ERBER Group Sustainability Report 2017/18

Sustainability report 2017/18

PIONEERS PARTNERS PERFORMERS

Leaving foodprints

ERBER at a glance

1983 Founding of the company

~ 1,400 employees worldwide

A business hub

Subsidiaries

Our headquarters are located in Getzersdorf, Lower Austria, represented in over 140 countries, in 38 business units, 17 production sites worldwide

BIOMIN ROMER LABS SANPHAR EFB

100% family-owned

Our core business antibiotic-free feed additives, feed and food analysis, research

52 different nationalities

CSR Since 2009, we have done more than 50 projects in 25 countries around the world

Research & Development

Our total carbon footprint

4.3% of turnover dedicated to R&D in 2018

115,500 [t CO2-equivalent] in FY18

Our organization

5

To our stakeholders!  102-1, 102-14

Dear Reader, It is my pleasure to present ERBER Group’s second comprehensive sustainability report.

This report was compiled in accordance with Global Reporting Initiative Standards (the GRI “Core” option) and makes it possible to compare the 2016/17 and 2017/18 fiscal years (a fiscal year is not the same as a calendar year). This comparison provides you with a more transparent and clearer overview of the changes and ongoing developments which have been taking place within the ERBER Group.

Jan Vanbrabant, PhD Chairman of the Executive Board ERBER AG

ERBER Group believes in using natural resources efficiently, which is also reflected in our corporate vision: to find innovative and sustainable solutions for the food and feed industry.

Focusing on profitability is an ever-growing trend in the food industry which poses serious challenges, and its influence on production-related conditions is becoming bigger. In turn, trends such as “animal welfare is the new organic” reflect end-consumers’ increas-ing demands for high quality. By offering our customers efficient and effective products, we support them in achieving quality while maintaining a successful presence on the market.

Furthermore, there are legal requirements and trends concerning sustainable agriculture and livestock breeding which also play an important role. For example, in Asia there was very little interest in restricting the use of antibiotics as growth promoters in animal feed a few years ago. In the meantime, attitudes there have changed significantly, and nowadays the situation is completely different. Some countries have already made the use of antibiotics as growth promoters illegal. The driving force behind this change cannot only be explained by legal requirements, it is also because of consumers becoming more active and aware of what they eat, consciously considering the impact their decisions have on them and, in the context of sustainability, on animal health and welfare.

We already set ambitious goals for the future in our first sustainability report. I am proud to tell you that ERBER Group has already implemented many of the planned measures, and we are already seeing the first signs of success. This is especially true of employee responsibility. After “Great Place to Work” conducted an international survey with our employees, we were able to implement many measures that made us an even more attractive employer. And they were able to confirm our attractiveness as an employer: “Great Place to Work” ranked ERBER Group fourth in the category “Large companies” in March 2018, confirming that we were one of the best employers in Austria in 2018. .

6 ERBER Group Sustainability report 2017/18

We also implemented many measures related to the environment on both a small and a large scale – the focus was on energy and the use of resources when planning and executing new construction projects. And now all of our Austrian sites use green energy.

We are planning additional environmental measures for the future, such as switching to renewable energy sources.

What hasn’t changed is our dedication, which is in line with our vision: “Leaving foodprints.” This means that we want to achieve a long-term balance between economic success, environmental protection and corporate social responsibility, allowing us to create a better world for us and our children.

ERBER Group’s relationship with important stakeholders serves as the basis for responsible economic activity and the ongoing development of activities in the name of sustainability. We see sustainability as an integral part of our organization’s history and our future. We have been working on ambitious sustainability goals for a long time now, and we are getting closer to reaching them every day.

The aim of this sustainability report is to provide a clear overview of our values and activities, as well as the goals we have already achieved, but also to give you honest and open communication about challenges we are facing and what we still need to address. Creating trust and transparency is our goal – as a basis for dialogue with our stakeholders!

As a globally-active organization, we are also dependent on the actions of international decision-makers and processes. This explains why we want to actively take on responsibility – with employees whose actions translate into results – in those areas we can influence directly. And we do! I am proud to be able to give you several examples of that. Additionally, I would like to extend a huge thank you to the employees who made this report possible.

I invite you to take a closer look at the following pages to get a better idea of ERBER Group’s projects and performance in the fiscal years 2017 and 2018.

Best wishes,

Jan Vanbrabant, PhD Chairman of the Executive Board ERBER AG Getzersdorf 2019

Introduction 7

About this report  102-1, 102-50, 102-51, 102-52, 102-53, 102-54, 102-56

If you have any questions, suggestions and/or feedback on the report, please contact Claudia Hajdinyak

This report is ERBER AG’s (hereinafter “ERBER Group”) second sustainability report*.

We have used it to present our activities, progress and goals related to sustainability.

Additionally, it also addresses topics where we see room for improvement and includes the measures being planned. Our goal is to provide you and all of our stakeholders with insight into ERBER Group’s business activities and to ensure transparency in terms of where we stand, what we are still working on and what we have already achieved with our partners.

This report was compiled in accordance with Global Reporting Initiative (GRI) standards, using the “Core” option. ERBER has disclosed information on its management approach and performance based on content and topics which have been set forth in the GRI guidelines concerning the content of reports. You will find the detailed materiality analysis on page 26.

Claudia Hajdinyak Head of Corporate Communications  102-53

claudia.hajdinyak@ erber-group.net Tel: +43 2782 803-0

The reporting period consists of the 2017 and 2018 fiscal years**. We plan to continue publishing the report once every two years. This means we will publish the next one in 2021. The report includes all of the entities that are part of ERBER Group’s financial consolidation. Unless indicated otherwise, the figures published in this report are based on data in the consolidated financial statement.

The report’s alignment with GRI standards and the plausibility of the data and information published therein has been reviewed and confirmed by denkstatt GmbH, an external organization independent of ERBER Group. ERBER Group’s Executive Board authorized the publication of this report.

We compiled this report with professional advice fromc7-consult e.u. (www.c7-consult.at). For a detailed overview of which GRI standards are included in our reporting and where the corresponding information can be found, please consult the GRI content index.

To ensure maximum readability and the use of gender-neutral language, this report uses the pronoun “they” where appropriate.

The report is available online at the following address: https://www.erber-group.net/en/our-responsibility/

* ERBER Group’s first sustainability report analyzed the 2015 and 2016 fiscal years and was published in June 2017. ** ERBER Group’s fiscal year lasts from October to September of the following year and is generally abbreviated as FY plus the number of the year in question. For example, the 2018 fiscal year, which lasted from October 1, 2017 to September 30, 2018, is referred to as FY18.

8 ERBER Group Sustainability report 2017/18

Contents ERBER Group

10

Sustainability at ERBER

24

Economic aspects

34

Ecological and environmental aspects

42

Social aspects

52

Audit report

66

GRI content index

67

Our organization

9

Turnover (in millions of euros) for fiscal years: Region

FY17

FY18

Change

N. America

31.7

32.6

3.01%

S. America

62.4

67.1

7.50%

EMA

113.7

115.6

14.67%

120.6

120.0

-0.51%

*

Asia

Kansas City & Newark

Getzersdorf & Tulln San Antonio

Campinas & Piracicaba

Europe and Africa

*

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 field 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 fiscal 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.

10 ERBER Group Sustainability report 2017/18

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 offices. 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.

Herzogenburg

Our business units and markets  102-6 Business Units Distributors Singapore

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 scientific 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 scientific 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 benefit globally and integration for maximum performance in every division.

Group & Research Campus Regional Business Units

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 efficiently, cost effectiveness, quality, health and safety. It is only possible to harmonize these different 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 efficiency, 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 confirmed 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%

Our organization

11

Ownership structure as of September 2018  102-5

Erich Erber

Margarete Erber

Barbara Erber

Jakob Erber

Lukas Erber

22%

26%

100%

26%

JE Invest GmbH

26%

100%

100%

San Pacific Investments Pte. Ltd.

San Venture Pte. Ltd.

Erber IT Service GmbH

21%

30%

49%

ERBER Aktiengesellschaft

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

12 ERBER Group Sustainability report 2017/18

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.

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 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.

14 ERBER Group Sustainability report 2017/18

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

EFB

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

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.

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.

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.

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.

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.

SANPHAR is part of ERBER Group.

EFB is part of ERBER Group.

Our organization

15

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 effectiveness in the food chain. We are second to none in the field 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!

16 ERBER Group Sustainability report 2017/18

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 offer 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 effective 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

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.

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 Our company 17

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.

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.

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

18 ERBER Group Sustainability report 2017/18

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)

Raw material procurement

Incoming goods inspection 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.

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.

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

Logistics, Transport to customers Our organization

19

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.

20 ERBER Group Sustainability report 2017/18

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.

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

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 CO2 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.

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.

Our organization

21

22 ERBER Group Sustainability report 2017/18

SUSTAINABLE GROWTH WITH RESPONSIBILITY We shape the future.

ERBER Group’s principles are based on sustainable strategies. We feel that it is our job to improve the efficiency and quality of feed and food safety.

Success is not the only thing that is important to us – we have a sustainable approach to topics such as health, food safety, the environment and society.

The strategic framework for these actions is based on the UN’s Sustainable Development Goals (SDGs) as well as its 2030 Agenda for Sustainable Development. The most important topics for this 2017/2018 sustainability report were identified with the help of our stakeholders; ERBER Group’s performance and goals were then set out in line with these topics. We chronicle our success stories, progress, future projects and goals in the ERBER Group sustainability report, which is published once every two years.

We are passionate Pioneers, Partners and Performers who leave foodprints to create a better world for us and our children.

Our organization

23

Sustainability at ERBER  102-18

ERBER Group has dedicated itself to achieving a long-term balance between economic success, protecting the environment and social responsibility.

ERBER Group’s sustainability management and organization is headed by the Executive Board with the support of the "Integrated Management System" and "Corporate Communications ". As The Sustainability sustainability is seen as an integral part of ERBER Team for the Group’s business activities, the subsidiaries’ chairs definition of ERBER of the executive board and their management are Group’s relevant in charge of it – various project teams work on stakeholders it different topics related to sustainability and are consists of the following members: key to executing these projects.

Claudia Hajdinyak, Head of Corporate Communications, is in charge of supervising and coordinating the report’s agenda. She is the second-in-command after the Executive Board with regard to organizing the sustainability report. The Management and the Executive Board are involved in all decisions. The Sustainability Team responsible for compiling the report consists of representatives from all of the relevant departments. The sustainability agenda is analyzed, developed further and implemented after undergoing regular monitoring processes to determine its suitability.

Dr. Heinz FLATNITZER Executive Board HR, Corporate Communications & Group Operations Dr. Eva Maria BINDER

Senior Vice President Research ERBER Group

Ferdinand HABSBURG, MBA

Head of Internal Audit ERBER Group

Claudia HAJDINYAK

Head of Corporate Communications ERBER Group

Cristian ILEA, MBA

Division Marketing Officer ROMER LABS

Mag. Herbert KNEISSL

Chief Marketing Officer ERBER Group

Michael FEHRER

Head Group Operations ERBER Group

Birgit LEITNER, MA

Employer Brand Manager ERBER Group

DI Franziska DORN

IMS Manager ERBER Group

24 ERBER Group Sustainability report 2017/18

When compiling this report, we noticed that we have already implemented many successful measures related to sustainability. What is still missing, however, is a clear strategic framework for ERBER Group’s sustainable development. Consequently, we have made it our goal to develop a sustainability strategy for the entire Group by 2021 and to entrench it with lasting effect.

The most important stakeholders

Customers & Suppliers Cooperation partners Owners, Executive Board, Supervisory Board Employees and their families CSR project partners Retail Politicians, Authorities & Lawmakers Media representatives Financial service providers

Stakeholder  102-40, 102-42, 102-43

Applicants (colleges, universities, etc.)

ERBER Group and its stakeholders are in contact with one another regularly.

ERBER Group’s stakeholders Responsible corporate governance is only possible when there is a dialogue with the organization’s stakeholders. Their valuable input allows us to understand the wants, needs and expectations of various interest groups – to ensure balanced reporting on sustainability and as a valuable source of input for ERBER Group’s actions as an organization. During its first meeting about this report, the Sustainability Team sat down together and selected and analyzed all of ERBER Group’s relevant stakeholders. This selection was based on the stakeholders’ influence on and interest in ERBER Group.

Various ways ERBER Group gets its stakeholders involved: In addition to personalized advice on the optimal use of our products, we also actively involve our customers in product and process decisions.

This strengthens their trust in our skills and our organization. This is based on customer events which involve experts. Examples include PROFOR (product forum) or the World Nutrition Forum, which takes place once every two years.

Scientists, customers and managers come together to discuss current developments. We also conduct international customer surveys online once every two years. They allow us to keep track of trends which are then used to determine and analyze specific fields of action.

Our regular online employee surveys (Great Place to Work), our annual ACAM (annual career assessment meeting) and face-to-face meetings with potential employees at job fairs round off the ongoing contact we have with our stakeholders.

In addition, ERBER Group keeps its stakeholders informed about what is currently going on in the organization. We communicate the news through our sustainability report, our website www.erber-group.net, social media, (Facebook, LinkedIn, Xing), balance sheet presentations, press releases and our newsletter.

Sustainable growth with responsibility 25

Relevance from a stakeholder perspective

Economic

1 Ensuring a forward-thinking approach

aspects

2 Anti-corruption

Environmental 3 Use of energy during production aspects

4 Use of resources during production and sales 5 Protecting the environment

Social

6 Employment and working conditions

aspects

7 Occupational health and safety 8 Education and training

Materiality analysis ďƒ 102-43, 102-46, 102-47

We used a three-step process to determine the most important topics to be addressed in this report with regard to our management approach and performance.

The first step entailed an analysis of the (upand downstream) value chains of each of our subsidiaries. The criterion used to select the topics we identified as relevant was their potential impact, both direct and indirect, on our business activities. Based on this analysis, we identified 23 topics and then linked them to the topics addressed in the GRI Standards (see the Transition list on page 70).

26 ERBER Group Sustainability report 2017/18

During the second step, we conducted an in-depth evaluation of these 23 topics. This evaluation entailed an international online survey for our stakeholders and a review of the individual topics by the ERBER Sustainability Team in terms of their environmental, economic and social impact.

We invited 200 people to participate in the stakeholder survey. The survey, which was available in three languages, was sent to customers, suppliers, employees, owners, members of the Supervisory Board, members of the Executive Board, media representatives and cooperation partners. The response rate was approximately 26%.

Anti-corruption

Education and training

Producer responsibility

Occupational health and safety

Research partnerships

Use of energy during production Ensuring a forward-thinking approach

Business relationships

Observance of human rights

Waste Data security

Employment and working conditions Protecting the environment

Market and innovation leadership

Food and feed safety Use of renewable energy sources

Living diversity Use of water and wastewater

Use of resources in production and sales

Local value creation Supplier assessments

Mobility and logistics

Social responsibility

ERBER Group’s impact Materiality matrix: The curve depicts the threshold for the implementation of targeted measures. This is the point separating those eight topics which are the core content of this report from the remaining key topics.

The analysis of the topics’ relevance by our stakeholders as well as the Sustainability Team’s analysis of ERBER’s impact are depicted in this materiality matrix. Please note that the results of individual stakeholder groups have been weighted equally and are thus taken into account for the final result.

The following eight topics are the result of a comprehensive materiality analysis and serve as the core content of this report.

During the third step, the Sustainability Team discussed the results and agreed on where the threshold for the implementation of targeted measures (shown as a curve in the materiality matrix) would be. On the one hand, the report had to contain at least two topics from the GRI’s three standard disclosure categories (economic, environmental, social aspects) and, on the other hand, it had to be in line with the GRI principle of materiality and not contain too many topics.

Environmental aspects:

Economic aspects: Ensuring a forward-thinking approach Anti-corruption

Use of energy during production Use of resources in production and sales Protecting the environment

Social aspects: Employment and working conditions Occupational health and safety Education and training

Sustainable growth with responsibility 27

How ERBER Group sets and sticks to its goals  103-3

ERBER Group defines strategic goals annually which are then used to plan our operations.

Our integrated management systems ensure clearly defined processes, ongoing monitoring and targeted implementation. To that end, ERBER Group has established a process system.

Correctly identifying these processes and how they relate to each other leads to results which continually optimize our activities within and outside the organization.

Six main processes, Research & Development, Sales & Production, Marketing & Sales and five staff functions, Integrated Management System/ Quality Management, Quality Control, Fusion & Acquisition, Corporate Communication and Internal Auditing report directly to the Executive Board.

The six main processes are divided into business processes that are accompanied by supporting processes.

This strategic planning comprises the description of the entire ERBER Group’s business activities with regard to scheduling and functional processing: Roadmaps are drawn up during this strategic planning phase.

These roadmaps govern the direction our business takes. The Executive Board meets regularly to discuss these individual steps so that the roadmaps’ requirements are fulfilled.

Thanks to a clear and regular reporting structure, it is possible to ensure that the necessary information is shared within the organization. ERBER AG’s Executive Board members report to the Supervisory Board on a quarterly basis.

M A N A GEMEN T P RO CES S General Management Staff Functions (STF) IMS/QM

Quality Control

Corporate Communications

Internal Audit

Group Strategy / M&A

B US I N ES S P RO CES S ES Research + Development (R+D)

Procurement + Production (P+P)

Sales + Marketing (S+M)

S U P P O RTI N G P RO CES S ES Finance + Controlling (F+C)

28 ERBER Group Sustainability report 2017/18

Human Resource Management (HRM)

Information, Communication, Technology (ICT)

ERBER Group’s integrated management system The integrated management system not only consists of quality measures, it also contains safety, health, environmental and ethical standards. In addition to fulfilling administrative and legal requirements, this system also meets our customers’ requirements. All of the requirements related to quality, safety, health, environmental and ethical standards are supplemented by and summarized in our ERBER Group organizational standards.

Quality – We boast a process-oriented quality

Thanks to annual audits, we are able to review our integrated management systems’ monitoring efficacy and keep improving them.

Internal Auditing and the in-house Integrated Management System auditors work together with various certification agencies, customers and authorities to ensure compliance with these standards. All colleagues in charge of monitoring the systems compile management reviews on a quarterly basis. These reviews are done to evaluate and ensure ongoing improvement of the integrated management system.

Occupational health and safety

management system to fulfill our predefined quality standards.

Environment – It is ERBER Group’s goal to

raise awareness about environmental topics such as reducing CO2, energy use and waste management. We urge all of our employees to get involved in these environment-related activities.

Using guidelines that are structured both within and outside of the organization, we wish to ensure the health, safety and well-being of all of our employees.

Ethics – We strive to improve our business

practices in terms of responsibility, sustainability and ethics while ensuring that our corporate values are being reflected in all of our activities.

ERBER Group certifications  103-3

ERBER Group is convinced that most of our success depends on ongoing improvements to our internal quality standards. Our customers’ trust is very important to us here at ERBER Group. When they make purchases, they trust that they will receive products and/or services they can rely on and that these products and services meet or even surpass their expectations.

What is the best way for us to maintain this trust in the quality of our products? We have implemented all the quality management systems that are relevant for our business with high-quality feed additives, diagnostic products and services, and they have also been certified by a third-party organization.

ISO 9001 CERTIFIED

ISO 14001 CERTIFIED

ISO 9001 provides the basis for additional standards specific to the industry that have been implemented across ERBER Group divisions.

Additionally, ERBER Group has implemented an environmental management system in Austria and Brazil which is based on ISO 14001.

ERBER Group organizes many events for customers worldwide.

Sustainability in practice is particularly important in that regard. This is why we have implemented ISO 20121 and have certification.

In the following paragraphs, we will list the additional certification standards specific to the industry by each division:

30 ERBER Group Sustainability report 2017/18

BIOMIN ERBER Group is aware of the fact that premium feed is a cornerstone of high-quality food.

This is why we’ve introduced the HACCP-System at our production H A C C P sites, so that we can guarantee the APPROVED quality assurance that our customers want. HACCP is the systematic approach used

by ERBER Group to ensure that we produce safe food. The role of the HACCP concept is to examine the dangers associated with food processing or ready-made products and to assess potential risks. When we are aware of all the factors that could cause contamination, we can then implement the necessary measures to eradicate these risks. The aim of the HACCP concept is to initially understand what the possible risks are and how they can be avoided.

Local and international quality standards for feed such as GMP+, FAMI-QS and QS guarantee the highest control and quality standards for all of ERBER Group’s (feed) products – from procuring raw materials to the finished product.

The pastus+ certification program is a quality assurance program whose aim is to implement unified quality criteria which surpass legal minimum standards.

This is to meet the requirements of certification programs in the food industry (e.g. the Austrian AMA-Gütesiegel) in a manner that is transparent at every step of the marketing process.

ABG (Austrian Bio Garantie) These products comply with the European Council Regulation (EC) No 834/2007 and implementing rules, as amended, as well as with the “organic production” directive, as amended, and their sales description indicates that they were produced organically.

A-Futter Quality assurance program for feed (Bavarian Product Standard for Feed Production). A-Futter is a safety system for compound feed. It is the basis of the "Geprüfte Qualität” [verified quality] program in Bavaria.

Farms which participate in the "Offene Stalltür” [literally translated as: “Open stable door”] program, are required to only use A-Futter certified feed.

FIAAA The Feed Ingredients & Additives Association of Australia is the national industrial organization that represents the suppliers of feed additives in Australia. This certification guarantees the quality of FIAAA members’ products.

Additional certification took place in line with ISO 14040 "Life Cycle ISO 14040 Assessment". By optimizing Approved Life Cycle Assessment feed conversion and improving livestock performance, it is possible to reduce greenhouse gas emissions in livestock production. For this reason, we have introduced a complete life cycle analysis in accordance with ISO 14040 and ISO 14044 to quantify the environmental impact our products have during their entire life cycle.

ROMER LABS ISO 17025 is the standard that has been implemented in all of our analytic service laboratories around the world. This standard determines the technological requirements of a testing laboratory, and it describes in detail how analytical service laboratories are to be managed to ensure high-quality results that are comparable internationally and use the most modern methods available.

Our SEDEX (Supplier Ethical Data Exchange) certification promotes a responsible supply chain.

The aim of a carbon neutral organization is that all processes N E U T R A L (employee activities and facilities) are carbon neutral: As an additional way to protect the environment, ROMER LABS offsets its greenhouse gas emissions.

SANPHAR Certified according to GMP (Good Manufacturing Practice) for veterinary products and additives. We have introduced the most advanced techniques during the production process to ensure the highest control and quality standards for our products – from the registration of raw materials to the finished product.

Sustainable growth with responsibility 31

32 ERBER Group Sustainability report 2017/18

ECONOMIC ASPECTS Cornerstones of our organization’s success.

Applied research is the basis for all of ERBER Group’s activities, and everyone benefits as a result: business partners, customers and end consumers.

We place a great deal of trust in valuable collaborations, promote scientific work and, at the same time, we develop state-of-the-art knowledge.

Sometimes it is in the long term, as many university graduates are now our valuable employees.

Our organization

33

Our good reputation is based on research and development  103-1, 103-2

Our company was founded in 1983 as ERBER KG and then it was known as BIOMIN GmbH. It has been operating as the ERBER AG holding company since 1996, continues to be family-owned, and is seen as an innovative world leader in the field of mycotoxin risk management. In FY18, with approximately 1,400 employees and a turnover of over 330 million euros, ERBER Group has grown. The original goal, the almost mechanical “double in five years” approach, was linked to a qualitative goal: to transform from a small mid-tier business into a global player and hidden champion.

34 ERBER Group Sustainability report 2017/18

To continue to remain competitive, maintain our innovation leadership and to continue to develop what we have achieved as well as our economic success, we invest in our employees’ education and training as well as in cutting-edge research labs and production facilities. For us to achieve the ambitious growth goals we have set out for ourselves, investing in research and development is essential. It is the basis of ERBER Group’s economic success.

To ensure a forward-thinking approach, it is also extremely important for ERBER Group to have a good reputation. ERBER Group espouses business activities based on integrity and which, from an ethical and a legal perspective, meet all applicable legal requirements. For this reason, ERBER Group developed and introduced a Code of Conduct in 2018; it can be found on our website. All employees have to adhere to it without exception, and in the future it will be integrated into the contracts we have with our business partners.

Research and Development: Around 170 scientists and developers are employed at our business sites worldwide.

Ensuring a forward-thinking approach  103-1, 103-2, 200

Research and development are key to ERBER Group’s success. We see ourselves as an organization of experts with around 170 scientists and developers at business units around the globe. Additionally, we cooperate with over 250 research institutes and universities worldwide. Our Campus Tulln, with its institutes of the Austrian University of Natural Resources and Life Sciences (BOKU), the Austrian University of Veterinary Medicine, Universities of Applied Sciences and the Austrian Institute of Technology (AIT), is our center of scientific research activities driven by international cooperation.

Every division has its own in-house research and development department (R&D) BIOMIN is a global technological leader in mycotoxin risk management, offering many innovative solutions for inactivating these fungal metabolites and supporting animal health sustainably with its products. An additional focus in its research and development activity

is to support the complex digestive system, which is the most significant barrier in terms of animals’ immune systems. Solutions such as probiotic or plant-based additives promote gut health and significantly reduce the number of interventions such as treatments with antibiotics.

ROMER offers testing and diagnostic services to analyze contaminants in food and feed; these include allergens, mycotoxins, pathogens, genetically modified organisms (GMOs) and residues of medicinal products. When developing new testing methods, we place a great deal of emphasis on sustainability and user protection. As a result, in the last four years we took an entire product line for analyzing mycotoxins and changed the extraction agents from organic to water-based materials.

SANPHAR specializes in biosafety as well as preventative and therapeutic products for animal health.

Economic aspects 35

Innovationskraft: Wir streben nach ständiger Verbesserung und maximaler Qualität.

EFB (ERBER Future Business) is investigating new approaches to food and feed safety and health. The focus of its research lies on developing new vaccinations and innovative enzyme-based solutions for food and feed.

4.3% of turnover dedicated to R&D in 2018

To maintain our position as a technological leader, we have set the goal of investing at least 4% of our annual turnover in research and development. In the past four years, it was between 3.9% and 4.3%. Research expenditures at BIOMIN alone have increased by 76% since 2015.

Research expenditures as a percentage of turnover:

~ 237

scientific publications per calendar year

FY14

FY 15

FY16

FY17

FY18

4.1%

3.9%

4.2%

4.3%

4.3%

To prove the efficiency of new products and to determine their safety and the mechanisms of actions, feeding trials take place in our feed centers (Center for Animal Nutrition – CAN).

Our “further development teams” conduct these trials in cooperation with universities and private testing facilities. We organized around 50 trials of this kind in 2018, of which 33 feeding trials took place in BIOMIN’s own testing centers.

36 ERBER Group Sustainability report 2017/18

Over 50,000 pieces of data on weight from approximately 13,000 animals were collected and more than 4,000 samples were sent for additional testing. At the same time, we refer back to laboratory testing models and focus a great deal on statistically safeguarded testing procedures to keep the number of feeding trials to a minimum.

In addition to supporting academic research by students, attending international conferences regularly is one of the cornerstones of our innovation network – the employees from the BIOMIN division alone attended a total of 115 international conferences in the 2017/2018 reporting years. Our position as an innovation leader is strengthened by publications in international scientific journals as well as through presentations and talks at international conferences. As a result, BIOMIN published a total of 476 scientific papers in the 2017 & 2018 calendar years.

Customer events, such as the World Nutrition Forum, which began in 2004 and has been Scientific papers (BIOMIN): Calendar year

2017

2018

Scientific papers

212

264

Innovation: Collaboration with over 250 research institutes and universities on the development of new products and services.

taking place once every two years ever since, serve as a platform for information exchange between internationally renowned scientists and experts from business, the industry and the authorities. The World Nutrition Forum is a scientific congress on agriculture, livestock production, animal health and nutrition, with around 800 guests attending presentations on each topic. Another such event is the Antibiotic Free Days, with over 300 participants.

Increase in the number of issued patents per calendar year::

A system for managing ideas and innovation, implemented globally as a database, gets all employees involved in designing and creating processes, services and products in an active and creative way. A total of 1,496 ideas were submitted during the reporting period; following an evaluation and review process, 476 ideas were implemented globally.

In 2018, nearly one third of all ERBER Group employees (29%) submitted at least one idea. Our goal is to have every ERBER Group employee submit one idea per fiscal year.

Examples of these projects include equipping testing centers with sensors, an app for predicting mycotoxin contaminants based on machine learning as well as the new omics technologies; thanks to DNA and RNA sequencing, they provide insight into the physiological metabolic processes in animals as well as the composition of and changes to gut flora. Large sets of biological data can be analyzed through bioinformatics technology.

We protect our know-how and use it to benefit as a business through intensive state-of-the-art research (approximately 180 experiments in 2018) and patents, among others. In 2018 alone ERBER Group received over 300 patents, with the number of patents increasing by around 9% every year.

Calendar year Patents

2016

2017

2018

6%

11%

9%

Our 4.0 projects touch on the future of agriculture, focusing on new technologies (big data, digitization).

300 In 2018 alone ERBER Group received over 300 patents

Galenic formulation deals with the newest technologies which allow us to transport the active ingredients we developed, so that their efficacy is not compromised, to the part of the livestock’s digestive tract where they are needed.

Economic aspects 37

Anti-corruption

 102-11, 103-1, 103-2, 205-2, 206-1, 307-1, 417-2, 417-3, 419-1

It is of the utmost importance to ERBER Group to maintain the good reputation it has built up in its markets and among its stakeholders over many years, and to protect its subsidiaries and brands from developing a negative image. This is why ERBER Group set up an Internal Auditing department in 2016. It is an integral part of ERBER Group’s corporate governance, aligning with the internationally applicable Code of Conduct applicable to this profession and taking all professional standards into account.

The Internal Audit department is in charge of identifying the risks that could prevent a company from achieving its goals and ensuring that Management is aware of these risks.

It also makes proactive recommendations on what improvements could reduce these risks. Management relies on Internal Audit to objectively determine and inspect the effectiveness and efficiency of corporate governance, risk management and control processes within the Group.

Internal Audit provides security with regard to corporate governance, risk management and control processes so that the company meets its strategic, operating, financial and compliance objectives. It is a catalyst when it comes to improving the company’s effectiveness and efficiency by inspecting and recommending measures based on analyses and reviews of data and business processes. It is dedicated to promoting integrity and accountability, doing its best to provide Management with objective reporting from an independent source.

During the reporting period, there were no violations in environmental law, labor law, anti-trust law, in social and economic matters, product designation, competition as well as marketing and communication.

38 ERBER Group Sustainability report 2017/18

It is ERBER Group’s goal to continue to have a perfect track record of no violations in these areas.

The Code of Conduct & Whistleblowing System In 2018, the Executive Board and the Supervisory Board drew up a Business Code of Conduct which is applicable for the entire ERBER Group and its subsidiaries. Owners, managers and employees are responsible for behaving in a manner which aligns with the Code of Conduct’s principles. It is a mandatory guideline and set of instructions which provides information on how ERBER Group employees are to act during dayto-day business interactions and includes rules on the following:

Fair and respectful treatment of one another Environmental protection, human resources, occupational health and safety Fair competition, donations and sponsoring Anti-corruption and preventing conflicts of interest Giving and receiving gifts and other gratuities The use of resources, information and social media Behavior and etiquette for ERBER Group employees Conflicts of interest, personal relationships at work

ERBER Group has a zero-tolerance policy with regard to corruption and bribery. It decisively counteracts all attempts at corruption in all of its divisions and in every country. This applies to all activities with business partners and authorities as well as activities within the Group.

Total number and percentage of members in the controlling body who know about the organization’s anticorruption rules and procedures.

Period

FY17

FY18

5

5

100

100

Number Percentage

Employees may not offer bribes and may not resort to intermediaries such as agents, consultants, sales partners or other business partners to take bribes. Both active and passive corruption, as well as bribery, is prohibited.

Every relationship with public officials must be strictly in accordance with the governing laws and provisions of the country whose laws and provisions are binding on such public officials.

Business-related and personal interests are to be strictly separated from one another.

Employees who witness illegal activities and violations of the Code of Conduct must report the incident to their supervisors immediately.

The report may be made in writing or verbally.

Supervisors are required to document the incident and submit a report.

To ensure that these ethical principles are also followed worldwide, a whistleblowing system was set up in addition to the Code of Conduct.

This system, known as "ERBER Speakout" , allows employees to report incidents via email, web platform, by telephone or mail.

The person reporting the incident can rest assured that they will remain anonymous. The purpose of this communication tool, managed

by KPMG, is to report illicit activities which may be subject to prosecution under criminal and corporate law.

In September 2018, 1,283 employees around the world (94% of all ERBER Group employees) were informed about the existence of the whistleblowing system and the Code of Conduct per email, through the database, electronic and hard copy versions of the employee newsletter as well as during local events (town hall meetings). The documents in question were made available to employees in German, English and Brazilian Portuguese.

By the end of FY18, the Code of Conduct was sent to leading employees and managers for verification. It is ERBER Group’s goal for the future to have 100% of employees confirm receipt of the Code of Conduct and to also have them read it. Internal audits will be used to verify whether employees actually read the Code of Conduct. These audits will be conducted on all levels: from management to the working area.

Anti-corruption measures were not introduced until FY18. Compulsory training courses are already being planned for managers in FY19.

These cours-es concern General Management, Sales, Purchasing, Finance and Research & Development.

For the members of the controlling body (ERBER AG’s Supervisory Board), there will be no additional training on anti-corruption measures.

Pursuant to the Austrian Corporation Act, one of the prerequisites for being appointed as a member of the Supervisory Board is knowledge of anti-corruption measures; additionally, this also presupposes personal ac-countability.

Therefore, we assume that the controlling body is 100% knowledgeable about the content of the Code of Conduct.

Our business partners can find the Code of Conduct on the ERBER Group website.

As a way to tackle corruption, ERBER Group’s goal is to have the Code of Conduct become an integral part of every new standard contract in the future and, when renewing these contracts, the parties will have to agree to adhere to it once again.

Economic aspects 39

40 ERBER Group Sustainability report 2017/18

ECOLOGY AND THE ENVIRONMENT Living, working and saving with nature.

Here at ERBER Group, we use a holistic approach to achieve our goal of consuming as little energy and as few resources as possible. Because economic growth and treating the environment with respect aren’t mutually exclusive. This is especially true when protecting the environment results in new innovation potential, solutions and products. We also want to show that we are Pioneers, Partners and Performers in terms of the environment, and we want to leave a “green foodprint” together.

Our organization

41

The environment: Economic growth can’t get in the way of treating our environment with respect.

In harmony with nature  103-1, 103-2

As a pioneer in our industry, ERBER Group is always looking for a sustainable approach.

ERBER Group’s integrated management systems focus on quality, job safety and security as well as protecting the environment.

For ERBER Group’s environmental protection as a company, it is particularly important for production and sales to use resources and energy efficiently. This is to help combat climate change and its repercussions and to minimize the amount of packaging materials from nonrenewable sources that are used.

So far we have implemented an environmental management system for ERBER Group in Austria and SANPHAR in Brazil that is certified according to ISO 14001. ERBER Group has conducted a Life Cycle Assessment according to ISO 14040 to quantify the impact of production (including administrative tasks) on the environment for the entire duration of products’ life cycles. This allows ERBER Group to identify how products pollute the environment and evaluate the tradeoff between the performance-enhancing effect of products

42 ERBER Group Sustainability report 2017/18

on animals and how to reduce CO2 equivalent emissions.

ERBER Group’s environmental concerns are also part of its corporate policy, for example, in Facility and Purchasing; in turn, they also have an impact on our business partners. All of our subsidiaries look for ways to reduce greenhouse gas emissions over the entire production chain.

Our measures include everything from holistic approaches, such as using fewer resources from non-renewable sources, to optimizing our processes on an individual basis.

We always work in line with the motto “Every little bit counts,” and we do everything we can to raise awareness about the environment among our employees and to motivate them to contribute their ideas. A good idea entails an unlimited amount of options: many little improvements add up and can result in a large contribution.

It is our goal to become carbon neutral, with regard to direct emissions (Scope 1), by 2023.

A conscientious attitude towards the use of energy and resources has already boosted our progress, and we continue to work on improving our environmental management system.

Use of resources in production and sales  103-1, 103-2, 301-1

Short transport distances, the efficient use of resources in our production facilities and strict evaluations of our distributors and shipments are factors that are taken into account during the tendering process. It is our goal to select suppliers and business partners who, like us, have committed themselves to doing business in an eco-friendly way. ROMER LABS and BIOMIN are already cooperating with a logistics partner for their exports so that deliveries are carbon neutral.

To reduce the use of resources in production and sales, we have made it our goal to use less plastic for our packaging materials and, by extension, to reduce the amount of material from non-renewable sources that is used.

Instead, we are using more cardboard – the percentage of packaging materials made of cardboard and paper was at 80% in FY18.

ERBER Group has also considered switching from single-use pallets to reusable pallets.

Due to the international framework which

applies to veterinary medicine in particular, (e.g.

ISPM, International Standards for Phytosanitary Measures, No. 15 “Regulation of Wood Packaging Material”), changes are currently impossible.

ERBER Group has already introduced measures locally. These measures concern reusing packaging materials: for example, our big bags are pressed into paper bales and reused this way. In addition to the positive environmental effect, this also entails an economic benefit: we do not incur any costs for disposal.

All of the materials ERBER Group uses (raw materials, auxiliary and processing materials, working materials, packaging materials) come from suppliers; we do not extract resources directly from nature, with the exception of raw materials. We don’t publish information on the raw materials we need to produce our products nor on the weight of processed raw materials, auxiliary and processing materials and working materials, as it is confidential. The performance indicators used refer to the specific use of packaging materials (in kg/t production) with reference to renewable and non-renewable packaging.

Ecology and the environment 43

Resources: We use a holistic approach to achieve our goal of consuming as little energy and as few resources as possible.

ERBER Group’s use of packaging material

Recyclable

Non-recyclable

Total

FY17

FY18

18.8

19.9 kg recyclable packaging/t production

5.0

23.8

5.0 kg non-recyclable packaging/t production 24.8 kg packaging/t production

In FY17 we used 23.8 kg of packaging material per ton of product; in FY18, it was 24.8 kg.

18.8 kg of the packaging material per ton of product in FY17 came from a renewable source.

In FY18, this changed to 19.9 kg of packaging material per ton of product from a renewable source. The amount of packaging from nonrenewable sources remained the same in FY17 and FY18: 5.0 kg per ton of product.

44 ERBER Group Sustainability report 2017/18

The use of energy in production  103-1, 103-2, 302-1

Total energy consumption within ERBER Group increased from FY17 to FY18 from 93,405 MWh to 118,349 MWh. This increase can be explained by higher production values as well as the new production site in Wuxi, China.

Additionally, increased production at the fermentation facility in Brazil resulted in more gas being consumed.

The data on energy consumption was collected when calculating our greenhouse gas “balance sheet.”

Between FY17 and FY18, we were able to increase the amount of electricity produced by our solar panel systems from 104 MWh to 126 MWh. ERBER Group’s goal is to increase the number of solar panel systems it uses around the world by 2020.

Energy consumption within the organization

FY17

FY18

a) Use of fuel within ERBER Group from non-renewable sources

[MWh]

8,466

10,077

b) Use of fuel within ERBER Group from renewable sources

[MWh]

70,845

93,465

c) Consumption within ERBER Group

[MWh]

93,405

118,349

Electricity consumption power grid

[MWh]

13,990

14,681

Electricity from renewable energy sources - our solar panel systems

[MWh]

104

126

Energy used for heating

[MWh]

79,311

103,542

Energy used for refrigeration

[MWh]

-

-

Steam used

[MWh]

-

-

[MWh]

-

-

Electricity

[MWh]

-

-

Heating

[MWh]

-

-

Refrigeration

[MWh]

-

-

Steam

[MWh]

-

-

[MWh]

93,405

118,349

d) Sales

e) Total amount of energy consumed within ERBER GROUP

Ecology and the environment 45

New buildings are built responsibly The new ROMER LABS building in Tulln, which was completed in July 2018 and moved into immediately, boasts a total floor area of 4,000 m2. It houses around 60 highly-skilled employees active in Research& Development, Production, Quality Control, Analytical Lab Services and Technical Support. As is the case with all of ERBER Group’s new Austrian sites, we paid close attention to the use of energy and resources here as well.

Since 2014, the buildings owned by ERBER Group which are part of all of the Austrian production sites use carbon-neutral electricity.

Part of the electricity consumed at our new site in Tulln will come from our solar panel systems, which is also true of the company headquarters in Getzersdorf. Calculations have shown that the use of solar panels (30 kWp) and a heating pump at the Tulln site can provide up to 5% of the energy needed for the site, and this energy is produced by us.

Furthermore, the new site in Tulln has a roof covered in greenery, energy-efficient controls through a building control system and shading controlled by light sensors and compass directions. Additionally, energy efficiency 46 ERBER Group Sustainability report 2017/18

was taken into account when purchasing lab equipment. We also use water-saving valves and sanitation facilities.

We will also strive to maintain these high standards for construction and renovation projects at ERBER Group sites in the future.

Examples include the new BIOMIN production site be-ing planned in Haag am Hausruck, Austria. It is expected to become operational at the beginning of 2020.

This site will produce natural, antibiotic-free mineral feed and premixes that will be used to improve the performance of pigs, poultry, dairy and beef cattle in a cost-effective way.

Protecting the environment  103-1, 103-2, 305-1, 305-2, 305-3

As mentioned in the first sustainability report in FY15/16, it is ERBER Group’s goal to become carbon neutral by 2023 (Scope 1).

We have been calculating our carbon footprint as a Group since 2015. This allows us to evaluate our processes: from the procurement of raw materials through transport to the factory door and in production. The results of this evaluation are measures which have been defined so we can continue to reduce our greenhouse gas emissions and be one step closer to achieving our goal of becoming carbon neutral.

Use of energy: The new ROMER LABS building in Tulln with around 60 employees stands for innovation and inspiration – we placed a great deal of emphasis on the use of energy and resources.

In FY18, production for the AgraQuant and AgraStrip Allergens product groups was moved from Great Britain to Austria, which was a valuable contribution to environmental protection: on the one hand, larger quantities can be delivered at once and, on the other hand, the distances for transporting the necessary production materials are shorter.

Additionally, it was possible to switch from air to ground transport. As a result of this group of measures alone, we were able to reduce our CO2 emissions from 41 t to 10 t.

Since 2011 BIOMIN has been calculating its greenhouse gas emissions; the entire ERBER Group began to do so in 2015. The emission factors for the CO2 equivalents were taken from the GEMIS database and include methane and nitrous oxide in addition to carbon dioxide.

According to an analysis of our processes and facilities conducted by Joanneum Research, measuring the presence of these three greenhouse gases accounts for at least 99% of all ERBER Group emissions which negatively impact the environment.

Greenhouse gas emission calculations (Scope 1 – Scope 3) have shown that they increased from 114,400 in FY17 to 115,500 [t CO2 equivalent] in FY18. This can be attributed to the following factors, among others: increased production volumes,

additional production facilities (Wuxi, China), new business sites. During the same period of time, biogenic CO2 emissions increased from 30,000 to 39,700 [t CO2 equivalent].

The gross volume of indirect, energy-related greenhouse gas emissions (Scope 2: Electricity) increased from 6,900 to 7,800 [t CO2 equivalent] between FY17 and FY18.

The gross volume of other indirect greenhouse gas emissions (Scope 3: Raw materials, packaging, paper and water) decreased from 104,100 to 103,500 [t CO2 equivalent] between FY17 and FY18.

Greenhouse gas emissions *)

FY17

FY18

t CO2 equivalent.

t CO2 equivalent

Scope 1

3,400

4,200

Scope 2

6,900

7,800

Scope 3

104,100

103,500

Total Scope 1-3

114,400

115,500

Biogenic emissions

30,000

39,700

*) The Scope 2 emissions for electricity consumption were calculated according to the market-based approach in Austria. Otherwise, the location-based approach was used. The Scope 3 emissions for electricity consumption are also included here.

The source of emission factors and the values used to calculate global warming potential (GWP) stem from IPCC 2013, in accordance with ISO 14044.

Ecology and the environment 47

Environmental impact: Feed additives have the potential to reduce CO2 emissions, which means our products reduce the negative impact on the environment along the entire value chain.

What we do to protect the environment The comprehensive analysis of the effect of greenhouse gases generated through the production process not only takes the production phase into account, but also the entire life cycle. In terms of animal nutrition, this means that not only the production of feed additives needs to be taken into account, their effects on animals’ health and performance must also be considered.

Feed additives have the potential to reduce CO2 emissions. By using BIOMIN products, it is possible to save up to 160 times as many CO2 equivalents that would be released during production, as a growth rate among livestock that is accelerated by 5% releases less CO2 and also less methane. This is how our productions reduce the negative impact on the environment along the entire value chain.

48 ERBER Group Sustainability report 2017/18

However, mobility is also an important factor for an international company, especially when it comes to air travel and company cars. We continue to assess the necessity of travelling and, wherever possible, we use video conferencing and conference calls. Another measure devised to protect the environment is that the costs of compensating business class flights are to be assigned to the cost center of the employee in question. The resulting figure is earmarked directly for the budget dedicated to new environmental protection measures.

In Austria, electric cars are already part and parcel of ERBER Group’s vehicle fleet. They are available for all employees who wish to carpool to and from work. You can “fill it up” at the company’s own EV charging station. In addition to the one at ERBER Group headquarters in Getzersdorf, there are also two EV charging stations at the newly opened ROMER LABS site in Tulln. The two stations have 5 charging points for cars, and the production site in Haag am Hausruck, which is still under construction, will also have two EV charging stations. In addition, the site in Tulln also has bicycle parking with a charging station for e-bikes.

As it is not always possible to switch to e-mobility, in the future employees will have the option of participating in driver training courses on the most environmentally friendly way to drive (how to save on gas).

We have also been focusing on sustainability in the field of event management: In that vein, BIOMIN became “green events” certified according to ISO 20121.

We are not only looking at large-scale measures, but also at small ones; for example, we are evaluating whether we can replace disposable materials used in our labs with materials made of glass. Sustainable initiatives are also being introduced at other international sites, one of which is the replacement of single-use dishes with reusable dishes in the U.S.

Upcycling – twice as sustainable!

ERBER Group has introduced a measure related to waste prevention: not everything has to end up in the garbage. For example, old advertising banners, flags and roll-up covers are reused by being recycled into zip-up bags, drawstring backpacks and laptop covers. These upcycling activities provide work for people who have been unemployed for a long time or who have trouble integrating into the regular labor market. The proceeds from these “new” products are entirely dedicated toward our current social development projects.

50 ERBER Group Sustainability report 2017/18

SOCIAL ASPECTS Thinking sustainably means finding food for thought together.

Only if the right people pursue a vision passionately will success automatically follow suit. ERBER Group’s employees find food for thought by following their hearts and their heads; they see the big picture and focus on their goals at the same time. Young and experienced employees from many different nations benefit from one another, and they all make important contributions with the future of our organization in mind. Therefore, we see it as our responsibility to provide high social standards and long-term opportunities for personal development which create a corporate culture that encourages everyone to join us in leaving their own “foodprint.”

Our organization

51

Team spirit: We work together happily to find the best solutions.

Our employees are our most valuable asset!  103-1, 103-2

ERBER Group’s consistent growth, rapidly increasing networking and digitization as well as a work environment subject to an ongoing transformation also means that ERBER Group’s HR department is encountering new tasks and challenges.

ERBER Group’s overarching goals include positioning ourselves as an attractive employer, using modern approaches to management and leadership, promoting an international environment as well as creating an optimal framework for a fair corporate culture with clearly defined values.

52 ERBER Group Sustainability report 2017/18

If you want to grow as a company, you need the most talented people: “Attract and retain the best in the right position” is the overarching motto when it comes to recruiting employees efficiently, employer branding in connection with that process, and personnel development.

At ERBER Group, we begin marketing to postsecondary institutions already during the training phase. Our focus lies on universities and vocational colleges relevant to our activities.

To be able to offer our employees the best working conditions possible, ERBER GROUP places a great deal of emphasis on activities and initiatives relating to employment and working conditions, education and training as well as occupational health and safety.

Employment and working conditions  401-1, 401-3

"Great Place to Work"employee survey Due to ERBER Group’s steady growth and the resulting need for well-trained, highly-talented employees, particularly in Research and Development, it is important to be an attractive employer and to be perceived as one. That not only makes it easier to find employees, it also makes it easier to retain them – because satisfied and motivated employees lower the company’s fluctuation rates, retain valuable know-how in the long term and are thus an important guarantor of our success as a company.

This is why employee satisfaction is an important key figure and also why we conduct surveys to determine this figure. For this reason, we conducted an employee survey for the first time in 2017. It was done in cooperation with Great Place to Work Austria GmbH, an external partner, and employees around the world could take the survey in one of 13 languages.

The participation rate of 86% was particularly

impressive. The result: 78% of employees are “very satisfied” or “satisfied” with ERBER Group as an employer. In addition to the pleasant work environment, other criteria which were mentioned as positive aspects include measures that promote healthy lifestyles, management’s trust in employees and the leeway employees have in terms of their actions, onboarding for new employees as well as the wide selection of training courses available.

The survey results were submitted to the “Best Employer in Austria” competition for the first time – ERBER Group made it into the ranking right away, placing 4th in the L Category (over 250 employees). This confirms that ERBER Group is one of Austria’s best employers.

Excellence: ERBER Group is one of Austria’s best employers: 4th place in the 250+ employees category.

Social aspects 53

The best possible working conditions: Open, modern and spacious rooms are the settings for our initiatives related to physical and mental well-being.

Global initiatives and implemented measures Since January 2018, project groups on every continent where ERBER Group is present have been addressing the constructive feedback from the employee survey. The following points are excerpts which highlight globally and regionally implemented initiatives: "ERBER World - Social Intranet“ is the new

digital communication platform. ERBER Group employees can find concise information all in one place about business divisions, processes, events, etc.

"Compensation Policy“ published (Policy

Database & ERBER World): It governs which parameters are used to make decisions pertaining to compensation – the respective consumer price index also plays a role in these decisions. This guarantees all employees receive compensation packages which are fair and in line with market conditions.

"Compensation Days Policy“ published (Policy

Database & ERBER World): It ensures that all supervisors authorize compensation days based on the same conditions.

"Group Regional Management Meeting

(GRMM)“: A Group RMM including all the divisions in the region was introduced; the GRMM takes place in the region at least once a year.

Europe A canteen was opened at the Research

Center in Tulln (AT). This topic was already addressed during our global employee survey in 2015.

Austria: A working group was commissioned

to work on “New World of Work” ideas (working hours, flexibility).

Introduction of a “Long Service Council” as a

platform for colleagues who have been with the company for 25 years or longer.

Asia Corporate Social Responsibility: "Food Drive“

– this charitable action involved collecting and distributing food to people who can’t afford it.

54 ERBER Group Sustainability report 2017/18

Group insurance for Asian business units:

Australia, New Zealand, Korea, the Philippines, Malaysia.

included here. Because our employees’ health is of the utmost importance and because of the program’s popularity, we will be introducing b.active events around the world.

Introduction/development of measures

related to staff loyalty, such as health talks, CSR, team building, an end-of-the-year party, more flexible office hours and sporting events (Singapore and other business units).

North America Introduction of “Lunch & Learns” – this

program allows employees and external experts to exchange information and ideas while having lunch together (ROMER US, BIOMIN US).

In addition, our “Consentive Employee Assistance Services” offer all employees and their families individual coaches in times of need. Free of charge and anonymous. This program was also introduced at our European sites; English-speaking coaches offer assistance either over the phone or through video conferencing. A similar system is already being offered in the U.S.

Dealing with the workload Physical and mental well-being is a prerequisite for our employees’ motivation and performance. This is why it is important for ERBER Group to actively help employees help themselves in staying healthy. This also ensures that employees can tackle their workload more easily, stay in good shape physically and mentally, and also prevent burnout. ERBER Group’s activity and leisure program “b.active” supports employees in that way. It is built on three pillars: Sports & Health, Events and Smart. For example, discounts for ERBER Group employees or information seminars are Social aspects 55

Work environment 'Leaving foodprints' is more than just a slogan.

It is how we live out our corporate culture and summarizes our promise to our employees: If you work for ERBER Group, you can shape the future, bring about important changes and make a contribution to feed and food safety.

These values stem from our corporate culture, which has grown over the course of more than 35 years.

ERBER Group pays careful attention to treating all employees and applicants fairly and re-spectfully. This is set out in our Code of Conduct, which is valid for all ERBER Group employees across the globe, and it is mandatory that they obey it.

We treat each other respectfully and with impeccable manners. The quality of the cooperation between managers and their staff as well as among fellow colleagues is decisive for our success as an organization.

We respect and appreciate diversity – this includes individual opinions and traits as well as our employees’ various geographic, cultural or religious backgrounds.

Employees on unpaid leave by region and gender*)

Coming back from a leave of absence It is very important for us to integrate employees after they return from a leave of absence. This is why we provide services which surpass legal requirements and are specific to a certain region. One example is “soft integration” through projects, cooperation programs with kindergartens and flexibility at work.

Our employees receive information about ERBER Group activities during their leave of absence through the employee newsletter. This allows them to stay abreast of what is happening in the company and maintains a certain emotional attachment. In addition, they are invited to the company Christmas party during their leave of absence; that way they can stay in contact with their colleagues. With the measures mentioned above, we want them to be reintegrated as easily and fully as possible. However, we do not have exact figures on how many employees have been reintegrated following a leave of absence to date. This can also be explained by the fact that absence periods will vary depending on the location and its legal provisions. In any event, ERBER Group is dedicated to completely reintegrating 100% of all employees following their leave of absence.

Asia

FY17

FY18

Female

3

3

Male

0

1

Total*)

3

4

29

32

EMA Female Male

4

5

Total

33

37

N-America Female

0

0

Male

0

0

Total

0

0

Female

0

2

Male

0

1

Total

0

3

S-America

*) includes all employees on leave (e.g. parental leave, sabbaticals, long-term sick leave, etc.)

The basics of successful recruiting We have equal respect for young and highly trained as well as older and highly experienced employees with a scientific standing and network. Because a good mix promotes innovation potential. We fill positions based on qualifications, not on quotas. A newly formed recruiting team which acts as a service provider within ERBER Group is in charge of ensuring equal opportunities for all applicants.

Every application is subject to a structured, homogenous recruiting process.

To make the initial application process and the administrative tasks surrounding individual applications easier, a new software was introduced: REXX Recruitment. The system allows all of ERBER Group’s recruiters and HR business partners to see all of the job openings and applications worldwide. This makes it easier to move interesting candidates from around the world from one recruiting project to another and, by extension, to set up a global talent pool.

All of the correspondence with applicants is done using the software. Furthermore, REXX Recruitment now gives employees the option of sharing all job advertisements on social media on their profiles; this allows them to reach even more potential candidates.

On average, our recruiters process 50 applications from around the world at a time. ERBER Group receives around 5,000 applications every year. Around 3,000 applicants are interviewed, and this results in 250 new employees being hired.

However, what is even more efficient than finding a new employee is to retain a good employee – one of ERBER Group’s goals is to keep fluctuation levels within a range of 8 – 10%. We will achieve this through employee development, flexibility, attractive working conditions and wages at the going rate. Plus our social and family-friendly incentives reinforce our position as an attractive employer. A winwin situation for everyone involved.

New employee hires and employee turnover  401-1

The calculations are based on the following figures Number of employees

FY17

FY18

Age structure according to hiring by ERBER Group Age

FY17

FY18

<30

43.3%

37.0%

51.8%

54.8%

4.9%

8.2%

100%

100%

Hires

284

303

30 – 50

Turnover

134

156

>50 Total

Rate of fluctuation*)

Recruitment rate**)

Gender

FY17

FY18

Gender

FY17

FY18

Female

8.2%

6.8%

Female

20.9%

19.7%

Male

10.2%

13.8%

Male

20.6%

24.9%

Total

9.4%

10.6%

Total

20.7%

22.5%

14.7%

8.5%

41.6%

36.5%

Age <30

Age <30

30 – 50

8.1%

11.1%

30 – 50

1.8%

19.8%

>50

7.2%

11.6%

>50

7.0%

12.6%

Total

9.4%

10.6%

Total

20.7%

22.5%

Region

Region

Asia

10.2%

10.5%

Asia

24.9%

23.7%

EMA

8.9%

5.8%

EMA

19.1%

19.5%

N-America

5.4%

11.7%

N-America

21.2%

32.6%

S-America

11.0%

28.8%

S-America

18.9%

27.1%

9.4%

10.6%

Total

20.7%

22.5%

Total

*) All employees who have left the company and had their positions filled (excluding retirements and fixed-term contracts). These figures are based on average values from the past 12 months. **) Figures available as of the reporting date are used to calculate the recruitment rate.

Our organization

57

Education and training: Our training programs are a win-win situation for employees and companies.

Education and training  103-1, 103-2, 404-1, 404-3

Training and knowledge transfer The success of our organization stands or falls by our employees’ qualifications, and we love to invest in them. This is because we know that we can only reach our goals and objectives as an organization with successful and well-educated teams. At the same time, our employees need to have the prospect of developing personally so that they want to stay with us in the long run.

Therefore, our education and training program is a win-win situation for employees and our organization.

The leadership of tomorrow It is a fact that managerial requirements continue to grow and the world’s complexity continues to increase – this has been confirmed by managers from every division. ERBER Group would like to provide a response to this by supporting the managers of the future. It relaunched its Leadership Academy in the fall of 2018, with a focus on managerial leadership development. During a one-year period, 20 managers are selected – from a variety of functions, divisions and regions – to take 58 ERBER Group Sustainability report 2017/18

part in the Leadership Academy.

Three in-class modules teach skills on “Passion + People = Profit” by using various methods and with support from HR and mentors. One of our goals is to ensure the organization grows with qualified managers and, in turn, to guarantee its success in the future. Furthermore, this promotes the idea of “being part of the Group” and encourages interdiscipli-nary exchange.

The course content is closely linked to processes within the company, and the real practice examples come from the organization; this was done systematically to put the focus on real-life applicability. The ERBER Group’s Leadership Academy provides our top talents with all the tools they need to be true Pioneers, Partners and Performers while on the job.

Learning in the future is digital More and more employees are using digital media on a daily basis to get information and to broaden their knowledge. With ERBER Online Academy’s new e-learning platform, our organization is also taking a modern approach to digitization and knowledge

Average hours of training per year  404-1

transfer. New course content is being created and supplemented through external offers. The platform allows learners to acquire knowledge at their own individual, optimal learning pace, and they can do so wherever and whenever is convenient for them. Systematic evaluations provide learners with immediate feedback on their performance. Online classes are offered in addition to classic in-house training courses.

360° Multi-SourceFeedback (MSF) This 360° feedback is an online survey offered three times a year (Q2, Q3, Q4). The entire process lasts four months. Select ERBER Group employees receive valuable feedback from their peers, colleagues and supervisors. It allows them to identify their strengths and areas for improvement; it is a form of self-reflection and thus an important part of personnel management. The target group for participation in the 360° program is, for example, employees who would like to take on other functions in the company.

FY17 Total days of training

FY18

2,366.2 2,317.6

Number of training days per employee

1.7

1.7

Male

1.2

1.5

Female

2.3

1.9

Managers

2.0

2.3

Employees

2.1

2.0

Workers

0.3

0.2

ACAM – the annual performance review

 404-3

The annual performance review (ACAM – Annual Career Assessment Meeting) takes place with every ERBER Group employee around the world. It is an important tool for every employee’s development. The ACAM is a standardized talk that is compulsory, and it includes extensive supporting documentation.

The ACAM consists of a performance review from the previous year as well as individual goals for the upcoming fiscal year agreed upon by the employee and their supervisor. This also includes a discussion of additional goals for personal development in connection with specific training and development measures. It is the goal of ERBER Group’s management team to have 100% of employees take part in the ACAM.

Social aspects 59

Occupational health and safety  103-1, 103-2, 403-1, 403-2

Our employees’ health and safety is a top priority. Our internal requirements are much higher than the already-strict legal provisions.

The staff in charge of occupational health and safety at our sites ensures that these requirements have been implemented within the entire ERBER Group. New employees undergo training on their first day of work; this provides them with

Number of accidents

an overview of all topics related to occupational health and safety. In addition to training courses specific to certain processes, employees are required to participate in a safety training course once a year. Every employee is provided with the necessary mandatory personal protective equipment. Our global incident report system enables us to evaluate every accident. In this field, we also attach importance to near misses, because only then can we ensure that we avoid accidents in the future.

 403-2 FY16

FY17

FY18

Total without near misses

29

23

26

Near misses

11

7

6

Work accidents

6

7

6

Minor accidents

23

16

20

3

7

9

95

90

302

3.28

3.91

11.62

Accidents to/from work Number of days resulting in days lost (minus accidents to/from work) Severity of accident (days lost/ number not including to/from work)

60 ERBER Group Sustainability report 2017/18

Our OH&S (Occupational Health and Safety) meetings for our laboratories and production areas are held on a quarterly basis in Austria; representatives from every department, including managerial representatives, take part. [for the labs: the Head of the Laboratory, safety officers, IMS (Integrated Management System), HR, Head of Operations; for production: the Head of Production, safety officers, IMS (Integrated Management System), HR, Head of Operations, Head of Production.] During

Occupational safety: Our employees’ health and safety is a top priority for us.

the meetings, participants discuss accident reports as well as current topics in the field of occupational safety. In turn, they draw up a report which is submitted to the Executive Board and the division managers). In addition, there is a video conference during every quarter with the Occupational Health and Safety officers from every production site around the world.

At the same time, regular audits and controls conducted by alternating internal investigators additionally ensure ongoing improvements for occupational safety issues.

Number of employees covered by OH&S meetings & video conferences  403-1 FY16

FY17

FY18

100%

100%

100%

It is our goal to have a safety officer employed at every ERBER Group site. This safety officer is to be in charge of employees’ occupational health and safety at that particular site.

Employees at the sites are required to participate in safety training courses regularly, at least once a year. For documentation purposes, this will be recorded in a database.

Our contribution to social justice and sustainable cooperation As a successful company, we endeavor to actively live values such as responsibility, community, respect, innovation and sustainability, and to prioritize them. We are convinced that a society with a future requires two things: entrepreneurial spirit and social awareness. In this vein, we support development projects worldwide: more than 50 social development projects in over 25 countries since 2009.

Our cooperation with MENSCHEN FÜR ANDERE – a Jesuit program for international development aid and disaster relief projects around the world – allowed us to help the poorest members of society. The focus lies on helping others help themselves in a sustainable manner. In modern usage, the word “sustainable” means that something lasts, exists or has an impact for a long time after being built, started or set in motion. In particular, from an environmental perspective, sustainability is associated with an aspiration to protect nature. In this way, the term becomes a symbol of a world in which economizing promotes opportunities for future generations, rather than reducing them.

62 ERBER Group Sustainability report 2017/18

Myanmar – from humanitarian aid to development projects Following a cyclone which claimed the lives of more than 150,000 people in Myanmar, we managed to create new homes for 120 farming families. As C. Amalraj, the head of the project, reports: “This partnership was created for the purpose of reestablishing livelihood. This includes creating community infrastructure, such as schools, barns, and streets. Families who lost everything received loans to help them.” The loans allowed the farmers to replant rice. Their harvests could be stored safely in the new storehouses before being sold on the market. The farmers came together to create cooperatives. What started out as humanitarian aid for a few families extended into more and more cooperation opportunities. The proceeds allowed the families in nine villages to build infrastructure and schools for the children.

Long-term cooperation: For the most part, we know our project partners personally, and we work together on development options over a longer period of time.

Lebanon – Women’s empowerment

Peru – village development

Together with the Jesuit Refugee Service (JRS), we are helping to support people fleeing their homes and alleviate the catastrophic living conditions in Lebanon. People from Syria are not really welcome in Lebanon. Many people see them as a threat to the country’s social balance and its labor market. It is women who maintain hope for the future in the tented villages. They are a special target group. They see the time in makeshift accommodation as an opportunity. Many of them learn to read and write in our programs. Having the option to talk about traumatic experiences made them into therapists for their children. Over 200 women completed vocational training courses in Beirut and in the Bekaa Valley. This is how together we create new starting points for life in the future.

We have been supporting seven villages close to Piura for four years. It all started with the creation of 13 cooperatives among 1,771 banana farmers in the region. These small-scale operations were brought up to a production standard which allows them to sell organic bananas internationally. They talk about the improved quality of life with joy: “By drilling wells, we were able to improve our access to water and water quality.” Many families have created their own gardens, and there are programs on health and nutrition for children.

Kindergartens and schools were renovated. 535 children under the age of five and 233 parents participated in the early childhood program.

Fourteen small businesses were founded: trading with laying hens, meat, baked goods, production and sale of fruit juices.

20 projects worldwide during the reporting period

Social aspects 63

64â&#x20AC;&#x192;ERBER Group Sustainability report 2017/18

COMMITTED TO SUSTAINABILITY TOGETHER

Our organization

65

ERBER AG Erber Campus 1 3131 Getzersdorf Austria

denkstatt GmbH Hietzinger Hauptstraße 28 1130 Wien office@denkstatt.at www.denkstatt.at

Independent auditor’s report

Phone: +43 1 7868900

Subject of the report Denkstatt GmbH, located at Hietzinger Hauptstrasse 28, 1130 Vienna was employed in its capacity as an independent consulting firm by ERBER AG, headquartered in 3131 Getzersdorf, to conduct a limited assurance engagement pertaining to the statements and data in the sustainability report 2017/18 (hereinafter: “the Report”) with regard to their compliance with the GRI Standards “Core” option (hereinafter: “the GRI Standards”).

Management’s responsibility ERBER AG’s management is responsible for the preparation of the Report in accordance with the GRI Standards.

Management is also responsible for the accuracy of the statements and data which appear therein. This also includes the design, implementation and maintenance of systems and processes which ensure that the state-ments and data which appear in the Report are free from material misstatement.

Independent auditor’s responsibility Our responsibility is to use our auditing method and the procedures to perform such limited assurance engagement to express our opinion on whether information has become known to us which gives rise to the assumption that the Report does not comply with the GRI Standards in all material respects.

Auditing method The limited assurance engagement comprised all entities that are part of ERBER Group’s consolidation. The preliminary audit reviewed the materiality analysis processes and stakeholder involvement with regard to adherence to GRI Standards criteria. The limited assurance engagement was conducted at ERBER AG’s headquarters in Getzersdorf and comprised the following material auditing procedures: the conducting of interviews with members of the Executive Board and company representatives of ERBER AG to gain insight into systems, processes and areas of responsibility, the examination of data management systems and the tracing of data points through random sampling from data entry to the consolidation at the Group level, the conducting of analytical auditing procedures at the Group level to review the completeness, precision and consistency of the reported statements and data, the review of the implementation of the key topics in the Report and the evaluation of the transition to the GRI Standards, the review of the application of the GRI Standards in reporting.

Opinion Based on our audit evidence, no facts or circumstances have been made known to us which lead us to assume that the Report is not in accordance with the GRI Standards “Core” option. Based on our audit evidence, no facts or circumstances have been made known to us which lead us to assume that the information and figures in the reporting are incorrect, or that the Report contains material misstatement. denkstatt GmbH

Mag. Karl Resel Head Auditor denkstatt GmbH Hietzinger Hauptstraße 28, A-1130 Wien | T (+43)1 786 89 00 | F (+43)1 786 89 00 15 | E office@denkstatt.at | W www.denkstatt.at Unicredit Bank Austria IBAN AT191200024011542500 BIC BKAUATWW | Raiffeisenlandesbank NÖ-Wien AG IBAN AT443200000000661413 BIC RLNWATWW | VAT ID number: ATU 63506833 Commercial register code: FN294077t, Commercial Court Vienna

66 ERBER Group Sustainability report 2017/18

GRI content index “in accordance” with the Core option

All information refers to the 2016 version of the GRI Standards

Code

Standard Disclosures

102

General Disclosures

Page

Omissions/Comment

Organization profile 102-1

Name of the organization

6, 8, 10

102-2

Activities, brands, products, and services

10, 14–15

102-3

Location of headquarters

10

102-4

Location of operations

10, 11

102-5

Ownership and legal form

12

102-6

Markets served

10, 11, 14–15

102-7

Scale of the organization

10, 11

102-8

Information on employees and other workers

72, 73

102-9

Supply chain

18–21

102-10

Significant changes to the organization and its supply chain

10, 19

102-11

Precautionary Principle or approach

26–27, 38

102-12

External initiatives

Currently none

Membership in associations

ERBER Group and its employees are members of many associations and common interest groups in the fields of feed and food safety, research, and animal nutrition. These memberships are mostly personal and are not listed in this report for data protection reasons.

102-13

All ERBER Group products and services are approved for the markets served.

All other business figures cannot be displayed for confidentiality reasons.

Strategy 102-14

Statement from senior decision-maker

6

Ethics and integrity 102-16

Values, principles, standards, and norms of behavior

16–17

Corporate governance 102-18

Governance structure

13, 24

Stakeholder involvement 102-40

List of stakeholder groups

102-41

Collective bargaining agreements

102-42

Identifying and selecting stakeholders

25 100% in countries which legally require it (Brazil and Austria). In FY17 it was 53%, and in FY18 it was 50% of the total workforce.

25

GRI content index 67

Code

Standard Disclosures

Page

102-43

Approach to stakeholder engagement

25, 26

102-44

Omissions/Comment

Employees: opportunities for development, internal communication (strategy, transparency), equal opportunities, leadership, values, active participation Suppliers/customers: a great deal of trust in the quality and effectiveness of products, reliability, pricing policy, food safety, willingness to research

Key topics and concerns raised

Reporting practice 102-45

Entities included in the consolidated financial statements

10, 14–15

102-46

Defining report content and topic boundaries

26–27

102-47

List of material topics

26–27, 70

102-48

Restatements of information

10

102-49

Changes in reporting

10

102-50

Reporting period

8

102-51

Date of most recent report

8

102-52

Reporting cycle

8

102-53

Contact point for questions regarding this report

8

102-54

Claims of reporting in accordance with the GRI Standards

8

102-55

GRI content index

67

102-56

External assurance

8, 66

Code

Standard Disclosures

Page

Omissions/Comment

Key topic 200s series

Economic topics Ensuring a forward-thinking approach

103-1, 103-2, 103-3

Management approach

28–29, 34–35

Expenditures for research as a % of ERBER Group’s turnover

36

Ideas and innovation management

37

On average 1 idea per employee per year

205

Anti-corruption

103-1, 103-2, 103-3

Management approach

28–29, 38–39

205-2

Communication and training about anti-corruption policies and procedures

38–39

No figures available, as it was only introduced in September 2018. Data will be supplemented in the next report.

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

38–39

No known cases during the reporting period.

307-1

Non-compliance with environmental laws and regulations

38–39

No known cases during the reporting period.

417-2

Incidents of non-compliance concerning product and service information and labeling

38–39

No known cases during the reporting period.

68 ERBER Group Sustainability report 2017/18

Code

Standard Disclosures

Page

417-3

Incidents of non-compliance concerning marketing communications

38–39

419-1

Non-compliance with laws and regulations in the social and economic area

38–39

300s series

Environmental topics

301

Raw Materials

103-1, 103-2, 103-3

Management approach

28–29, 43–44

301-1

Materials used by weight or volume

43–44

302

Energy

103-1, 103-2, 103-3

Management approach

28–29, 44

302-1

Energy consumption within the organization

44–45

305

Emissions / Climate protection

103-1, 103-2, 103-3

Management approach

28–29, 46–47

305-1

Direct (Scope 1) GHG emissions

46–49

305-2

Energy indirect (Scope 2) GHG emissions

46–49

305-3

Other indirect (Scope 3) GHG emissions

46–49

400s series

Social topics

401

Employment

103-1, 103-2, 103-3

Management approach

28–29, 52

401-1

New employee hires and employee turnover

57

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

403

Occupational health and safety

103-1, 103-2, 103-3

Management approach

28–29, 52, 60

403-1

Workers representation in formal joint management worker health and safety committees

60–61

Omissions/Comment

Only packaging is documented, as competitors could draw conclusions about ERBER’s activities and, for competition reasons, this is confidential information.

The market-based approach was not used.

It will be supplemented in the next report.

The emissions created from the electricity generated in the power plant were included in our Scope 2 calculation. The Scope 3 emissions from electricity consumption are also included here. It will be supplemented in the next report.

Retirements are currently not included; they will be included among the indicators in the next report.

There is no difference between full-time and part-time.

403-2

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

404

Education and training

103-1, 103-2, 103-3

Management approach

28–29, 52, 58

404-1

Average hours of training per year per employee

59

404-3

Percentage of employees receiving regular performance and career development reviews

59

60

There were no fatal work accidents during the reporting period. No cases of occupational diseases known. Employee accidents among third-party companies at ERBER Group sites are not included. The figures will be disclosed in the next report.

GRI content index 69

Transition list

ď&#x192; 102-47

Key topic Ensuring a forward-thinking approach

GRI Topic

GRI-Code

Differentiation

None

None

Within the company

Anti-corruption

205

Within the company, Upstream and downstream

Anti-competitive behavior

206

Upstream and downstream

Environmental compliance

307

Within the company

Marketing and labeling

417

Within the company

Socioeconomic compliance

419

Within the company

Use of energy during production

Energy

302

Within the company

Use of resources in production and sales

Raw materials

301

Within the company

Protecting the environment

Emissions

305

Within the company, Upstream and downstream

Employment & Working conditions

Employment & Working conditions

401

Within the company

Occupational health and safety

Occupational health and safety

403

Within the company

Education and training

Education and training

404

Within the company

Anti-corruption

70â&#x20AC;&#x192;ERBER Group Sustainability report 2017/18

Organization profile

 102-4, 102-45

ERBER Group BIOMIN BIOMIN EMA

BIOMIN AN AN EMA AN DE

ROMER

SANPHAR

ROMER Europe

SANPHAR LATAM

ROMER America

SANPHAR Asia

ROMER Asia

SANPHAR HQ Headquarter

EFB EFB BIOFERM

AN CZ

BIOMIN North America BIOMIN South America BIOMIN Asia

AN SK AN RO AN HR

ROMER HQ Headquarter

SANPHAR Brasil SANPHAR Latin SANPHAR MX

BIOMIN HQ Headquarter BIOMIN EMA, BIOMIN DE BIOMIN PL, BIOMIN HU BIOMIN LT, BIOMIN UK BIOMIN FR, BIOMIN UA BIOMIN RU, BIOMIN ZA BIOMIN TR BIOMIN AMERICA BIOMIN PA, BIOMIN MX BIOMIN CA, BIOMIN BRASIL

ROMER Diagnostic

SANPHAR CL

ROMER UK

SANPHAR Asia

ROMER UA

SANPHAR VN

ROMER DE

SANPHAR Holding

ROMER BR ROMER LABS ROMER Singapore ROMER MY ROMER CN ROMER Holding ROMER TECH

BIOMIN GT, BIOMIN AR BIOMIN EC BIOMIN SINGAPORE BIOMIN ID, BIOMIN KH BIOMIN MY, BIOMIN PH BIOMIN CN I, BIOMIN CN II CHENG AO, BIOMIN AU BIOMIN NZ, BIOMIN TH BIOMIN JP, BIOMIN KR BIOMIN VN, BIOMIN VN II BIOMIN Holding BIOMIN Phyto, BIOMIN TR

Organization profile 71

HR key figures The figures shown here are with reference to the entire Group. The figures are depicted as headcounts valid as of September 30, 2017 and September 30, 2018.

Total workforce according to duration of employment, region and gender FY17

Employed

Fixed-term employees

 102-8

FY18 On leave of

Total

Employed

absence

Fixed-term employees

On leave of

Total

absence

Asia

358

9

3

370

368

2

4

374

Female

127

6

3

136

135

1

3

139

Male

231

3

234

233

1

1

235

EMA

644

22

33

699

667

19

37

723

Female

310

10

29

349

325

9

32

366

Male

334

12

4

350

342

10

5

357

N. America

85

1

86

89

89

Female

51

51

56

56

Male

34

1

35

33

33

S. America

249

6

255

178

5

3

186

Female

55

5

60

57

2

2

61

Male

194

1

195

121

3

1

125

Total

1,336

38

1,410

1,302

26

44

1,372

36

Female

596

622

Male

814

750

Full-time

1,244

1,209

Part-time

166

163

72 ERBER Group Sustainability report 2017/18

Key figuresâ&#x20AC;&#x192;73

Legal notice Publisher: Erber AG, Erber Campus 1, 3131 Getzersdorf Concept and text: Claudia Hajdinyak, Head of Corporate Communications, Erber AG Layout: Roland Reisenberger, The Skills Group GmbH Photos: © ERBER Group, Getzersdorf; Shutterstock Inc. (S. 42) Technical advice: c7-consult e.u., Roland Fehringer, DI Harald Reisinger English translation: SMILE-Translations Organisation GmbH Print production: Riedeldruck GmbH, 2214 Auersthal 74 ERBER Group Sustainability report 2017/18

â&#x20AC;&#x192;75

ERBER Group Erber Campus 1 3131 Getzersdorf, Austria www.erber-group.net © 2019 ERBER AG Printed on Munken Kristall paper