Nourishing Ideas Nourishing People Cargill Confidential Cargill

Nourishing Ideas Nourishing People Cargill Confidential

Cargill at a Glance Cargill Founded 1865 Ø Grain warehouse in Iowa Cargill Confidential Core Capabilities Developed ØRisk Mgmt ØSupply Chain Mgmt ØGlobal Mgmt Core Value Established ØTrustworthy ØCreative ØEnterprising TODAY Ø$59 Billion+ in Gross Sales ØOver $1 Billion in Net Earnings ØNet Worth >$9 Billion Ø 97, 000 Employees in 1000 Locations Core Behaviors ØCustomer Focused ØInnovative ØHigh Performing Integrated Food Products and Food Service Company

Geographic Presence North America 37% of net worth 50, 889 employees Latin America 16% of net worth 15, 123 employees Cargill Confidential Europe/Africa 36% of net worth 15, 763 employees Asia/Pacific 11% of net worth 15, 186 employees

Strengths of Cargill’s Businesses • • Cargill Confidential Reputation for integrity Financial soundness Knowledge of the food system Building for long-term success

Culture & Behaviors • Ethics/Guiding Principles • Total Quality • Food Safety • Customer Oriented • High Performance • Innovation Cargill Confidential • Engaged and empowered work force • Customer/Consumer Insight • Community Involvement

Changing Market Environment • Agri-food Industry faced with significant changes and challenges – – Increasingly complex business environment; faster pace of change Customers/competitors consolidating Greater reliance on outsourcing/more sophisticated suppliers Pressure to deliver top line growth through new product intros vs. product extensions – Shifting power to consumers (health, wellness, taste, convenience) – Margin pressures; over capacity Cargill Confidential

Corporate Strategy Guidelines • • • Cargill Confidential Private ownership Focus on agriculture and food A+ credit rating Operating managers Grow our competencies Maintain basic beliefs

Year Four of a 10 -Year Plan Strategic Action “By 2010, Cargill will be the recognized global leader in providing our agricultural and food customers with solutions that enable them to succeed in their businesses. ” -Warren Staley memo, February, 1999 Cargill Confidential

Our Plan – Strategic Action Capabilities Commodities Transactions Broad Diversification - Customer Needs Solutions Relationships Agri-food chain as our center of gravity 10 year journey, long-term perspective, but short-term urgency Internal education: explore, discover, create, deliver Cross-organization collaboration and transparency Restructuring and aggressive cost management Re-focus our portfolio on Ag/Food (exit Rubber, buy Agribrands, form Food System Design) Cargill Confidential

Corporate Business Unit Focus Employee Focus Collective Cargill Confidential

Three Areas of Strategic Activity Cargill will provide Food Chain Customer Solutions in the following areas: Customer Solutions Supply Chain Management Basic Nutrition Building Blocks Food Applications Nutrition & Health Existing Cargill Food Chains These new areas of activity would need to be incorporated into Cargill’s existing businesses. Source: Cargill Strategic Intent Presentation, June 2000 Cargill Confidential

Innovative Solutions Women’s and Men’s Bread with Advanta. Soy. TM Energize Sport Drink with Trehalose Performance Breakfast Soy Signature Bar NUT-NOTSTM Cargill Confidential

Outback Steakhouse Cargill Confidential

The world's first manmade fiber from 100% annually renewable resources. A fiber that not only touches your skin but also touches your soul. Cargill Confidential

Focus on Our Strategic Accounts General Mills Cargill Confidential

Success Story - Safety Cargill reached a safety milestone Cargill’s safety index measures the frequency and severity of work-related injuries based on the number of hours worked. It decreased to a record 1. 7 in fiscal 2003. Cargill Confidential

Supply Chain Management The Customer Satisfaction/ Efficiency Paradox March 2, 2004 Cargill Confidential

Grain Distribution Example New Product development Supply Chain Optimization Raw Material Input Raw Material Production Raw Material Logistics/ Storage Processes/Organization • Grain Technology Processing Materials/Cash Information originated from country • Transported through elevator system • Exported and distributed to the customer Cargill Confidential Manufacturing Distribution Risk Management Customer End User/ Consumer Product Assurance

Grain Processing Example New Product development Supply Chain Optimization Raw Material Input Raw Material Production Raw Material Logistics/ Storage Processes/Organization • Grain Technology Processing Materials/Cash Information contract grown and originated from country • Transported through elevator system • Processed into food ingredient • Distributed to food manufacturer Cargill Confidential Manufacturing Distribution Risk Management Customer End User/ Consumer Product Assurance

Fully Integrated Meat Example New Product development Supply Chain Optimization Raw Material Input Raw Material Production Raw Material Logistics/ Storage Processes/Organization • Specialty Technology Processing Materials/Cash Manufacturing Information formulation fed to animals in feedlot • Animals tracked through feedlot to slaughter plant • Processed to product specifications • Distributed to further processing facility • Distributed to grocery or food service channel Cargill Confidential Distribution Risk Management Customer End User/ Consumer Product Assurance

Grain Distribution Discussion New Product development Supply Chain Optimization Raw Material Input Raw Material Production Raw Material Logistics/ Storage Processes/Organization • Grain Technology Processing Materials/Cash Manufacturing Information Distribution Customer End User/ Consumer Product Assurance Risk Management originated from country • Transported through elevator system • Exported and distributed to the customer Satisfy customer’s expectation of ‘guaranteed free of’ at low cost Cargill Confidential

Grain Processing Discussion New Product development Supply Chain Optimization Raw Material Input Raw Material Production Raw Material Logistics/ Storage Processes/Organization • Grain Technology Processing Materials/Cash Manufacturing Information Distribution Customer End User/ Consumer Product Assurance Risk Management contract grown and originated from country • Transported through elevator system • Processed into food ingredient • Distributed to food manufacturer How to respond to customer dissatisfaction as a result of new technology implementation? Cargill Confidential

Fully Integrated Meat Example New Product development Supply Chain Optimization Raw Material Input Raw Material Production Raw Material Logistics/ Storage Processes/Organization • Specialty Technology Processing Materials/Cash Manufacturing Information Distribution Customer Risk Management formulation fed to animals in feedlot • Animals tracked through feedlot to slaughter plant • Processed to product specifications • Distributed to further processing facility • Distributed to grocery or food service channel Satisfy consumer’s demand for safe, low cost meat Cargill Confidential End User/ Consumer Product Assurance

Thank you! Jenny L. Verner Vice President Supply Chain Management Cargill Jenny_Verner@cargill. com 952/742 -5034 Cargill Confidential