Ouro Fino Saúde Animal Participações S.A. (BVMF:OFSA3)
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Investor Day 2023

Mar 22, 2023

Juliana Matthes
Corporate Communications Team, Ourofino Saúde Animal

[Non-English content]

Speaker 2

Good morning, everyone. Welcome to the Ourofino Day 2023. Most of you are aware of our history, of our heritage, and we are here in order to update you towards our strategies of the pet health. For those of you who are following us for the very first time, welcome. My name is Juliana. I am Ourofino collaborator, and I am very proud to be part of this history for 12 years. Now we are live streaming from our headquarters, Cravinhos, the countryside of São Paulo State. And we have our plants here, our labs, and also our administrative department. For the second year in a row, we are celebrating the Ourofino Day in our studio. Yes, we have this structure with Ourofino and also all the structure. We also have the Amigo Pet.

Ourofino is the fourth vet company up for sale, according to the industry for the pet health. We act in all the sectors of the pet health. However, we are just starting, and we have endless possibilities to reimagine the pet health.

Juliana Matthes
Corporate Communications Team, Ourofino Saúde Animal

[Non-English content]

Speaker 2

You can be visionary. However, in order to find, to understand the future, you need to challenge the current moment and to provoke the way you think at every single day. When we seek for a dream, we then rely and we do something that's huge. Your dream might be the dream of thousands of people, those who inspire you, those who provide you joy, and you can also be inspiration for others. Life has strengthens once we think about a better day. We hold capacity to produce and the world thanks us. When we've got a more strengthened relations, you start to understand our purpose. The more we take into consideration the principle and the current moment, we are then able to think about the future, and we want to go beyond. We want to connect our lives through well-being, health, growth and understand a new relation.

We want to keep a very constant movement, long-lasting. We want to challenge the current moment, and that is essential for all of us. We are Ourofino, and Ourofino is each and every one of us.

Juliana Matthes
Corporate Communications Team, Ourofino Saúde Animal

[Non-English content]

Speaker 2

Yes, we are Ourofino, and Ourofino is each one of us. Many people, they are very curious and ask: Why Ourofino? Ourofino is the homage of a city in the south of Minas Gerais state. Confins is a city where our founders were born. We've learned how to challenge the conventional thinking by seeking superior results. We've planned for the Ourofino Day 2023, and we will be here until noon. You can also ask questions using the chat. At the end of the presentations, our Board of Directors will be at your disposal in order to answer your doubts and queries. We have here Kleber Gomes, Marcelo Silva, Strategic and New Businesses Development Manager, Angelo, Research and Development, Ferdinando Almeida, and our directors from our business units, Fabrício Oliveira from Production, Veronica, and also Rui Nóbrega, who is under control of the international operation.

We also have Kátia Lobo, who is our People and Sustainability Manager. We are now starting, and Kleber Gomes, he has a team formed by 1,200 collaborators, and Kleber is going to complete three years for Ourofino. However, his story has started many years ago. Yes, but it's going to be 16 years, and three years in the Board of Directors. I'd like you to please go through that. Have a nice day. Thank you.

Kleber Gomes
CEO, Ourofino Saúde Animal

[Non-English content]

Speaker 2

I would like to thank you for being here and for your availability to be here. We've planned this event very carefully, and we want to provide you very useful information for your decision-making process. Thank you very much for your presence, and we would like you to be here for the whole time. We will be able also to answer all the questions that you might got. As Juliana mentioned, when I joined the Board of Directors, April 1st, 2020, it was a pandemic, and I was taking over a new position. We've got an ambition, and we want, and we truly want to be the most admirable company in Latin America, which means that we are growing even more, and we are the fastest organization on the market. What moves us on a daily basis, it's a purpose.

We wake up every single day to reimagine the health life, the pet health, by enhancing the livestock and providing support for farmers. We have a growing population and people, they need to have protein, and technology enhances productivity, availability, food availability in our world. Besides that, technology allows us to have sustainability for the livestock, for the production of proteins, and the consumption is also about sustainability. Our purpose also comprehends company animals. We want to enhance the livestock, pets, dogs, cats, who are part of our lives. Oftentimes, animals, they bring us a very good position in life. It's very good to have a pet. Our purpose, being very noble, our purpose to come here is about the pet life. However, we also have got some values.

One of the first questions that I mentioned here at Ourof ino was to go through to develop new strategies along with our team who have got the possibility to support us in our three values. They are very important, and they are very powerful. Why is that? Because everybody knows it is very clear. We want to play to win, we want to take care of people, and we want to connect with the world. We have the connect with the world. We are a technological organization. We have research and development department, and we want to have technology in our DNA. That would not be possible if we did not have a very good team, and that is towards the development journey, and it is all about our people who will be able to support others, our customers, our partners, and also the communities. That is our guideline.

We need to seek for new instruments and tools in order to know about our future and to align our purpose. We want to be the most admirable organization in Latin America, and we have got very good results. Talking about culture, I am going to be showing you, and I am very proud to mention that Ourof ino is the number one organization for the agribusiness, and we have got this prize. We know that the agribusiness is very important, and the GDP is also important for our country. We have giant organizations in the country, even though we are the very first one, considering the Great Place to Work certification.

We are acknowledged by FIA as one of the best pharmaceutical organizations. If we take into consideration our segment, we are the best pharmaceutical company on the market. We also are number one, considered the Great Places to Work.

In a macro view, we have got very good prizes, 11th largest industry in Brazil. We are among the 150 organizations that are very good to work from. We have this range. We are in the 52 position considering all the companies in the sector. We want to have a very good environment to work, and we are in the right pathway. We also have got different learnings towards innovation, which is about being the most admirable organization in Latin America, and I would like to emphasize the ESG innovation. Besides that we are among the rank, we are in the second position of the agribusiness technology. Only Embrapa is in front of us considering this sector, and we are in the front line considering the agribusiness. We are also acknowledged by the ABRASCA award 2022 as the best sustainability report.

We have our intention or our availability or transparency considering sustainability. We have received the award of the best organizations for Latin America. We also want to take into consideration Europe, South America, and Ourof ino is one of the most admirable organizations in Latin America. We are the single pharmaceutical organization that has got this certification, and this certification is very complete considering compliance, integrity, social responsibility, and we are very proud for this acknowledgement. We are being acknowledged by our customers. Last year, I went to Castro, and I was able to see the milk production. We have got the award of Agroleite. We were recognized in the field from customers. We also have got prizes, A Granja, that is very specific for our sector. Last year we have got different prizes. For the very first time, we have received Reclame Trophy.

We do not want to have complaints from Reclame Aqui, and we deal with that in a very appropriate way, which has resulted for this very important prize. As I have said, we want to be the most admirable and renewed organization on the market, so that is why we are providing high-quality products in the industry. We have launched 18 new products. Our launching for pets, dogs, cats, and Angelo Melo, Fabrício, and Veronica who are the Board of Directors. This product range is aligned with our purpose, our trends, and we also seek for new markets. We want to explore new markets. We want to spread. I should also mention about our international pathway. We have got subsidiaries in Mexico, in Colombia, and we also act in different organizations. So we have a very good market penetration, and one of the very important thing is our portfolio.

We want to take products from Brazil, and we want to import abroad. So we have got the registration of products in our locations. We have got some products launched 2022, and we also have got different products that we have developed. We have our international operations director who will be here with us. I should also explore the topic about ESG, and I have said that at the beginning that we are very attached with sustainability. It is our core. We have advanced 2022. We have created an independent committee, and we have got also our metrics. We want to hear the interest public. We want to know what is relevant for the organization in order to focus and go through and thrive. We have got six topics, and they will be better explained by Kátia Lobo, who is our Director.

However, results for us is something that we seek at every single day. I am very satisfied with the results from the last three years. We have got 68% of our revenue, and we have strengthened our indicators by generating cash flow and a very important management system. Marcelo will be talking about these results. As for 2022, we have a very impressive brand, and it is the very first time that we have reached BRL 1 billion, 15% of revenue growth and 20% of Adjusted EBITDA. We are very proud in order to be in this rank. 2022, we have got growth from that and considering these results, we have a strategic stakeholder, Mitsui. We have shareholders and billions of dollars in investments. This organization is very influent in Asia, and they have been investing in Brazil. It is a proud for us.

We are here embracing these new partnerships, and we are looking for the future. Mitsui opened doors for the Asian market, and we know that most of the molecules are discovered there. We also want to import our products and medications for Asia. To conclude, I would like to talk about the future by emphasizing that here at Ourof ino, we are a cross and open organization, and we believe that the world is giant. In order to capture value and have good strategic options, we need to explore new markets, and we should also have a goal. I would like to thank you, and I will return at the end for the Q&A session. I would like to thank you for your availability to be here, our investors, our shareholders, and partners. Thank you very much for your attention. Thank you. Thank you very much.

We want to go far. After the Ourofino Day or in another opportunity, we would like you to have a virtual tour. Please use this QR code so that you will be able to see our facilities, and you will be surprised. We are also providing here the link on the chat. We want to know 2022 results and the financial pillars that sustain the future of our organization. We have a CFO, Marcelo. Good morning. Thank you for your presence here. Good morning, everyone. It is a pleasure to be here and considering this strategic plan we have developed. I want to start with the financial results 2022, and I also want to have a reflection of our history.

We were able to grow 68% of the consolidated liquid revenue, 15%, and all of that is optimized considering the triggers that we got from the strategic plan from 2019. This growth is very sustained. We are a highlighted organization. We are the largest organization in Brazil with very relevant planning, and we want to become the most admirable organization in Latin America. We have this expansion in our business units. As for the segment of animals and production that we commercialize products for the livestock, we got 14.7% in 2022, and we accumulated 64%. It is very important to answer why is that very relevant. We have this view. We have a client base of 5,000. We have a very good and impressive products portfolio that allows them to go through all the therapeutic areas.

We have a huge team, a huge work team, and we are focusing on the production, the application of our products appropriately. As for animals, we have had a 14% growth. Having this effect considering the pandemic, this moment was during the pandemic. People, they were having social distancing. Pets were a very important thing for the humankind. We have technicians, vets. We are the leader organization for the production of medications, and considering the market for the supplements product range, Veronica is going to be talking about that. As for international operations, we got a growth of 18%, and this growth is considering the amplification. We have our core in Mexico and new products. We got this new market share and the opening for new markets.

It is important to emphasize that besides expanding our geographic and demographics, exportations is a very natural head towards the input, and this is very important for the industry. We got a very relevant growth. As for EBITDA, 93%, a 20% increase. The expansion of EBITDA, we were able to have, even though we got adversities and the pandemic and logistics issues, we are strongly working in order to preserve our image. We have simultaneous actions in different parts of the organization. Within our industry, we want to have a better operational lever. We have a very high quality index and a premium pricing. We grew from the last three years, and we are enhancing the growth of the organization image and our DNA, we are then able to improve our EBITDA.

The combination of our growth and our DNA, we were also able to increase our EBITDA, even though we have investments in research and development. The combination of operational market expansion, customized, allowed us to grow 14% in 2022. As for all the business lines, we have preserved the margins, product positioning, reduction of costs, combining with the preservation of our personnel. All of that allowed us to generate BRL 157 million in our cash flow and revenue. Thus, that shows our capacity of growth, and we have a very consolidated agenda. We have organic growth, and in 2022, we have the acquisition of StimCell. So we have the operational cash flow growth, and we have a 1.8, 6.8 to 10.3. We have improved the capital structure of the organization. So we have 10.3% of that year, and our cost is around 3.4, 3.5.

This very appropriate result, and considering the current situation on the market, on the Brazilian market, allows us to keep going. So we have 80% of this composition and now we are growing. I would like to conclude 2022, and I want to thank you for your reliability by emphasizing our purpose, and we will be for 2023, and we want to provide you improvements. We have a business environment that is somewhat complex due to some specific reasons. We want to advance considering the business. We have our drives of growth, and Brazil is highlighting considering our organization. We are very important, and we have this representation on the market, so we should never neglect the market opportunities considering the productivity and technology.

We will be expanding on the Latin American market, and we also have a very robust cash flow, low leverage, and we have top-notch customer service. One of our assets is our brand. We also want to have a very good access. We have an industrial plant where we are able to produce and manufacture different products. That is why we are very content to go forth. Thank you, Juliana. Thank you. Thank you, Mr. Marcelo. I would like to invite those of you who are following us today, we also would like you to please check our sustainability report that is integrated. So we have provided here the link on the chat, and you will be able to see this complete material for our organization. Well done. So for us to talk about the pet health, we have endless opportunities, services, possibilities to provide to our customers and partners.

The strategic development of new businesses, we have a partnership with the development and research. Angelo Melo is here with us. Angelo, thank you for your presence. Thank you, Juliana. Thank you everyone who are following us of the Ourofino Day. Thank you our shareholders. It is very good to be here once again and talk about our businesses and the new products that we are providing and launching on the market. Our work here, especially what we are doing in the current moment, well, it is about growth. Growth is the foundation. Sustainable growth generates value for our shareholders through the satisfaction of our customers. In order to grow, what do we need? We need to have a product range, and the product, they go on the market from two sides. We have the internal combination and open innovation.

And we also complement the open innovation using the transformation of businesses. That is very clear, and we were able to provide this purpose. The question is, where do we seek for new ideas? Where is the source? One very important point for this information, new services, it is about the macro trends for each segment on the market, but more specifically, considering the macro trends, we should never forget that it is all about the health. Healthy people, healthy animals. That changes our approach considering the development of products. The producers, they are subjective to these macro trends and the global trend as well. This is extremely important for us in order to cope with the market. The increase of productivity is extremely important for producers for the livestock, cattle and sustainability. Sustainability is also linked with technology.

The new products, innovation and the capacity to take this information, to spread this information is very important for the decision-making process. This is a very important point for us. Another very important point is the prevention versus treatment, where we have good opportunities, practices of management. Another important point is the role of antibiotics. Even though we work with prevention, antibiotics will always be used, and that generates opportunities for us. To complete, it makes the whole sense if everything is aligned with the pet health. We have the ESG, and we will be talking more about it.

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

As for our macro trends and animals paths, it is about the humanization of pet owners and animals. Today we consider our pets as family members. That is why we are very attached to the product profile, development, prevention and treatment, and also the specialization from healthcare professionals. Today, vet clinics, we have orthopedic cardiologists and so on. Thus, we will have a broader industry.

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

Considering this strategic trend, we were able to define the strategy. We have strategic steps. We will not get into much detail, but we want to show you the lines of products that were derived from this strategic process. We have the additives, non-antibiotics, especially for the livestock agribusiness. This market was dominated and we have a huge opportunity. We brought our first product range. It is very important. It is the single choice for the prevention. We have launched two vaccines recently, along with the other two from the past. For a total, we have also medications. Now we have different operation lines. One important point is about the supplements. Considering owners and pets.

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

Supplements have a very important role, and the supplements, they support the treatment that is prescribed by vets. We also have added value. It also complements the prescribed treatment from vets and the brand Ourof ino is a reliable brand, and we want to transform that to the market. Well said, we have this strategic set of steps, and we need to deliver things. We were able to deliver 18 new products considering our product portfolio by enhancing and boosting opportunities to generate businesses and bringing innovation to the market. We have 18 new products that came from the platform that we have acquired. These products.

Kleber Gomes
CEO, Ourofino Saúde Animal

[Non-English content]

Speaker 2

We have the integrated innovation, a range of products, internal development.

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

We have national partnerships and also international peers in Europe. That is why I would like to emphasize our assumption. We care about our identification process to identify new opportunities. We also need to think that in a short or long term, we need to consider products that we will be launching in the future. Ourof ino has always been acknowledged by its technology, state-of-the-art and innovation organizations. We understood that we have a better opportunity. This year, 2023, we decided to separate new businesses. We have a new board in order to deal and cope with different relations and rupture products. That is why we are bringing innovation to the market. We also consider startups. Our wealth. Our team had the opportunity to assess 105 opportunities, and all of them are very well-aligned. Then we were able to approve 19 projects.

We also have these products. It is about the open innovation for the pet healthcare. We have an open project from the biodiversity, and we have O Boticário, Suzano. We represented animals healthcare and all the bioma in Brazil. We started with a different opportunity.

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

So-

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

We have been chosen as the second-largest organization, the fastest organization on the market. We are very proud.

Angelo Melo
Director of Strategic Development and New Business, Ourofino Saúde Animal

[Non-English content]

Speaker 2

Today we have different opportunities considering our sales pipeline. We have 84 opportunities in the different steps of our pipeline. 31 new products delivered since 2020. Thank you for your attention. I will hand it back to you, Juliana.

Juliana Matthes
Corporate Communications Team, Ourofino Saúde Animal

[Non-English content]

Speaker 2

Thank you very much for your attention. As I was saying, strategic development, we have a synergy with research and development. We have a very robust team of professionals here at Ourof ino, and we have here Ferdinando Almeida, who will be talking with us. Good morning, Ferdinando. Hello, good morning. Thank you for all of you. It is the second year. I was talking about the advances for 2022, and I also would like to mention about our future view and the perspective for the pet health market, the health care. It is important to start by mentioning the overview of the governance model research and development that we have adopted here. We were talking about the integration that we have between the Board of Directors, and it is extremely important to bring light and to talk about the development process.

We have six steps since the idealization when we have the very first assessment for new solutions, new products, and unmet needs. We also have the development of products, detailed research, then we have a deeper look. The product that we are providing, we have all the technologic strategies with our partners. Thus, the fourth phase is our initial development of products and also the industry itself. It is not only about the product, but also the assessments and efficacy proven, and a regulatory agency that is in charge to support us considering our product launchings. We have worked in each of these steps with a well-established criteria in order to be pretty sure that all the financial resources will be bringing a return considering the deadlines that the organization and shareholders are expecting from.

Those of you who are following us for the very first time, we would like you to note that we have defined our strategic plan and the development of biological products, vaccines. It is a growth strategy that we have got. Within this strategy, we started to develop some platforms for the development of these vaccines. We have this recombinant and conjugated vaccine platform. They are well-known in the industry. We are working with that, and we want to be well-aligned with the market trends and technologies, which makes the whole sense for us to have these platforms. Everything is well established in our productive plans. We also work with a stem cell system. On the stem cells system, we have got this new product on the market for three indications of diseases. We are also able to leverage the platform for new indications.

That is why we have been working in the development of new products, considering the stem cell system. We also have platforms that we use nanotechnology, which is extremely important, and it opens a range of opportunities. For instance, we work with molecules that would not be compatible, and the nanotechnology. It is very important that we do not have only one single product range. We also are seeking for new products. We need to emphasize our development for the release, the controlled release of pharmaceutical products. For instance, when we administer the medication in an animal, that allows us to be able to work in a better environment. We can also have a better administration approach. We also need to have a team, researchers, that is very important for us, considering all the budgeting.

So far, we have a development team, and we have 96 professionals dedicated to research and development, and 30 professionals dedicated exclusively to biologic products. We also have here a level of we have this product reaching 41% PhD. We have talked throughout this event about the importation of the integrated innovation for our progress, and I would like to emphasize that we have developed throughout the years, and we are still seeking for new partners, new consultants. We have 23 strategic partners that work for the development of products and innovations in different product phases. We also have six international peers that are very relevant for us considering the know-how and expertise in order to boost our development and research. Now we have Mitsui, which is our new partner. We have a better approach.

The number of partnerships we are able to- With this partner, we will be able to grow even more on the market, and we will have a better development for the development of products and solutions. In order to have all of that, it is very important for us to have a very strong financial health, and the company has evolved in the last years. I would like to emphasize the commitment that Ourof ino has with the animal healthcare industry. Taking into consideration not only Latin America, but also the other markets that we are acting on. Since 2019, we've got 7% of investments, 7% of the net revenue for the development of new products. Of course, our effectiveness is measured by all the results that we've reached and achieved. I'd like to emphasize some specific products that we've launched 2022.

Angelo has mentioned about some, and he's provided a macro view of it. I would like to emphasize about the product range and our portfolio of our animal healthcare industry. On the left side, we have a painkiller, Benevo. It's an innovative product for pet health, injectable, IV. Due to its innovation for the market, we were also able to contemplate the fast track category. Once we registered the report, the map, we have this disruptive, and we were then able to have this licensing. We now are able to understand this need for the market. There's another emphasis, the product range of supplements, both for cats and dogs. It's important to emphasize how these products were manufactured and the technology that is behind. It is not about one single supplement, but we sought for specialists in the market.

We have a consultancy and an advisory board, and we are taking into consideration the qualitative aspect, the quality of each and every input, and also quantitative, in order to enhance the market. We want to have a physiological benefit that oftentimes we don't take into consideration. We have products that support, and we also have products that are focused on pet anxiety. We also understood, mainly considering the aging of dogs and cats population, some animals, they have the agglutination problem. We've got two types of presentation. One is a paste oral, and we've got different reports. This is a differential, and obviously, we also have these snacks products. This is very important for us. It's also about this timeline.

These products, considering the time and development, we are now having a transferring of technology in order for our plan to be able to manufacture in a large scale. We have biologicals. Not only that, but we also performed the delivery of four protocols of registration. We have four potential products, and that is also extremely important for all of us. We are well-established considering our strategic planning. Thus, we've got 58 products under development. My team is working for the development of these solutions. From 58, we have 22 that will be for our livestock portfolio. We have 13 projects for the swine products and 23 for our pet. It's very important to emphasize that for our strategic planning. We are committing to provide a high-quality customer service and products.

As for the future, our role is to be very attached and dedicated. We've had the prize, the award, 100 top startups. We are inserted in the innovation ecosystem, not only in Brazil but also worldwide. And are having this macro view. This partnership is along with the development team, and we are able to leverage even more by seeking for agility and bringing new solutions that will allow us to leverage our growth in a faster way. As for our ecosystem, the ecosystem of the vet organization, we have other types of organizations. For instance, we've got different opportunities. In 2022, we participated in rounds of opportunities with partners. As for other industries, we also would like to have more partners in order to have best-in-class technology. We should never leave behind our pillar and have this digital view.

We have the development and research program. We are using artificial intelligence to discover new molecules in order to have the chemical prediction of formulations even before. We have here the artificial intelligence, and we have this huge opportunity to decrease the cost. And also, we will be able to be more accurate. Considering all the new structure, we have also the ESG, our research and development. We have formulations, analytical methods, bioanalytical, and sustainable. Thus, we are boosting our ecosystem and the environment that we work. We seek for the use of products for the well-being of animals. We have in our commercial product line packagings that are recyclable. This is a continuous work for the next products. We will be focusing on sustainability and also the primary packaging, the vials from pharmaceutical products.

We want to use materials that are composed by non-petroleum-derived, as well as sugarcane. We also have our ESG pillar, new methodologies for the project management, the governance, and we are always seeking for benchmarks. Then we will be able to have relevant indicators in our decision-making processes, and we also want to evolve with these projects, and we would like to assure that all our products are high quality, and I will be answering your questions. Thank you for your attention. See you. Thank you. Thank you. Do you know how we seek for innovation for our pet healthcare portfolio? How can we access the market? Now we will be able to understand the business unit. When we talk about production animals, Ourof ino has one of the most complete animal portfolios, and this business unit represents 74% of the organization turnover.

Fabrício is here, and he's in charge of that. Thank you. Thank you. As Juliana mentioned, I am a vet, and I've been working for 17 years, and since 2020, I'm in the Board of Directors, and I want to provide quality for the healthcare of animals. You've seen this technological package. We have studies in order to improve our products. We have a solution package. Some of you are watching us for the very first time, and I'd like to mention how it works here in Brazil. Our commercial structure, we have a sales team, sales reps, they sell our products, wholesale sellers. We also have a bridge. We have this connection with technology, and then we generate positive results. As you are aware of the relevance of Brazil considering the pet health, we are very relevant to provide information and technology.

Ourof ino is positioned in the market BRL 7 billion for the pet health. Our performance the last three years, we were able to grow 64.2%. It is very outstanding considering our structure. With that, we were able to have 9.4% of market share. However, that was only possible because we have a giant team of professionals in order to grow our business. We have more than 110 items in our portfolio and business opportunities, and more than 110 options for productivity. We have a different way that we access the market. We have approximately 4,000 customers directly. Through our wholesale sellers, wholesale, we have almost 20,000 point of sales throughout Brazil. We are reaching producers, and we are spreading our product range. We want to have renowned products on the market.

Our reproduction line, pesticides, these products are in the wishing list, and it assures producers to have a very relevant result for their business. It's very worth it to use our solutions, and then we can have more productivity in the livestock. I also would like to have a division. We have production animals. We have cattle, horses, and we have more than 80 technicians, specialists that are specialized in technology, which guarantees a state-of-the-art platform. We have more than 15 models customized to our producers. Our sales team access the market, in a very pulverized manner. Above all, we want to be closer to our customers. We've talked about the culture. It's very important to be very close to our customers. We also want to anticipate things on the market in order to have a better overview.

This is the market. We also have commercial peers.

Fabrício Antonio de Oliveira
Diretor de Produção Animal, Ourofino Saúde Animal

[Non-English content]

Speaker 2

As for the poultry and swine.

Fabrício Antonio de Oliveira
Diretor de Produção Animal, Ourofino Saúde Animal

[Non-English content]

Speaker 2

In addition to all the technology that we have, we have launched new products for the protection of swine and poultry. We have this One Health platform. We want to access the market. We want to strengthen our presence. Thus, we will also be able to support other segments. Besides the structure of swine and poultry, within our structure of production animals, we have a technical and marketing segment, which makes easier our directioning of actions. We want to take all information and transform into data, so that we will have a better solution for the producer in a faster and more practical manner. Thus, we will be able to achieve the results. All of these set of strategies allowed us to have a growth of 14.7%. It is superior considering the market, and we are very firmly going forth.

That is the way we access the market, and how we understand that we have new opportunities, and above all, it is about responsibility to foster our business in the country. We know about the difficulty to cope with the challenges. We have had a very important change. We have the Ourofino em Campo. We have a TV show, Canal Rural channel. We have Ourof ino with ads and propaganda that will make us to be more inserted in the market. Besides our strategy, our brand and products, it is also important to foster technology. As I said, swine and poultry is a new opportunity within our business. We have mapped out a new pillar of opportunities. And this year, with this change, we now have a TV show dedicated to swine and poultry.

It's a TV show that is in Canal Rural, so that we will be able to achieve others. We've had very important issues in order to foster our business. In the past, Ourof ino, we had the intention to leverage our business and to scale it. We've launched the iUs Saber. We innovated in the way that we provide information and provide knowledge. I'm very proud and pleasant to show you our purpose, because we want to reimagine our view. Also that healthcare. We have more than 6 billion of rural fields in Brazil, and it's impossible to be in person in different locations. The iUs Health is a tool, a telecommunication tool that provides guidance and support for the market. This is a brand new platform that is for our customers.

If you are one of our customers, please access the iUs Health. We will be able to support you. We are on the TV, we have the platform, iUs Health, and the iUs Platform. We also have the iUse Pedido Fácil. That is for resale. This app is available for our customers, and it makes easier the relation with our customers. It was a desire that has turned into a reality for us. Then we will be able to access our market, scaling our technology, technicians, and the whole chain. The result of all of that is the acknowledgement that we had in field acknowledgement, and also our customers. I'd like to thank you for your support, and we are committed to provide best-in-class products. Juliana, thank you. Our commitment is more than only providing solutions to customers.

We want to improve productivity considering the animal protein. Thank you very much for your attention. I will be at your disposal for Q&A. Thank you for your participation. It is very good to see this technological evolution in order to provide access to our customers. Thank you. Veronica Martins is our Managing Director of the pet division. This business unit has a very good performance. It's about long-lasting relations. Veronica is here with us. Good morning, Veronica. Good morning. Good morning, everyone. For me, it's such a pleasure to be here another year to talk about pet. The pet market, post-pandemic, is fostered by two factors. The first is the increase of the number of dogs and cats, and also the expenses from families. This cycle had been enhanced during pandemic due to social distancing, home office, this proximity with animals.

We had many animals that were adopted. 2022, we've got back to regular levels, and that is considering the macroeconomic context, a global macroeconomic context that was not very favorable because several expenses we were not having during pandemic. But now post the vaccine, we are now having these expenses back. We then leave this parcel of expenses for the pet. However, we have an extremely positive market, which is about also humanization of pets. That has been happening for many years. Our market, pet healthcare, it is very important to mention medical specialties in the pet industry. Specialists vets, they demand very specific products, services, solutions that were not required before, which is very good for us. Just remember, if animals are being well treated, thus they will live longer. New diseases might also appear.

That's why we also need to improve the product range. We have positive aspects that foster our market. It's extremely positive that we take the products to the market, which is different considering what Fabrício has mentioned. Our access is made through that. We need to have a network of suppliers, a team with more than 500 professionals, 30,000 stores. We at Ourof ino, we are working for the good of the industry, and we also have this relation between Ourof ino and doctors and vets. They influence the consumption habits of animals. This is very important for us. We have a team that they visit vets. We also have products. This work and the social media capacitation, all of that ensures that our product range to have a better market share.

As Kleber mentioned, our purpose is to reimagine pet healthcare. I'd like to approach here the last launchings. 2020, we had this product line that is extremely different, exclusive technology for dogs and cats. We have a Maxicam Solução . It is one of our strongest brands in our portfolio, but we have a new introduction, a new presentation of it. It's a solution for a better application for cats because cats, they are very important as well. They have a very high index of growth. Cats are very important for this product line. 2021, we had this diagnose line in which vets would be able to use it in a very practical manner to provide a diagnosis of animals. 2022, we've had many launchings.

We have the stem cell product-based osteoarthritis that are very complicated and dry conjunctivitis, and this year we had the privilege to help the animals and provide a quality of life Benevo, as you've heard before, a unique compound and also our expansion of our range of supplements. It is extremely important to talk about the supplements because they are products that are very relevant formulations. These products, they have added value, and they have a recurrence of use. The differential, as you can see on the video, paste and snacks are very easy. Animals acceptance tends to be better in this formulation because we know how difficult it is to apply medications in pets, and it's important to mention that on the cartridge, the paper from our packaging, we have a 100% sustainable paper. Then we decrease the wrong discard.

The market is even more digital, and everything's digital today. That's why we have created the iUs Saber. It is a platform of content from stakeholders, and we provide relevant information for vet specialists, and we are launching this month the iUs Pet, which is the app to have the connection with owners and vets. Then you will be able to input your pet information, the history. You can put vaccination information, medication label, prescriptions. For all of you who have pets, you can download it, and you can put all information. To conclude, I would like to emphasize about our strategy of the expansion of animals, not only considering the medication market, but all the markets. This picture shows our ecosystem strategy.

So we are able to see the amplitude of our line, the SKUs in different segments, prevention and control, care, stem therapy, supplements. We have different brands of supplements, our digital initiatives, diagnosis. This strategy is based upon some assumptions. The first is that all of our products bring differentiation, both in its presentation, uniqueness, but we are always seeking for innovation. The relevance of this whole portfolio, we have products that are widely used in the industry, and we want to gain reliability and confidence from vets and customers. Thank you very much for your attention. Thank you, Veronica, for your participation. Now we want to talk about Ourof ino Healthcare. We export for 16 countries and mainly Latin America. We have subsidiaries that are integrated in Mexico and Colombia.

Just for you to understand, the importance of these countries is that both countries represent almost half of the Brazilian market. We have Rui Nóbrega, who manages the international market. Thank you, Rui. Thank you, Juliana. Good morning, everyone. Ourof ino 2023. We have a giant team, Kleber Gomes, all the directors. We also have industrial operations team, Paula Seraphim, for quality of life department, quality assurance. I would like to share with you some very important aspects considering the evolution of Ourof ino and the international businesses, the solid drivers of growth. A global growth considering the demand for animal protein, poultry, swine, fish. Latin America is key considering the supply of proteins. We are very inserted on the market. Even considering farms, technicians, sanitary protocols, reproductive protocols in order to improve the healthcare.

With all these drivers, 2022, the structure that we have for Mexico, Colombia, and the other countries where we are acting, we have commercial peers, and we are working for the expansion of our businesses in each area. As for 2022, we had a consolidated result superior to 18%. We were also able to achieve 111.2%. We act as the expansion of the portfolio we have smaller countries as, for instance, in Central America. The Latam expansion, products expansion that we have a very important work. We will have this year 68 approvals of new registrations, new patents. That allows us to have this partnership. Let's take into consideration the markets where we act in. Mexico is very important. It's the sixth global producer considering meat and poultry.

Seventh global producer of swine and milk, and the first in the production of milk in Latin America. Mexico 2022, it showed a concentration of production of meat and milk in larger groups and the food industry. It is very important, this market. We have more than 90 million. We have calf exportation, and it also has a very good technological assistance. We have a very large consumption for poultry. We have the poultry protein living from 17 kilos to 20 kilos. As for beef, we have a higher cost. Mexico also consumes a high level of milk. Mexico is also a very important milk producer. We have 378 eggs considering the production of eggs. As for the animal healthcare, 2022, $625 million. 3%.

The total market for all the species and where we act, we had these 9%-10% and 1.3% of market share considering the total market. Our participative market share, we have 5.4% of participative market share and even considering beef, swine, we still want to fulfill some gaps, and we have this large market in Mexico. What are we doing? Access to the market is extremely important. With our business partners, suppliers, distributors, we have a successful model considering customer service, assistance. In 2022, we amplified our end customer foundation, 109%. We amplified our fieldwork, and we want all the customers to try our products. As for the other market that we have another subsidiary, Colombia is a very important market for us. It is the third pet healthcare market in Latin America, and it is the 17th global producer.

Colombia has a livestock that represents 3.6% of the GDP. It is a livestock that has got 9%-10%. I went to Colombia, and before COVID, it was 23 million of the consumption profile, but now it has increased. We have 36 kilos of poultry consumption. As for beef, it is the second protein towards swine. Swine, we have it from 9 kilos - 13 kilos, 14 kilos. Some states, Medellín or others, they consume more than 20 kilos per capita. It is a very consistent work. The market versus Ourof ino market share, we have a market total estimated in 2022 of BRL 250 million, 7.3% of a participative market share. We want to go forth. The total market share of all the species, it decreased in Colombia 3.3%, but we still have got improvement in that market.

As in Colombia, with our strategic team and our partners, we have reached almost 4,800 points of sales. We have a well-structured system. More than 13% of growth in the client base considering the generation of demand. We also launched in Colombia our range of products, and this is extremely important. The third pillar from international strategies, we are present in 14 countries, and we have 4.5K points of sales, and we will be able to grow almost 20%. This generation of demand is made through our partners and our team, considering the capacitation and technical specialization. As a summary, we are able to see the international expansion. We have two subsidiaries, Mexico and Colombia, access to the market, new products. In 2022, we have got this new strategy of the portfolio. For 2023, we will have 60 launchings.

We have eight or 10 SKUs, more than 16. We are providing this range of products. We are bringing four products to be launched in 2023. Most important, we want to have access to the market. In 2023, we have reached Chile and the Dominican Republic. As a conclusion, in 2023, our focus, we want to strengthen the generation of the demand by replicating the Mexico and Colombia model, the business model. Specifically in Mexico, we have a demand for growth, opening and consolidation of new strategic channels in Mexico. We have different regions that we are not present, and we want to improve in this matter. The increase of penetration and the growth of the health protocols and animal productivity. It is not only about delivering products, but also considering the cost-benefit ratio. We also want to strengthen the customer experience.

I use the iUs because it is now a reality for Mexico, Colombia, and we have generated possibilities of new standards. We also provide information. We want to generate and enhance a better journey. As for two new markets, our objective is that we want to go forth considering this possibility of expansion and also take into consideration Asian market. We want to evaluate the possibilities, and we want to take into consideration the Asian market. In Indonesia, we were able to promote our products. As Ourof ino, we are taking into consideration what we have built 2020 to restructure and establish a foundation. 2021, we worked with the consolidation. 2022, 2023, we want to expand our portfolio and diversify segments. For instance, vaccination of swine, Colombia, Mexico, Latin America. 2024, 2025, we want to acquire markets.

Even considering this new strategy, this new business model that we have from Ourof ino. Thank you very much for your attention. I will hand over to Juliana. Thank you, Rui. Thank you. As we are mentioning here, we will then have the Q&A session, okay? Here on the toolkit bar, on the bottom there is a Q&A button. You can click there and ask your question. The last presentation of our event is the main resource. Here at Ourof ino, we have the Ouro Fans, those who connect with our purpose. You can be one of the Ouro Fans. We collaborators, we have a common characteristic. We are just passionate about what we do. As for the culture and sustainability and ESG, we have here Kátia Lobo. Good morning, Kátia. Thank you for your presence here. Hello, good morning. Good morning, everyone.

I am very proud of what we are building for the future, because people make difference. We have a team of engaged personnel, accredited to the purpose of this organization. In the beginning, Kleber Gomes mentioned about our purpose to reimagine pet healthcare, and this purpose guides us through three central values. Play to win, care about others, and connect with the world. They are the triggers, and they foster all the numbers and strategies that you were able to see to be present in the organization. I am very proud and honored to talk about GPTW. It is a consultancy advisory board that ran a poll. 89% of our people are satisfied with our practices of people and culture.

Another very interesting data is that this survey asks, "What is the reason that makes you be here?" 30% answered that it is about professional growth, which means that people can build their careers. However, the most outstanding value is about 37% of our people, they responded that they want to align their personal values with the organization's values. Do you know why we are very proud from this number? Because we have 150 best companies here in Brazil, and we have 18% of the rate. We have this alignment of personal and organizational values. This progress is conducted at every year, and I am very proud to show this evolution. 2021, we were in 83 position. 2022, we evolved to the 52nd. In a year, it is about 31 positions that made us to increase.

A fact that makes this to be continuous is to emphasize our programs and also the organizational culture. 2022, we had the people, personal, who were able to have opportunities. It is also about self-assessment and a very profound feedback and accurate. As a consequence of this very robust development, we also have the meritocracy. People from Ourof ino, they were able to be acknowledged due to their behavior and deliveries. We truly believe that our leadership makes us to go forth, so we continued our development of leaders, individual and collective.

Leading ourselves means that we will be able to lead others and the whole organization as well. A strength from this leadership is about our diversity and inclusion. We are also very happy to provide you this data. We know that the agribusiness, 19% of women, they occupy leadership positions according to the IBGE.

We have 37.2% of women in the leadership. In our high leadership, 33% of women in the high leadership. It is not only about the number of women and gender. We are also monitoring the salary equality. In Brazil, we have the wage difference between man and woman in a leadership position, Brazil 78% and OFSA 92%. The more we promote women, the better it will be for them to start their career. Both me and Juliana, we are in a higher level. It is not about a leadership that is only for men or women, it is for everybody. The GPTW brings to us a concept, GPTW For All. 54% of our leaders in 2022 are considered for all leaders who aggregate and who can generate connections between people, business, and our culture by respecting diversity widely. Leaders do not believe that.

2022, we were able to reach 51% of the evolution of internal opportunities, 51% of vacancies, they were filled with our people. So we reached a healthy level, 50% of positions fulfilled according to the internal acknowledgement of our personnel and also the experience from people from the market. In order to ensure the preparation of our people and our future and current challenges, we have developed iUs IN, is a continuous learning platform where our people can improve their skills, and not only through the system. We have also prepared an environment for a better performance. So we have here this professional engagement and on our whole ecosystem, so you are able to perceive that we have digital initiatives that generate value for our people, for our customers, and all of our stakeholders.

iUs IN, iUs Pedido Fácil, iUs Saber, iUs Health, iUs Pet, and iUs Dados. All of these actions, 2022, brought to Ourof ino very important acknowledgments. Kleber also shared with you that we were voted as the best organization in the Agribusiness Rank 2022. But now I would like to highlight about the Visionary Award. It is not only a Kleber award, but 1,200 people who wake up every single day in order to make a difference, our collaborators. I also would like to share with you our ESG journey, our commitment to build a better future for me, for you, and for the next generations. We intensified our journey in 2020, in order for us to have an accurate integration and strategic planning.

We've created the commitment policies, ODS, and the sustainable development objectives, unfolding goals and actions in order to assure that this journey will be excellent. We have this materiality process, in which we define the priorities. We've heard more than 600 people from different target public, and we also provided the result of materiality. Then, we are able to have six themes, material themes, in order to make the ESG journey to happen in practice. Within the environmental pillar, we have the animal well-being. It is about practices, solutions, animal well-being, considering product and services testing and manage. It's also about the climate change. We've created our commitment by mitigating the carbon, the greenhouse effect, decreasing the greenhouse effect. We have here the supply chain management, and we want to diversify our partnerships, well-being, and people's valorization.

It's about our people, our customers, our community, people that interact with us. The third one is about food safety. We want to provide the best animal protein in Brazil and the world. We want to connect with the world our values. We have research and development, and we've used artificial intelligence. It's about how can we bring the digitalization to our business. This whole ESG journey is possible from the initiatives and participations that we have. We have advisory boards, consultancy, and all of that is very important for our journey. I'm very content to be able to announce our sustainability report. Today with you, we have developed our ESG website, so you will be able to access it. Thank you very much for all your attention. Thank you, Juliana. Thank you. Thank you.

I'm also very content to be here in this organization and contribute to the population. Thank you. Great. Let's just answer the questions. If you've got any questions, please don't hesitate to send through the Q&A button. Our Board of Directors is at your disposal.

Speaker 6

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Speaker 2

We are not that calm, simplicity. People that we are, we plan every single detail and we think as a whole. However, in an uncomplicated manner, we've reached outstanding goals by respecting differences and environment. We are a partnership and reliability. Thus, everything will be in syntony. We are not only entrepreneurs, we are entrepreneurs passionate by what we do. We play to win. We are agile, and we never leave things behind. You know why? Because we wake up in the morning with this positive feeling to win. We are focused, engaged, accredited.

We challenge the now, and we reimagine tomorrow. We are many, but we are unique. Each one of us have got a different story. Yes, we are like that. We care about people. We dream and we seek for our dreams, and we also realize other people's dreams. We are connected with the world. Our DNA is to be a partner. We seek for innovation, and we are digital, without leaving the humankind behind, because we all together are a team.

Speaker 6

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Speaker 2

We are Ourof ino, and Ourof ino is each one of us.

Speaker 6

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Speaker 2

Great. Let's just answer the questions of those of you who followed us. Kleber is here first. Kleber, how is the organization seeing the macro view and the impact towards the business?

Well, I am sorry about the time. We ran a little bit late. As for the macro overview, we know that it is not the appropriate moment. Macroeconomics, we have a very high interest rate, inflation is high. It is very important, and Marcelo introduced, that we have a very low leverage. We are generating cash flow, and that makes us to think that we are somewhat prepared. Even considering the future, at Ourof ino, we do not choose the challenges. We try to deal with them the best way possible. We are prepared to work in this environment. I am very confident considering the strengths of the organization. Another question, what can we await from Mitsui as a partner? As you are aware of, we are focused in Latin America. We have a work that is very important to be conducted. We believe on this market.

Mitsui, I see two concrete possibilities. First, we want to be more present in Asia Pacific. Mitsui is strongly investing in animal healthcare. We are seeking also for technology, especially in Japan. I imagine that the OTC, the over-the-counter products and protection lines, I do see a space to explore this market. We are going to study to develop along with Mitsui market possibilities, and then we will also be able to register new products. Undoubtedly, it is a new way for us to grow. Now, Marcelo Silva. Marcelo, next question. How does the digital ecosystem connect? That is a good question. I have mentioned in my speech that in Brazil, there is a big opportunity considering the technology, and it is not only about medication and that.

It is also about the management of animals. Even though we have got the different customers, oftentimes we are not able to have the visitations at farms. We want to provide knowledge. We want to teach, to provide knowledge, to spread information to producers, farm owners. Part of our strategy is a process. It is about the learning curve. Another important point is to make easier communication. A third point, considering our ecosystem, is for instance, the iUs . It is a platform to connect customers, producers. Our strategy will begin considering the market. Thank you very much for your participation. We are not going far, so I would like to inform that our team, Investors Relations team, will be at your disposal. You can access our website, ir@ourofino.com. So you can contact the team. Now CEO Kleber for the closing.

We know that it is lunchtime. Thank you. I would like to thank you very much for all of you who followed us. It has been a pleasure to be able to inform you about our results. We are very content. We are very confident considering the market opportunities. We have one of the best spots in Latin America. We have our digital platforms. We are launching products. In summary, we have a very important financial health, and we are prepared to go forth and make the market thrive. All of our channels are open for you. You can contact us. Thank you very much for your availability, for our stakeholders, our commercial partners, our team. Thank you very much for all your attention, so then we can provide the best in class solutions to our customers. Thank you very much once again.

Thank you for your presentation. Thank you. Thank you for your kindness, and thank you for being here with us to get to know about our practices. This is Ourof ino. We are here to reimagine pet healthcare, and you can access our social network. You can find us on Instagram, TikTok, and LinkedIn. Thank you for all your attention. See you