Contents
                                            · FrieslandCampina in a nutshell
                                            · Working capital: expectations and analysis
                                            · Stakeholders: conditions and preferences
                                            · Finding the right approach: balancing act
                                            · Key learnings
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       FrieslandCampina in a nutshell
       General info:                                                      Working Capital relevant info:
       · Revenue: 11,6 billion euro                                       · Suppliers: big commodity suppliers, 
       ·                                                                     equipment producers and logistic 
          Facilities in 34 countries                                         providers
       · Export to over 100 countries                                     · Customers: retailers, distributors and 
       · Number of employees: 23,769                                         food producers
       · Number of member dairy farmers:                                  · Inventories: fresh products, cheese 
          18,261                                                             (ripening process), powders and IFT
       · Every day millions of consumers: 
          from mainstream dairy to IFT/Pharma
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       Working capital: expectations and analysis (1)
       What may be expected?:
       · Our treasury’s main mission is to become the ultimate business partner
       · Working capital is one of the “natural” areas where treasury is expected to 
          perform
       · Treasury is able to gather valuable “outside in” views on WC management from 
          financial institutions
       · A centralized treasury should be able to determine priorities and achieve 
          concrete results in a timely manner
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       Working capital: expectations and analysis (2)
       Analysis* – what is our starting position?:
       · Days payables outstanding (“DPO”): nine days longer than the peer group 
          average 
                 - including supplier finance program started up in 2013/14
       · Days inventory outstanding (“DIO”): five days shorter than the peer group 
          average
                 - World Class Operations Management (WCOM) program on-going
       · Days sales outstanding (“DSO”): four days longer than the peer group average
                 - no receivable purchase or factoring program in place
       *Based on 2017 figures
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       Stakeholders: conditions and preferences
       · Owners/Supervisory Board: no negative divergence from peers, risk averse in 
          terms of accounting and/or credit rating, SME’s treated fairly, no sale of the 
          company’s silverware
       · Executive Board: maximize balance sheet impact at the lowest possible costs 
          (EBIT)
       · Business units: also cost efficiency and minimal interference with key 
          commercial processes
       · Financial Shared Service Centers: minimize administrative and logistical 
          complexities
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