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STRATEGY Land O’Lakes’ continuing journey of growth is grounded in consistent enterprise strategies that guide our approach to long-term business development and shorter-term operational goals. Our Strategic Imperatives maintain our focus on: » growth, the underlying goal for all of our imperatives and key to our future success » best talent, building a high-performance culture and best place to work » best member and customer relationships, delivering results to grow and innovate » total margin management, driving performance and creating fuel for growth Our business units pursued multiple growth initiatives in 2014 ranging from product innovations, facility improvements and new technologies to extending the reach of our core brands toward new customers and categories. We also launched an international strategy and structure to forge new markets for our products and expertise in some of the fastest growing economic regions: Canada, Mexico, Africa and China. We’re moving into these markets through partnership and acquisition. In 2014, we advanced our best talent strategy by investing in our existing talent to deepen and extend its knowledge and professional development. In addition, we continued to make progress with our talent pipeline by attracting top talent, recruiting diverse, outside-in thinking and enhancing our campus presence at leading colleges and universities. From the continuing expansion of our student internship program to the launch of a new Global Food Challenge Emerging Leaders program, we are preparing future leaders to engage in the exceptional opportunities of the food and agriculture industries. We also finalized a new, long-term strategic relationship with the University of Minnesota to place Land O’Lakes at the forefront of a variety of student-facing programs across the university. Approximately 20 percent of Land O’Lakes headquarters’ current employees are graduates of the University of Minnesota, and, as we continue to grow, this pipeline of talent from the university will be a critical source for the growth of our company and our industry. These initiatives are designed to energize our workforce with new talent and ideas while we simultaneously develop diverse teams to support future business needs. With consistently strong performance, our capacity to provide value and service to our members is reaching new levels. Through record patronage payments, continued and competitive market access, strong Section 199 deductions and powerful advocacy and representation in Washington, D.C., and across the country, support for our members is an everyday pursuit. This also includes an increased focus on the

latest technology innovations and ever-improving insights and tools to lead the industry in precision agriculture and Big Data management. Land O’Lakes is also expanding new tools to members that leverage enterprise buying power to deliver cost savings in such areas as travel, supplies and vehicles. Our overall growth strategy was supported by more than $1 billion of investments over the last three years, primarily funded from cost savings through margin management initiatives across our operations. Consistently high levels of return on equity and return on invested capital illustrate effective deployment of

L-R: Chris Policinski Pete Kappelman

our capital to drive earnings.

PURPOSE As a federated cooperative system, Land O’Lakes leverages a powerful and relevant business model designed to support the success of our memberowners. We work best when we work together, and we must change and evolve together. The progress we achieved in 2014 is fuel for another leg of our long-term journey, and we are inspired by our higher purpose to help feed a growing global population. Through increased productivity and increasingly sustainable practices, we are committed—as we always have been—to not only participate in this opportunity but to lead into the future.

Sincerely,

Chris Policinski PRESIDENT CHIEF EXECUTIVE OFFICER

Pete Kappelman CHAIRMAN OF THE BOARD

2014 Annual Report | B

Land O'Lakes, Inc. 2014 Annual Report  

We are pleased to report another strong year, continuing nearly a decade of consistent growth and record-setting performances. We believe st...

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