1. Nourishing Ideas
Nourishing People

2. Cargill at a Glance Cargill Founded 1865 Grain warehouse in Iowa
Core Capabilities Developed
Risk Mgmt
Supply Chain Mgmt
Global Mgmt
Core Value Established
Trustworthy
Creative
Enterprising
TODAY
$59 Billion+ in Gross Sales
Over $1 Billion in Net Earnings
Net Worth >$9 Billion
97,000 Employees in 1000 Locations
Core Behaviors
Customer Focused
Innovative
High Performing
Integrated Food Products and Food Service Company

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

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

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

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

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

8. Year Four of a 10-Year Plan
Strategic Action
“By 2010, Cargill will be the recognized global leader in providing our agricultural and food customers with solutions that enable them to succeed in their businesses.”
-Warren Staley memo, February, 1999
For the past few years, and this is the topic of today’s discussion, Cargill has undergone a strategic transformation that is playing itself out as I speak. We are in year three of a 10 year plan that is known as Strategic Action. It was birthed as Strategic Intent and converted to Strategic Action earlier this year to give it more ooomph.
It coincides too, with the introduction of a new brand identity, the first new logo for the company in 36 years.

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

10. Corporate Business Unit Focus Employee Focus Collective
We’re a diverse company in many corners of the world, but we’re united by our vision.
That’s to be the global leader in nourishing people.
Our mission is to create distinctive value.
Our approach is to be trustworthy, creative and enterprising. Our performance measures are: Engaged employees Satisfied customers Enriched communities Profitable growth
Collective

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

12. Innovative Solutions Women’s and Men’s Bread with AdvantaSoyTM
Energize Sport Drink with Trehalose
Performance Breakfast
(NOTE: Builder slide…. Need to advance for each point after grain in your cereal and oranges in your juice)
Cargill is working to provide distinctive value to our customers. Our Health & Food Technologies group develops and markets science-based, health-promoting ingredients for food and dietary supplements industries worldwide.
Men’s and Women’s bread - We have teamed up with French Meadows Bakery to supply the soy isoflavones they are using in their Men’s and Women’s Bread.
Sport drinks - Our H&FT group has developed Trehalose, a unique sugar that helps the body to absorb calcium which we are using in our energizing sport drink.
Soy Protein - Our Soy Protein Solutions group has developed a high-performance breakfast beverage that incorporates six different ingredients produced by Cargill, and energy bars that contain 13 grams of protein per serving.
NUT-NOTS - In response to the rising cost of macadamia nuts, Cargill's Wilbur Chocolate business has introduced NUT-NOTS(TM) Macadamia Nut Extenders. Formulated to harden to a nut-like texture when baked, the oil-based extenders are flavored to closely imitate the real thing.
Soy Signature Bar
NUT-NOTSTM

13. Outback Steakhouse
Restaurants and food retailers virtually anywhere in the world look to Cargill not only for the highest quality product, but also for the most innovative solutions in sourcing, reducing risk, designing and marketing food.
Cargill is an integral partner to Outback Steakhouse known for its steaks, attentive service or famous “Bloomin’ Onion®” appetizer.
Cargill’s chefs have worked with Outback to develop a marinade for steaks that will help provide a ‘softer bite’ preferred outside North America. We were also able to provide them with the expertise of working within Asian regulations for imports. Additionally, Cargill’s Fontina Foods is working with them to develop a proprietary spice for mashed potatoes.
When Outback came to us and asked us to supply the steaks for their volunteer effort to serve our troops in Afghanistan, we willingly agreed. Cargill supplied enough steak filets to serve 13,000 American service men and women at two bases.
The event generated an enormous amount of goodwill among the troops who were hungry for some home cooking.

14. A fiber that not only touches your skin but also touches your soul.
The world's first man-made fiber from 100% annually renewable resources.
A fiber that not only touches your skin but also touches your soul.
On the technology side, we’re producing natural plastic from corn. We have a joint venture with Dow Chemical to form Cargill Dow Polymers.
This woman is wearing clothes made from polylactic acid -- PLA -- which was developed by Cargill. It's made from corn. “Natural plastic” is what the newspapers call it.
Initially we were interested in this product’s ability to biodegrade. But a couple of years ago someone from Dow called it "one of the most versatile and exciting new polymer platforms ever seen in the plastics industry.”
Cargill Dow has been recognized for their innovation. They received the 2002 Presidential Green Chemistry Challenge, Alternative Reaction Conditions Award, and were named the 2001 Technology of the year by the US Dept. of Energy.

15. Focus on Our Strategic Accounts
General Mills
Cargill has has formed strategic account management committees for our key customers such as General Mills, Walmart, McDonald’s and Kraft.
We will focus our resources on what will make our strategic customers most successful and deliver innovation and results because our customer’s success IS our business.
Other key customers include:
Applebees
Coca-Cola
Nestle
Outback Steakhouse
PepsiCo
Rich’s

16. Cargill reached a safety milestone
Success Story - Safety
Cargill reached a safety milestone
Another example of traction on our journey is the level of operational excellence we’re achieving in safety.
Working in more than 1,000 locations around the world, Cargill employees achieved a record safety index of 1.7 in fiscal These accomplishments are all the more significant, given the number of people and facilities that came to Cargill from acquisitions in the past two years. It shows the power of a safety mindset: combining a shared belief that all accidents are preventable with the right tools and resources to achieve success.
Cargill’s safety index measures the frequency and severity of work-related injuries based on the number of hours worked. It decreased to a record 1.7 in fiscal 2003.

17. Supply Chain Management The Customer Satisfaction/ Efficiency Paradox
March 2, 2004

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

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

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

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

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

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

24. Vice President Supply Chain Management
Thank you!
Jenny L. Verner
Vice President Supply Chain Management
Cargill
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