Safety. Please put your phone on silent mode. Luggage to be placed against outer walls, not in the aisle

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1 Safety Check the emergency exits Luggage to be placed against outer walls, not in the aisle In case of fire alarm: leave the building Emergency number: or #9 (internal) Assembly point: Parking Berkenweg Please put your phone on silent mode 1

2 Annual results 2017 Royal FrieslandCampina N.V. Amersfoort, 22 February FrieslandCampina

3 General overview 2018 FrieslandCampina

4 Higher revenues, lower profit Revenue 12.1 billion euros (2016: 11.0 billion euros) Operating profit 444 million euros (2016: 563 million euros) Profit 227 million euros (2016: 362 million euros) Operating profit before currency effects 480 million euros (2016: 563 million euros) Profit before currency effects 243 million euros (2016: 362 million euros) 4

5 And strong increase in milk price to euro (+24.0%) Per 100 kg of milk excl. VAT at 4.41% fat, 3.47% protein and 4.51% lactose Meadow milk and special supplements Member bonds Performance premium Guaranteed price 5

6 Value creation decreases to 1.33 euro (-61.3%) due to adjustment profit appropriation and lower profit , Per 100 kg of milk excl. VAT at 4.41% fat, 3.47% protein and 4.51% lactose Meadow milk and special supplements Member bonds Performance premium Guaranteed price 6

7 Every day we nourish millions of consumers worldwide 7

8 Nourishing by nature is clear and comprehensive Better nutrition A good living for our farmers Now and for generations to come Better products Responsible marketing Transparent nutritional value labelling Education responsible diets Optimal milk valorisation Economic performance & profitability Dairy Development Programme Climate-neutral growth Sustainable purchasing Sustainable production Animal health & welfare Meadow grazing Biodiversity 8

9 Better nutrition CORE KPI s 2017 Compared to 2016 Balanced product supply 81% Product portfolio RFC guideline compliance 64% Global Nutritional Standards Balance basic nutritional products and indulgence products Vifit Sport protein-rich sports nutrition 9

10 Good living for our farmers CORE KPI s 2017 Compared to 2016 Value creation (in euros/100 kilos milk) 1.33 Number of local dairy farmers in DDP 20,347 Local dairy farms with 'satisfactory' rating 54% Big Push-programme in Punjab (Pakistan)

11 Now and for generations to come CORE KPI s 2017 Compared to 2016 Energy consumption (GJ/tonne product) 2.82 Greenhouse gas emission (kt CO 2 equivalent) 883 Sustainable agricultural raw materials 55% Green electricity 80% Pasture grazing 79.4% Greenhouse gas emissions (kt CO 2 equivalent) 12,098 Solar panels 310 member dairy farms

12 2017 in perspective Investments for long term growth Market Measures taken 12

13 2017 in perspective Investments for long term growth Market Measure taken 13

14 Investments for long term growth Sustainability throughout the chain China Higher compensation for meadow milk Solar panels Increased competition Government regulation New market balance Investment 60 million euros Investment 90 million euros 14

15 2017 in perspective Investments for long term growth Market Measures taken 15

16 Record high sales surpassing 12 billion euros, 10.1% increase Higher raw material prices Passed on in sales prices Influence on volume development Higher cost price for milk and other raw materials Largely compensated by higher sales prices But with a negative impact on volume development Cost prices +12.3% Revenue +10.1% Added value -1.9% 16

17 Mixed performance Volume Indonesia, Vietnam, Thailand and Africa Ingredients Butter China/Hong Kong Benelux and Germany Profitability Asia 17

18 2017 in perspective Investments for long term growth Market Measures taken 18

19 Measures taken in Q4 to restore growth and profitability Simplified organisation to gain speed and agility Four new global business groups Decentralised decision making Innovation close to the market New leadership Leaner head office 19

20 Measures taken in Q4 to restore growth and profitability Simplified organisation Sale activities Riedel Germany Friesland Huishan Dairy 20

21 Financial headlines 2018 FrieslandCampina

22 Agenda Key figures Figures in perspective Financial statements Members perspective 22

23 2017: higher revenue, lower result and higher milk price Volumes Added value volumes Revenue Revenue development Result Operating profit +2.9% -1.9% +10.1% +9.8% -21.1% -14.7% Excl. Engro / Riedel Return to members in euro Underlying growth Value creation in euro/100 kg Before currency effects Milk price in euro/100 kg 4,346m % -61.3% +24.0% versus 2016 versus 2016 versus

24 Agenda Key figures Figures in perspective Financial statements Members perspective 24

25 Figures in perspective 1. Structural investments 25

26 Structural investments for long term growth Sustainability throughout the chain Higher compensation for meadow milk Solar panels China Increased competition Government regulation New market balance Investment 60 million euros Investment 90 million euros 26

27 Figures in perspective 2. Pricing 27

28 Revenue %; underlying growth 9.8% (in EUR x million) 1, , Underlying growth 9.8% 12,110 Revenue 2016 Volume & Mix Selling prices Currency translation Acquisitions and disposals Revenue

29 Gross margin under pressure due to higher cost prices (in EUR x million) 17.5% 1, % 1,926 1,919-1, million euro Gross profit 2016 Cost prices Selling prices Value creation Other costs Currency translation Gross profit

30 Commodity prices decline in Q Mar Jun Sep Dec Mar Jun Sep Dec FrieslandCampina Guaranteed price (per 100 kg milk) Kieler Rohstoffwert - index valorisation SMP & Butter

31 Figures in perspective 3. Incidental items 31

32 Incidental items impact result with -90 million euros Write off participation China Huishan Dairy Impairment assets JV Friesland Huishan Sale activities Riedel completed Restructuring Germany Restructuring costs Total -90 million euro 32

33 Agenda Key figures Figures in perspective Financial statements Members perspective 33

34 Income statement (in EUR x million) Δ% Revenue 12,110 11, % Cost of goods sold -10,191-9,075 Gross profit 1,919 1,926 Marketing spend Selling, general and administrative costs Other operating costs and income Operating profit % Finance income and costs Share of profit of joint ventures and associates Income tax expense Profit for the year % 34

35 Capex mainly for growth and efficiency Capital expenditure (in EUR millions) Capex 2017 split by nature (in EUR millions) Replacement 128 Efficiency 181 HY2 276 HY Quality/ Safety / Sustainability Growth

36 Agenda Key figures Figures in perspective Financial statements Members perspective 36

37 Milk supply member farmers stable (in kg millions) 9, % -0.5% 6.4% 10, % 10,716 10,060 9,453 HY HY

38 Higher milk price in 2017 (in EUR/100kg) % Milk price 2016 Increase Guaranteed Price PP and MB (Prior profit split) Revised profit split Weidegang and other supplements Milk price

39 leads to record high total return to members (in EUR/100kg) 1, % ,346 3,544 Total return to MF 2016 Increase guaranteed price Decrease milk supply (-0.5%) Perf prem and MB Weidegang +50ct Other Total return to MF

40 Business groups perspective 2018 FrieslandCampina

41 Consumer Products Europe, Middle East & Africa Positive development Southeast Europe Recovery North- and West Africa Volumes Benelux and Middle East under pressure Germany challenging Volume growth Foodservice Europe Riedel divested Key figures millions of euros, unless stated otherwise 2017 % Revenue 3, Revenue before currency translation effects Operating profit Price effect on revenue 1 Volume trend (percentage) , Volume-mix effect on revenue compared to 2016

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44 Consumer Products Asia Growth in Indonesia, Vietnam, Hong Kong and Thailand Intensified competition by local players Difficult year for Engro Foods in Pakistan Key figures millions of euros unless stated otherwise 2017 % Revenue 2, Revenue excl. acquisition 2, Revenue excl. acquisition and before currency translation effects 2, Operating profit Price effect on revenue 1 Volume trend (percentage) Volume trend excluding acquisition Volume-mix effect on revenue Compared to 2016

45 FrieslandCampina Hongkong #1 in FMCG IFT: #1 with Friso Evaporated Milk: #1 with Black&White Ready to Drink Milk: Co-#1 with Dutch Lady Adult Nutrition: Optimel fastest growing brand in 17 45

46 Friso Prestige available in Hong Kong 46

47 Consumer Products China Significant volume growth Friso Prestige Friso Gold market leader digital sales, volume under pressure Dutch Lady, Friso Gold Prestige approved Increasing importance online activation Black&White continued to grow in catering segment Key figures millions of euros, unless stated otherwise 2017 % Revenue Revenue before currency translation effects Operating profit Price effect on revenue 1 Volume trend Volume-mix effect on revenue Compared to 2016

48 Chinese registration certificate for Friso Gold/Prestige and Dutch Ladyinfant nutrition

49 Cheese, Butter & Milkpowder Volume growth to Private Label Cheese & Zijerveld VLOG Cheese introduction, further growth meadow cheese Sales prices of butter at record high Price fall Q4 impact profitability FrieslandCampina Export under pressure Key figures millions of euros, unless stated otherwise 2017 % Revenue 3, Operating profit 1 Price effect on revenue 1 Volume trend (percentage) Volume-mix effect on revenue Compared to 2016

50 Cheese, Butter & Milkpowder highlights Freshlock packaging Milner Gerkesklooster capacity expansion Royal Hollandia for pizza industry 50 VLOG Nature Cheese Grated Cheese expansion Genk Launch Zijerveld Cheesius

51 Ingredients FrieslandCampina DMV successful in the sale of caseinates and protein-rich specialties for sport nutrition Volume growth FrieslandCampina Domo, result under pressure DFE Pharma experienced growth Competitive creamer market Margin improved due to cost controls and improvements in efficiency Key figures million of euros unless stated otherwise 2017 % Revenue 1, Operating profit ~ Price effect on revenue 1 Volume trend (percentage) Volume-mix effect on revenue (percentage) Compared to

52 Ingredients New packaging line infant nutrition in Beilen Introduction organic Vivinal GOS Syrup 52

53 2017 was a challenging year Higher revenue, lower profit and strong increase in milk price Non-recurring costs reduced profits in Q4 Ingredients and China show good progress Pressure on volume in Germany, the Netherlands and Belgium Measures taken: new basis for growth 53

54 Priorities 2018 Drive our purpose nourishing by nature Improve performance in consumer products Embed new organisation 54

55 Questions? 55

56 Annual results 2017 Royal FrieslandCampina N.V. Amersfoort, 22 February FrieslandCampina