performance management : the good, the bad, the ugly

Performance-oriented Ambition I Leverage I Professionalism I Results I Ownership

People-driven Authenticity I Leadership I Passion I Respect I Openness


People-driven Authenticity I Leadership I Passion I Respect I Openness - 2 -

I Who is Alpro ?

II Learnings on Performance Management outside Alpro

III Practice of Performance Management @ Alpro



1) Please refer to the Industry and Market Data section in the company’s October 25, 2012 IPO prospectus for source descriptions and category definitions

2) Represents International Delight only

North America Europe

Plant-Based Foods & Beverages

Plant-Based Foods & Beverages Premium Dairy Coffee Creamers

& Beverages

#1 #1 #1

58% 45% Int’l Delight: 30% Land O Lakes: 22% 38%

Brand Position

Sub- category Share1

#22

Category Growth



Key facts and figures about Alpro

•! Alpro founded in 1980 and acquired by Dean Foods mid 2009

•! Part of The WhiteWave Foods Company since mid 2012 NYSE

•! Grown to ! 286 million in revenues in 2012 (US GAAP) (! 304 mio IFRS)

•! European market leader in non-dairy plant-based products

•! 2 power brands: Alpro® and Provamel®

•! 6 product categories

•! 3 channels

•! 4 wholly-owned commercial organisations in BE, NL, UK and GE and more than 30 commercial partnerships in all other primary European markets

•! 4 plants in BE, FR, UK and NL

•! ~850 employees



Alpro mission anchored in sustainable development

“We create delicious

naturally-healthy

plant-based foods

for the maximum wellbeing of everyone

and with the utmost respect for our planet”



Evidence shows that healthy and sustainable foods go hand in hand

Source: Barilla Centre for Food Nutrition



6 product categories

Drinks Desserts Yofu

Cream Meat-free

3. Innovation

Margarine



Alpro driving innovation in 3 dimensions



Innovations 2012



Innovations in 2012



I Who is Alpro ?

II Learnings on Performance Management outside Alpro

III Practice of Performance Management @ Alpro



A UNIVERSAL STRUGGLE



Learnings of Performance Management outside Alpro

The Bad – The Ugly Impact

Performance Management Process not embedded in the Business Processes

•!Personal & Team Objectives not in synch with heartbeat of the business •!Lack of mobilization/connection of the Workforce •!Performance Management gets considered as “bureaucratic overhead” •!HR fighting the “uphill battle”

Inconsistent roll-out of Performance Management across Business Segments (optional versus mandatory)

•!Feeling of unfairness when eventually “all” get Compensation •!Performance Management (or lack of) becomes an “Ego booster” for Leaders – HR as chaser for 100% •!HR considered as “powerless” and “spine-less”, without overall business impact





The translation of Performance Management “results” into Compensation varies fundamentally over the years (eg mathematical bonus calculation vs bonus based on management discretion, eg gaussian/non gaussian distribution, ")

•!Major efforts to explain (reason for) changes in this translation – HR as messenger/scapegoat •!HR accused of having no long term vision on the basics of HR (SMART or not SMART", forced distribution or non forced distribution")

Dramatic difference between functions when translating Performance Management into compensation (eg sales vs non-sales)

•!Unhealthy friction between people working for same “customer” but in different functions •!Disengagement of people •!Power games to belong to the “happy few”





Overengineered Performance Management Systems

•!Line Management considers large part of time spent on Performance Management as waste •!Performance Management becomes a “tick the box” exercise •!HR needs to install “help-desk” to preserve its image •!ROI low : many features not used

Frequent redesign of the Performance Management process and system over the years

•!Major efforts required to align the organization – management and workforce get confused and start neglecting the changes •!HR accused of focussing on change of processes and systems instead of content (“HR is business partner ??”)





Despite application of Performance Management underperformance regularly lacks documentation (tactical reasons)

•!Delay in taking the necessary actions (especially when dealing with active unions) •!Will become a bigger issue in light of the new Blue Collar-White Collar legislation changes

When a company is in a bad financial situation, priority on Performance Management drops.

•!HR is not always agile enough to position Performance Management in different contexts : “How does Performance Management motivate people to excel in a financially bad situation ?”

performance management : the good, the bad, the ugly

Business

utmost respect

alpro mission

healthy plantbased foods

sustainable foods

dean foods mid

whitewave foods company

nondairy plantbased

category definitions