Proteins, fats, vitamin B2 and B12, minerals, lactose... milk

Transcription

1 At a glance

2 Proteins, fats, vitamin B2 and B12, minerals, lactose... milk

3 4 NOURISHING BY NATURE 5 FrieslandCampina: Passion for healthy nutrition Milk, yoghurt, quark and cheese: dairy products that millions of people across the world serve as part of their meals. At FrieslandCampina we create these wonderful products and much more from milk; for young and old, each and every day, with passion for healthy nutrition. And that is something you can taste! FrieslandCampina is a cooperative of member dairy farmers. Their entrepreneurship and professionalism, as well as that of our employees, guarantees quality and safe products. Together we manage the complete production chain: from grass to glass.

4 6 NOURISHING BY NATURE Doing business based on our purpose FrieslandCampina's employees are driven by one goal: our purpose nourishing by nature. This purpose stands for better nutrition for the world s consumers, a good living for our farmers, now and for generations to come. We are focused Better nutrition A good living for our farmers Now and for generations to come on the world of today, although our outlook is also focused on the longterm. And in all this nourishing by nature always is the key theme. Better products Responsible marketing Clear labelling information Awareness of responsible nutrition Value creation for member dairy farmers Dairy Development Programme Climate-neutral growth Sustainable procurement Sustainable production Animal health and animal welfare Pasture grazing and biodiversity

5 8 NOURISHING BY NATURE Better nutrition The global population is expected to grow from just under 8 billion people in 2018 to approximately 10 billion by The demand for food will continue to increase. As a dairy producer, FrieslandCampina can contribute to feeding the world s population. Our products contain important nutrients, vitamins and minerals. By constantly working on lowering fat, salt and sugar content, we make our products healthier. We also consider it important for our products to be affordable by different income groups. Furthermore, we support programmes that inform children about a healthy lifestyle and encourage them to exercise more. We also provide clear information about our products.

6 10 NOURISHING BY NATURE 11 Better nutrition Nutrients from milk: good for your bones and muscles. The proteins in milk are important for developing and maintaining your muscles. And calcium is needed for strong bones. Better products FrieslandCampina aims for a good balance in its offer of products for daily nutrition and selfindulgent products for occasional consumption. The composition of our products must also meet scientific nutritional criteria. Sjinkie Knegt, European and world short track speed skating champion makes use of the highquality proteins of FrieslandCampina DMV. Proteins help in the recovery of muscles Responsible marketing To be able to eat and drink healthy, consumers must have access to responsible options. We apply rules for providing clear and honest information about nutritional value on our packaging. The same applies to our marketing communications. Lifestyle education A healthy lifestyle and sufficient exercise is important for all ages. FrieslandCampina develops and supports programmes on healthy nutrition and lifestyles throughout the world, such as the Drink.Move.BeStrong programme in Asia. In cooperation with the Jr. National Basketball Association thousands of children are encouraged to play basketball. Access to food The daily intake of sufficient nutrients is important for a healthy life. Unfortunately this is not achievable for everyone. For example, a shortage of iodine, vitamin A and iron is a major threat to women and children in countries with low incomes. The FrieslandCampina Access to Food programme intends to make dairy available to more people, especially people with lower incomes.

7 12 NOURISHING BY NATURE A good living for our farmers The member dairy farmers of the FrieslandCampina Cooperative supply milk to the company, which in turn processes the milk into products for various markets throughout the world. Adding the maximum possible value to the milk supplied, enables FrieslandCampina to maximise its contribution to the income of its member dairy farmers.

8 14 NOURISHING BY NATURE 15 A good living for our farmers FrieslandCampina aims to make the maximum possible contribution to the income of its member dairy farmers. Now and for generations to come. This way FrieslandCampina remains an attractive company for its member dairy farmers. Because we control the entire production chain, we stand out in the world of dairy. We profile ourselves accordingly in our sales markets. For many customers this 'from grass to glass' concept has a great deal of value and creates confidence in FrieslandCampina as a producer of dairy. Each year, approximately 20,000 farmers are trained in Indonesia, Vietnam, Thailand, Malaysia, Nigeria and Eastern Europe through the Dairy Development Programme FrieslandCampina can rely on its more than 140 years of experience in dairy farming and in the dairy industry. That experience yields a trove of knowledge that is being used to further develop dairy farms in Asia, Africa and Eastern Europe. This is accomplished on the basis of the Dairy Development Programme (DDP). Through this programme, dairy farmers are supported in improving the quality of their milk, increasing the productivity per cow and acquiring access to the market. Member dairy farmers, as well as special teams of employees, contribute effort to the Dairy Development Programme.

9 16 NOURISHING BY NATURE Now and for generations to come For many people a cow in a pasture forms part of the Dutch landscape. Member dairy farmers are encouraged to allow their cows to graze in the pasture during summer months. Preserving flora and fauna (biodiversity) also is a priority. The use of natural resources such as water, raw materials and fossil fuels continues to be reduced. FrieslandCampina aims to keep the emission of greenhouse gases in 2020 equal to 2010 levels. This also applies in case of an increase in milk production.

10 18 NOURISHING BY NATURE 19 Now and for generations to come Milk production in the Netherlands is very efficient. The emission of greenhouse gases per kilo milk is almost half the global average. Together with member dairy farmers we are working on further reducing our ecological footprint. FrieslandCampina's production facilities in Europe are fully powered by green electricity Climate-neutral growth The Dutch dairy sector wants to achieve a two-percent improvement in energy efficiency every two years. By saving energy and producing renewable energy, we contribute to reducing the use of fossil fuels and greenhouse gas emissions, such as carbon dioxide (CO 2 ), nitrous oxide and methane. Sustainable procurement We procure as many raw materials and packaging materials from sustainably managed sources as possible (cocoa, soy, palm oil, cane sugar and paper packaging). Sustainable production We use 100 percent renewable energy at all locations in Europe. Water consumption per tonne of product is being further reduced. Wastewater is being treated at as many locations as possible. Waste is separated at virtually all locations. Animal health and animal welfare Proper care of the cow means that the cow lives longer, requires less medicines and produces a high volume of milk. We work together with recognised cattle veterinarians. The use of antibiotics has been showing a declining trend for years. Pasture grazing and biodiversity Dairy farmers in the Netherlands manage more than one third of the countryside. FrieslandCampina's member dairy farmers consider strengthening biodiversity very important. Member dairy farmers are compensated for preserving flora and fauna.

11 20 OUR ORGANISATION STRUCTURE Organisation structure 21 As at 1 January 2018 Zuivelcoöperatie FrieslandCampina U.A. Our organisation structure FrieslandCampina is one of the largest holdings all shares in dairy companies in the world with a cooperative tradition going back more Member Dairy Farmers (18,645) than 140 years. The member dairy farmers in the Netherlands, Germany and Belgium own 100 percent of Royal FrieslandCampina N.V. through Zuivelcoöperatie FrieslandCampina U.A. All member dairy farmers are Districts (21) Members' Council (210) Royal FrieslandCampina N.V. independent entrepreneurs. Chairmen s Meeting (21) Board (9) General Meeting of Shareholders (210) The company is organised into four business groups: Consumer Dairy Specialised Nutrition Ingredients Dairy Essentials Supervisory Board (13) Executive Board (2) Corporate & Support Consumer Dairy Specialised Nutrition Ingredients Dairy Essentials

12 22 OUR ORGANISATION - BUSINESS GROUPS 23 Consumer Dairy FrieslandCampina Consumer Dairy provides consumers throughout the world with dairy products, such as milk, yoghurt, condensed milk, dairy-based beverages, cheese, butter and cream. For professional customers, such as bakers, pastry chefs, chocolate confectioners, chefs and caterers, we offer a broad product range of creams, butters, desserts and fillings. Specialised Nutrition FrieslandCampina Specialised Nutrition supplies nutrition to specific consumer groups. For young children who are completely dependent on reliable nutrition with a unique combination of nutrients, for adults in various stages of life and for sports people who consider sports nutrition a key factor in their performance.

13 24 OUR ORGANISATION - BUSINESS GROUPS 25 Ingredients FrieslandCampina Ingredients supplies natural ingredients throughout the world. Ingredients with added value and application-specific innovations to producers of infant nutrition and foods, to the pharmaceutical industry and to producers of animal feeds. The business group works closely together with customers and is focused on markets in which nutrition plays a crucial role: children, the elderly and medical nutrition. Dairy Essentials FrieslandCampina Dairy Essentials produces and sells Dutch cheeses, such as Gouda, Edam and Maasdam, and mozzarella, different types of butter and milk powders for professional and industrial customers. Dairy Essentials offers special applications that make it possible to prepare new recipes and that provide solutions in anticipation of customer needs. The business group is responsible for distributing all incoming milk and for valorising large volumes of milk at the lowest possible cost and with the highest possible yield.

14 26 INNOVATION 27 Anticipating needs What is important for consumers? Or for our industrial customers? What social insights are relevant to our business? FrieslandCampina has experts in the area of nutrition, milk components, process technology, products, packaging, sustainability and dairy farming. The knowledge and expertise of our employees, our experience and current technology ensure that we are capable of realising innovations throughout the entire production chain. The basic nourishing by nature principles are hereby leading. This is how we end up with nutrition that optimally leverages the milk's qualities. FrieslandCampina seeks cooperation with companies that can support and help accelerate our innovation processes, because open innovation produces rewarding results Sustainability Nutrition A practical model provides dairy farmers with better insight into how the emission of greenhouse gases on their farms can be reduced Dairy farming Unlocking the nutritional potential of milk components Milk Packaging Processing Products

15 28 QUALITY 29 From grass to glass The quality and food safety of milk and products are of the highest priority for FrieslandCampina. FrieslandCampina together with the Cooperative's member dairy farmers controls the entire production chain, from the farm up to and including the end product. This guarantees the quality, safety and sustainability of the products. With the Foqus planet programme, FrieslandCampina provides its member dairy farmers with the tools needed to realise sustainable farming operations and the production of highquality milk Our customers throughout the world must be able to rely on the fact that the quality of our products is beyond reproach. Safety and quality are our highest priority in all production and distribution facilities. With its own integrated quality system, Foqus, FrieslandCampina ensures the safety and quality of its products in the entire production chain, from grass to glass.

16 30 OUR EMPLOYEES 31 Working at FrieslandCampina FrieslandCampina is an international company with a strong local character: people-oriented, approachable and open. Our culture is focused on enabling employees to fully express their talents and thus contribute to realising our ambitions. FrieslandCampina is constantly looking for new talent in every possible discipline. Working safely is a priority. FrieslandCampina wants every employee to arrive home safely after work Employees take e-learning courses on topics such as fair competition, fair business practices and privacy

17 32 ABOUT FRIESLANDCAMPINA 33 Our brands Top 10 consumer brands by revenue in euros INGREDIENTS: 1 Friso Worldwide 2 Frisian Flag Indonesia 3 Dutch Lady Vietnam, Malaysia, Myanmar, Singapore, China and Hong Kong 4 Peak Nigeria 5 Debic Food Services in Europe 6 Campina Netherlands and Belgium 7 Foremost Thailand 8 Alaska Philippines 9 Rainbow Saudi Arabia and United Arab Emirates 10 Landliebe Germany, Hungary Top 5 industrial products by revenue in euros 1 DMV Excellion (caseinate) 2 Kievit Vana Blanca (creamers) 3 Domo Vivinal GOS (galacto oligosaccharides) 4 DFE Pharmatose (pharmaceutical lactose) 5 Kievit Vana Grasa (fat powders)

18 34 ABOUT FRIESLANDCAMPINA 35 Our markets Europe revenue* employees Asia and Oceania 6,863 12,981 Netherlands Russia Germany France Belgium Spain Greece Italy Hungary Austria Romania United Kingdom Africa and the Middle East revenue* 3,834 revenue* employees 9,518 employees Indonesia Malaysia Singapore Thailand Myanmar Vietnam Philippines China Hong Kong Pakistan India Japan New Zealand Nigeria Ghana Ivory Coast United Arab Emirates 976 1,010 Saudi Arabia Egypt Morocco North and South America revenue* 437 employees 166 United States Brazil * revenue in 2017 in millions of euros

19 36 ABOUT FRIESLANDCAMPINA 37 Our history Founding of Arnhemse Melkinrichting Founding of CCF in Leeuwarden In 1919 and beyond: Friesche Vlag, Dutch Baby and Bonnet Rouge registered for international markets Founding of Coberco in Zutphen Merger of Coberco, Friesland Dairy Foods, De Zuid- Oost-Hoek and De Twee Provinciën Acquisition of Nutricia Dairy & Drinks Group Friesland Foods receives Royal designation on its 125th anniversary Acquisition of Alaska Milk Corporation in the Philippines Acquisition of Olam in Ivory Coast, and Orange and DEK in Italy Acquisition of controlling interest (51%) in Engro Foods in Pakistan Merger of Friesland Foods and Campina, founding of FrieslandCampina Acquisition of IDB Belgium Acquisition of mozzarella producer Fabrelac in Belgium Acquisition of the Anika Group's activities in Russia Acquisition of Friesland Huishan Dairy in China Nine farmers acquire a cheese factory in the Wieringerwaard polder Founding of the first dairy cooperatives Founding of De Meijerij Veghel/De Melkindustrie Veghel Launch of the Campina brand Merger of DMV Campina and Melkunie Holland, founding of Campina Melkunie Acquisition of Südmilch (Heilbronn) International launch of international Campina brand and Cooperative Acquisition of Zijerveld en Veldhuyzen B.V. and G. den Hollander Holding Founding of Friesland Huishan Dairy joint venture in China Acquisition of Best Cheese Holland activities

20 38 ABOUT FRIESLANDCAMPINA Key Figures 23,675 EMPLOYEES MILLIONS OF CONSUMERS EACH AND EVERY DAY BRANCH OFFICES IN 34 COUNTRIES REVENUE 12.1 BILLION EUROS EXPORT TO 18,645 MORE THAN THE 100 COUNTRIES MEMBER DAIRY FARMERS OWN THE COMPANY

21 Every day Royal FrieslandCampina provides millions of consumers throughout the world with dairy products that are rich in valuable nutrients from milk. With an annual revenue of 12 billion euros, FrieslandCampina is one of the world s largest dairy companies. FrieslandCampina produces and sells consumer products such as dairy-based beverages, infant nutrition, condensed milk, cheese and desserts in a large number of European countries, in Asia and in Africa. Our dairy products are exported to more than 100 countries. Cream and butter products for professional customers are supplied to bakeries and catering companies in Western Europe. FrieslandCampina furthermore sells ingredients and semi-finished products to manufacturers of infant nutrition, the food industry and the pharmaceutical sector around the world. The company has branch offices in 34 countries and employs over 23,000 people. FrieslandCampina's products find their way to more than 100 countries. The company s central office is based in Amersfoort, the Netherlands. FrieslandCampina's activities are divided into four business groups: Consumer Dairy, Specialised Nutrition, Ingredients and Dairy Essentials. The company is fully owned by Zuivelcoöperatie FrieslandCampina U.A, and with over 18,000 member dairy farmers in the Netherlands, Germany and Belgium one of the world s largest dairy cooperatives. Royal FrieslandCampina N.V. Stationsplein 4, 3818 LE Amersfoort, The Netherlands September 2018 Published by Corporate Communication