2009/2010

Tetra Laval_2009_2010.indd 1 2010-05-04 09.45

 DELIVERING
EVERYDAY EXCELLENCE
The global recession forced many of our customers
to cut down on investments. Instead, optimising and
reengineering the installed base has turned into a fine art.
The real recession heroes are the people who are
able to rethink, redesign and improve processes
and solutions already in operation.

As well as developing the solutions of tomorrow, we have

spent the last few years further developing the solutions of
yesterday. At Tetra Pak, Sidel and DeLaval we call that
delivering everyday excellence.

Tetra Laval_ALLA_2009_2010.indd 3 2010-05-04 11.20

 TETRA PAK TETRA PAK IN THE WORLD
PROTECTS WHAT’S GOOD

Tetra Pak is the world leader in liquid food

Machine assembly plants 11
processing and packaging. The business of
the company includes much more than the Production plants for packaging
packaging of liquid food products. Ice cream, material and closures 42
cheese, dry foods, fruits, vegetables and pet Number of countries covered >170
food are examples of what can be processed Market companies 41
or packaged in Tetra Pak processing and
Sales offices 78
packaging lines. By developing ambient
packaging, which preserves the nutritional R&D units 11
value and the taste of products, the distribu- Technical Service centres 41
tion of these food products to consumers Technical Training centres 16
has been greatly facilitated. Employees 21,672
Net sales in mio Euro 8,955

DELAVAL DELAVAL IN THE WORLD

WE DRIVE PROGRESS IN MILK PRODUCTION

DeLaval is a full-service supplier to dairy farmers. Local sales organisations 37

The company develops, manufactures and mar- Independent dealers 1,166
kets equipment and complete systems for milk Markets covered > 100
production and animal husbandry. Service and
Manufacturing units 16
sales of a wide range of accessories are also
key aspects of DeLaval’s operations. The com- R&D units 3
pany supplies highly efficient system solutions Sales and Service Personnel 1,464
for milking, herd management, animal traffic Installers 1,433
control, feeding, cooling, manure handling, Delivery trucks and mobile shops 670
ventilation and energy recovery.
Employees 4,077
Net sales in mio Euro 805

SIDEL SIDEL IN THE WORLD

PERFORMANCE AND INNOVATION.

THE RESPONSIBLE WAY.

The Sidel Group is one of the world leaders in Number of plants 25

solutions for liquid food packaging. From its R&D units 8
two fields of strength, blow moulding and filling,
Service units 31
Sidel offers the equipment that is key to custo-
mers’ decision-making in the purchase of Number of countries covered >190
complete bottling lines. Sidel has expanded Employees 5,151
its activities to cover three major categories Net sales in mio Euro 990
of packaging: glass bottles (disposable and
returnable), plastic bottles (PET, HDPE and PP)
and metal cans.

Tetra Laval_ALLA_2009_2010.indd 4 2010-05-04 11.20

 TOP 10 MARKETS IN PACKAGES
Total number of Tetra Pak packages sold in 2009: 145,030 mio
TETRA LAVAL INTERNATIONAL
China Tetra Laval International is the financial support
Brazil
USA & Canada and control function for the Board. This organisa-
Iberia tion is responsible for financing the Tetra Laval
Germany & Switzerland Group, Group tax planning and managing the legal,
Russia & Belarus
Arabia
financial and equity structures. Tetra Laval Inter-
Mexico national proposes and ensures compliance with
Japan Group reporting processes, undertakes all Mergers
Italy
& Acquisitions work and plays the lead role in
5,000 10,000 15,000 20,000 25,000 30,000 corporate governance, internal audit and risk
Mio packs
management.
WELL PROVEN PROCESSING SYSTEMS
Total number of delivered processing units 2009: 1,699
Other 2%
Prepared Food 11%

Cheese & Powder 15% Dairy 46%

Ice Cream 11%

Beverages 15%

TETRA LAVAL
MILK PRODUCTION 2009 The head of each industry group has operational
management responsibility for their own industry
Thousand metric tons
160 000
group and therefore reports directly to the
140 000 Tetra Laval Group Board. The Group Board is
120 000 responsible for the overall strategy of the Group
100 000
and for controlling and supervising all of its
80 000
60 000
business operations.
40 000 Larry Pillard is Chairman of the Board. The Chair-
20 000 man ensures the implementation of strategy and
policy for the Group. The Chairman monitors the
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implementation of Group Board decisions by the

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industry groups and Tetra Laval International.

DELAVAL SALES SPLIT 2009 NUMBER OF EMPLOYEES, DECEMBER 2009

Total Tetra Laval Group 31,202
Hygiene 15%
Service & Original Parts 15%

Farm supplies 15% Others 302

Milking 50%

DeLaval 4,077 Tetra Pak 21,672

Cooling 5%

Sidel 5,151

SIDEL 2009 SPLIT OF ORDER INTAKE BY MARKET SEGMENT

Others 14% Water & CSD 40%

NET SALES 2009 IN MIO EURO

Total Tetra Laval Group 10,755
Beer 14% Sensitive 32%

Tetra Pak 8,955

SIDEL 2009 SPLIT OF ORDER INTAKE BY PACKAGING MATERIAL Others 10
DeLaval 805

Metal 7%
Sidel 990

Glass 12% Plastic 81%

Tetra Laval_ALLA_2009_2010.indd 5 2010-05-04 11.20

 Comments by the Chairman of the Board
GOOD PERFORMANCE IN A DIFFICULT
BUSINESS ENVIRONMENT
Overall, 2009 was a good year for the
Tetra Laval Group. We faced many
uncertainties due to the economic
downturn. However, we were able to
perform well under these difficult
circumstances and, by and large, we
can be very pleased with the perfor-
mance of the Group.
Overall revenue fell by 2.6 per cent
to € 10,755 in 2009. At comparable
rates the contraction was 2.8 per
cent. Our industry groups managed
costs sensibly and improved their
operational efficiency. We also managed
our capital investments well, and when
there were growth opportunities in the
market, such as in Asia, South Africa
and the Middle East, we invested. At the
same time we postponed investments
in other markets, such as in Europe,
due to overcapacity or slower growth.
Despite the challenging economic
environment we continued our invest-
ment in R&D. Our industry groups
spend approximately 3 to 4 per cent
of sales on R&D. We are proud of our
strong commitment to R&D and it is im-
portant for our customers to know that
we are continuing to invest in our future.
STRONG ACHIEVEMENT BY
TETRA PAK
Tetra Pak had another very good year.
Even though sales were almost flat,
mainly due to customers’ postpone-
ment of capital expenditure, Tetra Pak
once again delivered strong results.
Sales increased in markets such as
Asia and the Middle East. However,
North America, Europe and some
countries in Eastern and Central
Europe did not enjoy meaningful growth
in 2009. Cost management and
productivity improved substantially.
Tetra Pak also did an excellent job in
managing its balance sheet, particu-
6 TETRA L AVAL 2009/2010 / COMMENTS BY THE CHAIRMAN OF THE BOARD
Tetra Laval_ALLA_2009_2010.indd 6
larly optimising inventories and managing
capital expenditure and working capital.
This good operational result was
favourably supported by the fact that
commodity prices, for example for
paper, aluminium and plastic, increased
more slowly than anticipated. Overall,
Tetra Pak’s strategy of focusing on
its core business has again proved
advantageous.
DELAVAL’S QUICK RESPONSE
TO A CHANGING MARKET
DeLaval had a respectable year and
achieved good results. While 2008
was an exceptional year in the market
place, 2009 was much more difficult.
Farmers suffered as milk prices fell
dramatically around the globe, espe-
cially in North America and Europe.
As a result, farmers reduced their in-
vestment in new capital equipment,
which in turn affected the company’s
sales significantly. DeLaval anticipated
the difficult market conditions and
management and employees across
the company responded quickly by
revising their budgets and cutting
costs. The company managed to
quickly adjust its organisational struc-
ture to match the changing market
conditions. Helpfully, the reduction of
capital spending by DeLaval customers
opened up opportunities for repair,
spare parts and service – thus this
important part of the DeLaval business
performed well.
TWO MAIN CHALLENGES
A key factor for DeLaval in the years
to come is an increase in global milk
prices so that farmers can return to
profits. When this happens, farmers
will be in a position to make capital
investments, which in turn will benefit
DeLaval, as the leader in top quality,
state of the art dairy equipment.
There are signs of an improving global
economy which should eventually in-
crease the demand for milk and push
up prices. The question is more about
the timing of this, which is difficult to
forecast.
The other opportunity for DeLaval is
to play an important role in the reduc-
tion of the carbon footprint of dairy
farming. DeLaval is in a great position
for this as a market leader in sustain-
able dairy farming, and has several
ongoing projects aimed at reducing
CO2 emissions and improving
manure/waste management.
POSTPONED ORDERS PUT
PRESSURE ON SIDEL
2009 was a difficult year for Sidel.
While both Tetra Pak and DeLaval are
dependent on their customers’ invest-
ment in capital equipment, this is even
more the case for Sidel. The market
for bottling and filling lines became a
market where customers put orders
on hold or cancelled them during the
past year. The life cycle management
part of Sidel’s business, including service
and spare parts, has benefited from
the market situation, although this is a
relatively small part of Sidel’s overall
operations. In this difficult business
environment the management of Sidel
continues to deliver according to the
restructuring plan and has additionally
increased its cost reduction targets.
SUBSTANTIAL EFFORTS ON R&D
As well as focusing on operational
efficiency Sidel continues to make
substantial efforts within R&D. The
company has a new aseptic filler and a
new family of blowers and labelers in
the pipeline. With investments being
made in R&D, Sidel can efficiently
2010-05-04 11.20
 meet the needs of its customers for
stand alone machines or complete
bottling and filling lines. Sidel also
continues to invest in markets with a
strong growth potential. The Beijing
factory, the largest investment in the
history of the company, is a very good
example of how Sidel is positioned to
work closely with their customers in
the Asian market.
ANOTHER GOOD YEAR FOR
TETRA LAVAL INTERNATIONAL
Tetra Laval International had another
successful year. Some of the main
achievements involved Tetra Laval
International’s support of the industry
groups in managing their balance
sheets, an investment in a new IT
system for the treasury function, and
the continued leadership of the Group’s
corporate governance framework.
The Board of course bears the ultimate
responsibility for corporate governance,
but Tetra Laval International has been
supporting the Tetra Laval Group
Board with this important initiative.
POSITIVE SIGNS FOR 2010
Looking ahead, I anticipate that 2010
should be a solid year for the Tetra Laval
Group. Through the actions taken by
governments there is improved under-
lying stability in the global economy
and hopeful signs for an economic
recovery. Another positive factor is
that raw material prices are expected
to remain stable offering us better
cost control. We are also optimistic
about the potential for our sales
growth, despite the opportunities being
unevenly spread around the globe.
Asia, Russia and the Middle East are
just a few of the markets where we
would like to capitalize on opportunities.
For 2010 Tetra Pak will continue to
Tetra Laval_ALLA_2009_2010.indd 7
“We are optimistic about the potential for our sales
growth, despite the opportunities being unevenly
spread around the globe. Asia, Russia and the
Middle East are just a few of the markets where
we would like to capitalise on opportunities.”
focus on quality, operational efficiency the environment by continuously
and top line growth. DeLaval will con- reducing the environmental footprint,
tinue with efficiency improvements and and constantly improving everything
introducing new products to the market. we do. Above all, quality is about
Amongst others, more robotics and exceeding customer expectations.
automation will be added to their Finally, I would like to express my
range of products for dairy producers gratitude to all employees within the
and an increasing focus on sustain- Tetra Laval Group for their outstanding
able dairy farming. Sidel will complete work and sacrifices during the challeng-
its restructuring plan, continue devel- ing year of 2009. With improved effi-
opment of new products and capitalise ciency and new products, we have
on the growth opportunities in places the opportunity to grow when the
such as China. economy turns upwards, and by
taking good care of our customers
EXCEEDING CUSTOMER we can strengthen our market position
EXPECTATIONS in the years to come.
Quality is the theme for this year’s
brochure. 40 years ago my first job Larry Pillard
was as a chemist in a quality control
laboratory. To me quality has many
aspects beyond the more obvious
ones, such as developing, delivering
and installing the product according
to customer specification, protecting
TETRA L AVAL 2009/2010 / COMMENTS BY THE CHAIRMAN OF THE BOARD 7
2010-05-04 11.20
 TETRA LAVAL GROUP BOARD
– a supervisory board to the Tetra Laval operational units

The three Tetra Laval industry groups
have operations and representatives in
more than 170 countries. It is a decentra-
lised organisation but with clear rules
and guidelines. The framework for
Corporate Governance establishes the
Board’s expectations for the industry
groups, and communicates govern-
ance guidelines throughout the organi-
sation. The Tetra Laval Group Board
has six other areas of responsibility.
• Corporate governance seeks to procedures for making decisions
promote compliance with regula- with regard to corporate affairs.
tions, transparency and accounta-
• Financial and operational control is
bility, and can be defined as the
a second major responsibility for the
relationship of a company to its
Tetra Laval Group Board. To support
stakeholders. The Corporate
the Board in these functions, an
Governance structure specifies
Audit Committee and a Remunera-
the distribution of authorities and
tion Committee have been formed.
responsibilities between the Board,
The Remuneration Committee deals
management and shareholders,
with the overall policies concerning
and spells out the guidelines and

SIR KEITH WHITSON JÖRN RAUSING LARRY G. PILLARD PAUL SKINNER

A non-executive Board Member since
2005. Sir Keith Whitson is retired
Group Chief Executive of HSBC
Holdings plc. He also served as a
non-executive Director of the Finan-
cial Services Authority in London from
1998 to 2003. During his career with
HSBC he worked in Hong Kong,
USA, Germany, Malaysia, Indonesia
and the United Kingdom.
A non-executive Board Member of
the Tetra Laval Group Board since
1991 (an alternate Board Member of
the Tetra Pak Group Board since 1985).
Jörn Rausing is also a Board Member
of Alfa Laval AB and DeLaval Holding
AB and of Ocado Ltd. He is the
Tetra Laval Group’s head of Mergers
and Acquisitions. He is also the
Chairman of the Remuneration
Committee of the Tetra Laval
Group Board.
Chairman of the Board since 1 January
2003. Larry Pillard joined the Board
as non-executive Board Member in
2001. He was previously Chief Execu-
tive of the Tate & Lyle Group since
November 1996. He joined the British
based sugar, cereal sweetener and
starch company in 1992 as President
and Chief Executive Officer of A E
Staley Manufacturing Company, the
subsidiary responsible for all starch
operations in North America. Prior to
Tate & Lyle he was with Cargill Inc
for 23 years. He is a non-executive
director of Bunge Ltd, USA.
A non-executive Board Member
since 2005. Paul Skinner is Chairman
of Infrastructure UK, a division of HM
Treasury. He was previously a Group
Managing Director of Royal Dutch/
Shell and Chairman of Rio Tinto plc.
He is also a non-executive director of
Standard Chartered plc and Air Liquide
S.A., and a non-executive member of
the Board of INSEAD, the European/
Asian business school.

8 TETRA L AVAL 2009/2010 / TETRA LAVAL GROUP BOARD

Tetra Laval_ALLA_2009_2010.indd 8 2010-05-04 11.20

 remuneration within the Group and
with salaries and other benefits for
senior management. The Audit-
Committee deals with both internal
and external issues and is respon-
sible for the proper maintenance of
an audit organisation, and of course
• The final two other issues in which
review of the financial results.
• Development and definition of overall
strategies and policies is a third area
of responsibility. Although the industry
groups have different business
models, strategies, and operate
independently from each other, there
are a number of areas where common
policies are beneficial to the Group.
• The appointment of senior manage-
ment is a fourth major area of board
responsibility. In addition to approving
senior management appointments,
the Tetra Laval Group board also
ensures that the industry groups have
appropriate succession planning for
senior positions.
the Board takes a direct role are in
defining financial targets for the
Group’s different operations and for
total resource allocation within the
industry groups.
The Tetra Laval Group Board
schedules four regular meetings each
year and when circumstances require,
additional meetings take place.

KIRSTEN RAUSING BERND PISCHETSRIEDER FINN RAUSING JÜRGEN WEBER

An alternate Board Member since 1985
and a non-executive Board Member
since 1991. Kirsten Rausing is a
member of the Jockey Club and a
director of Jockey Club Estates Ltd.,
and formerly of the Animal Health
Trust, the British National Stud and
the British Bloodstock Agency, plc.
In addition, Ms. Rausing is the past
Chairman of the European Federation
of Thoroughbred Breeders’ Associa-
tions (Paris) and of the E.F.T.B.A.
Veterinary Commission. She is the
current Chairman of the Thorough-
bred Breeders Association of Great
Britain.
A non-executive Board Member
since 1999. Dr. Bernd Pischetsrieder
has been Chairman of the Board of
Management of Volkswagen AG from
2002 to 2006. He has been Chairman
of the Board of Directors of Scania AB,
Sweden from 2002 to 2007. He is
Member of the Supervisory Boards
at Metro AG and Münchener Rück-
versicherungs-Gesellschaft AG, all
based in Germany.
A non-executive Board Member of
the Tetra Pak Group Board from 1985
to 1989 and of the Tetra Laval Group
Board from 1995. Finn Rausing, who
is the Chairman of the Audit Committee
of the Tetra Laval Group Board, is
also a Board Member of Alfa Laval AB,
DeLaval Holding AB, Swede Ship
Marine AB and Nordkap Holding AG,
as well as Chairman of R.R. Institute
of Applied Economics AB.
A non-executive Board Member
since 2003. Dr. Jürgen Weber
became Chairman of the Supervisory
Board of Deutsche Lufthansa AG in
June 2003 after having served the
company as Chairman of the Board
of Management for twelve years. He
is Chairman of the Supervisory Board
of Willy Bogner GmbH & Co. KGaA
and LP Holding GmbH and member
of the Supervisory boards of Allianz
Lebensversicherungs-AG, Bayer AG
and Voith AG, all based in Germany.

TETRA L AVAL 2009/2010 / TETRA LAVAL GROUP BOARD 9

Tetra Laval_ALLA_2009_2010.indd 9 2010-05-04 11.21

 Comments by the CEO, Tetra Pak
GOOD RESULTS DESPITE
A DIFFICULT MARKET
2009 was a strong year for Tetra Pak
despite having to deal with some diffi-
cult market conditions, such as the
melamine crisis in China and the global
financial crisis. In summary, Tetra Pak’s
sales volumes increased by one per cent
in 2009 and a strong operational
result was achieved. We also improved
our inventories, capital expenditure
and working capital, which strength-
ened our balance sheet.
A QUICK RECOVERY IN CHINA
The good results were helped by a
much quicker recovery of the Chinese
milk market than first thought. The
Tetra PlantMaster gives full control and traceability.
10 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK
Tetra Laval_ALLA_2009_2010.indd 10
Chinese government acted effectively
and decisively through a variety of
measures, such as closing plants which
did not live up to normal quality stan-
dards, stricter regulations, and follow-up
inspections. These actions have
restored confidence amongst Chinese
consumers. Additionally, the com-
modity prices took a tumble after
having peaked during the fall of 2008,
particularly for plastics, and this
helped us to reduce costs. Tetra Pak
also conducted a strict cost control
operation during the year and post-
poned investments which were not
essential in the short-term.
Favourable development in China.
20 NEW PRODUCTS
During 2009 Tetra Pak launched 20
new products. The Tetra Pak A3/iLine
was further developed with the em-
phasis on cost-driven innovation. The
new fully automated line reduces the
customers’ operational costs by an
impressive 10 to 40 per cent. The new
version of the Tetra Brik Edge pack-
age with increased convenience
was well received by customers,
retailers and consumers and the new
Tetra Lactenso Aseptic product – UHT
processing equipment – reduces the
consumption of water, steam and
waste. In addition the next version of
2010-05-04 11.21
 “Tetra Pak’s sales volumes increased
by one per cent in 2009 and a strong
operational result was achieved.”
Tetra PlantMaster gives our customers
full control of their operations with high
traceability information, which allows
milk to be traced back all the way to
the individual farm and cow.
POSITIVE DEVELOPMENT
IN CHINA
From a geographical point of view
China developed favourably for us,
despite fierce competition. Our volumes
grew by four to five per cent in 2009,
which was well ahead of our competi-
tors, and we predict a similar level of
growth during 2010. There are many
non-system suppliers in the market,
some of them with global ambitions.
In addition, PET suppliers are trying
to gain market share.
Besides increased competition the
Chinese market is greatly influenced
by the importance of environmental
friendliness. This is a significant
Tetra Laval_ALLA_2009_2010.indd 11
opportunity for Tetra Pak, since we
have focused on sustainability matters
for a long time with good experience
in many other places in the world.
BRAZIL MAINTAINED A STRONG
ECONOMY
Brazil is an amazing story. Despite the
global economic downturn the country
has managed to maintain a strong
economy. Our volumes grew by
around five per cent in Brazil in 2009
and we expect them to continue to
grow during 2010. There is a huge
potential in the market, partly due
to conversion to ambient milk. For
instance, in Northern Brazil the con-
sumption is focused on powder milk
but gradually the preference changes
to packaged milk. In order to adapt to
customer needs we introduced the
new Tetra Brik Aseptic Edge package
with lower cost and better conveni-
TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK
ence than plastic pouches on the
market.
DIFFICULT MARKET IN RUSSIA
The Russian market had a difficult
development during 2009. The financial
crisis hit the market earlier than in many
other places. We expect that 2010
will also be a year without growth.
The juice and nectar segment has
been particularly affected by the crisis
however the milk market has remained
stable. A positive trend is that the
packaged ambient milk market is
growing. Most of the milk in Russian rural
areas is not currently packed which
creates a big opportunity for us.
GROWTH IN SOUTH AND SOUTH
EAST ASIA AND MIDDLE EAST
South and South East Asia continued
to grow during 2009. More or less every
single market grew, which can be
11
2010-05-04 11.21

Double-digit growth in the Middle East.
attributed to growth in the ambient
chilled market.
Similarly the Middle East and
surrounding area had a fantastic year
with a double digit growth. Both the
milk segment and the juice and nectar
segment experienced positive
development.
INVESTMENTS FOR GROWTH
Due to the economic recession Tetra Pak
held tight when it came to investments.
However, in Pakistan we continued
our investments in the new factory.
We expect to inaugurate the plant
during 2011. This is an important
development based on growth oppor-
tunities. We also continued to upgrade
our equipment such as new closures,
printers and laminators. In addition,
we have continued to invest in R&D in
order to be able to supply our customers
with new innovative products.
FOCUS ON LEADERSHIP
In order to cope with the increasing
requirements of our customers we
invest a great deal in training and
skills development courses for our
people. We have adapted our leader-
ship curriculum for executives and link it
closely to our strategy. Leadership
assessment and continued development
of our executive program are important
measures to strengthen our culture.
We are very pleased with the high
degree of our employees’ engagement
12 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK
Tetra Laval_ALLA_2009_2010.indd 12
throughout the world, which is a foun-
dation to continue to drive our strategy.
IMPROVEMENT ON QUALITY
Quality has been in the spotlight this
year. Customer feedback told us that
our quality performance has been
borderline and that there was an oppor-
tunity for substantial improvement.
In response we initiated the quality
programme with the aim to be the
undisputed industry leader in quality.
Our short-term focus is to meet the
goals of our quality dashboard and to
exceed customer expectations. We
are working to improve issue resolu-
tion, focusing on problem collection
and prioritisation, and then quick
solution development and implemen-
tation. We are gradually improving on
quality and will continue to focus on
this area for the next few years.
“We are developing a new growth strategy
for the next decade and during 2010 we
will focus on continued improvement
of customer satisfaction through our
quality programme.”
2010 – YET ANOTHER
CHALLENGING YEAR
Looking at 2010 we have a cautious
view on the market development. We
believe it will be another challenging
year. The high rate of unemployment
will affect the consumption of milk as
well as juice and nectar, particularly in
Europe and in some selected devel-
oping markets. This is likely to mean
our customers will postpone their in-
vestments. The lower level of orders for
our Processing business will not be fully
compensated by the development of our
Packaging business. So a flat develop-
ment of volumes is a likely scenario.
Our long-term objective is to kick-
start healthy growth again. We are
developing a new growth strategy for
the next decade and during 2010 we
will focus on continued improvement
of customer satisfaction through our
quality programme. We will also be
keeping a tight cost schedule involving
low cost sourcing, in order to reach our
financial objectives. In addition, we will
be focusing on product development,
for example introducing a new carton
bottle, Tetra Evero Aseptic, to the value
segment. By continuing to strive for
improvements to quality alongside
innovation we can strengthen our
market leading position.
Dennis Jönsson
2010-05-04 11.21
 Tetra Pak
Global Leadership Team

DENNIS JÖNSSON
PRESIDENT AND CEO

JÖRGEN HAGLIND ALISTAIR DAVIDSON THOMAS ANDERSSON ANDREAS KARL

CORPORATE COMMUNICATIONS FINANCE & BUSINESS TRANSFORMATION LEGAL AND TAX HUMAN RESOURCES

ALEX ANAVI MICHAEL GROSSE NILS BJÖRKMAN SAM STRÖMERSTÉN

SUPPLY CHAIN OPERATIONS DEVELOPMENT & ENGINEERING COMMERCIAL OPERATIONS PROCESSING SOLUTIONS

TETRA L AVAL 2009/2010 / TETRA PAK GLOBAL LEADERSHIP TEAM 13

Tetra Laval_ALLA_2009_2010.indd 13 2010-05-04 11.21

 Comments by the CEO, DeLaval
STAYING CLOSE TO CUSTOMERS
IN CHALLENGING TIMES
2009 was indeed a challenging year
for DeLaval and the whole dairy industry.
The global economic downturn has
severely affected farmers and resulted
in a significant decrease in capital
goods investment. However, we have
been able to leverage on our after-
market and services offering where
we have experienced growth. The
strength of our complete offering has
made it possible for us to stay close
to our customers by providing them
with the right products and solutions
even when major investments are not
an option.
Within the Group we have worked
throughout the year to continuously
adapt our capacity and cost base to
The complete offering makes it possible to stay close to our customers.
14 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL
Tetra Laval_ALLA_2009_2010.indd 14
reflect the market reality. DeLaval
employees have stepped up to the
challenge in 2009 and I am confident
that the consolidated efforts of the whole
group have given us a firm foundation
on which to grow the business and meet
the market turnaround when it comes.
CHALLENGING MARKET
CONDITIONS
During 2009 dairy farmers experienced
the most difficult market conditions
seen for many years. Low milk prices
combined with high input costs
caused erosion in the dairy producers’
equity. Many farmers are still operating
with a negative cash flow, or have not
yet managed to catch up with losses
incurred during 2009.
Milk consumption in China and
investment in the dairy industry has
recovered to a large extent since the
melamine crisis. During 2009 an in-
crease in demand was met mostly by
imports. However, there is a decisive
policy in place to support and build
up the domestic dairy industry. Since
the crisis, both consumer and govern-
mental awareness of food and dairy
product quality in China has increased.
Policies and guidelines on raw milk
production and sourcing have been
created and focus on the development
and implementation of milking and
dairy production standards improved.
In the US, production levels in 2008
2010-05-04 11.22
 had geared up to meet an export de-
mand. When the economic crisis came
it impacted the US dairy industry not
only with a decrease in domestic
demand, but also the disappearance of
export opportunities with low interna-
tional demand and a very strong USD.
In Australia and New Zealand the
market has been relatively positive
considering the circumstances. The
strong USD supported a sharp in-
crease in exports from Oceania, well
timed with the start of season. How- “In 2009 we successfully launched a number
ever, production volumes have been of new products to strengthen our offering.
lower than expected due to the negative
effect of a drought in New Zealand.
The InService™ campaign is now launched
Despite a tough year we now see in many markets improving service
signs of recovery in China, Japan, provision to customers.”
Canada and Latin America and even
in Northern Europe we see some
positive market development.

2009 ACHIEVEMENTS
Against a background of economic
instability and continuous adjustments
to align to the market there have also
been a number of significant achieve-
ments this year. In 2009 we success-
fully launched a number of new prod-
ucts to strengthen our offering. The
InService™ campaign is now launched
in many markets improving service
provision to customers. This year also
marks the ten year anniversary of the
VMS and we see growing interest and
demand for automation in the dairy
industry.
In November we opened a new
Good Manufacturing Practice (GMP)
facility in Drongen, Belgium. The
opening of this facility is a significant
move towards positioning DeLaval in
the Biosecurity and Animal Health area.
The facility will support our ambition
to be a leading player in the produc-
tion of advanced veterinary medicinal
products and is a state-of-the-art
production environment.
LEADERSHIP AND EDUCATION
From a people perspective the financial
crisis has had a clear impact on the
organisation. Already at the turn of
the year 2008-2009 the process to
adjust the global organisation to reflect
market conditions was started. The
number of employees within the Group
was reduced by 20 per cent in 2009
and a major re-organisation was
implemented to better align the
company with the new market and
customer demands, leaving us well
prepared to gear up for a market
turnaround.
PREPARED FOR MARKET RECOVERY
We cannot be sure when a significant
market upturn will come to the dairy
industry and to what extent. We see
the first signs of recovery in many
markets with milk prices stabilising
and even increasing in some regions.
Our focus now, is on growing our
market shares and increasing volumes
both in capital goods and aftermarket
and services. There is no doubt that
we see a renewed interest in investment
from farmers but we have yet to see
a significant upward trend. Across the

TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL 15

Tetra Laval_ALLA_2009_2010.indd 15 2010-05-04 11.22


Group we are focused on securing
our ability to ramp up production and
capacity in line with market recovery.
FOCUS ON BUSINESS EXPANSION
IN 2010
Going forward in 2010 we will continue
to grow our three main areas of busi-
ness expansion; Smart Farming,
Sustainable Dairy Farming and Bio-
security and Animal Health.
Our vision is to deliver fully integrated
and automated systems at farm level,
what we call Smart Farming. Our
strategy is to place dairy farmers in
the centre of fully integrated and auto-
mated farm operations. DeLaval aims
to influence and shape the future of
dairy farming today. We want to
accelerate the transition from milking
management to global farm profitability
management by providing our cus-
tomers with decision tools and auto-
mation technologies that give better
quality milk and increased profitability.
We recognise and address the need
to balance economic growth with the
needs of society, animal health and
the environment. We see the link be-
tween high technology, sustainability
and profitability and are constantly
working to bring new ideas to life.
TETRA L AVAL 2008/2009 / COMMENTS BY THE CEO, TETRA PAK
16 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL
Tetra Laval_ALLA_2009_2010.indd 16
“We take an all round approach to quality.
For DeLaval this means quality in design,
manufacturing and full solution delivery.
We make quality excellence a priority
from the very first phase of the
development process.”
SUSTAINABLE SOLUTIONS AND
ANIMAL HEALTH IN FOCUS
Our goal remains in Sustainable Dairy
Farming to reduce the environmental
footprint of farms, while improving milk
production, farm profitability and the
well-being of the people and animals
involved. We have continued to
establish the concept throughout the
year and started to fully integrate it
into our product development and
communications, the latter including
presentations at World Ag Expo in
Tulare and the IDF World Dairy Summit
in Berlin. To recognise and support
internal projects we have also pub-
lished an internal Environmental and
Social Report, a non-financial report
on the environmental and social
aspects of our own supply chain.
We continue to develop and promote
solutions that improve resource effi-
ciency on dairy farms. Despite the de-
clining market, solutions focused on
reducing energy and water use, and
thereby operational costs, were well
received in 2009. We also promoted
an automated footbath, a swinging
cow brush upgrade and an organic
hygiene range to allow farmers better
safeguard the health and the produc-
tivity of their herds.
QUALITY
Finally, we take an all-round approach
to quality. For DeLaval this means
quality in design, manufacturing and
full solution delivery. We make quality
excellence a priority from the very first
phase of the development process.
We have continued the work started
in 2008/2009 on the process to identify
and deal with quality issues at an early
stage. We have restructured our engi-
neering resources to deliver a better
and more managed response to
issues, and sharpened the controls
around reporting and follow up. This
helps us ensure the right priorities are
set and solution delivery with best time
and cost possible.
Our customers depend on us to
provide them with products and solu-
tions that live up to expectations. It is
our responsibility to make sure that is
what they get. In this way, we can
strengthen our market leading posi-
tion in the years to come.
Joakim Rosengren
2010-05-04 11.22
 DeLaval
Group Management Team

JOAKIM ROSENGREN
PRESIDENT & CEO

ANDREW TURNER BENOÎT PASSARD FABIANO AMARO HENRIK SUNDELL

BUSINESS AREA CAPITAL GOODS MARKETING & COMMUNICATIONS REGION LATIN AMERICA GROUP GENERAL COUNSEL

LESZEK JAROSZ JAN OVE NILSSON STEFAN LIDSTRÖM MAGNUS BERG

REGION NORTH AMERICA REGION EUROPE, MIDDLE EAST, AFRICA, GROUP FINANCE & IS SUPPLY CHAIN MANAGEMENT
AUSTRALIA AND NEW ZEALAND

MARKKU VAUHKONEN TIM NICOLAÏ OLOF GERTZ

REGION EAST ASIA BUSINESS AREA AFTERMARKET HUMAN RESOURCES
& SERVICES
TETRA L AVAL 2009/2010 / DELAVAL GROUP MANAGEMENT TEAM 17

Tetra Laval_ALLA_2009_2010.indd 17 2010-05-04 11.22

 Comments by the CEO, Sidel
WE KEPT TO THE COURSE
OF OUR STRATEGY DESPITE
THE RECESSION
In 2008 we entered the worst reces-
sion our industry has ever seen. By
mid 2009, the demand for equipment
had fallen by almost 50 per cent across
the whole industry. The drop in demand
was inevitably aggravated by a price
war and led to steep losses for us
and for all our main competitors. But
looking back at the last one and a half
years, I am proud to say that Sidel kept
the strategic course we set in early
18 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL
Tetra Laval_ALLA_2009_2010.indd 18
2008 with full forward momentum,
despite the exceptionally dire condi-
tions. We were able to do this thanks
to the long-term industrial view held
by the Tetra Laval Board and thanks
to the personal sacrifices of many of
our managers and employees.
In fact, in the midst of the global
downturn, we were able to add addi-
tional initiatives to adapt to the market
conditions. One of those new initiatives
2010-05-04 11.24
 was focused on our installed base,
where we increased our offering to
customers in the form of upgrades,
line optimisation services and
re-engineering. Initially, we positioned
this as an alternative way to help
customers increase productivity during
hard times with limited budgets for
capital spending. But it is increasingly
clear that our customers have a huge
unfulfilled demand for services regard-
less of the business cycle, and we are
now investing to further differentiate
ourselves as an outstanding service
provider.

UPSWING IN ORDER INTAKE

Today, early 2010, the market is no
longer quite as bleak. During the autumn
and winter of 2009, we saw an up-
swing in China and the rest of Asia,
where the underlying growth in units
of packages sold remained strong
throughout the downturn. More recently,
Latin America has begun to re-emerge.
Another region with strong growth
potential is Eastern Europe, but this
region has yet to show any signs of
recovery. Western Europe and North
America are two saturated markets in
terms of packages consumed, but will
offer good business opportunities in
services and in the trend towards ever
more package variants.
All in all, we believe we have entered
the recovery phase of this cyclical
downturn. The international beverage
“During the autumn and winter of 2009, we
saw an upswing in China and the rest of
Asia, where the underlying growth in units of
packages sold remained strong throughout
the downturn.”
packaging market is fundamentally our Market Operations, Sidel is well
attractive because it is driven by positioned to serve this demand.
strong macro trends that will continue
for a long time, namely urbanisation EARLY GAINS FROM OUR
and the growth of the middle class in TRANSFORMATION PROGRAMMES
many developing regions. As the world With our ambitious transformation
develops, demand for the convenience programme along the strategic axes of
of packaged beverages will grow product innovation, customer proximity,
strongly. With our investment in and operational excellence we put
manufacturing capability in China and substance behind every word of our
the build up of global competences in strategic vision of being the most

TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL 19

Tetra Laval_ALLA_2009_2010.indd 19 2010-05-04 11.24

 innovative, responsive and reliable
partner, providing sustainable solu-
tions for the beverage industry. This
strategic transformation programme
is complemented by programmes
designed to maintain cost discipline
and to continuously reduce structure
costs. By driving these programs with
undiminished force through the reces-
sion we are now emerging with much
leaner and more reliable processes.
This is already evident in measures
such as reduced lead times, much
higher OTIF (On Time, In Full) scores,
lower warranty costs, and fewer claims.
As market conditions normalise, it will
also be evident in improved profitability.
A particularly important development
has been the decision by many Chinese
customers to choose aseptic PET
technology over less technically de-
manding alternatives such as hot fill
or adding preservatives to the bever-
age product. Thanks to these trends
and our strong PET product portfolio,
we tripled our order intake in this
segment despite the recession – which
clearly shows the benefits of developing
differentiated products with high tech-
nology content.
In fact, to assure that we fulfil our
strategic mission of regaining out-
standing leadership in PET products
and services we have almost doubled
our R&D spending since 2007.
CHALLENGES STILL AHEAD
In 2010 we will still suffer from the
weak order intake of 2009 and con-
tinued weakness in some regions,
and we will still face big challenges in
sustaining the pace of execution of all
our programmes. But we will also
have the satisfaction of seeing these
efforts beginning to manifest them-
selves in improved financial results.
Mart Tiismann

STRONG PRODUCT RANGE “We forcefully and successfully

During 2009 we forcefully and
successfully re-entered the market
for Sensitive Products with a strong
range of outstanding products, in-
cluding our unique Predis dry preform
decontamination system and our new
aseptic filler, the Sensofill Fma.
re-entered the market for Sensitive Products
with a strong range of outstanding products,
including our unique Predis dry preform
decontamination system and our new
aseptic filler, the Sensofill Fma.”

We deliver differentiated products with a high technology content.

20 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL

Tetra Laval_ALLA_2009_2010.indd 20 2010-05-04 11.24

 Sidel
Group Leadership Team

MART TIISMANN
PRESIDENT AND CEO

MARIA VARSELLONA ROBERTO BETTINI RICCARDO ROSSELLI MICHEL PICANDET

LEGAL HUMAN RESOURCES FINANCE LIFE CYCLE MANAGEMENT

ROBERTO SCHIANCHI SID JOHARI FRANCOISE RAOUL-DUVAL

MARKET OPERATIONS INDUSTRIAL OPERATIONS STRATEGY & BUSINESS DEVELOPMENT

TETRA L AVAL 2009/2010 / SIDEL GROUP LEADERSHIP TEAM 21

Tetra Laval_ALLA_2009_2010.indd 21 2010-05-04 11.24

 AL WAIS IN SYRIA
– COMPLETE SOLUTIONS FROM
DELAVAL AND TETRA PAK
Al Wais Group in Syria is a joint customer of DeLaval and Tetra Pak. DeLaval has supported Al Wais
to set up the entire cow farming and milk production, and Tetra Pak supplied a complete production
system for the dairy project. Key success factors for both companies have been to fully understand
the needs of the Al Wais Group and to offer complete solutions and total dedication to make these
projects commercially successful for the customer.

Al Wais started as a small company Al Wais has expanded vertically from

producing candy. In order to avoid
costly product losses, the company
invented new products. So Al Wais
started to produce sweeteners and
set up a glucose plant. From corn raw
material Al Wais produced starch and
other products which they sold on the
market. The remaining product of corn
was the peel, which became excellent
high protein feed for cows. Therefore,
Al Wais bought a herd of cows, which
led to another “waste product” – milk.
solely starch and glucose production
into cow farming and milk production.
GIVING THE CUSTOMER
FULL CONTROL
DeLaval’s starting point was fully
understanding the needs of Al Wais
and making an offer which gave the
customer full control over their project.
Their specific needs were, among
other things, to have cutting edge
technology and a strong customer focus
from DeLaval.

TETRA LAVAL DONATION IN CHINA

Thanks to a 20-million-yuan assistance programme supported by the
Tetra Laval Group, 10,000 children in the earthquake-damaged Sichuan
area of China can continue their high school education. The programme,
in cooperation with the China Children and Teenagers’ Foundation, will
not only help students complete their high school studies, but will also
support those on their way to college and university. This demonstrates
how part of the fund of US$ 30,000,000 launched by the Tetra Laval
Group in May 2008 is being used to help victims of the tragic natural
catastrophes in China and Myanmar.

22 TETRA L AVAL 2009/2010 / TETRA LAVAL CORPORATE STORY

Tetra Laval_ALLA_2009_2010.indd 22 2010-05-04 11.24

 “We designed our proposal osal to meet
their needs. We then extended our
design support, supervised civil con-
structions work, and made sure there
was an accurate and fast installation
process for the milk production facility,”
says Qais Haddadin, Marketing
Manager for DeLaval East Med.
DeLaval supplied a fully automated
parallel parlor and a fully automated
Herringbone parlor. In addition to this,
it also supplied a wide range of farm
assortment like rubber mats, cow
brushes, dairy fans, footbaths, some
of which were introduced for the first
time in the region.
PROBLEM-FREE OPERATION
“Our commitment to the customer
does not stop when the project is
completed. We make sure that our
customer enjoys stable and problem-
free operation. To ensure this, we offer
a preventive maintenance programme
that helps to avoid operational
problems. We also offer a 24 hours
emergency visit program in case of any
sudden failure,” says Qais Haddadin.
PERFORMANCE GUARANTEES
ON PRODUCT LOSSES
The next step for the Al Wais Group
was to set up dairy production. Al Wais
Tetra Laval_ALLA_2009_2010.indd 23
is a producer that knows the value of
keeping operating costs down and
does not accept any unnecessary
product losses. So Tetra Pak made an
offer based on performance guarantees.
“From the early project start, we
decided to use our performance
guarantees as a differentiator in the
sales process. We took a pro-active
approach and emphasised the com-
mercial value from a running cost
perspective. In addition, our knowledge “It is not only a project of great magni-
from setting up production to distribution tude, it is also a deal that brings the
and marketing to consumers was a Tetra Lactenso Aseptic solution to the
decisive factor why Tetra Pak won the Middle East for the first time,” says
contract,” says Bo Liedberg, Processing Bo Liedberg.
Director of Tetra Pak in Jordan. Al Wais is an entrepreneurial customer
which involved both DeLaval and
BIGGEST GREEN FIELD OPERATION
Tetra Pak. It is a unique project, since it
Al Wais in Aleppo is one of Tetra Pak’s involves competencies of dairy farming,
biggest green field projects in the processing and packaging from both
Middle East. Tetra Pak is supplying a companies. DeLaval and Tetra Pak have
complete production system from raw shared information and have had
material intake up to finished goods mutual meetings and farm and plant
storage. The project includes both visits with the customer.
Tetra Pak processing and filling equip-
ment. This ten million Euro project is
expected to be in commercial produc-
tion by the summer of 2010. Products
such as milk, juice and yoghurt will be
produced and the capacity is esti-
mated to be about 100 tons per day.
TETRA L AVAL 2009/2010 / TETRA LAVAL CORPORATE STORY 23
2010-05-04 11.24
 Comments by the President, Tetra Laval International

QUALITY IN CONTROL AND RISK MANAGEMENT

ARE KEYS TO STRONG PERFORMANCE IN
GROUP FINANCE AND CONTROL
Tetra Laval International (TLI) has continued to be a strong partner to the Board and to add value to the
Tetra Laval Group by enhanced finance and control support. Among other things TLI has led a programme
to improve global short-term cash and liquidity management processes, introduced a new state-of-the-art
management treasury system and taken measures to reinforce risk management within the Group.
TLI has also reviewed the principles for corporate governance and internal control.

The global business and financial
landscapes are being reshaped today
by a number of transformational events
and trends. Economic pressures,
geopolitical development and regula-
tory demands are all increasing in
response to the financial crisis. As part
of this transformation, the financial
environment in the broad sense is also
being reshaped, resulting in a number
of significant challenges for manage-
ment and boards. Our main achieve-
ment in 2009 was the strong positive
cash flow delivered by the Group and
the overall result of having effectively
assessed our most critical business
issues and having worked to identify
the best way to respond to those
challenges.
EVALUATING THE FUNDING AND
LIQUIDITY STRATEGY
In spite of efforts by many central banks,
a more cautious banking sector is
limiting the supply of credit and becom-
ing more demanding when renegotiating
terms of banking arrangements.
The Group’s financial situation remains
stable and secure despite the volatility
in the financial markets. Long-term
refinancing of our borrowing facilities two
years ago means that we did not face
any refinancing or increased borrowing
needs this year and that our financing
costs remained very low. Moreover,
we were able to maintain all financings

24 TETRA L AVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL

Tetra Laval_ALLA_2009_2010.indd 24 2010-05-04 11.24

 TETRA LAVAL INTERNATIONAL
in place and no Group company suffered
any shortage of liquidity despite the
financial crisis. Nevertheless, TLI has
led a programme to improve global
short-term cash and liquidity manage-
ment processes with a successful
implementation of a cash pooling
structure across Asia. This pooling
structure is to be extended next year
to all major markets. In addition, stan-
dardised reporting was implemented
for all bank accounts globally and
now provides the Group with daily
visibility of global cash.

MANAGING FINANCIAL RISKS
In 2009, TLI Treasury continued to follow
a prudent hedging strategy aimed at
mitigating the Group’s foreign exchange
and interest rate risks, amid ongoing
volatility in financial markets. Addition-
ally, the Treasury team started a new
focus on mitigation of the impact of
commodity prices.
A key achievement in 2009 was the
replacement of a number of legacy
systems in the area of financial man-
agement by a state-of-the-art treasury
management system which went live
in July 2009. The system offers a
number of added functionalities and
visibility over the previous system
and has led to a more structured and
efficient control and assurance of the
financial flows.
“Our main achievement in 2009 was the strong
positive cash flow delivered by the Group and
the overall result of having effectively assessed
our most critical business issues and having
worked to identify the best way to respond
to those challenges.”
To reduce the risks of customer defaults Two major projects dominated the risk
impacting Tetra Laval, a new Group- financing area. A risk transfer initiative
wide Credit Risk policy will come into aimed at identifying key business and
effect as of 2010. This will standardise traditionally non insurable risks and
the assessment and evaluation of developing solutions to finance or
customer credit risk. To support the transfer them. A global insurance
policy, a web tool has been developed review helped to identify savings and
that generates a credit rating for each opportunities to be derived from new
customer to allow comparison of regional or global insurance programmes
customer risk and harmonising of finan- and deliver enhanced compliance of
cing conditions. local insurance arrangements.

TETRA L AVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL 25

Tetra Laval_ALLA_2009_2010.indd 25 2010-05-04 11.24

 EFFECTIVELY MANAGING
TODAY’S BUSINESS RISKS
Looking beyond internal controls
around financial reporting to broader
enterprise risks facing the business, we
have increasingly focused on significant
business drivers and strategic enter-
prise risks.
As part of the review of the corporate
governance and internal control systems,
the Group-wide risk management tool
has been reviewed and reissued to
assure full alignment with the Turnbull
guidance and to continue to implement
best practice in risk management
throughout the Group. The new tool
most notably includes a cogent defini-
tion of the materiality of risks and an
assessment of the quality of the con-
trols and risk management processes.
The new tool was piloted in 2009 and
will be rolled out to all industry groups
in 2010.
INCREASED TRANSPARENCY
To enable the Board to face the un-
certainty of the markets last year and
manage the risks effectively, TLI has
delivered not only enhanced risk re-
porting but also an increased amount
of forward-looking information for a
26 TETRA L AVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL
Tetra Laval_ALLA_2009_2010.indd 26
better visibility of possible future
scenarios. TLI has in particular aug-
mented its analysis of receivables and
supplier risk, and has extended the
budgeting planning requirements for
the Group to focus attention on phas-
ing and increased accuracy of profit
and cash forecasting. Moreover, TLI
has successfully strengthened the
capital expenditure approval process
for the Group and deepened the analysis
of operational costs and operational
capital to allow a better grip on the
cash flow and liquidity situations.
ENHANCING CORPORATE
GOVERNANCE
Since 2004, Tetra Laval’s corporate
governance system has followed the
Combined Code of the United King-
dom and the Turnbull guidance on
internal control. A comprehensive
compliance system has been imple-
mented over the last four years. The
choice of the Combined Code as the
appropriate corporate governance
system for the Group has been upheld.
2009 saw a review of this system and
the internal control structure to ensure
complete alignment and compliance
with the Turnbull guidance. But also
with a view to introducing new stan-
dards for documenting internal control
systems throughout the Group, ensuring
that they address most local regulatory
requirements and that the corporate
governance framework including the
internal control systems supports the
external audit process.
OUTLOOK
Looking forward to 2010, TLI’s dedi-
cated and professional staff will focus
on three main initiatives to continue to
deliver high quality in the area of finance
and control. Firstly, a deeper integra-
tion of corporate governance, internal
control and risk management to afford
the Board even better decision support
and increased monitoring of compli-
ance with policy. Secondly, on the tax
planning side, the huge changes in
the fiscal environment will demand
much innovation in managing the tax
affairs of the Tetra Laval Group over
the coming years. Finally, to support
the Board, the recently launched
return on capital enhancement pro-
gramme will aim to drive profitability
and balance sheet efficiency.
Martyn Zedgitt
2010-05-04 11.24
 TETRA LAVAL INTERNATIONAL
Tetra Laval International
Management

MARTYN ZEDGITT
PRESIDENT

JÖRN RAUSING IAIN MACLEAN MARC HÄFLIGER

MERGERS & ACQUISITIONS LEGAL & TAX OPERATIONS & ADMINISTRATION

ROBERT SWAN EMILIO RUIZ-BERDEJO ROBERT NORRIS

AUDIT FINANCE GROUP FINANCIAL PLANNING
& REPORTING

TETRA L AVAL 2009/2010 / TETRA LAVAL INTERNATIONAL MANAGEMENT 27

Tetra Laval_ALLA_2009_2010.indd 27 2010-05-04 11.25

 TETRA LAVAL IN THE WORLD
TETRA PAK CARTON PACKAGES SOLD 1999 – 2009
MARKETS COVERED
145,030 mio packages sold 2009

Mio packs
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

DELAVAL MARKETS COVERED SALES DEVELOPMENT 2004 – 2009

1,200

1,000

800

600

400

200

0
2004 2005 2006 2007 2008 2009

SIDEL MARKETS COVERED PET BLOW-MOULDING MACHINES SALES

FROM 1999 – 2009
Total 5,000 units sold up till 2009

400

350

300

250

200

150

100

50

0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

28 TETRA L AVAL 2009/2010 / TETRA LAVAL IN THE WORLD

Tetra Laval_ALLA_2009_2010.indd 28 2010-05-04 11.25

 TETRA PAK
Corporate presentation
2009/2010

Tetra Laval_ALLA_2009_2010.indd 29 2010-05-04 11.25

 TETRA PAK IN TWO MINUTES

PRODUCTS SOLD IN TETRA PAK PACKAGES IN 2009

NUMBER OF EMPLOYEES 2010
OF 70,674 MILLION LITRES OF PRODUCTS

21,672 Liquid dairy products 63.2%

Juice & nectars 18.5%

NET SALES 2009

8,955 MILLION EUROS

Still drinks 8.3%
Wine & spirits 2.8%
Other 7.2%

VISION

We commit to making food

safe and available, everywhere

CORE VALUES PRODUCTS

CUSTOMER FOCUS & LONG-TERM VIEW
We ensure we add value and inspire our
customers because we recognise that they
come to us by choice. We dare to lead with
a focus beyond tomorrow and take oppor-
tunities to learn and grow.
QUALITY & INNOVATION
We do not compromise on quality. We relent-
lessly drive for better, fit-for-purpose solutions
and breakthrough innovations.
FREEDOM & RESPONSIBILITY
We have the freedom to take initiative and act
decisively in the best interests of Tetra Pak
and our customers. We take responsibility for
our actions and contribute to the communities
in which we operate.
PARTNERSHIP & FUN
We respect and rely on one another and all
our stakeholders for exceptional results.
We enjoy working together and celebrating
our achievements.
30 TETRA PAK IN TWO MINUTES
At Tetra Pak we are specialists in complete solutions for the processing,
packaging and distribution of food products. Our solutions are
specifically designed to be as economical with resources as possible.
Dairy products, juices and nectars, ice cream, cheese, dry foods,
fruits, vegetables and pet food are examples of products that can be
processed or packaged in Tetra Pak processing and packaging lines.
We focus on keeping the consumption of all raw materials and energy
to a minimum during both the manufacturing process and distribution.
The processing solutions are also designed to treat the products gently.
Our products are divided into
several categories:
• Packages
• Processing equipment
• Filling machines
• Distribution equipment
• Service products
R&D
Our customers need faster, better and cheaper developments to
reduce their operational costs and to increase performance in order
to remain competitive. We invest in technology and new products in
response to customer, consumer and market dynamics.
OUR STRATEGIC PRIORITIES
Faster, better, cheaper is our approach to delivering on the three strategic
priorities:
• Focus on, and grow the core
• Emphasise cost-driven innovation
• Drive operational performance

Tetra Laval_ALLA_2009_2010.indd 30 2010-05-04 11.25


ENVIRONMENT AND CSR
Our Corporate Social Responsibility cornerstones are:
FOOD FOR DEVELOPMENT
For more than 45 years, we have
helped customers, governments, inter-
national and community-based orga-
nisations to provide milk to children
around the world.
On 30 September 2009, World
School Milk Day, we announced our
support for two additional school
milk programmes – in Ecuador and
Morocco – as well as the expansion of
existing programmes in Romania,
Thailand, Mexico and Iran.
Through the Food for Develop-
ment Office (FfDO) we work in close
partnership with governments,
development agencies, non-govern-
mental organisations (NGO), local
dairies and farmers to deliver almost
six billion packages of milk to 45
million children in schools in over 50
countries around the world. School
feeding programmes can have a
considerable impact on the local
community and economy. Not only
do they improve the health and
learning capabilities of children, they
often act as a catalyst for agricultural
and economic development.
In 2009, following the decentrali-
sation of the school milk feeding
programme in Iran, Tetra Pak
strengthened its relationship with
the School Feeding Committee and
now partners with the UN’s World
Food Programme on a number of
school educational activities in Tehran
and across the country.
School milk programmes play a vital
Tetra Laval_ALLA_2009_2010.indd 31
MARKETS & CUSTOMERS
Tetra Pak operates with 21,672 employees in over
170 countries around the globe. Our customers
come from different parts of the food industry, such
as the dairy, cheese, ice cream, beverage and pre-
pared food sectors.
FILLING MACHINES INSTALLED
– JANUARY 2010
part in our business strategy and our
commitment to dairy customers
around the world to make food safe
and available everywhere. We expect
to see a further expansion of these GREATER CHINA 1,390
SOUTH EUROPE 1,229
programmes in the coming years.
CENTRAL & SOUTH AMERICA 1,162
GREATER MIDDLE EAST 1,035
GLOBAL COMPACT CENTRAL EUROPE 825
We are a member of UN Global com- EAST EUROPE & CENTRAL ASIA 742
NORTHEAST ASIA & OCEANIA 686
pact, which brings together compa-
SOUTH & SOUTHEAST ASIA 656
nies, UN agencies, labour and civil NORTH AMERICA 540
society to support ten principles in NORTH EUROPE 490
the areas of human rights, labour, SUB-SAHARAN AFRICA 291
the environment and anti-corruption. SUPPLY CHAIN OPERATION 1
NOT ASSIGNED 1
We also cooperate with NGOs like
TOTAL 9,048
WWF on forestry and climate
change issues.
ENVIRONMENTAL SUSTAINABILITY
We are committed to running our
business in an environmentally sound OUR BRAND
and sustainable way. We set goals It is our goal to create a well-known and respected
for continuous improvement in our brand name – Tetra Pak – and to improve the
development, sourcing, manufacturing, image / perception of our carton packages as being
and transportation activities. As part the most preferred and environmentally sound
of that commitment, we take a long- ones, thus, achieving sustainable profitable growth.
term and life cycle view, We take an active role in shaping a better future,
continually improving building on our four Brand Pillars – Food Safety,
environmental per- Customer, Environment and Well-Being.
formance, Our motto, PROTECTS WHAT’S GOOD,
communicating reflects the philosophy upon which we
openly with conduct our business. It provides a
our stake- consistent worldwide positioning of
holders and Tetra Pak across the value chain support-
reporting ing our Vision, Mission and Core Values.
regularly on
our perfor-
mance.
TETRA PAK IN TWO MINUTES 31
2010-05-04 11.25
 EVERYDAY EXCELLENCE PEOPLE
DELIVERING EVERYDAY EXCELLENCE
Quality dashboard to
improve performance
In good times customers focus on
building capacity in fast growing mar-
kets. However, the crisis in 2008 and
2009 has re-emphasised the need to
optimise productivity and quality. The
cost of non-performance is one of the
most important issues to handle for
any customer, making it equally im-
portant for Tetra Pak to put quality on
the daily agenda.
To do this, Tetra Pak has developed
a Quality Dashboard focusing on metrics
from a customer perspective. “We are
driving to improve issue resolution
performance, focusing on problem
collection and prioritisation, then rapid
solution development and implemen-
tation. We are also looking at mecha-
nisms to improve how we build on
lessons learned, so that as we solve
problems we learn deeply from the
experience, grow and be an increasingly
dependable partner. Other important
initiatives address spare parts quality
and changing the way we set quality
targets for new development projects”,
says Phil Maguire, Vice President
Quality Programme.
BECOMING UNDISPUTED LEADER
He is responsible for the cross-company
initiative to raise quality and customer
satisfaction in every cluster. The goal
32 TETRA PAK PEOPLE
Tetra Laval_ALLA_2009_2010.indd 32
PEOPLE
is to become the undisputed quality “QUALITY NEEDS TO BE PART OF
leader of the industry. “Our current per- OUR DNA. IT NEEDS TO PERMEATE
formance varies. We are making steady
EVERYTHING WE DO. IT NEEDS ALL
progress on the start-up quality of
new equipment and driving down OF US TO PLAY OUR PART.”
defects, but need to accelerate. With
a large set of customer needs, we are
working to prioritise efforts. This requires
a cohesive company-wide effort and
an integrated strategy. Quality needs
to be part of our DNA. It needs to per-
meate everything we do. It needs all
of us to play our part”.
CONSISTENCY IN FOCUS
This cohesive effort from the entire
organisation now means that opera-
tional groups, process owners and
platform teams are adopting the quality
dashboard to ensure consistency and
a uniform approach. The Quality
Dashboard is all about the customer.
Hence, much of the work is being
done in close cooperation with cus-
tomers in many different markets.
“What will really matter is how we
shall collaborate across organisations
within Tetra Pak in order to make a
difference for our customers. We can
measure different activities internally, we
can measure suppliers’ quality, but the
ultimate test is always from a customer
perspective”, concludes Phil Maguire.
2010-05-04 11.26
 Carol Zimmerer

Excellence Awards for

outstanding performance
Every year, Tetra Pak acknowledges teams or individuals who have made a real
difference to the business and to customers. The Excellence Awards recognise people
who contribute with excellent performance reflecting the company strategy, core
values and brand.
In 2009, Carol Zimmerer and Bozena Malmgren were two of the co-workers
receiving the award. Carol Zimmerer, Supply Chain Integration Director in Rayong,
Thailand, was recognised with the Leadership Excellence Award for living the core
values and representing everything about performance, thereby allowing many
others in her team to step up to the plate. Bozena Malmgren, Technologist in
Tetra Pak Dairy & Beverage Systems in Lund, Sweden, was awarded the Customer
Excellence Award for helping customers to introduce new successful products by
generously sharing her unique competence and taking pride in understanding the
customer’s real problem.

Bozena Malmgren

Global initiative
to benefit customers
In 2009 all Tetra Pak employees partici-
pated in LiVE Tetra Pak, an internal
engagement programme tailored to
increase the understanding of Tetra Pak’s
challenges and how the company’s
core values, brand promise and strate-
gic direction help Tetra Pak to achieve
its vision. Held in more than 80 loca-
tions in 53 countries and more than
20 languages, LiVE Tetra Pak takes a
multi-channel approach where videos,
interviews, Q&A sessions and other
interactive activities fill four hours of
intense training and interaction.
LiVE Tetra Pak gave each and every
employee the opportunity to better
understand how he or she can contri-
bute towards customer satisfaction
and the company’s future growth.
“Every day, employees’ actions
influence stakeholders’ perception of
what Tetra Pak stands for. This initiative
helps us speak with one voice and
appear with one face in the market”,
says Dennis Jönsson, President and
CEO of Tetra Pak.

TETRA PAK PEOPLE 33

Tetra Laval_ALLA_2009_2010.indd 33 2010-05-04 11.26

 2009/2010 IN BRIEF

PROGRESS ON
OUR CLIMATE GOAL
As a partner to the WWF Climate Savers
programme we actively work on our
commitment to achieving our five-year
carbon reduction goals. Our goal is to
reduce carbon emissions 10 per cent
between 2005 and 2010 in absolute terms.
We are in a good position to meet the
challenging climate goal by 2010 if we
continue to deliver improvement as
done to date. Our 2009 energy use was
a similar level as in 2002, despite a 33 per
cent increase in packaging production
over the same period. Mitigating climate
change is a global responsibility and our
commitment to drive the business in an
environmentally sound way is an integral
part of our company culture.

TETRA GEMINA ASEPTIC

GIVES SADY PRIDONIA A
SUCCESSFUL “FACE LIFT”
Sady Pri
Pridonia, a leading company in fruit production and pack-
aging iin Russia chose the innovative Tetra Gemina Aseptic to
re-launch
re-laun its leading juice brand. Tetra Gemina Aseptic allowed
them to differentiate their product on shelf. “Along with its
original
origin shape, it has good functionality – it pours really well
until the last drop. The smaller cross-section of the package
also allows us to utilise retail space much more optimally”,
says
say Irina Samokhina, Marketing Director, Sady Pridonia.

34 TETRA PAK
K 20
2009/2010
0009
09/
9// 2
9 201
2001
0 1 0 IN
10 I N BRIEF
BR
BRI
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RII EF
IEEF

Tetra Laval_ALLA_2009_2010.indd 34 2010-05-04 11.26

 TETRA TEBEL CASOMATIC
Our customers require solutions, not just
components, so we build efficiency,
productivity and sustainability into all of
our processing steps, enabling cheese
manufacturers all over the world to get
the most out of their plant. Our solution
for semi-hard cheese – the Tetra Tebel
Casomatic SC 7 module – is in line with
this vision. Originally developed in the
mid-1970s, Tetra Tebel Casomatic has
been setting the standard in industrial
cheese-making ever since. One driving force
in the development of the new version was
to achieve even greater efficiency through
longer production runs. Another was to
achieve better cheese and whey quality,
with high accuracy in terms of moisture
content, weight and form. The result is
a solution that enables our customers
to deliver quality with efficiency
– a truly sustainable business
proposition.

GLOBAL LAUNCH
OF TETRA BRIK EDGE
On 29 June 2009, we announced the global launch of Tetra Brik Edge,
the packaging solution for chilled liquid dairy products designed for
consumers of all ages. The Tetra Brik Edge package is easy to use
– whether you are young or old – so much so that it is endorsed by the
Swedish Rheumatism Association, which also chose it as their ‘Package
of the Year’. The 34 mm diameter SimplyTwist screw cap is designed
to be easy to open, pour and reseal for everyone. As well as adding
to the package’s visual appeal, the sloping top panel provides
optimal pouring and its angulation makes it extremely easy for
the hand to grasp the cap. Tetra Brik Edge is an excellent vehicle
for branding. The sloping top also provides extra space for
additional messages.

TETRA PAK 2009/2010 IN BRIEF 35

Tetra Laval_ALLA_2009_2010.indd 35 2010-05-04 11.26

 2009/2010 IN BRIEF

NEW
SCHOOL MILK
PROGRAMMES
On 30 September 2009, World School Milk Day, we
announced our support of two additional school milk
programmes – in Ecuador and Morocco – as well as the
expansion of existing programmes in Romania, Thailand,
Mexico and Iran. Through the Food for Development
Office (FfDO) we work in close partnership with govern-
ments, development agencies, NGOs, local dairies and
farmers to deliver almost six billion packages of milk to
45 million children in schools in over 50 countries around
the world. School feeding programmes can have a con-
siderable impact on the local community and economy.
Not only do they improve the health and learning capabilities
of children, they often act as a catalyst for agricultural and
economic development.

INAUGURATION OF HOHHOT PLANT IN CHINA

On 8 July 2009, we inaugurated our packaging material plant in Hohhot, North-
ern China, which operates completely on power from renewable resources – of-
ten referred to as “green electricity”. The new plant in Hohhot is one of our
most advanced manufacturing facilities for aseptic carton packages worldwide.
It marks a significant milestone in our increasing presence in China with a total
capacity of approximately 50 billion packs a year in the four Chinese plants. The
Hohhot facility is the first manufacturing plant in Inner Mongolia, and among the
first in China, to exclusively use green electricity. The plant consumes an esti-
mated 20 million kWh of green power annually, which corresponds to an esti-
mated saving of 16,000 tonnes of CO2 a year. The green electricity supplied to
Tetra Pak comes primarily from wind power.

36 TETRA PAK 2009/2010 IN BRIEF

Tetra Laval_ALLA_2009_2010.indd 36 2010-05-04 11.26

 LAUNCH OF
TETRA CENTRI AIRTIGHT ECO
NEW GENERATION OF
TETRA THERM ASEPTIC DRINK
COMBINES ECONOMY WITH ECOLOGY
The next generation of Tetra Therm Aseptic
Drink pasteurizers enables beverage pro-
ducers to cut water consumption by up
to 80 per cent, energy by up to 30 per
cent and product losses also by up to 30
per cent, compared to other solutions on
the market. This gives higher operational
efficiency while lowering environmental
impact.
The new pasteurizers – which are suita-
ble for juices and nectars, still drinks, tea
Tetra Laval_ALLA_2009_2010.indd 37
The world’s first hermetic direct
driven dairy separator –
Tetra Centri AirTight Eco – cuts
energy consumption up to 35
per cent compared to conven-
tional paring disc separators.
This new generation separator
is a further development in our
proven range of separators us-
ing a number of breakthrough
innovations to deliver higher
operational efficiency and
lower environmental impact
than ever before.
drinks and enhanced water, including
new “wellness” drinks with high value-
added sensitive ingredients – include a
range of other advanced automation
features. For example, they automatically
identify deviations in process parame-
ters, enabling immediate operator action
to maintain optimised operation. And
they provide automatic notification of
every maintenance requirement – help-
ing all but eliminate costly, unplanned
CLIMATE AWARD
Tetra Pak received the 2010 Klimatpris (Climate
Award) from the Swedish Forest Industry
Federation. The award was delivered by
H.R.H. Prince Carl Philip, to Finn Rausing at
a ceremony in Stockholm on April 20, 2010.
A summary of the reason behind the award
reads as follows:
“It is well-known that packages from Tetra Pak
have revolutionised the distribution of food
around the globe. It is not as well-known that
Tetra Pak’s innovations create packages with
lower environmental and climate impact
compared to packages made from other
materials. Tetra Pak also takes a responsibility
for the forests the raw material originates from.
Few organisations in the world have the
same drive and reach to be able to have
an impact to support the work for a better
environment and reduced climate impact.”
production stops. The new pasteurizer is
also compatible with the Tetra PlantMaster
control system, which enables additional
intelligence applications such as full
traceability, unit history, batch control
and review of all previous actions. These
are important aspects that cut the risk of
human error, contribute to food safety
and enable exceptional performance.
TETRA PAK 2009/2010 IN BRIEF 37
2010-05-04 11.26
 DELIVERING EVERYDAY EXCELLENCE
One step to success
The main consumer benefits of the new Tetra Top
with One Step Opening can be summarised
in three words; convenience, convenience and
convenience. It is quick to open and easy to
reseal, making it the perfect packaging choice
for on-the-go products and for home con-
sumption of chilled dairy and juice products.
The One Step Opening provides superior
functionality as it is easy to pour and drink from
and has a tamper ring that shows if the package
has been opened. The seal is tight also when
the package is stored flat, an important attri-
bute for products such as cream where only a
part of the contents is used at a time.
From a customer perspective, the sturdy
package reduces distribution costs. The inter-
nal capping unit in the filling equipment re-
quires less floor space and cuts the cost of
conversion. But the main benefit is of course a
New unit for
high-viscosity foods
38 TETRA PAK PRODUCTS
Tetra Laval_ALLA_2009_2010.indd 38
PRODUCTS
package that stands out on the shelf, having all the marketing
and production benefits of the Tetra Top range. In Mexico,
leading dairy producer Alpura has converted its production
from traditional gable top packages into Tetra Top with the
new One Step Opening.
“Personally, I am in love with the package. The new
brand image really stands out at the points of
sale. I am totally sure we have made the
right decision to fully replace our gable
top system with the new Tetra Top One
Step Opening system, because we
are offering the best quality milk in
the best modern convenience
package at the same price”, says
Felipe Rios Castelazo, Market-
ing Director at Alpura, point-
ing out a 23 per cent sales
increase in the first six
months after the launch.
The well-known Tetra Therm Aseptic Visco
range for continuous UHT food processing
has a new member. The addition of a high-
pressure unit enables continuous, efficient,
high-capacity UHT treatment even for
high-viscosity soups and sauces, tomato
pastes, custard desserts, fruit preparations,
vegetable purees and baby food products.
A good example of our Tetra Victenso
production solutions for prepared food,
the new Tetra Therm Aseptic Visco unit
reduces product losses by up to 50 per cent
compared to conventional equipment.
2010-05-04 11.27
 Quality upgrades as part
of growth strategy

By updating and expanding

anding the
ding dairy D.P.O. iin
installed capacity, leading n
Thailand can follow itss ambitious growth h sstrategy.
trat
trateg
at egy.
eg y.
Tetra Pak has assisted with equipment and d au
a utoma
to
omati
mation
automationtion
ti n ssolutions.
olut
o
olutio
utions
io
onss.

In 2008, D.P.O., Tetra Pak’s first

first and for this D . .O
.P
D.P.O. O. da d irry.
dairy. y T he
h
The e ccustomer
ussto
u tommer
mer
largest UHT milk customer in n Thailand, needed de quip
qu
quip ipme
ipme
equipment ment
entn w itth hi
with h gh ccapacity
gh
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uipment in
decided to upgrade the equipment and flexibbililit
iliitty,
exibility, y, yyet
ett a ccompact
e o pa
om pact
act ssol
olut
olutio
ut io
on.
solution. n
its three main dairies in orderr to fulfil its Working closel
closely e y wi
el w
with itth
hoone ne o
ne off ou
ourr va
valu
lue
lu
value e
ovided an
expansion strategy. This provided business partn
partners nerrs su ssuch
ucchha ass D.
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D.P.O., givi
ving
ving
giving
excellent opportunity for Tetratra Pak to them the opportu
opportunity un niityy ttoo in
inte
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eraract
interactctt w ih
it
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offer the customer the Tetra a Pak A3/ the solutions of the he e ffut
utu
ut ure,
ur
future, e iiss off g re
eat
greata
CompactFlex iLine, being the he most importr ance for us”, says
importance y T
ys hiti
hitipo
poll
po
Thitipol
ution avail-
advanced technological solution Artsanchorn, Comme Commercial merrciial Ma M nage
na
Manager gerr
ge
able on the market for portion on packs. at Tetra Pak Thail i and.
Thailand.
motion
D.P.O. (Dairy Farming Promotion
Organisation) is a state owned ed enter- INCREASED LINE LI N AUT
AUTOMATION
UTOM
O ATION N
prise which became the firstt Tetra Pak The main reason behind the chochoice
oicce wass
Thailand customer in 1972. It currently the better value propositionon ffor
or D.P.O
.O
D.P.O.O.
has four UHT factories located ed in dif- of the Tetra Pak A3/Comp pactFle
A3/CompactFlex ex iL
iLi
in
ine
iLine
ferent regions of Thailand which pro- in terms of cost, more advanancced tech-
advanced
duce UHT milk under its iconic nic brand, nology and higher capacity, as well as
“Thai-Danish”. White and flavoured
UHT milk have been D.P.O.’ss growth
low energy and utility consumption of
the equipment.
Tetra Alfast
ness 37
engine since it started business “The increased line automation achieves
years ago. and the better user friendliness of the
equipment have also contributed to spot-on
CONVERSION PROJECT TO
ENSURE EXPANSION
our decision to go for the Tetra Pak
A3/CompactFlex iLine solution, as
precision
In late 2007, much of the equipment in well as the fact that Tetra Pak, as an Tetra Alfast performs automatic direct
use was old and the utilisation capac- integrated supplier, is able to manage in-line standardisation of milk and cream
ity was reaching its limits. D.P.O.’s growth the whole project from layout to installa- with accurate control of fat, protein, solids
strategy demanded an upgrade and tion and start-up”, says Mr. Suwarat non-fat and total solids. It is designed for
expansion of the installed capacity at Hongyantarachai, Assistant Director efficient, flexible processing of formu-
three of its UHT milk plants: at Muaklek, of Factory Operations at D.P.O. lated dairy products and cheese milk.
Pranburi and Khonkaen. In parallel with the deployment of Combined with the new SpotOn software
The project led, among other things, the Tetra Pak A3/CompactFlex iLine, for instant in-line ingredient compensa-
to the deployment at D.P.O. of a D.P.O. also replaced outdated equip- tion, Tetra Alfast offers unparalleled
Tetra Pak A3/CompactFlex iLine for ment with three Tetra Pak A3/Flex filling repeatability and precision to give uniform
Tetra Brik Aseptic 200 B and Tetra Brik machines at the Khonkaen plant. Thereby product quality and improved produc-
Aseptic 250 B packages in August 2009. increasing capacity by 27 per cent and tion economy over the long term.
“The Tetra Pak A3/CompactFlex iLine saving 28 per cent with reduced opera-
turned out to be the perfect product tional costs.

TETRA PAK PRODUCTS 39

Tetra Laval_ALLA_2009_2010.indd 39 2010-05-04 11.27

 DELIVERING EVERYDAY EXCELLENCE

PRODUCTS
Hygiene is the
foundation of
food safety
Consumers all over the world are increasingly concerned about health and
food safety. Food alarms have made people pay more attention to what they
eat and drink, where it comes from and how it is produced. Every threat to
consumer health is a threat to the food processing business. How does Tetra Pak
meet this challenge?

LEVERAGING THE BENEFITS

“Food safety means being in control
at all times, so it is an integrated part
of our production concepts and the
way we think about food processing
and packaging. Ultimately, it is about
making it possible for our customers
to be in total control of their produc-
tion”, says Stefan Åkesson, Manager,
Food Safety & Equipment Safety at
Tetra Pak Processing Systems.
Food safety begins on the drawing
board, and the foundation is hygiene.
This means assuring that everything
that will ever come in contact with
food – from components right down
to connections, welds etc. – is of
approved material. It also means
assuring that service media (e.g. water,
steam and air) supplies are designed
with proper hygienic zoning barriers, and
that the automation level enables track-
ing throughout the production process.
Tetra Pak employs hygienic risk
assessment of machines and process
lines during the development and
engineering phases. This method
analyses and evaluates hazards in order
to be able to reduce or eliminate
hygienic risks, such as microbiological
causes, chemical causes and foreign
materials from machinery or other
sources.
Managing food safety issues comes
down to knowledge about food tech-
nology and about food processing.
To secure Tetra Pak’s food safety focus,
a core team with three clear areas of
responsibility has been set up:
• to monitor new regulatory require-
ments related to food safety
• to identify issues of significance to
Tetra Pak’s customers
• to inform about and coordinate
food safety activities
To make it easier for our engineers to
comply with increasingly stringent
standards, Tetra Pak participates in
international standardisation work. We
have developed the Tetra Pak Corpo-
rate Standard, a tool to coordinate
and implement international hygiene
standards.
“Continuous development projects
give us both deeper and broader know-
ledge about food safety issues, ranging
all the way from food processing,
through filling and packaging. This is
unrivalled in the food industry. We offer
our customers unequalled knowledge,
our experience and our solutions,
which enables them to protect their
business”, concludes Stefan Åkesson.

40 TETRA PAK PRODUCTS

Tetra Laval_ALLA_2009_2010.indd 40 2010-05-04 11.27

 DELIVERING EVERYDAY EXCELLENCE

PARTNERSHIP
Better claims handling
increases customer
satisfaction
Tetra Pak Germany has made substantial cuts in
the time needed for handling customer claims.
The method will now be rolled out globally, to
increase customer satisfaction.

Tetra Pak Germany has made substantial and that is where we are today”, says replace it without calling Germany.
cuts in the time needed for handling Rodolfo Simon, Issue Resolution This initiative follows the same example.
customer claims. The method will now Director at Tetra Pak. The decisions must be made quickly
be rolled out globally, to increase Although a rather small initiative, and close to the customer. We can
customer satisfaction. this claims project shows Tetra Paks then discuss internally who is respon-
Every customer expects a swift comittment to turn every stone to find sible”, says Rodolfo Simon.
handling of a claim, whether it is a more customer friendly processes and But handling the claim is one thing
broken car engine or a bad apple. solutions. The initiative will now be – finding the source of the problem is
The food packaging industry is no rolled out globally, and each market the real issue. Cross functional teams
exception. Although technically will have the necessary competence at cluster level will make weekly reviews
advanced and con- of the claims, to find patterns
tinously maintenanced, and identify possible
almost any packaging ”The customers are not interested in issues.
line will sooner or “We also have a
later have a technical our internal structure. They want a swift large number of
issue leading to the trained system spe-
customer posting a
and decisive handling of their claims and cialists who report
claim. that is where we are today.” issues back to the
At Tetra Pak in Germany, central functions. In that
a new way of handling these way we make sure problems are
claims have cut lead times for settle- to judge the problems and come identified. In the short run, we have to
ments substantially. By moving the back to the customer with compensa- settle the claim. But more importantly,
internal decision making to the front tion within days. By routinely accepting we have to identify the issue and solve
end, Tetra Pak has become more agile claims below € 5,000, more than 95 it right away”, says Rodolfo Simon.
and customer oriented. per cent of the claims can be settled
“Before, we spent unneccessary instantly. This has taken a massive
time evaluating what part of Tetra Pak workload off the organisation, but
was responsible for the claim. But the more importantly increased customer
customers are not interested in our satisfaction.
internal structure. They want a swift “If you have a BMW and the wiper
and decisive handling of their claims breaks you expect the local dealer to

TETRA PAK PARTNERSHIP 41

Tetra Laval_ALLA_2009_2010.indd 41 2010-05-04 11.27

 DELIVERING EVERYDAY EXCELLENCE
PARTNERSHIP
Smooth start-up in Turkey
When Aslanoba Foods decided to jump into the tough Turkish JNSD market, the Start-up Solution from
Tetra Pak proved a valuable tool for a smooth start to operations.
Well-known for its Erikli brand of mineral
water, Aslanoba Foods has been a key
player on the Turkish bottled water
market since the mid-sixties. With fruit
juice consumption levels increasing
rapidly in the country, the company’s
owner, Hasan Aslanoba, decided to
enter the JNSD market with their own
brand of juices and nectars.
He chose to work with Tetra Pak in
order to secure the success of the
new venture. Besides choosing the
Tetra Gemina Aseptic 1000 Square
package as his main differentiator, he
also wanted to create an exemplary
green field project which would deliver
a production base with competitive
operational cost levels and top quality.
QUALITY AS A TOP PRIORITY
The Key Account team in Tetra Pak
Turkey decided to offer a tailored
Start-up Solution to the customer as
the best way to address customer
needs. The first thing to ensure was
that the factory staff had the compe-
tence required to operate and main-
tain the equipment. Given their im-
42 TETRA PAK PARTNERSHIP
Tetra Laval_ALLA_2009_2010.indd 42
portant role, operators were trained
and certified by Tetra Pak instructors
to make sure they knew how to operate
the machines in the safest and most
efficient way.
With a brand promise of premium,
healthy and natural options for con-
sumers, product quality was a top
priority for Aslanoba Foods. Tetra Pak
Quality Assurance Management spe-
cialists therefore reviewed the entire
customer operation and recommended
the appropriate quality routines and
procedures based on Tetra Pak best
practices.
“Ensuring excellent product quality
right from the start is paramount. With
Start-up Quality as part of Tetra Pak’s
Start-up Solution, we got guidance
from the specialists right from the start”,
says Aydin Kontik, Technical Director
of Aslanoba Foods.
GOOD UNDERSTANDING OF
OPERATIONS
Aslanoba Foods also made use of
another Tetra Pak service product –
Quality Performance Analysis. Using
this, a customer gets a clear picture of
where they stand in terms of product
quality and the improvements
needed. Last but not least, Quality
Assurance Training was conducted
which covered the quality of the
packed product through all phases of
the process from raw material to the
finished package.
Starting an operation from scratch,
Aslanoba Foods wanted to make sure
they had a smart way of handling their
parts inventory as well. Therefore
Parts Control Basic was implemented,
which included installation of a web-
based parts inventory management
system and recommendations on
spare parts min / max levels for the
customer’s equipment.
With Performance Analysis as the
last component, Aslanoba Foods was
able to establish Key Performance
Indicators for their plant performance
that would be monitored and analysed
continuously. Measuring performance
on a regular basis would enable the
customer to get a good understanding
of the operation and the optimisation
action required.
POSITIVE CONSUMER RESPONSE
All the endeavours in the quality area
paid off – Aslanoba Foods delivered
on its promise of premium quality
products which was validated by the
very positive consumer response.
“We invested in a big factory,
needed to set up processes, train
staff, it was a huge task, this being a
new area of business for our group.
However, with the Start-up Solution
we had an exceptional market entry –
good quality levels, smoothly running
operations and competent and moti-
vated staff to make all that possible”,
says Hasan Aslanoba.
With premium quality products
packed in a modern and functional
package, and backed up by a reliable
operation, Aslanoba Foods has every
right to be optimistic about the future.
2010-05-04 11.27
 Quality
a burning
issue in China
The Chinese market is becoming one of the most technically advanced in the world. Customers
expect high-end solutions with a focus on quality after the melamine scandal in 2008.
Tetra Pak essentially created the asep-
tic packaging market in the world’s
most populous country with the sale
of its first filling line to China in 1979.
Thirty years on, Tetra Pak China has
managed to keep its leading position
in the face of ever-growing competition.
Tetra Laval_ALLA_2009_2010.indd 43
A trend as the Chinese market matures
is that customers – most of whom are
local – are becoming more sophisti-
cated and more demanding.
“We have to raise our standards and
our performance because the compe-
tition is doing so. When you are in the
position we have been in for a long time,
we look at things in a different way.
What the customer is telling us is that
we have to look at it from their angle
as well”, says Hudson Lees, Managing
Director of Tetra Pak China.
Quality is the main concern in the
country after the scandal in 2008, where
milk tainted with melamine caused a
major health scare as a result of a num-
ber of infant fatalities and hospitalised
many more. The scandal dealt a massive
blow to Chinese consumers’ trust in
milk and other dairy products.
“The positive side, if there is one, is
that the events educated the consumer
and the government on the importance
of food safety. It sped up the regula-
tion of the supply chain, from farm to
production and packaging. And today,
the industry recognises the importance
of working with a reputable supplier
that is conscious of quality and safety
– like Tetra Pak”, says Hudson Lee.
The company employs nearly 1,600
people at nine locations around the
country and has an installed base of
over 1,250 filling machines. Every cus-
tomer relationship includes questions
on quality and sustainability.
DID YOU KNOW…?
The name Tetra Pak is translated into two Chinese
characters as “li le”. Literally, “li” can mean
benefit, interest, wellness or profit, while “le”
means “happiness”. At the same time, the
combination of the two words has another
meaning which comes from Buddhism, and it
means: being good to the surrounding people,
helping them and bringing good to society.
TETRA PAK PARTNERSHIP 43
2010-05-04 11.27
 DELIVERING EVERYDAY EXCELLENCE
INNOVATION
Integration improves
performance and traceability
By developing common automation software for processing and
packaging, Tetra Pak will alter the way a plant is run. It is like having
a single remote control at home.
The development programme for in-
tegrating packaging solutions into the
well-known automation platform,
Tetra PlantMaster, is Tetra Pak’s solu-
tion for meeting the increasing need
from customers for integrated pro-
cessing and packaging solutions.
Tetra PlantMaster is an automation
platform based on international stan-
dards for production.
“The demands for food safety
traceability, production planning and
performance for entire plants drive
the development. In addition, fierce
competition in the food-processing
44 TETRA PAK INNOVATION
Tetra Laval_ALLA_2009_2010.indd 44
industry is speeding up the need to
reduce costs”, says Anders Andrén,
Product Manager.
The development programme was
launched in the second half of 2008
and the first prototype will be available
by the end of 2010.
“We have often sold and delivered
modules and lines from Processing
and Packaging separately. The goal of
this programme is to extend our current
offerings and develop a fully integrated
solution with a common software plat-
form. Customers will be able to enjoy
simplified operations and decision-
making. They will only need a single
control room where all processing and
packaging activities can be managed
and monitored. It is like having a single
remote control for your TV, DVD
recorder and stereo at home”, says
Programme Manager Jarmo Vastapuu,
who is managing the development
of the integrated platform.
TO COVER THE ENTIRE PLAN
Integration means a number of things,
such as making old and new equip-
ment work together, including third-
party machinery, in the customer’s
2010-05-04 11.28
 total operations. Integration also
involves the information flow.
“Integration between processing
and packaging lies not in any particu-
lar hardware, but in the way we can
enable our customer to run a plant.
The different features we are looking
at in the development programme
have exactly that scope: How can we
make sure that all our business offer-
ings to our customer’s best serve the
total operations of their plants?” asks
Jarmo Vastapuu.
All this becomes a reality, extending
functionalities such as Quality Assurance,
Tetra Laval_ALLA_2009_2010.indd 45
traceability and performance analysis
to cover the entire plant. Integrated
customer solutions require coopera-
tion, and the development programme
is a cross Tetra Pak joint venture be-
tween Development & Engineering,
Processing Systems and Technical
Service.
CONSOLIDATES AUTOMATION
PRODUCTS
The result in the years to come will
become part of Tetra PlantMaster
branded automation platform. The
development programme will consoli-
date and align the current automation
products, Tetra PlantMaster, PLMS
(Packaging Line Monitoring System)
Centre and WebMon from Technical
Service.
“We need to align our various com-
petencies while we build capabilities
locally and centrally. There is really
some hard work to do to allocate our
resources in the right places. There
might also be boundaries to overcome
when activities that have lived their
separate lives for a long time have to
integrate. Yet the end result in this case
will surely benefit many customers all
over the world”, says Anders Andrén.
TETRA PAK INNOVATION 45
2010-05-04 11.28
 DELIVERING EVERYDAY EXCELLENCE

INNOVATION
New process will halve
time and double quality
By cutting lead times and increasing quality performance, Tetra Pak aims to speed up the creation of new
products. The foundation is a totally revamped innovation process, focusing on cross-functionality.

Mike Nelson and his team have an
ambitious target. By introducing a new
process for the way Tetra Pak develops
its products, the Product Creation Re-
design (PCR) team has set out to double
the quality performance of new prod-
ucts and solutions, while at the same
time halving the time to market.
“We are taking action to close the
gap between customer expectations
on quality and the quality we are de-
livering. Our customers also compare
our lead times with those of other
industries and do not understand why
it should take so long to develop a
new packaging solution”, says Mike
Nelson, Director for Product Creation.
CORE TEAM TAKES CONTROL
The task is to fully redesign the inno-
vation process, by increasing cross-
functionality and setting common goals
at project start. It sounds obvious, but
it is in fact more or less a revolution. In the
new process, a core team of specialists
from every function is assembled.
“Previously there was not full align-
ment on goals, leading to basic delays
that were unnecessary. By having supply
chain, sales, marketing and technical
service involved from day one we are
able to put all their requirements on the
table and come up with the best pos-
sible solution for our customers which
has more value than what our competi-
tors have to offer”, says Mike Nelson.
Product Platform Manager Christina
Chester, who is involved in two PCR pilot
projects, confirms there are apparent
benefits.
“The core team has taken over what
was one single project manager’s role
in the past. This means we all have a
good grasp of the project and there is
an efficient exchange of ideas in one
forum where all the competencies are
represented”, says Christina Chester.
SIGNIFICANT CUT IN TIME
Just to show the complexity and in-
depth analysis of the new process, it
has taken two years to design the new
content and process elements. In 2010,
the project reaches its tipping point
where 50 per cent of the innovation
projects will run according to PCR.
Pilot studies show that the time to
market can be cut significantly.
”We now have the process to de-
liver innovation to our customers in
much less time than before. Now is
the time to focus and gain experience
in managing project delivery in world
class times without compromising
quality – and for this we all have a part
to play”, says Mike Nelson.

Tetra Gemina wins Excellence Award

Every year, Tetra Pak internally awards a number of individuals and teams that have
made an outstanding contribution. In 2009, the Innovation Excellence Awards was given
to the team behind the new Tetra Gemina Aseptic package. The citation reads: ”This
innovation is built on our strategic intent of cost driven innovation. It has primarily
enhanced an existing technology into a clever application. The market acceptance is
already proven and it has good commercial value. We are now building a package
family that fits our strategy of differentiation at an affordable cost. The Tetra Gemina
Aseptic package is the world’s first roll-fed gable top package with full aseptic performance
for juice and milk. It combines the convenience, safety and nutritional benefits of
aseptic packaging with exceptional functionality and a great image of freshness.”

46 TETRA PAK INNOVATION

Tetra Laval_ALLA_2009_2010.indd 46 2010-05-04 11.28

 DELIVERING EVERYDAY EXCELLENCE
SUSTAINABILITY
Long-term approach
to the environment
The recession in 2008 and 2009 surprised many experts by not following the usual develop-
ment of a financial downturn. Also on the environmental side, the crisis showed new features.
Usually, a recession means instant cuts
in sustainability investments, in favour
of hard economic decisions. This time,
however, environmental spending and
interest continued. One reason is that
many governments used investments in
sustainable projects as a means to meet
the increasing unemployment. But the
environment is also becoming an evi-
dent part of the everyday business life.
“The environment is an integrated
part of Tetra Pak’s business proposition
and that is something we have in
common with many other global com-
panies in other industries. The last two
years, we have seen a rapid increase
in customer demands for life cycle
analyses and various retailer balanced
scorecard metrics putting requirements
on our package and processing offer-
ings. Today, we work closely with our
customers to meet these increasing
demands and expectations”, says Claes
Du Rietz, Vice President Environment.
A THREE LEG APPROACH
He describes Tetra Pak’s environmental
commitment as a three leg approach.
On the operations side, Tetra Pak works
hard to cut emissions, use renewable
energy resources and launch initiatives
to reduce the environmental footprint
of the own offices and factories. On the
product side, the focus lies on continue
improving the environmental perfor-
mance, renewable raw materials and
Tetra Laval_ALLA_2009_2010.indd 47
recycling. And on the customer support
side, Tetra Pak provides services to
customers in order to reduce waste,
energy and water consumption, food
loss etc. All in all, the environment is
present in every corner of the company
and contributes to the overall compe-
tiveness.
“We take a broad and long-term
approach to the environment, where
we focus on doing things right. By taking
a lifecycle view and make decisions
that are sustainable; for business and
for the environment. It’s about driving
environmental performance in the right
direction, persistently. Also, we in-
creasingly have to work with a 10 year ”We have to work with a 10 –15 year
perspective to be sure that the decisions
perspective to be sure that the decisions
we make today are aligned with how the
world will work in a decade”, says we make today are aligned with how the
Claes Du Rietz. world will work in a decade.”
2010 marks the end of Tetra Pak’s
ambitious global climate target, where For the last years, Tetra Pak has utilised
CO2 emissions will be cut by 10 per cent insights and experiences from all over
from 2005 to 2010 in absolute terms the world to more effectively assist
as the business continues to grow. customers in reducing their environ-
Tetra Pak is confident that the target mental footprint. These projects are
will be reached in 2010, mainly thanks often about reducing the consumption
to energy efficiency measures in the of water, electricity and chemicals, but
converting plants and by investments can also involve waste management or
in green energy. processing elements. This is a service
area that will grow rapidly in size and
WATER IN FOCUS importance over the coming years.
So, if climate change was the big question “Our founder Ruben Rausing stated
of the 00’s, what will be the main issue that a package should save more than it
in the new decade? Claes Du Rietz replies costs. We see this not only in monetary
instantly: “Water, more specifically the terms, but also from the environmental
access to water. This will be of main perspective. If we can work closely with
concern especially in many important our customers to help improve produc-
growing markets and Tetra Pak’s con- tion performance, this will be beneficial
tribution will be to be able to supply in terms of cost, quality and environ-
processing and packaging solutions ment”, says Claes Du Rietz.
that take a sustainable approach to
water consumption.”
TETRA PAK SUSTAINABILITY 47
2010-05-04 11.28
 DELIVERING EVERYDAY EXCELLENCE

SUSTAINABILITY
Large increase
in FSC-certified
packages
Tetra Pak’s ultimate goal for its paperboard supply is that “FSC is the gold standard of forest certification, the best
all the wood fibre used in Tetra Pak packaging should come there is. By following FSC guidelines we can make sure that
from responsibly managed forests certified to the highest the paperboard in our packages meets the high sustaina-
standard, FSC™. Following a humble start in selected markets, bility standards that we and our customers expect. We know
more than 2 billion FSC-certified and labelled Tetra Pak a sustainable approach to business is of critical value to
packages reached the market in 2009 and a significant retailers, brand owners and consumers, and FSC certification
growth is estimated in 2010. is an accreditation of the consistent work we’ve undertaken
The Forest Stewardship Council (FSC) is an international to secure responsible sourcing and demonstrates our commit-
organisation that brings stakeholders together to find ment to manufacturing to the highest level of environmental
solutions which promote responsible stewardship of the performance”, says Claes Du Rietz, Vice President Environment.
world’s forests. The FSC system independently guarantees
a chain of custody from forest to store, by securing the
traceability all the way from raw material source to a filled
package. The FSC certification enables Tetra Pak to use the
FSC label on its packages and is a guarantee that all wood
fibre used to produce the paperboard comes from FSC-
certified well-managed forests and other controlled sources.

Tetra Pak supports

green plastic
In November 2009, Tetra Pak reached an agreement with the largest
Brazilian petrochemical company, Braskem SA, to purchase limited
volumes of high-density polyethylene (HDPE) derived entirely from
a renewable feedstock. The agreement represents the first move
towards using green polyethylene in the carton packaging industry.
Braskem expects the world’s first commercial-scale green polyethylene
plant, located in the south of Brazil, to come on stream late 2010 and
is targeting first deliveries to Tetra Pak early in 2011. The new facility
will use ethanol derived from sugar cane to produce ethylene, which
will then be converted into polyethylene, the world’s most commonly
used plastic. It is estimated that the process will result in an overall
reduction in greenhouse gas emissions when compared with the
traditional process for manufacturing polyethylene.

48 TETRA PAK SUSTAINABILITY

Tetra Laval_ALLA_2009_2010.indd 48 2010-05-04 11.28

 Corporate presentation
2009/2010

Tetra Laval_ALLA_2009_2010.indd 49 2010-05-04 11.28

 Sidel in two minutes

Net sales in mio Euro Employees Countries covered R&D units Service units Number of plants

990 5,151 >190 8 31 25

Vision
We are committed to being the most
innovative, responsive and reliable
partner, providing sustainable solutions
for the beverage industry.
Our brand
The Sidel brand stands for proximity and innovation. Sidel delegates
decision-making and business responsibilities close to customers,
localises experts and competencies, and develops tailor-made solutions.

Industrial subsidiaries
Sales & Services offices

Market presence
Sidel has installed more than 30,000 machines in 190 countries: from China
to Brazil, taking in the United States, Germany, Japan and Russia on the
way. Sidel is making its mark today as a multicultural group, employing
around sixty different nationalities, totalling some 5,000 employees.
50 _ Sidel in two minutes

Tetra Laval_ALLA_2009_2010.indd 50 2010-05-04 11.28

 Products
With more than 30,000 machines
installed in 190 countries, the Sidel
Group is one of the world leaders in
solutions for packaging liquid foods
including water, carbonated soft
drinks, milk, sensitive beverages,
edible oil, beer and other alcoholic
beverages, in three main types of
container: glass bottles, plastic bottles
and drink cans. Sidel can support
complete line engineering needs,
from preliminary design to develop-
ing an investment budget, drafting
plans for line layout or building the
bottling line on-site. The equipment
offer encompasses blow moulding
machines, barrier treatment, Combi
equipment, fillers, conveyors, label-
lers, pasteurisers, palletiser / depal-
letiser, robotic equipment and end-
of-line operations.

Core values
CUSTOMER FOCUS
We create and develop lasting part-
nerships with customers, actively lis-
tening to them, understanding and
anticipating their needs. We deliver
the best innovative solutions and
services, with unrivalled quality and
lead times, worldwide.
LEADERSHIP
As a company, we lead our industry.
As employees, we lead by example.
Customers
Our customers come from all
parts of the beverage industry;
from beer and alcoholic beverages
to soft drinks, juice and mineral
water. In addition, we offer solu-
tions for other liquid food catego-
ries, such as edible oil and dairy
products.
TEAMWORK
When we pool our individual, com-
plementary abilities we accomplish
extraordinary things.
DISCIPLINE
Once decisions are made, we exe-
cute them with dedication and
respect for our community.
EMPOWERMENT
Each employee is personally account-
able, has the authority and resources
to fulfil his/her mission.
INTEGRITY
Integrity forms the foundation for all
of our other values. Commitment to
the highest ethical standards is es-
sential for personal and collective
progress.
ANYTIME – AFTER-SALES
SERVICE
Sidel delivers after sales service 24/7.
A fantastic support to leverage pro-
ductivity based on the daily man-
agement of a globally installed base
and a history of all past actions.
R&D
Sidel is a pioneer in beverage pack-
aging solutions, especially for PET
bottles. Some innovations are: the
Combi system, facilitating bottle
making, filling and capping for PET
bottles; Predis, a revolutionary sus-
tainable solution to enhance bottle
hygiene. Sustainability is Sidel’s new
frontier for innovation.
Environment and CSR
The world leader in stretch blow moulding for PET bottles, Sidel’s
concern for the environment is not a recent development. We have
an established track record of source reduction initiatives and have
been particularly instrumental in PET bottle lightweighting. Our in-
dustry-leading knowledge of PET, package design and equipment
expertise enables customers to achieve optimal package and line
performance vis à vis package weight, with many able to achieve as
much as 20–30 per cent gram weight reduction. Sidel has proposed a
number of equipment innovations aimed at reducing the consumption
of energy and other resources. In addition, we have led research in
the field of packaging material possibilities, from the use of recy-
cled materials to testing materials made from renewable resources.

Sidel in two minutes _ 51

Tetra Laval_ALLA_2009_2010.indd 51 2010-05-04 11.28

 DELIVERING EVERYDAY EXCELLENCE
WCLE implementation leads
to substantial improvements
In 2008, Andrea Forzenigo joined
Sidel as the new Vice President Prod-
uct Supply. His task: to lead the im-
plementation of World Class Lean
Enterprise (WCLE) in all the Sidel fac-
tories around the world. WCLE is
used by many leading multinationals
as a tool to deliver best quality prod-
ucts with short lead times, using the
company’s assets in the best possi-
ble way. It takes into consideration all
steps in the process from suppliers of
raw material to the start-up at the end
customer. At Sidel, WCLE has quickly
become an important tool to guaran-
tee continuous improvements.
“What we do is that we look at
every process and assess how much
time that is wasted. It could be time
for waiting, or handling a mistake or
something else. WCLE allows us to
clearly monitor seven different types of
waste, which we then use as a tool to
identify the root cause of the waste and
eliminate it”, says Andrea Forzenigo.
52 _ Sidel people
Tetra Laval_ALLA_2009_2010.indd 52
In short, WCLE is about assessing
the real value of the time spent on a
certain stage or process. The ques-
tion to ask is: what is the part of the
time that the customer would not
want to pay for, or rather: what is the
part of the time spent that does not
add any value.
RADICAL IMPROVEMENTS
The improvements made are stun-
ning, with lead times being cut by up
to 50 per cent and operational inven-
tory at the factories reduced by 40
per cent compared to November
2008. For the filler production, WCLE
was implemented on the whole proc-
ess, from the customer order to the
Factory Acceptance Test. The project
identified possible improvements
both in terms of solutions design and
the production process itself. By radi-
cally changing the way the filler is as-
sembled, a significant improvement
PEOPLE
was seen in the lead time, the accu-
racy of the delivery, the assembly
cost and the inventory.
“In fact, we were able to cut the
lead time from 24 weeks to 12. We
have also gained a 94 per cent ability
to ship the machine on time, with all
parts. The WCLE implementation
met a lot of scepticism at the begin-
ning, but today it is evident for every-
one that it is a tremendous success”,
says Andrea Forzenigo.
One of the other internal advo-
cates of the WCLE implementation is
Frédéric Sailly, Director Product Supply
France, who is responsible for the
Octeville plant, where the implemen-
tation started early on in 2008.
“The WCLE approach has “forced”
us to dive deeply into all non value
added activities, chasing waste at all
stages. In that way, we found that
WCLE not only gave the expected
lead time reductions, but also generated
a lot of extra saving, such as produc-
tivity, inventory reductions, and quality
improvements. One finding was that
a lot of waste was generated by com-
municating wrong or incomplete in-
formation between different entities.
Forcing the different departments to
focus on the same targets clearly
forced the employee to think about
the customer, rather than ‘intra de-
partment tasks’”, says Frédéric Sailly.
SUBSTANTIAL COST SAVINGS
Although there has been increased
costs for implementing the WCLE
mindset, the cost savings have already
been substantial in the first year. But
more importantly, and the sole focus
for the project, customers now expe-
rience better quality and shorter lead
times.
“Customers should know that at
Sidel today, as soon as we identify an
issue there are people looking into
every aspect of it to remove the root
cause. The real impact that WCLE
has shown has been driving the inter-
est and ambition among our staff. In
2010 we will also extend the method-
ology to the installation phases up to
customer acceptance. Today we
have also started to see the interest
of customers for joint projects involv-
ing WCLE for instance concerning
quicker changeovers or the overall
management of the lines”, says And-
rea Forzenigo.
2010-05-04 11.28
 RCA solves a problem
before it occurs
By looking at the source of the problem instead of the problem itself,
Sidel will increase customer satisfaction and cut unnecessary costs.
Like many other industrial compa-
nies, Sidel has always taken great
pride in swiftly solving any customer
problems that occur. Whether it is
giving advice over the phone or jump-
ing on a plane, the staff at Sidel have
taken any measure to assist the cus-
tomer. But what if the problem did not
occur in the first place? Enter the new
Sidel investigation tool, the RCA, root
cause analysis.
Instead of fixing and patching a
problem, the root cause analysis
takes a deeper approach where the
root cause of the problem is identified
and solved. In 2009, Sidel launched
an initiative to further investigate
problems within the blowing portfolio,
using the root cause analysis.
“I realise this sounds basic and
simple, but it is still not easy. What we
have to do is define a solution for the
Tetra Laval_ALLA_2009_2010.indd 53
cause of a problem, instead of solving
the problem itself. Otherwise we will
never be able to eradicate the prob-
lem”, says Stephane Aymonier, Global
Process Owner – Product Evolution.
Together with other Sidel special-
ists, he has been responsible for im-
plementing the root cause analysis
method within the company. The
starting point was the message from
Sidel top management that customer
problems took too long time to solve
and that it was unacceptable that
many of the problems occurred again
and again.
“A recurrent problem is of course
devastating for any customer relation.
We pride ourselves by delivering top
quality and our customers should ex-
pect nothing less. And internally these
problems mean a real cost issue until we
solve them”, says Stephane Aymonier.
FOCUS ON FACTS AND
FIGURES
He says the new approach has lead to
a clear understanding of how certain
problems occur, both giving leverage
to the redesign of the present solu-
tions and providing important insights
for developing new platforms. The
“We pride ourselves by
delivering top quality”
root cause analysis has also brought
different Sidel entities together, creat-
ing a swifter and more fruitful process.
“The root cause analysis forces us to
really work with clear facts and figures.
People from the market companies
get together with the R&D staff and
this provides good insights in both
directions. We have also had the oppor-
tunity to work with colleagues from Tetra
Pak who have provided an excellent
benchmark”, says Stephane Aymonier.
A project that might look internal
from the outside, the focus for the root
cause analysis is strictly to increase
customer satisfaction. Stephane
Aymonier points out customer satis-
faction as the driver in any company,
and with the root cause analysis he
says Sidel has got a new tool to reduce
the time spent on problem solving,
simply by solving the customer prob-
lem before it occurs.
Sidel people _ 53
2010-05-04 11.28
 2009 IN BRIEF

Reduce energy consumption
with ECO Services
Sidel has launched its first ECO Services to respond to bottlers’ and bottle
manufacturers’ economic and environmental concerns. The two new serv-
ices, ECO EIT™ and ECO Booster™, help reduce the impact of packaging
materials (lightweighting, use of recycled materials, etc.), decrease water
and energy consumption as well as waste and emissions. This is done by
closely monitoring and recording data about bottling lines, blow moulders
etc., enabling the ECO EIT™ and ECO Booster™ experts to develop plans
and propose corrective actions in order to improve productions. The ECO
Services family will expand over time, as further proof of Sidel’s commit-
ment to combine business competitiveness with environmental protection.
The totally
revamped sidel.com
On the occasion of the opening of Drinktec in Munich the new
sidel.com was launched. The site has been revamped to be
more customer-focused, user-friendly and with even more
direct access to the website’s contents. The completely newly
designed website now gives visitors an overview of products
and services offered by the Sidel Group to meet all require-
ments not only in the beverage world but also in the food and
homecare sectors. Scroll-down menus take visitors straight to
the images, descriptions and film clips. A new section on com-
plete lines provides a clear, concise description of Sidel’s long-
standing expertise in the field. There is also a section dedicated
to services: from Life Cycle Management to Engineering &
Conveying, PET bottle design and the production of moulds.

Sidel joins NAPCOR

In 2009, Sidel joined NAPCOR (National Association for PET Container
Resources), the trade association of the PET plastic industry in the United
States and Canada. The main reason for this is Sidel’s awareness of the
environmental challenges faced by the beverage packaging industry. By
joining NAPCOR, Sidel is now even more actively involved in environ-
mental initiatives concerning the industry. The membership will also help
the Group enhance its dialogue with other companies in the industry.

54 _ Sidel 2009 in brief

Tetra Laval_ALLA_2009_2010.indd 54 2010-05-04 11.28

 Sidel at Drinktec:

Responsive solutions
for a changing world
In a booth of more than 4,000 m2 the Sidel Group presented
state-of-the-art technologies and services at Drinktec 2009 in
Munich, Germany. At Drinktec, Sidel demonstrated both its
responsiveness and its foresight, being a true partner in responding
to new expectations in a new economy. With the motto “respon-
sive solutions for a changing world” Sidel showed that the com-
pany is able to meet the urgent needs of its customers. This
could be by optimizing the life cycle of the installed base, to re-
engineer a line or to re-invent a package, and by offering new
flexible, sustainable, efficient and cost effective solutions and
equipment. At the exhibition visitors experienced a path through
Sidel’s latest innovations for both equipment and services: 20
pieces of equipment, a tower dedicated to services, a complete
beer line: the most challenging installation ever shown by Sidel at
an exhibition.

Sidel 2009 in brief _ 55

Tetra Laval_ALLA_2009_2010.indd 55 2010-05-04 11.29

 Wine in PET:
A Sidel vintage
In a close collaboration between the French négociant Paul
Sapin, the plastic cap specialist Novembal (Tetra Pak Group)
and Sidel, two wines were specially bottled in 187 and 750
ml PET bottles for the exhibition Drinktec 2009. This was
done with the purpose to fight the preconceived notion that
wine in PET bottles is poor in quality. At the moment, the
main buyers of PET-bottled wine are airlines and railways,
major retail outlets and the hospitality sector, but by improv-
ing the PET bottles this will open up a whole new market.
Single-layer PET allows a shelf life of up to six months in a
187 ml bottle while multi-layer PET can enable much longer
shelf life – up to 24 months for a 750 ml bottle.

Kohlox™ takes the grease

out of moulds
For blow moulders to work well, regular greasing operations are needed as moving parts
generate friction. However, this kind of operation takes time. To reduce maintenance
time for blow moulders Sidel has created Kohlox™, a new material that is used in
moving parts such as studs and wear rings. This is a self-lubricating material
which does not require any greasing operations for the moulds. By using
Kohlox™, maintenance time is reduced by two minutes per operator
and mould a week, which is a considerate amount of time in pro-
duction. Not having to grease the moulds also helps improve
mould cleanliness by eliminating the possibility of grease
splashes or deposits, which are sources of persistent dirt.

56 _ Sidel 2009 in brief

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 Predis™
– the dry alternative
Predis™, Sidel’s patented dry preform decontamination system ini-
tially used for beverages distributed in the cold chain, can now also
be used for products sold at ambient temperature. Combi PredisTM
FMa is Sidel’s innovative, simple system for blowing bottles and fill-
ing sensitive products in aseptic conditions. The key feature setting
the system apart from other equipment of the same type is its “dry
preform technology”: bottle rinsing is replaced with dry preform
sterilization at the oven entrance. Predis™ ensures superior hygiene
for sensitive beverages while offering unrivaled cost-effectiveness
along with product and environmental benefits since no water is
used and fewer chemical agents are needed. PredisTM has already
been selected by a number of beverage producers in Europe, Asia
and North America.

New Engineering &

Conveying Business Unit
Since the start of the global economic crisis, Sidel’s customers have been
focused on the optimisation of existing bottling lines, rather than investments in
new production capacity. Therefore the company has created a new Engineering &
Conveying business unit which gathers all the skills within line audits, flow
studies, layout design, auxiliary processes, piping, worksite coordination,
all types of conveying and accumulation systems. By doing so,
Sidel guarantees that the skills are put in even better use
for refurbishments, transfers or other line adaptations.
The unit works under the leadership of former
Gebo President Marc Aury and is already
operating worldwide, with more than 800
highly qualified staff based in North and
South America, Europe and Asia.

Sidel 2009 in brief _ 57

Tetra Laval_ALLA_2009_2010.indd 57 2010-05-04 11.29

 DELIVERING EVERYDAY EXCELLENCE

PRODUCTS

More eco-friendly
PET packaging for milk
A world’s first: the French dairy company LSDH is launching a lightweight PET
bottle, without a sealing lid, for UHT milk, thanks to the Predis™ technology.

58 _ Sidel Products

Tetra Laval_ALLA_2009_2010.indd 58 2010-05-04 11.29

 LAITERIE DE SAINT-DENIS-DE-L’HÔTEL (LSDH )
/ JUS DE FRUITS D’ALSACE (JFA)

Headquarters: Saint-Denis-de-l’Hôtel (Loiret, France)

Production sites: 3
Employees: 650
Sales in 2008: € 320 M (juice: 60% ; milk: 25% ; other: 15%)
Production in 2008 : 620 million packages (75% in Tetra Brik, 20% in PET,
5% in glass)
Sidel complete line: preform infeed, Combi Predis™ FMa, shrink wrapper,
conveyors, EIT™ system (Efficiency Improvement Tool).

“A global revolution.” Emmanuel Vas-
seneix does not mince words. The
young CEO of Laiterie de Saint-
Denis-de-l’Hôtel (LSDH ) based in the
Loiret countryside, approximately
100 miles south of Paris, is talking
about the 1-litre UHT milk bottle
made from PET, with its slogans em-
blazoned on the label: “Ecological.
Practical. No sealing lid.”
Emmanuel Vasseneix lists the ar-
guments in its favour: “at only 28
grams, this bottle is lighter than the
traditional polyethylene bottle and
thus more ecological. For the con-
sumer, it’s both practical and safe,
with its completely leak-proof cap,
which replaces the aluminum sealing
lid. Finally, PET allows us to diversify
and personalize bottle shapes.”
Since the summer of 2009, this
bottle has been produced on a Combi
Predis™ FMa, at a rate of 24,000
PET bottles per hour.
INNOVATE TO DIFFERENTIATE
“Innovation is the only way to differ-
entiate your company,” insists Em-
manuel Vasseneix. “If you are doing
what everyone else is doing, price will
be the only differentiator!”. This mind-
set has certainly paid off. During the
years, LSDH has been at the forefront
of product and packaging innovation,
resulting in LSDH packages receiving
both a Packaging Oscar and a Gré
d’Or in the Innovation category.
With the milk market remaining
stable at 3.5 billion litres consumed
per year in France, differentiation is all
important. To increase its production
capacity and thus meet its custom-
ers’ expectations, LSDH decided to
take another technological leap for-
ward: the acquisition of a Sidel line
equipped with a Combi Predis™ FMa.
This was a first for sensitive beverages
with neutral pH.
LIGHTWEIGHT AND ENVIRON-
MENT IN FOCUS
This new technology was chosen for
several reasons, explains Emmanuel
Vasseneix. “First of all, there was the
environmental aspect: the dry decon-
tamination system consumes very lit-
tle disinfectant, and it reduces water
consumption to next to nothing.” As
Vasseneix says, “you have to look
ahead to the company’s future re-
sponsibilities, both to society and to
the environment.” Another important
feature for LSDH was “the possibility
of lighter bottles: we have gone from
28 to 24 grams thanks to the Pre-
dis™ system, which sterilizes pre-
forms instead of bottles. We have
decreased bottle weight by nearly 20
per cent, and we no longer have the
thermal constraints associated with
bottle decontamination.” He adds: “fast
output rates, innovative technologies
and Sidel’s recognized expertise in
bottles all had a role in our choice.”
WEIGHT REDUCTION NEXT
STEP
The system’s flexibility is also appre-
ciated when products have to be
changed three or four times a week
on the same line which runs 24 hours
a day, six days a week, in order to
bottle short runs and promotional
products. The new line is up and run-
ning for part-skim, skim and whole
milk in 1- and 1.5-litre bottles. 5-litre
bottles are to be added to the line in
2010. Product shelf life is three to
four months at room temperature.
As a next step, LSDH is looking to
lighten its PET milk bottle even more,
in collaboration with Sidel, with the
goal being to get it down to 22
grams. LSDH is also targeting high-
end markets (infant formulas, vitamin-
enriched milk, products for seniors,
etc.) and clearly announces its ambi-
tion: “to become the national brand
for major retail customers.”

Sidel Products _ 59

Tetra Laval_ALLA_2009_2010.indd 59 2010-05-04 11.29

 Labelling with
maximum flexibility
The SL 90 labeller meets the growing market demand
for both paper labels applied with cold gluing and self-
adhesive transparent labels.
Also suitable for high speeds, this labeller is entirely
driven by servo motors, making it particularly efficient
and flexible. With no gears at all, maintenance and for-
mat changeovers have been greatly simplified. Labels
are centred electronically: a vision system, combined
with bottle platform servo motor drive systems, orien-
tates the bottles to ensure that even the most complex
formats are perfectly positioned.
The SL 90 can also handle very lightweight self-ad-
hesive labels: an air system controls the tension of the
film, reducing mechanical stress. Since the machine
can be cleaned very quickly, savings in energy con-
sumption are optimised. Moreover, overall line noise
levels are low because of the use of servo motors.

Rollsleeve turns
the art of labelling
The Rollsleeve machines are innovative rotary labellers that create
and apply plastic shrink sleeves from a machine direction (MDO)
label onto glass, plastic and metal containers. Traditional sleeves
are applied transversally (TDO), a technique that requires substan-
tially more material.
The special feature of these machines is a shrink sleeve creation
and application by a lengthways reel, with a unique welding system
ensuring that the labels are closed with no need for glues or sol-
vents. The Sidel Rollsleeve is not restricted to only one type of mate-
rial but instead can work many types of materials and thicknesses
due to the bottle moving down into the created sleeve, instead of
the sleeve being pulled down over the bottle.
Compared to traditional TDO labelling, the Rollsleeve leads to a
cost saving of 15-20 per cent. In addition, there are apparent environ-
mental benefits because of the absence of chemicals in the process.

60 _ Sidel Products

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 DELIVERING EVERYDAY EXCELLENCE
SIX programme cuts
installation times
An initiative to improve the installation process
has led to substantial cuts in lead times and
costs and a lot of praise from customers.
One of the key factors of success for
Sidel is a well-managed installation of
complete lines and standalone equip-
ment. Obviously, a smooth installation
process that runs according to plan is
a solid sign of Sidel’s ability to deliver
high quality. With this in mind, Sidel
launched an initiative in 2009 to monitor
and optimise the installation process.
The SIX programme (Sidel Installa-
tion eXcellence) aims at enhancing
the speed and quality of the installa-
tion of standalone equipment as well
as complete lines.
“This project is about delivering a
world class customer experience. We
look at the elements of the installation
process to see where we have pos-
sible improvements and try to find the
root cause of any issues. We have also
launched a comprehensive compe-
tence development programme among
our staff to increase knowledge sharing
about the installation process”, says
Stefano Calestani, Global Technical Pool
Director at Sidel Group.
He has been responsible for the
design and implementation of the SIX
programme, which has covered all Sidel
markets and so far more than 300
installation projects. The objective has
Tetra Laval_ALLA_2009_2010.indd 61
PARTNERSHIP
been to cut installation costs and in-
crease the quality of on-site execution.
So far, SIX has turned out a success.
“We have cut the average installa-
tion time by 4 weeks, compared to
similar installations in 2008. We now
are working to secure additional im-
provements during 2010 by speeding
up the project with a Lean approach
and investing in sustainability.”
The SIX programme has integrated
new ways of working into Sidel’s day-
to-day activities worldwide. One of
the key elements has been the man-
agement, control and reporting sys-
tem which has introduced increased SIDEL INSTALLATION VISION
predictability and systems for antici-
pating risk prior to the installation “We commit to establishing a culture of
phase. The control intervals are tighter
and the competence development
performance across the value chain
programme has led to a culture of and developing competencies to deliver
continuous improvements.
“At the end of the day it all boils
world class installations with predictable
down to customer experiences. We results that satisfy our customers and
have received a lot of praise from our increase our competitiveness.”
customers after launching the SIX
programme. They see shorter lead
times, improved overall quality and
better project management”,t , concludes
Stefano Calestani.
Sidel Partnership _ 61
2010-05-04 11.30
 Strong partnership
cuts global lead times
Japanese Ferrotec has become a model-like partner in the strategy of sourcing interna-
tionalisation and in the localisation of modules in China to supply Sidel’s plant in Beijing as
well as the European plants.
An important part of Sidel’s strategy
during the last few years has been to
closely monitor and evaluate all sup-
pliers. Cutting lead times, securing
the right specifications and initiating
new price negotiations allow Sidel to
offer a more competitive product port-
folio from many aspects. In addition,
a close cooperation with suppliers
results in better product development
and increased quality performance.
In China, it was decided to develop
a strong partnership with a strategic
supplier, to support the set-up of the
Sidel plant in Beijing in 2008. The
choice was Ferrotec, a Japanese
company with 4,000-plus employees
and two manufacturing sites in China;
Shanghai and Hangzhou. Certified for
both ISO 9001 and 14001, this sup-
plier was chosen for its rigorous com-
62 _ Sidel Partnership
Tetra Laval_ALLA_2009_2010.indd 62
mand of the manufacturing and con-
trol processes. The contract runs over
five years, covering GUPM’s (large
mould support units) and front and
rear modules. These are some of the
most technically complicated sub-
assemblies in Sidel’s entire production.
FOCUS ON QUALITY
Ferrotec has invested in new equip-
ment and in facilities dedicated to
Sidel, such as a manufacturing shop,
assembly room and measurement
room. Production started in early 2008,
with the assistance of Sidel experts
from China and France. Ferrotec and
Sidel have also worked closely to source
and qualify each stage of manufac-
turing of the sub-assemblies, includ-
ing raw materials, milling, control,
tests, treatments and packaging.
In order to reduce lead times and
to be price competitive, Ferrotec has
also implemented Lean Manufactur-
ing with strong support from Sidel
Beijing and external consultants. To
continue the progress and to main-
tain an unyielding level of quality,
Ferrotec is also using the 6 Sigma tools.
ZERO DAYS LEAD TIME
An overall challenge for Sidel is to se-
cure the proper sourcing of parts and
products despite the different entities
of the group being spread across the
globe. In the case of Ferrotec, this has
been solved by a consignment stock
in Octeville, France. By implementing
a consignment stock, there is no dif-
ference in the lead time between a
local supplier in France and Ferrotec
in China. In fact, the lead time today
is down to zero days, and the stock is
under the management of Ferrotec.
Although there are a number of
challenges; in the form of distance,
cultural differences and highly techni-
cal products; Sidel and Ferrotec have
shown that it is possible to establish a
two-way partnership where high
quality products are shipped from
China to France without hampering
lead times, quality or costs.
For Sidel, it is of the utmost impor-
tance to ensure best quality and lead
times and to control the cost of the
technical sub-assemblies. Only then
can Sidel be the most competitive
partner on the market. The partner-
ship with Ferrotec clearly demon-
strates this ability.
2010-05-04 11.30
 Predis develops partnership
between two companies
For leading Japanese pharmaceutical company Otsuka, Predis from Sidel was
a perfect fit. The ground-breaking solution helped Otsuka underscore the
healthy and environmentally friendly profile for the isotonic drink Pocari Sweat.

The beverage market has long been At Otsuka, Predis is used for produc- extremely quality and performance
a focus of Otsuka Pharmaceutical’s tion of the isotonic beverage Pocari oriented. Counting them among our
development programmes. After having Sweat, which is a very popular drink customers is the best reference we
tried out various local or regional sup- among health conscious people all over can get”, says Sebastien Geffrault.
pliers, the company searched for new Japan and in many Asian countries.
partnerships with top-standard world- Today, some of Otsuka’s filling lines
wide groups able to supply them with are equipped with Predis technology,
break-through innovation. In this, the producing bottles in two different
key for success for Sidel was the countries.
ground-breaking Predis solution. In- “Otsuka was the first customer in
stead of cleaning the full-blown bottle, Asia to acquire Predis. That a renowned
preforms are decontaminated. big player chose our technology has
“Our innovation and its high tech- meant great leverage. Otsuka, like
nology content allowed two great many other Japanese companies, is
companies to become partners in a
true win-win relationship. Otsuka is a
company focusing on health and
eco-friendliness and here is where
Predis is a perfect fit”, says Sebastien
Geffrault, Director Account Manage-
ment and Marketing for Sidel Group
in South East Asia Pacific.
By decontaminating the preforms in-
stead of the bottles, customers can
radically cut the use of water and chem-
icals. In addition, it gives the possibil-
ity to reduce the weight of the bottle,
which not only saves costs but also
reduces the environmental footprint.

Sidel Partnership _ 63

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 DELIVERING EVERYDAY EXCELLENCE
2,000 bottles per mould per hour: that is the output rate for the new
SBO Universal2™ blow moulders, now more robust and more reliable.
With more than 5,000 blow moulders
in service around the world, including
800 SBO Universal™ machines, Sidel
has amply demonstrated its blow
moulding know-how. Today, nearly 200
machines are operating at more than
40,000 bottles per hour, attesting to
Sidel’s experience with high speeds.
Thanks to its large installed base,
Sidel knows how to take its customers’
needs into account to continue im-
proving the performance of the blow
moulders. These improvements apply
to blow moulders that are already in
service as well as to the latest gener-
ations of SBO Universal™ machines.
UNMATCHED PERFORMANCE
Sidel’s technological expertise and its
extensive experience will benefit
companies acquiring the new range
of SBO Universal2™ blow moulders,
whose output of 2,000 bottles per
mould per hour put them among the
world’s fastest blowers.
Also available in Combi configura-
tion, this new range can reach record
productivity levels without any com-
promise in terms of robustness or
production reliability. It decreases un-
planned downtime to less than 3 per
cent through the use of more robust
64 _ Sidel Innovation
Tetra Laval_ALLA_2009_2010.indd 64
INNOVATION
Sidel blow moulder
shifts into higher gear
components and fewer spare parts. It
ensures flawless productivity with
guaranteed efficiency of 97 per cent
and optimised production costs.
BOTTLE QUALITY AND
ENERGY SAVINGS
The new SBO Universal2™ machines
have the same heating reserve already
available for the SBO Universal™ range,
with identical oven configuration and
installed power. New lamps decrease
energy use by up to 10 per cent. To
optimise heating power and quality,
the distances between the lamp rack
and the preforms and between the
reflectors and the preforms can be
adjusted as a function of the process.
The result is a wide processability
window and impeccable bottle quality.
At the blow mould station, the bell
nozzle ensures neck stabilisation to
keep the preform centred and guaran-
tee bottle quality.
RELIABILITY AND ROBUST-
NESS TO WITHSTAND ANY
TEST
The reinforcement of the spindle chain
structure increases its service life and
enables speeds of up to 2,000 bottles
per hour per mould. To guarantee per- dampers have also been adapted.
fectly repetitive, precise and reliable Centralised, automatic lubrication on
movements, the laws of movement the blow wheel ensures good cam
have been completely reworked: the lifetime and transfer reliability. To im-
new cam profiles and the new, opti- prove information flow and reduce
mised transfer arms help to increase response times of the solenoid valves,
the speed. a new electrical rotary union has been
The mechanical transmission has installed, and the automation archi-
been modified to ensure greater reli- tecture has been revised.
ability, with a new, more powerful motor The high speeds with the SBO
and a new gear module. The mould Universal2™ range are adapted to all
base cams and the mould open/close bottle shapes and to lighter packages.
eQuick Change:
Format changeover times
reduced by 50 per cent
As an optional feature, the SBO Universal™2 can come equipped
with the new eQuick Change system patented by Sidel. It provides
ultra-fast connection of the cooling circuit to the mould neck with
just one click. In less than five seconds per mould, all of the piping
that feeds the neck circuits with water and the electrical cables for
the temperature probes are connected and disconnected. This
leads to 50 per cent time savings with respect to the Quick Change
version. Implementation is extremely simple: a single part to handle
and just four operations to perform without any tools. The eQuick
Change system is perfectly adapted to HR moulds (Heat Resist-
ance) and can be adapted to all of Sidel’s latest-generation blow
moulders (SBO Universal™, SBO Series2 and SBO Series2+).
2010-05-04 11.30
 Taking beer filling
to a new level
At the Drinktec fair in Munich last
year, one of the Sidel stars was the
new SF 300 LP level-probe electronic
beer filler. Equipped with electro-
pneumatic components integrated
on the filling valve, self-draining sur-
faces and efficient servo motors,
the SF 300 LP is not only a techni-
cally advanced solution, but also a
solid answer to the many environ-
mental requirements from customers
all over the world. One example of
this combined sustainability and
technology thinking is an external
product tank, allowing for a sub-
stantial cut in the consumption of
water and chemicals and a minimum
product loss during changeover.
Tetra Laval_ALLA_2009_2010.indd 65
The SF 300 LP takes beer filling to a
new level in several areas; sustain-
ability of course, but also hygiene,
efficiency and flexibility. The design
of the machine structure has reduced
the surfaces to a minimum and many
mechanical components have been
eliminated, compared to a traditional
solution. The few surfaces left are
self-draining and the machine access
has been improved to simplify main-
tenance and cleaning operations.
An automatic, telescopic crown
chute gives great flexibility by guaran-
teeing an intervention-free adapta-
tion to all bottle height formats and
greater reliability of fine adjustments.
Sidel also offers the option of
installing the SF 300 LP in a block
with an ultra-clean crowner. The
crown feeding on the exposed filler
takes place through an Aidlin 24CR,
specially designed for very high speed
(1,350 crown/minute), highly reliable
and featuring increased hygiene and
performance due to the gravity orien-
tation principle used in the patented
Aidlin™ waterfall system.
“The technical features of the SF
300 LP enable Sidel to compete with
the most qualified solutions in the
market and to meet the requests
from even the most demanding cus-
tomer”, says Stefano Baini, Filling
Equipment Product Manager at Sidel.
Sidel Innovation _ 65
2010-05-04 11.30
 “The ECO Booster surely
combines financial with
green benefits”

66 _ Sidel Sustainability

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 DELIVERING EVERYDAY EXCELLENCE
SUSTAINABILITY
ECO Booster reduces
energy consumption
The new ECO Booster program from Sidel is aimed at reducing the energy
consumption of blow moulders. But it has more to it than just green issues.
Say ECO Booster and most people
probably think of the environment.
But this new solution from Sidel actu-
ally has more to it. By thoroughly au-
diting blow moulding equipment and
proposing improvements, Sidel now
can give the customer both an envi-
ronmental and economic boost.
The ECO Booster represents a
progress based approach that is
founded on Sidel’s knowledge of the
installed base, a process database
that is constantly being enhanced and
on site evaluation by specially trained
experts. All in all, this gives energy
savings that guarantee a quick return
on investment, as well as a reduction
in the environmental footprint.
“Energy savings are not only about
the environment. A lower energy con-
sumption makes it easier to get en-
ergy commissions or reduced tax in
some markets. So the ECO Booster
surely combines financial with green
benefits. In fact, one bar of pressure
gained on the high pressure line
represents savings of more than
€ 20,000 per year”, says Luc Desoutter,
Sustainability Officer at Sidel Group.
During the global financial down-
turn, many companies have gained
interest in production optimisation.
Still, there is insufficient knowledge
on what options there are and how
easily the performance can be in-
Tetra Laval_ALLA_2009_2010.indd 67
creased. Here is where ECO Booster process and preform design optimi- “Owing to our location in a natural
comes onto the stage. sation, as well as new tools for moni- heritage site and to the high environ-
toring and controlling energy con- mental awareness of our manage-
sumption. With all this in place, the ment team and all our staff, we are
AUDIT AND CORRECTIVE
final step of the ECO Booster is to constantly on the lookout for initia-
ACTIONS
validate the actions taken and to tives that can help us decrease our
The ECO Booster programme is a four show this by putting the Eco stamp environmental footprint. Sidel is one
step process. It starts with an in- on the equipment. of the first of our suppliers to make
depth analysis of the installed equip- this investment with us and to pro-
ment, looking at power consumption, vide us with its expertise in meeting
SUCCESS IN BELGIUM shared environmental and economic
air pressure, process and package,
air and water quality, mechanical Belgian Spadel Group was one of the goals. This approach is extremely
control and machine environment. In first customers to perform the ECO positive, and we are expecting great
a complete line, the blow moulder ac- Booster. The program was carried things from it”, says Joffrey Joassin,
counts for some 70 per cent of the out on five Series2 blow moulders and Technical Development Manager of
total energy consumption, making it two Combis installed at Spa Monopole. the Spadel Group.
the obvious starting point for process
optimisation.
The second step of the ECO
Booster is a comprehensive report
compiled from a comparison of
measurements with standard ma-
chine production data that has been
acquired from Sidel equipment all
over the world. The report evaluates
the main observations, their impact
on consumption and the cause of
any problems. Finally, it proposes a
tailor made solution as a function on
the desired return on investment,
with evaluation of potential gains.
The next step is the actual correc-
tive action on the blow moulder, refur-
bishing and improving the oven and
blow station. This could also include
Sidel Sustainability _ 67
2010-05-04 11.30
 Putting green
words into action
At Sidel, the efforts within sustainability
are about more than fine words. Today,
every new product or solution shows
evident environmental benefits. On this
page you will find three examples.
SR-E rinser
This new electronic rinser offers a variable rinsing treatment
time in order to minimise water consumption. A special mo-
bile nozzle combines water and sterile air to maximise the
cleaning performance while at the same time halving water
consumption. Equipped with electro-pneumatic technology,
the SR-E rinser enables the operator to check the pressure of
individual valves at all times. If any pressure differences are
detected by the special sensors, immediate action can be
taken during production. Also, the treatment times can be
optimised according to the format, leading to less water and
chemical waste.
68 _ Sidel Sustainability
Tetra Laval_ALLA_2009_2010.indd 68
SF 300 FM filler
A simple machine design giving a high level of hygiene is the
most apparent feature of this new filler for carbonated soft
drinks and beer. But the machine also comes with a set of
real environmental benefits. The use of torque motors instead
of motors with a traditional asynchronous mode has cut the
energy consumption substantially. The internal cleaning
circuits have been optimised in order to reduce chemical
wastage; and by finding a new design for the product feeding
system CO2 consumption has been reduced. The end result
is a technically advanced filler for demanding customers;
customers who also have high expectations on environmen-
tal performance.
SM 900 mixer
In a stand alone mixer, about 50 per cent of the CO2 intro-
duced is lost during production. In the SM 900 this figure is
down to 12 per cent. The electronically controlled centrifugal
pumps ensure the optimisation of the various production
stages, resulting in significant energy savings. A liquid ring
vacuum pump means there is no need for the use of water.
The SM 900 mixer can handle a wide range of products, from
CSD and carbonated water to diet beverages and beer. The
quick format changes guarantee maximum production conti-
nuity, and the de-aeration system removes air down to 0.5
ppm, providing greater product stability.
2010-05-04 11.31
 Corporate
presentation
2009/2010

Your solution – every day

Tetra Laval_ALLA_2009_2010.indd 69 2010-05-04 11.31

 Corporate presentation 2009/2010

DeLaval in
two minutes

DeLaval facts
tain and guide dairy producers with
complete solutions to adapt to their
Number of employees 4,077
needs. We are committed to the dairy
Net sales 805 million Euros
industry now and in the future. We have
Vision Whenever dairy farmers have a need they should
a proud 125-year heritage of driving
think first of DeLaval
progress in milk production together
Mission We drive progress in milk production
with our business partners.
Solutions DeLaval offers four Capital Goods systems: System Rotary,
System VMS, System Stanchion & Other Animals and System Parlour. People – our people are empowered
DeLaval customers can also choose from a wide range of to assume responsibility
Aftermarket consumables and services which are grouped in four We are proud to be part of a global
Portfolios: Liners & Tubes, Farm Supplies, Services & Original Parts, community and we respect and en-
Milk Quality & Animal Health. courage the diversity and creativity
coming from the mix of cultures, gender,
religions, experiences and personalities.

Our brand
It is our goal to turn the very well-known
and respected brand that DeLaval is
into a promise to our customers, a
promise that is relevant to them and
which they see as a reason to choose
DeLaval. As dairy farmers, our custom-
ers have one of the toughest and most
interesting jobs there is. They manage
their farms with an increasing level of
high technology, and larger staff strength
as a result of the consolidation in the
industry, and of course larger herds.
They juggle all the above complexities
to produce one of the world’s most
nutritious foods. DeLaval helps farm-
ers run their farms their way by pro-
viding their solutions, every day.
Our brand promise is therefore to
empower the dairy farmer with im-
proved control over milk production.
DeLaval accomplishes this by offer-
ing complete, reliable and profitable
solutions, including close support.
Core values
Passion – we share a passion
for dairy farming
Our focus is to help to improve, sus-
Professionalism – we are professio-
nals who earn our customers’ trust
through commitment and reliability
We are committed and structured in
order to create profitable business
throughout the value chain.
Partnerships – we believe in partner-
ships built on mutual trust and benefit
Our customers, their needs and
expectations are the starting point for
everything we do. We are characterised
by our close relationships with all
players in the value chain through
proximity, attitude and support.

70

Tetra Laval_ALLA_2009_2010.indd 70 2010-05-04 11.31


Environment and CSR
Our Corporate Social Responsibility
(CSR) cornerstones are:
Food for Development
Food for Development is an important
part of DeLaval’s corporate social re-
sponsibility. The target is to achieve
sustainable social and economic dairy
development by promoting public-private
partnership in developing countries.
We are committed to helping cus-
tomers, governments and community
based organisations to provide milk to
children around the world. A public-
private partnership is the best way to
fight rural poverty and malnutrition
through dairy development. All DeLaval
activities are long-term business de-
velopment projects aimed at encour-
aging demand for locally produced
dairy products and pushing for trans-
formation of subsistence smallholders
into commercially viable farmers.
Sustainable Dairy Farming
Sustainable Dairy Farming is a DeLaval
initiative to support farmers. The goal
is to reduce the environmental foot-
print of farms, while improving milk
Tetra Laval_ALLA_2009_2010.indd 71
production, farm profitability and the
well-being of the people and animals
involved. DeLaval believes this goal
can be achieved by providing techno-
logy and services to increase resource
efficiency. Or, put another way, by
supporting dairy farmers to do more
with less.
R&I
Research and innovation has been
essential to DeLaval’s steady progress.
This is especially emphasised in
product development, where the team
works in close contact with a world-
wide network of farmers, academics,
dedicated research facilities, scien-
tists, sales teams, authorised dealers
and other agricultural experts.
Smart Farming
Smart Farming is a DeLaval initiative
aimed at influencing and shaping the
future of dairy farming today. The goal
is to accelerate the transition from
milking management to global farm
profitability management by harness-
ing emerging decision tools and auto-
mation technologies for better quality
milk and profits.
71
Corporate presentation 2009/2010
Focus on service
In a competitive market, good customer
service differentiates one company
from another. To strengthen the strong
partnerships we have with our custom-
ers, we have created InService™.
It is a new trademark for service
taking into consideration that every
farm is different and every farmer
unique, whilst adapting the solutions
to their particular requirements
Quality
We have a strong and long commit-
ment to constantly improve milk quality,
hygiene, and animal welfare. We work
with dairy farmers to protect their in-
vestment by supplying highly efficient
system solutions for milking, herd
management, animal traffic control,
feeding, cooling, manure handling,
ventilation and energy recovery, as
well as Biosecurity and Animal Health
related products.
Markets and customers
DeLaval operates with more than 4,000
employees in over 100 markets. DeLaval
provides integrated solutions that cover
not only cow but also sheep, goat and
buffalo dairy farms to over 1,000,000
customers around the globe.
2010-05-04 11.31
 PEOPLE | Corporate presentation 2009/2010
DeLaval Voluntary
Milking System
(VMS) transforms
dairy farming into
a 9 to 5 job
Danish dairy farmer Erik Jørgensen has
been a farmer all his life. He never
thought he would see the day when
livestock would willingly enter a stall
to be milked by a machine. But since
he started up his VMS-adjusted barn
two and a half years ago, dairy farming
as he knew it changed forever. These
days he almost works regular office
hours and spends most of his time
monitoring and managing his herd in-
stead of doing hard manual labour.
The cows are happier than ever and he
can spend more time with his family.
In short, life is good for Erik Jørgensen.
Designed and built especially for VMS
it has been little more than two years
since Erik Jørgensen’s new barn has
been up and running. But the process
leading up to the decision to go with
DeLaval VMS took almost six years.
One important factor behind his deci-
sion to choose DeLaval was the ability
to manually control the milking arm on
the VMS and he demonstrates just how
easily he can take control of the milk-
ing arm and manually attach it to the
udder which is important when train-
ing new cows.
“Animal welfare is what matters
most to me and I was concerned that
Tetra Laval_ALLA_2009_2010.indd 72
milking robots would cause the cows
undue stress. I visited other farms and
saw that the animals did not suffer with
VMS, in fact it was the other way around.
I also looked at competing products
before finally deciding to go with
DeLaval’s Voluntary Milking System,”
says dairy farmer Erik Jørgensen.
A new way of life as a dairy farmer
Located in Sjørslev on the Danish
Jutland, Erik Jørgensen and his
brothers took over the farm from their
father in 1978. The original barn was
built in 1986 and equipped for a herd
of 50 cows. Back then this provided
plenty of space but now he has almost
three times as many cows. His three
sons help out when they are not in
school. One day they might follow in
their father’s footsteps and become
dairy farmers too. With milk prices
dropping, Erik Jørgensen doubts that
he would have made the investment
in a new barn had it not been for his
sons’ interest in dairy farming. But he
is very satisfied with the new way of
life that has come about with VMS.
“It’s a big change from having to
get up every morning at four to milk
the cows. The VMS comes with a
72
freedom that was never possible before,
I can sleep-in if I choose to. Since I don’t
have to be in the barn at specific hours
I can plan the work day around my
family. The whole barn is monitored
by camera so I can sit and watch from
home instead of having to be on site
all the time. Not having to endure the
hard labour of milking every day eases
up pressure on my back and I would
say my overall quality of life has im-
proved a great deal with VMS,” Erik
Jørgensen says.
Another great advantage of the
freedom that comes with VMS is that
more people are attracted to farm work
because of the improvement in work-
ing hours. Erik Jørgensen has been
fortunate to have had the same man
working for him for fifteen years but
should he resign it will be a lot easier
to find a replacement than previously.
Animal welfare is good for business
Once Erik Jørgensen had made the
decision to invest in the DeLaval VMS
he went all out, and with help from
DeLaval, built a state of the art barn
customised for his particular needs.
The barn is organised so that he can
easily move around and have a clear
2010-05-04 11.31

view of every corner. Animal circulation
is optimised for an even flow through
the two VMS units in the middle of
the barn and cows with special needs
such as those who are pregnant or
sick are automatically separated off.
This makes the job of taking care of
the herd a lot easier. Animal welfare is
good for business. “Taking care of the
animals is the most important part of
a dairy farmer’s job. Happy cows pro-
duce much more milk and with VMS
they are happier than ever because
they don’t have to wait until I milk
them. Instead they can choose when
and how often they want to be
milked; some of them as often as five
times a day, others only twice a day.”
says Erik Jørgensen.
The hydraulic arm on the DeLaval
VMS is fast and reliable. Designed to
create a comfortable milking experi-
ence for the cow, the VMS has nothing
Tetra Laval_ALLA_2009_2010.indd 73
PEOPLE | Corporate presentation 2009/2010
placed under the animal during milking.
To avoid spreading disease, hygiene
standards are another important issue.
With the DeLaval VMS the teat cup is
cleaned between each milking. “For
us, animal health and welfare are al-
ways in focus and we have come a
long way. Today, automatic systems
are an accepted method but we have
only just begun scraping the surface
in this field, the possibilities are end-
less. No one will want to run their
dairy farm operation in any other
way,” says Jonas Hällman VMS Port-
folio Director at DeLaval.
The comfort of around the clock
support
It is clear that Erik Jørgensen cares
deeply for his animals and when the
cows suffer he suffers with them. That
is why well functioning VMS robots
are of the utmost importance. A halt
73
in production is painful for cows that
are not milked when they need to be
and it can take a lot of time to catch
up. To avoid a breakdown, the farm
has its own energy and water supply.
But if something should happen the
DeLaval service technicians are a
phone call away. The long-term com-
mitment from DeLaval was important
to Erik when deciding to make the in-
vestment in VMS. “It is a great comfort
to have the DeLaval’s VMS service
team. I can call them 24/7 and their
technicians impress me with their
knowledge of the VMS robot. Some-
times they don’t even have to come
out to the farm, they can guide me
step by step over the phone which
saves a lot of time. If I have an issue
with my computer software they can
access it remotely and I just sit back
and watch them solve my problem,”
says Erik Jørgensen.
2010-05-04 11.32
 PEOPLE | Corporate presentation 2009/2010
An office job
Managing the herd from his office de-
mands a different skill set than tradi-
tional dairy farming. But although Erik
Jørgensen had no previous computer
experience he has quickly adjusted to
using computerised data to improve
his operation, which helps increase
production and achieve higher quality
milk. With higher quality milk he can
earn more than one hundred euros extra
per cow per year and the possibilities
to fine tune everything from feed to barn
temperature are endless. The goal for
Erik Jørgensen is not to have the largest
dairy farm operation in Denmark but
the most efficient. “The cows are quick
to learn how to use the VMS but just
like people they are individuals. Some
of them don’t like the feed as much so
even when their udders are full they are
still not as eager to enter the VMS which
can lead to fewer milkings. Finding a
feed that most cows like is a challenge,
cows can be just as picky as humans.
For example, if it were me in there I
would have preferred some Danish
pastries,” laughs Erik Jørgensen.
Sustainability comes in many forms
Erik Jørgensen recognises the need
Tetra Laval_ALLA_2009_2010.indd 74
to reduce the environmental footprint
of the farm and the VMS helps him do
that. When the milk cools from the cows’
body temperature of 38 degrees to the
storage temperature of four degrees
the excess heat is used to warm up his
home – saving thousands of litres of oil.
VMS works seamlessly with this since
it provides a constant flow of milk in-
stead of peaking during certain hours.
According to the Danish Agricultural
Advisory Service, DeLaval’s VMS ranks
among the top Automatic Milking
Systems in the world for energy effi-
ciency. “Sustainable dairy farming is not
only about reducing environmental im-
pact. It’s also about increasing efficiency.
If I can improve the yield from each cow
I can keep the herd smaller which also
means less impact on the environ-
ment,” emphasises Erik Jørgensen.
VMS 2010 - The sky is the limit
So far VMS has changed the lives of
more than 6,000 dairy farmers. Since it
was launched over a decade ago a lot
has happened and DeLaval continues
to make improvements with each new
model. The VMS 2010 is more robust
and serviceability has improved. A new
touch screen operating system and
74
the option of a steam backflush unit
that uses steam to disinfect the VMS
between each milking are some of the
new features. “When we designed the
VMS, we applied all of DeLaval’s know-
ledge of dairy farming. The engineers
knew that to work well in the barn en-
vironment, the VMS had to take many
things into consideration. Our vision of
Smart Farming is to continuously im-
prove the smartness of the system. If we
can connect everything from feeding
to animal health systems we have come
a long way. Reducing energy and water
consumption, supporting animal welfare
and boosting production are corner-
stones of the DeLaval VMS and we will
continue to broaden the offering with
every new version,” says Jonas Hällman.
Despite fierce competition from
countries with lower production costs,
the future looks good for Erik Jørgen-
sen. He believes the key to survival is
products that give good value for money.
“Today, I have a very modern farm but
ten years from now I am sure it will be
obsolete. If someone had told me about
VMS fifteen years ago I wouldn’t have
believed it possible and here we are now.
I don’t know what the future holds, but
to me, the sky is the limit,” concludes
Erik Jørgensen.
2010-05-04 11.32

2009/2010 in brief
Sustainability in focus at IDF World
Dairy Summit
Sustainability in European dairy farm-
ing was one of the major topics at IDF
Berlin. At the event DeLaval put forward
its Sustainable Dairy Farming strategy,
presenting solutions that are already
helping dairy producers globally to
become more profitable while reduc-
ing environmental impact.
DeLaval also presented its quotation
tool for sales staff to evaluate the
energy footprint of the system farmers
are planning to use. Today, Sustainable
Dairy Farming is incorporated into all
research and development to help
farmers towards a farming which is
both sustainable and profitable.
Optifeed, a smarter robotic system
In April, DeLaval launched Optifeed
System, the market’s smartest feed-
ing system designed to help dairy
farmers save up to three hours of
labour each day, improve performance
and significantly cut feeding and capi-
tal costs.
Feeding is the largest cost driver on
a dairy farm, representing up to 50 per
cent of running costs. With accurate
filling, mixing and distribution, the
Tetra Laval_ALLA_2009_2010.indd 75
PEOPLE | Corporate presentation 2009/2010
latest DeLaval’s robotic feeder maxi- Disease control and prevention are
mizes returns and helps to improve major challenges in the dairy industry.
the farmer’s lifestyle. The Optifeed A farm disease outbreak poses a serious
System is designed to be combined health threat, as well as a financial
with existing on-farm equipment such risk for the individual farmer.
as silos, mixers and buffer tables. The new facility answers to the new
Current Good Manufacturing Practice
Swinging Cow Brush increases regulations. The facility will supply
profitability dairy farmers in Europe, Africa, Middle
A study by Cornell University shows East and Asia with vital veterinary
that dairy cows using the DeLaval medicinal products, targeted mainly
Swinging Cow Brush (SCB) register at preventing mastitis and lameness
higher milk production and fewer in cows.
clinical mastitis cases.
The study was presented in August Mega VMS operations inaugurated
2009 and concluded that second in 2010
lactation cows using the SCB showed The inauguration of two mega VMS
a significant increase in daily milk operations marked this year another
production, of up to 1 kg per day.
Installation of the SCB resulted in an
immediate increase in cow grooming
behavior. A second major finding was
a significant drop in clinical mastitis
cases, over 30 per cent, among second
and older lactation cows.
GMP facility opened in Drongen
A GMP facility that supports farmers in
accessing safe and efficient Biosecu-
rity and Animal Health related products
has opened in Drongen, Belgium.
75
2010-05-04 11.32
 Corporate presentation 2009/2010
milestone for the DeLaval voluntary
milking system VMS. The Mason Dixon
farm located in Gettysburg, Pennsyl-
vania (USA) has become the largest in
the world with twenty VMS and 1,100
cows. The Belshina-Agro operation in
Belarus with twelve VMS and approxi-
mately one thousand cows is currently
the largest VMS operation in Europe.
Modern dairy farming is defined by
scale and efficiency. With the VMS
technology dairy farmers find a new
balance between a more profitable
business and an enhanced lifestyle,
while getting more time on their hands
to focus on herd management. VMS is
capable of harvesting 2,000 to 2,500 kg
of milk per day. It is one of the most
energy efficient automatic systems in
the world as it uses between 15 and
25 kWh per ton of milk. In short, VMS
makes dairy production more profitable,
sustainable, predictable and easier to
manage.
DeLaval shares its Smart Farming™
vision at world dairy forums
During the beginning of 2010 DeLaval
presented the vision of Smart Farming™
at conferences in Tulare, California,
Tetra Laval_ALLA_2009_2010.indd 76
New South Wales, Australia and
Toronto, Canada. The goal is to
achieve a shift in focus from milking
management to global farm profita-
bility management. DeLaval has a
number of innovative and automated
solutions to accomplish it. For DeLaval
Smart Farming™ it is not only about
robots; it is about empowering today’s
farmers with the decision tools and
automation technologies that seam-
lessly integrate products, services and
knowledge for better quality milk, herd
management, productivity and profit.
The link between Smart Farming™
and sustainability is also strong. By
providing smart technology to increase
resource efficiency and supporting
dairy farmers to do more with less a
big step towards Sustainable Dairy
Farming is taken.
Herd Navigator awarded the Golden
Hoof at the biannual Brussels Inter-
national Agricultural Fair
Since its launch in 2008, DeLaval
Herd Navigator has collected several
awards, among them the Gold Trophy
at the SIA in Paris and the three star
New Product Europe award at
76
Agromek in Denmark.
The DeLaval Herd Navigator is a
result of unique research developed
by Lattec, in joint venture between
DeLaval International and FOSS. It is
a decision making tool that supports
dairy farmers in managing their herds,
improving cow health, reproduction
efficiency, and feed control while re-
ducing operational costs. The system
warns about diseases and other devi-
ations before they actually affect the
animal, so the farmer can act upon
them. The Herd Navigator is a corner-
stone of DeLaval’s Smart Farming™
vision with the aim to unlock further
integrated automation possibilities for
the dairy industry.
DeLaval’s voluntary milking system
VMS 2010 proclaimed “Machine of
the Year” at trade fair
The latest release of the DeLaval
voluntary milking system, the VMS
2010, was awarded “Agricultural
Machine of the Year 2010” at the
Polish agricultural trade fair Agrotech
in March 2010.
Up to date the DeLaval VMS has
changed the life of more than 6,000
2010-05-04 11.32

Environmental and Social Report
dairy farmers and DeLaval continues
to make improvements with each new
model, always with cost efficiency in
mind. The VMS 2010 is more robust
and serviceability has increased. User
friendliness is key and the new model
features a new touch screen and a
new operating system that further adds
to the system’s speed and control.
The option of a steam backflush unit
that uses steam to disinfect the VMS
between each milking is another
exciting new feature this year.
DeLaval produces its first Environ-
mental and Social Report
In December 2009, the first Environ-
mental and Social Report was pub-
lished for internal use at DeLaval.
This non-financial report is part of
the Sustainable Dairy Farming initia-
tive, where the purpose is to improve
Tetra Laval_ALLA_2009_2010.indd 77
Corporate presentation 2009/2010
Agrotech
the footprint of both dairy farms and
DeLaval’s own supply chain.
Starting from how sustainability has
been integrated into company strategy,
the report moves on to environmental
and social aspects of DeLaval opera-
tions, supported by baseline data
to track performance. Examples of
challenges and opportunities include
how DeLaval listens to customers,
employees and other stakeholder
groups, and acts on that feedback,
how energy and water efficiency in
manufacturing are being improved,
and how waste volumes are being
reduced.
77
2010-05-04 11.32
 PRODUCTS | Corporate presentation 2009/2010
DeLaval’s two-front
war with disease
DeLaval’s launch of an advanced bio-
security programme focusing on pre-
vention rather than reaction has taken
animal health to a new level. Dealing
with diseases also means treating
them, a new area for DeLaval. To meet
the most stringent Good Manufacturing
Practice guidelines for medicinal teat
dip products DeLaval has invested in
the most advanced pharmaceutical
factory the dairy industry has ever
seen for udder health purposes.
Biosecurity is concerned with raising
awareness about the ways disease
can spread and taking practical
measures to minimize the risk of re-
occurrence and spread. Many diseases
come from outside the farm; rodents
and insects are obvious carriers.
Similarly new dairy animals being add-
ed to the herd and visitors to the farm
such as veterinarians, sales reps, and
cattle buyers can also bring disease
with them.
“What we are trying to achieve is to
prevent disease from entering the farm
at all. A clean farm environment is a
key factor to success and we have
products for disinfection to prevent
Tetra Laval_ALLA_2009_2010.indd 78
bacteria and viruses from spreading,”
says Olivier Martin-Schmets, Director
for the Milk Quality & Animal Health
Portfolio.
A triple approach to protection
DeLaval takes a triple approach to
protection by looking at hard surface
cleaning products, rodenticides and
insecticides. Hard surface cleaning
products prevent bacteria and viruses
from developing. Disinfecting the stable
prevents bacteria and viruses from
becoming endemic and from circulat-
ing within the barn. Rodenticides kill
mice, rats and other disease-carrying
animals that might enter the stables.
The biosecurity programme also in-
cludes a very effective fly control
programme with insecticides that not
only kill the adult flies but also makes
sure the larvae never mature. The
products are easy to use and can be
applied by dry scattering, spraying or
watering.
“Fly control and rodent control are
important parts of keeping a good
environment for milk production. Flies
and rats are unpleasant for both the
78
herd and for the farmer and the distress
caused by them significantly lowers
productivity. Since they also spread
disease the treatment of sick animals
adds to production costs. With our
products dairy farmers can both increase
productivity and cut disease related
costs,” Olivier Martin-Schmets says.
An increased need for biosecurity
in dairy farming
In recent years the awareness of human
diseases originating from animals has
grown and the climate change has
also been a catalyst for placing bio-
security high on the political agenda,
not only because of the human risks but
also due to the financial impact. The
cost of diseases such as blue tongue
or foot and mouth amounts to billions.
“Biosecurity has been an issue for
other farmers for quite some time but
it is now becoming increasingly im-
portant for dairy farmers. The increase
in size from small farms with herds of
twenty cows up to dairy farms with
hundreds of cows means they are
becoming more like a swine operation
with high infection pressure due to
2010-05-04 11.32

the number of animals present in a re-
stricted area. If they get blue tongue or
foot and mouth disease it could be
devastating. Thus, the need to protect
the herd from disease has increased,”
says Olivier Martin-Schmets.
DeLaval takes it to a new level with
investment in good manufacturing
practice
With a multimillion euro investment in
a new GMP-facility, DeLaval has really
stepped up its game. Technically,
Good Manufacturing Practice (GMP)
means a clean room production environ-
ment. For this, one needs total control
of the internal air and the water supply.
The new facility has an air pressure
system to move the air and interlocking
doors. The quality of water is critical
in this kind of environment and there
are five steps to make purified water
from tap water. All procedures are
validated to ensure nothing goes
wrong in the production process.
“The new facility is the most ad-
vanced pharmaceutical factory of its
kind in the dairy industry and it means
we can use technologies that were
Tetra Laval_ALLA_2009_2010.indd 79
PRODUCTS | Corporate presentation 2009/2010
unattainable with the old GMP-plant. not only products but also knowledge
This will enable manufacturing in a about how to apply the products to the
more efficient manner. DeLaval aims dairy farms. That is why we have
at providing its customers with the best decided to stay in the game and to
quality products at the best price,” become a major player in biosecurity
emphasizes Olivier Martin-Schmets. and animal health for the dairy industry,”
concludes Olivier Martin-Schmets.
Adding dairy farming experience
to the pharmaceutical industry
The need for increased investments
comes from a more regulated market.
Fly control products and rodenticides
are under strict regulation and all of
DeLaval’s products are moving towards
animal health and therefore more
considered medicinal products. Many
of them are already treated as veteri-
nary drugs and thus DeLaval has to
meet new standards.
“With the new manufacturing environ-
ment DeLaval has the ability to take
the next step. Entering the pharma-
ceutical industry brings fresh challenges
and fierce competition, but we can
also source products from others who
might have knowledge unknown to us
– the products themselves are not often
unique. What is unique is DeLaval’s
knowledge of dairy farming. We bring
79
2010-05-04 11.32
 PRODUCTS | Corporate presentation 2009/2010
DeLaval’s long
term vision for
Biosecurity &
Animal Health
Biosecurity and animal health are im-
portant strategic development areas
for the future. The goal is a combina-
tion of in-house research and develop-
ment, licensing and joint ventures with
initial focus on generics.
DeLaval has developed a considera-
ble aftermarket product line which forms
an important part of total revenue.
Animal health products and consuma-
bles in farm hygiene and milk quality
areas contribute a substantial part of
that revenue. Biosecurity products have
recently been added to the offering.
“DeLaval is really forward-looking in
this area. One alternative would have
been to outsource these products be-
cause they are expensive to maintain
for compliance with different legisla-
tions around the world but we chose
to continue our investments and become
a major player in this field,” says Tim
Nicolaї, Vice President Business Area
Aftermarket & Services.
The challenge of a regulated
business
Animal health businesses are mostly
part of the big global pharmaceutical
companies. Their R&D resources sur-
pass that of DeLaval’s by great numbers.
“The complete development process
can take 5 years. Before medicinal
Tetra Laval_ALLA_2009_2010.indd 80
products can be commercialized they
undergo a host of clinical studies and
70 to 80 per cent of all projects fail the
tests. Obviously those that make it to
the end of the pipeline must be profit-
able enough to cover the losses from
the failed ones,” says Tim Nicolaї.
When a product is registered as a
veterinary product in the EU and other
parts of the world, it can only be sold
on prescription by a veterinarian or
through a wholesale pharmaceutical
company.
“In several countries we need to be
registered as a pharmaceutical whole-
sale company in order to be able to sell
these products. To meet the criteria
means a demand for much more
administrative capabilities. If a product
fails and/or shows adverse reactions
on animals we must guarantee full
traceability to enable a recall of the
whole batch,” says Tim Nicolaї.
New strategies for new possibilities
Legislation differs between continents
but there is hope for consistency in the
law within the EU. It is anticipated that
biocides will be regulated in a similar way
as pharmaceutical products in the near
future. This development opens up
important opportunities. The smaller
players cannot continue to support
80
their products due to the cost of
maintaining regulatory standards –
but DeLaval can.
“Today, we produce 95 per cent of
what we sell. Our R&D and regulatory
departments are in-house and fully
integrated which is a competitive ad-
vantage built up over the years. But we
want to expand our animal health offer-
ing globally and we do not suffer from
the ‘not invented here’ syndrome. We
are looking into channeling generics and
licensing other companies’ products, as
well as their technology. Joint ventures
and acquisitions are also on the agenda.
Our strategy is a combination of
in-house R&D, licensing, joint ven-
tures, acquisitions and initial focus
on generics,” says Tim Nicolaї.
When regulations around the globe
are becoming more restrictive it limits
what can be brought to the market
and it also increases the need for
careful documentation.
“Our new GMP-facility in Belgium is
part of our expansion programme.
With our superior distribution we will
not only adhere to the dairy industry
but also distribute to other species.
Our products can be applied to many
more areas, and now we have the re-
sources to support them,” finishes
Tim Nicolaї.
2010-05-04 11.32

DeLaval supports
the improvement
of raw milk quality
in China
In 2009, the main focus for DeLaval in
China was to get the message of sus-
tainable farming out to the Chinese
market. Food quality and the dairy
industry are pressing issues for the
Chinese government, which is eager
to see an improvement in standards.
Recently, China has made a substan-
tial financial contribution in support of
modernising the dairy industry by
providing funds and grants. DeLaval
has held meetings with officials to
supply information on ISO standards
for milking and cooling.
“We are providing supporting infor-
mation on how to invest and get a
good return on investment. They are
listening to us knowing that we have
global expertise,” says Michael Hughes,
President of DeLaval East Asia.
Another important step was the
launch of extensive training pro-
Tetra Laval_ALLA_2009_2010.indd 81
PARTNERSHIP | Corporate presentation 2009/2010
grammes at the Sino-Swedish Dairy
Centre. The centre is an inter-govern-
mental cooperation between China
and Sweden and will further promote
the sustainable growth of the dairy
industry by improving China’s raw
milk production. Founded in 1984,
the Sino-Swedish Dairy Centre is the
first organisation in China dedicated
to training and product development
within the dairy industry.
“The fact that we have been commit-
ted to China since 1984 gives DeLaval
strong credibility. It proves our genuine
interest in our Chinese counterparts,”
says Michael Hughes.
More than four thousand farmers,
Village Milking Centre (VMC) managers,
and raw milk quality inspectors have
taken part in the wide range of milk
quality training programmes on offer.
The focus on training and modernising
81
the Chinese dairy industry had an
enormous impact on sales last year.
DeLaval is now an approved supplier.
This entitles our customers to 30 per
cent national funding and 20 per cent
local funding on capital investments
in milking equipment, which means
up to 50 per cent of their investments
are subsidised.
“Orders are increasing by 50 per
cent and hygiene product orders have
increased by 75 per cent over the
past year. This, at a time when the
global dairy industry is down by 20
per cent,” Michael Hughes concludes.
2010-05-04 11.33
 PARTNERSHIP | Corporate presentation 2009/2010
DeLaval goes the
extra mile to give
customers peace
of mind
The launch of InService™ last year
achieved global status and has been
widely appreciated by customers and
people working with service. With
InService™ many customers have
started to see the benefits of prevent-
ative maintenance instead of waiting
for emergency service. Herd health is
improved and the milking plants per-
form at optimum levels. InService™
has given customers peace of mind
and reduced stress levels for service
technicians and the cows. DeLaval
InService™ is here to stay.
Distance is a major challenge in
Australia. Gary Lindsay, National
Service Manager, is located in Brisbane,
1,700 km south of the northernmost
service technician and 4,000 km east
of the westernmost. Individual tech-
nicians often cover large distances so
advanced scheduling is critical to save
time and money for everyone involved.
“Modern farmers need to plan ahead;
they want the kind of preventative
service offered with the InService™
concept. With InService™, the farm-
ers see clear improvements such as
less emergency service, increased
productivity and better udder health.
We have a number of farmers who are
Tetra Laval_ALLA_2009_2010.indd 82
now on their third service agreement.
InService™ gives them the peace of
mind that comes with the knowledge
that their equipment is well maintained,”
says Gary Lindsay.
Flexibility to meet the requirements
of the local market
The InService™ concept is based on
an understanding of how globalisation
creates demand for a standardised
service whilst at the same time recog-
nising the varying needs of farmers in
different parts of the world.
“We have really managed to get the
message out there both internally and
externally. Our dealers and customers
have seen an improvement and they
have a very positive image of DeLaval’s
new approach to service. Our service
is about being there to meet customer
expectations,” says Peter Jidesjö, Port-
folio Director Services & Original Parts.
In Australia, the launch of InService™
could not have been better timed.
The dairy industry is changing. Since
2000 the number of dairy farms in
some parts of the country has almost
halved. In contrast the number of cows
has remained more or less the same.
82
With bigger herds, the size and com-
plexity of dairy farms and milking
systems has increased with more
installations needing scheduled service.
Distances from the home office can be
vast, and the technicians can be a long
way from the stock of service spares.
“Not only are the distances huge,
but we also have a wide variety of
farming systems. In some areas the
milking is done 365 days a year and
in others it is seasonal. We have many
grassland based farming systems and
many intensive operations. We have
small swingover plants, large rotaries
and now numerous Voluntary Milking
Systems (VMS). InService™ helps us to
cope with a variety of farming systems
because of its flexibility to meet indi-
vidual farm and farmer requirements,”
says Gary Lindsay.
A toolbox for service
The InService™ concept turns an in-
tangible phenomenon into a product
farmers can understand and service
technicians can sell. The branded
vehicles are recognised everywhere
and many dealerships have asked to
join the programme. Dealers have to
2010-05-04 11.33

meet strict criteria before they can
become part of the InService™
dealership team.
The concept is appreciated by the
entire sales organisation. One of the
reasons for this is that colleagues
from all over the world have been part
of the development process.
“Our service technicians are doing
an outstanding job, often working with
customers in tough conditions. When
developing InService™ we took on board
what works in practice. InService™
gives the technicians the tools to
support their service delivery,” says
Peter Jidesjö.
Establishing long term partnerships
between DeLaval and the customer
InService™ is more than just delivering
a service; it is a partnership between
DeLaval and the customer. Before
InService™ there were few service
technicians who focused solely on
providing service. Their time has tradi-
tionally been divided between installa-
tions, servicing and giving workshops.
InService™ provides the opportunity
for technicians to focus solely on selling
service agreements and delivering
Tetra Laval_ALLA_2009_2010.indd 83
PARTNERSHIP | Corporate presentation 2009/2010
those agreed services. The result is
an improved service delivery for
customers and a better work situation
for technicians.
“We have tried to keep the process
simple and efficient. It starts with a
formal meeting with the farmer where
the service technician explains how
the service agreement works. The
technician then records all the details
of the equipment on the farm and
prepares a service quotation. Together
they plan a service schedule and
agree the parts required for the next
twelve months. It’s a great thing for
the service technicians and the farmer
to be able to do this twelve months in
advance instead of having to do it
during service call outs and break-
down visits on an ad hoc basis,” says
Gary Lindsay enthusiastically.
Dwayne Neal and his family run
Laureldene Farms in Boyanup, Western
Australia, where they milk about 210
cows in a 20 unit plant with Alpro™
herd management, feeding and Auto-
matic Cluster Removals. Dwayne is
one of many farmers who have seen
the benefits of InService™ and he is
now on his third Service Agreement.
83
“It takes a lot of the worry out of man-
aging the farm. We don’t have to re-
member to order chemicals or parts;
our technician just arrives and does
our servicing when it’s due. We know
that the plant will be serviced and liners
changed at the right time. It also helps
us to manage cash flow, because we
know when to expect the maintenance
charges. As a result the plant works
very well. We will definitely be renewing
our service agreement again when it
is due,” says Dwayne.
Service has always been a major
strength of DeLaval’s. With InService™,
DeLaval has taken the concept to the
next level.
“InService™ is not just a campaign
but an integral part of DeLaval. To stay
ahead of our competitors and continue
to be a successful company we must
deliver an outstanding service.
InService™ is a commitment to
DeLaval’s customers which goes that
extra mile,” concludes Peter Jidesjö.
2010-05-04 11.33
 INNOVATION | Corporate presentation 2009/2010
DeLaval accelerates
the development of
Smart Farming™
DeLaval is taking major steps this
year to become a one-stop supplier
able to deliver fully integrated and
automated systems at farm level in
accordance with its strategic concept.
The concept, Smart Farming™, is
aimed at influencing and shaping the
future of dairy farming today. The goal
is to accelerate the transition from
stand-alone milking management to
global farm profitability management.
DeLaval has achieved this by harnessing
emerging decision tools and automa-
tion technologies for better quality
milk and increased profits.
“The dairy industry is experiencing a
significant technology shift. As a market
leader we have the skills and the
resources to not only react to the
challenges that milk producers are
facing but also to provide leadership.
Our ambition is to be proactive and
shape the future of the dairy industry,”
says Andrew Turner, Vice President
Business Area Capital Goods.
DeLaval is shifting focus towards
more than just the milking side of
dairy farming. This means supplying
products, services and knowledge
to support the complete range of
farm operations. DeLaval is working
Tetra Laval_ALLA_2009_2010.indd 84
towards integrating milking, feeding
and barn environment to provide milk
producers with the right tools to run
their farms more profitably. Through its
Global Customer Project Support Group,
DeLaval reaches out to customers
around the world with the knowledge
and skills that allow the delivery of the
Smart Farming hardware.
“We are already more than just a
supplier of milking solutions, our goal
is to be the company that takes a
holistic approach: we supply integrated
smart solutions at farm level. DeLaval
has a rapidly growing range of innova-
tive and automated solutions geared
to boost dairy business efficiency,”
says Fernando Mazeris, Portfolio
Director Dairy Management & Nutrition.
DeLaval’s solutions do not just
produce a mass of data leaving inter-
pretation and decision making up to
the farmer. DeLaval has enhanced
decision making tools, its built-in
intelligence systems present straight-
forward action suggestions to the
farmer. One such tool is the Herd
Navigator, launched in 2008. This is
a pro-active management system that
allows full control of the herd’s repro-
duction, lifting heat detection by up to
84
98 per cent as well as providing precise
insemination time. It manages early
detection of significant health problems
such as mastitis and ketosis thereby
improving productivity, profitability,
animal welfare and food safety. By
automatically taking daily samples of
milk Herd Navigator informs, alerts and
advises the dairy farmer of the condi-
tion and health of each individual cow.
“The key is to continuously work on
developing solutions so the same
products can be integrated into different
systems. Currently, we are integrating
Herd Navigator with the DeLaval
Voluntary Milking System (VMS)
which takes us one step closer to our
vision of total integration at farm level.
It is a huge step towards making
Smart Farming™ a reality. There are
other examples such as connecting
the automatic feeding system, Optifeed,
to milking management systems such
as Delpro,” says Fernando Mazeris.
Key factors driving the development
Commercial factors are important
drivers of the transition from milking
management to farm profitability.
Customers need to be responsive to
the very volatile price of milk in the
2010-05-04 11.33

market which means a need to manage
their costs and productivity much
more actively.
“Globally, our customers face an
economic reality that is already being
defined by scale and efficiency. As
well as the commercial aspects there
are the influences on our customers’
value chain from consumers with
strong environmental concerns. Political
and economic decisions by either EU
or WTO also have an impact. In short,
our customers need our help to deliver
a better and smarter production environ-
ment. We must develop and provide
them with the tools to achieve just
that,” says Andrew Turner.
Dairy farming has long since ceased
to be just a way of life. Farmers are more
professional than ever and they have
to manage a very complex operation.
The trend is for herd sizes to increase
in many parts of the world together
Tetra Laval_ALLA_2009_2010.indd 85
INNOVATION | Corporate presentation 2009/2010
with greater productivity per cow. It all
creates a farm environment where the
farmer needs to manage high yielding
animals and the best use of resources.
He needs to take appropriate key
actions on a daily basis.
“Dealing with animals – milking,
feeding and handling of manure plus
always considering animal welfare is
not simple. At the same time there is a
shortage of labour since fewer people
want to work at dairy farms. In this
complex environment milk producers
need smart tools to be able to run their
operations efficiently. For this to work
properly it is important that the tools
really help and do not make it more
complex. Our systems allow smooth
management of bigger herds with less
labour,” says Fernando Mazeris.
85
A shift in technology but some
things remain the same
Compared to other types of farming,
dairy is far less developed. Dairy
farming is at the beginning of this
process and it is also more complex.
As dairy farmers know, milking is a
very complicated procedure because
by comparison the cow is a pretty
large animal. This makes for a huge
difference in engineering. Still, the dairy
world can expect a few changes.
“On the processing side there has
been a move towards cleaner produc-
tion and higher expectations from
consumers. A significant increase in
automation will result in smaller work-
force. The shift to new technology
based on infrared cameras, diagnostic
tools and algorithms is also key.
Customers’ needs will however remain
the same. Developed and developing
countries will continue to have different
2010-05-04 11.34
 INNOVATION | Corporate presentation 2009/2010
requirements,” says Andrew Turner.
Advances in technology include the
automation of milking such as the
DeLaval Voluntary Milking System (VMS).
Thanks to the DeLaval Optifeeding
system a major leap in robotic feeding
has also taken place. The system loads,
cuts, mixes and distributes feed auto-
matically, day and night, saving dairy
farmers up to 3 hours labour per day.
Optifeeding also allows farmers to
ensure the correct food balance for
each cow, or group of cows, according
to their stage in the lactation cycle.
The result is improved performance
and significant cuts in feeding and
capital costs. As far as Smart Barn
Environment goes, the possibilities are
endless, from automated ventilation
that responds to weather and climate
to automatic illumination control and
manure handling.
“There is also a soft part. Sensors,
data collection and aided decision tools
for efficient herd management, com-
bined with the automation, create two
layers for the Smart Barn Environment
– labour and management. This is
probably just the beginning of a
tremendous development. Sensor-
technology is developing at huge
Tetra Laval_ALLA_2009_2010.indd 86
speed and spin-offs from other indus- world. Customer need is paramount
tries can be applied. This will grow fast to success. It is about quality of delivery,
and nothing is impossible. Early feed- pace and, most importantly, after
back from our Herd Navigator users sales support. We also need to take
has been encouraging. They cannot responsibility and get involved in the
imagine going back to their old ways. global debates affecting our industry
It would be like living without the so that we can influence outcomes.
Internet,” says Fernando Mazeris Our aim is to lead and drive the
enthusiastically. development towards sustainable
dairy farming. Put it all together and
Success factors we are in a very good place to deliver
DeLaval has a long tradition of being and achieve our goals,” concludes
the dairy industry market leader and Andrew Turner.
our customers expect this to continue.
The company’s global position and
strong relationships with many R&D
institutes also allows insight into new
trends and developments. DeLaval
has a strong foundation to build on.
But this also provides challenges.
Going into areas where DeLaval’s
knowledge is peripheral, such as
veterinary diagnostics, requires strategic
initiatives to increase internal expertise
and enable the company to work with
new partners. These trends are global
and competitors are following the
same route.
“Our edge comes from the ability to
deliver on a broad scale to different
types of dairy farmers around the
86
2010-05-04 11.34

Sustainable Dairy
Farming around
the world
When DeLaval launched the Sustain-
able Dairy Farming (SDF) initiative in
2008 it was based on increased
awareness of environmental challenges.
The aim is to reduce the environmental
footprint of farms, while improving
milk production, farm profitability and
the well-being of the employees and
animals. DeLaval believes this can be
achieved by supporting customers
with technology and services that can
increase resource efficiency. Or, put
another way, by helping farmers to do
more with less.
According to Mark Blake, Manager
CSR Reporting, DeLaval has laid the
foundation for the integration of SDF
into all company operations.
“We are close to a point where Sus-
tainable Dairy Farming is part of the
way we think. Environmental impacts
are being considered alongside social,
animal welfare and financial ones in
solution development. And since
Tetra Laval_ALLA_2009_2010.indd 87
SUSTAINABILITY | Corporate presentation 2009/2010
sustainability is about continuous im-
provement on all types of farms, we
already have many solutions that can
contribute positively,” says Mark Blake.
Maintaining profitability while
meeting environmental standards
In Brazil, farmers manage environ-
mental and production challenges.
“Today, our production meets high
environmental standards and in recent
years we have invested time and finan-
cial resources to make this happen.
We are aware of the need to use renew-
able natural resources and at the same
time improve our own competitiveness.
For me, Sustainable Dairy Farming
means producing the maximum milk
yield while using the least possible
resources,” says Mauricio Silveira
Coelho, Santa Luzia farm, Passos, Brazil.
Sustainable Dairy Farming is a busi-
ness development area for DeLaval,
since a more sustainable farm should
87
be more profitable. For customers, it
is also important how DeLaval acts and
what the brand stands for. In order to
walk the talk, a project was started to
measure and track the environmental
and social impact of the company’s
own operations.
“Sustainability is all about how we
use resources, whether environmental,
social or economic, and this is how
we are looking at our own supply
chain. Due to the nature of our industry,
livestock resources/animal welfare
need to be considered in the same
way on farm. Using natural resources
to produce food is vitally important, but
it is also important how we do so. At
DeLaval, we have our own scientific
committee to dig deeper into what is
known in the scientific community, and
we are also supporting industry and
customer forums, such as the IDF
World Dairy Summit, to discuss and
find new solutions,” says Mark Blake.
2010-05-04 11.34
 SUSTAINABILITY | Corporate presentation 2009/2010
Energy, water and feed – the initial
drivers for Sustainable Dairy Farming
To support customers in their drive for
sustainability, an important step is to
see the farm as a system. Reducing
the environmental footprint often starts
with energy, water and feed – factors
that are also significant cost drivers.
DeLaval has a range of solutions to
support efficiency gains in these areas.
“Energy, water and feed are of great
importance on our farm and they are
all linked together. Using DeLaval heat
recovery saves a lot of energy. Re-using
warm water as drinking water increases
the cows’ fluid intake resulting in a
significantly higher feed intake and
higher milk yield. In 2009 the demand for
Tetra Laval_ALLA_2009_2010.indd 88
these solutions exceeded our expecta-
tions and since we want to continue
working with Sustainable Dairy Farm-
ing we are now looking at other solu-
tions such as vacuum pumps,” says
Masaru Wada, Wada farm, Tochigi,
Japan.
Energy is also a big issue at the
Bossgården organic farm in Falköping,
Sweden run by Lars-Olof Josefsson.
“Working according to organic
standards suits our farm well because
the land we have does not need artifi-
cial fertilizers, an issue of concern for
consumers. We are now focusing on
saving electricity and reducing heat
loss. We currently use a number of De-
Laval SDF solutions that contribute to
saving both time and energy. Using
VMS also frees up time for other
projects. With a DeLaval vacuum
pump and heat recovery system we
save energy and are also able to use
the excess heat to warm up the
house. We are very pleased with the
equipment and in the future we would
like to become more energy indepen-
dent, combining solar energy, heat
recovery and biofuel,” says Lars-Olof
Josefsson.
88
DeLaval’s customers are the
inspiration for new solutions
For Mauricio Silveira Coelho in Brazil,
DeLaval has always been a company
willing to invest in the research and
development of new products. More
recently, he has also noticed a greater
concern for reducing the environmental
impact of milk production. He believes
more can be done to bring benefits to
both dairy farmers and to the environ-
ment. His farm uses the plate cooler
and the heat recovery combined with
the cooling tank compressor. This has
boosted profitability through reduced
power consumption and greater effi-
ciency in the cleaning process.
Expenses for detergents have also
decreased, but he wants more.
“In relation to sustainability, I think
it is necessary to develop appropriate
solutions for the treatment and proper
use of manure generated by cattle,
which for us would increase soil fertility.
Another desired line of research would
be to develop products that optimize
the rumen environment, by reducing
energy losses and emissions from the
greenhouse gas, methane,” says
Mauricio Silveira Coelho.
2010-05-04 11.35
 SUSTAINABILITY | Corporate presentation 2009/2010

Customer demand for more sustaina- increase, this number is expected to rise.
ble solutions will continue to guide “Long-term, resource efficiency and
product and service development. Sus- the ethical aspects of what we do are
tainability is not something that can likely to become more important,
be achieved through one solution, but whether supporting farms in Japan,
through planning and improvement in Sweden or Brazil. Working out how to
all areas. continuously improve is of course a
“I think even more will be achieved challenge for us all – but it is a chal-
in the future. Three years ago I suggested lenge that both we and many of our
the idea of harnessing the heat customers have happily accepted,”
generated by vacuum pumps to heat finishes Mark Blake.
up water for cleaning processes,
resulting in greater efficiency and
economy for the whole farm. DeLaval
took it one step further by using the
heat produced by the cooling tank
compressors. It makes me wonder
how much more can be developed,”
says Mauricio Silveira Coelho.

Balancing different demands

Being a global player means identifying
common challenges and applying
solutions to a local context.
When DeLaval asked customers how
they rank different environmental
challenges, more than one in five stated
that water and energy will strongly
impact their business over the next
three years. As resource pressures

89

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TEL +46 8 530 660 00
FAX +46 8 530 689 00
WWW.DELAVAL.COM

SIDEL GROUP
AVENUE DE LA PATROUILLE DE FRANCE
OCTEVILLE SUR MER
BP 204
F-76053 LE HAVRE CEDEX, FRANCE
TEL +33 2 32 85 86 87
FAX +33 2 32 85 81 00
WWW.SIDEL.COM

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 TETRA LAVAL

TETRA LAVAL INTERNATIONAL S.A.

CASE POSTALE 430
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 22 11
FAX +41 21 729 22 88
WWW.TETRALAVAL.COM

TETRA PAK INTERNATIONAL S.A.

CASE POSTALE 446
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 21 11
FAX +41 21 729 22 44
WWW.TETRAPAK.COM

DELAVAL INTERNATIONAL AB
P.O. BOX 39
GUSTAF DE LAVALS VÄG 15
SE-147 21 TUMBA, SWEDEN
TEL +46 8 530 660 00
FAX +46 8 530 689 00
WWW.DELAVAL.COM

SIDEL GROUP
AVENUE DE LA PATROUILLE DE FRANCE
OCTEVILLE SUR MER
BP 204
F-76053 LE HAVRE CEDEX, FRANCE
TEL +33 2 32 85 86 87
FAX +33 2 32 85 81 00
WWW.SIDEL.COM
BYSTED / GRAYLING / Malmoe, Sweden
Date 2010-04

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