FrieslandCampina

June 2017

Ynte de VriesSr. Program Manager Solar & SDF

2

2005 - now

FrieslandCampina

• Program Manager Sustainability

• Manager Cooperative Office

• Research & Development

FrieslandCampina at a glance

3

Member dairy farmersown the Company

18,906millionsof consumers

Every day

100 Export to over

countries

11.0 billioneuro revenue employees

21,92733

Facilities in

countries

Figures 2016

Worldwide

4Figures 2016* in millions of euro

3,523revenue *

1,053revenue *

169employees

6,046revenue *

NigeriaGhanaIvory CoastUnited Arab Emirates

SaudiArabia

Egypt

NetherlandsGermanyBelgiumGreeceHungaryRomaniaRussiaFranceSpainItalyAustriaUnited Kingdom

IndonesiaMalaysiaSingaporeThailandMyanmarVietnamPhilippinesChinaHong KongPakistanIndiaJapanNew Zealand

12,922employees

66facilities

United States of America

Brazil

7,786employees

36facilities

1,050employees

6facilities

6facilities

379revenue*

North and South America Africa and the Middle East Europe Asia and Oceania

Founding of Arnhemse Melk-inrichting

Founding of CCF in Leeuwarden

Friesche Vlag,Dutch Baby and Bonnet Rouge are registered for international markets

Founding ofCoberco inZutphen

Merger of Coberco, Friesland Dairy Foods, De Zuid-Oost-Hoek andTwee Provinciën

Acquisition of Nutricia Dairy & Drinks Group

Friesland Foods receives Royal designation on its 125th anniversary

Founding of the first dairy co-operatives

Founding of the De Meijerij Veghel / De Melkindustrie Veghel

Campina brand introduced Founding of Campina Melkunie

Acquisition of Südmilch(Heilbronn)

International launch of formation of international Campina brand and co-operative

Acquisition ofAlaska Milk CorporationPhilippines

Acquisition ofZijerveld and

Veldhuyzen B.V. and

G. den HollanderHolding B.V.

We have a long history…

5

18

79

19

13

19

19

19

65

19

97

20

01

20

04

20

13

20

12

20

08

20

01

19

93

19

89

19

47

19

26

18

80

20

15

Acquisition of Olam Ivory Coast and DEK

srl in Italy

Nine farmers take over acheese factory in the Dutch Wieringerwaard

20

20

20

14

Founding of joint venture Friesland

Huishan Dairy

Acquisition of mozzarella producer Fabrelac in Belgium

Acquisition of the activities

of Anika Groupin RussiaAcquisition of

IDB Belgium N.V.

18

71

Acquisition of 51% of the shares in Engro

Foods Ltd. in Pakistan

20

16

18,906 ambitious member farmers are the ownersof FrieslandCampina

6

The skills of our member dairy farmers underpin the quality of FrieslandCampina’swide range of dairy products.

Figures 2016

13,300 member dairy farms in the Netherlands, Germany and Belgium

7Figures 2016

From generationTo generation

Family business

An average of93 cows

78.9% Outdoor grazing

800,000 kilogramsof milk per year

An typical dairy farm in the Netherlands

Figures 2016

The Dairy Chain is our strength

DATA IN A FARMERS PERSPECTIVE

JUNE 2017

Smart Dairy Farming

video

/www.youtube.com/watch?v=7YHxt3h3hWIhttps://www.youtube.com/watch?v=7YHxt3h3hWIhttps://www.youtube.com/watch?v=ygGKTRKnYIk

SDF_movie_71216 EN-Subtitles.mp4https://www.youtube.com/watch?v=7YHxt3h3hWISDF_movie_71216 EN-Subtitles.mp4https://www.youtube.com/watch?v=ygGKTRKnYIkhttps://vimeo.com/207794241

Key missing element: unlocking data from the farm in a uniform and trusted manner

Graphic taken from slidedeck Harry Smit, Rabobank, june 2016

SMART DAIRY FARMING 3.0:

GOAL: ACCELERATING INNOVATION ON THE FARM

LOWERING TOTAL COST OF OWNERSHIP FOR DAIRY FARMERS

INCREASE EFFICIENCY OF DAIRY CHAIN

IMPROVING SUSTAINABILITY ACHIEVEMENTS OF DAIRY CHAIN

SMART DAIRY FARMING 3.0:

GOAL: ACCELERATING INNOVATION ON THE FARM

Farmer is owner of data

Agreements with data suppliers about data availability

1. Secured data ownership of dairy farmers

Stimulate use of sensor data and statistical data through data exchange

Farmer authorizes third parties for data use

Datahub managed by SDF Foundation

Open to third parties use Q4 2017

2. Sharing data through SDF Datahub

3. More efficiency and sustainability through applications Applications to increase efficiency on dairy farms

E.g. by increasing nutrition efficiency and reducing environmental impact

SMART DAIRY FARMING 3.0:

HOW TO GET INNOVATION FLYING

Support from key stakeholders/decision makers & KOLs

1. Governance

Sound business case, now and in the future

2. Finance3. Technology

A technically sound solution that works in practice

SMART DAIRY FARMING

BIG DATA MANAGEMENT THROUGH COOPERATIVE COLLABORATION

https://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwip7rKpoo7PAhXGxxQKHYqZCXEQjRwIBw&url=https://iidentify.net/company/agrifirm&bvm=bv.132653024,d.ZGg&psig=AFQjCNGYaKmiESVCN9KIy3JHBsv8DCHwbg&ust=1473922228945166http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi09O2Voo7PAhWDPBQKHSUGBKgQjRwIBw&url=http://www.boerderij.nl/Rundveehouderij/Nieuws/2015/7/4-procent-Holsteinpopulatie-drager-CDH-2658819W/&bvm=bv.132653024,d.ZGg&psig=AFQjCNFYXmes6xni7Zcr8D6FH9bjcioXfg&ust=1473922186865878

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FARMER

DATA

SUPPLIERS

DATAHUBStatistical data and sensor dataKnowledge from

knowledge institutes

Enterprise:

Efficient

Sustainable

Quality

Decision making information Data

= Increasing efficiency

SMART DAIRY FARMING 3.0: INCENTIVE FOR INNOVATION ON THE FARM

APPLICATION

SUPPLIERS

=

SDF Datahub does what the free market cannot do: unlock data from the farm in a uniform and trusted manner

Graphic taken from slidedeck Harry Smit, Rabobank, june 2016

SMART DAIRY FARMING 3.0:

STATUS JUNE 2017

• Program SDF 3.0 launched in March 2016

• SDF foundation is merged with association EDI-Circle

• LTO has become part of the SDF Foundation

• Connecting most important data streams within dairy chain

• Formulating ground rules for SDF Datahub and Data usage

• Building base for connecting other chain partners

• Further development of the SDF Datahub by Rovecom & VAA

• Informing chain partners, data suppliers and application suppliers

• SDF Foundation is owner ‘infobroker’ SDF 1.0

• SDF Foundation is owner ‘Agritrust’ authorization portal

• SDF is working on architecture and security of data streams through SDF Datahub

SMART DAIRY FARMING 3.0

SERVICE SDF DATAHUB Q4 2017

Farmers are able to authorize third parties to use their data

Data Suppliers can connect to the Datahub and deliver requested data

Application suppliers can connect to the Datahub en retrieve requested data

Datahub

Online cow data

Statistical data

Location based aggregated data

www.smartdairyfarming.nl