MANAGING RISK IN

ASSOCIATED BRITISH FOODS

Steve Bradley

1

George Weston, CEO

• AB World Foods

• Allied Bakeries

• Allied Mills

• Allied Technical

Centre

• Jordans Ryvita

• Speedibake

• Silver Spoon

• Westmill Foods

• Baking

• Cereals

• Meat & Dairy

• Animal Nutrition

• Jasol

• AB Enzymes

• ABITEC Corp

• Pacific Grain

Products

• Yeast Extract

• Europe

• North America

• Brazil

• South America

• South & West

Asia

• China, East Asia

Pacific

UK Grocery

97,000 employees

Twinings Ovo ACH George Weston Foods ABF Ingredients AB Mauri AB Agri

• AB Agri UK

• AB Agri China

• Frontier (50%)

British Sugar Group

• British Sugar UK

• BSO China

• Azucarera Ebro

• Illovo Sugar (51%)

• Germains

Primark

2

Main Locations3

Brazil

Argentina

Canada

Chile

Columbia

Ecuador

Finland Germany

India

Indonesia

MalawiMalaysia

Mozambique

Netherlands

New Zealand

Peru

Philippines

Poland

Portugal

South Africa

Australia

Ireland

UK

Spain

Swaziland

Switzerland

Tanzania

Thailand

Vietnam

Turkey

Uruguay

US

Zambia

Pakistan

Mexico

France

Sri-Lanka

Italy

China

40 Countries

4

Men and machetes

15,000 people movements a day!

5

Raw material transport

6

Large factories

Sugar Cane Factory, Mozambique

7

Machinery

8

Chemical operations

9

Sophisticated operations

and control systems

10

Highly automated processes

Bakery in Australia

11

Large bakeries

12

Vehicles and members of the public

13

Members of the public

Autonomous structure allows

flexibility and entrepreneurship

Very ‘hands-off’ corporate style

(only 94 direct ABF employees)

97,000 employees in 30

companies in 40 countries

ABF Culture14

Legal compliance in the countries in which we operate

High levels of operating efficiency

Sustained growth

Sustained safety improvement

Few rigid global standards or ‘manuals’

We Require

ABF Culture15

Basic Values16

• Legal compliance

• Looking after our people

• Safe

• Respect their human rights

• No discrimination

• etc

• Sustained improvement

• Operate ethically

Products17

Seed coating and grain processing

Flours

Yeast and bakery ingredients

Enzymes, lipids, proteins, yeast

extracts and emulsifiers

Bread, baked goods and crisp breads

Sugars

Rice and rice products

Ethnic sauces

Cooked meats

Teas & Ovaltine

Animal feed

Clothing and soft furnishing

The Challenge18

No common processes or products

46 different legal jurisdictions

30 different company cultures

No ‘Operating Manual’

No universal standards

Generic policies & business principles

Standards

Chaos? Anarchy?

19

Managing Risk

Accountable director

Responsible senior manager

Businesses responsible for assessing the risks

Businesses responsible for managing the risks

20

Independent Audits

Local auditors

Local legal standards

Local norms

Data verification

21

Audit Findings22

Legal / Risk / Data

Red / Amber / Green

Closeouts at sites and corporately

Follow up 1 year later

Appointing a Programme Manager

‘Helping companies to remember’

Improvement plans

Each company has robust safety improvement plan

Reviewed by ABF

Tracked closure of material issues

23

Sharing Knowledge

Annual meeting of senior safety professionals

Three a year for our Chinese operations

Sharing audit findings with sister sites

Safety alerts

ABF and operating companies

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Strong Emphasis on . . .

Accountability in subsidiary operating companies

Freedom to operate and deliver the end results

Working within local laws and standards

Sharing knowledge

Audits to check actual standards

Clear improvement plans

25