Frank van Ooijen Corporate Director Sustainability & the FrieslandCampina Institute for Dairy Nutrition. How to feed the world?

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1 Frank van Ooijen Corporate Director Sustainability & the FrieslandCampina Institute for Dairy Nutrition How to feed the world?

2 What the world eats

3 Now a global player in dairy since merger in Jan In top 40 of FMCG global giants -2nd dairy cooperative in the world -5th processor of milk -Annual sales between DSM en Heinz (EUR 11.4 bn) -Factories in 30 countries, sales in 100 countries

4 A dairy cooperative designed to last: history is approx. 150 years Founding of CCF in Leeuwarden

5 A century of craftmanship & salesmanship conquered foreign markets June 2013: celebration 100 th anniversary of CCF factory in Leeuwarden: Sietze Hepkema 5

6 NL: world champion in dairy because of rivers delta, mild climate, soil and knowledge 6

7 A remarkable transition from useless grass to a highly nutritious product Proteins Minerals Vitamins Milk fat Bio-actives Feed stock NL: approx. 50% grass; 30% maize; 20% concentrates ( krachtvoer ) from recycled residue from food industry (soy crushing; breweries, potato industry, sugar beet leaf, citrus juice producers, etc.)

8 Growth in global dairy demand Canada, USA & Mexico 2 Central-America & Cariben 11 Rest of Europe 4 EU 10 Russia & GOScountries 6 Middle East Asia Source: Rabobank South America Africa Until 2024 global dairy demand will be between 2.6% to 2.9% per annum. Growth will be driven mainly by L America, Africa, India and Oceania. The EU behind India will be one of the key production regions in milk volume. (Financieele Dagblad: 7 July 2014) Australia and New Zealand in billion kg milk

9 BUT Growth perspectives are hampered by serious global challenges 850 mln people undernourished, 1.5 bn obese Growing scarcity in natural resources By 2030 the world needs 50% more foods (FAO) Food waste in supply chains is about 30% mln households depend on dairy farming - Farmers are aging (57 years on average) 9

10 How do we bring responsible entrepreneurship and sustainability into practice on the basis of a vision on society? 10

11 Helping to solve three global challenges.. Food and nutrient security for a fast growing world population Helping small farmers in dairy worldwide (aging farmers is a major issue) Building more efficient & sustainable food supply chains

12 Milk, by nature, contains essential nutrients. By offering trustworthy and tasty dairy products FrieslandCampina contributes towards safeguarding food and nutrient security. FrieslandCampina also strives to limit the pressure on the sources of natural raw materials and the environment.

13 Important messages from Food & Agricultural Organisation (FAO) 8 August 2012, Rome - Immediate action to promote sustainable diets and food biodiversity so as to improve the health of humans and of the planet is urged in a book just published by FAO and Bioversity International. Regardless of the many successes of agriculture in the last three decades, it is clear that food systems, and diets, are not sustainable, says Barbara Burlingame, Principal Officer of FAO s Nutrition and Consumer Protection Division, in a preface to the book, Sustainable Diets and Biodiversity. 26 November 2013, Rome Milk and dairy products hold huge potential to improve nutrition and livelihoods for hundreds of millions of poor people across the world, according to a new FAO publication launched today.

14 And what about affordability of milk and dairy? DV: daily value

15 Strategy route2020: Growth & value creation Aspiration To bring the essential nutrients of natural dairy to people worldwide To be the most attractive dairy company for member farmers Value-drivers Dairy-based beverages Infant & toddler nutrition (B2B, B2C) Branded cheese Strongholds & geographic expansion Foodservice in Europe Basic products Benefit platforms Growth & development Daily nutrition Health & wellness Functionality Capabilities Talent management Milk valorisation Innovation Business model & cost focus Foundation Goodness of dairy Chain advantages Sustainability The way we work & safety

16 The CSR Strategy House Our navigation tool to build a sustainable dairy business grass to glass

17 Our CSR targets:

18 CSR targets FrieslandCampina relevant to the UN development agenda:

19 The CSR Strategy House Our navigation tool to build a sustainable dairy business grass to glass

20 Key developments 2013 Nutrition & health Education about healthy nutrition and a healthy lifestyle Over one million children reached through World Milk Day, the school milk programme, lesson programmes, JOGG and local initiatives Less sugar, salt and fat in products Reducing the salt and fat in cheese; Introduction of Optimel Puur the first yoghurt drink without added sugar or sweetener Disaster Relief Partner Programme Emergency (food) aid for victims of natural disasters and refugees in partnership with The Netherlands Red Cross and with the efforts of our employees and member dairy farmers

21 Working on childen s health in rural areas October 8, 2013 FrieslandCampina Vietnam's healthy journey Vietnam - Started in mid-2013, the journey of Two million milk boxes initiated by FrieslandCampina Vietnam has covered a long way, reaching out to millions of mothers and children especially in rural areas. The journey is part of FrieslandCampina s commitments to improving nutrition conditions, health and stature of Vietnamese children. According to the Southeast Asia Nutrition Survey 2013 (SEANUTS) that FrieslandCampina has carried out together with local research institutes, over 50% of Vietnamese children have suffered a nutritious imbalance, of which malnutrition among rural kids is much more critical than those in cities. Therefore, FrieslandCampina Vietnam launched the two-million-milk-box journey and 90 nutrition festivals to contribute to comprehensive development of Vietnamese children and improve knowledge of nutrition for parents in rural areas. As of the end of August, the program had come to over 800 villages and communities while nearly 70 nutrition festivals had been organized, drawing participation of over 130,000 mothers across the country.

22 November 7, 2012 Nutrition study reveals hidden hunger amongst kids in SE Asia New study reveals hidden hunger among Malaysian children Professor Poh Bee Koon: While overweight and obesity are easily observable among local children, results from SEANUTS highlight something deeper. Results from the largest and most extensive nutrition and health study ever done in Southeast Asia have revealed critical nutritional deficiencies among children under age 12 across the region. The South East Asia Nutrition Survey (SEANUTS) of 16,744 children in four of the largest countries in the region Malaysia, Thailand, Vietnam and Indonesia was presented at a regional conference co-hosted by the Nutritional Society of Malaysia (NSM) and Universiti Kebangsaan Malaysia (UKM) in Malaysia. The recently concluded study, which started more than two years ago in close cooperation with FrieslandCampina s R&D organization, spotlights an important nutrition and health issue in Malaysia known as hidden hunger. Overall, the local children may appear healthy or even overfed. However, they still suffer from a significant lack of nutrients such as vitamin D and calcium; essential components for the growth and development of these youngsters.

23 Insufficient dietary intakes A high percentage of children have insufficient intake of nutrients like calcium, iron, vitamins C and D 23

24 Insufficient dietary intakes and lack of oudoor activity A high percentage of children have insufficient intake of nutrients like calcium, iron, vitamins C and D 24

25 Malnutrition requires a nutrient approach, not a calorie approach

26 The CSR Strategy House Our navigation tool to build a sustainable dairy business grass to glass

27 FrieslandCampina s Dairy Development Program supports the development of local farmers Enabling dairy farmers to optimize their business to raise income and bring dairy production to a higher volume and quality Sharing knowledge and experiences with local dairy farmers to further develop dairy farming in Asia and Africa. Creating added value for local dairy farmers, local, central and regional authorities, member dairy farmers and local communities. Various forms of cooperation possible

28 Key developments 2013 Dairy development in Asia and Africa Sino-Dutch Dairy Development Centre China Agricultural University and Wageningen UR for the establishment of a research and knowledge centre Farmer2Farmer programme Exchange of knowledge and experience between member dairy farmers and dairy farmers in Thailand, Malaysia and Indonesia Dairy Village Programme Indonesia Collaboration agreement with the Indonesian government to increase local fresh milk production 130,000 small farmers reached with support programmes

29 And we need to keep on pushing the green innovation agenda Renewable energy Digesters Mineral efficiency Green transportation Biogas as truck fuel 29

30 Opening Innovation Centre Wageningen on FAO s World Food Day 2013