Co-operative Entrepreneurship 2012

Transcription

1 Co-operative Entrepreneurship 2012 Jan Willem Straatsma Manager projects and sustainable dairy farming

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

3 Our milk By nature, milk is one of the richest sources of food. We process the milk, supplied by our member dairy farmers, into a wide range of dairy products. PAUZE

4 We are a multinational dairy company wholly owned by Zuivelcoöperatie FrieslandCampina Our farmers

5 Our co-operative base 14,800 member farmers form one of the oldest dairy co-operatives in the world, the owners of FrieslandCampina. Sustainable value creation for the members consists of milk price, capital payment and addition of members reserves on name.

6 14,800 member dairy farms

7 A young company in name, but we have a long history

8 Governance structure

9 Piet Boer Chairman of FrieslandCampina I am expecting as a representative of our 20,000 member farmers also shareholders our company FrieslandCampina to deliver tangible results in three different areas: Return on Investment 1. Continuity (we have a 140 yrs heritage) 2. Successfully embedding FrieslandCampina in the societies where we operate. (stay aligned with stakeholders expectations)

10 The role of our cooperative Fully integrated Entrepreneurial differentiation Opportunities for competitive dairy entrepreneurs Farmers are fully guided by their cooperative Stay strong together Guarantee collective licence to produce Classic co-operative Collective valorisation Company Royal FrieslandCampina N.V. 10

11 Organisation

12 What we do

13 Our customers and consumers Consumers around the world Retail chains, wholesalers, local shops Professionals in the hotel, restaurant, café and bakery segments Food producers and pharmaceutical companies

14 Our world of brands Branches in: Belgium Germany France Greece Great Britain Hungary Italy The Netherlands Austria Romania Russia Spain Saudi Arabia United Arab Emirates Ghana Nigeria China Philippines Hong Kong Indonesia Malaysia Singapore Thailand Vietnam United States of America Worldwide Ingredients

15 Key figures in millions of euros Results movement Net revenue 8,972 8, % Operating profit % Profit % Balance sheet Total assets 5,299 4,770 Group equity 2,071 1,749 Ratios Interest coverage ratio Net debt / EBITDA Solvency 39.1% 36.7%

16 Key figures Employees movement Average number of FTEs 19,484 20, % Member farmers Member dairy farms 14,829 15, % Members 20,375 21, % Milk Milk supplied by members 8,821 8, % Total payment milk member farmers 10,266 10, %

17 Company Dairy revenue Our position 2010 dairy revenue, in billion Euro s 1. Nestlé -Switzerland 2. Danone - France 3. Fonterra - New Zealand 4. Lactatis - France 5. FrieslandCampina - Netherlands 6. Dean Foods - USA 7. Dairy Farmers of America - USA 8. Arla Foods - Denmark 9. Kraft Foods - USA 10. Unilever - Netherlands/UK 11. Saputo - Canada 12. Meiji Dairies - Japan 13. DMK - Germany 14. Sodiaal France 15. Parmalat - Italy 21,2 12,3 9,1 9,1 8,8 8,3 7,4 6,9 5,3 5,1 4,3 4,1 4,0 4,0 3,9

18 Strategy route2020

19 Our strategy Aspiration Value drivers Dairy-based beverages Help people move forward in life with natural dairy nutrition IFT (B2B, B2C) Branded Cheese Strongholds & geographic expansion To be the most attractive dairy company for member farmers Foodservice in Europe Basic products Benefit platforms Growth & development Daily nutrition Health & wellness Functionality Growth and valuecreation Capabilities Talent management Milk valorisation Innovation Business model & cost focus Foundation Goodness of dairy Chain advantages Sustainability The way we work

20 We need to generate profit and valorise member milk Profitability The objective of a business with no member milk is to generate profits above our EBIT hurdle The objective of our member milk intense businesses is to valorise milk at positive EBIT margins Member milk usage

21 Fundamental global need for healthy food Milk is one of the most nutrient-rich foods Sustainability As a leading multinational dairy business, we aim to contribute to sustainable production We want to show leadership in the field of Corporate Social Responsibility by means of: Health & nutritional value Sustainable value chains Development of dairy farming Sustainable dairy farming Tackling nutrient deficiency & obesity More efficient use of natural resources Asia, Africa Sets the standard

22 Global challenges ahead for dairy farming and processing sector Growing world population Volatile energy markets Food security & food inflation Need for sustainable energy Scarcity in natural resources Sustainability Obesity & malnutrition Global warming Nature and biodiversity at risk

23 Key sustainability issues at the farm 20% of cows never outside CO 2 Renewable energy Methane Methane Sustainable feed (soy usage) Ammonia Energy and climate Cow is key Biodiversity 25% claw problems 25% udder problems Phosphate and Nitrogen 23 The most pressing sustainability issue on the dairy farm are: 1) green house gas emissions 2) animal welfare 3) sustainable soy, 4) mineral balance (manure) 5) ammonia Impact on water quality

24 Responsible Dairy Farming 5 modules -140 meetings with 6,000 farmers -Pilot projects started mid Action plan ready & agreed by member farmers end of 2011 Energy & Climate Health & Welfare dairy cows Nature conservation, landscape (protect biodiversity) Phosphate (Minerals) Cows in the meadow

25 Open farm days: a pleasant way to show our transparency Hundreds of thousands of Dutch consumers are having a day out at our dairy farms annually Picknick, guided farm tours, cuddle corner with calves, dairy product taste sessions, children festivities and events, education about farm life and nature conservation Supported by our Campina dairy brand

26 This is what sustainable dairy farming brings Larger access in the international dairy market Improved sustainability Maintaining appreciation of the dairy farms Economically powerful dairy farms 26

27 Royal FrieslandCampina