Arla Foods Consolidated Annual Report 2021

14 Arla Foods Consolidated Annual Report 2021 / Strategy / Good Growth 2020 prepared us for the future GOOD GROWTH 2020 PREPARED US FOR THE FUTURE Contents Summing up Good Growth 2020 One year ago we concluded our Good Growth 2020 strategy. Despite Covid-19 and other unprecedented external impacts throughout the strategy period, Good Growth 2020 delivered above expectations on all four target KPIs, and continued to guide and support our business in 2021, a gap year between two strategical periods.. With the strategy we strengthened our competitiveness and our international presence, and we structurally improved the quality of our business by shifting volumes from low margin private label and industry sales into our higher margin branded retail and food ingredient business. As a response to unforeseen external impacts on our business, including depreciation of currencies, especially GBP and SEK, and the unstable fat and protein prices, we launched our savings and efficiency programme, Calcium, in 2018 to accelerate the Good Growth 2020 strategy. In 2019, we launched our new sustainability strategy, which focuses on improving the environment for future generations, increasing access to healthy dairy nutrition, and inspiring good food habits. As part of this strategy we defined clear pathways to reduce our carbon footprint and set ambitious, science-based reduction goals. KEY ACHIEVEMENTS Strategic branded volume driven revenue growth 4.5% Brand share 49.3% Target 2021:1-3% Target 2021: 50% STRUCTURAL SHIFT IN BUSINESS (percentage of revenue) 60% Non-branded revenue 50.7% International share 24.1% Target 2021:23.5% CO₂e emission reduction, SCOPE 1 AND 2 Non-branded revenue 25% CO₂e emission reduction, SCOPE 3 per kg of milk and whey 66 Our new strategy Future26 is largely built on the learnings and results from Good Growth 2020, while the lessons from the global pandemic are also reflected in our strategic thinking. 99 40% Branded revenue 49.3% Branded revenue Baseline: 2015 Science Based Target 2030: - 63% 2014 2021 7% Baseline: 2015. Science Based Target 2030: -30% > Read more about our Sustainability strategy Read more about our Cacium programme |||

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