1. SOLUTIONS FOR COMMERCIAL ANGUS HEIFER SELECTION

3. HEIFER ENTERPRISE OPPORTUNITY years. Smallest beef cow inventory in over 70+

4. All trademarks are the property of Zoetis Inc., its affiliates and/or licensors. All other trademarks are the property of their respective owners. ©2014 Zoetis Inc. All rights reserved. NEW TOOLS FOR COMMERICAL USERS OF ANGUS GENETICS

5. HEIFER SELECTION DECISION POINTS Select heifers with most earning potential Select sires to produce the best heifer calf crop Select the best sires to breed to heifers (A.I. and/or natural)

6. Trait Correlations (%GV) for GE-EPDs Progeny Equivalents Heifer Pregnancy (HP).49 (24)12 Calving Ease Direct (CED).63 (40)22 Birth Weight (BW).66 (44)12 Milk.38 (14)15 Docility (Doc).65 (42)9 Scrotal Circumference (SC).77 (59)13 Weaning Weight (WW).56 (31)19 Yearling Weight (YW).67 (45)23 Dry Matter Intake (RADG).73 (53)17 Yearling Height (YH).73 (53)10 Mature Weight (MW).71 (50)14 Carcass Weight (CW).58 (34)6 Marbling (Marb).66 (44)9 Ribeye Area (RE).68 (46)11 Fat Thickness (Fat).64 (41)12 Maternal Traits – GE-EPD accuracy equals an average of 14 daughters’ information Growth & Efficiency – GE-EPD accuracy equals an average of 17 progeny with performance data Carcass Traits – GE-EPD accuracy equals an average of 10 progeny with carcass data GE-EPDS AND ACCURACY POWERED BY HD 50K 1

7. TRADITIONAL HEIFER SELECTION WHICH ONES WILL MAKE THE MOST PROFITABLE COWS? Visual Earliest Born Reproductive Tract Score Dam’s Production / Soundness

8. GENEMAX ADVANTAGE Simple, easy-to-use… Built from the foundation of… Marriage of…

9. GENEMAX ADVANTAGE FEATURES 1 Three GeneMax Advantage economic index scores that encompass maternal, growth, efficiency & carcass traits 2 SMART Outlier Reporting – identifies extremes for cow costs, docility, tenderness and marbling (top/bottom animals) 3 Sire Match to your Zoetis HD 50K-tested Angus bull battery

10. GENEMAX ADVANTAGE INDEX SCORES Revenue/cost assumptions consistent with Angus indexes 2 – 8 Cow Advantage Score Conception to Weaning Feeder Advantage Score Weaning to CAB carcass Total Advantage Score Conception to Carcass

11. ECONOMIC INDEX SCORES Describes Differences in Net Return (1 - 100, higher score better, average = 50) Cow Advantage Cow productivity from heifer pregnancy, calving ease, milk, cow size and growth transmitted to calf Feeder Advantage Postweaning progeny growth, feed intake & carcass merit on CAB grid. Complements GeneMax Focus gain & grade Total Advantage Total genetic contribution for productivity from conception to CAB carcass (Cow & Feeder)

12. TOTAL ADVANTAGE SCORE – RELATIVE TRAIT CONTRIBUTIONS Maternal Heifer Pregnancy, Calving Ease Total Maternal, Milk & Cow Size Growth & Efficiency Weaning Weight, Yearling Weight & Feed Intake Carcass Merit Carcass Weight, Ribeye Area, Fat & Marbling

13. SMART OUTLIER REPORTING Cow Cost from Size and Milk Identifies highest-cost cows from extremes in size & milk Bottom 5% Docility Identifies genetic potential for less desirable temperament Bottom 5% Marbling Identifies low and high marbling Top & Bottom 25% Tenderness Identifies unfavorable outliers Bottom 5%

14. GENEMAX ADVANTAGE SIRE MATCH Determine which bulls produced which daughters Minimize inbreeding Complementary mating

15. All trademarks are the property of Zoetis Inc., its affiliates and/or licensors. All other trademarks are the property of their respective owners. ©2014 Zoetis Inc. All rights reserved. USING GENEMAX ADVANTAGE FOR DECISION-MAKING

16. Registered, transferred, Black Angus sire - ideally Zoetis HD 50K tested ≥ 50% Black Angus Dam CAN I USE GENEMAX ADVANTAGE FOR NON-ANGUS COMMERCIAL FEMALES? GeneMax Advantage is for commercial females that are 75% or greater Black Angus breed composition.

17. HEIFER SELECTION DECISIONS Test heifers at weaning or bangs vaccination Rank and select replacements on Total Advantage Score Exclude outliers for cow cost and/or temperament Allocate to A.I. and/or natural service sires –Complementary mating (balance Cow & Feeder Advantage Scores – correct tenderness & marbling outliers) –Minimize Inbreeding

18. Most Likely SireSmart OutliersGMX Advantage TagSexBirth DateAssn. Num.TagReg. Num.Cow CostDocMarbTendCowFeederTotal 3ZC3/1/2013BIR 62230509310913880818[ + ]857075 27ZC3/10/2013BIR 62230501710913880818[ - ] 852550 63ZC3/24/2013BIR 62230504924215440412[ - ] 203025 GENEMAX ADVANTAGE REPORT 25 75 50 Smart OutliersGMX Advantage Cow CostDocMarbTendCowFeederTotal [ + ]857075 [ - ] 852550 [ - ] 203025 Keep Correct Cull Score 75 vs. 25 ≈ $50 /Calf 50 = Average Advantage Score

19. INVESTING IN YOUR FUTURE 1 Hughes, H., 2012. Expansion arithmetic, BEEF Magazine, pp. 12-13.

20. FOR MORE INFORMATION

21. THANK YOU! All trademarks are the property of Zoetis Inc., its affiliates and/or licensors. All other trademarks are the property of their respective owners. ©2014 Zoetis Inc. All rights reserved.

22. SUPPLEMENTAL MATERIAL FREQUENTLY ASKED QUESTIONS

23. AAA/GENEMAX LOGIN - WHAT’S MY MEMBER CODE?

24. AAA/GENEMAX LOGIN – NAVIGATION & GETTING STARTED

25. HOW DO I ORDER GENEMAX ADVANTAGE TESTS? 1.Log in to the AAA/GeneMax customer site for information and to order collectors and tests: Available at www.angusonline.org/genemax/logon.aspxwww.angusonline.org/genemax/logon.aspx 2.Obtain sample collectors Blood cards are available from the American Angus Association or Zoetis Genetics Allflex Tissue Collectors are only available through Zoetis Genetics 3.Collect samples Demonstration videos are available on the Zoetis Genetics YouTube channel, as well as via links on the AGI/AAA and CAB websites 4.Send samples to: Angus Genetics Inc. 3201 Frederick Ave. Saint Joseph, MO 64506 Phone: 816-383-5100

26. WHAT TYPES OF GENETIC SAMPLES ARE ACCEPTABLE FOR GENEMAX ADVANTAGE? Blood or tissue samples Blood cards are available from Angus Genetics Inc or Zoetis Genetics Allflex tissue collectors are only available from Zoetis Genetics Do not use Allflex tissue collectors for GeneMax Focus or HD 50K for Angus

27. HOW LONG DOES IT TAKE TO GET RESULTS? 3 – 4 weeks from the time samples and order forms are received to available results An email will alert you when the report is available on the AGI website

28. WHAT IF MY BULLS ARE NOT ZOETIS HD 50K TESTED? Angus bulls must be Zoetis HD 50K tested to enable the Sire Match feature for tested progeny Buy registered, HD 50K tested Angus bulls and request that they be transferred to you to enable seamless Sire Match assignment You may have your registered Angus bulls tested with Zoetis HD 50K either prior to or after progeny are GeneMax tested

29. WWW.GENOMEXCHANGE.COM

30. TODAY’S HEIFER ECONOMICS Adapted from Hughes, H., 2012. Expansion arithmetic, BEEF Magazine, pp. 12-13. Heifers retained in 2014 will be among the most expensive commercial replacements in history. Replacement females will need to produce and wean more than 4 calves to return a profit.

31. REFERENCES 1. Correlation between HD 50K genomic predictions and performance, and associated percent explained genetic variation. Genomic Update. American Angus Association and Angus Genetics, Inc., 2013. 2. American Angus Association/Angus Genetics Inc. 3201 Frederick Ave., St. Joseph, MO 64506. 3. Beal WE. 1998. More Milk – What’s It Cost? Angus Journal. November 1998. 4. Beal WE. 1998. Will More Milk Mean Cows won’t Rebreed? Angus Journal. December 1998. 5. CattleFax. 8110 East Nichols Avenue, Suite #301, Englewood, CO 80112. 6. Fox DG, Sniffen CJ, O’Connor JD. Adjusting Nutrient Requirements of Beef Cattle for Animal and Environmental Variations. J Anim Sci 1998;66:1475. 7. McCorkle D, Bevers S. Cow-Calf Enterprise Standardized Performance Analysis. 2009. Available at: http://hdl.handle.net/1969.1/86917. Accessed March 19, 2014.http://hdl.handle.net/1969.1/86917 8. NRC. 2000. Nutrient Requirements of Beef Cattle (7th Revised Edition: Update 2000). National Academy Press, Washington, D.C.