Arla Foods Consolidated Annual Report 2021 slide image

Arla Foods Consolidated Annual Report 2021

3 Arla Foods Consolidated Annual Report 2021 TABLE OF CONTENTS MANAGEMENT REVIEW 04 2021 Performance at a glance 05 Message from the Chairman and the CEO 39 PERFORMANCE REVIEW 38 Market overview Performance overview 06 Message from the Chairman: 45 Financial outlook Creating the future of dairy from the ground up 07 Message from the CEO: 47 Solid performance and sustainability 49 Board of Directors action in another volatile year 52 08 Highlights 54 10 Five year overview STRATEGY GOVERNANCE Governance framework Executive Management Team Management remuneration 55 Diversity and inclusion RISK AND COMPLIANCE Risk management 58 59 Risk overview - Critical risks Our external reporting comprises of three reports: Annual report, sustainability report and environmental, social and governance (ESG) report. Each includes content tailored to its specific audience, and cross-references to the other reports where relevant. 2021 BUILDING STRENGTH IN AVOLATILE MARKET A LURPAK Annual report Our annual report is our detailed annual account of the company's performance, strategy and governance. It includes our consolidated financial statements and our externally audited ESG figures. 60 Risk overview - Major risks 13 Our business model 14 Good Growth 2020 prepared us for the future 15 Achievements of our Calcium programme 61 182222 16 Trends shaping our strategy 62 Future 26 Our new strategy 19 Lead sustainable dairy 20 Scale to grow Build growth platforms 64 Collaborate for efficiencies OUR SUSTAINABILITY JOURNEY 24 25 26 Our sustainability strategy Stronger planet - Our environmental ambition Sustainability on farms 27 Stronger people - Our societal ambition OUR BRANDS AND COMMERCIAL SEGMENTS Europe 29 Our global brands 32 33 International 34 Arla Foods Ingredients 35 Global industry sales Navigation in the report Brings you back to the table of contents ☑Read more in the report Our work with controls and compliance Responsible and transparent tax practices CONSOLIDATED FINANCIAL STATEMENTS Table of contents 65 Primary financial statements 73 Notes 117 Statement by the Board of Directors and the Executive Board 118 Statement by the auditors ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) DATA 120 Table of contents 121 Sustainability performance at a glance 122 Committed to transparent action 123 Fiveyear overview 124 Notes 136 Statement by the auditors 137 Glossary 139 Corporate calendar Consolidated Annual Report Sustainability report Arla Our sustainability report describes how we work with social, ethical and environmental commitments, and also serves as our annual communication on our progress towards the UN Global Compact, and the statutory statement on CSR in accordance with section 99a of the Danish Financial Statements Act. Sustainability results 2021 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT Arla 2021 Sustainability Report BUILDING SUSTAINABLE SOLUTIONS Arla Environmental, social and governance (ESG) report The ESG report focuses on presenting our ESG data and corresponding methodologies and accounting policies in detail. The ESG report carries a reasonable assurance statement by EY.
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