia is one of the fastest growing countries in West Africa, already growing 6 per cent in 20101 and is expected to reach growth of 9 per cent in 20112.

Fan Milk decided to invest in Liberia in early 2009 and the operation in Monrovia is growing steadily. Fan Milk has established its presence in the market and by continuing to distribute efficiently and consistently, it will be possible to establish a brand name. The size of the market in Mon-rovia only justifies a sales and distribution set up based on imported products from Fan Milk’s Togo plant.

When looking at this part of West Africa it is relevant though to consider joining the market of Liberia with that of Sierra Leone and Guinea Conakry. Together, they com-prise a population of 20 million people which is adequate to justify an efficient production plant shared among the three. The ideal location is envisaged to be Monrovia.


Fan Milk in West Africa and beyond

Our annual report 2010 testifies the continued growth and development that Fan Milk has created over the past five years. The results have been made possible partly by the positive changes throughout Africa - not least in the region where Fan Milk operates - as well as our patience, persistence and professional leader-ship throughout the Group.

We are, therefore, optimistic regarding the future growth prospects for Fan Milk. Not only do we see potential in our current markets where we continue to invest in our operations to ensure that we capture our share of the growing market, but we see other countries and regions in Africa reaching a stage where we can take advantage of the opportunities that continue to be created. Fan Milk has been thriving because we have taken first-mover advantage in the past.

fan milk is well positioned and structured to also take part in the development of new markets in the years to come.


Today, Nigeria emerges as a politically more stable and forward-looking country with huge but yet untapped potential for development


Nigeria

After years of colonial rule, independence drove change in Africa in the 1950s and 1960s. Nigeria gained independence from the British Empire in 1960 and became a democratic country. Rightfully nicknamed The Giant of Africa, Nigeria is recognised for its size, diverse population and wealth of natural resources.

Despite big expectations and much hope after the independence the nascent democratic process quickly suffered setbacks involving military interventions in the nation’s politics. People were still enjoying the newly gained feeling of freedom from the British rule when the first military coup happened in January 1966, marking the beginning of political instability which culminated in civil war, known as the Biafra war.

The incessant military interventions, of course, have had a significant impact on the Nigerian history, as these have affected not only the political development but also handicapped the socio-economic development of the en-tire nation. Nevertheless, Nigeria has been and remains a leading nation in Africa having fought Apartheid in South Africa, facilitated the independence process in Zambia and contributed to stabilise war-torn countries like Sierra Leone and Liberia.

With approximately 155 million inhabitants, Nigeria is the most populous country in Africa. The country shares borders with Benin to the west, Chad and Cameroon to the east, Niger in the north and Gulf of Guinea in the south. Nigeria operates a federal system of government with 36 states and a federal capital Abuja, the adminis-trative capital of Nigeria. It was established in 1991 when it was made a separate entity and the federal govern-ment moved out of Lagos. Lagos, however, remains the economic centre of Nigeria.

Today, Nigeria emerges as a politically more stable and forward-looking country with huge but yet untapped po-tential for development. Democratic values are strength-ening and a peace process has recently been established in the oil-rich Niger Delta. The growing population is de-veloping into a very promising consumer base and inter-

national investors look at Nigeria as an opportunity rather than a threat. Nigeria has been receiving high Foreign Direct Investments because of its huge growing market and seemingly increasing political stability. Particularly, the phenomenal growth of mobile phone businesses shows that Nigeria is emerging as a modern nation.

This, however, does not diminish the fact that doing busi-ness in Nigeria continues to be challenging. Excessive and overlapping administration in many government agencies, endless traffic jams and daily power outages test the patience of residents and visitors alike.

Important growth sectors Even though oil extraction began in the early 1960s the oil industry only became the over shadowing economic factor in the Nigerian economy in the 1970s, when the first and second global oil crisis fuelled the Nigerian economy through extreme energy prices. Today, oil and gas remain the corner stone of the Nigerian economy counting for more than 80 per cent of national revenue13. The inflow of oil money from exports has in many ways helped the Nigerian economy grow but the real positive impact has yet to materialise as corruption and local unrests currently undermine the real potential of the in-dustry. The oil export has lead to a constant overvaluation of the Nigerian currency, leading to uncompetitive export prices for agricultural and industrial products. However, the oil wealth makes it possible for Nigeria to remain a driving force for the African continent.

Besides the oil industry, there are other growth sectors in Nigeria. All of these are closely linked to domestic con-sumption which is the backbone of the Nigerian economy. The following sectors deserve specific focus as they are currently performing very strongly and are expected to show continued growth in the coming years;

Consumer goods

Information and Communications Technology (ICT)

Infrastructure

niGEria at a GlancEPopulation 155 million

Urban population 48 per cent

workforce 48 million

Ethnic groups 250

GDP per capita (PPP) USD 2,400

Source: CIA World Fact book

in focUS


Consumer goodsNigeria’s consumer goods sector is attracting a variety of large and medium size investors. Long seen by many investors as too politically risky and impoverished, Nigeria is now seen as a country with a huge potential for growth and one of the first places in Africa to invest in the con-sumer goods sector. For example, international breweries are investing in existing Nigerian companies and thereby expanding their capacity in Africa’s second largest beer market. This trend is persistent with what many other multinationals are doing in Nigeria.

Larger cities like Lagos, Abuja, Kano, Port Harcourt, Ibadan and Enugu are the key locations to find strong consumer spending power. Furthermore, Nigeria has a large and growing young population – estimated at about half of the entire population – making the consumer goods industry very attractive. The sector grew by 16 per cent in 2008 reaching a total value of USD884m10.

In recent years Nigeria has experienced high growth in GDP per capita on a purchasing power parity basis (PPP). As a measure for relative purchasing power this indicates that the Nigerian consumers have more money to spend which subsequently increases demand for consumer goods.

Information and communications technologyBy deregulating and removing Nigeria National Telephone Company’s monopoly in 2000, Information and commu-nications technology (ICT) emerged as a key facilitator for economic growth. The country has, therefore, spared no effort to overcome obstacles to build a comprehensive ICT infrastructure to fully capitalise on its economic benefits. These efforts include liberalising and privatising the indu-stry, issuing unified licenses, and collaborating with foreign governments.

The use of the internet has increased from 0.2 million users in 2000 to 23 million users in 200914. Despite this remarkable growth the market still has enormous potential and investors have great opportunities in areas relating to hardware, software and services.

The growth in the use of mobile phones is even more impressive. Nigeria has overtaken South Africa to become the continent’s largest mobile market with over 85 million subscribers15. The access and use of mobile phones is easier and cheaper compared to internet access, but still provides extensive opportunities for accessing information, for transferring money and of course for communicating.

GDP per capita (PPP)

0

500

1,000

1,500

2,000

2,500

2006 2007 2008 2009 2010

US dollar

Source: IMF, World Economic Outlook Database, October 2010

The use of internet

%Million people

0

20

Source: Pyramid research, www.pyr.com

40

60

80

100

120

140

160

0

5

10

15

20

2000

Users Population Penetration

2006 2009


Despite the competitive nature of the ICT sector, it offers great opportunities for investors. The key is that over the coming years both mobile phones and the internet will be-come accessible to most Nigerians, which greatly adds to the development of the country. Even people in the coun-tryside benefit from mobile phones as they become able to optimise their micro businesses by getting information about markets and sales.

InfrastructureThe development of Nigeria’s dilapidated infrastructure is one of the prime drivers for achieving the socio-economic goals of the country. This includes an extensive road system which is in a bad shape. This also includes power production, power transmission lines, water supply and sewage systems. It includes airports, domestic and inter-national, as well as refurbishment of one of Africa’s oldest railway systems. Due to the population growth, the high urbanization rates and the increase in personal income, new houses for millions of people are needed.

Infrastructure is a challenging sector due to many state owned enterprises controlling it and it also requires a large capital expenditure and financial strength to operate

in this sector. However, there are many smaller projects suitable to smaller entrepreneurs and the supporting industries are equally important in order to make the sec-tor grow. The Nigerian government is committed to reach a defined set of 2020 infrastructure goals by focusing mainly on four areas; power, railways, road, oil and gas. However, this does not diminish the potential for invest-ing in other areas of infrastructure.

SummaryNigeria holds vast potential for strong economic growth both in the near and distant future. The current signs of economic growth relate primarily to the growing and po-tentially strong middle class with demand for a variety of consumer goods. This has an effect on practically all sec-tors including transportation, manufacturing and services. The improved political stability and peace in the oil-rich Niger Delta are both keys to growth and prosperity for the nation and puts Nigeria on track to become a stable and prospering nation.

Nigeria holds vast potential for strong economic growth both in the near and distant future


Reference (pages 1-29)

1. www.cia.org. (n.d.). Retrieved January 15, 2011, from The World Factbook: https://www.cia.gov/library/publications/the-world-factbook/region/region_afr.html

2. www.imf.org. (2010, October). Retrieved January 2011, from International Monetary Fund: http://www.imf.org/external/pubs/ft/weo/2010/02/weodata/weoselco.aspx?g=2603&sg=All+countries+%2f+Emerging+and+

developing+economies+%2f+Sub-Saharan+Africa

3. McKinesy Global Institute. (2010). Lions on the move: The progress and potential of African economies.

4. Economic Commission for Africa & African Union. (2010). Economic Report on Africa 2010. Economic Commission for Africa.

5. www.tradeinvestafrica.com. (2009, November 12). Retrieved February 25, 2011, from TradeInvestAfrica: http://www.tradeinvestafrica.com/news/33401.htm

6. OSSA and NEPAD-OECD. (2010). FDI in Africa.

7. The lion kings? (2011, January 6). The Economist.

8. 2010 - record year for investment in Africa. (2010, September 6). Afrique Avenir

9. Urbanization in Africa: A megatrend for business. (2011, March 19). The Citizen .

10. www.tradeinvestnigeria.com. (2010, June 5). Retrieved April 1, 2011, from TradeInvestNigeria: http://www.tradeinvestnigeria.com/feature_articles/357260.htm

11. Corporate Nigeria website: http://www.corporate-nigeria.com/index/fdi/foreign_direct_investment_overview.html

12. www.ghanaweb.com. (2010, March 15). Retrieved April 1, 2011, from GhanaWeb: http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=178569

13. www.eiti.org/Nigeria

14. www.internetworldstats.com/af/ng.htm

15. www.ncc.gov.ng/subscriberdata.htm

16. United Nations Human Settlements Programme. (2010). The State of African Cities 2010. UN-HABITAT.

17. Millennium. Nigeria Emerges. Retrieved April 29, 2011, from: http://millenniumconsulting.co.uk/?p=150

Corporate Guides International Ltd. (2010). Corporate Nigeria - The business, Trade and Investment Guide 2010/2011. CGI.

La Chronique. (2009). Urban Growth in West Africa from Explosion to Proliferation. Centre Population & Development.

McKinesy Quarterly. (2010). The case for investing in Africa. McK.

Monitor Group Company. (2009). Africa From the Bottom up. Monitor.

OECD & OCDE. Preparing for the Future - A Vision of West Africa in the Year 2020. Club Du Sahel.

Page, J. (2009). Africa’s Growth Turnaround: From Fewer Mistakes to Sustained Growth. Commission on Growth and Development.

The Boston Consulting Group. The African Challengers. BCG.


fan milK GroUP

Financial statements 201032 Company information

33 Management’s statement

34 Independent auditor’s report

35 Group highlights

36 Management’s review

37 Income statement

38 Balance sheet

40 Cash flow statement

41 Accounting policies

45 Notes


Company information

The companyFan Milk International A/SSofiendalsvej 88 ADK-9200 Aalborg SVRegistration No.: 44 32 67 28

Board of Directors Preben Sunke, Chairman

Christian EmborgPer Søndergaard PedersenMorten JensenSven Kristian Riskær

Board of Executives Jens Jørgen KollerupEinar Mark Christensen

AuditorsBeierholmState Authorized Public Accounting Company


Management’s statement

The Board of Directors and Board of Executives have on this day considered and adopted the consolidated financial statements for the financial year 1 January 2010 - 31 December 2010 for Fan Milk International A/S.

The consolidated financial statements are presented in accordance with the Danish Financial Statements Act (Årsregnskabsloven).

In our opinion, the consolidated financial statements give a true and fair view of the group’s assets, liabilities and financial position as at 31 December 2010 and of the results of the group’s activities and the consolidated cash flows for the financial year 1 January 2010 - 31 December 2010.

We believe that the management’s review gives a true and fair review of the matters dealt with in the review.

The consolidated financial statements are submitted for adoption by the general meeting.

Aalborg, 25 May 2011

Board of Executives

Jens Jørgen Kollerup Einar Mark Christensen

Board of Directors Preben Sunke Christian Emborg Per Søndergaard PedersenChairman Morten Jensen Sven Kristian Riskær


Independent auditor’s report

To the capital owners of Fan Milk International A/S

We have audited the consolidated financial statements and the management’s review of Fan Milk International A/S for the financial year 1 January 2010 - 31 December 2010. The consolidated financial statements comprise the income statement, balance sheet, accounting poli-cies and notes as well as the cash flow statement. The consolidated financial statements and the management’s review have been prepared in accordance with the Danish Financial Statements Act.

the Board of Directors and Board of Executives’ responsibility for the consolidated financial statements, the financial statements and the management’s review

The Board of Directors and the Executive Board are responsi-ble for the preparation and fair presentation of consolidated financial statements in accordance with the Danish Financial Statements Act and for preparing a management’s review which includes a true and fair review in accordance with the Danish Financial Statements Act. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of consoli-dated financial statements and a management’s review that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting poli-cies; and making accounting estimates that are reasonable in the circumstances.

auditor’s responsibility and basis of opinion

Our responsibility is to express an opinion on the consoli-dated financial statements and the management’s review based on our audit. We conducted our audit in accordance with Danish auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the consolidated financial statements and management’s review are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements and the management’s review. The procedures selected depend on the audi-tor’s judgement, including the assessment of the risk

of material misstatement in the consolidated financial statements and the management’s review, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the com-pany’s preparation and fair presentation of consolidated financial statements as well as for the preparation of a management’s review that includes a true and fair review, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of express-ing an opinion on the effectiveness of the company’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the rea-sonableness of accounting estimates made by the Board of Directors and Board of Executives, as well as evaluat-ing the overall presentation of the consolidated financial statements and the management’s review.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit has not resulted in any qualifications.

opinion

In our opinion, the consolidated financial statements give a true and fair view of the group’s assets, liabilities and financial position as at 31 December 2010 and of the results of their activities and the consolidated cash flows for the financial year 1 January 2010 - 31 December 2010 in accordance with the Danish Financial Statements Act.

We also believe that the management’s review includes a true and fair review in accordance with the Danish Finan-cial Statements Act.

Aalborg, 25 May 2011

BeierholmState Authorized Public Accounting Company

Søren V. PedersenState Authorized Public Accountant


Group highlights

Figures in DKK ’000 2010 2009 * 2008 * 2007 * 2006

KEY fiGUrES

income statement

Revenue 772,143 633,361 634,287 569,471 521,558Index 148 121 122 109 100

Gross profit 437,935 368,664 332,157 287,222 273,701Index 160 135 121 105 100

Profit before depreciation, amortisation, etc. (EBITDA) 206,309 158,962 124,270 73,260 68,695Index 300 231 181 107 100

Operating profit (EBIT) 147,182 119,890 87,740 40,822 30,848Index 477 389 284 132 100

Net financials -10,253 -14,799 -23,174 -12,925 -13,863Index - - - - -

Net profit 97,359 76,346 48,725 10,710 32,174Index 303 237 151 33 100

Net profit, parent company’s share 61,348 48,935 32,519 2,748 27,528Index 223 178 118 10 100

Balance sheet

Total assets 539,715 418,304 372,097 388,377 402,633Index 134 104 92 96 100

Equity 326,124 227,739 170,560 140,812 212,054Index 154 107 80 66 100

Equity, parent company’s share 218,774 154,632 115,547 96,549 162,262Index 135 95 71 60 100

Dividends 2,542 3,239 2,639 39,013 11,472Index 22 28 23 340 100

Net interest-bearing debt -12,369 21,525 65,033 56,633 22,694Index - 95 287 250 100

ratioS

Profitability

Gross profit ratio 56.7% 58.2% 52.4% 50.4% 52.5%

Return on equity, consolidated 35.2% 38.3% 31.3% 6.1% 15.2%

Return on equity, parent company 32.9% 36.2% 30.7% 2.1% 33.9%

Return on invested capital (ROAIC) 52.3% 49.5% 40.5% 18.9% 26.3%

Profit margin 19.1% 19.0% 13.8% 7.2% 5.9%

Equity ratio 60.4% 54.4% 45.8% 36.3% 52.7%

* As 2009 is the first year in which consolidated financial statements are prepared, the comparative figures for 2008, 2007 and 2006 represent non-audited figures.

computation of ratios The ratios have been computed in accordance with the recommendations of the Danish Society of Financial Analysts:

Gross profit ratio Gross profit x 100 Return on invested Operating profit x 100 Equity ratio Equity, end of year x 100 Revenue capital (ROAIC) Average invested capital Total assets

Return on equity Profit for the year after tax x 100 Profit margin Operating profit x 100 Average equity Revenue


Management’s review

Main activities The main activities of the Fan Milk Group are production, distribution and sale of dairy products such as yoghurt, ice cream, chocolate milk etc. as well as juice and fruit drinks in West Africa. Furthermore, the Danish subsidiaries of the Group carry out a number of supporting activities, such as procurement and shipment of raw materials and packaging materials, business development assistance, consultancy services and management support.

Development in the company’s financial activities and affairs With more than 9 per cent increase in product volume and 22 per cent increase in revenue, measured in DKK, 2010 has been a year of continuous and strong growth.

The global increase in prices for raw and packaging materials, especially in the second half of 2010, has led to a reduction in gross profit margin of 1.5 points compared to 2009. Capacity costs have increased in line with the volume development leading to an operating profit of DKK 147m, corresponding to an increase of 23 per cent compared to 2009.

The profit on ordinary operations for 2010 is considered satisfactory.

Special risksAs the group is primarily conducting business involving dairy operations in countries located in West Africa, the group is constantly exposed to risks primarily relating to:

Political situation Monetary situation

The group tries to minimise the risks through increased geographical spread of its activities and by partial hedging of monetary risks.

Corporate Social ResponsibilityThe Group is conscious of its corporate social responsibility with respect to human rights, social matters, environmen-tal and climate matters and combating of corruption. The group has joined the UN Global Compact in 2010 and is thereby committed to actively implement the 10 principles in its activities among others by elaborating a CSR policy that can be read in full at www.fanmilk.com.

A status on the Group progress in its CSR activities can also be found on www.fanmilk.com.

Knowledge resourcesThe group has special competencies with regard to exploiting business opportunities in Africa, including great cultural understanding and wide insight into African busi-ness conditions.

Research and development activitiesProduct development and process optimisation are carried out at a local company level. Great efforts are put into the continuous development of new flavours and packaging materials to always meet the customers’ demands.

All costs involved so far have been expensed.

The group’s expected developmentBased on the improvements of the global economy since the Financial Crisis in 2008-2009, and of African econo-mies in particular, the Group looks positively at 2011 and expects to be able to reach 10-15 percent growth in both revenue and profits in 2011 compared to 2010.

When considering the Group’s outlook for 2011, it should, however, be understood that currency fluctuation for Ghana Cedi (GHS) and Nigerian Naira (NGN) may signifi-cantly affect the outlook. The exchange rates used for the projections are GHS 375 and NGN 3.50.

Circumstances after the end of the financial yearAfter the end of the financial year, the serious political situation in Côte d’Ivoire has worsened with the risk of civil war. Consequently, the Group management has evaluated if the Group activities in Côte d’Ivoire due to the present circumstances have lost value. The management concluded that the present circumstances have had significant nega-tive effects for the Group activities in Côte d’Ivoire which is why the annual report 2010 includes an impairment of the of tangible fixed assets of a total of DKK 9m.


Income statement

Amounts in DKK ’000 2010 2009

Note revenue 772,143 633,361

Cost of sales -334,208 -264,697

Gross profit 437,935 368,664

Remuneration, salaries, etc. -101,439 -93,500 Other external costs -130,187 -116,202

Profit before depreciation, amortisation, etc. (EBitDa) 206,309 158,962

1+2 Depreciation and amortisation of intangible assets, property, plant and equipment -59,744 -39,9202 Loss/profit on disposal of property, plant and equipment 617 848 operating profit (EBit) 147,182 119,890

Financial income and similar items 5,315 5,767 Financial expenses and similar items -15,568 -20,566 total net financials -10.253 -14,799 Profit from ordinary operating activities before tax (EBt) 136,929 105,091 3 Tax on profit from ordinary activities -39,570 -28,745 net profit for the year 97,359 76,346 Minority shareholders’ share -36,011 -27,411 net profit for the year, parent company’s share 61,348 48,935 Distribution of net profit Dividend for the financial year 0 0 Retained earnings 61,348 48,935 total 61,348 48,935


Balance sheet

aSSEtS

Amounts in DKK ’000 31.12.2010 31.12.2009

Note Trademark rights 761 880

1 total intangible assets 761 880

Land and buildings 43,707 42,404 Plant and machinery 109,421 90,709 Leasehold improvements 850 1,037 Other plant, fixtures and fittings, tools and equipment 101,556 68,405

2 total property, plant and equipment 255,534 202,555

total non-current assets 256,295 203,435

Raw materials and consumables 93,900 82,235 Work in progress 343 189 Manufactured goods and goods for resale 8,121 8,296

total inventories 102,364 90,720

Other trade receivables 11,247 8,220 Corporation tax receivable 1,478 2,395 Other receivables 57,023 35,725

total receivables 69,748 46,340

cash and bank balances 111,308 77,809

total current assets 283,420 214,869

total assets 539,715 418,304


EQUitY anD liaBilitiES

Amounts in DKK ’000 31.12.2010 31.12.2009

Note Share capital 12,000 12,000 Retained earnings 206,774 142,632 Proposed dividend for the financial year 0 0

4 Equity, parent company’s share 218,774 154,632 4 Equity, minority interests 107,350 73,107 total equity 326,124 227,739 Provisions for deffered tax 11,713 3,008 Other provisions 25,695 21,656 total provisions 37,408 24,664 Credit institutions 25,441 35,908 Other payables 9,005 10,554 Short-term portion of long-term liabilities -13,357 -14,573 total long-term payables 21,089 31,889 Short-term portion of long-term liabilities 13,357 14,573 Credit institutions 64,493 52,872 Trade payables 43,612 28,462 Other payables 27,438 34,125 Income tax 6,194 3,980 total short-term payables 155,094 134,012 total payables 176,183 165,901 total equity and liabilities 539,715 418,304

5 Ownership and shareholders


Cash flow statement


Profit before tax 136,929 105,091 Adjustment for non-cash operating items: Depreciation of property, plant and equipment, incl. profit/loss 59,127 39,072 Other operating items incl. translation adjustments -3,264 -2,155

operating profit adjusted for non-cash items 192,792 142,008 Net income taxes paid -27,736 -25,748Change in working capital: Inventories -11,644 -2,974 Receivables etc. -24,324 -2,443 Trade payables 15,150 -839 Other payables -6,686 13,432

cash flow from operating activities 137,552 123,436

Net investments in property, plant and equipment: Intangible assets -205 -558 Property, plant and equipment -101,126 -76,804

cash flow from investing activities -101,331 -77,362

Borrowing 0 33,980Repayment of long-term debt -12,018 -18,184Dividends paid, minorities -2,542 -3,239Capital contribution, minorities 217 673

cash flow from financing activities -14,343 13,230

total cash flow for the year 21,878 59,304

Cash and bank balances, beginning of year 24,937 -34,367Cash flows for the year 21,878 59,304

cash and bank balances, end of year 46,815 24,937 Cash and bank balances, end of year, comprises: Cash and bank balances 111,308 77,809 Credit institutions -64,493 -52,872

total 46,815 24,937


Accounting policies

GeneralThe consolidated financial statements have been pre-sented in accordance with the provisions of the Danish Financial Statements Act for large class C groups and enterprises. The accounting policies have been applied consistently with previous years.

Basis of recognition and measurementIncome is recognised in the income statement as earned, including value adjustments of financial assets and liabili-ties. All expenses, including depreciation, amortisation, impairment losses and write-downs, are also recognised in the income statement.

Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the company and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company and the value of such liabilities can be mea-sured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.

On recognition and measurement, account is taken of foreseeable losses and risks arising before the time at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date.

Consolidated financial statementsThe consolidated financial statements include the parent and any subsidiaries in which the parent, directly or indirectly, holds more than 50 per cent of the voting rights or in which it has a controlling influence through agreements.

All financial statements used for consolidation are prepared in accordance with the accounting policies of the group.

The consolidated financial statements consolidate the audited financial statements of the parent and its sub-sidiaries, eliminating intercompany income and expen-diture, shareholdings, balances and dividends as well as unrealised intercompany gains and losses on inventories and non-current assets.

Newly acquired or newly founded enterprises are recogn-ised in the consolidated financial statements as from the time of acquisition. Divested or discontinued enterprises are recognised in the consolidated income statement up until the time of divestment or discontinuation. Compara-tive figures are not restated for newly acquired, divested or discontinued enterprises.

New enterprises are recognised in accordance with the purchase method, according to which the identifiable assets and liabilities of the newly acquired enterprises are recognised at fair value at the time of acquisition. A provision is made to cover expenses incidental to decided and announced restructuring in the acquired enterprise in connection with the acquisition. The tax effect of any reassessments is recognised.

The cost of the investments in the acquired enterprises is set off against the proportionate share of the fair value of the subsidiaries’ net assets at the time of the establish-ment of the group relationship.

The consolidated goodwill determined at the time of ac-quisition (positive balance) is recognised as an asset and amortised according to the straight-line method based on an individual assessment of the useful life of the asset, the maximum period being, however, 20 years. Consoli-dated negative goodwill (negative balance), reflecting an expected adverse development in the enterprises in ques-tion, is recognised in the balance sheet under deferred income and is reduced as the conditions underlying the negative balance are realised.

Goodwill and negative goodwill from acquired enterprises can be adjusted until the end of the year after the year in which the acquisition took place.

Minority interestsThe financial items of the subsidiaries are recognised in full in the consolidated financial statements. When stating the consolidated net profit or loss and equity, the proportionate share of any such net profit or loss and equity of the subsidiaries as can be attributed to minority interests is stated separately.


Foreign currencyThe consolidated financial statements are presented in Danish kroner.

On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate applicable at the transaction date. Exchange rate differ-ences between the exchange rate applicable at the trans-action date and the exchange rate applicable at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rate applicable at the balance sheet date. The difference between the exchange rate appli-cable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised in the income state-ment under financial income or expenses.

Foreign subsidiaries and associates are considered separate entities. Their income statements are translated using the average exchange rate for the month, and the balance sheet items are translated using the exchange rate applicable at the balance sheet date. Exchange rate adjustments arising from the translation of the equity of foreign subsidiaries at the beginning of the year using the exchange rates applicable at the balance sheet date and the translation of income statements from average exchange rates using the exchange rates applicable at the balance sheet date are recognised directly in equity.

Derivative financial instrumentsOn initial recognition, derivative financial instruments are measured at cost and subsequently at fair value in the balance sheet. Positive and negative fair values of deriva-tive financial instruments are included in other receiv-ables under assets and other payables under liabilities, respectively.

Changes in the fair value of derivative financial instru-ments classified as and fulfilling the criteria for hedging the fair value of a recognised asset or liability are recogn-ised in the income statement together with any changes in the fair value of the hedged asset or liability.

Changes in the fair value of derivative financial instru-ments classified as and fulfilling the conditions for

hedging future assets and liabilities are recognised in other receivables or other payables as well as in equity. In the event that the future transaction results in the recognition of assets or liabilities, any amounts previ-ously recognised in equity will be transferred to the cost of the asset or the liability, respectively. In the event that the future transaction results in income or expenses, any amounts recognised in equity will be transferred to the income statement in the period in which the hedged item affects the income statement.

For derivative financial instruments which do not qualify as hedging instruments, changes in the fair value are recognised in the income statement on an ongoing basis.

Changes in the fair value of derivative financial instruments which are used for hedging net investments in independent foreign subsidiaries or associates are recognised directly in equity.

Income statementRevenueIncome from the sale of goods is recognised in the income statement provided that delivery has taken place and the risk has passed to the buyer by the end of the financial year. Revenue is determined at fair value less VAT and discounts.

Income from services is recognised on a straight-line basis in step with delivery.

Depreciation and amortisationThe amortisation of intangible assets and depreciation of property, plant and equipment aim at systematic depreciation and amortisation over the expected useful lives of the assets. The following useful lives are applied by the group:

Trademark rights 5 yearsBuildings 10 - 20 yearsPlant and machinery 5 - 10 yearsLeasehold improvements 5 yearsOther plant, fixtures and fittings, tools and equipment 2 - 10 years

Accounting policies


New acquisitions of plant and machinery as well as other plant, fixtures and fittings, tools and equipment with a cost not exceeding DKK 12,300 each are recognised in the income statement in the year of acquisition.

Net financialsInterest income and interest expenses, foreign currency translation adjustments as well as realised and unrea-lised capital gains and losses are recognised under net financials. Amortisation of capital losses and loan costs relating to financial assets and liabilities is recognised on an ongoing basis as financial expenses and financial income, respectively.

TaxThe current and deferred taxes for the year are recognised in the income statement as taxes for the year with the portion attributable to the net profit or loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.

Balance sheetIntangible assetsIntangible assets are measured in the balance sheet at the lower of cost less accumulated amortisation and recoverable amount.

Property, plant and equipmentProperty, plant and equipment are measured in the bal-ance sheet at the lower of cost less accumulated depre-ciation and recoverable amount.

Cost comprises the purchase price and any costs directly attributable to the purchase until the date when the asset is available for use. The cost of self-constructed assets also comprises production overheads. Production over-heads include indirect material and labour costs as well as maintenance and depreciation of machinery, buildings and equipment used in the production process as well as the costs of factory administration and management. Borrowing costs are not included in the cost.

Impairment of assetsThe carrying amount of non-current assets which are not measured at fair value is assessed annually for indica-tions of impairment over and above what is reflected in depreciation/amor-tisation.

If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets. The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.

The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the disposal of the asset or group of assets after the expiry of their useful lives.

InventoriesInventories are measured at the lower of cost according to the FIFO principle and net realisable value.

The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus ex-penses incurred directly in connection with the purchase.

The cost of manufactured goods and work in progress is determined as the value of direct and indirect material and labour costs. Production overheads include indirect material and labour costs as well as maintenance and depreciation of machinery, buildings and equipment used in the production process as well as the costs of factory administration and management. Borrowing costs are not included in the cost.

The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.

ReceivablesReceivables are measured at amortised cost, which usually corresponds to nominal value, less write-downs for bad debts.

Write-downs for bad debts are determined on the basis of an assessment of the individual receivables.

EquityThe proposed dividend for the financial year is recognised as a special item under equity.


ProvisionsOther provisions, including pension commitments etc., are recognised when the company has a legal or construc-tive obligation at the balance sheet date and it is probable that such obligation will draw on the financial resources of the company. The provision is measured based on an estimate of the fair value of the obligation.

Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.

Deferred tax liabilities and deferred tax assets are com-puted on the basis of all temporary differences between the carrying amount and tax base of assets and liabilities and are recognised in the balance sheet at the tax rate applicable. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where tem-porary differences, except for acquisitions, have arisen at the date of acquisition without affecting either the net profit or loss for the year or the taxable income.

Deferred tax assets are recognised, following an assess-ment, at the expected realisable value through a set-off against deferred tax liabilities or against tax on future earnings.

PayablesLong-term payables are measured at cost at the time of contracting such payables (raising the loans). Payables are subsequently measured at amortised cost, where capital losses and borrowing costs are distributed over the term of the payables on the basis of the calculated, effective rate of interest at the time of contracting such payables.

Short-term payables are also measured at amortised cost, which usually corresponds to the nominal value of the debt.

Any remaining lease liability for assets held under a finance lease is measured in the balance sheet as mort-gage debt, and the interest share of the lease payment is recognised in the income statement on an ongoing basis.

Cash flow statementThe cash flow statement is prepared using the indirect method, showing cash flows from operating, investing and financing activities as well as changes in cash flows for the year and cash and cash equivalents at the begin-ning and end of the year.

Cash flows from operating activities comprise net profit or loss for the year, adjusted for non-cash operating items, income tax paid and changes in working capital.

Cash flows from investing activities comprise purchase and sale of non-current assets adjusted for related changes in receivables and debt.

Cash flows from financing activities comprise financing from and dividend paid to shareholders as well as the arrangement and repayment of long-term payables.

Cash and cash equivalents at the beginning and end of the year comprise cash and debt to credit institutions.

Accounting policies


1 intanGiBlE aSSEtS

Amounts in DKK ’000 trademark rights

Cost as at 31 December 2009 1,646Exchange rate adjustment 1Additions during the year 205Disposals during the year 0

Cost as at 31 December 2010 1,852

Amortised as at 31 December 2009 -766Exchange rate adjustment 3Amortisation for the year -328

Amortisation as at 31 December 2010 -1,091

Carrying amount at 31 December 2010 761

2 ProPErtY, Plant anD EQUiPmEnt other plant, fixtures and land Plant leasehold fittings, tools Amounts in DKK ’000 and buildings and machinery improvements and equipment

Cost as at 31 December 2009 64,568 193,896 2,598 149,650Exchange rate adjustment 2,361 8,396 56 5,985Additions during the year 8,309 41,632 29 54,730Disposals during the year 0 -525 0 -8,767

Cost as at 31 December 2010 75,238 243,399 2,683 201,598

Depreciated as at 31 December 2009 -22,164 -103,187 -1,561 -81,245Exchange rate adjustment -420 -3,243 3 -2,487Depreciation for the year -8,947 -27,601 -275 -22,593Disposals during the year 0 53 0 6,283

Depreciation as at 31 December 2010 -31,531 -133,978 -1,833 -100,042

Carrying amount as at 31 December 2010 43,707 109,421 850 101,556 Selling price of disposed assets 0 570 0 3,002Carrying amount 0 471 0 2,484

Profit 0 99 0 518

Notes


4 EQUitY

Share retained Proposed Amounts in DKK ’000 capital earnings dividends total

Equity at 31 December 2009 12,000 142,632 0 154,632Exchange rate adjustments 0 3,517 0 3,517Net profit for the year 0 61,348 0 61,348Net changes in equity 0 -723 0 -723

Equity as at 31 December 2010 12,000 206,774 0 218,774

Amounts in DKK ’000 31.12.2010 31.12.2009

Minority interests as at 31 December 2009 73,107 55,013Dividend paid -2,542 -3,239Share of profit for the year 36,011 27,411Capital contributions 217 673Exchange rate adjustments 1,212 -6,751Equity adjustments -655 0

Minority interests as at 31 December 2010 107,350 73,107

5 SharEholDErS

The following shareholders have been registered in the parent group’s register of shareholders as holding more than 5% of the share capital:

Skandia Kalk Holding ApS, AalborgEquity Datterholding 15 (FM) ApS, Copenhagen.

3 tax


Current tax for the year 31,260 20,301Deferred tax for the year 8,353 8,406Adjustment of tax in respect of previous years -43 38

Total tax for the year 39,570 28,745

Notes


fan milK intErnational a/SSofiendalsvej 88ADK-9200 Aalborg SV.DenmarkTel.: +45 96 33 80 00Fax: +45 98 18 93 22www.fanmilk.com

EmiDan a/SSofiendalsvej 88ADK-9200 Aalborg SV.DenmarkTel.: +45 98 18 90 00Fax: +45 98 18 93 22

fan milK ltD.No. 1 Dadeban RoadRing Road North, Industrial AreaAccraGHANATel.: +233 (302) 224421Fax: +233 (302) 221951

fan milK Plc.Eleiyele Industrial LayoutIbadanNIGERIATel.: +234 (2) 2412032Fax: +234 (0) 8034040727

fan milK S.a.Zone IndustrielleB.P. Port 9130LoméTOGOTel.: +228 (223) 7160Fax: +228 (227) 0273

fan milK S.a.r.l.04 BP - 1049 RFU-ILOT4888 AKPAKPA/PLM face ISPECCotonouBENINTel.: +229 21374150Fax: +229 21374151

fan milK S.a.r.l.Secteur 9, Lot 14Zone Industrielle de GounghinOuagadougou 01BURKINA FASOTel.: +226 50340506Fax: +226 50340507

fan milK cÔtE D’iVoirE S.a.31, Rue des Brasseurs Zone 3 C 1453 Abidjan 18CÔTE D’IVOIRETel. : +225 21248676Fax : +225 21258665

fan milK liBEria ltD.1000 Monrovia 10Bushrod IslandFree Port - Fishing PierMonroviaLIBERIATel.: +231 (0)6 281 256

Addresses

FAn MIlk InteRnAtIonAl A/sSofiendalsvej 88ADK-9200 Aalborg SV.DenmarkTel.: +45 96 33 80 00Fax: +45 98 18 93 22www.fanmilk.com

Fan Milk Group Annual Report 2010

Documents

Transcript of Fan Milk Group Annual Report 2010