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2020 Financial Overview: Tönnies Leads in Organic Meat Sector International Operations See +17% Growth // Strong Performance in Early 2020 // COVID-19 Shutdown Affects Gütersloh Facility Rheda-Wiedenbrück, April 1, 2021 – Despite COVID-19 challenges, Tönnies Group maintained stability throughout 2020. The year began robustly, though performance dipped in the latter half due to the COVID-19 shutdown of the Rheda facility. Overall, the company remains optimistic about the year's outcomes. Clemens Tönnies, the Managing Partner, reflects on 2020 as a pivotal challenge for the company and its workforce. Initially, the company ramped up production to meet increased demand during the pandemic's early stages. However, a four-week shutdown at the Rheda facility, later deemed an industrial accident by the employers’ liability insurance association, impacted financial results negatively. Despite these setbacks, the overall performance of Tönnies Group was satisfactory. "Out of our 29 global production sites, 28 experienced a successful year," Clemens Tönnies remarked. The company's COVID-19 prevention strategies have set a global standard within the food industry. In 2020, Tönnies reported global sales of approximately €7.05 billion, a 3% decrease from 2019. This stagnation was attributed to lower pig prices, averaging 9.3% less than the previous year, and the temporary closure of the Rheda facility. Pig Market Dynamics The pig market faced disruptions, notably from the gastro-lockdown and an export ban due to African swine fever, significantly affecting sales. Prices fluctuated between €2.02 and €1.19 per kilogram of carcass weight. Dr. Wilhelm Jaeger, head of the Agriculture Division, emphasized the need for stable and fair prices for agricultural producers. The company supports the Borchert Commission's goals under Agriculture Minister Julia Klöckner, aiming to make Husbandry System 2 the supermarket standard by June 2021. Growth in the Organic Sector Tönnies continues to invest in the organic market, where it leads. The company processed 16.3 million pigs in Germany, a 2% decrease solely due to the Rheda-Wiedenbrück site's closure. However, international operations, including 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, marking a significant investment in beef production. Despite the ongoing gastro-lockdown affecting sales across Europe, the Badbergen site has seen success in burger patty production. Overall, Tönnies processed 420,000 cattle in Germany, a 4% decrease from the previous year. International Expansion Tönnies has aggressively pursued growth internationally, with significant investments in Great Britain, Denmark, France, Spain, and Poland. The UK market, in particular, has seen substantial growth, with Tönnies leading in several segments. Vegetarian and Vegan Market Expansion Tönnies is also expanding into the vegetarian and vegan market, with brands like “es schmeckt,” “Vevia,” and “Gutfried veggie” under Vevia 4 You GmbH & Co. KG. The company has doubled its production capacity in Böklund to meet 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 responsibilities, signaling a generational transition within the company's leadership. This overview encapsulates Tönnies Group's performance and strategic directions in 2020, highlighting resilience and growth amidst challenges.