Isn’t it time to see things differently?

DeLaval company presentation The farming challenge

No matter how hi-tech a solution is, it has Some see a challenge to provide benefits for a farmer, contributing to herd health, increased yield and We see opportunities profitability, while having as little impact as possible on the environment.

At DeLaval we believe that food production should people – a number that is expected to touch be sustainable. By this we mean reducing the 9 billion by 2050 – it is our responsibility to strive to environmental footprint of , while improving meet these challenges in a sustainable manner. food production, profitability and the well-being of the people and animals involved. Or, put another When it comes to improving sustainability of dairy way, to increase resource efficiency and do more farming we are currently focusing on six areas – with less. feed, animal health, manure, energy, water and working conditions – where we feel we can make a We believe this is a necessity based on the current difference to the overall sustainability of dairy farms. challenges faced by our industry as a whole. As part of a value chain that needs to increase productivity to ensure food safety and security for 7 billion

Milk contains 18 of the 22 nutrients we need on a daily basis.

The Food and Agricultural Organization of the United Nations (FAO) has identified three main actions to reduce greenhouse gas emissions on dairy farms: improve herd management, manure management and feed efficiency. Our focus has never changed

Our founder, Gustaf de Laval, was not only an outstanding inventor he was a man who saw no limitations. He was Some see the past convinced it was possible to improve the working conditions on farms through technology. He believed, as we do today, We see the future of that it is possible to make a difference. Since the foundation of AB Separator in 1883 we have served farmers, focusing on improving their productivity and profitability.

Some manufacturers go to exceptional lengths in design engineers can follow tests and trials closely, order to understand their customers. At DeLaval discussing performance and other factors with the we have kept the very same dairy farm that farmers and taking onboard any suggestions that our founder opened in 1894, fully operational. can help to deliver optimal results. Hamra Farm, and the thousands of international guests who visit it every year, have given us a Furthermore, what was instrumental to our success unique perspective on dairy farming and the daily in the early days, and helped us to become a global 1878 1917 1998 2002 2008 2010 challengesCentrifugal that farmersVacuum face. operated Voluntary supplier,DeLaval cell is stillHerd just Navigator as importantAutomated today milking – to deliver separator milking machine system VMS counter DCC rotary AMR the best results for farmers we have to combine the This farming experience is applied throughout latest technology with the complexities of farming. all our operations. For instance, many DeLaval This philosophy has enabled us to achieve unique products, services and systems are tried and tested results, delivering everything from the world’s most at our farm before being launched. And because the efficient cow brush, to the world’s most advanced farm is located on site at DeLaval headquarters, our system.

2003 2010 Swinging Automatic 2002 cow brush milking rotary DeLaval cell AMR™ 1917 counter DCC Vacuum operated milking machine

1878 Centrifugal separator 1998 Voluntary milking system VMS

Hamra farm, opened in 1894 by Gustaf de Laval, currently produces 12,000 kg of milk per cow and year. 75% Analysis Innovation is our strength 93% Conservative estimates put the savings 74% on offer with Herd Navigator technology 47% at up to 250 euros per cow, per year. 58%

Some see nuts and bolts We see innovations that simplify dairy farming

Our innovations are born from meeting thousands of farmers every day – it’s the insights they provide us that are interpreted into solutions that make farmers’ lives easier and more profitable.

When we launch a new product, service or initiative, it’s because it will have a positive impact on the operations of a farm. This was the case when we developed our first revolutionary solution in 1878 and it’s still the case today. This is clearly highlighted with AMR™ and Herd Navigator™, just two of many outstanding solutions that are revolutionising dairy farming.

AMR™, the world’s first Automatic Milking Rotary, takes away much The swinging cow brush helps keep of the mundane work involved when milking cows, improving the cows healthy, productive and content on the farm. Since launching the world’s working lives of all those involved at the farm and freeing-up time for first swinging cow brush in 2003, over farmers to focus on effective farm management. Herd Navigator™ is 45,000 of them have been sold around an early detection system for the herd. By analysing milk it identifies the globe. Today, over 5.4 million cows’ backs are scratched daily with one. any cows that are sick or on heat well before it’s noticeable with the In order to double the amount of protein naked eye. produced on farms by 2050, new ways of harvesting milk have to be found. The revolutionary AMR™ is just one way in which DeLaval is helping farmers harvest milk more effectively. Everything is integrated Every day around 16 million litres of milk are harvested with DeLaval VMS stations around the world.

The adoption of existing and emerging innovation to dairy production can help accelerate milk productivity to align population and demand growth. 2011 World Livestock Report issued by the U.N. Food & Agriculture Organization, FAO.

DeLaval feeding wagon Herd Navigator™ by DeLaval

DeLaval VMS® DeLaval cooling tank

DeLaval hoofcare DeLaval milk filters

At DeLaval we have always had a holistic view of dairy farming. This means going beyond looking at a simple process or operation to see how everything on the farm is integrated.

The result of this can be best witnessed in our And that’s just on the farm, in the future, different Some see smart farming systems which are being rolled out stakeholders, such as veterinarians, nutritionists, step-wise over the coming years. Smart farming service engineers, farm management experts, enables the different elements within milking, and dairy processors, will all be able to remotely equipment feeding and the barn, to speak to one another in connect to the system to deliver services that will order to create the optimal environment for cows and further enhance the farming operation. With this in We see farm ultimately maximise milk yield and profitability. place, food production can become a truly management connected business. Products and expertise go hand in hand

Close to a thousand DeLaval mobile shops and delivery trucks can be spotted on farms around the world, every day. Every farm is different, that’s why InService™ is flexible: so it can be customized to the needs of your farm and the way you run it. InService™ Some see A farm consists of five packages. InService™ InService™ InService™ We see a unique Milking VMS® Cooling situation and ways to InService™ InService™ improve farmers’ lives Feeding Manure

Improving farmers’ lives involves embracing modern ensuring the equipment is properly serviced by technologies, while having a comprehensive certified engineers as well as identifying ways to understanding of modern farming techniques. enhance the user experience, whether it’s through a remote app or user-friendly software. At DeLaval we have specialists in everything from chemical and composite materials to robotics and IT As farming is such a unique business, with management, system engineering, manure, feeding an endless number of factors that can impact and veterinary science. Together with our teams in the operations – from climatic conditions to the field our onsite experts are responsible for developing frequency and type of feed that animals are fed – everything from cooling systems to detergents, hoof we also offer specialised advisory services. With disinfectants, teat dips, milking liners, and many more experience from supporting farmers around the products that help optimise daily farming operations. globe, our consultants are experts in helping farmers do more with less, while protecting the Supporting customers does not begin and end with health of the herd. products. Optimising operations and improving the working lives of our customers is also about Together we make sustainable food production possible

Local sales organisation Major milk Eu (27) Manufacturing exporting 156 and importing Distribution

countries, 2011 Regional Head Quarter 1. New Zealand 2. EU (27) Research Head Quarter 3. United States 4. Australia Global Head Quarter 5. Argentina EU North America 1. China Expected milk 2. Russia 0.6% CIS consumption growth 1.4% 3. Egypt 1.8% rate 2012-2015 CAGR,% 4. Algeria Some see a 5. Mexico Source: Eucolait, Eurostat, 2012. Total milk production in millions of tons, Customer US 2011 89 India We see Represented 122 Middle East China in over 100 2.7% 4.7% a fellow markets North Africa India farmer 3.7% 3.5% Central America 1.8% Africa WE ARE WHERE YOU ARE. Our solutions are used 39 South East Asia Other Africa by dairy farmers around the globe every day. 4% South 3.6% As a leading supplier of solutions for professional food America 64 Global dairy top-20 producers, we offer you products, systems and services based on turnover, for all steps of milk production. South America 2.7% 2012 Don’t take our word for it – read a selection 1. Nestlé, Switzerland 2. Danone, France of dairy farmers testimonials on 3. Lactalis, France www.delaval.com/meetourcustomers 4. Fonterra, New Zealand Oceania Oceania 5. FrieslandCampina, Netherlands 0.9% 26 6. Dairy Farmers of America, US 7. Dean Foods, US 8. Arla Foods, Denmark/Sweden 9. Kraft Foods, US 10. Meiji, Japan 11. Unilever*, Netherlands/UK 12. Saputo, Canada DeLaval provides integrated 13. DMK, Germany solutions that cover not only cow 14. Sodiaal*, France but also sheep, goat and buffalo 15. Yili, China dairy farms to over 1,000,000 16. Mengniu, China customers around the globe. 17. Bongrain, France 18. Müller*, Germany 19. Shreiber Foods*, US 20. Land O’Lakes, US *= estimate. Source: Rabobank, 2012.

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DeLaval worldwide DeLaval in figures

DeLaval is a leading supplier of solutions that improve the performance of farms Net sales 2011 (million Euro): 955 for professional food producers. We support our customers in reducing their Local sales organizations: 35 Local sales organization environmental footprint while improving food production, profitability and the Independent dealers: 1,384 Manufacturing well-being of the people and animals involved. We offer products, systems and Markets covered: >100 Manufacturing units: 18 Distribution services for all steps of milk production. Our solutions are used by millions of R&D units: 3 Regional HQ dairy farmers around the globe every day. Installers: 1,388 Research & development unit Delivery trucks and mobile shops: 736 Global HQ DeLaval, alongside Tetra Pak and Sidel, is part of the Tetra Laval Group. Employees: 4,454

www.delaval.com DeLaval at a glance

Number of Local sales Manufacturing employees offices units 4,400 35 18

Market Mobile shops & presence delivery trucks >100 736

Research and Innovation centers 3

Our vision DeLaval Corporate Social Responsibility cornerstones are: We make sustainable food production possible Food for Development Our solutions Food for Development is an important part of DeLaval’s corporate DeLaval offers five Capital Goods systems: Conventional Milking social responsibility. The target is to achieve sustainable social Systems, Automatic Milking Systems, Cooling Systems, Feeding and economic dairy development by promoting public-private and Housing Systems and Farm Management Support Systems. partnership in developing countries. We are committed to helping DeLaval customers can also choose from a wide range of services customers, governments and community based organisations and consumables which are grouped in four portfolios: Liners & to provide milk to children around the world. A public-private Tubes, Farm Supplies, Services & Original Parts, Milk Quality & partnership is the best way to fight rural poverty and malnutrition Animal Health. through dairy development.

Focus on service Sustainable Dairy Farming In a competitive market, good customer service differentiates one Sustainable Dairy Farming is a DeLaval initiative to support company from another. To further strengthen the partnerships farmers do more with less. The goal is to reduce the environmental we have with our customers, we have created InService™. It is a footprint of farms, while improving milk production, farm trademark for service taking into consideration that every farm is profitability and the well-being of the people and animals involved. different and every farmer unique, whilst adapting the solutions to DeLaval believes this goal can be achieved by providing smart their particular requirements. technology and services to increase resource efficiency.

R&I Research and innovation has been essential to DeLaval’s steady progress. This is especially emphasised in product development, where the team works in close contact with a worldwide network of farmers, academics, dedicated research facilities, scientists, sales teams, authorised dealers and other agricultural experts.

Smart Farming Smart Farming is a DeLaval initiative aimed at influencing and shaping the future of dairy farming today. The goal is to accelerate the transition from milking management to global farm profitability management by harnessing emerging decision tools and automation technologies for better quality milk and profits.

Download the full CSR report on: www.delaval.com/en/About-DeLaval/Sustainability/ DeLaval Headquarters Send us an email (please write DeLaval International AB to us in English): PO Box 39 [email protected] SE-147 21 Tumba, Sweden Phone: +46 (0)8 530 660 00 Visiting address: Fax: +46 (0)8 530 689 00 www.delaval.com Gustaf de Lavals väg 15

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is a registered trademark of Tetra Laval Holdings & Finance S.A. and DeLaval is a registered trade/service mark of DeLaval Holding AB. The manufacturer reserves the right to make design changes. 53571204/eng-201210