Genus helps farmers to produce high-quality meat and milk more efficiently and sustainably, we do this by continuously producing superior breeding animals through genetic improvement, with characteristics tailed for different markets.

1

Increasing Genetic Control and Product Differentiation

To strengthen our product offering

We use the latest technology to continuously improve our own herds, investing in new technology to strengthen our capabilities, and protecting our unique position by choosing how to deploy our genes and technology.

What does success look like?

Creating better breeding animals for farmers, measured against proprietary and public indices which are weighted towards economic traits that help farmers operate more efficiently and sustainably.

How do we measure this success?

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Measures the genetic gain we achieve in our porcine nucleus herds.

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Monitors how many of our bulls are highly ranked, based on economically relevant traits for farmers.

Definition

The index measures the marginal improvement in customers’ US$ profitability, per commercial pig per year, on a rolling three-year average. Prior years’ index ratings have been updated, to reflect the latest results from genomic selection and the economic values of pork production.

Definition

The number of our generally available Holstein bulls listed in the top 100 Genomic US$ Net Merit rankings for genomically tested and the top 100 US$ Net Merit rankings for daughter proven sires.

Performance

Implementing genomic selection technology in 2013 led to a step change in genetic gain value improvement in the following years and has delivered a further improvement of US$3.24 per pig in 2018.

Performance

Genus has established a leadership position with its strength in genomic bulls, which over time will become daughter proven bulls. This is mainly driven by the growing portion of high-quality bulls sourced from our proprietary breeding programme, De Novo.

2

Targeting Key Markets and Segments

To deliver the right offering for the right customers

We target leading integrated pork producers and progressive dairy farmers globally, and offer them our superior breeding animals, semen and embryos, together with technical services, tailored to their needs.

What does success look like?

Growing volumes, particularly with progressive dairies and integrated pork producers, who focus heavily on the efficiency and sustainability of their production systems.

How do we measure this success?

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Tracks our global unit sales growth in dairy and beef.

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Tracks the growth in the number of commercial pigs with PIC genetics globally.

Definition

The change in dairy, beef and sexed units of semen and embryos delivered or produced for customers in the year.

Definition

The change in volume of both direct and royalty animal sales, using a standardised MPEs measure of commercial slaughter animals that contain our genetics.

Performance

Bovine volumes improved 5% to 18.6 million units, with growth across all regions. Sexed volumes were up 25%, reflecting a successful launch of Sexcel, which also strongly influenced the use of beef-on-dairy genetics, supporting an 8% increase in global beef. Embryo volumes increased 20%, as IVB continued to grow in large enterprise accounts.

Performance

Volumes grew 8% to 151 million MPEs, with double-digit growth in Latin America, Europe and Asia, with growth in China being particularly strong from high stockings. Royalty contract volumes also increased 7%, fuelled particularly by growth in Europe of 27%.

3

Sharing in the Value Delivered

To capture an appropriate share of the value we deliver to customers, aligning our interests with theirs

We demonstrate the value of our genetics on farm through trials and data, and link our pricing to genetic indices and our customers’ productivity.

What does success look like?

Generating profit resulting from the superior quality and performance of our products in customers’ systems.

How do we measure this success?

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Monitors porcine profitability per unit of volume.

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Monitors bovine profitability per unit of volume.

Definition

Net porcine adjusted operating profit including product development, expressed per MPE. Results include our share of Agroceres PIC, our Brazilian joint venture.

Definition

Net dairy and beef adjusted operating profit including product development, expressed per dose of semen or embryo delivered. Excludes India, as its characteristics are substantially different to the rest of our bovine business.

Performance

Operating profit per MPE was £0.56, down £0.05 (down £0.02 in constant currency), due to supply chain and porcine product development investments, to fuel future profit growth.

Performance

Operating profit per dose was £0.70, up £0.13, due to a strong sales performance of Sexcel launched in the year and with lower costs of production than the predecessor technology.

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