Transparent figures

Annual average milk price for unprocessed milk paid to the member companies of Uelzena eG (UG-MG): In 2018, the milk suppliers were paid a competitive milk price for raw milk (4.0% fat, 3.4% protein) of 33.68 cents per kilogram (ex ramp dairy, without VAT). This is less than in previous year (36.54 ct/kg); however the milk payout by Uelzena is higher than that of many dairies in most Federal States. It is only in Bavaria, Baden-Württemberg and Thuringia that the dairies were paid more than the federal average milk price. The decline in payout corresponds roughly with the percentage of decline in sales (-7.8%).

Revenues (sub-indicator GRI 102-7): Following a sharp rise in 2017, the consolidated Group sales dropped noticeably in 2018: from about 703m Euros to approximately 647m Euros. This is a 7.8 percent reduction. The reason for this negative development in sales: While the sales for the main product groups remained almost stable, the average market prices, in particular for milk powder, butter and cheese were significantly lower in 2018. This means that the reason for the declining sales of about 53.3m Euros was predominantly due to market prices.

Equity ratio (UG-EK): In 2018, the equity ratio fell slightly by 2 percent to 37 percent. This was caused by the sharp rise in fixed assets due to investment activities. Sufficient equity is one objective for the Uelzena Group because a sound financial foundation is important for the implementation of its strategic plans for the future.

Value generated and distributed (GRI 201-1): Despite the fact that the generated value decreased in 2018 when compared to 2017, at 651m Euros it is still significantly higher than in 2016 (531m Euros). The distributed value also fell from about 693m Euros to 644m Euros. The largest costs arose from payments to suppliers, which amounted to over 565m Euros.

Materials used (GRI 301-1): The quantity of milk raw materials including semi-finished products significantly rose from 603,354 tons in 2017 to 640,934 tons in 2018. The quantity of non-dairy raw materials including semi-finished goods also rose, but not so significantly, from 30,282 tons to 31,886 tons.

Recycled input materials used (GRI 301-2): Compared to the previous year, more recycled packaging materials were used in 2018. It was an increase of 78 tons to a total of 2,005 tons. The percentage improved from 40 to 41 percent. The total quantity of packaging materials rose slightly from 4,947 tons to 5,007 tons.

¹ 100% of the quantities of the product-related procurement material groups have been considered as long as they were recorded in kg. No information is provided for adjuvant and process materials because the amount sourced have been considered to be negligible.
² New allocation of semi-finished goods from 2016

Quantity of products provided/sales (sub-indicator to GRI 102-7): Total sales in the main product groups remained almost stable from 2017 (231,678 tons) to 2018 (231,107 tons).  While there was an increase in sales in the fields of milk powder, contract drying and instant beverages, the sectors milk fat and nutrineo saw declining sales. Profitability for special products was consistently above plan, although milk-based products did not achieve the strategic goal. This was due to several reasons, including the limited use of the milk powder production plant due to the reconstruction of a tower in Uelzen.

¹ Summary of instant beverages, health products, specialty dry products and contract drying

Energy consumption within the organization (GRI 302-1): Absolute energy consumption increased only marginally from 251,797,344 kWh in 2017 to 251,901,562 kWh in 2018. Energy consumption per ton of production and energy intensity (GRI 302-3) also increased slightly; it amounted to 1.202 kWh/kg in 2018 compared to 1.198 kWh/kg in 2017.

Total direct and indirect greenhouse emissions (GRI 305-1 and 305-2): Absolute greenhouse gas emissions decreased slightly from 30,822 tons in 2017 to 29,909 tons in 2018. GHG emissions intensity (GRI 305-4) also improved slightly from 0.147 to 0.143 kg/kg.

¹ New allocation of semi-finished goods from 2016 (retroactive correction in 2015)
² Production quantities not consolidated but stated additively. The energy intensity based on energy input is higher than the energy intensity calculated based on consumption (energy input incl. own electricity x efficiency = energy consumption).
³ CO2 emission referred to the production quantity in kg

Total water withdrawal (GRI 303-1): Freshwater consumption fell slightly from 1,075,934 m3 to 1,067,344 m3. Water consumption per ton of product also fell slightly to 5.09 m³ per ton (from 5.12 m³ per ton in 2017).

Total wastewater discharge (GRI 306-1): At 737,109 m³, the volume of wastewater in 2018 was higher than in the previous year (694,873 m³). The amount of wastewater per ton of product also increased from 3.30 to 3.52 m³/ton. This negative development is due to the higher production volume of raw milk. The contract drying activities also required more product changeovers with their respective cleaning efforts.

¹ Waste water only for the Uelzen and Bismark sites; waste water quantities for the Ratzeburg site are negligibly small; Warmsen site has its own sewage treatment plant

Total weight of waste and method of disposal (GRI 306-2): The total weight of waste fell from 1,339.26 tons to 1,272.42 tons. This is both below the previous year's figure and the target value; therefore the annual target was achieved in this respect. The proportion of recyclable waste related to the production volume increased again in 2018 to 78.4 percent. This is – again - the highest value since 2012.

¹ Waste which is independent from the production quantity includes construction waste, garden waste and outdated files

Total number of employees (GRI 102-7) and total number of new employee hires: The Uelzena Group is growing. The number of employees is also growing in line with this development. In 2018, the total staff number increased by 30 to a total of 745.

The rate of employee turnover (GRI 401-1-b) increased slightly from 7.5 percent in the previous year to 8 percent in 2018.

¹ Employee-related performance indicators refer to all employees and sites of the Uelzena Group. Headcount is known.
² Sites are located within Germany, therefore no breakdown by region.
³ Apprentices and interns not included.

The average number of hours of training per year per employee (GRI 404-1) remained unchanged at 6 hours per year.

The average period of employment (UG-BZ) continued to fall slightly in 2018 from 12.7 years in 2017 to 12.2 years in 2018. The reason for this: As in the previous year, many long-serving employees retired in 2018. Due to the expansion of the Uelzena Group, there is a growing demand for manpower; the company hired new employees who naturally had only been with the company for a short period of time as of 31 December. This development led to a further decrease in the average value.

Percentage of expenses to suppliers local to the operation (GRI 204-1): 82 percent of all expenditure on agricultural raw materials and packaging materials remained at local suppliers such as farmers or sugar producers; this is 5 percent more than last year. 17 percent of the Uelzena Group’s expenditure on services went to local suppliers; this is a minor decrease of 1 percent.

Percentage of regionally sourced milk raw materials in volume (UG-RBM): Traditionally, the Uelzena Group procures a very high share of dairy raw materials from local sources. In 2018, this amounted to 94 percent of all quantities received; this is 1 percent more than in 2017. Minor fluctuations in this value are normal and do not indicate a general trend. The Uelzena eG is a cooperatively organized dairy. Liquid milk raw materials have special significance for us. The quantity of milk raw materials delivered by the members who hold cooperative shares determines – in addition to the reserves - the amount of equity. This indicator is important for several groups of stakeholders; it also serves to determine regional sourcing. In contrast, GRI 204-1 is defined and accounted for by the GRI organization as a value share. This is why we use two similar indicators in order to cater for all information requirements.

¹ Regional supplier for packaging materials: Germany: headquarters of the supplier is decisive
² Regional supplier for non-dairy raw materials: Raw materials and semi-finished goods of suppliers headquartered in Germany
³ Regional supplier for dairy raw materials: 150 km radius around production sites of the Uelzena Group