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Health through Nutrition

2009 Sustainability Report

Whats in this Report?


Table of Contents
Welcome and Background Welcome From the CEO Motivating Factors Novuss Background Sustainable Culture Sustainability in Practice Social Economic Environmental Quality of Life GRI Index Key Performance Indicators Appendix 24 37 58 66 68 70 74 01 02 03 12 16

Welcome
This report summarizes the past progress and future commitment of Novus International, Inc. to providing innovative solutions that will help feed the world affordable, wholesome food and achieve a higher quality of life. The earths population is increasing by 75 million people per year. In the next 40 years, its limited natural resources will have to bear the burden of feeding 3 billion people more than the global population of 6.6 billion today. The strain on the planets resources makes it imperative to protect quality of life by moving forward in ways that support global sustainability. Health through Nutrition is Novuss second sustainability report. The first report covered the 18-month period ending June 30, 2008, which complied with the Level C guidelines of the Global Reporting Initiative (GRI). This report covers the 12-month period ending December 31, 2009, with footnote data pertaining to the date range of July 1 to December 31, 2008. It fulfills the more rigorous Level B GRI guidelines. Going forward, Novus plans to publish a sustainability report on an annual basis.

GRI: 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.9, 3.10 and 3.11

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From the CEO


Dear Reader, As we worked to compile Health through Nutrition, I was reminded that it takes planning, time and thousands of small steps to make sustainable changes. I am proud of the efforts and enthusiasm that our global Novus team has shown by working together towards our sustainability goals. Novus is a participant in the farm-to-table nutrition continuum and because of this, we have a distinct responsibility to the communities we serve. Novuss Vision is To Help Feed the World Affordable, Wholesome Food and Achieve a Higher Quality of Life. Our performance as a company and our Vision are not separate each is connected inextricably with the other. This relationship is clearly expressed in the Novus triple bottom line: social, economic and environmental (SEE). The components of SEE comprise Health through Nutrition and are integrated into our business approach. Our activities and goals, as they relate to this triple bottom line, will continue to be shaped as we innovate, learn and collaborate. In this way, we intend to maintain our long-term commitment to Novuss sustainable culture and global Vision. During the reporting period for Health through Nutrition, the United Nations announced that by 2050 we will have to feed our world double the amount of food that we do today, using GRI: 1.1 nearly the same amount of arable land and water resources currently available. These astounding statistics highlight the relevance of establishing sustainable practices across the value chain of nutrition. Developing sustainable practices that will support the needs of our growing population, protect environmental resources and ensure the profitability of our customers are Novuss highest priorities. For our team at Novus, sustainability is a culture that begins on an individual level. We believe that innovation, education and collaboration will improve the quality of life for people around the world and ultimately, our business performance. Thank you for investing the time to get to know Novus a little better and to learn about the ways we are working to increase our positive impact on the world each day. This is our second sustainability report. We intend to measure our continuous improvement against this report and future reports each year. At Novus, we value transparency. In this spirit, I invite you to send any questions or comments that you may have about this report to sustainability@novusint.com. Sincerely,

Thad W. Simons President and Chief Executive Officer Novus International, Inc.
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Our Motivating Factors


Working within a framework of Core Values, Novus employees have collectively brought to market more than 100 new products over the past few years. This innovation and agility would not be possible without a culture that combines entrepreneurial thinking with organized structure and the motivating Vision to Help Feed the World Affordable, Wholesome Food and Achieve a Higher Quality of Life.
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Vision

To help feed the world affordable, wholesome food and achieve a higher quality of life.
Novus has a clearly defined Vision. Feeding the world over the next four decades will require producing more food than in the previous 4,000 years. Satisfying this increasing demand without straining, depleting or polluting the earths natural resources will continue to be a complex challenge. It will require innovative solutions in nutrition, combined with a solid commitment to global sustainability.

Mission

Make a clear difference in sustainably meeting the growing global need for nutrition and health.
Our core expertise and experience in health and nutritional research empower Novus to move toward our Mission. Together, our Vision and Mission form the solid bedrock that supports Health through Nutrition.

GRI: 1.2 and 3.13

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Core Values

Global sustainability is a fundamental imperative at Novus. It is the common denominator between our corporate Vision, Mission and Core Values.

As you read the first section of this report, Novuss Background and Sustainable Culture, please note the icons belowthey are meant to provide examples of how we integrate our Core Values into our work each day.

Seek excellence from every employee

Provide products with demonstrable value

Maximize long-term customer satisfaction

Protect our employees, the public and the environment

Act with integrity

GRI: 1.2, 3.13, 4.8 and 4.11

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Novuss Core Values bring our Vision and Mission to life. The Core Values define, in practical terms, how our 600-plus employees conduct business with each other, with customers and with other stakeholders. They guide all business strategies, plans and objectives. They shape our companys culture, which begins at the individual level and carries through to the marketplace.

We seek excellence from every employee. We encourage, expect and support alignment, diversity, individual growth, initiative and teamwork.

We strive to provide products with demonstrable value. Our research focuses on leading-edge concepts, and we are committed to supplying preferred products and services.

It is critical that we maximize longterm customer satisfaction. Whether related to products, services or innovation, we must always anticipate our customers needs and exceed their expectations.

We protect our employees, the public and the environment. Specifically, we make health, safety and environmental considerations a priority in everything we do.

We act with integrity. We treat all of our stakeholdersincluding employees, customers, suppliers, business partners, our owners and the publicin a fair and ethical manner.

These Core Values are of profound importance to each Novus employee. They are essential to the way we work each day and to Health through Nutrition.

GRI: 1.2, 2.8, 3.13, 4.8 and 4.11

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Critical Success Factors


Growth
Continually assess and develop our portfolio of products, customers and suppliers. Implement performanceenabling programs and technologies to achieve a long-term competitive position.

Each of the preceding Core Values affects the way we measure our progress in terms of our triple bottom line of social, economic and environmental (SEE) considerations. They also provide a basis for our four Critical Success Factorsgrowth, profitability, people and reputation. Novuss Critical Success Factors provide the framework for the way we set our business goals and align towards our long-term strategy.

Profitability
Implement improved business processes, measure and support systems that will move Novus closer to our customers and deliver increased yearover-year market value.

People
Provide an environment that enables employees to bring their full capabilities to bear with behaviors consistent with the Novus Management and Integrity Systems, in accordance with the Novus Mission, Vision and Core Values. Promote a safe and healthy work-life balance to motivate employees to achieve our Novus Three-Year Growth and Diversification efforts.

Reputation
Expand on our positive image by initiating and supporting activities and programs that demonstrate Novuss integrity and aspirations to meet corporate objectives in a responsible, sustainable manner.

Supporting Our Long-Term Strategy


Every Novus employee understands exactly what his or her key accountabilities are. Each person realizes that these key accountabilities have a direct effect on Novuss short-term corporate goals, three-year objectives, Critical Success Factors and ultimately, our long-term strategy. Every person plays a role. And every person has the opportunity and responsibility to make a critical contribution to the long-term success of our company.

Long-Term Strategy Critical Success Factors

Three-Year Objectives

Short-Term Corporate Goals

Individual Key Accountabilities

GRI: 1.2, 3.13, 4.9 and 4.10

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Our Triple Bottom Line


As you read the second section of this report, Novuss Sustainability in Practice, please note the icons belowthey are meant to provide examples of how we integrate sustainability into our work each day.

Social

Economic

Environmental

We measure our progress in terms of our triple bottom line: social, economic and environmental (SEE). The products we sell, the way in which we conduct business with stakeholders and our respect for the earths natural resources are all interconnected, integrated and equally important.

GRI: 1.2, 3.13 and 4.16

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Raindrop, Douglas Auer and Michael Hayes, 2009 Media: Glass Novus commissioned this piece for our global headquarters. It is made of blown glass spheres and volumetric flasks. The materials chosen and the forms created highlight the link between scientific development and the preservation of the natural world.

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Novuss Background and Sustainable Culture

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Novuss Background
Novus International, Inc. creates Health through Nutrition products for livestock, pets and people. Novus has employees working in over 90 countries, serving more than 2,500 customers worldwide. Based in St. Charles, Missouri, Novus has facilities including corporate offices, research and development laboratories and manufacturing operations in more than 35 countries, as well as smaller offices with field staff in an additional 60 countries. The organization has annual revenues approaching $1 billion. Based on Science Novus International, Inc. was founded in 1991, but our scientific roots and history originated over 50 years ago. In the 1950s, St. Louis, Missouri-based Monsanto Company began conducting livestock and poultry feed metabolism studies. In 1959, one of its products received FDA approval as an animal feed additive, which helped launch the Monsanto division that would become Novus. In 1991, in an effort to focus on its core businessesseed, herbicide and biotechnologyMonsanto sold its Feed Ingredients division to Mitsui & Co., Ltd. (www.mitsui.com) and Nippon Soda Co., Ltd. (www.nippon-soda.co.jp). The new owners saw Novuss strategic potential for growth. In our first year, we put into place the corporate Vision of helping to feed the GRI: 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8

Novus revolutionized poultry nutrition through the development of ALIMET, a liquid feed supplement.

world affordable, wholesome food. At the time, this Vision statement was considered a bold goal and some questioned how Novus could realistically make a contribution. We were a small, businessto-business company with two products for the poultry industry, but we understood that Novuss core knowledge of health and nutrition related to poultry could be beneficial to other species. Working from a strong base of scientific understanding, we have brought to market more than 100 new products over the past decade. Today the Novus product portfolio provides a holistic approach to Health through Nutrition for poultry, cattle, pigs, pets, farm-raised fish, horses and people.
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Working Closely with Our Customers Novus is committed to having a genuinely global reach. We connect with our customers at the local level, work with them in their own communities and understand their needs in a meaningful way. Novus customers have the unique experience of localized research and development, technical support, customer service and logistics. This commitment to working closely with our customers provides Novus with realtime, hands-on knowledge of current and future customer needs. We work with our customers to improve their business operations through increased productivity and profitability. Novuss Health through Nutrition programs support healthy, happy animals that are more productive and generate less waste, reducing their environmental impact. Additionally, Novus products protect the nutritional quality of feed and feed ingredients, which are farmers largest operational investments and most important tools for ensuring livestock health. The Importance of Agriculture Novuss history and largest market segment is based in livestock agriculture. The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. Meeting this need can only be achieved through the technological innovation of companies like Novus. GRI: 2.7 We are motivated to contribute to an agriculture industry that is equipped to provide nutritious, affordable food to people everywhere in the world and to do so through sustainable, responsible practices. Novus has a culture of sustainability that begins at the individual level and carries through to the marketplace. We approach our work through the lens of sustainability, and this is a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainability are achieved. The need for food is projected to grow by 100% over the next four decades. We have made great strides as an industry, developing strategies to improve productivity including crop, genetic and nutritional technologies. However, there is still much work that needs to be accomplished. For example, we are currently only achieving 60% of the genetic growth potential of broilers. Technology related to nutritional strategies and best management practices can close this gap. As the productivity of our industry increases, so does access to affordable, wholesome food.

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Health through Nutrition


Our products and programs offer Health through Nutrition. Every day, the collective efforts of our employees are focused on achieving a higher quality of life, for animals and people, through nutrition. Our heritage and core strength is science, which will always be the bedrock from which we continuously innovate. Today Novus employs over 150 scientists more than a quarter of our entire employee populationwho have attained a Ph.D. or Masters degree in animal science or a Doctorate of Veterinary Medicine. The dedication of these employees builds on our many years of experience in animal nutrition, and continually strengthens our core competence in scientific research and innovation. Novus scientists work in laboratories around the world, including Brazil, China, Vietnam and the United States. By establishing research facilities at the local level, where our customers live and work, we are able to better understand and serve their needs. Our entire organization is oriented towards collaborative innovation. Novus continually expands our global partnership network of universities, non-governmental organizations (NGOs) and industry associations. Through these relationships, we engage in joint research projects with students, professors and subject matter experts to adapt best-in-breed solutions for local challenges.

Slides, Julia Dibner, Cell Biologist and Photographer David Burt, Artistic Director, 2009 Media: Digital Photography Cells from the organs and bones of animals were prepared and stained for scientific analysis, then photographed microscopically. The artists then isolated forms and compositions present in the images, and cropped and manipulated the photographs to create a finished piece.

GRI: 2.7

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A Standard for Sustainability


Novuss first product defined a standard for sustainability for the more than 100 products that the company has since developed. ALIMET feed supplement was first introduced to the poultry industry by Monsanto in 1979. The product helped farmers feed their animals more efficiently, enabling them to raise healthier chickens while lowering feed costs. Thanks to ALIMET, farmers were more productive, more profitable and better able to provide the world with greater quantities of wholesome food at an affordable price. ALIMET also helps animals digest feed more efficiently, which has important benefits to the environment. Nitrogen, a chemical component in animal waste, is a pollutant to both land and water. Poultry fed ALIMET produce waste with lower nitrogen levels. ALIMET demonstrates that a leap forward in agricultural productivity can be achieved without increased strain on the environment. Additionally, as a liquid methionine source, ALIMET helps feed mills operate more efficiently, reducing energy requirements. The organic acid effect of ALIMET, particularly in combination with other organic acids, is successful in reducing harmful bacteria, such as Salmonella, in feed. Novuss nutrition solutions for the poultry industry resulted in dramatic productivity increases that are one of the great agricultural success stories of our time. In the next wave of innovation, Novus research scientists discovered ways to apply our companys core expertise in health and nutrition to other animal species and industry segments. They found ways that other animals could benefit from Novuss insights into poultry nutrition, leading to a range of products that bring Health through Nutrition to cattle, pigs and farm-raised fish. Our extensive experience with production livestock has proven to be equally important to improving the health of pets and their owners. Novuss Arenus division offers nutrition solutions for dogs, horses, ornamental fish and birds. Arenus delivers products through retail channels directly to pet-owner consumers, creating a business-to-consumer sales channel that supplements Novuss primary business-to-business sales model. Novus recognizes that many of the challenges faced in animal health and nutrition are similar to the challenges we face as humans, such as increasing bone strength, reducing joint-related lameness and building lean muscle mass. So we applied our core expertise to the area of human nutrition, and in 2009 launched Stratum Nutrition, which offers a range of specialty and functional ingredients to the food supplement, food and beverage industries. GRI: 2.7

Major Milestones
In 2009, we celebrated the 25th anniversary of ALIMET production at our facility in Chocolate Bayou, Texas, and the 50th anniversary of SANTOQUIN, the first feed additive approved by the FDA. These two livestock feed additives have helped improve animal health and enhance business operations for producers around the world for many decades. Over the last 25 years, we have grown the ALIMET production facility in Chocolate Bayou into the largest liquid methionine manufacturing plant in the world. SANTOQUIN helps farmers get the greatest return on their largest operating investments: feed and feed ingredients. SANTOQUIN protects feed from the damaging effects of oxidation, which is beneficial to animal health and to farmers sustained business operations. The quality of feed ingredients has a direct and measurable impact on the health of animals. Animals who are fed a quality diet, balanced with the proper levels of amino acids, have a lower incidence of health challenges and are more productive.

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Sustainable Culture
Novuss company culture of global sustainability is expressed through three basic principles:

Maximize Output, Minimize Waste Collaborate by Sharing Information Local Solutions for a Global Marketplace

When a holistic system functions at optimum efficiency, output is maximized and waste is minimized. Taking an integrated viewpoint is characteristic of a Novus-style solution. This point of view takes into consideration not only the intended result, but also the by-product of that result. As part of our culture, we strive to conduct our work in ways that minimize our environmental footprint. Novus products are geared towards maximizing output and minimizing waste. Leveraging a broad product portfolio, we take a comprehensive approach to optimizing the health of animals. This approach maximizes farmers outputs, fortifies livestock against disease and ultimately leads to the production of higher quality food. Novuss Health through Nutrition programs support healthy, happy animals who generate less waste for the environment and are more productive.

On June 3, 2009, the Governor of the State of Missouri, Jay Nixon, along with 450 other guests, participated in a ribbon release ceremony, commemorating the opening of Novuss Platinum LEED Certified global headquarters facility. Platinum LEED is the highest energy and environmental designation available in the U.S.

GRI: 2.7

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Sustainable Culture
At Novus, sustainability begins at the individual level and is evident in the daily activities of each employee. It is demonstrated in the way that employees put into practice our collective aspirations, Novuss Mission, Vision and Core Values.

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Collaborate by Sharing Information Novuss culture is shaped by the spirit of discovery and innovation on which our rich history is based. Our collaborative work style encourages the open flow of information among a community of colleagues who share common interests in scientific progress and improving the markets we serve. At Novus, a collaborative approach is also typical of our relationships with customers. We freely share our industry knowledge with customers in an open dialogue about their most important business challenges. We consult with them to develop innovative solutions that meet their specific needs. Our open culture is also reflected in the relationships we have developed with students and professors at universities around the world. We have something to learn from everyone and, in turn, we want to share all that we can. Our office and meeting spaces are open to encourage discussion and collaboration. People know each other on a first-name basis and respect one another as individuals. This sustainability report to stakeholders, Health through Nutrition, is another example of Novuss commitment to sharing information openly. Local Solutions for a Global Marketplace At Novus, we place a high priority on understanding our customers needs and believe that living and working in their specific geographies are key to building this knowledge. Additionally, we have found that working directly with our customers, globally, is a critical differentiator for Novus in our industry. For these reasons, we are committed to having a genuinely global reach. Novus customers have the unique experience of localized research and development, technical support, customer service and logistics. We understand that our customers needs vary based on their location in the world. Local resources enable us to provide support with agility and in a way that brings demonstrable value to our customers businesses.
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Chief Sustainability Officer Joyce Cacho, Ph.D.

This past year, we formalized our commitment to sustainability at Novus, adding the role of Chief Sustainability Officer. In January 2009, Novus welcomed Joyce Cacho, Ph.D. to coordinate and synergize our sustainability efforts. Cacho leads the planning and implementation of Novuss global corporate social responsibility program and initiatives. Her extensive background in managing international agribusiness initiatives and projects with The Corporate Council on Africa (CCA) and U.S. International University (USIU) have prepared her to lead Novuss sustainability efforts around the globe.

Corporate Governance Statement


Corporate governance at Novus is the responsibility of the Board of Directors. The Board represents the interests of our shareholders and stakeholders, including employees, customers and the public. The Board, with the advice of the executive management team, determines the companys long-term strategy, while the Novus management team defines the companys short-term strategies and handles day-to-day business operations. The Novus Integrity System In 1998, the Board approved and adopted the Novus Integrity System (NIS). The NIS is comprised of written policies to ensure that all employees understand that good ethics and good business are synonymous when viewed from moral, legal and practical standpoints. The NIS is reflective of the Boards commitment to corporate and personal integrity, and prompts every employee to conduct the business of Novus within an ethical framework. The Novus Compliance Committee In 2005, the Board chartered the Novus Compliance Committee (NCC), comprised of all members of Novuss senior management team as well as shareholder representatives. The purpose of the NCC is to review and evaluate compliance issues and concerns throughout the organization. It also focuses on prevention, detection, response and security and proposes actions for the continuous improvement of Novuss business management and operations. The matters within the scope of the NCCs review include all legal and regulatory matters that affect or may affect Novuss operations worldwide. It also oversees conformity by Novus with the requirements of organizations in which the company maintains memberships and with standards, policies or programs to which Novus subscribes. The NCC manages compliance issues and reports to the Board on a periodic basis.

GRI: 3.13, 4.1, 4.3, 4.4, 4.6, 4.8, 4.9 and 4.11

The Novus Board of Directors Meeting in Tokyo, Japan

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Novuss Global Headquarters


Our new 90,000 square-foot (8,361 square-meter) headquarters is Platinum LEED certified, the highest energy and environmental designation available in the United States. It is the fourth building in Missouri and one of only 150 in the entire United States to achieve this distinction. In recognition of our design and building efforts, in 2009, Novus President and CEO, Thad Simons, won the Heroes of the Planet award for Sustainable Employee Programs. This award recognizes the achievement of a company that has outperformed its industry in promoting and advancing environmental sustainability. The building has multiple skylights that provide an outdoor view and natural light to 90% of employee workspaces. The open floor plan is designed to encourage communication and collaboration among employees. A floor ventilation system allows employees to adjust the temperature of their personal workspaces. The facility includes a fitness center that is open to employees at no charge and also offers employees free fitness classes and training. The company allocates reserved parking spaces close to the building as an incentive for employees to carpool or to drive low-emission or fuel-efficient vehicles. Novus provides employees with wholesome, healthy lunches at no charge each day. Lunch menus for the Novus Caf are planned by a licensed nutritionist and are low fat, low sodium and portion controlled. Employees benefit by learning about good nutrition, having healthy options to eat for lunch and many have even reported weight loss. Novus benefits because employees stay on-site to eat their lunches, eliminating the commute time to and from restaurants. Additionally, employees collaborate with one another over their lunch breaks in the Novus Caf, which is great for our culture and for advancing the goals of our organization. Our headquarters has a wide range of green features, including 5,000 square feet (464 square meters) of solar panels, a storm water system, bamboo floors and energy-efficient flat screen televisions in community areas. The facility was built out of materials derived from rapidly renewable, recycled and salvaged resources. Additionally, we have incorporated native Missouri flora into our landscaping. We are also working with the Missouri Department of Conservation to create habitats on our property for wildlife, including birds, reptiles and fish.

GRI: 2.9; KPI: EN3 and EN26

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As a company, we believe that our commitment to global sustainability begins at home.


Dr. Giovanni Gasperoni, Executive Vice President, Marketing and Sales

GRI: 2.9; KPI: EN3 and EN26

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Sustainability in Practice
We approach our work through the lens of sustainability, a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainability social, economic and environmental (SEE)are achieved.
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Corporate Social Responsibility


Novus employees are integrated into the fabric of the communities and countries in which we live and work. Ultimately, we are all citizens of the planet and the natural environment that provides the basic resources that fuel our businesses and sustain our lives. For Novus, Corporate Social Responsibility (CSR) begins with a commitment to and by each individual employee. Each employee brings a unique perspective and knowledge to the companyskills, talents and experience that are the essential elements of the value we are able to deliver to the marketplace. CSR at Novus is not charity work or a contribution. It is the way we engage with the world around us to develop the relationships that can make a long-term, positive impact. CSR at Novus is about taking the responsibility and concerted action to seek out synergistic collaborations. Novus has direct relationships in more than 90 countries on six continents with customers, suppliers, consumers, students, teachers and neighbors. We believe our diverse employee base and inclusive work environment are essential to innovation and central to how we differentiate ourselves in the marketplace. We are an equal opportunity employer, committed to the hiring, advancement and fair treatment of individuals without regard to race, color, religion, gender, sexual orientation, age, national origin, ethnicity, disability, veteran status or any other status protected under federal, state or local law. We comply with the law, but mere compliance is not our motivation. We aspire to a higher standard, based on a deeply-rooted sense of integrity and social responsibility.

Each year, Novus employees volunteer their time, in partnership with the United Way, to support organizations such as the St. Louis Area Food Bank.

Giving a charitable donation to an organization or funding the construction of a building at a university are finite activities. Building synergistic relationships requires a commitment and an investment of time, but the positive effects are ongoing. Relationship building is the Novus approach to CSR.

To learn more about the CSR activities of our parent companies, please visit Mitsui CSR report: www.mitsui.co.jp/en/csr/report/index.html Nippon Soda annual report: www.nippon-soda.co.jp/e/index.htm

GRI: 2.5

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Employee Development
As a knowledge-based company, we recognize that our greatest return on investment in employees comes from our employee development programseducation and training. The next few pages provide examples of the many development programs we offer at Novus. The Novus Management System All employee development at Novus is rooted in the Novus Management System (NMS)a living set of principles that guide us in most effectively structuring, staffing and managing our organization. Among the tenets of the NMS are honesty, respect and fairness. Novus managers have many difficult decisions to make, and often there are no clear answers. NMS principles help guide our decision-making process so that we keep these tenets in mind, always striving for trustwhether between managers and subordinates, or throughout the organization as a whole. The Novus Online Learning System The Novus Online Learning System is a comprehensive training resource that is available to every Novus employee. There is a wide range of online training available, including modules based on the Novus Management System, the Novus Integrity System and our products and markets. In addition to modules that are specifically about Novuss business, the system also provides a wider selection of professional development tools, including foreign language courses from Rosetta Stone and value-added sales training.

Green Team
Our Green Team is a volunteer-based employee team responsible for integrating environmentally sound practices into our day-to-day activities at Novus. From office supplies to recycling, the Green Team helps us live our Mission by engaging in and providing education about environmental conservation. Activities of the Green Team include: Nature Conservation Green Team members address site-specific opportunities to improve Novuss footprint on water, soil and energy conservation. Community Involvement Our Team collaborates with organizations that are working to improve our local communities, including Habitat for Humanity and the Missouri Department of Conservation. Global Engagement Novus Green Teams are currently being established at our facilities throughout the world.

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The Novus Speakers Series The Novus Speakers Series creates opportunities for our employees to become better informed about issues affecting their communities and our industry. Speakers from both inside and outside the company address employees. One of our goals for this program is to capitalize on the diversity of our workforce by fostering opportunities for employees to learn from one another. Speakers over the past year have included representatives from the United Nations Association, Habitat for Humanity, Stray Rescue, Missouri Department of Conservation and the United Way. We post videocasts of the Novus Speaker Series on our company intranet, NovusConnect. NovusConnect Through NovusConnect, we provide the opportunity for all employees around the world to learn and collaborate with one another. NovusConnect serves as a central location for sharing information, from research data to corporate forms, in an organized and searchable environment. NovusConnect also provides a variety of tools to support global communication, such as announcements, alerts, presentation libraries and MySites (our version of Facebook). These tools allow employees to share information about themselves and access information about other peers in the organization. Novus employees can create blogs, join discussion forums and use a survey center to create polls about matters important to their roles in the organization.

Video Diaries and Podcasts More and more, we are using technology to share information, learn and stay connected globally. For example, when our EVP, Marketing and Sales, Dr. Giovanni Gasperoni, recently visited Kenya, he captured photographs and maintained a video diary to document the trip. To share his experiences with his fellow employees, he posted the media to NovusConnect, so that all employees would have the opportunity to learn firsthand about the significance of our work in Africa.

More and more, we are using technology to share information, learn and stay connected globally.

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The Novus Art Program


The Novus Art Program provides our employees an opportunity to select art created by living artists in their local regions, without any restriction on the artists medium or subject of choice. The pieces selected by employees are then displayed at our global headquarters in St. Charles, Missouri. To date, our collection includes pieces from Brazil, China, Haiti, the United States, Vietnam and Zimbabwe. The program gives our employees the opportunity to appreciate the diversity of our global culture. At Novus, we value art and its contribution to our shared humanity. As part of the Novus Art Program, we host a fundraising campaign and event each year to support the Arts and Education Council. As part of this campaign, we host the Annual Novus Art Walk. Last year, more than 20 local artists showed and sold their work at the Art Walk. More than 300 people attended this festive event at our global headquarters and enjoyed art, live music and food. This past year, we added an Arts component to the Novus Global Scholars Program. Our first recipients will be dancers in the St. Louis Ballet. Each year, the St. Louis Ballet recruits top-quality talent based on artistic merit. The Novus program will help support the living expenses of these talented artists. All dancers from the St. Louis Ballet give back to the community through education programs for local children. Additionally, Novus will sponsor the creation of a modern dance piece that will be part of the St. Louis Ballets upcoming performance season.
A Nice Day, Zhou Renkang, 2009 (China) Media: Chinese Brush Painting on Rice Paper

All Hands Each quarter, Novus gathers for an all-hands communications meeting. These meetings include updates from various departments across the organization and typically feature presentations by our personal trainers, nutritionists and Green Team. All communications meetings are video recorded and available for viewing by all Novus employees, globally. Special Events Novus hosts a variety of special events for employees each year. For example, this past November, we hosted a Healthy Thanksgiving at our headquarters for all employees and their families. The event featured many traditional Thanksgiving delicacies, such as stuffing, cranberry sauce and mashed potatoes, but with a healthy preparation (low fat, low sodium, portion controlled). As a special gift, Novus gave families a copy of a cookbook featuring many of the dishes prepared for the event. Snapshot Newsletter Novus provides education on health, nutrition and sustainable practices for everyday life to employees through many platforms. For example, we send the Novus Snapshot newsletter to each employee on a monthly basis. The Snapshot provides educational information on current events both inside Novus and the industries in which we work. Each issue also includes a healthy recipe provided by Novuss approved nutritionist.

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Sustainability Projects Around the World


We encourage our employees, in each region of the world, to seek out and engage in sustainability programs. We invite you to read about a few of these over the next few pages. Latin America South Through a partnership with industry leaders in the state of Alagoas, Brazil, Novus is working with more than 1,000 family farmers to create and improve sustainable farming systems. Novus has partnered with local government leaders, Globoaves (Brazils largest producer of day-old chicks and fertile eggs for the production of broilers and laying hens) and Sebrae (a small business development organization) to offer poultry farmers a way to improve their quality of life. We are transferring our experience in poultry nutrition and animal husbandry to help the farmers produce more affordable protein. The goal is to expand this program to reach 16,000 families within the next five years. For more information, visit www.alimentos-en.globoaves.com.br and www.sebrae.com.br China The Novus Graduate Scholars Program (www.novusscholars.com) engages eight agricultural universities in China. Each year, a panel of Novus judges chooses four post-graduate students from each university to receive a monetary scholarship that partially funds the students educations. One scholar from each university is invited to our international research center in St. Charles, Missouri to learn about the global agriculture industry and to partner with our scientists on research relevant to their local market needs. Our purpose is to encourage strong research programs and help the students develop an international perspective on agriculture. Additionally, through this program, we have developed a network of technical collaborators in China. North-West Agriculture & Forestry University www.nwsuaf.edu.cn Sichuan Agricultural University http://202.115.176.32 Huazhong Agricultural University www.hzau.edu.cn/en North-East Agricultural University www.chinatefl.com/heilongjiang/teach/neau China Agricultural University www.cau.edu.cn Nanjing Agricultural University www.njau.edu.cn Zhejiang University www.zju.edu.cn South China Agricultural University www.scau.edu.cn Latin America North Agriculture producers experience various nutritional challenges, often highly specific to their local conditions and production infrastructure. To help address the challenges of our customers in Latin America, we constructed a manufacturing plant in Mexico City. This facility allows us to offer our Latin America North (LAN) customers smaller product packages and custom blends or premixes. These blends include a variety of products such as MHA, MINTREX and AGRADO. Through the use of Novus blends and premixes, our customers can address specific production challenges by purchasing smaller quantities of multiple products in one package. These smaller-quantity packages also provide savings for our customers in terms of transportation and warehousing costs. Our carbon footprint is reduced, as products are produced locally in appropriate quantities, and transportation distance is drastically reduced. Africa Smallholder agriculture is fundamental to the economic growth of emerging markets. From our experience, we know that smallholder farmers have the power to produce the food that is needed in the these regions and that access to affordable livestock inputs and technologies is essential. In Africa, more than 70% of the population earns their livelihood through farming. Most of these are smallholder farmers who are dependent upon unreliable rains and an uncertain agricultural structure. One of our goals in Africa is to provide smallholder farmers with accessible livestock solutions to better feed their families and increase their incomes. By providing education and Health through Nutrition solutions for their livestock, farmers will increase their productivity and have more products to sell at market. This additional income can be used to feed their families more nutritious food, pay school fees, health expenses and purchase additional livestock.
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GRI: 4.17

Asia Pacific Asia Pacific is one of the most aquaculture-dependent regions of the world, from the standpoint of economic development and food supply. The aquaculture and livestock industries rely heavily on the use of fish meal, which is derived from wild, oceancaught fish. However, fish meal is an unsustainable and increasingly expensive source of protein for agriculture supplementation. Our team in Asia Pacific has implemented a fish meal replacement program that we employ to offer customers a significantly lower cost of feed with optimized animal performance. The program supports amino acid balance, animal health and meat quality. It is environmentally friendly, because we substitute a significant percentage of fish meal and minimize the impact of fish caught wild from our oceans for this purpose. Europe At Novus, we place an emphasis on the sustainability of our solutions for our customers. In Europe, we have developed a program that optimizes the feed milling process by using a surfactant. The program utilizes our SURFACE product to improve the efficiency of the feed production process. Feed production can be an energy-intensive process, especially for those using granulators or extruders. Customers using SURFACE in their feed mills have experienced a 10% reduction in energy consumption while increasing the output of their presses. This program improves the mills efficiency, reduces the impact on the environment and increases feed production.
Novus works with feed mills in Africa that support the work of smallholder farmers.

In Alagoas, Brazil, Novus is working with more than 1,000 family farmers to create sustainable farming systems.

GRI: 4.17

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Talent Sustainability
Meeting the global demand for food in the future will require people who are willing to dedicate their careers to the agriculture industry. At Novus, we work to attract and develop new talent, not only for our company, but for the benefit and advancement of the entire industry. Novus Scholar Programs Through various Novus Scholar Programs, we award scholarships to support the research and work of students and professors who are and will be industry leaders in agriculture. In addition to funding their studies, we also seek to build relationships with these Scholars and offer opportunities for many of the participants to work with us as interns in our research facilities around the world. We can learn from their research and they can benefit from our industry experience and relationships. In some cases, these Scholars become Novus employees, customers or suppliers. Goals for the program include: Encourage students in animal agriculture to develop strong research programs and gain an international perspective on agriculture. Build relationships with professors and students who are and will be the future leaders in agriculture. Establish a technical collaboration network to help us develop solutions relevant to our customers in diverse regions of the world.

Novus Scholar Programs


China
Novus provides four graduate scholarships at the eight leading agriculturebased universities in China, with students eventually traveling to our corporate headquarters to participate in an internship program. The Novus Research Fellowship in China supports the development of internationally competitive research programs for promising young scientists specializing in the field of animal nutrition and health.

India

Our partnership with Bombay Veterinary College (www.mafsu.in) links the scientific talents of Novus with one of the most established veterinary institutions in Asia. This provides an important opportunity for collaboration that is mutually beneficial, while encouraging the continued growth of agriculture-related studies in the region.

Korea

In 2008, we established a partnership with Pukyong National University's (PKNU) College of Fisheries Sciences (www.pknu.ac.kr) in Busan, Korea. Through this program with PKNU, we are supporting aquaculture students who have demonstrated promise in areas associated with nutrition, metabolism, growth, development, health and disease in aquaculture.

Mozambique

Last year, we became the first private-sector company to sponsor the African Women in Agricultural Research and Development (AWARD) program (www.genderdiversity.cgiar.org), which seeks to advance the careers of African women. We invite you to learn more about the AWARD program in the Civil Society section, later in this report.

Thailand

In 2009, we established a relationship with the Department of Animal Science, Faculty of Agriculture at Kasetsart University (www.ku.ac.th) in Thailand, where we award a scholarship to a student working on a Masters degree in Poultry Nutrition. This student is also given the opportunity to participate in an internship at our research headquarters.

Vietnam

In 2008, we funded the construction of a 1,000-square-meter Aqua Research Facility at Nong Lam University Campus in Ho Chi Minh City. We fund two scholarships through this program.

United States

At the University of Arkansas (www.uark.edu), we have endowed a Chair in Poultry Science. The professor appointed to that Chair works with visiting scientists from other universities throughout the world and teaches graduatelevel courses related to nutrition and metabolism. At Auburn University (www.auburn.edu), we award a scholarship to a graduate student and provide that student with a paid internship at Novus.

GRI: 2.9 and 4.12

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Career Development and Placement Programs We actively engage with organizations, industry and academia to support the career development of talented students and develop channels for recruitment.

Novus Matching Gift Program


In addition to volunteering time to non-governmental organizations, our employees also make financial contributions. To encourage our employees to become engaged in civil society and to give back, we have established the Novus Matching Gift Program. Through this program, the company matches, dollar-for-dollar, contributions to qualifying local and global causes.
Below are a few examples of organizations that have received support from the Novus Matching Gift Program:

The mission of the Missouri Colleges Fund is to acquire resources to help educate students in member private liberal-arts colleges and universities, comprised of a 16-school network. Novus has established science-specific scholarships within the fund. During our two years of program participation, Novus has hosted a Science Day for scholarship participants. On Science Day, students are introduced to a variety of people working in diverse occupations across our organization and other participating area companies.

Meds & Food for Kids (MFK) is a St. Louis based non-profit organization with operations in Haiti since 2003. In response to the earthquake in Haiti, Novus partnered with MFK to help raise donations and distribute Medika Mamba, a fortified, peanut-butter-based, ready-to-use-therapeutic food (RUTF) to people left hungry after the disaster. For more information on MFK, visit www.mfkhaiti.org

Novus has aligned with Texas A&Ms agribusiness department to establish a joint career placement program. Over the past year, Novus has collaborated with Texas A&M to provide full-time employment to five graduating students.

Heifer International helps people change their lives from a state of hunger and poverty into self-reliance and hope. They provide gifts of livestock and training, helping families improve their nutrition and generate income in sustainable ways. For more information on Heifer International, visit www.Heifer.org

IFAMAs mission is achieved through providing members with multiple vehicles for information sharing, knowledge advancement, discussion and debate, networking and career development. IFAMA has established a global network of academic institutions that have agribusiness or related departments. Students are invited to present research about agriculture technology and best practice management at IFAMA conferences around the world.

Novus employees went the extra mile for our 2009 United Way Annual Giving Campaign. We achieved 110% of our goal with an overall participation rate of 87%, with 100% participation from our Little Rock employees. Novus employees volunteered their time to work at the St. Louis Area Food Bank, where they packaged more than 6,000 meals for the hungry. For more information on the United Way, visit www.unitedway.org

The Arts and Education Council (AEC), through donations, supports more than 80 non-profit arts and arts education organizations. Every year, the funds generated by the AEC provide more than five million children and adults the opportunity to experience music, theater, dance, film, literary arts, visual arts and outreach programs. For more information on the AEC, visit www.keeparthappening.org For a complete listing of Novus Matching Gift Program recipients, visit page 81 in the Appendix.

GRI: 4.12 and 4.17

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Community
Our Vision for sustainability is global. But in our global reach, we touch specific cities and countries in which we live and work. Reflecting our triple bottom line, our employees engage with their communities at multiple levelssocial, economic and environmental (SEE). Novus supports employees engagement in their communities through many programs. Civil Society Novus collaborates with partners in civil society whose work aligns with the Novus Vision, Mission and Core Values. We invite you to read about some of these dynamic and collaborative relationships over the next few pages.

must leave school or the workforce, and are not in a position to return until later in life. Because the AWARD program has no age restriction, participating women have the opportunity to re-engage in and add value to the industry in meaningful ways.

My goal is to help Mozambiques farmers produce more poultry at a lower cost, raising incomes and increasing food security.
Mena dos Anjos, Novus AWARD Fellow We have committed ourselves over the next five years to ten externships, through which African women will work at our headquarters, another Novus facility or with one of our partner organizations such as the Missouri Botanical Garden. Participants will receive mentoring to help them move to the next level in their education. In October 2009, we welcomed our first AWARD research fellow, Mena dos Anjos, a Senior Lecturer in Animal Nutrition at the University of Mondlane in Mozambique. Mena holds a Master of Science degree in Veterinary Medicine with a specialization in poultry production and health from the Royal Veterinary and Agricultural University in Denmark. Mozambique is heavily dependent on poultry production. In fact, more than 70% of rural families in Mozambique keep chickens, which contribute to income and food security. The cost of poultry feed is a challenge for the people of Mozambique. Mena is working at Novus on a project to enhance locally available dried peas to create a more feasible and low-cost feed alternative for poultry. She is collaborating with researchers at Novus to understand the nutritional balance requirements when utilizing these locally available ingredients. When she completes her program here, Mena will return to her academic position in Mozambique. She will try to attract more young people from Mozambique to animal nutrition research, and she will apply the research she worked on at Novus. Her goal is to help Mozambiques farmers produce more poultry at lower cost, raising incomes and increasing food security. For more information on AWARD, visit www.genderdiversity.cgiar.org

Economic opportunity for women in Africa is a matter of social justice. Almost 80% of the agricultural labor force in Africa is female, but only 10% to 15% of the continents agricultural students are female. Last year, Novus became the first private-sector company in the United States to sponsor the African Women in Agricultural Research and Development (AWARD) program and the first organization to host a U.S. placement of an AWARD fellow. AWARD seeks to advance the careers of African women in agricultural research. There is no age restriction for the AWARD program. This is important because the majority of similar programs restrict participation to women 35 years or younger in age. Due to family responsibilities, many African women

GRI: 4.12, 4.15, 4.16 and 4.17

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milk dependency of calves and enables farmers to bring milk to market. Additionally, farmers gain the ability to raise healthier and more productive replacement heifers. To improve cattle nutrition in Uganda, our scientists developed a dry season supplement that also adds essential minerals and feed quality ingredients to locally available protein and energy sources. We are planning to test both programs in additional regions of Africa in the near future.

Every country in Africa has unique livestock industry challenges that require specific solutions. In Kenya, a challenge for farmers is calf mortality. A cow provides a single source of income for many Kenyan families. If a familys calf lives, it can support them in achieving a sustainable income. Calf mortality impairs the farmers' ability to produce a steady income from selling dairy cows and supplying their local communities with dairy products. Ugandan farmers struggle to provide adequate nutrition to their cattle during the dry season. In Uganda, longer dry seasons and the increased use of marginal land are compromising health and reducing the production of cattle. In 2009, a team from Novus traveled to Africa to identify the priorities in these two countries and to determine how we could contribute. The Novus team met with officials of the Nairobi-based ILRI and East Africa Dairy Development (established by Heifer International). After investing time in both countries to understand the challenges and circumstances, we engaged our R&D scientists to work towards solutions. To address calf mortality in Kenya, we developed a nutritionally complete diet that reduces

In 2009, our President and CEO, Thad Simons, was elected to the Board of the Corporate Council on Africa, which has the goal of improving social and economic conditions for the people of Africa by strengthening business relationships between African countries and the United States. It is critical that we empower African nations and farmers, through knowledge sharing and technology, to build the capacity to meet their own requirements for food. The continent of Africas demand for food is expected to greatly increase in the first half of this century. Our involvement with the Corporate Council on Africa is one way to collaborate with African farmers and facilitate an exchange of knowledge. In the fall of 2009, Novus chaired two panels at the Corporate Council on Africas Biennial Summit. The panelists discussed aquaculture and the role of education and technology in agriculture. For more information about the CCA, visit www.africacncl.org

GRI: 4.12 and 4.17

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Balancing the Agricultural Bottom Line


The WAF, in cooperation with Novus, hosted the first Asia Regional Roundtable on March 8-10, 2009, in Phuket, Thailand. The theme of the Roundtable, Balancing the Agricultural Bottom Line, focused on the global and Asia-specific economic impact of the global recession on agriculture. Roundtable attendees were encouraged to discuss the case for creating strategic alliances in the food chain, sustainable practices for agricultural growth and the new paradigm in consumer requirements and food demand. More than 75 people from 19 different countries participated in the event. Attendees included government officials, CEOs, academia, NGOs and farmers. Novus, along with three other participating organizations, presented the insights and discussed highlights from the event at the WAFs Sixth Biennial World Congress on May 18-20, 2009, in St. Louis, Missouri. Based on the success of and interest in the Regional Roundtable model, the WAF plans to host future roundtables over the next year in Brazil, China, Uganda and India.

The World Agricultural Forum (WAF) is a policy neutral and internationally inclusive agriculture and agribusiness-driven forum that brings together leaders from private sectors with policy makers and key policy influencers to focus on providing food, fuel, fiber and water to the worlds growing population. For more information about the WAF, visit www.worldagforum.org

More than 75 leaders in agriculture from 19 countries attended the first World Agricultural Forum Asia Regional Roundtable, Balancing the Agricultural Bottom Line.

GRI: 4.12 and 4.17

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OASIS Helps Protect the Red-Necked Ostrich The largest of three species in the ostrich family, the red-necked ostrich was once abundant in Niger. Like other ostriches, this species population numbers are declining due to human environmental interference and predation. In an attempt to rescue the red-necked ostrich from becoming an endangered species, Novus developed a plan with the Saint Louis Zoos Saharan Wildlife Recovery Center. The Zoos Recovery Center is a world leader in combating the extinction of Saharan wildlife. Upon hatching at the Wildlife Recovery Center, red-necked ostriches often face a long trip to the facility where they will grow to adulthood. During this trip, nutrition and hydration are frequently not available for the hatchling. Our OASIS hatchling supplement, originally developed for domestic fowl, is a hydrated nutritional formulation that supports this critical phase of life. OASIS is used during transport from the hatchery to farms to maintain gut health and hydration. Novus is providing OASIS to the Zoos Saharan Wildlife Recovery Center. OASIS will benefit the red-necked ostrich, as it has done for chickens, turkeys and ducks in farm environments around the world.

Our Arenus division has partnered with the Saint Louis Zoos Orthwein Animal Nutrition Center to study the effects of Arenuss structural health supplement, STEADFAST. The partnership, in the form of a grant, placed a graduate student from the University of Missouri Columbia with the Saint Louis Zoo for a two-year period. The primary focus of the research is assessing the effects of STEADFAST on enhancing joint health in various mammals. The importance of animal nutrition and its effects on treating and/or preventing health issues is a new undertaking in zoos. The Saint Louis Zoo is a world-class facility and one of only a few in the United States that staffs an animal nutritionist and maintains a dedicated nutrition center. For more information about the Saint Louis Zoo, visit www.stlzoo.org

GRI: 4.12

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Industry Associations

Recognition
Novus is very proud of the meaningful awards and recognition we have received over the past year. Below are a few examples:

We recognize our responsibility to collaborate and cooperate with other stakeholders in our industry. We participate in a range of industry associations as a highly effective way to integrate our Vision into the mainstream of modern agriculture.
Below are a few examples of industry associations that Novus employees participate in:

HEROES OF THE PLANET SUSTAINABLE EMPLOYEE PROGRAMS Awarded to Thad Simons St. Louis Business Journal

In 2009, we proudly became the first company in the feed-ingredient industry to become a member of the Sustainable Agricultural Initiative (SAI) Platform. The food industry established this organization to support agricultural practices and production systems that preserve and promote the efficient use of resources.

The Center for Food Integrity (CFI) was established in 2007 to increase consumer trust and confidence in the contemporary U.S. food system. Its primary mission is to promote dialogue, model best practices, address issues that are important to consumers and serve as a resource for accurate, balanced information about the U.S. food system. TOP 50 PLACES TO WORK Awarded to Novus The American Feed Industry Association (AFIA) is the worlds largest organization solely devoted to representing the business, legislative and regulatory interests of the animal feed industry and its suppliers. The program establishes comprehensive standards of excellence that go beyond existing regulations to maximize food and feed safety. RESPONSIBLE CARE ENERGY EFFICIENCY AWARD Awarded to Novus

The United States Soybean Export Council (USSEC) represents U.S.-grown soybeans, soybean meal, IP soybeans and soy protein isolates to international markets. USSEC travels the world with partner companies like Novus, educating farmers on the advantages of soybean inclusion into the rations for their animals. For a complete listing of Novus industry association memberships, please visit page 80 in the Appendix.
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GRI: 2.10, 4.12, 4.13 and 4.14

Economic

The basic definition of sustainability is to keep a process or action going. Healthy businesses provide livelihoods for families, technologies that improve the quality of our lives and the framework for innovation that will be required to sustain our growing world. Core to our Vision is supporting our customers with products and services that improve and create efficiencies in their business operations. In the fabric of economic sustainability, we are all interwoven, and the strength of one is dependent on the strength of the entire community.

GRI: 2.2 and 2.7

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Product Development at Novus


Successful product development is the result of great ideas and a structured process that ultimately bring these products to market. At Novus, innovation begins with our individual employees. We seek excellence from all employees, expect alignment and value diversity. We reward curiosity and initiative. We seek to develop products and programs that are responsible from a social, economic and environmental (SEE) standpoint. We know that innovation is a necessity for meeting the food demands of our world in the future. Structure is critical to successfully bringing innovative products to market. At Novus our innovation framework is based on four pillars: Strategy Defining the long-term application for an idea, conditions necessary for success and assuring alignment with our Mission, Vision and Core Values. Idea Generation and Capture A formalized process for idea generation and capture that considers the viewpoints of our internal and external network of stakeholders. Infrastructure Validating the business and economic aspects of an idea. Ensuring that there is a real application for this idea in the markets we serve, that it can be responsibly produced and that it will generate profits. Balancing Our Idea Portfolio Maintaining a portfolio of ideas and strategically selecting what ideas to commercialize and when.
Idea Work ows Working Teams Intranet Employee Diversity

Collaborating to Meet Demand Responsibly In business, innovation is where the commercial meets the creative. Within the Novus framework of innovation, we generate ideas that can be commercialized profitably. We believe that innovation requires well-rounded, collaborative input across our organization and with customers and partners outside of Novus. For this reason, we have created an innovation structure that integrates the competencies and ideas of both internal and external sources. We believe that varied perceptions bring value and honesty to the innovation process. Value chain synergies are central to meeting the global food demands of the future. Through joint R&D, we combine our core capabilities to bring new products to market. New product and process technologies are essential to our future as we work to fulfill a dramatically higher demand for food using virtually the same natural resources we have today. The Novus Idea Network relies on collaboration from internal and external sources. The Novus Idea Network

Discussion Forums

University Network Social Networking

Novus Idea Network

Recruiting Associations

Customers

Internal Sources

ERP

CSR

External Sources

GRI: 2.2 and 2.7

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Value Chain of Food Production Novus and our products are part of the value chain of food production and we take this responsibility very seriously. We share this responsibility and stewardship with the partners we choose. At Novus, we select partners whose business practices align with our Mission, Vision and Core Values. Through the Novus Quality System (NQS), we demand accountability and transparency from ourselves and our partners. We choose our partners based on mutual alignment of best practices including: Traceability Quality Assurance Food Safety Practices Employee Standards and Safety Animal Well-Being Todays consumers are more aware of and engaged in the food they eat, from both nutritional and social points of view. Greater awareness is driving new standards of production and the opportunity for education. In our product development process, we focus on supporting our customers and consumers in this evolving industry. Localized Product Development with Customers Working with our customers at the local level is key to innovation at Novus. It is the reason we work directly in so many different countries. In all regions where we conduct business, we hire employees who have the education, knowledge and local expertise to support our customers and collaborate to meet their needs. By working locally, we are able to understand how our products can be applied effectively in varying circumstancesranging from multi-national corporations in Brazil to smallholder farms in Africa. Knowledge Sharing and Transfer Central to our product development process is the idea that creating best practices and successful models that others can replicate extends the power of innovation. We want the work we do through our innovation processincluding research and developmentto be applied as widely as possible. We are committed to creating scientifically-based innovations that promote Health through Nutrition. We feel a deep responsibility to share the knowledge we gain and the technology we develop. Through transferring knowledge, our goal is to empower people to improve agricultural practices in their local communities. This commitment is tangibly expressed in our direct and local approach with our customers, the way we collaborate with partners and through the collaborative relationships we build with nongovernmental organizations (NGOs), students and professors.

Novus is Part of the Value Chain of Food Production

Feed & Supplements

Producer

Processor

Distributor

Wholesaler

Retailer

Consumer

From Field to Fork


GRI: 2.2 and 2.7
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Novus Quality System The Novus Quality System encompasses a collection of documentation and process surrounding management review, integrity, training, product development and manufacture of products. The Novus Quality System assures that our customers around the world are sold products in which they can be confident. As part of this system, raw material specifications, manufacturing specifications and sales specifications ensure that all manufacturing plants adhere to the parameters we set forth. The manufacturing specifications may include product appearance, particle size, moisture, uniformity and active ingredients. The sales specifications summarize the functionality of the product and provide the customer with the characteristics that Novus will guarantee about the product. As an example, from the beginning of the manufacturing process, Novus develops raw material specifications. We conduct a minor impurities analysis to ensure that raw materials are free of undesirable substances, such as heavy metals. Manufacturing specifications assure compliance to the sales specifications, determined through input provided by Novus Marketing and Sales. The product can then be delivered to the customer with a guaranteed functionality. These specifications benefit Novus and our customers. Our advantage is a thorough understanding of the critical points along the continuum of manufacturing-to-product delivery and usage.

GRI: 2.2 and 2.7

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University Research Collaboration Novus develops mutually beneficial partnerships with university research facilities around the world. Through these initiatives, researchers and students are able to pursue the expansion of knowledge and the application of that knowledge to advance agriculture. These alliances allow us to interact with businesses and to take our research to local field conditions to benefit our customers. In the dairy region of Argentina, we worked with university extension agents to evaluate our ruminant nutrition programs under field conditions. The extension agents put us in contact with a farmer whose herd was experiencing leg problems and milk fat challenges. Through this partnership, we were able to develop a program with our MFP and AGRADO products to improve hoof health and milk fat production. The assistance of the university and its extension agents allowed us to share our knowledge, products and research under local conditions for the benefit of a farmer. These findings were then presented at a scientific meeting for the benefit of researchers worldwide. We also share our analytical, experimental design, equipment and laboratory design expertise with our university collaborators. In many cases, we might assist with upgrading a university feeding facility or help them design new facilities. In Thailand, the facility at Kasetsart University was designed to replicate a commercial broiler setting. In Vietnam, we helped Nong Lam University officials plan a new aquaculture center to conduct research with Pangasius, a genus of catfish. The goal of these projects is to help the universities better conduct significant research initiatives using local feedstuffs and Novus products to increase production and animal health. Our findings strongly suggest that university-industry research relationships benefit academic institutions and customers. In cooperation with Bombay Veterinary College in India, we are conducting a twoyear research project on chelated trace mineral nutrition in poultry production. We are transferring the trace mineral knowledge we have established in the United States to broiler and layer customers in India. In the United States, we have worked with North Carolina State University and poultry producers to determine the effects of trace mineral nutrition on bone development and strength. These trials were developed in response to direct concerns from the industry to solve an economic and animal welfare issue. For more than ten years, we have worked with the University of Missouri Columbia. This relationship has helped us discover facilities that mimic field conditions to collect reliable data.

Each summer, Dr. Chris Knight travels to China to select the new, annual class of Novus Graduate Scholars.

Our current collaborative university projects do not just include research initiatives. Many times, we are simply assisting universities with establishing documentation or training standards. It is essential that the research community maintain controls and procedures to ensure quality data is obtained and shared with our industry for the benefit of producers.

GRI: 2.2 and 2.7

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The Novus Product Portfolio


The global demand for food is increasing at a rapid rate each year, and this future demand will need to be fulfilled using nearly the same natural resources currently available. For these reasons, we embrace science, technology and best practices as the foundation of our research and development process. We are motivated to develop products that will enable the agriculture industry to provide Health through Nutrition to people everywhere in the world and to do so through sustainable, responsible practices. Through a broad product portfolio, Novus takes a comprehensive approach to optimize the health of animals. This approach maximizes the farmers outputs and produces animals that are more resistant to sickness and disease, which allows them to consistently yield higher quality food. By improving their bio-efficiency, animals also produce less waste that contains lower quantities of by-products that could pollute the environment. Additionally, our products create efficiencies that support the creation of more and higher quality protein, enabling farmers to increase their profits while lowering the cost of food and ultimately helping people achieve a higher quality of life.

Amino Acids
Methionine
Methionine is an essential amino acid. Very simply stated, animals will be limited in their growth without proper amounts of methionine. It is the first limiting amino acid in poultry and the second limiting amino acid in ruminants and pigs. To meet the growing demand for animal protein, it is critical that we improve the conversion of the proteins in animal feed to meat. Amino acids play an important role in improving this efficiency in the animal. ALIMET contains 88% HMTBa, a precursor to methionine that is 100% available to the animal. By this, we mean that 100% of the HMTBa in ALIMET will be converted to methionine and available to the animal. This results in greater productivity for the producer. ALIMET and its sister products MHA, MERA Met and MFP contain a precursor to methionine, an essential amino acid. Amino acids are the building blocks of protein, which make feed more nutritious and efficient.

ALIMET liquid feed supplement contains 88% HMTBa, a precursor to methionine, and delivers an organic acid effect, resulting in better performance and reduced nitrogen excretions.

MHA feed supplement, a dry granular powder, is a leading source of methionine in premixes and farm feed mills.

MFP
MERA Met is a source of methionine for specific use in aquaculture diets.

TM

MFP is a source of methionine for specific use in beef and dairy cattle diets.
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GRI: 2.2, 2.7 and 4.17

Enzymes
All animals naturally produce enzymes to break down major nutrients, including protein. Through a technology partnership with BioResource International, Inc. (BRI), Novus has introduced CIBENZA, a family of enzymes that provide producers with an excellent source of versatile and pellet stable solutions. CIBENZA enzymes help producers achieve improved animal performance and greater flexibility in dietary formulations. Producers must maximize their return on animal feed investments. Less-than-optimal digestibility results in wasted feed and wasted money. CIBENZA enzymes are ideal for corn/soy diets and alternative ingredients, such as cassava, sorghum, palm and copra. We produce CIBENZA for poultry, pork, aquaculture and rendering. CIBENZA DP100 is a heat-stable protease that improves dietary protein digestibility for optimal animal performance. CIBENZA DP100 usage can reduce ration costs by lowering protein levels in the feed up to 10% without sacrificing animal performance, while lowering nitrogen excretion into the environment. CIBENZA DE200 is a heat-stable mannanase that improves energy availability. CIBENZA DE200 allows producers to save on feed costs and increase formulation flexibility through the use of a variety of raw materials in feed rations. CIBENZA PHOS is a heat-stable phytase. CIBENZA PHOS enables animals to obtain more phosphorus from feed, resulting in less phosphorous being emitted into the environment. CIBENZA CSM is a blend of enzymes designed by Novus to work with local feedstuffs. CIBENZA CSM is blended locally at Novus manufacturing facilities in Mexico and China. CIBENZA IND900 is a heat-stable protease enzyme for feather meal processing. CIBENZA IND900 allows customers to create a high-quality feed product using less energy.

Demonstrable Environmental Value


Animals consuming nutritionally balanced diets excrete less waste, which provides a demonstrable environmental value. Furthermore, when animals are fed according to best practice nutrition, productivity gains reduce the strain on the agriculture industrys limited resources. It is possible to feed more livestock without increasing the amount of water and acreage required. For example, we estimate that if all of the broilers grown in the United States were fed CIBENZA DP100, a special enzyme that more efficiently converts soybeans into usable protein, the reduction in soybean demand by the poultry industry would be equivalent to saving 1.75 million acres of farmland for other purposes and an 11% gain in productivity industry wide. In addition to that, animals eating less protein consume less water, an essential element required for protein digestion, which will help conserve much needed fresh water resources. GRI: 2.2, 2.7 and 4.17

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Chelated Trace Minerals


Novus has a unique line of chelated trace mineral products that offer a wide range of benefits. Trace minerals such as zinc, copper, manganese and selenium are essential to all animals for a wide variety of physiological processes. Immune development and response, and tissue and bone development are just a few examples. Deficiencies in trace minerals can lead to reduced performance and even death. The need for trace minerals varies with diet, water source, disease challenge and reproduction. Animals have mineral reserves to draw upon but these must be replenished on an ongoing basis. When considering mineral sources, bioavailability is extremely important. Chelated trace minerals, in comparison to inorganic trace minerals, have much higher absorption rates within animals. More minerals in means more minerals out. Feeding high levels of inorganic minerals means that a larger portion of minerals consumed enter the environment by way of excretion, creating pollution. Novuss chelated mineral technology has a high absorption rate and offers solutions to farmers to improve animal health and productivity while reducing the impact of their operations on the environment.

The MINTREX product family offers chelated trace mineral technology for aquaculture, poultry, pork, beef, dairy and pets. MINTREX combines HMTBa with an essential trace mineral in a two-to-one chelated molecule. These products are available in customized blends. ZORIEN SeY is a special strain of yeast, Saccharomyces cerevisiae, that is enriched with an organic form of selenium, which is needed in trace amounts for cellular function. ZORIEN SeY delivers significant health benefits to aquaculture, poultry, pork, beef and dairy.

TM

GLYTREX provides the benefits of chelated trace mineral nutrition, including gut stability and increased absorption. GLYTREX is available in customized blends. Over the past year, Novus acquired the Animal Nutrition Division of Albion Laboratories, Inc. Products from the acquisition, including the MAAC chelated trace mineral product line, will align with our GLYTREX family. The acquisition furthers our commitment to continually offer a broader range of products to address the needs of our customers.

GRI: 2.2, 2.7 and 4.17

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Chelated Trace Mineral Technology


Eggshell Quality
Whether delivering table eggs to the grocery store or production eggs to the hatchery, the success of farmers businesses depends on consistently producing highquality eggs with strong shells. The most effective way to achieve the highest production possible is to boost the performance of layers through optimal nutrition that incorporates chelated trace mineral technology. The quality of eggshells directly affects the salability of eggs. If eggs develop cracks or break during transit, they cannot be sold. Additionally, eggs produced by layers with unbalanced mineral levels contain excessive calcium deposits, which further limit salability. Chelated trace mineral technology is effective in improving eggshell quality because it is more bioavailable to animals. More minerals are absorbed and ultimately utilized by the layers biological systems to strengthen eggshells. Through the use of chelated rather than inorganic minerals, farmers can precisely supplement animal diets with lower levels and better results. When using chelated trace minerals, farmers are less likely to oversupplement their flocks, which leads to excessive calcium deposits.

Return on Investment
Consider the example of farmers seeking to ensure their poultrys need for zinc (Zn). Symptoms of zinc deficiency can include a suppressed immune system, poor feathering and dermatitis. Inorganic zinc sulphate is an inexpensive, though not particularly bioavailable, form of mineral supplementation. Farmers might need to feed their poultry 100 parts per million of inorganic zinc sulphate. By substituting MINTREX Zn, a highly available chelated form of the mineral, farmers can feed their poultry 32 parts per million, improving the animals health and performance while reducing waste. Inorganic Trace Minerals

= Complete Feed = Mineral

Chelated trace mineral technology enables farmers to reduce their levels of mineral inclusionsaving money and reducing waste to the environment.

The economic return on investment of our chelated trace minerals can be as high as 5:1 for farmers. But these returns cannot be counted only in dollars. They also translate to lower quantities of zinc excretions into the environment. Deposits of zinc, copper and other trace mineral metals are all reduced by MINTREX. This results in reduced volumes of heavy metals being deposited into our soil.

GRI: 2.2, 2.7 and 4.17

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Antioxidants
Novus antioxidant products are available in two categories: feed preservatives and dietary supplements. Feed Preservative Antioxidants Oxidation of animal feed and feedstuffs can result in rancidity of fats and destruction of vitamins A, D, E and amino acids. If unchecked, a single degraded ration ingredient can lead to lower animal feed consumption and nutrient deficiencies. Novus products, including SANTOQUIN, FEEDGUARD and NATUGUARD feed preservatives, protect the nutritional value of feed.

NA TU
SANTOQUIN feed preservative provides unsurpassed protection from oxidative rancidity. Oxidation decreases the value of unprotected ingredients as soon as they are produced and continues to degrade nutrients over time. SANTOQUIN protects feed ingredients and prolongs nutritional shelf life in complete feed. GRI: 2.2, 2.7 and 4.17 FEEDGUARD feed preservative is a dry, free-flowing product for use in dry mixes. It is a proprietary blend of antioxidants that is used to preserve fats, oils, vitamins and pigments contained in dry animal feed. NATUGUARD feed preservative is a natural-based antioxidant used to preserve fats, oils, vitamins and pigments contained in animal feed. The ratios of active antioxidants in NATUGUARD have been developed to provide optimal performance at the best cost possible.

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Dietary Antioxidants Dietary antioxidants for animals promote healthier immune systems and tissues by capturing free radicals and optimizing oxidative balance. By reducing the amount of energy required to fight disease and improving health, dietary antioxidants enable animals to grow more productively.

The AGRADO product family contains dietary antioxidants that have been reviewed and approved by the FDA for use in total mixed rations of lactating dairy cows. In addition to being beneficial to the dairy market, AGRADO products offer benefits for cattle and pigs. AGRADO products have superior efficacy against both animal and plant-sourced fats in the total mixed ration, protect key ingredients from oxidation and reduce harmful free radical formation that can negatively affect health and productivity.

GRI: 2.2, 2.7 and 4.17

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Feed Quality
Novuss solutions for feed quality protect the value of high-quality ingredients to ensure optimal animal health, performance and improved feed conversion rates. The Novus family of products for feed quality includes SOLIS, ZORIEN MOS, PRO-STABIL and CAPTURA.

SOLIS is an anti-caking agent approved for use in animal feed. When properly mixed, SOLIS has the ability to target the challenges of fungal metabolites. ZORIEN MOS is a prebiotic additive containing mannanoligosaccharides and beta-glucans, derived from a selected strain of Saccharomyces cerevisiae yeast cell wall for use in production livestock. PRO-STABIL is available as a granulated or liquid preservative premix. It contains propionic acid as its main agent and is used in the preservation and stabilization of compound feed and feed materials. CAPTURA is a free-flowing premixture that reduces the effects of moisture and toxins in animal feed.

MOS

GRI: 2.2, 2.7 and 4.17

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Feed Mill Management


Our feed mill management and feed quality solutions support farmers and feed mills in creating the highest-quality rations possible. Feed mill management products like SURFACE, a liquid preservation premixture, increase pellet output while improving feed quality. IDEA (Immobilized Digestible Enzyme Assay) quickly and accurately enables feed mills and farmers to determine the protein amino acid digestibility of feed ingredients like soybean meal, poultry and feather meal, fish meal, Distillers Dried Grains with Solubles (DDGS), and meat and bone meal.

Feed Mill Efficiency Program


We developed the product SURFACE to support our feed mill customers in increasing the nutritional content of the feed they create, improving their business operations and reducing their environmental impact. SURFACE helps decrease the surface tension on feed particles and reduce dissipation of moisture pellets. The product binds with dietary fat present during feed production, resulting in better lubrication of machinery and increased feed output with reduced energy consumption. In a study of SURFACE spanning 6 countries, feed mills experienced a 14% average savings in energy consumption, equating to $2.90 (USD) per ton. Additionally, feed produced using SURFACE has an optimized ratio of dry content to moisture, as intended in dietary formulations.

SURFACE is a liquid preservation premixture that offers multiple economic and environmental benefits during the production of pelleted feed. SURFACE exerts an emulsifier action that increases pellet output, improves conditioning, enhances the durability of the pelleted feed and improves the overall quality of the final feed.

IDEA provides a farm-level tool for our customers to test the quality of their feed ingredients and to determine the protein amino acid digestibility. Additionally, IDEA is used to test the quality and safety of pet food ingredients.

GRI: 2.2, 2.7 and 4.17

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Gut Environment Modifiers


Gut Environment Modifiers (GEMs) support beneficial bacteria while degrading their non-beneficial counterparts. GEMs enhance digestion and absorption without reliance on antibiotics. ACTIVATE is a blend of GEMs combined with ALIMET. Pork and poultry producers use ACTIVATE products as an important component of Salmonella reduction programs. ACTIVATE also aids in increasing sow feed intake. ACIDOMATRIX is a proprietary line of protected GEMs for pork. It provides benefits that increase performance during diet changes or in antibiotic-free diets. ACIDOMIX is a combination of liquid organic and inorganic acids. ACIDOMIX is designed to improve food and water quality while helping to prevent the colonization of harmful bacteria. MERA Cid is a proprietary blend of feed-grade organic acids that supports beneficial bacteria in fish and shrimp by acidifying the environment. MERA Cid supports healthy growth in an antibiotic-free environment. PROVENIA is an energy-rich, flavored complementary feed for piglets.

Salmonella Prevention
Gut environment modifiers (GEMs) help control and prevent harmful agents, such as bacteria, from proliferating in the small intestines of animals. Bacteria, such as Salmonella, can have a negative effect on animal health, ultimately harming production and possibly human health. The European Food Safety Authority (EFSA) has assessed the public health risks from Salmonella in pigs. The EFSA assessment suggests that pigs and pig meat may be responsible for 10% to 20% of all human cases of salmonellosis in the EU. Effectively controlling Salmonella at the farm level can have a direct impact on the food chain and reduce the number of related human illnesses. When Salmonella proliferate in the intestine, it becomes difficult for animals to absorb nutrients. This results in poor health and performance. Through the various GEMLine products and programs we offer, such as ACTIVATE WD, farmers can manage a wide variety of challenges, such as the transmission of Salmonella in pigs. ACTIVATE WD is for use in the drinking water of pigs, and for the control and destruction of environmental pathogens.
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Biologicals
ADVENT is a vaccine against coccidiosis, one of the greatest threats to poultry. The product is sprayed onto broiler chicks shortly after they are hatched, providing protection through a single, antibiotic-free application.

GRI: 2.2, 2.7 and 4.17

Early Nutrition
Early Nutrition is fundamental to the overall health of chicks and piglets. OASIS hatchling supplement is a hydrated nutritional formulation specially designed for the first days of life for hatchling poultry. OASIS is used during transport from the hatchery to farms or as a top dress application on starter feed.

EggsThe New Superfood


For years, eggs have been considered a powerhouse of nutrition. This reputation is due to eggs exceptional nutritional profile as a nutrient-dense food containing high-quality protein and a substantial amount of essential vitamins and minerals. Eggs are a good source of folate, phosphorous, vitamins A, D, B12 and K, riboflavin, selenium and choline. The nutrient density of eggs makes them a valuable contributor to the overall nutritional balance of the diet. Eggs are an economical source of high-quality protein, an important component in the diets of the elderly, low-income families, growing children and people attempting to lose weight. In addition to being a wholesome and nutritious food, eggs can also be classified as a functional food. Research has shown that eggs supply significant amounts of carotenoids that may play a role in disease prevention. Researchers have demonstrated that eggs are a source of highly bioavailable forms of the carotenoids lutein and zeaxanthin. These antioxidantlike compounds have been shown to help in the prevention of macular degeneration, a leading cause of blindness in the elderly, and have been associated with lower risk of cataract extraction. Eggs are also a significant source of choline. Choline is essential for normal functioning of all cells, including those involved with metabolism, brain and nerve function, memory and the transportation of nutrients throughout the body. For additional information on the health benefits of eggs, visit www.thinkegg.com or www.incredibleegg.org

Enrichment
In recent years, people have become more concerned about how food choices impact their health and well-being. In late 2007, Novus began marketing DHA GOLD to animal producers. DHA is an essential component for many cells in the human body and studies have shown that a DHA-rich diet can lead to increased brain, eye and heart health. Including DHA GOLD in animal feed is a safe and effective way to nutritionally enhance the DHA content of meat and eggs. When included in livestock diets, DHA has health benefits to animals and ultimately, enriches the food products. Enrichment of food products is very important in emerging markets where diets are often lacking in balanced nutrition. Providing supplementation through eggs provides nutrition and can be less expensive than through traditional tablets. Other nutrients that can be supplemented through egg or protein enrichment include Zinc and Selenium. DHA GOLD is an all-natural, vegetarian source of the omega-3 fatty acid docosahexaenoic acid (DHA).

GRI: 2.2, 2.7 and 4.17

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Novus Nutrition Brands


Novus Nutrition Brands, LLC, (NNB) is a subsidiary of Novus International, Inc. NNB is comprised of Novus Pet Nutrition (NPN), Arenus and Stratum Nutrition. Below are two examples of products from our Arenus product family: ASSURE is an innovative digestive supplement for horses that, when fed daily, helps to support overall hindgut health through our exclusive GST technology. ASSURE may control the risk of digestive colic through its blend of direct-fed microbials. STEADFAST is a patent-pending health supplement specifically designed to support joint integrity, bones, tendons, ligaments and other connective tissues in dogs and horses. To learn more about Arenus, visit www.arenus.com

NPN is a division of NNB dedicated to providing nutritional ingredient solutions to the pet food manufacturing industry. Products offered to manufacturers include the Novus line of chelated trace minerals, antioxidants, amino acids, prebiotics, enzymes, yeasts and protein quality testing.

Arenus is a premier provider of innovative health and nutrition products, offered direct to consumers, for dogs, horses, ornamental fish and birds. The division is an audited member of the National Animal Supplement Council (NASC), an industry group dedicated to protecting the health of companion animals and horses. Based on science, Arenus products are developed with the input of nutritionists, veterinarians and other animal professionals.

GRI: 2.2, 2.3, 2.7, 3.8 and 4.17

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Stratum Nutrition offers a portfolio of branded, value-added ingredients for human health applications. Stratum focuses on growing a portfolio of specialty and functional ingredients that target business-to-business manufacturers of foods, beverages and dietary supplements. Stratum Nutrition has entered into strategic partnerships with two ingredient manufacturers, KitoZyme and ESM Technologies. KitoZyme produces a new vegetarian ingredient, chitin-glucan, which supports arterial and overall heart health. Through a technology partnership with ESM Technologies, Stratum is working to accelerate the global use of the ingredient Natural Eggshell Membrane (NEM) in supplements, functional foods and beverages. NEM represents a unique and safe technology that fits a key target health platform for usjoint and bone health. Below are examples of products from the Stratum Nutrition product family: ESC is a naturally pure calcium source. It consists of a natural form of calcium carbonate, which the body needs to maintain healthy bone mineral density. NEM is a natural eggshell membrane ingredient clinically proven to support joint comfort and flexibility. NEM is composed of naturally occurring glycosaminoglycans, including chondroitin and hyaluronic acid, as well as collagen and other beneficial proteins essential for joint health. ARTINIA is a high-purity natural ingredient that features the benefits of soluble and insoluble fibers to support the bodys natural defenses against oxidized-LDL cholesterol. To learn more about Stratum Nutrition, visit www.stratumnutrition.com

Vitamin Angels is dedicated to reducing child mortality worldwide by advancing the availability, access and use of essential nutrients to newborns, infants and children under five. Through our partnership with Vitamin Angels, Novus is able to help improve the quality of life for children. We have committed to making significant donations in the way of monetary funds, as well as the raw material zinc. Through our partnership, Vitamin Angels is establishing a new zinc program that will provide relief for diarrhea, one of the most widespread and deadly health problems affecting children under the age of five around the world. The Vitamin Angels pilot program will be delivered to Sauri, Dertu and Eldoret, Kenya through the infrastructure of Millennium Villages. The goal of Millennium Villages is to empower communities to lead in their own development. To ensure success, participants must give a significant amount of their time, skills and resources. This large-scale humanitarian project, coordinated through Vitamin Angels Thrive to Five initiative, was launched during the groups 2009 Celebration of Angels event. The launch of the program coincided with Novuss launch of our new Stratum Nutrition division, which focuses on human Health through Nutrition. This partnership supports Novuss decision to expand the scope of its solutions to include ingredients and technologies that directly support human nutritionhealthy ingredients that are put into human supplements, beverages and foods. For more information about Vitamin Angels and Millennium Villages, visit www.vitaminangels.org www.millenniumvillages.org
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GRI: 2.2, 2.3, 2.7, 3.8 and 4.17

Programs
The challenge of global sustainability is complex and involves multiple, inter-related issues. We look at our customers business challenges from an integrated perspective, recognizing that it is an oversimplification to expect a single product to solve a multi-faceted problem. Our customers businesses are impacted by social, economic and environmental (SEE) factors. We look at health and nutrition issues from a holistic perspective, recognizing that only an integrated approach will make a clear, sustainable economic difference to our customers. We provide complete solutions that deliver long-term Health through Nutrition. Our goal at Novus is to help our customers treat systemic issues, not symptoms. Many times animals may experience specific problems, but there can be larger underlying issues that when addressed, will restore and sustain health for the long term. Novus is uniquely positioned to help our customers fortify and protect animal health. In many cases our products proactively prevent health problems before they begin. Based on an understanding of our customers needs and the factors that drive our market today, we approach the agriculture industry through four major program categories: Animal Well-Being Performance Food Safety Environmental GRI: 4.17

Animal Well-Being
From a business perspective, it is in the best interest of farmers to do everything they can to ensure that their animals have the best nutrition, environmental conditions and care. Animals are more productive when they are healthy. Health through Nutrition is central to animal well-being. Healthy animals are happy animals and Novus has been working to support the well-being of animals for nearly two decades. Many programs specifically focused on animal wellbeing have been designed based on our broad product portfolio. Below are a few examples: Joint Health for Horses Strenuous activities like training and competition, along with age, can erode horses joints over time, causing aches, pains and reduced mobility. STEADFAST EQUINE by Arenus is a joint health supplement specifically designed to support performance and longevity. While many equine joint health products may be useful in addressing a single joint-specific issue, STEADFAST EQUINE takes a multi-faceted program approach to supporting the horses entire joint systems. Not only does it provide essential components to joints, but also to bones, tendons and ligaments. Hoof Health for Cattle Hoof health is key to keeping cows happy and healthy. Environment and nutrition both play a critical role in hoof health. Nutritional deficiencies can negatively impact hoof health and cow mobility. Through nutritional programs including chelated trace minerals, we help to improve the mineral status in the animals and strengthen hoof health, keeping cows healthy and mobile. Footpad Health for Poultry Footpad lesions are a common issue with poultry and can cause discomfort for birds. Novus has developed a program to help eliminate some of the most common causes of footpad dermatitis. Highly bioavailable MINTREX chelated trace minerals strengthen the soles of the feet, making them more resistant to footpad issues. Proper amino acid nutrition with ALIMET enables maximum tissue integrity and CIBENZA enzymes assist in aggressively reducing protein and nitrogen excretions to reduce wet or caked litter conditions.
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Achieving Oxidative Balance


Humans and animals alike must eat different types of food or feed to be healthy. When diets are out of balance or animal rations are not quite right, we can become lethargic, get sick or even die. We cannot operate at full potential. Doctors tell us to consume foods rich in antioxidants, like blueberries, spinach and tea to enhance our health and wellbeing. In much the same manner, we can add dietary antioxidants to animal feed to accomplish similar goals. In the case of dairy cows, a complete feed must contain high-quality ingredients to maximize animal performance. Best practice management partly accomplishes this goal. But even after feed is produced and in fact, even after food is consumed and in the digestive tract, harmful products can form and upset the oxidative balance in animals. Whether an Olympic athlete or highproducing dairy cow, nutritional programs containing dietary antioxidants are particularly important for achieving high performance and reaching full potential.

Performance
For the livestock industry, the term "performance" relates to an animal achieving an optimal state of health and growing to genetic potential. A strategic approach to nutrition is critical for farmers working to keep their livestock healthy and productive. Novus works, through nutritional strategies, to help farmers achieve the highest performance possible. Examples of Novuss nutritional strategies to enhance performance include: Optimizing Feed Utilization Minimizing Structural Health Challenges Maximizing Reproductive Health Reducing Feed-Borne Pathogens Supporting Optimal Digestive Health Preventing and Eliminating Feed Toxins

Lowering Feed Costs and Improving Performance


A strategic approach to nutrition is critical for farmers working to keep their livestock healthy and productive. Feed ingredients are an enormous investment for farmers, representing up to 70% of total operating costs. Nutritional strategies can help protect and maximize this investment. Most importantly, animals who consume a nutritionally balanced diet are healthier and better equipped to achieve their genetic potential. For example, all animals naturally produce enzymes that break down major nutrients, including protein. However, animals are not capable of breaking down some components that naturally occur in animal feed such as fiber or phytic acid, which means that nutrients are not absorbed and feed is wasted. When animal diets are supplemented with enzymes, the digestion of nutrients is optimized, leading to improved animal health and lower operating costs. Diets optimally formulated with products from the CIBENZA product family can improve the digestibility of animal diets. In a corn/soy diet for poultry, for example, approximately 90% of the feed is digestible, while 10% is converted to waste matter. By maximizing the digestible portion of the feed, farmers can recognize a higher return on their investment and animals achieve their genetic potential.

GRI: 4.17

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Food Safety and Mycotoxins

Food Safety
Food Safety is extremely complex because there are many points along the farm-to-table continuum. At Novus, we have developed On-Farm Prevention Management Programs, which enable our customers to manage all points of potential pathogen introduction. Our programs combine management best practices with preventative, nutritional strategies. Novus offers many solutions to support Food Safety including: Pathogen Prevention Mycotoxin Management Water Quality Support Best Practice Consulting As part of the value chain of food production, we take our role and responsibility very seriously. We implement quality assurance programs and maintain traceability for all the products we produce.

Mycotoxins vary throughout the world, with different regions experiencing different mycotoxin-related challenges. The highest risk to human health is in emerging markets, where pasteurization is not yet widely adopted. In these areas, the aflatoxin M1 is of widespread concern. When cattle consume aflatoxin, the milk they produce quickly becomes contaminated with M1, which can ultimately have devastating health effectsincluding death of animals and of people who consume their products. African nations, including Kenya, Senegal and Somalia, have experienced aflatoxin contaminations, which have claimed thousands of human lives. In response to the global problem of mycotoxins, more than 100 countries have enacted legislation to control the amount of mycotoxins in animal feed, as well as in food for human consumption. Novus products SOLIS and CAPTURA are anti-caking agents. These products bond with mycotoxins during the digestive processes of animals and safely carry them out through their waste.

GRI: 4.17

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Food and waterborne diseases are leading causes of illness and death in less developed countries, killing an estimated 2.2 million people annually, most of whom are children.
World Health Organization, 2010

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Environmental
The agriculture industry plays a unique role in the global effort to protect and preserve the environment. It is our responsibility to feed a large majority of the world. In that respect, agricultures relatively small size has a disproportionately large impact on humanity and the environment. We face the challenge of working with our natural resources to meet the worlds increasing demand for food in a way that does not exhaust the environments capacity to produce what we need. We also have the responsibility of utilizing natural resources efficiently, maximizing productivity, while taking care to minimize waste. The environmental challenge of sustainability is largely dependent upon how we manage social and economic issuesas individuals, as companies and as members of our local communities.

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The Importance of Chicken and Fish in Feeding the World

Products
Novus products are geared towards maximizing output and minimizing waste. Leveraging a broad product portfolio, we take a comprehensive approach to optimize the health of animals. This approach maximizes the farmers output, fortifies livestock against disease and ultimately leads to the production of higher-quality food. Novuss Health through Nutrition programs support healthy, happy animals who generate less waste into the environment and are more productive.

When comparing all sources of protein, poultry and fish are the most efficient, economical sources on earth. This is because there is a lower production cost per kilogram (kg) and therefore a lower consumer price point. Feed costs impact both the demand for and production of protein. When comparing the various segments of the protein industry, the poultry segment is less impacted by rising raw material costs due to efficiency of feed conversion. The table below provides a comparison of feed conversion efficiency between beef, pork, poultry, dairy and fish.
Average Feed-to-Protein Conversion Ratio
Feed (kg) Beef Pork Poultry Fish 5.0 3.0 2.0 1.7 Protein (kg) 1 1 1 1
Source: Novus Analysis, 2010

Fish Meal Replacement


Nearly one-third of the worlds wild-caught fish are used to create fish meal for animal feed, predominantly for the aquaculture industry. As the worlds demand for protein continues to grow, so will the demand for fish meal. Novus offers products to reduce the potential environmental strain of overfishing on the ecosystems of our oceans for the creation of fish meal. Our MERA Met and MERA Met Ca products provide amino acids and other nutritional supplements that enable producers to mix or replace fish meal with soybean meal. This significantly lowers the farmers operating costs, because soybean-based feed is much more economical than fish meal-based feed and does not compromise animal health.

The level of industrialization of an operation directly and drastically impacts animal performance. The conversion numbers above apply to conventional farming environments. In emerging markets, where small farm operations are still common and widespread, conditions are variable, infrastructure can be limited, raw materials are often low quality and animal nutrition programs are not optimized due to lack of resources. Bringing best management practices, such as amino acid and enzyme balance in animal diets, to the farm level in emerging markets empowers farmers to increase their output, providing access to more food for their families and their communities. In these regions, chicken and fish hold great potential as sustainable sources of protein because the price of production is low by comparison, the production cycle is short and the protein output can be high when best practices are adopted. Farmers can have fast access to food to eat and take to market. In contrast, an investment in larger livestock, such as dairy cows, can represent the largest asset for families; and if the cows become sick or die, the effect can be devastating.
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Operations and Manufacturing


It is obvious that manufacturing processes have an environmental impact. Striving to diminish that impact, we make our manufacturing operations more efficient in the same way that we improve animal nutritionmore efficient use of input, more productive output and less waste. A majority of what comes into the manufacturing plant as raw materials is shipped out to the customer as product, generating as little waste as possible. Novuss largest plant, our Chocolate Bayou facility in Alvin, Texas, was built in the early 1980s to produce ALIMET. Chocolate Bayou was designed at a time when the world had recently experienced the economic and social shocks of the 1979 Oil Crisis. Consequently, the plant was designed with a keen eye toward the efficient use of energy and the minimization of waste. Due to the nature of the products we produce, Novus manufacturing plants are generally mixing plants. We combine ingredients, like a recipe, more than processing or refining them. On balance, our plants produce very little waste and expel minimal emissions into the atmosphere. Certifications Novus is committed to best practices as an organization. Below are a few examples of how we express this through our operations and manufacturing: ISO 14001 ISO 9000 GMP Responsible Care Management Kosher FAMI-QS Safe Feed / Safe Food

Novuss largest plant operation, where we produce ALIMET, is located in Chocolate Bayou, Texas.

Commitment to Responsible Care Management Novus is certified as a Responsible Care Management System company. Responsible Care was launched in 1988 as the American Chemistry Councils (www.americanchemistry.com) comprehensive Environmental, Health, Safety and Security (EHS&S) performance improvement initiative. It incorporates progressive principles based on benchmarked best practices of leading private sector companies, initiatives developed through the Global Environmental Management Initiative, International Standards Organization and other bodies, and requirements of national regulatory authorities. Through our business, we strive to provide commercial solutions that promote reduced waste and the reuse and/or recycle of our natural resources. We are committed as an organization to offering sustainable programs to our industry and to achieving success through integrity. This commitment extends beyond social obligations or the imposed regulations of any one government or governing body, which may not yet reflect the higher standards by which we are driven.

KPI: EN3

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Supply Chain Sustainability


On any given day, Novus has hundreds of thousands of pounds of material in motion over highways and railways. It is imperative that we understand the environmental impact of our supply chain so that we can improve our processes and become a better steward of the environment. Whenever possible, we remove trucks from the highway through the utilization of lesser polluting and more fuel efficient railcars. When there is no practical choice but to use trucks, we contract our freight movement with logistics service providers and carriers that are certified, active participants in the Environmental Protection Agencys (EPA) SmartWay Transportation Partnership. The EPAs SmartWay Transportation Partnership is a voluntary program that recognizes partners for setting and achieving greenhouse gas reduction goals in freight transport. The tenets of the SmartWay certification consist of an agreement between the transportation company and the EPA. The participants agree to benchmark their performance as the basis of a three-year action plan to increase the efficiencies of their fleets, and/or commit to increasing the volume of freight shipped with SmartWay-certified carriers by 10% each year. Nearly 90% of Novuss finished goods distributed in the U.S. are carried by vendors that are active partners in the EPAs voluntary program. Through collaboration with Certified SmartWay Transportation Partners and our commitment to utilize rail movements whenever feasible, Novus continues to embrace the goal of sustainability at every level of our organization.

KPI: EC2 and EN26

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Inventory Management
Technology is another way we stay in close contact with our customers. One example is our patented Automated Inventory Management System (AIMS). Simply put, AIMS includes a sensor and a tank that supplies ALIMET to a feed mill or mixer. Novus monitors the level of the tank and automatically replenishes the bulk liquid supply as needed, creating business efficiencies for our customers. Novus pioneered vendor-managed inventory for feed industry bulk liquids in 1993. Since then, AIMS has improved supply chain efficiency and reduced environmental impact through the reduction of intermediate bulk container (IBC) and drum usage. In 2009, we upgraded the AIMS infrastructure. The new version of AIMS uses satellite communication with a submersible differential pressure sensor for level measurement. The new platform provides precise and dependable inventory readings, a back-up power supply and a local display of tank inventory. Novus customers can monitor their tank inventory levels and usage through the local display as well as on the Internet via Novus Premium Services at www.novusint.com

The AIMS inventory management system has improved supply chain efficiency and reduced environmental impact for Novus customers.

Novus monitors the ALIMET level in AIMS tanks and automatically replenishes the supply for customers as needed.

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Recyclable, Low Density Polyethylene (LDPE)

Tough and flexible, Novus bags can be printed on with water-based inks that do not use solvents or heavy metals

Continuous Improvement: Packaging


Many Novus products are delivered to our customers in bagsmore than 2 million per year. Last year, we understood that we had a real opportunity to improve our impact on the environment by taking a creative look at our product packaging. We formed a crossdepartmental task force to research our options and to make recommendations for improvement. There were key considerations as we began to plan. Novus bags must be durable because they are shipped all over the world. They must be strong because they commonly hold 25 kilograms, or 55 pounds, of product. Finally, our bags must feature multilingual, printed text that is educational for customers and meets the regulatory requirements of importing countries. We worked with the American Feed Industry Association (AFIA) to ensure our bag design supported the Safe Feed / Safe Food initiative. The result is a bag made of recyclable, lowdensity polyethylene (LDPE). It is tough, flexible and can be printed on with water-based inks that do not use solvents or heavy metals. In 2009, we began using this bag to fill all shipments of our MINTREX and ACTIVATE products. This is the beginning of a multi-year process in which we will roll out the new bag design through our family of over 100 products.

Each year, Novus ships more than 2 million bags of product to customers.

KPI: EC2 and EN26

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To help feed the world affordable, wholesome food and achieve a higher quality of life.

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Quality of Life

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Quality of Life
At Novus, we focus our sustainability efforts on improvements that matter, to make the most meaningful impact that we can. Our commitment begins with Novuss Mission, Vision and Core Values, where sustainability is embedded, and manifests itself in a systemic, longterm approach, based on our triple bottom line of social, economic and environmental (SEE) responsibility. Health through Nutrition is the purpose of our products and programs. The collective efforts of our employees are focused every day on achieving a higher quality of life, for animals and people, through nutrition. Our heritage and core strength is science and it will always be the bedrock from which we continuously innovate. Sustainable Culture, Global Vision At Novus, sustainability begins at the individual level and is evident in the daily activities of each employee. It is demonstrated in the way that employees put into practice our collective aspirations, Novuss Mission, Vision and Core Values. Our sustainable culture is based on minimized waste, collaboration and creating local solutions for our customers based on industry best practices. Sustainability in Practice We approach our work through the lens of sustainability and this is a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainabilitysocial, economic and environmental (SEE) are achieved. The Importance of Agriculture The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. During the reporting timeframe of this report, the United Nations announced that by 2050 we will have to double our food production to meet global demand, using nearly the same water and arable land available today. Meeting this need can only be achieved through the technological innovation of companies like Novus. We are motivated to contribute to an agriculture industry that is equipped to provide nutritious, affordable food to people everywhere in the world and to do so through sustainable, responsible practices.

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GRI Indicator Index


Vision and Strategy 1.1 1.2 Profile 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 Report Parameters 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 Reporting period Previous report Reporting cycle Contact point Process for defining report content Boundary of the report Any specific limitations of the report Basis for reporting on subsidiaries Data measurement and calculation basis Explanation of any restatements from previous reports Significant changes from previous reports GRI contents index Policy and current practice Page 1 Page 1 Page 1 Page 81 Page 1 Page 1 Page 1 Pages 52-53 Page 1 Page 1 Page 1 This Page Pages 5-9, 19 Name of the organization Primary products Operational structure of the company (divisions, subsidiaries) Location of headquarters Countries of operation Nature of ownership Markets served Scale of organization Significant changes Awards received Front Cover Pages 37-53 Pages 12, 52-53 Page 12 Pages 12, 24, 74 Page 12 Pages 12-16, 37-53 Pages 7, 12 Pages 20-21, 30 Page 36 A message from the President Key impacts, risks and opportunities Page 2 Pages 5-9

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GRI

Governance 4.1 4.2 4.3 4.4 4.5 Governance structure Chairman of board different than CEO Board structure How shareholders and employees provide recommendations to the board The Felt Fair Pay (FFP) system helps ensure all Novus employees are fairly compensated. FFP helps us account for country variables such as the amount of paid vacation and the number of work-months in a calendar year. Through FFP, we can be assured that all Novus employees are getting paid at essentially the same rateaccording to their role levelno matter where they are in the world. Processes to ensure conflict of interest avoidance Qualifications and expertise of governance body Internally developed statements and implementation status Procedures for governance oversight and management We have an organization in which every employee documents his or her key accountabilities in a Key Accountabilities Document (KAD). This starts with the CEO and cascades down through every single employee. These key accountabilities have a direct effect on Novuss short-term goals, three-year objectives, Critical Success Factors, and ultimately on our long-term strategy. Precautionary approach to principle Externally developed initiatives Memberships and associations List of stakeholder groups engaged by organization Basis for identifying stakeholders to engage Approach to stakeholder engagement Key topics and concerns for stakeholders Page 19 Page 75 Pages 19, 75 Page 19 This Page

4.6 4.7 4.8 4.9 4.10

Page 19 Page 75 Pages 6-7, 19 Pages 8, 19 Page 8 and This Page

4.11 4.12 4.13 4.14 4.15 4.16 4.17

Pages 6-7, 19 Pages 30-36 Pages 36, 80 Pages 36, 80 Page 32 Pages 9, 32 Pages 28-29, 31-34, 42-56

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Key Performance Indicators


Economic EC We believe that leading global companies understand that society and government provide the license for business to operate with the expectation of partnership. Novus seeks to support growth of the animal protein value chain by improving productivity, addressing local community farming needs for diversification and sharing in management of natural resources. Growth of Novus Nutrition Brands acknowledges the importance of human nutrition in economic growth and the important contribution of companion animals to the quality of life. Novus understands that climate change can result in risks and opportunities, affecting economic performance. Novus will conduct business with suppliers who are globally competitive and will provide the lowest long-term cost of ownership. Novus is dedicated to working closely with local suppliers to educate them about our strategic purchasing requirements. As appropriate, Novus will help local suppliers understand the need and potential actions for their business to be globally competitive. Novuss policy is to hire locally in each area of the world we are located.
July 2008 - Dec. 2008
This Page

Jan. 2009 - Dec. 2009


This Page

EC2 EC6

Pages 61, 63, This Page This Page

Pages 61, 63, This Page This Page

EC7 Environment EN

This Page

This Page

EN3

Novus is committed to operating in a way that recognizes that natural resources are finite. We incorporate renewable energy best practices in the operation of our headquarters building and animal feed blending plants throughout the world. We include our suppliers in industry logistics programs that achieve energy efficiency targets. Direct energy consumption by primary energy source

This Page

This Page

EN16

Total direct and indirect greenhouse gas emissions by weight emissions of ozone-depleting substances by weight

Pages 20-21, 60 Direct energy consumption by primary energy source: Natural Gas - 39,349.60 MCF Electricity - 6,441,772.00 KWH Purchased Steam - 215.00 MMLB 19,378 metric tons

Pages 20-21, 60 Direct energy consumption by primary energy source: Natural Gas - 108,906.20 MCF Electricity - 14,099,224.00 KWH Purchased Steam - 473.00 MMLB 43,929 metric tons

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KPI
July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009

EN19 EN22 EN22 EN22 EN22 EN22 EN23 EN26

Emissions of ozone-depleting substances by weight Total weight of waste by type and disposal method Liquid waste to local treatment Liquid waste to deep well Solid waste Air emissions Total number and volume of spills Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

0 181,970 metric tons 24,540 metric tons 157,264 metric tons 120 metric tons 47 metric tons 0 Pages 20-21, 61, 63

0 428,640 metric tons 48,755 metric tons 379,555 metric tons 234 metric tons 96 metric tons 0 Pages 20-21, 61, 63

Labor LA Integrity is one of five tenets that define the Vision of Novus. Human Resources policy articulates the framework for hiring and conditions of employment. Adhering to the highest standards of excellence with respect to interactions with all stakeholders, employees, suppliers, business partners, our owners and the public is embedded in Novus Internationals business strategy. Total workforce by employment type, employment contract and region Total number and rate of employee turnover by age group, gender and region Percentage of employees covered by collective bargaining agreements Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region Education, training, counseling, prevention and risk control programs in place to assist workforce members, their families, or community members regarding serious diseases This Page This Page

LA1 LA2 LA4 LA7 LA8

Page 78 Page 78 6% Page 79


Novus offers pre-tax reimbursements to employees and their families for the cost of flu vaccinations. In response to the H1N1 pandemic, Novus provided anti-bacterial products and prevention training. Additionally, the company provides fitness classes at no cost to global headquarters employees.

Page 78 Page 78 12% Page 79

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KPI
Human Rights HR Novus is committed to attracting and retaining a diverse workforce that delivers strong business results. We value individuals and support professional and personal development, especially in the areas of health and wellness. Novus, as a leading global company in health and nutrition, recognizes that flexibility and access to nutritious programs and products are critical to individual performance. Through Novuss providing of free access to healthy lunches and the fitness facility at Novus headquarters, employees can incorporate wellness into their daily routine. Novus also supports self-improvement through university degree and certification programs. In 2009, Novus had zero incidents of discrimination. Child labor: Novus does not condone or allow child labor or any forced or compulsory labor in any of its operations around the world. Forced or compulsory labor: Novus does not condone or allow child labor or any forced or compulsory labor in any of its operations around the world.
July 2008 - Dec. 2008
This Page

Jan. 2009 - Dec. 2009


This Page

HR4 HR6 HR7 Social SO

This Page This Page This Page

This Page This Page This Page

SO2

Corruption, anti-competitive behavior and compliance are taken very seriously throughout Novus. In addition to an active Compliance Committee, employees are annually required to sign a Compliance form, acknowledging awareness of the importance of adherence to Novus regulations about corruption and anti-competitive behavior to continued employment. Percentage and total number of business units analyzed for risks related to corruption

This Page

This Page

Novus executed a global, self-assessment for fraud in CY2009.

Novus executed a global, self-assessment for fraud in CY2009.

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KPI
July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009
This Page

SO3

SO5 SO8 Products PR

Percentage of employees trained in organizations anti-corruption policies and procedures: All new employees receive training in anti-corruption policies and procedures. Refresher courses and training are executed annually as appropriate based on managements recommendations. Novus employees are requested annually to positively affirm their compliance with Novus Integrity System, which contains Novuss anti-corruption policies and procedures; compliance in completion of this by all Novus staff globally is 99%. Public policy positions and participation in public policy development and lobbying Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

This Page

None were developed in CY2009. 0

None were developed in CY2009. 0

PR3

Novus develops processes and product technology to improve the nutrition and health of animal livestock, companion animals and humans. Collaborating with local researchers and industry experts serves to reduce the risk from misuse of processes or product technology. Type of product and service information required by procedures, and percentages of significant products and services subject to such information requirements Programs for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship

This Page

This Page

100% of our products are registered through government agencies throughout the world. Prior to external release, all advertising, marketing and public relations materials are reviewed by Novuss Regulatory and Legal departments. There were no fines.

100% of our products are registered through government agencies throughout the world. Prior to external release, all advertising, marketing and public relations materials are reviewed by Novuss Regulatory and Legal departments. There were no fines.

PR6

PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

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Appendix
2.5: Countries of Operation
CITY Buenos Aires Melbourne Sydney Brussels Porto Alegre So Paulo Beijing Shanghai Bogota London Nantes Gudensberg Hyderabad Jakarta Milano Tokyo Nairobi Kuala Lumpur Mexico City Manila Warsaw Moscow COUNTRY Argentina Australia Australia Belgium Brazil Brazil China China Colombia England France Germany India Indonesia Italy Japan Kenya Malaysia Mexico Philippines Poland Russia Singapore Seoul South Korea Madrid Spain Taipei Taiwan Bangkok Thailand Istanbul Turkey Beaumont, TX United States Chocolate Bayou, TX United States Lincoln, NE United States Little Rock, AR United States St. Charles, MO United States Caracas Venezuela Ho Chi Minh City Vietnam OPERATION Major Sales Office Major Sales Office Major Sales Office Regional Headquarters Major Sales Office Regional Headquarters; Manufacturing Plant; Major Sales Office Research Facility Regional Headquarters; Manufacturing Plant Major Sales Office Major Sales Office Major Sales Office Manufacturing Plant Major Sales Office Major Sales Office Major Sales Office Major Sales Office Major Sales Office Major Sales Office Regional Headquarters Major Sales Office Major Sales Office Major Sales Office Regional Headquarters; Manufacturing Plant Major Sales Office Major Sales Office Major Sales Office Regional Headquarters Major Sales Office Manufacturing Plant Manufacturing Plant Manufacturing Plant Manufacturing Plant Global Headquarters Major Sales Office Major Sales Office; Research Facility

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APPENDIX

4.2, 4.3 and 4.7: Chairman and Board Members


NAME Susumu Katagiri Makoto Masuda Koichiro Sato Toshimich Okubo Masami Yokoyama Kohei Taguchi Kenichi Kitajima Tomofumi Osaki Tsutomu Sakuma Hiroyuki Honda Thad W. Simons, Jr. Alice V. Sterkel John C. Wade Steve Lorbert BOARD POSITION Director - Chairman Director - Vice Chairman Secretary Director Director Director Director Director Director Director Director Assistant Secretary Treasurer Quality Assurance Officer TITLE SVP and DOO Chemicals Divisions Director, General Manager, Finance Novus Vice President, Planning Novus Executive Vice President Novus Executive Vice President General Manager, AgriScience Division General Manager, Strategic Businesses Development Division General Manager, Investment Management Department Director, Corporate Planning Department General Manager, Nutrition Department Chief Executive Officer and President Vice President Legal Council and Chief Compliance Officer Senior Vice President Finance and Chief Financial Officer Vice President Chemistry and Quality Assurance COMPANY Mitsui & Co. (U.S.A.), Inc. Nippon Soda & Co., Ltd. Novus International, Inc. Novus International, Inc. Novus International, Inc. Mitsui & Co., Ltd. Mitsui & Co., Ltd. Mitsui & Co. (U.S.A.), Inc. Nippon Soda & Co., Ltd. Mitsui & Co. (U.S.A.), Inc. Novus International, Inc. Novus International, Inc. Novus International, Inc. Novus International, Inc.

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Trademarks

APPENDIX

ACIDOMATRIX is a trademark of Novus International, Inc.

ACIDOMIX is a registered trademark of Novus Deutschland GmbH ACTIVATE is a trademark of Novus International, Inc., and is registered in the United States and other countries ADVENT is a trademark of Viridus Animal Health, LLC, and is registered in the United States and other countries AGRADO is a trademark of Novus International, Inc., and is registered in the United States and other countries AIMS is a service mark of Novus International, Inc., and is registered in the United States and other countries ALIMET is a trademark of Novus International, Inc., and is registered in the United States and other countries ARENUS is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries ARTINIA is a trademark of Novus Nutrition Brands, LLC ASSURE is a registered trademark of Novus Nutrition Brands, LLC CAPTURA is a registered trademark of Novus International, Inc. CIBENZA is a trademark of Novus International, Inc. DHA GOLD is a registered trademark of Martek Biosciences Corporation ESC is a registered trademark of ESM Technologies, LLC FEEDGUARD is a trademark of Novus International, Inc. GLYTREX is a trademark of Novus International, Inc.

GST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries

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APPENDIX

IDEA is a trademark of Novus International, Inc. MERA is a trademark of Novus International, Inc. MFP is a trademark of Novus International, Inc.

MAAC is a trademark of Novus International, Inc., and is registered in the United States and other countries

MHA is a trademark of Novus International, Inc., and is registered in the United States and other countries MINTREX is a trademark of Novus International, Inc., and is registered in the United States and other countries NATUGUARD is a trademark of Novus International, Inc., and is registered in the United States and other countries NEM is a registered trademark of ESM Technologies, LLC NOVUS is a trademark of Novus International, Inc., and is registered in the United States and other countries OASIS is a trademark of Novus International, Inc., and is registered in the United States and other countries PRO-STABIL is a trademark of Novus Deutschland GmbH PROVENIA is a trademark of Novus International, Inc.

SANTOQUIN is a trademark of Novus International, Inc., and is registered in the United States and other countries SOLIS is a trademark of Novus International, Inc., and is registered in the United States and other countries SURF.ACE is a trademark of Novus International, Inc. STRATUM NUTRITION is a trademark of Novus Nutrition Brands, LLC STEADFAST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries ZORIEN is a trademark of Novus International, Inc., and is registered in the United States and other countries

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APPENDIX

LA1: Total workforce by employee type, employment contract and region


July through December, 2008 Employment Type Full-Time Full-Time Total Part-Time Part-Time Total Total Employment Contract Salaried Hourly Salaried Hourly Asia 131 0 131 0 0 0 131 EAME 54 6 60 0 5 5 65 LATAM NA 47 213 5 10 52 223 0 2 0 1 0 3 52 226 Total 445 21 466 2 6 8 474 January through December, 2009 Asia 171 0 171 0 0 0 171 EAME 65 11 76 5 0 5 81 LATAM 59 8 67 0 0 0 67 NA 259 22 281 2 2 4 285 Total 554 41 595 7 2 9 604

LA2: Total number and rate of employee turnover by age group, gender and region
July through December, 2008 Gender Female Age Groups Under 25 26-35 36-45 46-55 Over 55 Under 25 26-35 36-45 46-55 Over 55 Asia 0 0 0 0 0 0 0 1 0 0 0 1 1 EAME 1 3 0 0 0 4 0 0 3 2 0 5 9 LATAM NA 0 0 2 2 0 1 1 0 0 0 3 3 0 0 0 0 2 0 1 3 0 0 3 3 6 6 Total 1 7 1 1 0 10 0 1 5 6 0 12 22 January through December, 2009 Asia 1 7 1 0 1 10 1 1 5 2 0 9 19 EAME 0 0 0 0 0 0 1 0 0 0 0 1 1 LATAM 0 1 0 0 0 1 0 4 3 0 0 7 8 NA 0 6 4 0 2 12 0 2 2 2 2 8 20 Total 1 14 5 0 3 23 2 7 10 4 2 25 48

Female Total Male

Male Total Total

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APPENDIX

LA7: Rates of injury, occupational disease, lost days and absenteeism, and number of work-related fatalities by region
2008 Region Asia EAME* LATAM NA Total * Lost days: 0 SG&A Work Related Injuries 0 0 0 0 0 2009 Region Asia EAME* LATAM NA Total * Lost days: 2 SG&A Work Related Injuries 0 2 1 0 3

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4.13 and 4.14: Memberships and Associations


Alabama Poultry & Egg Association Alabama Poultry Association Alabama Poultry Producers American Association of Avian Pathologists (AAAP) American Association of Swine Veterinarians (AASV) American Chemical Society American Dairy Science Association (ADSA) American Feed Industry Association (AFIA) American Food Institute American Food Safety Institute American Institute of Chemical Engineers American Meat Science Association American Oil Chemists Society American Registry of Professional Animal Scientists (ARPAS) American Society for Nutrition American Journal of Clinical Nutrition American Society for Testing of Materials American Society of Agricultural & Biological Engineers American Society of Animal Science American Society of Mechanical Engineers American Society of Pharmacognosy American Soybean Association (ASA) American Veterinary Medical Association (AVMA) Animal Nutrition Association of Canada Asian Fisheries Society Asociacin Mexicana de Especialistas en Nutricin Animal (AMENA) Asociacin Nacional de Especialistas en Ciencias Avcolas (ANECA) Association for Corporate Growth Association of Energy Engineers Association of Registered Professional Animal Scientists (ARPAS) Broiler & Egg Association of Minnesota California Poultry Federation (CPF) Modesto, CA Carolina Feed Industry Association Center for Food Integrity Comparative Nutrition Society Council of Agricultural Science & Technology (CAST) Delmarva Poultry Industry Association Equine Science Society FCIB Federation of Animal Science Societies (FASS) Florida Feed & Grain Association Georgia Egg Producers Georgia Feed & Grain Association Atlanta, GA Georgia Poultry Federation Gainesville, GA Groundwater Protection Council Illinois Farm Bureau Illinois Pork Producers Association Institute of Food Technologists International Fishmeal and Fish Oil Organisation (IFFO) International Society of Mycotoxicology Iowa Pork Producers Association Iowa Poultry Association Iowa Turkey Federation Jordanian Agriculture Engineering Association Jordanian Businessmen Association Licensing Executives Society Louisiana Poultry Association Louisiana Poultry Federation Baton Rouge, LA Midwest Poultry Consortium Midwest Poultry Federation Minnesota Turkey Growers Association Mississippi Feed & Grain Association Mississippi Poultry Association Missouri Soybean Association National AgriMarketing Association National Animal Supplement Council National Association of Credit Management (NACM) Gateway Region National Association of Credit Management (NACM) North Central National Association of Farm Broadcasters (NAFB) National Biodiesel Board National Cattlemens Association National Chicken Council Washington DC National Coalition Food Agricultural Research (NC-FAR) National Corn Growers Association (NCGA) National Pork Producers Council (NPPC) National Renderers Association (NRA) National Small Business Association National Turkey Federation Washington DC Nebraska Poultry Industries North America Game Bird Association

APPENDIX

North Carolina Poultry Federation North Dakota Poultry Industries Northwest Poultry Council Vancouver, WA Ontario Agribusiness Association Ontario Institute of Agrologists Pacific Egg & Poultry Association (PEPA) Sacramento, CA PennAg Industries Association Pet Food Institute Poultry Middle East & North Africa Poultry Science Association (PSA) Professional Animal Auditor Certification Organization (PAACO) Society of Rheology South Carolina Poultry Federation Southern Feed & Grain Association Southern Poultry Science Association Space Solar Alliance for Future Energy (SSAFE) St. Louis Agribusiness Club Tennessee Poultry & Egg Association Nashville, TN Texas Board of Professional Engineers Texas Chemical Council Texas Poultry Federation Austin, TX The Poultry Federation Little Rock, AR U.S. Poultry & Egg Association Tucker, GA U.S. Soybean Export Council (USSEC) & American Soybean Association International Marketing (ASA-IM) United Egg Producers Alpharetta, GA United States Grains Council (USGC) University of Guelph Alumni Association Virginia Poultry Federation Virginia State Feed Association Washington University Executive MBA Alumni Board Member Wisconsin Poultry & Egg Industries World Aquaculture Association World Aquaculture Society World's Poultry Science Association (WPSA)

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Novus Matching Gift Program Recipients


100 Neediest Cases Advocates for Self Government American Cancer Society American Heart Association American Red Cross American Society for the Prevention of Cruelty to Animals (ASPCA) Arbor Day Foundation Arts & Education Council Auburn University Fisheries Alumni BJC Hospice CATO Institute Colorado College Contemporary Art Museum Dance St. Louis Disabled American Veterans Donald Danforth Plant Science Center Ecclesiastical Ladies ELCA World Hunger Appeal Friends of Tower Grove Park Guardian Angel Settlement Association Haggai Institute Hansen Foundation Heifer International Heres Life Inner City Honor Society of Phi Beta Kappa Hospice of Southern Illinois Humane Society of Missouri Huntington's Disease Society of America Iowa Foundation for Agriculture Advancement Iowa State University (ISU) Foundation James S. McDonnell USO Lambert St. Louis Airport Jewish Federation of St Louis KETC-TV (PBS) Channel 9 KFUO-FM Circle of Friends KWMU-FM Public Radio Lawrence University Leukemia & Lymphoma Society Liddy Shriver Sarcoma Initiative Maryville University Midtown Center Missouri Botanical Garden Mothers Without Borders Multiple Myeloma Research Foundation National Council on Alcoholism & Drug Abuse (NCADA) National Multiple Sclerosis Society National Tiger Sanctuary (GREEN) National Trust for Historic Preservation Office of Stewardship & Development Archdiocese of St. Louis Office of University Development Penn State University Old Settlers Partners For Madagascar Pioneer Clubs Planned Parenthood of St. Louis Princeton University Purdue University Annual Sciences Relay for Life of Avery County Robert Morris University Rotary Club of Ryde (Novus Australia) Salvation Army Shakespeare Festival St. Louis Sidney Dollars for Scholars Sister to Sister Foundation Smiser Alumni Center St. Jude Children's Research Hospital St. Louis Area Food Bank St. Louis Art Museum St. Louis Auburn Club Scholarship Fund St. Louis Food Bank St. Louis Zoo Marlin Perkins Society St. Louis Zoological Park Susan G. Komen for the Cure The Magic House The Ronald Reagan Foundations Thunderbird Annual Fund Truman State University Foundation United States Equestrian Team Foundation United Way of Arkansas United Way of Greater St. Louis University of Arkansas, Chemical Engineering Dept. University of Delaware University of New Hampshire Foundation, Inc. University of Utah Virginia Tech Foundation, Inc. Vision for Youth, Inc. Vitamin Angels West Lincoln Broadwell School Wide Horizons for Children Wyman Center XXXXY Fund Yellowstone Park Foundation YMCA of the Ozarks

APPENDIX

Contact Us
If you have comments on Health through Nutrition or would like further information, please visit www.novusint.com Alternatively, you may contact the Novus Sustainability Team by sending an email to sustainability@novusint.com or request in writing to the following address:

Novus International, Inc. Attn: Sustainability Team 20 Research Park Drive St. Charles, MO 63304 United States of America
Please provide your name, affiliation and postal and/ or email address. You may obtain an electronic copy of Novuss sustainability report at www.novusint.com

Health through Nutrition

2009 Sustainability Report

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