2022 Versova Corporate Responsibility and Sustainability Report

CORPORATE RESPONSIBILITY AND SUSTAINABILITY

Welcome to the first sustainability report for the family of individual companies managed by Versova Management Company and combined in this report under one Versova banner. Together we are one of the largest egg producers in the U.S. and are dedicated to implementing and enhancing sustainable practices on our farms to ensure a better tomorrow for future generations.

Aggregated data from the Versova-managed family of companies is shared for sustainability reporting purposes only and includes results from the following farms:

Iowa Cage-free

Our Sustainability Commitment

Our robust values shape what we do each day, and our guiding principles focused on quality, compliance and continuous improvement are at the core of our culture of sustainability we are building within our operations. We know these commitments are important not only for our business, but for the customers who rely on us to provide a reliable, affordable and safe egg supply, and for the families who enjoy eggs on their tables each day.

LAYING THE FRAMEWORK FOR SUSTAINABILITY

Versova Management is a member of the U.S. Roundtable for Sustainable Poultry and Eggs (US-RSPE), a multistakeholder organization built to advance, support and communicate continuous improvement in sustainability for the value chain. In that role, we were an active participant in developing the first-ever sustainability reporting framework for the U.S. supply chains for chicken, turkey and eggs from producer to the final customer.

The US-RSPE Sustainability Framework outlines a voluntary process to measure sustainability centered on our people, planet and poultry. It intends to help equip the industry to better measure and communicate the overall sustainability of U.S. poultry and eggs. Versova utilizes the US-RSPE Sustainability Framework for benchmarking and sustainability measurements on our farms and representatives from Versova’s leadership team continue to provide ongoing counsel and insights about egg production and serve in key volunteer leadership positions within US-RSPE.

A Note from the President

Forty-five years ago, a group of Iowa farming families, including my family, started a small egg farm in rural Iowa. These families share core values and an entrepreneurial vision of the egg industry that continue to serve as the basis of our companies’ values and goals.

Today, our company looks vastly different than those humble beginnings as we now stand among the largest egg producers in the United States. As time and growth often dictate, the way the world views farming and food production today also has changed. Yet one thing remains a constant: how we arrived at this point – and how we will go forward – is rooted in a responsibility that has never wavered, but consistently evolved. Our sustainability report highlights our work as responsible, growthminded innovators who do what’s right for our people, our planet and our poultry. The values upheld by my father, and the work ethic he instilled in his boys as we grew up learning and performing all aspects of egg farming, are what ground us. And history has taught us, when the landscape changes, adapt, innovate, and demonstrate responsible stewardship at every turn.

There isn’t a company in America that’s not thinking or talking about sustainability and environmental stewardship right now. But as my father might say – don’t confuse thinking and talking with taking action.

Putting ideas into action is what has made the Versova-managed family of companies a respected national leader and innovator in egg production. This sustainability report is about our collective actions and measurable initiatives we’re demonstrating today and committing to improving upon in the days ahead.

JT Dean President

A Message from the Director of Sustainability

Although often solely tied to environmental stewardship, sustainability efforts at Versova Management encompass every aspect of our operations. We are not only determined but have made an unwavering commitment to continuously improve and innovate, and to leave our farms better for the next generation.

As the director of sustainability, this means operating our business with integrity, using our resources intentionally and efficiently, educating our team members and key audiences on our sustainable business practices, and making informed and deliberate decisions with team, environment, and hen welfare top of mind.

Versova’s commitment to sustainability was underscored with the creation of my position. The team has always been guided by the principles of stewardship, continuous improvement, quality and compliance, and execution, and it’s my responsibility to shape our sustainability efforts and ensure our everyday practices are aligned.

I joined the Versova team in 2021, following its acquisition of Willamette Egg Farms where I began my career in egg farming. I’m uniquely positioned to lead our sustainability efforts, as I have experience in nearly every aspect of farm and feed operations, including feed mill, pullet, production, and processing operations. I’m passionate about the land we farm on, the communities we live in, the people we employ and the hens we care for.

This report is the first of many. I’m proud of what our team has accomplished over the last year, however, the work toward a sustainable future is never complete. We are more focused than ever on creating data-driven approaches to establish baselines and properly measure and grow our sustainability efforts.

Thank you for your interest in our sustainability report; I am excited to continue this journey.

Emily Battilega Director of Sustainability

HOW WE OPERATE OUR GUIDING PRINCIPLES AND CORE VALUES

We integrate our guiding principles and core values into every aspect of our business, and our team lives our values and embraces the responsibility of working for one of the nation’s largest egg producers, providing an affordable, wholesome protein source to Americans and our business customers.

PEOPLE

From those who care for our flocks to the truck drivers who transport our eggs, and everyone in between, the team members at Versova are the foundation for our success. It is essential to nurture and grow our team and create a thriving working environment where everyone feels welcome and safe.

A career in egg farming means working to put a nutritious, high-quality food product on the tables of egg lovers every day, which is a responsibility we take seriously.

PEOPLE

OUR TEAM

Caring for our team and providing a positive, welcoming workplace with opportunities for professional advancement is imperative. We are a family of companies and a company of families –family is at the core of everything we do.

Versova’s managed farms employ 1,274 people representing more than 10 different ethnicities who work in a variety of live production, egg processing, maintenance, transportation, feed mill operations, management, and administrative positions on its farms.

SUPPORTING OUR TEAM

Rapid and sustained growth in agriculture means the long-term outlook for careers in food and farming is strong, and our leaders are focused on positioning Versova as an employer of choice.

In addition to steady, consistent hours and competitive wages, we are proud to offer an extensive benefits package to our employees, which includes:

• Tuition reimbursement

• Paid time off and paid holidays

• 401k retirement plan with

Total Number of Employees = 1,274 Female Employees Male Employees Not Specified = 364

CELEBRATING OUR TEAM

Recognition matters. We want every team member to know they are seen and feel appreciated. To recognize our employees, we host a week-long employee appreciation celebration, honoring the accomplishments and tenure of our team. In addition,

WOMEN AT VERSOVA EXCEL (WAVE)

Our WAVE (Women At Versova Excel) resource group offers specialized support for the women who work for the Versova family of farms. WAVE provides these women with tools and resources to grow in the workplace, their careers and their communities.

Since its inception, WAVE has brought team members together to offer professional development guest speakers and explore ways to enhance and promote diversity and equity within Versova. Most recently, the WAVE committee prompted improvements to the maternity leave policy – which now extends eight weeks of paid time off for women after the birth or placement of a child for bonding. The updated policy also grants new mothers extra paid time off after their maternity leave for unexpected events with their children, such as appointments.

In 2022, WAVE held its first retreat for the steering committee. Employees from across the country convened for a two-day event to reflect on progress made and plan for the future of WAVE. Members also networked with and learned from keynote speaker Emily Metz, president and CEO of the American Egg Board, who outlined her career journey and discussed overcoming barriers, while also giving advice for growing as a female leader in agriculture.

Kris Zahn is a senior manager of human resources at Centrum Valley Farms. Kris serves on the WAVE steering committee. She enjoys seeing the group work together to evoke meaningful change throughout the company and is especially proud to have played a role in updating the maternity leave policy.

We strive to help women become more engaged and hopeful about their personal and professional growth within the company and their community. WAVE is just one way we encourage our female team members to recognize opportunities to affect positive change.

Kris Zahn

-Kris Zahn, Senior Manager of HR, Centrum Valley Farms

TEAM SAFETY

Workplace safety is essential. A safe workplace is more efficient and productive, but more importantly is the assurance our team needs to help them be confident and at their best on the job.

Versova is committed to maintaining a safe work environment, including providing all necessary personal protective equipment (PPE) and tools to team members, conducting regular and routine safety trainings, and promptly responding to unsafe conditions or behaviors. Team members are responsible for performing all required tasks safely, utilizing all required PPE, and notifying management of any unsafe working conditions. We value each individual’s comfort level and prioritize proper training ahead of new job responsibilities or tasks to ensure our team members can safely and confidently fulfill what is asked of them.

Our safety performance is evaluated using DART (days away restricted time) and TRIR (total recordable injury rate) metrics.

The DART rate provides insight into the severity of work-related injuries and illnesses that cause employees to miss work, require restricted duties, or result in a job transfer, while the TRIR rate is a comprehensive measure accounts for the total number of recordable incidents within a specific timeframe per 100 full-time employees and helps evaluate the overall safety performance of a company.

We continue to build a culture of safety through education and communication. Our 12-person safety team, dedicated to the safety of all team members regardless of role or location, assures the company and team members are properly trained and held accountable for their actions. All site leaders and managers are required to attend weekly mandatory safety meetings with members of the safety team to review site accidents, violations, and other issues that can be addressed, reviewed, and acted upon.

Among our teams, we are fortunate to have volunteer safety team members who are trained emergency medical technicians (EMT) and volunteer firefighters. These essential team members are prepared to help in emergency situations on our farms and within our communities.

TECHNICAL TRAINING CENTER

The Technical Training Center (TTC) at Trillium Farms offers a professional environment conducive for learning. This space was transformed from a former processing space into a professional training lab and classroom to accommodate up to 18 people.

In 2022, the team partnered with C-TEC of Licking County, Ohio, a leader for adult education specializing in facility and manufacturing customized programs, to hold several classes for introduction to electricity and Arc Flash safety for C-TEC students.

During the spring HPAI outbreak, efforts were refocused to reduce biosecurity risk by moving new hire orientation and essential safety training to the TTC, as this remote location reduces the possibilities of cross contamination.

69 Employees

HAVE PARTICIPATED IN TRAININGS AT THE TECHNICAL TRAINING CENTER

HOW WE GIVE BACK

WE SUPPORT YOUTH AGRICULTURAL ORGANIZATIONS

We donate more than

3 MILLION EGGS ANNUALLY to local food pantries and community events across the country.

including 4-H and FFA across the company by making monetary donations, providing eggs for poultry judging events, and volunteering to judge local events and coaching students for contests.

$ 104,970

In 2022, the team raised for Ebenezer Mozambique Africa through the Center Fresh Golf Outing fundraiser.

$ 400,000

We have raised over for various charities since the inception of the Center Fresh Golf Outing in 2016.

Our leaders hold various volunteer roles with industry organizations, including:

PLANET

The agrarian model that long served as our country’s backbone no longer exists as it once did. Where most families previously had a hand in farming and raising food, today fewer farms are tasked with the critical role of raising the nation’s growing food supply needs on less land. It is a reality that demands a thoughtful and judicious approach to fulfilling a modern-day food supply.

That increased load to our land, water supply, energy consumption, manure management, and recycling efforts also has an impact on our planet. It is both an environmental challenge and a sustainable responsibility, but one that we embrace as we seek to lead by example.

PLANET

ENERGY CONSERVATION

Energy consumption is not only important for environmental sustainability, but also economic sustainability. Energy usage is perhaps one of the costliest elements of egg production, while being one of the easiest factors to reduce.

In 2022, our farms used a combined 139,001,815 kWh. This is a year-over-year increase of 86,827,169 compared to 2021, which can be attributed to the addition of two new farms. With our farm expansion, we experienced a 14% increase in egg production, while keeping our energy consumption increase at only 8%. We continue to convert farms to LED lighting and we have kept energy conservation in mind as new sites are being designed and constructed. As a company, we produced 5.3 dozen eggs per kilowatt hour on average for all farms in 2022.

LAND USE

Land is one of the most precious resources for egg production, as we are limited in the number of acres where we can site our farms, and our farms further rely on the cropland of grain farmers to source nutritious feed ingredients for our hens. In total, we require nearly 350,000 acres of land to produce the amount of corn and soybeans needed to feed our growing flocks.

To support local farm businesses and better utilize the resources in our communities, our seven feed mills accept 28,419,022 bushels of corn and 477,217,805 pounds of soybean meal from local farmers for use in feed.

139,292 ACRES

A total of 346,778 acres of corn and soy are needed for Versova hens. of corn were needed for all farms in 2022. of soybean were needed for all farms in 2022.

207,486 ACRES

WATER USE AND QUALITY

Water is essential for egg production - hen care and egg processing are the two largest contributors to water usage. Overall, our 2022 water usage increased compared to 2021 as a result of acquiring two new farms. Through our water recycling practices, egg wash water is land applied as crop irrigation at all Versova farms. in gallons of water

10 % INCREASE

by laying hens

TRILLIUM CASE STUDY

From 2021 to 2022, Trillium Farms was able to reduce its egg processing water usage by 36%. Water usage was tracked daily, and the data was consolidated and compared site-to-site, as well as month-to-month, providing usage trends. Through this process, the food safety and operations teams monitored spikes in water usage and worked together to investigate causes.

By understanding each site and comparing trends, the Trillium team was able to identify and make significant reductions in processing water usage.

36% Reduction

FROM 2021 TO 2022 FOR TRILLIUM FARMS PROCESSING WATER USAGE

WASTE

Even as our footprint grows through expansion of our farm operations, we have reduced our overall waste by 15% in 2022 compared to 2021. Our goal is to recycle materials in every area of our business. Whether through traditional recycling or recycling of nutrients through manure management, our teams work diligently towards a waste-free company.

308,073 Dozen

2,272 Tons OF WASTE FOR ALL FARMS, COMPARED TO 2,992 IN 2021

EGGS PRODUCED PER TON OF WASTE

Through our manure management system, our farms quickly and efficiently remove manure from hen houses and store the manure while it dries before recycling the manure as nutrient-dense fertilizer for local crop farmers. We supplied local farmers with 429,489 tons of fertilizer throughout Iowa, Ohio, Oregon and Washington.

Doug Mack

As chief operating officer for Versova Management, Doug is responsible for farm and food operations throughout the Versova-managed family of companies. He, along with the director of sustainability, leads the organization in seeking the most sustainable ways to produce safe, wholesome, and affordable food for consumers.

Guided by data, Doug and his team lean on Versova’s guiding principles of stewardship and continuous improvement to find ways to ensure food safety, hen welfare, and a sustainable cycle of interacting with the natural resources with which we are entrusted.

-Doug Mack, Chief Operating Officer, Versova Management

Our sustainability framework gives us structure and our scorecard provides us with a record of our performance. And with our data, we can make informed and strategic decisions that have immediate and ongoing impact across our family of farms.

Managing the health and well-being of our flocks is a complex endeavor, but also the central focus of our egg-laying operations. It requires prioritized attention be given to hen welfare, feed and nutrition, housing considerations, and environmental conditions to ensure optimal hen health.

As we deliver on our promise to provide the highest levels of care and well-being, our hens respond by producing safe, high-quality, wholesome eggs that our customers and consumers expect and enjoy from our family of farms.

POULTRY POULTRY

ANIMAL HEALTH AND WELFARE

The health and well-being of the animals in our care is our primary responsibility. The Versova team is continually adopting proven methods and enhanced standards to ensure our hens are given the best possible care.

Hens on Versova’s farms live in temperaturecontrolled barns, protected from predators and disease, with constant access to fresh, clean food and water. Flocks are monitored throughout the day by animal care teams and promptly treated by onstaff veterinarians when health concerns arise.

DEDICATION TO COMPLIANCE

While hen well-being has always been a priority for Versova, in 2021 the commitment was furthered through the unification of the compliance department, where the director of compliance leads a 30-person team whose job is to ensure that food safety and animal welfare practices are met. The team works with government and regulatory agencies to implement national quality assurance programs and continuously improves policies and procedures to help maintain and exceed compliance industry standards.

ADHERING TO INDUSTRY STANDARDS OF EXCELLENCE

FEED AND NUTRITION

To produce high-quality eggs, our hens require high-quality grains and feedstuffs. The feed and nutrition team at Versova is dedicated to optimizing the diets of our flocks to ensure proper nutrients and sustainable production. By increasing feed efficiency through nutritional improvements to each flock’s feed ration, we ensure hens of all ages and production levels are getting the exact nutrients they need to be as healthy and productive as possible. Improved nutrition means less feed is wasted.

To advance our sustainable hen nutrition efforts, the team has implemented ingredient and feed testing at the Versova Innovation Center. This allows further tracking of nutrient levels of ingredients to formulate each diet more precisely.

Dr. Stacey Roberts

Dr. Stacey Roberts, director of nutrition for Versova, is responsible for developing and implementing the nutrition program across all pullet and egg-layer systems. She works closely with the grain merchandising team for soybean meal and corn procurement and oversees orders of all feedstocks.

Dr. Robert’s role is essential for long-term sustainability on our farms. She ensures each flock has the exact nutrient profile needed for their age and stage of production each day, which includes the full complement of vitamins and trace minerals, along with macronutrients such as amino acids and energy.

Exogenous enzymes, such as phytase and carbohydrase, are included in the feeding program to help the hens digest and absorb more nutrients from the feed they consume and decrease the amount of nutrients excreted.

HEN HOUSING

Production methods and hen housing styles vary among our farms. Our hens live in a variety of environments, including traditional and cage-free housing, which helps our teams sustainably and efficiently care for our flocks. Regardless of the type of house they live in, our hens are given the same excellent care, including proper ventilation and comfortable temperatures, along with constant access to fresh food and water.

OUR CAGE-FREE PRODUCTION

THROUGH ACQUISITIONS IN 2021, VERSOVA-MANAGED FLOCKS

GREW 15% IN 2022

To meet the needs of customers and consumers, Versova is committed to being a leader in the expansion of our cage-free production. Of our more than 29 million hens company-wide, over 6.2 million hens currently live in cage-free barns. Our transitions align with our three main pillars of sustainability:

People: Facilities are designed to provide a safe working environment for our team and to enhance their workplace experience.

Planet: Barns are equipped with energy-efficient lighting and ventilation motors. We are also using land and water resources mindfully as we select our equipment, feed, and water systems.

Poultry: Aviary equipment, ventilation, feed, and water delivery systems are designed to meet or exceed the expectations of our certification entities and keep our hens healthy.

INVESTING IN CAGE-FREE EXPANSION

The USDA’s Agricultural Marketing Service estimates 66% of all egg-laying hens in the United States must be in cage-free production by 2026 to meet projected overall demand, and Versova is positioning our farms to respond. Our cage-free growth has been both intentional and strategic as we prepare for changing state laws and evolving customer and consumer demands.

Versova grew significantly in 2021 by adding two trusted, successful farms, which provided opportunities to shape the future of our cage-free business. Through the acquisition of a farm in Iowa, rebranded as Ovation Farms, and Willamette Egg Farms in Washington and Oregon, we added three million hens to our production, all of which will be in cage-free housing.

To serve our customers’ cage-free egg supply needs, we are deliberate in our plans to continue to convert to cage-free housing. We are proud to already have invested more than $750 million in the expansion and conversion of our cage-free operations. With new cage-free barns planned and under construction, our cage-free flock will nearly double in the next 2-3 years.

By investing in our cage-free operations, we are living up to our guiding principles of continuous improvement, execution, and quality and compliance.

Dr. Craig Rowles

As the general manager of cage-free production, Craig Rowles, DVM, is responsible for the design, construction, and operation of all cage-free facilities. By making smart investments in cage-free systems that are built-to-last, our facilities operate for a longer period of time with minimal repairs and maintenance.

Sustainability isn’t about just one goal. It is a blend of doing the right thing for the birds, the planet, and our people.

-Dr. Craig Rowles, General Manager of Cage-Free Production , Versova

BIOSECURITY AND DISEASE PREVENTION

On-farm disease prevention starts with robust biosecurity measures. Never has this been more important than in the past year, with a global outbreak of Highly Pathogenic Avian Influenza (HPAI). Through the mitigation of biosecurity hazards, and ongoing training in disease prevention protocols, our team ensures our flocks have a lower risk of disease and their health is protected.

Our farms follow strict biosecurity practices including:

• Restricting barn access to essential personnel

• Requiring essential personnel to shower in and use dedicated clothing inside the barn

• Prohibiting employees from having or handling birds off-site

• Prohibiting employees from visiting multiple farm sites in one day

• Requiring all trucks to go through wheel washes upon entering farm-site

Dr. Abbey Sindt

As our corporate veterinarian, Dr. Abbey Sindt oversees the health and welfare of nearly 30 million birds across the company’s farms in Iowa, Ohio, Oregon, and Washington. She works closely with the Versova compliance teams to improve and develop new biosecurity guidelines to help keep Versova’s flocks healthy. One of her primary focuses is teaching live production staff about how to recognize normal versus abnormal bird health and behavior, as well as reiterating the importance of carefully observing flocks every single day.

Education is vital. No one knows the flocks in our system better than the production managers and caretakers in the barns caring for these flocks every day. I am a resource for them to utilize if they see something that’s off, but to do so they must know what is normal.

-Dr. Abbey Sindt, Corporate Veterinarian , Versova

EGG SAFETY

Assuring the safety and quality of the foods we produce at Versova is one of the most important commitments we can make to our customers and consumers – and it is essential to maintaining their trust in us as a food producer.

Our farms participate in several national quality assurance programs and implement on-farm food safety practices to ensure the quality and safety of our eggs and egg products.

On Versova-managed farms, we:

• Follow U.S. Food and Drug Administration (FDA) Egg Safety Final Rule regulations

• Implement comprehensive on-farm biosecurity programs

• Practice Salmonella Enteriditis (SE) prevention methods

• Implement a Hazard Analysis and Critical Control Points (HACCP) program

• Maintain Safe Quality Food (SQF) Certification for egg grading locations

• Participate in USDA verification programs specific to their eggs and egg products

• Obtain regular third-party audits

EGG PRODUCTION

We take pride in being one of the top egg-producing companies in the U.S. In 2022, our farms produced nearly 8.5 billion wholesome, nutritious and safe eggs – which went to customers in restaurants, institutions and other foodservice businesses, and to consumers across the nation at retail and grocery stores.

This responsibility comes with the recognition that producing this high-quality, outstanding value protein source affords us the opportunity to take a leadership role in protecting our planet, caring for our hens and being an employer of choice.

VERSOVA INNOVATION CENTER

As Versova continues to expand its farming operations, we recognize the importance of deliberately improving and innovating within all divisions of our business. Our commitment to food safety and hen health is driven from the Versova Innovation Center in Ames, Iowa, a National Poultry Improvement Plan (NPIP) Laboratory. The work occurring in our Innovation Center ensures consistent compliance with all food safety regulations across our family of farms.

Specific testing in the lab ranges from food safety testing on the eggs to feed testing for the nutrition of the pullets and hens. Monitored testing for Versova’s vaccination program also happens under the direction of laboratory supervisor Marissa Gregory and is essential for ensuring hen health. Marissa’s work in the lab aligns closely with each of our farms, along with on-site nutrition and compliance teams, to verify egg safety standards are met and ensure flock health.

INNOVATING FOR A MORE SUSTAINABLE FUTURE

The Versova-managed family of companies is committed to leveraging innovation and technology to enhance sustainability outcomes and reduce our farms’ environmental impact. As such, we are dedicated to investing in and implementing a new data-driven system which incorporates information from nearly all departments and is key in evaluating our current business and creating measurable goals for the future. But we’re not stopping there. We are also pursuing innovative sustainability efforts that address our most challenging farm-based issues, while also creating additional revenue streams and rethinking and repurposing waste as a valued resource. In doing so, we have set a higher bar of sustainable practices at Versova - and for the egg industry as a whole.

Across our company, we are implementing the following programs:

• 3D Printing Technology: We have established a 3D printing lab at our Ohio location, servicing all Versova operations. We have found this technology to be instrumental with our animal welfare practices, as we are able to manufacture discontinued parts vital for barn operation. In-house manufacturing eliminates supply chain issues and shipping delays. Additionally, we are testing the printing of ferrous and non-ferrous stainless-steel parts, thus expanding our opportunities even further. This technology can reduce part costs by as much as 95% OEM.

• Manure to marketable fertilizer: At Centrum Valley Farms and Hawkeye Pride in Iowa, we are working with NuOrganics to convert the manure produced by our hens to highly marketable organic fertilizer in liquid and solid forms. In Ohio, we work with customers who are using precision agronomy practices for custom fertilizer application from our operations. We support their efforts as they map soil profiles and apply based on the field nutrient needs, thus using their resources most efficiently.

• Manure to energy: We are working on a manure management project with Ductor to separate liquid and solid byproducts from manure, create organic liquid nitrogen, produce natural gas and pelletized fertilizer products, and protect watersheds from the application of excess nutrients to farmland.

• Eggshell repurposing: We partner with Biova to repurpose eggshell membranes as dietary supplements, skin care and pet care ingredients. The technology being used on the farm separates the membrane from the eggshell where it can then be sent to Biova for further processing and packaging.

Along with our colleagues across the poultry and egg industry, Versova is committed to continuous sustainability improvement. As opportunities to advance our thinking and our programs are identified, we will enhance and advance practices on our farms as needed. It’s the responsible thing to do for our hens, our employees, our customers, and our business.