Presentation

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Our vision
Our vision is to be the leading dairy company in Europe through considerable value creation and active market leadership to obtain the highest possible milk price.
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Our mission
Our mission is to offer modern consumers natural, milk-based food products that create inspiration, confidence and wellbeing.

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Our values

LEAD At Arla Foods we take the lead, we show the way in all our actions! It is about being passionate in what we do!
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SENSE At Arla Foods we have a sense for each other, the consumers and the world around us!

CREATE At Arla Foods we create and are innovative in building competencies, products and market relationships!
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Our promise

Closer to Nature
Product | Consumer We must make nature available to everyone

Our promise

Company | Society We must let nature direct our company

Milk
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Ingredients

Packaging

Production

Distribution

Corporate commitment
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Our quality programme Arla Gaarden

Milk composition Food safety

Arla Gaarden is to ensure that the milk and other food products are of a high quality and are produced responsibly

Animal welfare
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Environmental consideration
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Arla Foods facts

Arla Foods is a cooperative owned by approximately 7,600 Swedish and Danish milk producers Turnover 2009: DKK 46 bn. (5.53 bn) No. of employees 2009: 16,231

Milk intake 2009: from ownership: 6.147 billion kg totally: 8.660 billion kg
Arla Foods has production facilities in 13 countries and sales offices in a further 20 countries.
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Turnover by products
Total DKK 46.2 billion (GBP 5.530 M)

Others 6.5% Butter and spreads 12.9% Ingredients 11.8% Fresh products 44.3% Cheese 24.5%

Arla Foods 2009

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Arla Foods ownership

Number of owners
14,000 12,000

Arla Foods is a cooperative owned by approximately 7,600 Swedish and Danish milk farmers

10,000
8,000 6,000 4,000 2,000 0 2004 2005 2006 2007 2008 2009
Arla Foods 2009

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Employees across the world

Number of employees
25,000 20,000 15,000 10,000 5,000 0 2004 2005 2006 2007 2008 2009
Arla Foods 2009

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Arla across the world

Argentina,
Bangladesh, Brazil, Canada, China,Denmark, Dominikan Rep., Estonia, Finland, France,Germany, Greece, Holland, Italy, Japan, Korea, Kuwait, Libanon, Malaysia, Mexico, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sweden, UK, United Arab Emirates, USA, Vietnam
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= countries with production and sales

= sales offices only

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Our core markets

UK, Denmark, Sweden, Finland, Holland and Germany

Helsingfors Stockholm

rhus Leeds

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Strategic focus areas

Expand core markets

3 global brands (Arla, Castello, Lurpak) Double product development budget

Develop sales of whey proteins

Reduce CO2 25 % (2020)

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1st focus area

We want to create the best dairy company for 250+ million consumers in Northern Europe/UK
Desired position in the core markets Nr. 1 in UK Nr. 1 in Sweden Nr. 1 in Denmark Nr. 2 in Finland Nr. 2 in Holland Top 3 in Germany
Growth Markets Russia, USA, China, The Middle East/North Africa and Poland
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5th focus area

We want to reduce our CO2 emissions by 25% before 2020

-25%
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Food production Transport

Packaging

CO2
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In primary agriculture we will work with our co-operative members, research institutions and industry organisations to achieve as high a CO2 reduction on dairy farms, as possible

An agricultural co-operative
The owners (7,625)

3,838

3,787

Membership democracy: one person, one vote.

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Membership districts (50)

24

4 regions
82

Board of Representatives (140)

3 regions
58

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The Board of Directors (14)

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Arla Foods 2009
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Arla Foods amba

The owners
Membership districts 4 regions
Board of representatives

3 regions

Board of Directors Executive Management Group Corporate Centre & Global Business Services Consumer Nordic
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Global matters that extend across the Arla organisation are handled by Corporate Centre for long term development, and Global Business Services for operational support. Arla also has four Business Groups for production, innovation and sales.

Consumer UK

Consumer International

Global Categories & Operations

Arla Foods Global Ingredients*

*) subsidairy
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Arla, seventh largest in the world

Turnover of dairy products in 2009 (EUR billion)

Merger in Jan. 2009

Type of company Private Member-owned

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10

15

20
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Source: Rabobank International, June 2010

Development in the number of milk producers

25000 20000 15000 10000 5000 0 25000 20000

Sweden

15000 10000 5000

Denmark

Arla in Sweden
1990 1995 2000 2003 2005 2007 2008 2009

1990

1995

2000

2003

2005

2007

2008

Milk intake has not fallen at a corresponding rate because many farms are increasing their production.
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2009

Arla in Denmark

Current Swedish dairies

Annual milk received billion kg 2009
Co-operative dairies
Arla Foods amba Sknemejerier 1 894 353

Private dairies
stgta Mjlk Wapn AB Em Mejeri Hjordnra Mejeri 24 10 7 4

Milko
Norrmejerier Falkpings Mejeri Gefleortens mejerifrening Gsene mejerifrening Sju Grdar
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292
192 89 36 18 5

Jrna Mejeri
Skrvngens Bymejeri

0,5
0,4

Source: Svensk Mjlk

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Thank you

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