2020 Financial Report: Tönnies leads in the organic meat sector.

2020 Financial Overview: Tönnies Leads in Organic Meat Sector +17% Expansion at Global Sites // Robust Growth in Early 2020 // COVID-19 Shutdown Affects Gütersloh Facility Rheda-Wiedenbrück, April 1, 2021 – Despite COVID-19 constraints, Tönnies Group maintained stability throughout 2020. The year began strongly, though performance dipped in the latter half due to the COVID-19 shutdown of the Rheda facility. Overall, the company views the year positively. Clemens Tönnies, the Managing Partner, reflects on 2020: “The pandemic year was unprecedented for our company and staff. Initially, we ramped up production at the government's request, but the Rheda plant's four-week closure and subsequent production reductions, now deemed an industrial accident, impacted our financials.” Despite challenges at Rheda, the group's overall performance was satisfactory. “Out of our 29 global production sites, 28 had a successful year,” Clemens Tönnies notes. The company's COVID-19 prevention efforts have set a global standard in the food industry. In 2020, Tönnies reported global sales of approximately €7.05 billion, a 3% decrease from 2019, attributed to lower pig prices (averaging 9.3% less than in 2019) and the Rheda plant's temporary closure. Pig Market Fluctuations The pig market experienced significant disruptions, particularly from the gastro-lockdown and export bans due to African swine fever in Germany, affecting international sales. Prices per kilogram of carcass weight saw considerable variation. Dr. Wilhelm Jaeger, Agriculture Division head, emphasizes the need for stable, fair prices for farmers and societal acceptance of agriculture. The company is nearing its goal of making Husbandry System 2 the supermarket standard by June 2021. Growth in Organic Sector Tönnies continues to invest in open-front barns and the organic market, leading the sector with promising growth prospects. In Germany, Tönnies processed 16.3 million pigs, a 2% decrease solely due to the Rheda-Wiedenbrück site's closure. However, international sites, especially in Denmark, Spain, Great Britain, and Poland, saw a 17% increase, processing 4.5 million pigs. Beef Division Expansion The new Badbergen Beef Competence Center has begun operations, reflecting Tönnies' commitment to integrated meat production. Despite the ongoing gastro-lockdown affecting sales, the beef division, particularly burger patty production in Badbergen, showcases the company's investment success. International Expansion Tönnies is aggressively expanding internationally, with significant investments across the UK, Denmark, France, Spain, and Poland. The UK market, in particular, has seen substantial growth, with Tönnies leading in several segments. Vegetarian and Vegan Market Development Tönnies is also advancing in the vegetarian and vegan meat substitute market, consolidating its brands into Vevia 4 You GmbH & Co. KG. The company has doubled its production capacity in Böklund in response to growing consumer demand. Sustainability and Generational Transition The Tönnies Group is committed to becoming the most sustainable food company through its t30 sustainability agenda. Maximilian Tönnies is increasingly taking on leadership roles, marking a significant generational transition within the company.