DLG Kommunikation & Marketing • 2010 • 500 stk • Rosendahls Schultz Grafisk

Strategy 2014 / 2016

DLG a.m.b.a. Central Buisness Registration Nr. 24 24 69 30 Phone + 45 33 68 30 00 • Fax + 45 33 68 87 00 [email protected] • www.dlg.dk

Group competencies

Contents

Group competencies

3

This is what DLG stands for

4

Mission

6

Vision

6

Core values of the DLG Group

6

The surrounding world

7

Cross-cutting strategies

8

Our international commitment

9

Denmark

10

Germany

14

Sweden

15

Poland

16

The Baltic States

17

In order for the DLG Group to continue to develop in a

Central and Eastern Europe, as well as Russia

18

changing market, we base our activities on and are

The World

19

convinced that the success of the group derives from our

Risk management

20

ability to:

R&D

21

• exploit synergies

HR

22

• establish strategic alliances and partnerships

DLG’s CSR

23

• set priorities • manage costs • constantly focus on risks • diversify our activities, in Denmark and abroad.

2

3

This is what DLG stands for

DLG is: • one of Europe’s biggest feed producers by far; The DLG Group is one of Europe’s largest agricultural com-

DLG supplies farmers with feed from the group’s own

panies and is currently owned by approximately 28,000

factories, seed grain, fertilizer, agricultural limestone, crop

Danish farmers. In addition to seeds and fertilizers, the

protection products, fuel and much more for day-to-day

Group’s activities include farm machinery, vegetables for

operations. The DLG Group is also one of Europe’s largest

the catering and retail trades, electrical supplies, telecom,

exporters of malting barley, seed grain, feed and milling

pot plant sales and more besides.

grain and rapeseed. In addition, through its associated

The group’s strategic focus on extending activities in

companies, DLG is also involved in processing vegetable

Denmark and abroad is among other things reflected in

crops.

• Germany’s largest exporter of quality wheat;

(through our subsidiary HaGe, also one of Germany’s larg-

DLG has its own chain of stores (Land & Fritid), which sells

• at the cutting edge of plant breeding – DLG has some of Europe’s strongest varieties of malting barley;

est agricultural suppliers), the Polish market, Sweden (via

and advices on products in the areas of home and

our subsidiary Svenska Foder) and the Baltic States (via

garden, pets, telecoms and much more.

• one of Europe’s leading producers of speciality feeds via Deutsche Vilomix and Vitfoss; • one of the largest procurers of fertilizer and raw materials in Europe; • one of the largest buyers and sellers of crops in Europe;

international collaboration in Europe – notably in Germany

Scandinavian Farmers) and in DLG’s food company DLG Food. DLG has a local presence in a total of 24 countries.

• via Kongskilde leading the market of soil cultivation and grain-processing equipment in France and Sweden and

is one of the very largest in this field in Denmark, Poland and the UK.

In 2009, DLG generated a turnover of DKK 34.1 billion and a profit before tax of DKK 323.4 million. The DLG Group

• a vendor of telecom, insurance and energy in Denmark, Germany and Sweden;

has 5,000 employees, of whom almost fifty percent work in Denmark.

• a vendor of oil and energy products in Germany through Team AG; • a market leader within convenience foods in Denmark and has a number of food companies, via DLG Food; • via the GASA Group, represented in the flower market throughout most of Europe;

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5

Mission, vision and core values

The surrounding world

Mission To run a conscientious, value-creating group for the benefit of our owners and customers.

Vision To be an innovative enterprise that is continuously developing

Competitors DLG’s competitor market situation has changed. Today

Frame Conditions

we have integrated our activities in a larger international

Every day, our surroundings present us with changing de-

market.

mands, such as Grøn Vækst (Green Growth), internationalisation, biotechnology, environmental issues, food safety,

its activities in international markets and is the preferred business partner within the group’s areas of activity.

Core values of the DLG Group • Responsibility

Suppliers

structural developments and health. We must be able to

We have become a bigger player in the multinational

integrate these demands into our activities.

arena, which has improved our prospects of choosing our business partners on the basis of strategic considerations.

Customers

• Dynamism

Our customer situation has changed and will continue to

• Commitment

do so. There will be fewer, but bigger and, to some extent,

• Competence

more internationalised agribusinesses. In addition, new

• Value creation

types of private consumers will emerge in rural areas. In

• Quality

sales, we are facing major multinational corporations.

• Innovation

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7

Cross-cutting strategies

Our international commitment

The numerous activities of the DLG Group necessitate the



The group has intensified its development of international

The group has detailed strategies for its markets:

establishment of strategies for the individual areas. We

• The DLG Group will make a pronounced commitment

activities, especially in the past five years. We take a pro-

• Denmark

have however a number of common overarching strate-



to IT for crop production. We want to do this to make

active approach to take advantage of the benefits pro-

• Germany

gies and areas especially focused on growth.



sure that we can be even better at utilizing the know-

vided by internationalisation. Our point of departure is that

• Sweden

• In order to accommodate professional farmers’



ledge inherent in crop production, so that our custom-

the group’s competitors are increasingly international and

• Poland



demands for professional advice, within the group we



ers can optimise their efforts as a result.

growth takes place to a large degree through internation-

• The Baltic States



will generally assign higher priority to our employees’

• We intend to win market share in every area by

alisation.

• Central and Eastern Europe,



specialist knowledge.



using our customer insight, by differentiating our activi-

• We wish to integrate our group’s specialists and techni-



ties in the market, by exploiting our global competen-

Our subsidiaries and affiliated companies in Denmark and



cal experts across the parent company and subsidi-



cies and by being a preferred business partner.

abroad offer great potential for generating synergies and



aries.

organisation accordingly.



• We intend to grow within the consumer product seg-

exploiting economies of scale between the companies.

• We must keep strengthening our international strategy



Via our international involvement, the group has amassed



ment via our companies in DLG Food.

• We continue to focus on expansion and internationali-

substantial expertise, which is utilized in our continued ex-

• We must emphasize the priority given to the collabo-



pansion into new markets. This benefits our owners’ future



ration in our procurement companies that generates

• Conceptual solutions within insurance, telecoms, ener-

earnings. Our owners are Danish but at the same time they



purchasing power.



gy etc. must be rolled out via Land & Fritid, which at

are some of the most international farmers in the world.

• Our logistics must be optimised and streamlined across



the same time must be expanded to include addi-



national borders through our partnership with Ahlmann



tional shops.



Zerssen.

through strategic alliances and partnerships.

sation.

as well as Russia

• The rest of the world

• Structural agricultural trends indicate increasing

organic-farming activities and, for this reason, the DLG



Group will continuously adapt and develop the

8

9

Denmark

In 2008, the DLG Group optimised its business structure in

Our subsidiary goals in Denmark:

Crop Production

• We strive to increase and develop our business area

Denmark. We did this to ensure that it corresponds with the

Livestock Nutrition

• By adopting significant IT initiatives for crop produc-



within the plant and flower sector all over Europe -

structure within Danish agriculture and thus benefits our

• We want to intensify our focus on the technical skills of



tion, we will ensure, that we exploit the knowledge



focusing on retail chains and concepts – adjusted

farmers. In Denmark, we have divided our activities into



our employees to be able to serve as a sparring partner



inherent in crop production in the best way possible.



towards customers and segments.

four areas: Livestock Nutrition, Crop Production, Crops and



for farmers.

• In the crop protection and fertilizer segment, we want

Vegetables and Service & Energy. We want to continu-

• Within organic farming, we want to develop our profile



to give higher priority to collaboration in our procure-

ously develop all four areas, and we apply the lessons we



so we can help to uphold confidence in organic



ment companies as this generates purchasing power.

learn in Denmark when we internationalise our activities.



farming methods in every market where the DLG Group

• We want to develop the joint representation of plant



is represented.



varieties in Europe.

• We want to integrate the specialists and technical

• Develop plant breeding by means of acquisitions and



experts working within the group across our parent





company and subsidiaries.

• We want to maintain our existing positions of strength

partnerships in Europe.

• Added-value components must be further developed.



within the breeding of malting barley and feed/export

• We want to strengthen the development of feed grain



wheat.



• We must achieve a marked increase in liquid fertilizer

concepts.

• IT solutions that enhances the agricultural productions





• Focus on developing additional hybrid varieties.

must be developed.

as a percentage of total fertilizer sales.

• We aim to be among the best in creating results for the

• Increase sales of limestone products by using the





livestock production.

synergies between the companies within the Group.

• Continuous focus on product development within soil

10

cultivation.

11

Danmark

Crops

Service & Energy

• We must continue to strengthen our sales opportunities

• We strive to be the agricultural sectors preferred tele-





com company and strengthen our position in rural

• Food crops must be contracted as a concept.



districts.

• We must further develop production and business con-

• We aim to widen our activities via our new oil set-up.



• In the area of biofuels, we want to continue being a

through strategic alliances and partnerships.

cepts within crops and vegetables.

• We wish to be one of the leading companies in the



quality supplier for existing customers and continue the





trend of acquiring new customers – primarily through



our Land & Fritid chain.

grain trade business for maltsters and breweries.

Vegetables – DLG Food

• We want to enlarge our “Service to Stables” concept.

• We want to achieve growth in the convenience food

• In the insurance area, we want to develop the con-





sector.

cepts of our products for individual customer segments.

• We want to double the group’s refinery capacity for

• The product palette from Service & Energy should be





rapeseed oil.

rolled out by means of conceptual solutions etc.

• We intend to strengthen our know-how within oil,

• The Land & Fritid chain must be expanded by adding





shops in rural areas while at the same time upholding



our position as a leading Danish retail chain.

varieties, breeding and processing.

• In the area of processed foods, we wish to develop our

product portfolio based on vegetable raw materials.

• We intend to internationalise our activities and produc-

12

tion via partnership

13

Germany

Sweden

Germany is the biggest market for the DLG Group through



HaGe. Our position as a majority shareholder, the subse-

• Our strong feed-grain breeding programmes must

Foder in 2008, we strengthened our position in the Swedish

quent purchase of BSL and the enlargement of the Deut-



market. We are convinced that our future prospects in

sche Vilomix production facilities emphasizes our desire to

• We want to improve our use of synergies involving

Swedish agriculture are very bright. This means that Sven-

further develop the DLG Group’s position in the German



ska Foder fits in very well with the DLG Group’s internation-

market on a solid profit-making basis.

• Our agricultural machinery sales platform must be

effective sales organisation. be exploited. procurement, marketing, logistics and IT.

After the DLG Group took complete ownership of Svenska

alisation strategy.

strengthened.

Our subsidiary goals in Germany and the rest of Western

• We aim to establish the Land & Fritid concept in

Our subsidiary goals in Sweden:

Europe:



• The exploitation of synergies between Swedish compa-

Germany.

• We want to be one of the indisputable leading agricul-



nies and the rest of the group must be optimised,





including procurement collaboration product develop-

• We want to grow in the Eastern states of Germany in



ment and shipping logistics.



• Roll-out of Service & Energy’s product palette –

tural supply companies in Germany. the years ahead.

• Our rapeseed processing capacity in Germany must





• Expand the Djur & Natur chain.

be increased.

including telecoms, insurance and energy.

• We aim to extend and utilize our strong position within

• Develop new business areas within crop production



fertilizer and crop protection to include crops and crop



and Service & Energy to strengthen our original core



production.



business.

• We want to improve our market position in compound

feed products.

• In Germany, we want to grow rapidly within speciality

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feed including mineral compounds by building up an

15

Poland

The Baltic States

The Polish market is our fourth-largest. The growth potential

Our subsidiary goals in Poland:

In recent years we have succeeded in establishing close

in Poland is significant in the long term, as it is one of the

• Consolidation of our activities.

collaboration with our companies in the Baltic States and

biggest agricultural countries in Europe. We have been

• Increased use of synergies between Polish companies

the rest of the Group, especially in the areas of fertilizers

active in Poland since 1989, through the agency of HaGe.



and crop protection, as well as grain sales. The companies

DLG’s and HaGe’s activities in Poland were merged in

• We want to develop our business concepts.

in the Baltic States benefit greatly from the economies of

2007. This merger strengthened our market position.

• Development of strategic partnerships within already

scale that arise from being part of a large group.



and the rest of the group.

established partnerships.

• Develop our market within speciality feed sales.

Our subsidiary goals in Poland: • Optimise the use of obvious synergies between the

Baltic companies and the DLG Group.

• Prioritise collaboration within our procurement com-

panies, as this provides purchasing power and scope



for exclusivity.

• We want to contribute to the development of Baltic

16



agriculture by offering market access and the best



product portfolio.

17

Central and Eastern Europe, and also Russia

The Rest of the World

Through Vitfoss and Deutsche Vilomix, DLG is manifesting its

Via subsidiaries, DLG operates in 24 countries. They include

position as one of Europe’s leading companies for vitamins

the US, Canada, South Africa (via Kongskilde), Costa Rica

and minerals. We want to take advantage of this position

(via the GASA Group) and Algeria (via Danespo). In addi-

and increase sales even more, and assess the possibilities

tion, we import products from and export products to a

for establishing production if this proves feasible.

number of countries all over the world. In tandem with the increased internationalisation, a natural step will be to

Our subsidiary goals in Europeand Russia:

analyse selected markets with a view to synergies, trade,

• We want to maintain and develop our market position

partnerships and permanent establishment if relevant.



within vitamins and minerals in Europe.

• We want to enlarge our current product assortment in

Deutsche Vilomix so West European elements can be



implemented in the Russian market.

• We want to continue building up the Russian market

and establishing new markets in the countries around



Russia.

• From Russia, we want to export to countries like

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Kazakhstan and Uzbekistan

19

Risk management

R&D

Increased internationalisation, the size of the DLG Group,

Elements of our risk management:

R&D is a strategic tool for every area of the group. It is a

R&D themes:

and market influences have made it more important than

• group-wide coordination

tool which helps to boost the group and ensure our com-

• R&D must be included as a specific strategic tool in the

ever to focus strongly on risk management.

• managing long/short positions

petitiveness. Ultimately, it will help to increase our earnings.



• identifying energy risks

Broadly defined, DLG’s R&D involves product develop-

• Current problems in primary production must be the

• contract management

ment, process development, experiments and testing.



basis for our R&D activities and must generate added

• product purchasing specifications

The greatest focus of R&D is on plant production via Sejet



value for livestock breeders.

• certification

Planteforædling, but it is playing a bigger and bigger part

• Together with the best in Europe, we will develop and

• supplier screening

in several areas within the group.



individual technical areas.

intensify our R&D within plant breeding.

• IT backup

• Within IT, we must develop management systems for

• analysis of financial factors



agriculture based on real-time data and GPS-based

• minimising costs



technology for soil cultivation to provide a sound basis

• limited credit to customers



for decision-making.

• internal guidelines for food safety and the environment.

• In the area of soil cultivation, we must continuously

develop and optimise our farm machinery via



Kongskilde.

• We want to be close to R&D environments in Denmark

and abroad.

• R&D must be included as a force for change through

20



out the group to improve competitiveness in the short



and long term alike.

21

HR

DLG’s Corporate Social Responsibility

DLG is responsible for contributing to a sustainable devel-

Food safety

opment and being aware of our social responsibility

• DLG regards raw materials, crops and feed as compris-

DLG’s development, growth, internationalisation and

HR action areas:

– financially, socially and environmentally. We are continu-



diversification of activities constantly increasing the re-

• In order to support our sales organisation, we must

ously working to develop our CSR policies. Energy, employ-



result, DLG takes responsibility for open dialogue on

quirements made on our employees. Highly specialised,



attract technically talented employees from agricul-

ee health and food safety are our particular and preferred



food safety all along the value chain. DLG assumes

professionally skilled farmers are increasingly demanding



tural universities in Europe, for instance.

areas of focus.



responsibility for ensuring a high level of food safety.

high-quality advice. We need employees with cutting-

• We want to improve our ability, both in relation to



We want to do this by ensuring traceability, contract

edge skills in special areas more than ever before.



society and our employees, to market ourselves as the

Our CSR efforts focus on:



production and quality control.

Intensifying market competition and farmers’ increasing



proactive, international and growth-oriented agricul-

Energy

• Our policy in DLG Food and its individual companies

demands on the DLG Group make it important to be ca-



tural company we are.

• Within energy, we are continuously working to find



is that all food companies must be certified. We are

pable of attracting, retaining and developing employees

• We want to continuously enhance the skills of our





continuously working to ensure this.

who are professional leaders in their field.



employees to improve their technical, commercial and

• We realise that we must use the best available tech-



personal characteristics, as they comprise a decisive



nology, including energy efficiency and energy man



competitive parameter for the entire group.



agement, in order to minimise our energy-related

Employees

• We want to work to optimise our knowledge-sharing



impact.

• We want to work to promote the health of our



• DLG Production’s overarching energy target is to



employees via the group’s health scheme, which



reduce energy consumption. This is effected through



includes a number of different initiatives.



specific projects.

• DLG wants to make a serious, targeted effort to ensure

22

within the group.

areas where we can become more energy-efficient.

ing the first link in the food production process. As a

• Certified suppliers are preferred wherever possible.

• Part of our efforts to reduce our carbon emissions



a safe, secure working environment for every



includes increasing the utilisation ratio of our road and



employee in the organisation, and in so doing, DLG



sea transports. For years, we have been focusing on



actively contributes to its corporate social responsibility.



increasing productivity per kilometre. This is also why



the Shipping Inside project was launched and is con



tinuously being developed.

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