CREATING THE FUTURE 2030 With Creating the Future 2030, we have defined a strategic vision for our long-term development. Being our customers’ preferred partner is central to our strategy. Therefore, we focus on developing concepts and solutions that strengthen our position as their preferred choice. At the same time, we have made significant investments in IT infrastructure and security as well as organisational development and initiatives that support the green transition. Since the beginning of the strategy period in 2022, the fundamental conditions for our business have changed. After a few years of more favourable market conditions due to extraordinary global demand and, consequently, rising prices, we have seen normalised price conditions across the food and energy divisions in 2024. In our main market, Germany, the economic slowdown is affecting both our physical builders’ merchants chain and energy business. And it has proven to be more difficult than anticipated to obtain profitable operations within new solutions, such as production of grass and insect protein. Therefore, we will sharpen our strategic focus with increased emphasis on streamlining, efficiency improvements and strategic prioritisation of the core business, just as we have an increased focus on tied-up capital in the financial area. The goal is to ensure a robust and resilient business that continues to create value for both our customers and owners, even under difficult conditions. A BALANCED APPROACH TO INVESTMENTS To ensure growth and development that supports the Group strategy, we work with a balanced investment stra- tegy. In the first part of the strategy period, large invest- ments have been made in solutions and technology that have the potential to contribute to the green transition. In light of the current market situation, we have adjusted our investment focus. We now prioritise investments that focus on optimising our core business to increase com- petitiveness and ensure value for owners and customers. GREEN TRANSITION REMAINS A PRIORITY Being an active partner for both customers and owners in the green transition is crucial for us to fulfil our ambition to be the customers’ preferred choice. So far, our investments in the green transition have been focused on new technology that has proven challenging to deploy and scale. Going forward, we will prioritise investments that are closer to our core business. This includes strengthening our data foundation to create increased value for both customers and owners, and promoting solutions with a strong connection to the core business, such as regenerative agriculture. With the Science Based Targets initiative as a framework, we continuously work to reduce our CO₂ emissions in scope 1, 2 and 3. These initiatives go hand in hand with optimising our operations so that green transition is not only a strategic goal, but also a path to efficiency and value creation. STREAMLINING AND DIGITALISATION AS A DRIVING FORCE To ensure our long-term success, it is important that we run our business wisely and efficiently. We focus on streamlining processes, optimising our cost structure and leveraging economies of scale. We also focus on simplification in the IT and digitalisation area. We are working on establishing a single business platform within our agricultural business as part of a general focus on simplifying and adapting our IT infrastructure, centralising where it makes sense. IT security remains a high priority. ENGAGEMENT AND LEADERSHIP AS THE KEY TO SUCCESS Our employees and their commitment are crucial for us to fulfil our strategic objectives, and we continuously work to strengthen engagement in the organisation. Our values – Trustworthy, Value-creating and Connected – are the guiding stars as we create a diverse and inclusive culture that fosters collaboration and innovation. We prioritise development to ensure our employees have the right skills to drive forward the business and by strengthening our Employer Brand, we will attract and retain those skills that will form the basis for our future success. 14 DLG ANNUAL REPORT 2024
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