ERBER Group

Contents

ERBER Group Sustainability at ERBER Economic aspects Ecological and environmental aspects Social aspects Audit report GRI content index 10 24 34 42 52 66 67

Turnover (in millions of euros) for fi scal years:

Region FY17 FY18 Change

N. America

S. America

EMA *

Asia 31.7 32.6 3.01% 62.4 67.1 7.50% 113.7 115.6 14.67% 120.6 120.0 -0.51%

* Europe and Africa

Kansas City & Newark

San Antonio

Campinas & Piracicaba Getzersdorf & Tulln

ERBER Group  102-1, 102-2, 102-3, 102-4, 102-5, 102-6, 102-7, 102-10, 102-18, 102-45, 102-48, 102-49

ERBER Group is a leading group of companies in the fi eld of food and feed safety, focusing on natural feed additives, feed and food analysis, and biotechnological plant/crop protection with headquarters in Getzersdorf, Lower Austria. It generated a turnover of more than 330 million euros in the 2018 fi scal year. Important factors for ERBER Group’s successful annual growth include its international focus and the organization’s own research and development.

ERBER Group consists of BIOMIN, ROMER LABS, SANPHAR and EFB (ERBER Future Business). We see ourselves as an expert organization and global market leader in our initial core business of mycotoxin risk management.

Distribution partners included, ERBER Group is represented by approximately 1,400 employees in over 140 countries – of which 38 have their own business units. The largest business units outside of Austria are in Brazil, the U.S., Singapore and China.

Changes during the reporting period: In August 2018, our fermentation facility in Piracicaba (Brazil) was acquired by the Canadian company Lallemand.

One year prior to the acquisition mentioned above, in November 2017, our former BIOMIN sales partner INUSA was acquired in Mexico to strengthen our dedication to the Latin American market. This also included the strategic decision to open a new ERBER Biotech Hub in Guadalajara, Mexico. The Hub is home to BIOMIN, ROMER LABS and SANPHAR Mexico offi ces. This local presence also allows us to develop and improve our relationship with important decision-makers and research institutes.

In addition, we opened our new BIOMIN production site in Wuxi, China in October 2017. China is our largest potential single market. For us to be successful on this market, it is very important for us to be able to deliver and develop products locally. Sustainability is also becoming more and more important in China. This allows us to work on antibiotic-free feed solutions and, in doing so, to contribute to sustainable animal production.

Singapore

Our business units and markets 102-6

Business Units Distributors

Group & Research Campus Regional Business Units

Our organization’s high-performing research and development is the basis for solutions which are both customer-oriented and innovative. The companies that are part of ERBER Group are scientifi c pioneers in many areas around the globe, thanks to partnerships with more than 250 renowned laboratories, universities and research institutes.

Our research center in Tulln is the heart of our scientifi c activities. It is where our scientists develop new biochemical processes that ERBER Group uses as tools and a basis for innovative solutions for food and feed safety.

ERBER Group’s principles of success, which make our sustainability-based growth trajectory possible and are central to all of our actions, are innovation, internationalization and integration: innovation in our customers’ interest, internationalization to benefi t globally and integration for maximum performance in every division.

According to estimates, the world’s population will grow to nine billion in 2050. In order to feed all these people, various aspects need to be considered as a whole: protecting the environment, using natural resources effi ciently, cost eff ectiveness, quality, health and safety. It is only possible to harmonize these diff erent factors by using highly developed tools and methods. Here at ERBER Group, we are completely dedicated to making food and feed products in a healthy and sustainable way which ensures maximum effi ciency, quality and safety.

Our international growth and our success are based on a sustainable corporate culture that manifests itself in our happy, long-term relationships with customers, suppliers and business partners. The experience we have accumulated over the past 35 years has confi rmed that we should stick to this approach in the years to come as well.

1,372 employees FY18

Percentage according to gender

Men 55% Women 45%

Percentage according to region

EMA 53% Asia 27% S. America 14% N. America 6%

Ownership structure as of September 2018 102-5

Erich Erber Margarete Erber

22%

100%

San Pacific Investments Pte. Ltd.

21% 100%

San Venture Pte. Ltd.

30%

Barbara Erber

26%

Jakob Erber

100%

JE Invest GmbH

26%

Erber IT Service GmbH

49%

ERBER Aktiengesellschaft

Lukas Erber

26%

The company was founded in 1983, first as “ERBER KG” and then as “BIOMIN GmbH.” It was founded by Erich and Margarete Erber in Pottenbrunn, Lower Austria. It changed its name to ERBER AG on June 18, 1996; it continues to be 100% family-owned. The owners set up the organization so that it would succeed in the long term, and despite increasing internationalization, their belief in Austria’s appeal as a business location remains as strong as ever.

ERBER Group’s headquarters were built in Getzersdorf, Lower Austria in 2015, and in 2018 construction of the new ROMER LABS site in Tulln was completed. This site brings together research & development, production, quality control, the analytics service laboratory and

technical support. Additional expansions of ERBER Group’s facilities in Austria took place in September 2018, with the ribbon cutting ceremony for the new BIOMIN production site taking place in Haag am Hausruck, Upper Austria. This new site will produce natural, antibiotic-free mineral feed and premixes in the future. In doing so, this will ensure that supplies can be maintained in Europe, and it will also make international business expansions possible.

The Supervisory Board 102-18

Ing. Erich Erber, PhD h. c. Chairman of the Supervisory Board

Dr. Kurt Weinreich

Dr. Andrea Herbeck

DI Dr. Christoph Rauch

The ERBER AG Executive Board 102-18

Jan Vanbrabant, PhD Chairman of the Executive Board

Dr. Heinz Flatnitzer Head of HR, Corporate Communications & Group Operations

Mag. Rudolf Stelzhammer Head of Finance & Controlling Mag. Birgit Kuras

Dr. Christoph Amberger

ERBER Group companies

102-2, 102-6, 102-45

BIOMIN ROMER LABS

At BIOMIN we make use of all the scientific possibilities at our disposal to improve animals’ health and boost their performance naturally. We have been pioneers for more than 35 years and provide innovative solutions for mycotoxin risk management and gut health.

By using our own cutting-edge technologies, we manage to provide natural, sustainable and profitable solutions for livestock production in the fields of poultry, pig and ruminant breeding as well as aquaculture.

As a leader in the fields of animal nutrition and animal health, we develop and produce feed additives and premixes while offering services that can boost animals’ performance in an economically viable way.

For us to make use of scientific innovations and expertise, we need to recognize and understand our customers’ needs and concerns. This allows us to provide them with customized solutions that meet their individual needs.

BIOMIN is part of ERBER Group.

ROMER LABS is one of the world’s leading providers of diagnostic solutions for the food and feed industry. It operates four certified fullservice laboratories in Austria, Great Britain, the U.S. and Singapore.

By using the newest technologies in the fields of chromatography and immunoanalysis, our laboratories provide a wide range of innovative solutions and services for analyzing and detecting the presence of mycotoxins, food pathogens, food allergens, gluten, genetically modified organisms (GMOs), veterinary drug residues (VDRs) and other food contaminants as well as methods to determine the animal DNA in meat samples.

Our main goal at ROMER LABS is to provide scientifically substantiated, high-quality products and services in line with our motto: Making the World’s Food Safer ® .

ROMER LABS is part of ERBER Group.

SANPHAR

SANPHAR develops solutions for veterinary medicine to improve animal health in livestock production and aquacultures. Our main focus lies on disease prevention.

Our experts in animal health use their expertise and top-notch diagnostic services to recommend solutions in the areas of biosafety, prevention and therapy. This ensures that the animals are as healthy and productive as possible.

Environmental protection and sustainability are the most important values for the organization’s processes and products. Our global presence continues to grow, which is why we are represented in many Latin American (Brazil, Mexico) and Asian (Vietnam, Singapore) countries.

SANPHAR is part of ERBER Group.

EFB

EFB, ERBER Future Business, is our “in-house incubator” – an innovative, international ERBER Group business that specializes in biotechnology. EFB is the innovation hub that develops new projects which are part of ERBER Group’s strategic focus.

ERBER Future Business’s projects include everything from the first lab experiment to the product’s market launch; the latter is becoming more popular in its new areas of activity: vaccinations and enzymes.

Together with its subsidiaries BIO-FERM and ERBER Enzymes, EFB is also active in the field of biotechnological plant/crop protection, thanks to its wide range of innovative products. Additionally, it is also active in various fields which require the use of enzymes.

EFB is part of ERBER Group.

The power of innovation: We strive for constant improvement and maximum quality.

Our values 102-16

To work for ERBER Group means to leave traces that make the world a better place. Our culture: Pioneers–Partners–Performers. For us, “Leaving foodprints” means making a contribution to the feed and food industry that has an impact.

Pioneers Our passionate curiosity allows us to research and revolutionize safety and cost eff ectiveness in the food chain. We are second to none in the fi eld of mycotoxin risk management, and thanks to our top-performing teams and technology, we are on our way to becoming number 1 in other areas. Highly trained specialists who want to achieve real change are always welcome, and we also value them greatly - we are the best place for them to develop their skills further!

Partners We develop regional solutions for international food and feed issues. Our international teams are very diverse - both in terms of their expertise and who they are as people. By recruiting in individual regions, we generate added value for our stakeholders. What do we off er our employees? A great deal of trust, a lot of freedom to make decisions and managers who are authoritative without being authoritarian. This applies to everyone, regardless of whether they are in the lab, sales or production. Or whether they are in Austria, the U.S., Brazil or China.

Performers From research to customer service: Our teams continue to think about how they can make their topics and regional customer processes as great as possible. This is what has allowed us to provide eff ective products and services for over 35 years while drawing on nature and science equally. We are close to the market, develop products quickly, act consistently and, in doing so, our growth is above average – sustainable and forwardthinking.

We see our customers, suppliers and staff as partners. We maintain long-term relationships with them that are based on trust and hence productive. Every employee is responsible for the high quality of our products and services. We strive for ongoing improvements and innovation. This ensures the economic success of our customers and of ERBER Group. We boast international and process-oriented teamwork while respecting cultural differences. We treat all human beings with dignity and respect - regardless of age, gender, religion or nationality. We obey the law and comply with rules and regulations, which guarantees that our products and services meet the strictest legal requirements. We see it as our duty to follow ethical principles in all our actions. We protect our know-how and our trade secrets. We commit ourselves to using economic, environmental and social resources carefully and efficiently. We are doing our part to reduce global greenhouse gas emissions. We commit ourselves to the principles of ERBER Group’s Code of Conduct.

Our vision and mission

Innovation in our customers’ interests This mentality has been driving our actions since the beginning, and it is deeply rooted in our employees’ mindsets as well as in ERBER Group’s strategies. Our extensive in-house research and various collaborations with universities and research institutions from around the world are the basis on which we develop innovative solutions for our customers.

Internationalization for global gains The sales channels and business units of our subsidiaries appear in over 140 markets on all five continents (see the world map on page 10). An international presence and a strong desire to grow our brands and services resulted in sustainable market growth for ERBER Group which exceeded that of similar organizations in the industry.

Integration for maximum performance The interrelationship between every subsidiary ensures that every member of ERBER Group can actually conduct its daily business activities. ERBER Group has a clear “one-boss matrix” organization model with defined core processes: In a classic matrix, employees have two supervisors to report to: one in line management and one in process management. However, with the one-boss matrix organization model line management is always top priority, which makes it possible to make decisions clearly and quickly in cases of doubt. This ensures that even the smallest business unit is not “left alone”. As a result, it is possible to deliver efficient, solution-oriented products and services to any place and any customer in the world - whether it’s a feed mill, a farmer or a food producer.

Our corporate policy Our goal is to meet the expectations and requirements of our customers, business and research partners, employees, owners and suppliers, as well as to protect our environment. This entails cost effectiveness and sustainability that takes the following into account: quality, the environment, ethics, occupational health and safety as well as data protection.

Value creation: Fair and respectful business relationships are very important to us.

ERBER Group’s value creation chain 102-9, 102-10

Becoming more sustainable together ERBER Group’s business activities influence many parts of the food chain (growing crops for feed, livestock production, food production and sales) and the lives of many people (antibioticfree meat production, food analysis related to allergens and contaminants). We link our processes in such a way that they are in line with ERBER Group’s values (Pioneers, Partners, Performers) and use resources sparingly.

This also applies to a production chain’s sustainability. ERBER Group ensures it is able to deliver thanks to reliable partnerships. Systematic procedures, clear processes, proactive planning and the quality of our products give our customers the security they need to concentrate on their daily business.

Relevance & Impact Every company benefits from a good relationship with its suppliers. That’s why fair and respectful business relationships and closeness through personal points of contact are very important to us. As

an international organization, we promote and make use of relationships and partnerships on a local level wherever possible. It is important for us, particularly in sales, to provide our customers with contacts who know the region and its challenges well. The Group’s growth should benefit local business relationships and ensure job security, giving rise to long-term development in the region. We place a great deal of emphasis on constructive communication. This allows us to optimize processes and strengthen our relationships in a sustainable way.

Our cooperation with our suppliers is close and based on partnership, allowing us to maintain social and environmental standards along the entire production chain and to improve together.

ERBER Group works with a total of approximately 400 suppliers for production purposes. Every new supplier is evaluated in a multi-stage hiring process according to environmental and economic criteria.

Cooperation with more than 250 renowned laboratories and research institutes worldwide.

Registration (if applicable)

In addition, the 20 most important suppliers per production site – ERBER Group has 17 production sites worldwide – are assessed once a year. They are divided into the following categories: A, B, and C. This classification of our suppliers is based on essential criteria such as quality, total costs and timely deliveries. However, we also take sustainability and social considerations into account when assessing and commissioning them. Additionally, we also make sure that none of our suppliers have a sales share greater than a maximum of 30% in order to avoid mutual dependency.

Our value chain: There were no significant changes in the supply chain during the FY17/18 reporting period 102-10

Raw material procurement

Incoming goods inspection

Production & Packaging Quality standards: ISO 9001, ISO 14040, ISO 14001, HACCP, FAMIQS, GMP+, QS, etc.

Sales & Marketing Verifiable and correct information.

Outgoing goods inspection Inquiry to delivery: 12 hours.

Cooperation Thanks to our cooperation with more than 250 renowned laboratories, scientific and research institutes worldwide, we are pioneers on the global market in many fields. In addition to Europe, key countries are primarily the U.S., Vietnam, Thailand and Brazil. The partnerships that develop as a result of this cooperation inspire us to go beyond existing limits in the field of animal health and food production and to continue to work on the development of customer-oriented solutions. This research with a real-life focus is the basis of ERBER Group’s dedication.

Registration If there are plans to introduce a new product on the market, we need to receive authorization from the authorities in that country. When products have been approved for use in the entire EU, this means that they were also subject to a detailed evaluation using the highest standards for the effectiveness and safety of products.

Raw material procurement & Supply chain management Depending on the subsidiary, ERBER Group makes use of very different raw materials: examples include vitamins, yeast, probiotics, plant-based ingredients, enzymes, antibodies, carrier materials and bioactive substances.

For the most part, ERBER Group’s purchasing department is in charge of supply chain management for every subsidiary. It has defined standardized processes for the selection of suppliers and for procurement. These processes can be used to influence the social and environmental impact that occurs in the supply chain.

The valid purchasing conditions for potential suppliers are available on the websites of ERBER Group and all its subsidiaries. The following standard operating procedure (SOP) has been defined for the selection of new suppliers. It ensures that raw materials, suppliers and producers comply with feed safety standards in place at the site in which these raw materials are processed.

The first step is the supplier’s self-declaration. It serves as the basis for identification and selection as well as for evaluation. In addition to financial data, we request information related to environmental protection, such as the amount of CO 2 emissions per kg of produced commodity. Furthermore, we also evaluate whether the supplier in question has management systems for occupational health and safety and which specific admission, material and quality certifications it has.

During the next step, a potential supplier is requested to provide a sample of the commodity. ERBER Group’s quality management team then analyzes it to ensure it meets our own product specification requirements. Once the supplier has successfully passed this part of the process, the next supply steps then take place.

Incoming goods inspection Regular inspections of incoming goods by ERBER Group’s quality management team ensure that the goods being delivered meet our own production specifications.

Research: Research with a real-life focus is the basis of our dedication.

Production & Packaging Production and packaging is assured through regular monitoring which takes place in accordance with quality controls such as ISO 9001, ISO 14040, ISO 14001, HACCP, FAMIQS, GMP+, QS, etc.

Marketing & Sales Marketing requirements align with those of a country’s national authorities. We only provide verifiable and correct information. Due to differences in national authorization procedures, the availability of a product may vary from country to country.

Outgoing goods inspection Inquiry to delivery: 12 hours.

Logistics, Transport to customers Short transport distances and strict evaluations of our distributors and shipments are factors that are taken into account during the tendering process. ROMER LABS is already cooperating with a logistics partner for its exports so that it can make carbon-neutral deliveries.