Arla Foods Annual Report 2020

Management Review Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance Our Performance Review Our Consolidated Financial Statements Our Consolidated Environmental, Social and Governance Data EUROPE Our European commercial segment delivered record-high branded growth of 5.9 per cent in a year of extreme Covid-19 volatility in the market. Growth was driven by significantly increased in-home consumption and e-commerce sales with 9.5 per cent strategic branded volume driven revenue growth in retail, which more than compensated the foodservice reduction following lock-downs during the year. Growth was driven in particular by the Arla® brand with 3.4 per cent, LurpakⓇ with 15.9 per cent and StarbucksTM with 32.4 per cent. The Calcium transformation journey continued to strengthen our competitiveness in Europe. Revenue, EURM 6,413 2019: 6,353 Strategic branded volume driven revenue growth 5.9% 2019: 2.9% STRATEGIC BRANDED VOLUME DRIVEN REVENUE GROWTH BY COUNTRY UK 13.1% 2019: 8.8% Germany 7.1% 2019: 2.6% + Sweden 2.5% 2019: 0.7% NL, B, F 9.8% 2019: 5.2% 25 ARLA FOODS ANNUAL REPORT 2020 Brand share, EURM Revenue split by country, 2020 54.1% 2019:53% 16% 16% 5% 5% + Denmark 5.1% 2019: 0.4% Finland -7.3% 2019: 3.2% ■UK ■Sweden ■Germany Denmark Netherlands, Belgium and France ■Finland 21% 37% 2020 2019 37% 36% 21% 21% 16% 17% 16% 16% 5% 5% 5% 5% "2020 WAS INDEED A SPECIAL BUT POSITIVE YEAR FOR OUR COMMERCIAL EUROPEAN BUSINESS. COVID-19 HAD A HIGH IMPACT ON THE DAIRY MARKET, AND WE MANAGED THE SIGNIFICANT CHANGES WELL. BASED ON EXCELLENT WORK FROM ALL EMPLOYEES ACROSS FUNCTIONS WE STRENGTHENED OUR BUSINESS WITH RECORD- HIGH BRANDED GROWTH, MARKET SHARE GAINS AND STRONG CUSTOMER SERVICE DURING A VERY VOLATILE YEAR." Peter Giørtz-Carlsen, Member of the Executive Board, and Chief Commercial Officer, Europe

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