ABF in China

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Associated British Foods in China ????????? 200
9 Prepared by ABF China Business
Development
2
ABFs Global Presence??????????????????
Associated British Foods is a diversified
international food, ingredients andretail group
with sales of 8.2 billion and 96,000 employees
in 44 countries ???????????82???(?830????),?44????
96000???
3
Ranked by Market Capitalization?????????????
1
2
3
4
5
?? ??
???? ??
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Group at a glance??????
Sugar Agriculture ????
Grocery ??
Ingredients ??
Retail ????
5
Early Days in China?????????????

• Twinning's imported tea from China since early
  18th century
• ???????????18???????????,??????????????????

• AB Mauri was one of the earliest western
  investors in China
• ?????????????????????????,??1985?????????????

• Today
• ??

6
25 Years Development ???????????
7
China Revenue reaches 5.6B in 2008/0908/09???????
????????56????
Note Excluding global sourcing from China
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Over 10,000 Employees in China ?????????1??
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Invested more than GBP 600 millions???????????6??
?
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Business Locations Across the Country30??????????
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Overview Sugar???? ??

• Ranked No.6 sugar producer
• ???6????????

• 11 mills in China
• ????,??????6?????,????5?????

• Improved operating efficiency
• ??????????,?????????

• 750,000 tons output in last campaign
• ???????75???

12
Overview Agriculture???? - ????,??????

• Ranked one of the top 5 MNC feed companies in
  China
• ???5??????????

• 6 mills in China
• ?????6????,??42????,???????

• Self Grow pilot in the North
• ???????,?????????,???????

• Specialized animal feed based on agriculture
  co-products
• ?????????????,?????????

13
Overview Yeast???? - ??

• Ranked No.2 yeast producer in China
• ???2????????

• 5 plants in China
• ?????5?????????

• Serving both modern bakeries and traditional
  steam bun makers
• ???????????????????,??????

• Increasing presence in baking ingredients, oils
  and fats
• ??????/?????????????????

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Overview Beverages???? ??

• Oval tine No.1 malt drink brand
• ???????????????

• Lacovo No.1 for local seniors
• ?????????????????????????

• Twinnings Official tea supplier to HM the
  queen
• ??? ???????????,1837?????????????????

• 2 factories in Shanghai
• ?????2????,??????45?????,1?????,???100??????

15
Overview Primark ???? ????

• No.1 U.K. retailer by volume
• ???????1?????,??35?????????????

• China is No.1 source
• ??????????

• China based sourcing team
• ??????????

• China based ethical team
• ??????????????

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Overview Other businesses???? ????

• Top brand in Australian baking industry Wuhan
  bakery supplies KFC and retailers in Central
  China
• ??????????????????????????????????????

• Jasol Industrial cleaning from Australia
• Jasol?????????????????????

• AB Enzyme - Fabric softeners and food ingredients
• ????????????????,???????,??,????,??,?????

• Ohly No.1 in yeast extracts
• ?????????????,???????(???),????,??,???????

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China Strategy?????????

• To develop business where group capabilities add
  value????????????????
• To recruit, retain and develop quality
  people???????????????????
• To exploit our Chinese procurement base for our
  global benefit????????,???????

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Rural benefits from ABFs investment?????????????
????????
Example Contribution to local economy in
2008/09 ??08/09????????????????
Payment to Cane/Beet growers (100M
RMB) ????????????(????)
Income tax and VAT (100M RMB) ??????????(????)
North (Beet)

South (Cane)
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Technology transfer in agriculture????????,??????
,??????
Example Beet output per mu ????????
China today ????????
U.K. today ??????
Short-term Target ??????????
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Eco-efficient Wissington model??????????????????
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Food safety alliances?????,????????,??????

• Strict in-house testing and production management
  to ensure quality
• ?????????????????,????????????,?????????

• Sourcing reliable raw material from other ABF
  operations in China e.g. arable, sugar, yeast,
  etc.
• ?????????????????????,?????????,???,??,????

• Collaborating with down-stream partners i.e.
  farms and retailers for traceability
• ????????????????????,??????????,???????,??????????
  ????

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Sustainable development and environmental
protection????,????,??????????

• ABF uses renewable sources for over 50 of its
  energy usage
• British Sugar is the first sugar manufacturer to
  certify carbon footprint with Carbon Trust and
  the Department for Environment, Food Rural
  Affairs of U.K. government
• ????50??????????????
• ????????????????????????????????????????,?????????
  ????

(British Sugar and its bio-ethanol plant)

• In China, ABF has cut water usage at its cane
  sugar mills by around 25 and energy usage by
  some 10 in two years. ABF has invested heavily
  on waste water treatment and is assessing the
  feasibility of using renewable energy
• ??2??,??????????????,??????????????10,?????25??
  ?????????????????,??????????????????????

(BSO China invested in waster water treatment)
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Message from Chief Executive????
????????????,?????!????????????????????????,??????
??????????????? It gives me great satisfaction
that we can demonstrate the scale of our
involvement in China, where we are a long-term
investor. We have steadily grown our interests,
both in terms of the number of sectors we operate
in and the scale of our investment. This
continuing steady development is a mark of the
commitment we have to our Chinese
interests. ??????????????????????,???????????????
?????????????! I am proud that we have been able
to help in China's outstanding growth and
development over this period and look forward to
continuing to work with our Chinese partners in
the future. ??? ????? George Weston Chief
Executive
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END