Hot Area # 1: Animal Nutrition and Animal Feed Additives Trend Over the past couples in the US but over the past 5+ yrs in the EU there has been significant move to away from antibiotics and generally medicated feed additives to new feed additives the can (i) replace the ones mentioned, and (ii) improve feed efficiency and animal health. The these new products include a new spin to traditional feed enzymes/yeast, adapting human health products to animals (e.g., probiotics), and new ones that are a little unproven (“magic dust”). This trend is shifting the feed additive industry structure ($30 billion) from the traditional pharmaceutical companies (Elanco, Zoetis, BASF) to a long list of new players main in the EU and US that are growing very quickly and trying to develop more alternative feed ingredients. Major meat exports are staring to follow the EU/US model so the opportunity is global not limited to EU/US. Evidence of the trend Earnings of traditional companies have declined Traditional companies have been active in the M$A market to acquire R&D and market share of the new products Market Drivers Reduction In prophylactic antibiotic use leads to growth in non-traditional and phytogenics additive sector Bans on antibiotics as a means of growth promotion has driven demand for alternatives, which has provided a boost to markets for amino acids, enzymes, natural and non- medicated feed additive substitutes. Concern that over-applications of antibiotics in animal nutrition can impact human health and antimicrobial resistance in animal, led to the ban on in-feed in the EU in 2006. Threat of regulatory oversight on antibiotic use in the US had led livestock integrators such as Tyson Food to reduce/stop the use of in-feed antibiotics. The livestock margin have been really good fir the past ~3 yrs; hence there is considerable appetitive for new technology/products Overall improved focus on improving animal health to increase feed utilization Growth of organic meat markets driving demand for alternative and non-medicated feed additives Research and Consulting Opportunity Understand scale and size of the market - Understand new players and products and which are best positioned Help identify target partnerships, acquisitions Bring new products to marker Forecast demand for livestock and new feed additives

Animal Nutrition and Animal Feed Additive Initiative Informa Capabilities In-depth understanding of global livestock markets Have done several projects this year Bring new product to market Identify M&A candidate Overall feed additive market analysis