1. 2008 Sustainability Report

2. Contents
COMPANY PROFILE ................................................................................. 3
MESSAGE FROM THE PRESIDENT ....................................................... 6
SCOPE OF REPORT .................................................................................. 8
VISION FOR SUSTAINABILITY ........................................................... 10
INDUSTRY CHALLENGES, ACTIONS AND FUTURE PLANS ........ 11
CRITICAL SUCCESS FACTORS ............................................................ 13
GROWTH ............................................................................................. 13
PROFITABILITY ................................................................................. 15
PEOPLE ................................................................................................. 18
REPUTATION ...................................................................................... 20
SUMMARY ................................................................................................ 24
ABBREVIATIONS, REFERENCES, AND TABLES ............................. 25
GRI INDEX ................................................................................................ 26
CONTACT US ........................................................................................... 28
| NOVUS International

3. Novus International, Inc. is a global leader in creating science-based
health and nutrition solutions. Over 2,500 clients in more than 80
countries trust the Novus product family to be an integral part of
their daily animal agricultural operations. The company is privately
owned by Mitsui Co. (U.S.A.), Inc. and Nippon Soda Co., Ltd. and
is headquartered in the Saint Louis, Missouri, USA area. Novus’s
Mission is to “help feed the world affordable, wholesome food.”
to deliver sustainable solutions
that improve performance for our
Company Profile customers. We feel a deep responsi-
bility to transfer the knowledge we
gain as well as the technology and
At Novus, we believe that sound innovations we develop to people
research development is the foun- around the world who can use them
dation for success in developing and to improve agricultural practices in
delivering solutions to customers. their local communities.
We believe in Performance through Novus provides products and
Innovation, which is why we employ programs for the poultry, pork, dairy,
more than 50 scientists, engineers, beef, equine, and companion animal
nutritionists and Doctors of Veterinary industries. At the end of fiscal year
Medicine to create new products and 2008 (March 31, 2008), Novus had
programs. In addition to our in-house approximately 400 employees located
expertise, Novus has developed a in 20 different countries, selling close
global network of university profes- to 70 products to support livestock
sors and academics, which helps performance, improved animal well-
to ensure that our products are being, food safety and the environ-
grounded in science and fact. Novus’s ment. Our products promote nutrition
primary research development and health, and can be divided into
center is located at the company’s technology platforms: amino acids,
headquarters near Saint Louis, but organic acids, organic trace minerals,
we also employ a global network of antioxidants, vaccines, mycotoxin
university and industry collaborators control, and enzymes and yeasts. For
to develop and test solutions for local specific information about Novus, its
needs. products and solutions, please visit
As Novus continues to grow, we our Web site at www.novusint.com.
will continue to expand our profes- Novus continues to grow through
sional networks and affiliations the innovation and performance
Company Profile |

4. l Global Headquarters of its key product lines and with the
guidance of senior management
l Regional Headquarters
and its Board of Directors. Under
l Manufacturing Plant
the guidance of President and CEO
l Major Sales Office Thad W. Simons Jr., Novus respon-
l Research Facility sibly grew sales to more than $700
million in fiscal year 2008. With the
support of our parent companies and
the Chairman of the Board, Shinji
Tsuchyia, Novus has been successful
in expanding its business by devel-
oping and providing safe, environmen-
tally-friendly products and solutions
that improve our customers’ business
performance.
Novus Corporate
Governance Statement
Corporate governance at Novus
International, Inc. is the responsi-
North America South America Asia - Pacific
Beaumont, Texas, USA Bogotá, Colombia Bangkok, Thailand
bility of the Board of Directors. The
Chocolate Bayou, Texas, USA Buenos Aires, Argentina Beijing, China Novus Board represents the inter-
Lincoln, Nebraska, USA Caracas, Venezuela Hyderabad, India ests of the Novus shareholders and
Little Rock, Arkansas, USA Indaiatuba, Brazil Jakarta, Indonesia stakeholders, including employees,
Mexico City, Mexico Porto Alegre, Brazil Seoul, South Korea
Ottawa, Ontario, Canada Santiago, Chile Shanghai, China
customers and the public. The Novus
Saint Charles, Missouri, USA Europe Singapore Board, with the advice of the execu-
Bergamo, Italy Sydney, Australia tive management team, determines
Brussels, Belgium Yunnan, China the company’s long-term strategy,
Gudensburg, Germany while the Novus management team
Madrid, Spain
Nantes, France
defines the company’s short-term
Warsaw, Poland strategies and handles day-to-day
business and operations.
In 1998, the Novus Board of Direc-
Novus products responsibly serve all of animal agriculture
Novus’s health and nutrition products and the gut and metabolic processes to develop, products to help producers improve the
programs serve virtually all of animal agricul- manufacture and support multiple lines health and nutrition of dairy cows. Based
ture –designed with our goal of sustainability of nutritional and health products for the on sound scientific research, our products
in mind. Novus’s programs consist of tailored, poultry industry. Novus serves the broiler, are safe, reliable, and efficacious. Novus
complementary combinations of products broiler breeder, game bird, layer, turkey, provides products and solutions for the
and services to maximize its customer’s turkey breeder and duck segments. transition, early-lactation, mid-lactation,
performance, addressing concerns such late-lactation and replacement heifer
as gut health and oxidative balance. These Swine markets.
programs take advantage of the science, Novus has developed a unique range
skills and knowledge at Novus to address of programs for pork producers to support Beef
concerns in all the markets we serve. animal health and performance. Novus can Novus’s complete production cycle
help producers improve animal wellbeing, programs and products for livestock deliver
Poultry increase performance rates, and direct optimal animal health and performance.
Novus has a broad range of complete feed to high-value, lean gain. Novus serves Novus helps producers effectively manage
production cycle programs and products to the swine nursery, growing, grow-finish, the health of their cattle from calf to feedlot,
meet the needs of modern poultry produc- finishing and sow segments. ultimately improving their bottom lines.
tion. Novus has over five decades of basic Novus provides products for cow/calf oper-
and applied research, development and Dairy ations, feedlots, stockers, backgrounders
manufacturing expertise in amino acids and Novus offers a diverse family of and for the receiving markets segments.
antioxidants. We utilize our understanding of complete production cycle programs and
| NOVUS International

5. Overall growth since 2002 Novus Board has made clear through
the NIS and other Novus policies
and procedures that the company
FY 02 Debt to Equity ratio will strive at all times to make deci-
sions that are not only lawful but also
2008 ~1.3
morally and ethically sound.
FY 03 In 2005, the Board chartered the
Novus Compliance Committee,
FY 04
comprised of all members of Novus’s
FY 05 senior management team as well
as shareholder representatives.
FY 06 The purpose of this committee is
to review and evaluate compliance
FY 07 issues and concerns throughout the
Novus organization. It also focuses
FY 08 on prevention, detection, response
and security, as well as to propose
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 actions for the continuous improve-
ment of Novus’s business manage-
(USD 000)
ment and operations. The matters
within the scope of the Compliance
Sales by Region FY08 tors approved and adopted the Novus Committee’s review include all legal
Integrity System (NIS), containing and regulatory matters that impact
Australia written policies to ensure that all or may impact Novus’s operations
employees understand that good worldwide. The Committee also
Latin
America
ethics and good business are synony- oversees compliance and conformity
North
America
mous when viewed from moral, by Novus with the requirements of
legal and practical standpoints. The organizations in which the company
Asia
NIS is a constant reminder of the maintains memberships and for
Board’s commitment to corporate and standards, policies or programs to
EAME
personal integrity, and prompts every which Novus subscribes. The Compli-
employee of the need to conduct the ance Committee manages compli-
business of Novus within the ethical ance issues and reports to the Board
framework adopted by the Board. The on a periodic basis.
Aquaculture bilities in the equine, pet, human and other ingredients (i.e. MINTREX, ZORIEN and
Novus Aqua is dedicated to developing non-food animal markets. NNB is focused MHA).
products with performance and innovation on developing and delivering unique,
that exceed customers’ expectations in the value-added products and technologies that Novus Pet Nutrition (NPN)
global aquaculture market. Novus Aqua can optimize the health, performance and Novus Pet Nutrition serves pet food manu-
focuses its efforts on providing products and longevity of individual animals or people. NNB facturers and ingredient suppliers to the pet
services based on sound scientific studies. is divided into three distinct business areas: food industry. Novus Pet Nutrition products
We are sensitive to current and future social, are animal health solutions that include plat-
economic, and environmental conditions. Arenus: forms for the improvement of gut health and
We offer efficient alternatives, products, ARENUS is the umbrella brand for a line reduction in oxidative stress. Novus Pet Nutri-
and services for sustainable aquaculture of finished dose form equine, canine and tion products include organic trace minerals,
and business practices. Novus products and feline dietary supplements. Arenus products methionine analogues, antioxidants, omega-3
programs address nutrition, health and the are marketed to horse and pet owners and fatty acids, enzymes and others.
environment through water treatment, probi- are sold through veterinarians, select retail
otics, hatchery products, fish meal replace- affiliates and direct to consumers via www. Novus Human Nutrition (NHN)
ment and sustainable antibiotic-free culture. arenusperformance.com. The first product Novus Human Nutrition has been
group sold under the ARENUS brand is chartered to develop and deliver unique,
Novus Nutrition Brands STEADFAST by ARENUS, a line of structural science-based products and services to
Novus Nutrition Brands (NNB) is a health products. STEADFAST products other businesses within the human dietary
segment of Novus with marketing responsi- leverage the science of Novus’s proprietary supplement and food industries.
Company Profile |

6. I’m proud to say that this is Novus’s first ever Sustainability Report
and that we will be following the G3 Guidelines set out by the
Global Reporting Initiative. Even so, monitoring environmental,
economic, and social factors were a part of our core values from the
inception of our company back in 1991.
meet the global challenges facing
Message from the President animal production. Animal wellbeing,
efficiencies of production, food safety
and environmental issues are impor-
tant challenges and critical to our
Novus is very much a customer- customers. If properly addressed,
focused company. With a reputation they provide benefits for all stake-
built on quality and reliability, we holders, not just Novus. We positively
strive to exceed customer expec- influence the industry by supporting
tations. We make every possible a shift towards responsible produc-
effort to maintain or improve our tion of food through using fewer
corporate citizenship on a global resources and offering animal protein
basis, each day earning the business producers options to reduce their
of our customers and the respect environmental impact.
of our stakeholders. We do this by
supporting and promoting compli- Critical Success Factors
ance with laws, regulations and At our annual 2008 strategic
voluntary industry standards that planning conference, we identified
protect our community, workplace four factors critical to the future
and the environment. success of Novus: Growth, Profit-
Corporate Social Responsibility ability, People and Reputation.
(CSR) or Sustainability has become Novus decided to build on these
an increasingly important part of four factors, developing strategies
doing business. We understand that and tactics to meet our goals as an
for Novus to be successful, we must organization while providing benefits
Thad Simons Jr., President ensure that our sustainability values to our stakeholders in a sustainable
are embedded in every employee’s manner. These factors are guideposts
daily activities — what employees to our people and help us deliver on
want in order to improve Novus’s our ethical, social and environmental
outlook. This ‘natural symbiosis’ responsibilities while operating with
between company and employee fiscal accountability.
activities builds new, repeatable and
sustainable business practices that Serious about food safety
help achieve the goal of “meeting the Looking first at food safety, Novus
needs of the present without compro- is very serious about this concern
mising the ability of future genera- and realizes that it is a global public
tions to meet their own needs. 1 ” health issue. Outbreaks of food-borne
This report intends to outline our disease have been documented
recent sustainability efforts as well on every continent within the past
as endeavors to make sure we are decade, some with devastating
always acting in the best interests of social and economic consequences.
our stakeholders. Sustainability at Producers at every level of the food
Novus is founded on the triple bottom supply chain are being called upon
line: social, economic and environ- to actively participate in the delivery
mental factors. While the environ- of safe products to the public. At the
mental and social factors are vital same time, consumers want to mini-
to satisfying the demands of stake- mize the use of antibiotic drugs.
holders, they also must be economi- Safe food begins at the farm
cally justified to be sustainable. level. As an example, Novus’s
We strive to assist our customers gastrointestinal health products
in finding sustainable solutions to used in drinking water and/or feed
| NOVUS International

7. balancing environmental concerns.
We are committed to protecting the
environment in all areas where we
conduct business. Our organization
works through scientific research
and development. We do this both
by using our own scientists and on a
larger scale, our global partnerships
with university and independent
scientists and experts – to create
nutritional programs that reduce
the environmental impact of animal
agriculture.
Novus raises standards of
animal wellbeing
The wellbeing of farm animals is
an increasingly important public and
Section headline here, please. political issue throughout the world
and is important from both ethical
and business perspectives. Animals
in less stressful environments have
help reduce the colonization of better performance, a lower occur-
salmonella in poultry and swine. rence of disease, and higher repro-
The animals are healthier, resulting duction rates.
in enhanced animal comfort and Novus collaborates with
optimum production efficiency. producers throughout the world to
Used in combination with our raise the standards of animal well-
coccidiostat, poultry can be effi- being. For example, Novus worked
ciently produced in a drug-free with a leading poultry producer
environment. to improve the quality of life for
turkeys that were experiencing high
Safe sourcing of rates of structural abnormalities
ingredients and mortality associated with rapid
growth. To approach this common
Safe sourcing of product ingredi- challenge for poultry producers,
ents is particularly important for the Novus created a customized nutri-
global food chain. Novus has a high tional strategy. The result: More than
quality network of vendors supplying a 40% overall decreased occurrence
the ingredients for our products, of foot pad lesions, leg weakness
and in many cases we manufacture and leg fracture. With this signifi-
the ingredients ourselves. Novus cant increase in structural health,
maintains traceability in all products the animals were able to express
we produce, so producers can rest normal behavior and had greater
assured that their animal nutrients alertness, mobility and freedom
are safe. of movement. In addition to these
Novus offers solutions for anti- health benefits, the producer
microbial safety. Our antimicrobial increased his profitability.
products reduce pathogens, mold In summary, we are delivering
and resulting mycotoxins. To be clear, a “triple bottom line. As we look
”
Novus’s solutions for health and towards the future, Novus’s goals
safety do not contain antibiotics. We and objectives will include contin-
enable producers to competitively uous improvements to build on
increase performance and profits our exceptional performance and
through the use of antibiotic-free creation of business practices that
health and nutrition programs. are truly sustainable, which will help
Novus also strives to help to feed the world affordable whole-
producers meet the nutritional some food and achieve a higher
demands of modern livestock while quality of life.
Message from the President |

8. Novus believes that doing business sustainably is an ongoing
process, and we are committed to embedding and implementing
sustainable practices in our everyday activities. This report
covers Novus International, Inc. and its major subsidiaries
from 1 January, 2007 to 30 June, 2008. It is prepared for all
stakeholders, including business partners, customers, residents of
our local communities, government agencies, non-governmental
organizations (NGOs), and our employees.
Section headline here, please.
ence. Changes in these activities will
require ongoing cooperation with
Scope of Report our customers, suppliers, and value
chain partners. These changes offer all
parties opportunities to improve the
In this report, we describe Novus’s “triple bottom line. ”
approach to sustainability, relevant The specific topics within the spec-
data, programs, projects and key trum of activities on which Novus can
activities we are executing. This focus its efforts are the environment,
includes Novus’s activities in procure- food safety, animal wellbeing and
ment, manufacturing, distribution performance. These have been four
and sales of products that are directly tenets of Novus’s operations almost
under the control of Novus’s manage- since inception and are critical to our
ment. Often, Novus can measure, industry and stakeholders.
estimate and assess the benefits and This report describes and reviews
burdens that result from our actions. activities and topics that Novus has
Where sustainable benefits are avail- pursued, in line with our Vision,
able and it is appropriate for Novus Mission and Core Values. Topics,
to influence their capture, we can projects and proposals for future
institute improvements. action will expand and continue to
This report covers selected activi- evolve within the company. They will
ties along the value chains that are take into account relevant, current
controlled by Novus, but not directly issues relating Novus’s activities and
managed by us. These are activi- our relationship with stakeholders.
ties that Novus has identified both In the future, it is possible that topics
as important and that we can influ- and projects could be presented and
| NOVUS International

9. discussed with external stakeholders staff, distributors, consultants and
to ensure that we are focused on the any other non-permanent employees
items of greatest impact for the indus- working with Novus under long- or
tries in which we operate. short-term contracts (e.g., consul-
Over time, Novus will be able tants).
to develop a basis for deriving Key Environmental parameters in
Performance Indica- this report and on our website are
tors (KPIs) that can calculated from the data supplied by
be used to monitor Novus’s production sites. Most of the
progress in sustain- data reported has been recorded by
ability activities and Novus staff or corporate management
reporting. Reporting teams as part of our normal manage-
will likely be based ment processes. Some, such as ‘Total
on information held workforce by employment type,
(or already reported) employment contract, and region’ and
by corporate offices ‘Operations identified as having signif-
and on informa- icant risk for incidents of child labor,
tion gathered from and measures taken to contribute
the businesses and to the elimination of child labor’ are
operating compa- gathered specifically for this report.
nies that are fully owned by Novus. All the data was checked, collated and
Acquisitions will be included in future confirmed by Novus management.
sustainability reports when they are Assembly and reporting of the
100% owned by Novus before the end above data and activities constitute
of our fiscal year, which is currently qualification for Report Application
31 March. Divestments during a fiscal Level C of the current guidelines of the
year and activities or operations of Global Reporting Initiative (G3). A GRI
Novus’s contract manufacturers and index and an Application Level Grid
distributors are not included in this on pages 26-27 list the performance
sustainability report. A review of indicators reported in this sustain-
our agreements will be made and a ability report.
future determination provided as to Novus is also addressing issues
Novus’s ability to report on third party that are external to the boundaries
manufacturing partner’s operations or of its activities and includes activities
activities. such as support for advanced degrees
Statistics on social data reported, in agricultural education, certification
such as number of employees, relate programs, environmental funding and
to all Novus sites, excluding agency partnerships, and responsible and
How Novus helps customers
Environment past decade, some with devastating economic Performance
Novus strives to help producers meet and social consequences. Producers at every Performance can be measured in many
the nutritional demands of modern livestock level of the food supply chain are being called ways and has many different definitions. At
while balancing environmental concerns. We upon to actively participate in the delivery of Novus, we focus on things that matter to our
are committed to protecting the environment safe products to the public. customers. Challenges that customers face
in all areas where we conduct business. can come from many directions: economic,
The organization works, through scientific Animal Wellbeing the environment, competitors, regulators,
research and development, to create nutri- The wellbeing of farm animals is an consumers, and their own internal hurdles.
tional programs that reduce the environmental increasingly important public and political Given the global nature of our business and
impact of animal agriculture. issue throughout the world and is important variation of the issues across species we
from both ethical and business perspectives. serve, Novus has many opportunities to help
Food Safety Animals in less stressful environments have our customers.
Food safety is a global public health issue. better performance, a lower occurrence of
Outbreaks of food-borne disease have been disease and higher reproduction rates.
documented on every continent within the
Scope of Report |

10. As we finish our first 17 years, we have created a global
organization with strong commitments to sustainable business
practices. We will continue to grow and expand, all while using our
Vision, Mission and Core Values as tools for aligning our activities
and improving our leadership role in the industry.
Novus’s business strategies and
Vision for Sustainability actions flow directly from the Vision,
Mission and Core Values – this
includes embedding sustainable prac-
tices in every employee’s activities.
Novus takes the industry’s challenges:
performance, the environment, food
Vision • Mission • Core Values safety, and animal wellbeing very
seriously and as such, they form an
integral part of our corporate objec-
tives regarding growth, profit, people
Performance Growth and reputation.
Environment Profit
Food Safety People Vision
■ To help feed the world afford-
Animal Wellbeing Reputation able, wholesome food and
achieve a higher quality of life.
Mission
■ Make a clear difference in
Novus’ business strategies and actions stem directly from the company’s vision, mission and core values. This includes sustainably meeting the
embedding sustainable practices in every employee’s activities. growing global needs for
nutrition and health.
Core Values
■ Maximize long-term customer
satisfaction: anticipate their
needs and exceed their
expectations.
■ Provide products with
demonstrable value: research
leading-edge concepts and
supply preferred products and
services.
■ Act with integrity: treat all
stakeholders – employees,
customers, suppliers, business
partners, our owners and the
public – in a fair and ethical
manner.
■ Protect our employees, the
public and the environment:
make health, safety,
security and environmental
considerations a priority in all
that we do.
■ Seek excellence from all
employees: expect and
support alignment, diversity,
individual growth, initiative
and teamwork.
10 | NOVUS International

11. At Novus, we believe in empow-
ering those working in animal
agriculture – from farm to table
– with the tools and knowledge to
make a positive impact in their local
communities and the world. Our
core vision: “help feed the world
affordable, wholesome food and
Industry Challenges, Actions achieve a higher quality of life”
helps us realize scientifically-based
and Future Plans innovations that address the key
challenges facing the global animal
agriculture industry. Sustainability
Objectives: Highlights: 2007-08 Directions:
Focus on things that matter to our Partnered with the University 2009 and Beyond
customers because their challenges of Illinois to demonstrate the value Provide innovative health,
impede them from achieving optimal of amino acid supplementation nutrition, safety and quality solutions
performance. in commercial dairy herds and that improve performance and
Performance
Address challenges that come concluded that quality and volume deliver benefits to our customers and
from many directions and stake- of food could be increased while their stakeholders.
holders: economic, environment, lowering the cost of production. Develop new and/or improved
competitors, regulators, consumers Developed the IDEA screening solutions that provide a higher
and customers’ own internal hurdles. tool to enable producers who use ROI for our customers as well as
Use and share knowledge and Distillers’ Dried Grain with Solubles sustainability characteristics.
skills to improve performance against (DDGS) as a feed ingredient to easily Continue implementing the Novus
any number of factors, globally and accurately test the nutritional Management System so we can
across all species served. value of the raw materials. improve our managerial leadership,
Launched Steadfast Equine, a which will result in improved
total structural health supplement that performance for Novus and its
helps horses of all ages maintain their customers.
peak performance and wellbeing.
Objectives: Highlights: 2007-08 Directions:
Through scientific research and Successfully passed the Amer- 2009 and Beyond
development, create nutritional ican Chemistry Council’s Responsible
programs that reduce the Care audit of Novus’s headquarters Long-term plans are to continue
environmental impact of animal and Chocolate Bayou sites - no major reporting using the GRI format, and
agriculture. findings. continue to attain a high-level of
Environment
Help producers meet the Invested $20 million in a new disclosure across Novus’ s own
nutritional demands of modern global headquarters and expansion operations.
livestock while balancing of the Research Center, designed Regularly review the opportunity
environmental concerns, including within the environmentally-focused to develop new sustainability
improved use and management of framework of the U.S. Green Building projects in each of our world
inputs and waste. Council’s LEED program. areas to develop win-win-win
As feasible, protect the Novus’s blending plant in Indaia- opportunities for Novus, our
environment in all areas where we tuba, Brazil sustainably designed. customers and other stakeholders.
conduct business. Facility collects, cleans and or sepa- Continue developing and investing
rates water, waste, and recyclables in solutions that reduce consumption
and minimizes energy use through of natural resources, improve use or
smart control systems. conversion of nutrients and reduce
waste to the environment.
Industry Challenges, Actions, and Future Plans | 11

12. is about finding new ways of living,
working and innovating that meet
individual, business, and society
needs without compromising
the needs of future generations.
We continually work as an orga-
nization to assess how we can
gear ourselves through innova-
tive thought and action towards
sustainable business practices and
product offerings.
Objectives: Highlights: 2007-08 Directions:
Increase awareness and oppor- Developed a test model with the 2009 and Beyond
tunities to improve management and University of Georgia for measuring Deliver quality to our customers
control of food safety as it is a global the effectiveness in reducing trans- by being present for initial new
public health issue. mission of Salmonella in broilers. product processing and trials at our
Reduce the outbreaks of food- The tests showed organic acids are customers’ locations.
Food Safety
borne disease globally, by providing an efficient tool for improving food Expand our geographic reach,
appropriate preventative and inter- safety. especially in underserved markets,
vention-type products and advice. Grew ADVENT® sales in the where we can improve animal
Actively participate in the delivery poultry market for control of agriculture and key aspects of food
of safe products to the public and coccidiosis. ADVENT® coccidiosis safety.
help producers develop efficient control vaccine stimulates high Continue to work with our
systems to meet current and new protective immunity, reducing drug network of partners and customers
regulatory food safety requirements. resistance and allowing antibiotic to understand their issues and
free production. develop solutions and programs that
Introduced CapturaTM AF, a free will improve food safety, globally.
flowing mycotoxin binder specifically
designed for the African market to
control aflatoxins in animal feed.
Objectives: Highlights: 2007-08 Directions:
Ensure that our customers Worked with customers in China 2009 and Beyond
understand all the resources Novus to reduce skin infections on poultry
has to improve the wellbeing of farm farms by using a combination of Our long term plans are to
Animal Wellbeing
animals. education, advice and training, continue reporting using the GRI
Based on the local hierarchy of resulting in better overall health and format, and eventually reach
needs, work with producers to inte- lower mortality rates. complete disclosures in all areas.
grate valid, global public and political Worked with producers to Work on establishing new
concerns as well as balance ethical improve their sourcing by using tools for sharing Novus’s and our
and business perspectives. IDEATM, a non-intrusive test kit devel- industry’s knowledge in a non-
Develop programs that provide oped by Novus, to help producers commercial setting.
less stressful environments for determine amino acid digestibility of Expand training and education
animals and this will result in better proteins for animal consumption. efforts with universities and our
performance, a lower occurrence Expanded sales of OASIS® customers in order to raise standards
of disease, and higher reproduction hatchling supplement, which is a as well as gain insights to key global
rates. hydrated nutritional formulation and regional issues facing them.
specially designed for the first days
of life for poultry.
12 | NOVUS International

13. In order to grow responsibly, Novus identified four Critical
Success Factors — Growth, Profitability, People and Reputation
— that are the cornerstones in keeping our organization focused
on factors important to our stakeholders.
partners to develop and innovate
value chains, discovering new ways
of improving the food supply. Our
Critical Success Factors teams also identify methods to
upgrade food quality and nutritional
value in emerging economies.
One example of growth is through
Growth our partnership with Martek Biosci-
ences Corporation. Novus sells their
Continually assess and high-quality, all-vegetarian source
develop our portfolio of of omega-3 fatty acids used for
products, customers and enrichment in food production. The
suppliers, and implement product is a dried, non-GMO, whole-
performance-enabling cell algae that offers an eco-friendly
programs and technologies sustainable supply instead of relying
to achieve a long-term on fish oil. It has a higher efficiency
competitive position. of DHA incorporation than fish oil.
At Novus, we are constantly This makes it a more environmental
looking for new ways to grow our source of DHA enrichment, and
company responsibly and in line it still delivers the proven human
with our critical success factors. We health benefits of DHA.
endeavor to expand our product line
with new products in new markets, Increase Animal-Based
and become even more sustainable Food Supply
in all that we do. The company’s
growth will involve: partnerships -To increase animal productivity
and/or licensing agreements, acqui- while lowering operating costs.
sitions, organic development and To demonstrate the value of
geographic expansion. amino acid supplementation, Novus
As part of organic growth, our partnered with the University of
Research and Development depart- Illinois to conduct field demonstra-
ment diligently works to create new tions in commercial dairy herds. The
products that are environmentally goal of the study was to explore the
friendly yet deliver the best quality effect of simple methionine supple-
and economic returns possible. Our mentation. The study concluded
Marketing, Sales and Operations that a producer could generate
teams are exploring viable opportu- a 5:1 increase in milk and milk
nities to meet the needs of currently components by following the Novus
underserved markets around the program. The program can help
world. They do this by working with increase the quality and volume
Critical Success Factors | 13

14. not-for-profit organization formed
Corporate Council on Africa to build trust and confidence in the
U.S. food system. It was formed
The Corporate Council on Africa (CCA) is at the forefront of strength- to serve as a resource where
ening and facilitating commercial consumers and other stakeholders
relationships between the United could find accurate, balanced infor-
States and the African continent. mation about the food system and
CCA works closely with govern- engage in constructive dialogue
ments, multilateral groups and on important issues affecting the
businesses to improve Africa’s production and supply of food in the
trade and investment climate, and United States.
to raise the profile of the conti- Globally, today’s food systems
nent within the U.S. business are comprised of many interdepen-
community. CCA’s June program, dent segments, from the farmers
“Investing in Agriculture Links in and ranchers who grow and raise
Africa, brought together potential
” our food, to the processors and
business partners and provides food companies that package food
Novus an opportunity to develop a products, to the restaurants and
sustainable business in nations that retail outlets that make it available to
will need to improve food quality consumers.
and supply for nearly 1 billion The food system is constantly
people. changing and we want to provide
As a gold sponsor for the event, Thad Simons and United States Secretary of information that helps consumers
Novus hosted a workshop titled, Agriculture Edward T. Schafer understand those changes and a
“Education and Knowledge Building in Agriculture Production. Novus ” forum for stakeholders to discuss
brings together partners that are investing in reducing risk and expanding them.
their business presence in Africa. Novus and the CFI believe the
“At Novus, we work to empower emerging markets by transferring our entire system can learn from indi-
knowledge in the latest research and technologies related to animal health vidual companies or associations
and nutrition, explains CEO Thad Simons. “The Corporate Council on
” that have embraced sound principles
Africa is providing a platform for this type of open knowledge exchange. and model best practices in agri-
We applaud their efforts and are proud to be in partnership. ” culture. Sound principles and best
practices can help the entire system
improve performance and reduce
of food while lowering the cost of the number of food safety incidents.
production. This makes wholesome Novus acts as a guide and offers
food accessible to a greater number products, principles and best prac-
of people. Improving performance tices that enable food chain partici-
in animal agriculture and thus food’s pants to meet regulatory challenges
affordability and accessibility is in their operations, and achieve
particularly important today, with profitable and responsible business
increasing hunger becoming a more solutions. Our involvement in the
important global issue every year. CFI underscores Novus’s commit-
Novus has practical experience ment to provide sustainable solu-
in improving overall performance tions that positively influence the
and reducing structural problems, food chain, environmentally, socially,
increasing yield in both poultry and and economically.
Improving performance in animal agriculture and thus pork industries.
food’s affordability and accessibility is particularly Improved Sustainable
important today. Food Safety Environment
- Helping build consumer trust
and confidence in contemporary -Help producers meet nutritional
food systems by sharing practical demands of modern livestock while
information with customers and balancing environmental concerns.
consumers to help them under- Minerals in the diet of farm
stand how to prevent the spread of animals are essential for optimum
disease. nutrition and performance, but
Novus is an active participant they pose real environmental
and Board Member of the Center challenges. Many nutritionally-
for Food Integrity (CFI). The CFI is a important minerals are very diffi-
14 | NOVUS International

15. cult to absorb through an animal’s Reduced EnerGy
digestive system. Novus created Consumption
special formulations of organic
trace minerals (OTM) that have high In 2007, Novus identified that one
digestive absorption rates. of its products, a key product in the
Novus’s OTMs are more bioavail- performance management area, had
able to the animal at the point more benefits than its intended use
of absorption compared to other of moisture management through
sources of trace minerals. This emulsification. Working with a
product provides higher mineral German customer, we found that the
availability to the animal, better product’s emulsifying action helped
performance and a significant posi- reduce their energy consumption at
tive financial impact for the farmer. the feed mill. The resistance of the
Users reduce the amount fed to feed produced in the mixer/pelleter
their animals, while getting better was lower and there was less wear
performance and a calculated ROI of and tear on their equipment.
about 5:1 from using Novus’s OTM
solutions.
Novus’s mineral programs
achieve farmers’ goals of animal profitablility
performance and profitability with a
positive environmental impact with Implement improved busi-
reduced levels of minerals that enter ness processes, measures
the environment. and supporting systems that
will move Novus closer to
its customers and deliver
Novus has implemented quality programs and maintains increased year-over-year
market value.
traceability for the products we produce, so producers can rest Profitability is a key ingredient to
sustainability as it is part of the triple
assured that the Novus products ingested by animals are safe. bottom line that includes social and
environmental factors.
Renewable Fuel Sources
Amino acid nutrition is extremely -Create solutions that help
important in protecting the environ- producers get the maximum value
ment. Novus works with customers of by-products from renewable fuel
to develop feed formulations that production.
deliver specific nutrients required Novus is developing technologies
by livestock. When the feed achieves to help customers get maximum
this, the precise dosing results in a value of the by-products from
reduction in the amount of manure renewable fuel production. Novus
produced and minimizes the impact developed a screening tool to
on the environment. enable producers who use Distillers’
Novus is co-sponsor of the Dried Grain with Solubles (DDGS) as
Responsible Nutrition Project with a feed ingredient to easily and accu-
Sindirações, a trade organiza- rately test the nutritional value of
tion in Brazil. This project brings the product. DDGS, the by-product
together producers, academia and of corn-derived ethanol produc-
allied industry partners around tion, offers both opportunities and
nutritional strategies to reduce challenges for livestock producers.
environmental impact of pork and DDGS are an inexpensive livestock
poultry production. A Responsible feed alternative, but their nutritional
Nutrition Guide combining the content is highly variable. In order to
findings of the group’s research optimize muscle gain for a produc-
and practical suggestions to er’s livestock, Novus developed a
reduce nitrogen, phosphorus and test kit that helps determine amino
trace mineral pollution is being acid digestibility of DDGS. The
finalized and is expected to be result is more precise formulation
published in early 2009. of diets that improve profitability
Critical Success Factors | 15

16. by lowering feeding costs while The use of local by-products
reducing nitrogen excretion into the and feedstuffs can help producers
environment. Additionally, Novus greatly reduce their operating costs.
offers a line of enzymes to make the However, one of the challenges is
DDGS more digestible. assuring the quality and nutritional
Novus also recognizes that the value of these products. Novus helps
issue of non-fossil energy sources by applying a deep knowledge of
is an important concern facing our food quality control with the use of
global community. We have made antioxidants. Our technologies help
producers leverage local resources.
One example: Novus is helping
Novus: An Active Member of Key Associations aquaculture producers develop
Name Description Role/Activity programs to support community-
ACC American Chemistry Council Member based fish meal production. The
rapid growth of aquaculture as an
ADSA American Dairy Science Association Member
industry has spurred the demand
Member and for, and price increases of, fish meal.
AFIA American Feed Industry Association
Committee Member
Novus offers sustainable solutions
Arbeitsgemeinschaft Qualitätsmanagement that allow our customers to reduce
AGQM Biodiesel e.V. (Biodiesel Quality Member fish meal use and offer improved
Management Association)
animal nutrition. Novus’s platforms
CCA Corporate Council on Africa Member to improve lean muscle gain and
CFI Center for Food Integrity Board Member gastrointestinal health of aquacul-
Feed Additive and Premixture Quality System ture resulted in the development of
FAMI-QS Asbl Member a product that partially substitutes
European Association
FEFANA EU Feed Additives Premixture Association Member fish meal without compromising
performance. The fish meal is
GAA Global Aquaculture Alliance Member
supplemented with a Novus product
NASC National Animal Supplement Council Member that is a source of methionine,
NCC National Chicken Council Allied Member organic calcium and organic acid to
NPPC National Pork Producers Council Member optimize overall performance at a
PFI Pet Food Institute Associate Member lower cost. By leveraging Novus’s
products and approach, fish meal
PSA Poultry Science Association Member
that is both consistent in quality and
Safe Supply of Affordable Food affordable can be produced at the
SSAFE Member
Everywhere, Inc. local level. Producers can also enjoy
UEP United Egg Producers Allied Member the business benefit of significantly
WAC World Affairs Council Member reduced feed expenses because the
WAF World Agricultural Forum Board Member transportation and possible importa-
tion costs are reduced.
WAS World Aquaculture Society Member
Fresh Water Conservation
alternative fuels an area of strategic - Create new technologies to
development and created a unique protect water and its conservation.
biodiesel stabilizer based on our Aquaculture represents the
deep knowledge of antioxidants. fastest growing sector of global food
Novus’s biodiesel stabilizer prevents production and is highly dependent
oxidation from exposure to air, heat, on the use of fresh water. Novus
light, trace metals, and temperature is contributing to the conservation
variations - allowing customers to of fresh water through our new
utilize biodiesel over a longer time aquaculture initiative that helps
period. This makes biodiesel a more producers lessen the environmental
practical alternative. impact of aquaculture.
For example, Novus developed
Use of Local By-products an amino-acid based dietary supple-
-Help producers greatly reduce ment that makes feed highly digest-
their operating costs through the ible for carp, the most farmed fish
use of local by-products and feed- species in the world. With the Novus
stuffs that are of high quality with solution, the level of undigested
nutritional value. food passing into the water from
16 | NOVUS International

17. Novus Receives
NASC’s Best
Manufacturing
Practices
Certification
Arenus joined the National Animal
Supplement Council (NASC) in November
2006 and successfully completed the initial
Best Manufacturing Practices Certification
audit from NASC in June 2008. Arenus
received an “A” in the audit, which is
the highest possible rating. The NASC
is a voluntary certification organization
that provides guidance to the companion
animal health products industry for compli- fish as pollution is reduced. From Responsible Care
ance with regulatory standards. Members a business perspective, producers ManaGement System
must demonstrate compliance by: using enjoy higher performance in their (RCMS)
accurate labels with complete ingredient fish populations and improved feed
listings, not making unsubstantiated claims costs through optimized rations. -A managed approach
on labels or in advertisements, manufac- The result: better returns for farmers to environment, health,
turing products under rigorous quality and less of an impact on the envi- safety and security.
standards, and ensuring the safety of the ronment. Novus is also working on Novus is RCMS-certi-
the ingredients by tracking adverse events. a complementary product line to fied by the American
Even though this certification is not obliga- improve water quality at the pond Chemistry Council (ACC).
tory to sell supplements in the companion that will further contribute to fresh Novus passed the RCMS, third-party
animal industry, Novus completed this water conservation. audit of our Chocolate Bayou, Texas
rigorous audit. Novus also sees opportunities and Headquarter facilities. An RCMS
to improve conservation at its own framework helps deliver results in
facilities. Working together with the community awareness and emer-
city of Indaiatuba, Brazil, Novus gency response, security, distribu-
installed a system for collecting tion, employee health and safety,
rainwater to be treated and reused pollution prevention, process safety
by our plant and municipality. We and product stewardship.
are expecting to collect over 80,000
liters of rainwater per year.
Certifications
Chocolate Little
Gudensburg, Brussels, Indaiatuba, Shanghai, Headquarters,
Bayou, Rock,
Germany Belgium Brazil China Missouri
Texas Arkansas
FAMI-QS 4 4 4 4 4 4
GMP+ 4 4 4 4
ISO14000 4
ISO9001 4 4 4 4 4 4
NASC 4
Safe Feed/ Iso22000
4 4 EUREPGAP
Safe Food (HACCP)
Critical Success Factors | 17

18. Product Stewardship products have been established
Environmental ProGram – based on thorough evaluations of
EHSS data.
Health, Safety, Product stewardship goes Potential risks are characterized,
beyond just complying with envi- regulatory compliance is assured,
and Security ronmental, health, safety and secu- and risk management practices are
(EHSS) rity (EHSS) regulations. It expands
the focus of an EHSS program
established where necessary and
appropriate as an integral part of
Novus has a strong commitment to to include minimizing product the decision on whether and how a
environmental responsibility, health, safety, risk from inception, past the point product is marketed. The results of
and security. We responsibly design our of sale to ultimate disposal. It the Product Safety Assessment are
manufacturing process, operational and emphasizes interaction with the communicated through Material
transportation-related procedures with a customer to assure proper use and Safety Data Sheets (MSDS), labels,
focus on safety. Our record of protecting the to learn more about possible health and supplemental product steward-
public is bolstered by our strong ties to the or environmental impacts. Our ship information as applicable.
communities in which we operate, and an code provides a way to manage a Novus continues to monitor prod-
active and open communication effort. We product through its life cycle. It also ucts even after they are marketed. As
are dedicated to providing a safe and healthy encourages continuous improve- new health and safety data or new
workplace for all of our employees. ment in the EHSS fields, always product use and exposure informa-
The dedication of Novus to protecting looking for better ways to make tion become available, the informa-
employees and maintaining the highest a safer product, to educate our tion is analyzed and adjustments are
safety standards was recognized in 1996 customers and to encourage their made to the Product Safety Assess-
when the U.S. Occupational Safety feedback about our products. ment, if needed.
Health Administration (OSHA) awarded our Novus has a product steward-
Chocolate Bayou manufacturing facility with ship risk evaluation and manage-
the OSHA Star Award. This award, OSHA’s ment system in place. Our practice people
highest honor, recognizes outstanding safety is to evaluate products through all
and health standards. The Chocolate Bayou stages of their life cycle to be sure Provide a healthy work-
plant has retained OSHA Star status every that they: life balance and accelerate
year since 1996. ■ Deliver benefits to the development of employee
■ Novus believes that all injuries, as end user. programs that provide current
well as safety, environmental, secu- ■ Are safe and environmentally and future opportunities for
rity and transportation incidents, sound. personal, professional and
are preventable. As such, our goal ■ Meet product regulatory corporate growth, while
for all is zero. requirements of the countries adhering to our core values
■ Our manufacturing and research in which we do business. and management systems.
and development facilities have Novus conducts a formal People are the core of our organi-
had no reportable environmental Product Safety Assessment on zation. We empower our employees
releases since the inception of most new or modified products. so we all have a shared sense of
Novus in 1991. These assessments address commitment to responsible behavior
■ There have been no reportable matters such as determining a and business practices. In doing this,
transportation incidents in the clear understanding of product Novus endeavors to maintain open,
history of the company. characteristics and expected uses. honest and fair communication
The assessment also includes for the benefit of all stakeholders.
conducting a review of available Novus actively seeks out opportuni-
health, safety, environmental, ties and tries to create an environ-
exposure and regulatory informa- ment within the company that chal-
tion. The nature of Novus’s busi- lenges norms and keeps employees
ness is such that many of our feed thinking forward in order to deliver
ingredient and vaccine products fresh ideas.
have been evaluated by the U.S.
Food and Drug Administration LearninG Individual
(FDA), the U.S. Department of Agri- Development
culture (USDA), the Association of
American Feed Control Officials Manager Once Removed (MoR)
(AAFCO) or other appropriate Mentoring Process
agencies in the United States and Novus takes the individual devel-
other countries in which we manu- opment of its employees very seri-
facture or market such products. ously and therefore has instituted
Regulations on the use of such the MoR Mentoring Process. MoRs
18 | NOVUS International