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Annual results 2016 Media presentation Amersfoort, March 2nd , 2017

Please turn your

handy on the silence mode

1

Locate the emergency exits 1 When the

fire alarm goes off: evacuate the building and go to an assembly point

3 Put your bags against the wall and out of the way. Do not block emergency exits

2

In case of emergency, call this number: #9 or 112 (handy)

4

!

Assembly point: Parking lot Berkenweg

5

Safety

2

Turbulent 2016

Political and economical instability in the Middle East and Africa

Constant low oil prices

Terrorist attacks

Regulation of phosphate US elections Brexit

Priorities 2016

3

Volume growth

in value-added products

Implementation of restructuring and efficiency measures

route2020 execution

Good growth in Southeast Asia and China

Strong recovery 2nd half-year with foil cheese and butter

4

2.8% volume growth in value-added products

FrieslandCampina in 2016

Milk supply increases with 7.1%

Acquisition majority stake Engro Foods Pakistan

Efficiency measures and cost reduction

Investments: 518 million euros

Africa: volumes and result under strong pressure

5

Profit before currency effects

+8.7%

Operating profit before currency effects

+3.0%

Revenue

11.0 billion euro (-1.9%)

Operating profit

563 million euro (-2.3%)

Profit

362 million euro (+5.5%)

Higher profit at lower revenue

Milk price 32.26 euro (-6.9%)

6

2016

34.64

28.38

2015

30.68

Member bonds

Performance premium

Meadow milk and special supplements

32.26

Per 100 kg of milk excl. VAT at 4.41% fat, 3.47% protein and 4.51% lactose

Value creation 3.44 euro (-2.5%)

7

Member bonds

Performance premium

Meadow milk and special supplements

Per 100 kilos of milk excl. VAT, at 4.41% fat, 3.47% protein and 4.51% lactose

2015 2016

0.43

1.28

2.25

3.96

3.53

0.44

1.25

2.19

3.88

3.44

2016

34.64

28.38

2015

30.68

32.26

Ecoligic milkprice 51.65 euro (-0.3%)

8

Ledenobligaties

Prestatietoeslag

Weidegang en bijzondere melkstromen

Per 100 kg melk excl. btw, bij 4,41% vet, 3,47% eiwit en 4,51% lactose

51,65

47.71

51.80

47.77

2016 2015 2015 2016

0.50

1.28

2.25

4.03

3,53

0.50

1.25

2.19

3.94

3,44

Consumer Products Europe, Middle East & Africa

9

in millions of euros

2016 %

Revenue 3,345 -9.1

Revenue before currency translation effects

3,491 -5.2

Volume development (%) -0.4

● Market shares in Europe improved

● Sales prices under pressure

● Negative currency effects Africa

● Volume growth in Europe, volume pressure in Africa

● Margin pressure in Europe

● Disappointing results Germany

Consumer Products Europe, Middle East & Africa

10

Campina shows farm life in virtual reality

Successful expansion Lattiz Campina: soft quark

Launch Frico in Hungary and Romania

Negative currency effects

Landliebe milk drinks Germany and Hungary in resealable bottles

Debic successful

Consumer Products Asia

11

in millions of euros

2016 %

Revenue 2,321 -0.3

Revenue before currency translation effects

2,355 1.2

Volume development (%) 5.9

● Acquisition majority stake Engro Foods in Pakistan

● Revenue stable

● Growth of market share in a number of key countries

● Volume growth in all countries

Consumer Products Asia

12

New in Indonesia: Frisian Flag condensed milk in pouch packaging with screw-on cap

New in the Philippines: Alaska Sweetened Condensed Creamer in sachets

Introduction of a new dairy drink for children in Vietnam

Foremost Omega Gold in Thailand Black&White Hong Kong #1 with marketing campaign Perfect Taste Perfect Moment

Acquisition majority stake Engro Foods in Pakistan

13

Second largest dairy company Pakistan

Flagship premium brand Olper’s

● Acquisition in line with route2020 strategy: build future markets

● Position in Central Asia

● Pakistani market

● growing middle income class

● increasing need for high quality milk

● increasing urbanisation

Consumer Products China

14

in millions of euros

2016 %

Revenue 565 27.0

Revenue before currency translation effects

588 32.1

Volume development (%) 37

● Friesland Huishan Dairy introduces Dutch Lady infant nutrition

● Expansion distribution Friso Prestige

● Black&White successful in tea shops

● Improved volume, revenue and profit

Consumer Products China

15

Member dairy farmers important for promotion Friso

Friesland Huishan Dairy: infant nutrition under the brand Dutch Lady

Prolongation cooperation Sino- Dutch Dairy Development Centre

Extension distribution of Friso Prestige

FrieslandCampina opens demo kitchen in Shanghai

Cheese, Butter & Milkpowder

16

in millions of euros

2016 %

Revenue 2,649 3.2

Volume development (%) 7.7

● Volume increases with 7.7 percent

● Strong growth butter specialities and added value cheese

● Good second half-year

● Export under pressure

● Successful introduction of meadow milk cheese

Cheese, Butter & Milkpowder

17

FrieslandCampina Export launches new Frico design

Increasing sales mozzarella Increase in sales private label meadow milk cheese

100 years FrieslandCampina Lutjewinkel where North Holland Gouda is being made

Sales growth special butter mixes Asia

Ingredients

18

in millions of euros

2016 %

Revenue 1,667 -3.1

Volume development (%) 5.4 ● Increase in share of turnover

value-added products

● Volume growth 5.4 percent

● Low prices negatively affect operating profit

Ingredients

Putting into service second part of the new production facility in Borculo

Protein-rich sport nutrition ingredient for top athletes which feeds the muscles longer

Launch Domo Refit Micellar Casein Isolate for medical drinks

Borculo: not only pyrolysis oil, but also biogas for creating steam

Partnership with Glycosyn for the development of new ingredients for infant nutrition

19

New calf milk powder: creates free airways and reduces inflammation

Apply AAA mindset & behaviour

Create fuel for growth

Enhance capabilities to win in the market

Ensure good business conduct

route2020: sustainable growth and value

creation

Expand the leading positions in growth areas

Protect the volumes in home markets

Build future markets

Better nutrition for the world, a good living for our farmers, now and for generations to come

Leverage our Dutch dairy heritage and unique milk chain in a sustainable way to win the hearts and minds of our customers and consumers

Further reduction added sugar and salt

21

Now and for generations to come

Better nutrition for the world

A good living for our farmers

Global Nutritional Standards

Education about healthy lifestyle

Start Farmer2Farmer- programme in Nigeria

18.750 farmers trained in Indonesia, Vietnam, Thailand, Malaysia, Nigeria, China

Value creation member farmers 3.44 euro

Water use - 2.4%

Energy consumption +4.3%

Greenhouse gas emission production and transport

-4.0%

Social responsibility nourishing by nature

Nourishing by nature in line with United Nations’ Sustainable

Development Goals

22

Sustainable Developments Goals 17 ambitious goals for responsible production and consumption, climate, sustainable communities, health and well-being as well as the fight against poverty and hunger

Signed by 193 countries

Relevant to FrieslandCampina:

● Following the update of route2020, in which we increase the focus on the dairy portfolio.

● Changes in the market for fruit juices require investments by a ‘new parent’ focussing on fruit drinks activities.

● The aim is to round off the investigation in 2017.

● Net sales 2016: 125 miljoen euro, employees: 200

● Evaluate non-strategic activities and participations

Investigation sale Riedel

Financial results 2016

Agenda

25

Part 1 – Key figures

Part 2 – Figures in perspective

Part 3 – Financial statements

Part 4 – Value creation

26

2016: key figures

+1.3%

+2.8%

Volumes

3rd party volumes

Added value volumes

-1.9%

+0.1%

Revenue

Development

Underlying growth

+7.1%

-6.9%

Milk

Member milk

Milk price

+1.3%

+6.0%

Result

Operating profit

Excl. currency effect

27

2016: key figures

Cash flow Investment Return Value

€ 3,544m

Return to members

Versus 2015

€ 3,44

-2.5%

€ 850m

-16.6%

€ 518m

-8.2% +0.9%

Operational cash flow

Versus 2015

Capex

Versus 2015

Value creation

Versus 2015

Agenda

28

Part 1 – Key figures

Part 2 – Figures in perspective

Part 3 – Financial statements

Part 4 – Value creation

Perspective

29

First vs second half-year

Volume development

Currency development

1447

10260

92

in millions of euros

30

Result HY2 2016

308

Other results /

Exceptionals

SG&A Marketing spend

GP Value added

GP Basic

Products

Result HY1 2016

255

Higher Perfor-mance

premium

Operating profit 2e HY +20.8%

Gap between guaranteed price and commodities in first half-year

20

22

24

26

28

30

32

34

36

38

Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

Kieler Rohstoffwert - index valorisation SMP & Butter

FrieslandCampina guaranteed price (per 100 kg milk)

31

Higher commodity prices in the second half-year

20

22

24

26

28

30

32

34

36

38

Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

Kieler Rohstoffwert - index valorisation SMP & Butter

FrieslandCampina guaranteed price (per 100 kg milk)

32

Perspective

33

First vs second half-year

Volume development

Currency development

Increased volume

member milk +7.1%

34

4.5%

HY1

HY2

2016

5,155

2014

9,453

4,819

4,634

2013

9,261

4,641

4,620

2012

8,860

4,560

10,774

5,488

4,300

+7.1%

6.4% 2.1%

5,286

2015

10,060

4,905

11.9%

2.5%

in millions of kg

Value added volume growth +2.8%

35

2016

Value added volumes (kg x mln)

Index vs. 2015

105

104

137

106

100CPEMEA

CPA

CHINA

CB&M

ING

Perspective

36

First vs second half-year

Volume development

Currency development

Negative currency effects on EBIT

37

2016 Translation

Revenue 11,001 -206 -1.9%

Operating profit 563 -30 -5.2%

In millions of euro

38

2016 Translation

Revenue 11,001 -206 -1.9%

Operating profit 563 -30 -5.2%

30

-5,2%

576 546

Lower translation

Operating profit 2015

Negative currency effects on EBIT

In millions of euro

39

2016 Translation

Revenue 11,001 -206 -1.9%

Operating profit 563 -30 -5.2%

107

30

Operating profit 2015

-5,2%

Lower translation

Currency effect on

cost prices

546 576

Negative currency effects on EBIT

In millions of euro

40

2016 Translation

Revenue 11,001 -206 -1.9%

Operating profit 563 -30 -5.2%

124

107

30

-5,2%

Operating profit 2016

563

Performance 2016

Currency effect on

cost prices

546

Lower translation

Operating profit 2015

576

Negative currency effects on EBIT

In millions of euro

Agenda

41

Part 1 – Key figures

Part 2 – Figures in perspective

Part 3 – Financial statements

Part 4 – Value creation

Income statement

42

2016 2015 %

Revenue 11,001 11,210 -1.9

Cost of goods sold -9,075 -9,210

Gross profit 1,926 2,000 -3.7

Advertising and promotion costs -540 -536

Selling, general and administrative costs -810 -802

Other operating costs and income -13 -86

Operating profit 563 576 -2.3

Finance income and costs -41 -43

Share of profit of joint ventures and associates

20 15

Income tax expense -180 -205

Profit for the year 362 343 +5.5

in millions of euros

Income statement

43

2016 2015 %

Revenue 11,001 11,210 -1.9

Cost of goods sold -9,075 -9,210

Gross profit 1,926 2,000 -3.7

Advertising and promotion costs -540 -536

Selling, general and administrative costs -810 -802

Other operating costs and income -13 -86

Operating profit 563 576 -2.3

Finance income and costs -41 -43

Share of profit of joint ventures and associates

20 15

Income tax expense -180 -205

Profit for the year 362 343 +5.5

in millions of euros

Net sales 2016 -1.9%: underlying growth 0.1%

44

20613

303313

Volume & Mix

Net sales 2015

11,210

Net sales 2016

11,001

FX - translation

11,207

M&A Selling prices

Underlying growth +0.1%

-2.7% 2.8%

-1.9%

-0.1%

In millions of euros

2016

Income statement

45

2016 2015 %

Revenue 11,001 11,210 -1.9

Cost of goods sold -9,075 -9,210

Gross profit 1,926 2,000 -3.7

Advertising and promotion costs -540 -536

Selling, general and administrative costs -810 -802

Other operating costs and income -13 -86

Operating profit 563 576 -2.3

Finance income and costs -41 -43

Share of profit of joint ventures and associates

20 15

Income tax expense -180 -205

Profit for the year 362 343 +5.5

in millions of euros

74

1075515325

30345

Gross profit 74 million lower due to currency effect

46

Other cost prices

Member milk

Selling prices

Volume & Mix

Gross profit 2015

17.8%

2,000 2,298

Gross profit 2016

Transact. Curr. Effect

2016 Translation effect

in millions of euros

17.5%

17.8%

2,000

Income statement

47

2016 2015 %

Revenue 11,001 11,210 -1.9

Cost of goods sold -9,075 -9,210

Gross profit 1,926 2,000 -3.7

Advertising and promotion costs -540 -536

Selling, general and administrative costs -810 -802

Other operating costs and income -13 -86

Operating profit 563 576 -2.3

Finance income and costs -41 -43

Share of profit of joint ventures and associates

20 15

Income tax expense -180 -205

Profit for the year 362 343 +5.5

in millions of euros

48

2016 2015

Net cash flows from operating activities 850 1,019

Investments -567 -570

Acquisitions -423 -312

Financing -192 -51

Net cash flow -332 86

Operational cash flows used for investments

In millions of euros

Acquisitions 423 million euro

49

Acquisitions

FKS Frischkonzept Service Increase of share from 49% to 100%

Engro Foods FrieslandCampina 342 million euro FMO / IFC 80 million euro

422 million euro

1 million euro

EUR 300 mln. Green Schuldschein

Sustainable investments

Sustainability

Financing follows route2020

50

EUR 150 mln. Credit facility

European R&D activities

Innovation

Institutional investors

Acquisition EUR 80 mln. and

USD 100 mln. facility

Acquisition Engro Foods

Agenda

51

Part 1 – Key figures

Part 2 – Figures in perspective

Part 3 – Financial statements

Part 4 – Value creation

In millions of euros

Increased return to members

52

4142415204

231

0.9%

3,544

Other Fat / Protein

components

’2 ct / 10ct regeling’

Higher Perf prem and MB

Increased milk supply

Decline guaran-

teed price

Total return to MF 2015

3,514

Total return to MF 2016

route2020: investeren leidt tot waardecreatie

53

…which will lead to continuous value creation

for the members

…requires growth

Friesland-Campina…

4 3

…through capex in capacity,

portfolio and acquisitions…

1 2

Growth in member

milk supply

54

Added value volumes +2.8%

4 3

1 2

2016: Growth in

member milk supply +7.1%

~ 950 million euro

Engro Foods and capex

~ 370 million euro

Further increase value creation

route2020: investments lead to value creation

Roelof Joosten

Outlook 2017

56

Persistent stagnation of the economies in oil-exporting countries, geopolitical tensions and negative currency effects

In the Netherlands, milkproduction is expected to decrease; global milk production is expected to rise somewhat.

Prices for basic dairy products will continue to fluctuate

Market circumstances remain challenging

57

Questions?