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Welcome at FrieslandCampina – WorkumAnton Sweere, 27 November 2012

We provide millions of peoplearound the world

with all the good things milk has to offer

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Our milk

By nature, milk is

one of the richest

sources of nutrition.

We process the milk,

supplied by our

member dairy

farmers, into a wide

range of dairy

products

•Consumers around the world

•Retail chains, wholesalers, local shops

•Professionals in the hotel, restaurant, café and bakery segments

•Food producers and pharmaceutical companies

Our customers and consumers

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Napolact. Ca odinioara Unique conditionsmake unique cheeses

Γάλατα υπάρχουν πολλά,

NΟΥΝΟΥ όµως, ένα.

Passie voor fruit

A Pöttyös az igazi!®

Desserts sindunsere

Leidenschaft

Een lekker stukjezuivel

Als je voor echtlekker gaat

IedereenDubbelFrisss

We keep it cool,you get the best

Consumer products

Het beste van onsland proef je in

Campina

Liebe ist, wenn esLandliebe ist

Quality milk Melk maakt de koffie

Membuka PotensiSebenar

De fruitigstedrinkyoghurt

Milner gemaakt methalfvolle melk

Voor het lekkerstekopje koffie

De enigeechte

Cea mai bunanutritie special

creata pentru tine

Voor een natuurlijkeweerstand

Premium Dutchquality cheese

De lekkere zuivel met 0% vet en geen

suiker toegevoegd

Milk, shaken up

Growing up together

Raih esokmu

It’s in you

Fruchtigeryoghurtgenuss

Daar word je blij van

Our brands

In nutrition and taste,

nothing beats Alaska

Professional market

Als talentensamensmelten

Vrijheid van smaak Het beste van ons land proef je in Campina

Natuurlijk lekker

Ingredients

Closer to you Simply trusted Let’s talk Where great things come to life

Everything tohelp you grow

The pursuit of excipient excellence

Key figures

Results 2011 2010 variance

Revenu (in millions of euros) 9,626 8,972 +7.3%

Operating profit 403 434 -7.1%

Profit 216 285 -24.2%

Employees 2011 2010 variance

Average number of FTEs 19,036 19,484 -2.3%

Member dairy farmers

Member dairy companies 14,391 14,829 -2.9%

Members 19,848 20,375 -2.6%

Milk

Milk supplied by member dairy

farmers (in millions of kilos)

8,838 8,821 +0.2%

Total milk processed (in millions of

kilos)

10,140 10,266 -1.2%

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Key figuresin euro per 100 kilos

(excl. VAT, at 4.41% fat, 3.47% protein)

Milk price 2011 2010 variance

Guaranteed price 36.94 32.39 +14%

Performance payment 1.10 1.23 -11%

Registered reserve member bonds 0.73 0.73

Milk price 38.77 34.35 +13%

4.2

4.4

4.6

4.9

5.2

5.3

5.5

7.4

8.4

9.3

9.7

11.3

13.5

14.0

18,6

15. Yili - China

14. Sodiaal - Frankrijk

13. DMK - Duitsland

12. Saputo - Canada

11. Unilever - Nederland/UK

10. Meji - Japan

9. Kraft Foods - USA

8. Arla Foods -Denemarken/Zweden

7. Dean Foods - USA

6. Dairy Farmers of America

5. Friesland Campina -Nederland

4. Fonterra - Nieuw Zeeland

3. Lactalis - Frankrijk

2. Danone - Frankrijk

1. Nestlé - Zwitserland1. Nestlé - Switzerland

2. Danone - France

3. Lactalis - France

4. Fonterra - New Zealand

5. FrieslandCampina - Netherlands

6. Dairy Farmers of America - USA

7. Dean Foods - USA

8. Arla Foods – Denmark/Sweden

9. Kraft Foods - USA

10. Meiji Dairies - Japan

11. Unilever – Netherlands/UK

12. Saputo - Canada

13. DMK - Germany

14. Sodiaal - France

15. Yili - China

18.6

Source: Rabobank, July 2012

Our position2011 dairy revenue, in billions of euros

Company Dairy revenue

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14,391 member dairy farms

Governance structure

Cooperative council

Members

Member council

Supervisory Board

Districts

Board

Executive Board

Zuivelcoöperatie

FrieslandCampina U.A.

Royal

FrieslandCampina N.V.

General Meeting of Shareholders

holding all shares in

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Organisation

FrieslandCampina Branded Netherlands

FrieslandCampina Germany

FrieslandCampina Hungary

FrieslandCampina Romania

FrieslandCampina Hellas

FrieslandCampina Russia

FrieslandCampina UK

FrieslandCampina Spain

FrieslandCampina Professional

Executive Board

Consumer Products Europe

Consumer Products International

Cheese, Butter & Milkpowder Ingredients

Corporate Centre

FrieslandCampina Indonesia

FrieslandCampina Vietnam

FrieslandCampina Malaysia/

Singapore

FrieslandCampina Thailand

FrieslandCampina China

FrieslandCampina Hong Kong

Alaska Milk Corporation, Philippines

FrieslandCampina WAMCO Nigeria

FrieslandCampina Middle East

FrieslandCampina Export

FrieslandCampina Cheese

FrieslandCampina

Cheese Specialties

FrieslandCampina

Butter & Milkpowder

FrieslandCampina Domo

FrieslandCampina Kievit

FrieslandCampina DMV

FrieslandCampina Creamy Creation

FrieslandCampina Dairy Feed

DFE pharma

Revenue 2011in millions of euros

Business Groups Regions

3,395

32%

2,460

23%

2,822

27%

1,930

18% 2,435

25%

1,317

14%

2,555

27%

1,996

21%

999

10%

324

3%

Ingredients

Consumer Products Europe

Cheese, Butter &

Milkpowder

Consumer Products

International

Africa &Middle East

The Netherlands

Asia & Australia

Rest of Europe

Germany

North & South America

9,626 9,626

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Aspiration

Value drivers

Benefit platforms

Capabilities

Foundation

Goodness of dairy

Chain advantages Sustainability

The way we work & safety

To bring the essential nutrients of natural dairy to people worldwide

To be the most attractive dairy company for member dairy farmers

Dairy-based beverages

Infant & toddler nutrition (B2B, B2C)

Branded cheese

Strongholds & geographic expansion

Foodservice in Europe

Basic products

Growth & development Daily nutrition

Health & wellness Functionality

Talent management

Milk valorisation Innovation

Business model & cost focus

Strategy route2020:Growth & value creation

Innovation Centre Wageningen

• New FrieslandCampina Innovation Centre in Wageningen

• 450 specialists will work in the Innovation Centre in 2013

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Goodness of milk

• Milk is one of the richest sources of nutrition and provides nutrients for a healthy lifestyle.

• Milk contains indispensible essential nutrients such as proteins, vitamins B2 and B12 and minerals such as calcium.

• Because of its array of nutrients, milk is excellently suited to contribute to the right balance in all types of diet.

The combination of vitamins A and D, zinc and seleniumcontributes to immunity

Milk calcium, protein, potassium and vitamin Dwork together to build and maintain healthy bonesMilk fat increases the

bioavailability of vitamin A

Like musicians in an orchestra, milk nutrients support each other’s benefits

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CSR strategy FrieslandCampina

CSR Mission and VisionCSR Mission and Vision

FrieslandCampina CSR Strategy4 priorities, KPIs

FrieslandCampina CSR Strategy4 priorities, KPIs

CSR Performance Measurement – Reporting – Stakeholder dialogue - Partnerships CSR Performance Measurement – Reporting – Stakeholder dialogue - Partnerships

Employee and member dairy farmer engagement – CSR Training programmes – Annual CSR Team AwardEmployee and member dairy farmer engagement – CSR Training programmes – Annual CSR Team Award

CSR Governance Board – Four Implementation teamsCSR Governance Board – Four Implementation teams

Dairy Development

Helping 40,000 small farmers Africa, Asia

Dairy Development

Helping 40,000 small farmers Africa, Asia

Sustainable Value Chains

Improving resource utilisation

Sustainable Value Chains

Improving resource utilisation

Responsible Dairy Farming

Setting the standard

Responsible Dairy Farming

Setting the standard

Health & Nutrition

Combating obesity & nutrient deficiency

Health & Nutrition

Combating obesity & nutrient deficiency

company cooperative

Sustainability practices for Suppliers – Code of Conduct – Foqus quality control system – Policy & position papers Sustainability practices for Suppliers – Code of Conduct – Foqus quality control system – Policy & position papers

company company

Membrane processing

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skimmed milk powder

cheese/quark

caseinates

whole milk

powder

cream

butter milk

butter

butter serum

milk fat milk fat fractions

casein hydrolysates

bioactive peptides

whey protein hydrolysates

β-lactoglobuline

α-lactalbumine

lactoferrine

lactoperoxidase

calcium

inhalation lactose

food lactose

GOS

Milk is the basis for many products and ingredients

Potential membrane applications

MCI

milk protein concentrate

milk

whey powder

whey protein concentrate

demineralized whey powder

whey protein isolate

pharma lactose

Milk: > 400 componentsComponent Concentration

Fat 4,0 %

Casein 2,6 %

Whey protein 0,6 %

Non protein nitrogen 0,06 %

Lactose 4,6 %

Minerals 0,85 %

Vitamins

Enzymes

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Roles of membrane technology

Application Technology New developments

De-watering RO Membrane distillation,Foward osmosis

Concentration RO, NF, UF

Demineralisation NF, ED CDI, BPM

De-fatting MF

Separation/ fractionation UF, MF Membrane cascadesMembrane absorbers

Preservation MF

Emulsification MF

Advantages of membrane processing:• Preserving milk quality: relatively mild conditions• Sustainable processing:

• Relatively low energy demand• Chances in water reduction and water re-use

Disadvantages of membrane processing:• Limited robustness and hygiene• Limited selectivity

Increasing role of membrane technology

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Preference for spiral wound membranes

Water removal (RO- evaporation- drying)

20 kJ/kg

500 kJ/kg

3500 kJ/kgAir

Air

Powder

Whey

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Reverse osmosis

What can be learned from (waste) water processing:

- System design, membranes- Energy saving- Pre-, post-, intermediate

treatment

Specific dairy issues:

- Solids content- Precipitation of minerals- Hygiene, run time, CIP- Complex mixture- More tight membranes

Past

State-of-the-art

Milk prism

Casein MPC

Serum proteins

Skimmed milk

MF membrane

UF membrane

Lactose & Salt

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PRISM protein fractionation

• Work at non fouling conditions

− At fouling conditions no selectivity remains

− Product specs cannot be reached

• Application limited by membrane selectivity

CMF

MF

UF

Milk

Microbes

MCI

SPC

Milk perm

Milk prism

Mild preservation by means of CMF

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Trends in membrane technology

1. Ruled by SWRO/BWRO and gas separation

2. High value applications in pharma

3. Submerged bioreactors

4. Food has to find its own way

− Using developments in RO and pharma

− Initiating food specific developments

− Chances in sustainable processing

− Water re-use

− Energy saving

− Waste reduction and waste processing

Royal FrieslandCampina