FONTERRA VENDOR AWARDS FINALISTS CONGRATULATIONS

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2 CONGRATULATIONS both to our finalists and winners of the Vendor Awards this year. We were overwhelmed by the number and the calibre of the entries in every category. All of our finalists and winners showcased the valuable partnerships we have with our vendors, which we hope to see further develop and grow over the next 12 months. The Vendor Awards provide a platform to recognise vendor performance excellence which supports s vision of being the natural source of dairy nutrition for everybody, everywhere, everyday.

3 SUPREME VENDOR AWARD 2013 FONTERRA VENDOR AWARDS THEO SPIERINGS Chief Executive Officer IAN ISEMONGER CHRIS REDFERN ETIENNE DE BEER ERIC KJESTRUP ALTO PACKAGING winners of the Supreme Vendor of the Year 2013 for their work on Project Liberator, collaborating with FBNZ on the Light Proof Bottle. A project that developed the new bottle to completely block any visible light from entering, which was eroding both the nutritional qualities and the taste of the milk. ABOVE > ERIC KJESTRUP

4 SAFETY AWARD Best safety initiative which enhances health and safety performance at. WINNER OF BEST SAFETY INITIATIVE WHICH ENHANCES HEALTH AND SAFETY PERFORMANCE AT FONTERRA. NICOLE ROSIE Director Health & Safety PAUL EDEN HCB Technologies HCB TECHNOLOGIES are the winners in this category for substantial reduction in battery explosion incidents through product changes, improved understanding of handling and maintenance and improved SOP/audit programmes. BGH GROUP LTD were a finalist for developing a web based asset management tool to improve safety and greater traceability around the hose life cycle. DYNES TRANSPORT were a finalist for commissioning of site specific Driver Training DVDs for South Island sites including the entire site truck operation to improve site familiarity to prevent Health and Safety incidents. ORICA CHEMICALS were a finalist for their proactive and successful risk reduction approach with bulk chemical deliveries following an event at Edgecumbe site.

5 INNOVATION AWARD Excellence in supporting new product development for dairy. WINNER OF EXCELLENCE IN SUPPORTING NEW PRODUCT DEVELOPMENT FOR DAIRY. ERIC KJESTRUP MARK MALONE Director Research & Development ALTO PACKAGING are the winners in this category for for their work on Project Liberator, collaborating with FBNZ on the Light Proof Bottle. A project that developed the new bottle to completely block any visible light from entering, which was eroding both the nutritional qualities and the taste of the milk. AURECON NEW ZEALAND LTD were a finalist for increasing the production of edible grade lactose. The project at Clandeboye increased manufacturing capacity by more than 25% without the need for any additional raw material. INTERNATIONAL FLAVOURS & FRAGRANCES were a finalist with their effort in project PAC matching historical TipTop flavours (non natural) with natural flavour components. SEAL IMPORTS were a finalist for introducing a detectable rubber compound, which is fully detectable via metal detectors and x-rays. SPRAY NOZZLE ENGINEERING were a finalist for reducing scorched particles for spray dry nozzles with unique low profile nozzles.

6 PRODUCTIVITY AWARD Best total cost saving or operational process improvement initiative. WINNER OF BEST TOTAL COST SAVING OR OPERATIONAL PROCESS IMPROVEMENT INITIATIVE. CHEP are the winners in this category for it s design & implementation of a new style plastic, re-usable handling system, for in-house processes for disposal of stock food, resulting in a significant cost saving on all of the bins used for waste. PETER RODGERS CHEP CHRIS BRAY CHEP ROBERT SPURWAY Director NZ Operations BRENNTAG NZ were a finalist for their proactive work with Canpac to secure significant freight cost savings, through better forecast and order management, maximising loads, and offering local storage. DYNES TRANSPORT were a finalist for developing an integrated end to end IT system (Dynes Dispatch) to provide online real time visibility and traceability of product movements. ECOLAB were a finalist for significant identification of operational savings and efficiencies across three North Island Brands sites using their Total Plant Assessment audit process. HCB TECHNOLOGIES were a finalist for product changes that can handle the demands of the application and with improved understanding of handling and maintenance has resulted in significant improvement in battery life (improvement of 250%).

7 SUSTAINABILITY AWARD Best sustainability initiative. WINNER OF BEST SUSTAINABILITY INITIATIVE. GREG COCHRANE K&S Freighters WENDY PAUL Manager Sustainability & Social Responsibility K&S FREIGHTERS are the winners in this category for their support to implement the use of HPMV units (High Productivity Motor Vehicles) to move finished product over key laneways in the central North Island; to allow trucks to carry greater loads per trip, resulting in reduced fuel costs, reduced carbon dioxide emissions and improved road safety through reduced truck movements. ASHLAND were a finalist for their overall improvements made in the Kauri water treatment plant in regards to implementing technology to reduce chemical use, packaging and handling of chemicals. ENVIRO WASTE were a finalist due to their ongoing efforts in recycling waste plastics & developing innovative & sustainable opportunities to recycle in NZ. SCHNEIDER ELECTRIC LTD were a finalist for their role in reducing waste in the electrical supply system in New Zealand. Their solution implemented at the Darfield plant expansion not only meets the new regulatory requirements but exceeded s expectations.

8 SERVICE AWARD Outstanding commitment to customer service. WINNER OF OUTSTANDING COMMITMENT TO CUSTOMER SERVICE. ZE CARRAPICHANO MJC 2 MJC 2 are the winners in this category for their exceptional customer service for the automated tanker scheduling and dispatch optimisation tool with significant contribution this year to enable suppliers to select milk collection windows, a project that was delivered on time, within budget and without error. BAKELS EDIBLE OILS were a finalist for their on-going support to s Nutritional business needs, including 24/7 support, investment to increase production capacity, and investment in their in-house laboratory services. ECOLAB PEST ELIMINATION SERVICES are finalists for providing information, advice and assistance that proved extremely valuable in the management of the Waitoa Pest Entry issue in April JAMES WALKER NZ LTD are finalists for their proactive and professional service delivery and working closely with Darfield staff to help them achieve with understanding the spares and training. RAYMOND TRANSPORT are finalists for building an effective partnership with DTL and to ensure zero failures, ongoing quality and safety commitment and an operational efficiency.

9 SERVICE AWARD Outstanding delivery performance (Vendor Supplying less than 5 sites) WINNER OF DIFOTIS (LESS THAN 5 SITES) COLORPAK LIMITED NZ are the winners for supplying less than 5 sites, that has consistently attained the highest DIFOTIS performance during the qualification period. GARTH PICKETT Colorpak Limited NZ ANDREA GREGORY Director of Group Procurement SERVICE AWARD Outstanding delivery performance (Vendor Supplying more than 5 sites) WINNER OF DIFOTIS (MORE THAN 5 SITES) BAKELS EDIBLE OILS are the winners for supplying more than 5 sites, that has consistently attained the highest DIFOTIS performance during the qualification period. DAVID RUDD Bakels Edible oils KERRY UNDERHILL Group Director Communications

10 SERVICE AWARD The extra mile service award. WINNER OF THE EXTRA MILE SERVICE AWARD FILTERCORP are the winners in this category for their outstanding support and commitment to a major pest issue at Waitoa. They worked around the clock to help create & implement a solution to a significant issue. CHRIS CALDWELL Managing Director of People, Culture & Services KEVIN McPHEAT Filtercorp BABBAGE CONSULTANTS LTD were a finalist for their active participation in creation of a community of people at Darfield which applied the principal, Putting People before the Project thus breaking the typical consultancy model and deliver beyond a standard service. CARTER HOLT HARVEY SPECIALTY BOARD were a finalist for reworking Packaging (not supplied by CHH) for Te Rapa to enable the site to continue to use the product and meet customer requirements. INVITA were a finalist for their support in sourcing urgent ingredients for a nutritional trial at Waitoa at very short notice including contribution to air freight costs and stock holding outside of firm volumes. ORICA were a finalist for chemical supply and storage during the Darfield Drier One project commissioning.

11 QUALITY AWARD Excellence in commitment to quality. WINNER OF EXCELLENCE IN COMMITMENT TO QUALITY ORICA are the winners in this category for implementation of a premium ingredient product assurance plan that gives greater assurance of milk product ingredient integrity. IAN PALLISER Group Director Food Safety & Quality MATT CAWTE Orica TIM COOPER Orica ECOLAB were a finalist for implementation of a new improved cleaning program that has given increased quality & productivity on the Te Rapa D4 plant. SEALED AIR were a finalist for the upgrade of Cryovac Hamilton Facility with a purpose built pressurised plant for Multiwall Bag manufacture; incorporating a standard of redline change area and covered loading area. TIMPACK were a finalist for working with to review current nail specifications for pallets; and testing all available options on equipment designed specifically by Timpack to assess nail performance. VOLVO TRUCKS & MOTOR TRUCK DISTRIBUTORS NZ LTD were a finalist for consistently challenging the understanding of quality across all aspects of the business with improvements to process and production line assembly, improvement of service life, utilisation of sustainable sources.