1.6.2.1

1.6.2.2

In the past financial year, market conditions in the agricultural sector in Europe were challenging. The dairy market had to deal with a reduction of milk prices compared to 2014 and other agricultural sectors also had a difficult year. Exceptions to this were the layers sector in all countries and the swine sector in the United Kingdom. The good 2015 results of ForFarmers indicate that we are on the right track with the current strategic approach. The company performed well by cooperating with customers, employees, partners and suppliers.

In these difficult times for farmers it is important that ForFarmers supports them in attaining their business objectives in the best way possible - with sound advice and good products at a reasonable price. The One ForFarmers approach was implemented and this way the organisation took a next step towards professionalisation and an unambiguous way of working. The integration of HST Feeds, Wheyfeed and the agricultural activities of Countrywide, acquired in 2014 and 2015, was completed during the year. ForFarmers focused fully on the integration of BOCM PAULS and Hendrix by utilising the advantages of scale, production and transport synergies and the available knowledge in the organisations. This is a big compliment to all employees and the Board of Directors. We see a new dynamic within the organisation and, as the Supervisory Board, we are proud of the steps that were taken by the company in the past year.

Horizon 2020

In the past year further expansion and strengthening of our position as a leading player in the Northern region of Western Europe was regularly discussed with the team of the Board of Directors. Horizon 2020 is the strategic approach for coming years and this was given further substance in 2015. The accent shifted from volume to value- being a partner on farm by maximising the result on farm with the best product and advice. Not just from compound feed – which is traditionally our strength – but from the need for animal nutrition and the corresponding customer requirements. This is what we base our advice and our Total Feed product portfolio on: compound feed, but also minerals, additives, fertilisers and seeds.

The choice to enter into strategic partnerships is paying off. In the past year we continued to develop our partnership with Nutreco and Agrifirm Plant in the Netherlands. This enables us to focus on our key activities and to simultaneously optimise our product portfolio, which is in line with the Total Feed concept. Apart from a broader product range, this also results in cost savings, purchasing benefits and innovations. Our customers have taken advantage of this.

The market position held by ForFarmers comes with a certain responsibility, among other things in the area of sustainability. Therefore, the sustainability strategy was sharpenend in 2015 and will be implemented further in coming years. Sustainability and efficiency go hand-in-hand in our industry. Each and every efficiency improvement, by definition, results in a sustainability improvement and forms an integral part of our business.

Initial public offering

The Annual General Meeting authorised preparations for the transition from the trading platform to the public stock exchange (Euronext). A public stock exchange listing provides for a better balance between supply and demand, and facilitates the tradability of shares. To this end, the necessary preparations were set in motion in 2015. The role of the Cooperative FromFarmers became clearer in prior years and discussions with the Membership Council resulted in good protective measures. As the Supervisory Board, we are of the opinion that the required preparatory steps were taken to enable further growth of ForFarmers and to simultaneously safeguard the future of the Cooperative.

Governance

An initial public listing is associated with obligations, particularly with regard to governance. We have held good, substantive discussions with the Board of Directors and in 2015 further substance was given to the governance structure. This governance leads to more transparency, which we, as the Supervisory Board, endorse. All stakeholders, buyers as well as investors, can benefit from this. It is important to also carefully look after the interests of all stakeholders in the future; be fair to employees, properly serve customers, accurately deal with suppliers, invest for the long term and realise an appropriate return for investors. It is up to us, the Supervisory Board, to safeguard this balance.

Farewell and welcome

On 17 April 2015 Jan Markink said farewell to the Supervisory Board at ForFarmers. Jan had been involved in the legal predecessors of ForFarmers at board level since 1986 and was chairman of the Supervisory Board from 2002 to 2014. During this period the company grew considerably and the Registered Equity process was put in motion. Jan is extremely knowledgeable and has always been a stable influence, especially during turbulent times. We appreciate his contribution highly to the developments of the company in previous years.

Erwin Wunnekink filled the vacancy on the Supervisory Board that was consequently created. Erwin is a dairy farmer and is familiar with the dynamics on farm. In addition, he is also a member of the Supervisory Board at FrieslandCampina N.V.

On behalf of the Supervisory Board I would like to thank the Board of Directors and all employees for their efforts. Our employees contributed to an important extent, through their commitment and good cooperation – mutually and with third parties –, to the achieved result. This, as well as the pride and ambition that we, the Supervisory Board, experience during company visits gives us the confidence that ForFarmers is well positioned to successfully implement the strategy as established in Horizon 2020.

Lochem, 21 maart 2016

Jan Eggink

Chairman Supervisory Board ForFarmers