Arla Foods Finance A/S

The Company's principal activities The Group's overall liquidity and currency management is handled via Arla Foods Finance A/S In addition, the Company also performs hedging transactions for the Arla Foods Group on interest rates and energy, related to the Groups commercial business. The objective is to reduce the Group's funding cost in the form of interest and fees by consolidating the Group's credit lines. Furthermore, Arla Foods Finance A/S' cash management services and internal group netting creates cost effective transactions, scale and optimised liquidity management. The company is also engaged in small-scale financial investments Development in activities and the financial situation The Company's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of kDKK -12.796 and the Balance Sheet at 31 December 2022 a balance sheet total of kDKK 12.496.011 and an equity of kDKK 519.393. The profit before tax and unrealised fair value adjustment amounts to 6,9 mDKK which is in line with the expectations for the year. During 2022, the Arla Group restructured its internal interest rate hedging arrangements previously held centrally in Arla Foods Finance A/S. The restructuring was performed to simplify treasury operations and to create a more direct connection between interest bearing debt and hedging on a legal entity-by-entity level. The restructuring had no net effect on the income statement of Arla Foods Finance A/S, as the effect of closing the interest rate swaps held centrally in Arla Foods Finance A/S was allocated to the relevant group entities. The restructuring affected balance sheet and equity by -27 mDKK as the effect of closing the interest rate swaps held centrally in Arla Foods Finance A/S dissolved the hedging reserve and any derivative in the balance sheet as part of the allocation to the relevant group entities. Risks The Company is exposed to currency risk from interest rate payments and the loan and liquidity portfolio. Currency risk on the loan portfolio is hedged by entering into derivatives that converts funding currencies into the needed currencies to make sure that assets and liabilities matches. Furthermore, the Company is exposed to interest rate risk.Interest rate risk is hedged by matching an external exposure with an offsetting internal exposure for both funding activities and derivatives which reduces net exposure. Expectations for the future The Company expects a profit before tax and unrealised fair value adjustments in the range of 4 and 9 mDKK for the coming year as the activity is expected to be on the same level. Post financial year events After the end of the financial year, no events have occurred which may change the financial position of the entity substantially.

Development in activities and the financial situation The Company's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of kDKK -12.796 and the Balance Sheet at 31 December 2022 a balance sheet total of kDKK 12.496.011 and an equity of kDKK 519.393. The profit before tax and unrealised fair value adjustment amounts to 6,9 mDKK which is in line with the expectations for the year. During 2022, the Arla Group restructured its internal interest rate hedging arrangements previously held centrally in Arla Foods Finance A/S. The restructuring was performed to simplify treasury operations and to create a more direct connection between interest bearing debt and hedging on a legal entity-by-entity level. The restructuring had no net effect on the income statement of Arla Foods Finance A/S, as the effect of closing the interest rate swaps held centrally in Arla Foods Finance A/S was allocated to the relevant group entities. The restructuring affected balance sheet and equity by -27 mDKK as the effect of closing the interest rate swaps held centrally in Arla Foods Finance A/S dissolved the hedging reserve and any derivative in the balance sheet as part of the allocation to the relevant group entities.