Arla Foods Consolidated Annual Report 2021

15 Arla Foods Consolidated Annual Report 2021 / Strategy / Achievements of our Calcium programme ACHIEVEMENTS OF OUR CALCIUM PROGRAMME In 2018, we launched our four-year transformation and efficiency programme, Calcium, to accelerate Arla's strategy by transforming the way we work, spend and invest. In its final year in 2021, Calcium continued to create efficiencies and was a crucial mitigating factor in alleviating the effects of inflation on our business. We concluded the programme with EUR 634 million total savings*. Calcium Calcium delivered much more than savings, it truly made the way we work, spend and invest smarter. Here are some key transformations from the past four years: € ☐ ☐ ☐ ☐ 634 EURm total savings, excl. inflation * 2021:155 2020:143 2019: 141 2018: 195 ла * ELD Contents III A OWNER/FARMER Savings and efficiencies contribute to improving the milk price SUPPLIERS We significantly reduced the number of suppliers and increased compliance with ordering policies. ADMINISTRATION A new level of transparency by deep diving to the details of our spend enabled us to spend where it matters. We significantly reduced costs that do not directly contribute to our products. SALES AND MARKETING We now spend less on developing campaigns and focus more on reaching consumers. Our content is now developed cheaper, faster and better in our in-house digital studios, the Barn. We also developed more efficient promotional tools that help us create more effective sales and rebates campaigns. LOGISTICS With the help of increased transparency into logistics data, we optimised the distribution to customers - route by route- creating value for us and our customers PRODUCTION We created profound change at every site and in every role. We shifted our focus to the efficiency of the individual production line and to overall equipment efficiency to ensure significant drop in waste. We also reduced complexity and share more products across markets. OO CUSTOMERS AND CONSUMERS Better service and more sustainable products Read more in Our performance review * Calcium savings including inflation in 2021: EUR -66 million. Total Calcium savings including inflation: EUR 287 million.

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