Food and companionship enriching life

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Enriching life

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Elanco’s mission and vision

• Food and companionship enriching life

• Food– Worldwide, about 6.8 billion people1

(and counting) need nutritious food every day.

– Through quality animal feed additives, medications and other animal health innovations, Elanco helps provide an abundant, safe, affordable and sustainable supply of food.

• Companionship – What food does for our bodies, a pet

can do for our souls. – Pets enrich our lives in simple ways

(licking our faces) and complex ways—such as helping children learn responsibility while earning a longtime companion

Elanco’s mission is to make life sciences work better for people by transforming protein production and companion animal care.

1 2010. U.S. & World Population Clock. U.S. Census Bureau, Population Division. Accessed 10/7/10. <http://www.census.gov/main/www/popclock.html>.2

Company Profile

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About Elanco• A world leader in developing products

and services that enhance animal health, wellness and performance

• Company vision: Food and companionship enriching life

• Established in 1954• Headquarters in Greenfield, Indiana

(near Indianapolis), USA• More than 2,300 employees

worldwide• More than 35 agricultural and

animal health products in more than 75 countries worldwide

• A division of Eli Lilly and Company, an innovation-driven pharmaceutical corporation

In 2010, Elanco opened its new global headquarters in Greenfield, Indiana

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Technology and innovation

• Advanced science, state-of-the-art equipment, time-tested methods and forward-thinking partnerships have resulted in breakthroughs such as:

– 1st feed ingredient that increased milk production efficiency in dairy cows

– 1st ionophore for poultry– 1st ileitis control product in swine– 1st nutrient-directing product for beef

and swine– 1st phage product that targets E coli

O157:H7– 1st chewable tablet that kills fleas in

dogs for a month

The emergence of vaccines in Elanco’s portfolio attests to ongoing innovation.

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Expanding in new directions• Elanco pursues technologies for

unmet or under-served animal health needs. Elanco’s areas of special interest include, but are not limited to:

– Antibacterials and anticoccidials to control respiratory, enteric and other infectious diseases

– Natural solutions to provide alternatives to existing technologies

– Food safety solutions to control foodborne pathogens

– Parasiticides to control intestinal worms, fleas, ticks and heartworms

– Analgesics and anti-inflammatories to treat pain

– Molecules and therapies to treat obesity and chronic illness

– Vaccines for infectious disease treatment and control

– Other technologies that apply to unmet needs in animal health and pet care

Promising technologies go through a four-stage research and development process: Acquisition, Development, Registration and Support.

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Quality assurance

• Elanco builds its quality systems around four key principles:

– Consistency: Products with reliable potency and purity

– Dependability: Proven results that reduce risk in the food chain and help assure the health of your pet

– Accountability: Upheld through independent quality teams and regular audits of internal and third-party operations

– Traceability: Tracking the history and source of all raw materials to assure the quality of the final product

Elanco has developed more than 35 animal health/agricultural products. Today, Elanco products are registered in more than 75 countries.

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Consistent performance, trusted solutions• Elanco incorporates quality measures—

including protection from heat, moisture, degradation and other threats—in every phase of production:

– Manufacture of active ingredient

– Product manufacture (premix, vial, tablet, etc.)

– Transportation and distribution to feed mills/farms

• Elanco follows current Good Manufacturing Practices (cGMP) and has rigorous oversight of all phases of manufacturing. Regulatory agencies and customers from around the world routinely inspect and audit Elanco facilities.

• Such diligence instills confidence in farmers, producers, packers, customers and others, who receive the right formulation delivered at the right potency to animals—trusted solutions, from batch to batch and bag to bag.

Elanco operates manufacturing facilities in Clinton, Ind. (USA); Augusta, Ga. (USA); Overland Park, Kan. (USA); Speke, United Kingdom; and Sligo, Ireland.

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100% more food by 2050

• U.N. projects world population will grow from about 6 billion today to 9 billion by 20501

• Forecasts say population, rising affluence and other factors will increase the demand for food 100% worldwide by 20502

• The United Nations Food and Agriculture Organization says 70% of the food needed to meet that demand must come from technologies that enhance efficiency3

1 “World Population Prospects: The 2006 Revision.” 2007. United Nations Population Division, New York.2 Green, R. et al. January 2005. “Farming and the Fate of Wild Nature.” Science 307.5709: 550-555; and Tilman, D. et al. August 2002. “Agricultural sustainability and intensiveproduction practices.” Nature. 418.6898: 671-677.

3 “World Agriculture: Towards 2015/2030.” 2002. United Nations Food and Agriculture Organization. Rome. Accessed 10/7/10.<http://www.fao.org/docrep/004/y3557e/y3557e00.htm>.

Join the discussion and learn more about food production from a variety of perspectives—and discover efforts to fight world hunger at: www.PlentyToThinkAbout.org.

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Healthy, efficient production of farm animals• To enrich life for those who have access

to a safe, abundant food supply—and for those who still struggle to get enough to eat—Elanco works to ensure farmers and veterinarians apply safe, new and proven technologies to food production.

• Such technologies include Elanco’s:– Animal feed additives

– Parasiticides

– Livestock production enhancers

– Medicines to prevent and treat diseases

• These products help farmers raise animals in less time with fewer resources. For example, dairy farmers today can produce 58% more milk with 64% fewer cows than dairy farmers produced in 1944.1

Using fewer animals to generate more food causes a sustainability ripple effect: Fewer animals generate less waste and require less feed. Less feed, in turn, means less cropland devoted to feed grains.

1 Capper, J., Cady, R and Bauman, D. 2009. “The environmental impact of dairy production: 1944 compared with 2007.” J. Anim. Sci. 87: 2160-2167.

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Supporting veterinarians• Elanco Companion Animal Health

helps you and your veterinarian provide the quality care your pet needs. For veterinarians, every case presents a new challenge. Elanco’sinnovative products and support services enable veterinarians to meet each challenge. Elanco’sproduct areas of development include:

– Pain relief– Control of fleas, ticks, heartworm and

gastrointestinal worms– Separation anxiety– Therapies for chronic illness

1 “Pet Tips. Tip 46—Life Expectancy in Dogs—How Long Will My Dog Live?” Pets Canada website. Accessed 10/6/10. <http://www.pets.ca/dogs/tips/tip-46-life-expectancy-in-dogs-how-long-will-my-dog-live/>.

In North America and Western Europe, the average life expectancy for a dog is about 13 years.1

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Supporting veterinarians• Value for veterinarians extends beyond

products. Elanco supports all products with quick, reliable access to technical support, plus clinical tools to:

– Increase efficiency

– Improve outcomes

– Enhance the owner-pet bond

• Elanco Companion Animal Health actively supports professional advancement and enrichment for veterinarians through:

– Conferences

– Seminars

– Other educational opportunities

• By providing such products and support, Elanco enables veterinarians to help pets live longer, healthier, higher-quality lives.

1 “Preventing Feline Behavior Problems.” Tufts Cummings School of Veterinary Medicine website. Accessed 11/10/10. <http://www.tufts.edu/vet/behavior/feline.shtml>.

Cats today have an average life expectancy of 14 years.1

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Helping pets live longer, healthier lives• Pets provide a well-documented range of

physical and emotional benefits, such as:– Lowering blood pressure, triglyceride and

cholesterol levels1

– Increasing levels of endorphins2 (the “feel good” hormones that make you happy)

– Assisting in childhood development (studies have linked pets with higher self-esteem3 and greater cognitive development4in children)

• Elanco’s goals align with your goals: keeping your pet safe and healthy, so your favorite companion can enjoy a long, fulfilling life.

• Elanco products and services help your pet maintain health and well-being. Control of fleas, ticks, heartworm and gastrointestinal worms prevents a variety of diseases parasites can cause.

Cutting-edge innovations, such as a treatment for separation anxiety, can enhance overall well-being of pets.

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1 “Health Benefits of Pets.” National Center for Infectious Diseases, U.S. Centers for Disease Control and Prevention website. Accessed 11/10/10. <http://www.cdc.gov/healthypets/health_benefits.htm>

2 Odendaal, J. 2000. “Animal-assisted therapy—magic or medicine?” Journal of Psychosomatic Research. 49: 275-280.3 2008. “Facts for Families. Pets and Children.” The American Academy of Child & Adolescent Psychiatry website. Accessed

10/11/10. <http://aacap.org/page.ww?name=Pets+and+Children&section=Facts+for+Families>.4 Poresky, R. 1996. “Companion Animals and Other Factors Affecting Young Children’s Development.” Anthrozoos. 9.4: 159-168.

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Food safety • No single solution acts as a “silver

bullet” for food safety. Elanco Food Solutions provides interventions throughout the food chain, from pre-harvest through processing. These science-based technologies help animal-protein producers, processors and packers deliver safe, high-quality food. These technologies focus on reducing the threat of pathogens such as:

– E. coli– Salmonella– Listeria– Campylobactor

Elanco’s multi-faceted approach to pathogen control helps food producers enrich life by increasing overall food safety and consumer confidence.

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Total pathogen control• Elanco Food Solutions deploys

informational technologies and services in the effort to improve food safety.

• Food Safety Knowledge Solutions can help processors and packers analyze and compare microbial data against industry standards. The statistics can also help to determine common characteristics of processing plants with consistently high or low pathogen levels, ultimately leading to better pathogen control

• Other food-safety initiatives include:– Real-time testing for foodborne

pathogens

– Enhanced logistical efficiency of test-and-hold strategies in plants

– Clearly defining the value of food-safety interventions

Elanco helps to ensure food safety by adhering to a science-based pathogen control strategy. This strategy includes products, diagnostic tools and knowledge solutions at multiple points of intervention throughout animal protein processing.

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Sharing knowledge and information• Elanco Knowledge Solutions (EKS) enriches

life by helping customers address three pivotal business needs:

• Analytics: EKS collects, analyzes, interprets and shares data to help customers make sound operational and financial decisions. Such information enables farmers, veterinarians and others to improve animal health outcomes, production efficiency and economic performance.

• Consultation: Whether a company conducts business statewide, nationwide or worldwide, Elanco can help customers better navigate the web of food chain connections. EKS helps to define and meet customer needs ranging from production and distribution to safety and regulation.

• Decision support tools: Through data analysis and interpretation, Elanco helps customers make better use of their own information. Data and analytics lead to applications such as break-even calculations and endpoint optimization tools.

By analyzing data and processes, Elanco Knowledge Solutions consultative services also uncover promising areas of opportunity for customers.

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Enabling market access• Trends in meat production and

international trade are increasing the importance of risk reduction. These trends include the emergence of more complex standards from one international market to another.

• Elanco helps customers address such challenges with Assurance Plus, which helps reduce risk by providing customers with timely information they can use to make confident decisions related to the export of animal protein products. Among other benefits, Assurance Plus provides:

– Summaries of residue tests, processes and legalities in international markets

– A searchable database listing MRLs (maximum residue limits) according to molecule, species, country or tissue

– Up-to-date information on recent changes to MRLs

– Access to international consultants

Ultimately, Assurance Plus helps make export opportunities easier to evaluate, pursue and troubleshoot, while helping customers protect their brands.

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Fighting world hunger• Enriching life first requires sustaining life.

Unfortunately today, hunger grips more than 1 billion people,1 from rural communities to sprawling cities.

• Elanco employees have pledged to use their time, talents and other resources to sustainably lead 100,000 families out of hunger worldwide and to develop a model that brings children out of hunger in central Indiana, where Elanco is headquartered.

• Employees live this vision year-round by:– Supporting organizations through personal

contributions and study tours

– Contributing time and funds to local food pantries

– Packaging and sending food for victims of natural disasters

1 2009. “More people than ever are victims of hunger.” Food and Agriculture Organization of the United Nations. Accessed 10/7/10.<http://www.fao.org/fileadmin/user_upload/newsroom/docs/Press%20release%20june-en.pdf>.

The Food and Agriculture Organization of the United Nations reports that in 2009, more than 1 billion people worldwide did not have enough food to eat.1

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Fighting hunger in Indonesia• Elanco helps fight world hunger by

providing leadership and advocacy at national and international levels, and also by teaming with organizations such as:

– The Alliance to End Hunger

– Universities Fighting World Hunger

– Heifer International

• In Indonesia, Elanco teams with Heifer International to provide cattle and poultry for 750 families. Heifer and Elanco include knowledge and training with the animals, so the recipients can develop independence and sustainability.

• These and other partnerships have helped end hunger by providing livestock, training and related services to people in Honduras, Indonesia, Nepal, the Philippines, Zambia and other countries.

Sri Meli of Indonesia received a flock of ducks through Heifer International. She uses the ducks’ eggs for food and income. She hopes to save enough money to buy a brick house with a tile roof for herself and her five children.

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Agricultural leadership• Elanco employees routinely assume

leadership positions within organizations that shape agricultural decisions at every level—from the family farm, to the halls of Congress, to the board rooms of the United Nations.

• By engaging lawmakers, commercial interests and the public, Elancoworks to shape food production policies that reflect the need for an affordable, abundant supply of food.

• Through membership in more than 150 organizations, Elanco assumes a collaborative approach to spreading global market access throughout the food supply chain.

Agricultural leadership enriches life by advancing knowledge, discovering production solutions and forging partnerships.

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Supporting agricultural partners• At Elanco, we assume a collaborative approach to spreading global market

access throughout the food supply chain by working with or supporting more than 150 food and agricultural organizations, including:

Elanco actively supports organizations such as the 4-H Foundation and the National FFA Organization to nurture skill, responsibility and growth through agricultural education.

• Iowa Foundation forAgriculture

• National TurkeyFederation

• MANRRS (Minorities inAgriculture, NaturalResourcesand Related Sciences)

• National Milk ProducersFederation

• National FFAOrganization

• National ChickenCouncil

• World Wildlife Fund• International FoodInformation Council

• International DairyFoods Association

• The Center for FoodIntegrity

• World Meat Congress• Texas CattleFeeders Association

• American Association ofBovine Practitioners

• U.S. Meat ExportFederation

• Colorado LivestockAssociation

• National PorkProducers Council

• International Stockmen’sEducational Foundation

• Kansas LivestockAssociation

• National Cattlemen’sBeef Association

• 4-H Foundation• American Association ofSwine Veterinarians

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Strengthening the human-pet bond• If you own a pet, you probably

intuitively understand the bond you share with your beloved animal. But what strengthens that bond? And what effect does the bond have on you—and your pet?

• Elanco investigates such questions through partnerships that focus on the increasing importance of pets in our lives.

• By exploring the dynamic relationship between people and animals, Elanco and others are better able to optimize the comfort, health and performance of pets.

Among other partnerships, Elanco teams with the Center for the Human-Animal Bond at Purdue University in Indiana.

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Elanco, Food Safety Knowledge Solutions and the diagonal color bar are trademarks of Eli Lilly and Company.All other trademarks are the property of their respective owners.© 2010 Elanco Animal Health. All rights reserved.AI 10988

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