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Ambitions and strategic objectives

Customers:		Employees:
efficient and sustainable feed solutions		developing for our future

Ambitions To offer our customers sustainable and healthy feed solutions for their animals, through a range of products and concepts geared towards achieving optimum business results.		Ambitions To provide a safe and stimulating work environment fostering employees’ engagement and allowing all employees to develop and attain their full potential and create a space for innovation.

Strategic objectives To supply safe products, through the implementation of Nutrace, the unique Nutreco feed-to-food quality standards and protocols. To offer innovative products and feed programmes. To leverage global purchasing power and nutritional knowledge to create value for customers. To conduct our business in an environmentally sustainable manner.		Strategic objectives To extend development opportunities to all employees through training and career opportunities. To further develop our remuneration policy, setting the company up for success in our quest for talent in all countries, markets and areas of expertise. To develop a strong and appealing local and corporate identity that will attract and retain talented employees.

Actions during 2009 Accelerated the implementation of new insights in the nutritional needs of farm animals, assessed the potential of alternative raw materials and developed more effective ways of managing feed use on farms. Demonstrated the effectiveness of feed additives to stimulate the immune systems of land animals and fish. Innovations from Nutreco R&D in 2009 led to many new products, product enhancements and improved customer service. Amongst these innovations were MicroBalance™ for salmonid feeds, Novalac, Newton and Rumenac ration calculation models and Fylax® Forte mould inhibitor for raw materials and compound feeds. For more details, see pages 44-45 of this report. Expanded the reach of Nutrace and Nutreco Procurement through recent acquisitions. Opened a new premix plant near Jakarta, Indonesia. The plant is a stepping stone for Trouw Nutrition in the Southeast Asian region, with potential to develop more opportunities in this growing market. Opened a state-of-the-art feed specialties plant in Mozzecane, Italy, that features a high level of environmental responsibility.		Actions during 2009 The global HR Leadership Team continued to share best practices and work together on projects such as P@CT (People & Career Tool) and e-recruitment. During the first months of 2009 P@CT was implemented globally in 29 countries and is available in seven languages. A new tool for job evaluation was devised to facilitate better international mobility in Nutreco and to support the management development processes. We successfully finalised this year our second two-year ‘Expanding Horizons’ programme, which focuses on developing our international talent. Implemented a policy to help management prepare for an outbreak of a highly infectious disease such as influenza caused by the H1N1 virus, also known as the Mexican flu and swine flu.

Shareholders:		Partners:		Society:
creating value by balancing risk and return		being a good partner to all stakeholders		doubling food production, while halving the footprint

Ambitions To improve the return on total invested capital and equity by means of growth of the operating result, both organically and through acquisitions, in combination with a strong cash flow and an efficient balance sheet.		Ambitions To achieve Nutreco’s objectives by being a good partner to stakeholders such as customers, suppliers, universities and NGOs.		Ambitions Nutreco will contribute to resolving the increasing problems of food security and climate change facing the world today.

Strategic objectives To create value for shareholders by holding leading positions in animal nutrition and fish feed in combination with an efficient capital and tax structure that leads to a return on capital employed before tax of at least 15%. An operating result (EBITA) as percentage of revenues of 5%. A net debt/EBITDA ratio of less than 3. An interest coverage above 5. A net debt/equity ratio lower than 1. To pay out a dividend in the range of 35-45% of the result available to holders of ordinary revenues. To ensure that communication of share price-sensitive information is timely made, balanced and accurate, and is disseminated in accordance with all applicable legal, regulatory and stock exchange requirements.		Strategic objectives To develop new products and concepts by partnering with customers, suppliers and scientific institutes. These products are to contribute to a more efficient performance of our customers businesses and help them to improve their profits and results regarding health, food safety and quality. To enter into long-term supply agreements with suppliers and customers in order to guarantee Nutreco’s customers high-quality feed based on a sustainable use of natural resources.		Strategic objectives To continuously assess and work to improve Nutreco’s role in society by increasing the positive contributions and reducing the impacts of its activities. To include sustainability targets in the remuneration package of all Nutreco managers, making sustainability an integral part of Nutreco business life. To focus on progress in the Nutreco sustainability themes: responsibility towards natural resources including climate change, feed-to-food quality, Nutreco people and investment in the community.

Actions during 2009 Nutreco focused on growth in the higher- margin feed specialties, feed additives and fish feed businesses. Acquisitions in animal nutrition and fish feed further strengthened the business for a total consideration of approximately EUR 50 million. Nutreco conducted a company-wide programme to reduce working capital and operational costs. Net working capital as % of revenues improved to 3.0% from 5.1% in 2008. Improvement of key financial ratios. The net debt/EBITDA ratio strengthened to 1.0 (2008: 1.57) and the net debt/equity to 0.30 (2008: 0.56).		Actions during 2009 In June 2009 Nutreco organised the fifth Agri Vision conference. This brought together 375 leaders of agribusinesses from 44 countries to hear from 20 top business managers and agricultural scientists during three half-day sessions. The theme of Agri Vision 2009 was the challenge of feeding the world in 2050 with nine billion people and many having higher expectations for animal proteins in their diets. Nutreco Procurement established strategic partnerships with suppliers. In 2009 Nutreco provided information and cooperated in the production of the first environment report of the European Feed Manufacturers’ Federation.		Actions during 2009 Nutreco developed a sustainability policy. Sustainability targets are included in the remuneration package for 2010 of Nutreco managers, including a clear target to reduce the carbon footprint of the Nutreco operations by half in 2015. An Innovation and Sustainability Committee as a Committee of the Supervisory Board was created with three Supervisory Board members. Skretting participated in the Salmon Aquaculture Dialogue meeting organised by WWF USA held in Boston, Massachusetts, in March 2009. Nutreco was, and is, an active member in the Round Table on Responsible Soy, the Dutch Soya Task Force and the Round Table on Sustainable Palm Oil. In February a project in Bangladesh was launched with the aim of helping poor families move out of poverty through integrated agriculture. Nutreco is providing both finance and expertise.

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