FONTERRA AT A GLANCE

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1 FONTERRA AT A GLANCE

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3 AN INTRODUCTION TO FONTERRA We re united by a fundamental belief in the power of dairy to make a difference. WE RE A GLOBAL DAIRY NUTRITION COMPANY A CO-OPERATIVE OWNED BY 10,500 NEW ZEALAND FARMING FAMILIES AND SUPPORTED BY 22,000 DEDICATED PEOPLE AROUND THE WORLD. Our home is New Zealand, where we ve been dairy farming for more than a century. We share our products with more than 140 countries around the world. WITH CARE AT EVERY STEP FROM OUR FARMS TO YOUR HOME That s our Dairy for Life promise. We protect the natural goodness of dairy at every step. Our Co-operative spirit is fuelled by a can-do attitude and a collaborative nature that comes from farming families who together have made New Zealand a world-leader in dairy. As the world s largest dairy exporter, Fonterra is behind the brands you know and love, from Anchor TM, Anlene TM and Anmum TM to other local brands. We also provide dairy ingredients to leading food manufacturers and work with farmers in key regions supporting local dairy industries to provide the freshest products. Everything we do is about working hard to be the world s most trusted source of dairy nutrition. We make a difference in the lives of customers, consumers and communities and help ensure a prosperous and sustainable future for generations of farming families in New Zealand and around the world. Dairy for Life is a promise to make the most of the goodness in dairy for you. It means we take care of the land, waterways, animals, and communities and work to be the best in dairying at every step from our farms to your home. By 2025, we want to make a difference in the lives of two billion people around the world. It s why we re focused on three key areas: Responsible Dairying, Dairy Excellence and Nutrition for Life. RESPONSIBLE DAIRYING is about taking care of the land, waterways, animals and communities that help us make great milk. DAIRY EXCELLENCE is about being the best. We use our expertise and ingenuity to produce the highest-quality dairy products for today and tomorrow. NUTRITION FOR LIFE is about sharing the goodness of dairy with more people around the world. Copyright Fonterra Co-operative Group : December

4 DAIRY FOR LIFE IS OUR PROMISE RESPONSIBLE DAIRYING DAIRY EXCELLENCE We are taking care of natural resources for future generations by championing the health of our farms and waterways, looking after our animals and building thriving communities where we live and work. We are doing this through: Supporting the Sustainable Dairying: Water Accord, a commitment to New Zealand to enhance the overall performance of dairy farming as it affects fresh water. Providing on-farm initiatives that support the good work our farmers are doing to meet environmental and animal welfare expectations and achieve a world-class, sustainable milk supply. Reducing the energy we use in our factories and investigating alternative fuel sources to reduce our emissions Sharing our dairy expertise through Fonterra Dairy Development to support the growth of sustainable dairy production in key markets where we operate Investing NZ$20 million over 10 years in restoring natural ecosystems through our Living Water partnership with the Department of Conservation in New Zealand. Bringing community initiatives to life by providing financial grants in New Zealand and Sri Lanka to hundreds of community groups every year, through our Fonterra Grass Roots Fund programme. We use our expertise and ingenuity to produce the highest-quality dairy products for today and tomorrow. We re constantly exploring the potential of dairy so that we can create new ways for you to enjoy its natural goodness. No matter where we are in the world, we ensure the uncompromising standards we use in New Zealand are always applied. From growing the grass and raising the cows, to making our products, we take care to protect the natural goodness of milk. For more than a century, New Zealand has been a leader in dairy. With generations of experience, we know how to produce the goodness of dairy, and we work together to deliver nature s best to people all over the world. We share our ingenuity with our customers and communities all around the world, working together to break new ground and set new standards. NUTRITION FOR LIFE Dairy is an incredible source of nutrition, which is why we want to share its natural goodness with the world. Nutrition for Life is our commitment to make great products and provide nutritional education so you can make the best choices for you and your family. We make the most of the goodness in dairy, so that we can enrich the lives of people across all stages of life. In New Zealand, we provide free nutritious milk and help educate children on healthy eating through our Fonterra Milk for Schools programme. So far, we ve provided 68 million packs of Anchor TM milk and counting. Consumers all over the world want to know what is in their food. We ensure that the labelling on our products meets all global food labelling standards so consumers can be certain of what is in our products and where it comes from. Copyright Fonterra Co-operative Group : December

5 OUR GLOBAL BRANDS Fonterra is the over-arching brand of our Co-operative, a brand we are building to be the world s most trusted source of dairy nutrition. Under the Fonterra brand, we have five globally leading brands. These brands provide high-quality dairy commodities, breakthrough consumer and foodservice products, and support our farmers in maintaining and growing a world class, sustainable milk supply. Fonterra Farm Source leverages the strength and expertise of the Co-operative to create greater advantages on-farm. We are supporting our farmers every day to maintain and grow a world class, sustainable milk supply. NZMP TM is the dairy ingredients brand of Fonterra, supplying many of the world s leading food companies with solutions ranging from milk powders and butter to functional ingredients such as specialised proteins for sports and nutritional beverages, and tailored cheese for foodservice applications. Anchor TM provides delicious everyday products. It has number one market share in New Zealand and Sri Lanka, with a presence in Australia. It has a long history in market, starting back in Anlene TM provides advanced dairy nutrition for strong bones, supporting freedom of movement. With a 20-year track record as the leading bone health product in Asia, it s the only clinically proven milk product that can claim to reduce bone breakdown in four weeks. Anmum TM is a leading brand of infant formula and specially formulated milk drinks for women. It has a number of specialised products and is a leader in our Asian markets including number one in the maternal category in Malaysia, Philippines, Thailand, Singapore, Hong Kong, Taiwan and Guangzhou in Greater China. Copyright Fonterra Co-operative Group : December

6 WE RE A WORLD-LEADING DAIRY EXPORTER, SHARING THE GOODNESS OF DAIRY WITH THE WORLD. PROCESSING We processed more than 23.7 billion litres of milk* REVENUE Our revenue is NZ$17.2B* $ 17.2 B 23.7billion MILK COLLECTION We collect 85% of the milk in New Zealand* 85 % WORLD S LARGEST DAIRY EXPORTER EXPORTS We have products in over 140 markets 140 *As at 31 July 2016 FONTERRA FACTS* FARM We have 10,500 New Zealand farming families who own Fonterra. We collect 18 billion litres of milk in New Zealand, and 5 billion litres across the rest of the world. MILK COLLECTION A milk tanker can hold about 25,000 litres of milk. At peak, more than 500 milk tankers collect up to 85 million litres of milk per day. MANUFACTURING We have 33 manufacturing sites in New Zealand, with extensive processing capacity in the Middle East, Sri Lanka, Malaysia, Australia and South America. We have the largest dryer in the world, capable of processing 200,000 litres of milk every hour. INGREDIENTS Our natural mozzarella can be made straight from milk, in one day rather than a couple of months taken with conventional processes. Our ingredients are used in various products, from baby formula to Specialised proteins for sports and nutritional beverages. CONSUMER AND FOODSERVICE Our new mozzarella plant creates enough cheese to top more than 300 million pizzas a year. We have leadership positions in our consumer and foodservice business in key categories in New Zealand, Malaysia, Sri Lanka and Chile. FOR MORE INFORMATION VISIT Copyright Fonterra Co-operative Group : December

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