Zoetis Hatchery Solutions: Embrex® And KL Automation Javier Esandi Director, Marketing & Commercial Operations Zoetis Global BioDevices & Automation

•Biodevice solutions

•Hatchery automation

•Diagnostics

•Feed additives

•Vaccines

•Water and litter treatments

•Post-harvest solutions

Support Across All Poultry Industry Segments

Broiler Support Throughout Lifecycle

Breeder farms: Productive long-

lived birds, maternal immunity for broiler offspring

Hatchery: Effective immunization1 and efficient processes

for chicks

On-farm grow-out: More pounds and

improved food safety at harvest1,2

Post-harvest: Interventions to help

improve consumer food safety

Support at critical control points to help ensure a healthy, nutritious product

Global BioDevices and Automation Organization

• Headquarters in Durham, NC (southeastern U.S.) • Poultry BioDevices • Vaccine Manufacturing Devices • Automation

• Zoetis resources cover the full spectrum of the BioDevice and Automation business • Engineering • Manufacturing operations • Commercial sales • Field service • Technical service • Marketing • Supply chain • Service • Parts

• More than 250 colleagues around the world dedicated to the BioDevices and Automation business

Hatchery Solutions: More Robust Chicks At Day Of Age

Embrex® BioDevices

• Effective in ovo vaccine delivery to protect birds at hatch

KL Automation

• Advanced robotics and robust equipment for efficient processing

Embrex®: Better Bird Health Starts Here

Pioneering In Ovo Technology Since 1989

• Nearly 60 inventions patented

• More than 350 patents in force today

• More than 900 devices in operation today

• Commercially injecting eggs since 1992

• Currently administering in ovo vaccinations to >18 billion embryos per year

• More than 275 billion eggs vaccinated since 1992

In Ovo BioDevices Market Landscape

41B

Global broiler eggs Market share

Competitors

US

CLAR

APAC

EuAfMe

Market share by region

18.5B

21.5B

2.9B

62.5B

96%

75%

87%

78%

Production without device due to:

• <1M eggs processed annually

• Low labor

• Type of disease

• No in ovo solution for disease

86% MS

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

2001 2003 2005 2007 2009 2010 2011 2012 2013 2014 2015 2016

10,3 10,2 11,4 15,4 10,7 5,4 6,7 3,1 2,7 5,6 7,2 7,1

13,0 15,4 12,1 15,0

16,6 24,1 25,6 25,2 22,2

31,3 36,3

48,5 14,5 13,1 17,6

24,8 36,6 36,4 45,4 49,7 56,9

65,2 63,1

71,0

Vaccines value by administration point

Field Hatchery In ovo

78 77.7

65.9 63.9

55.2 41.1

38.7 37.8

81.8

102.1 106.6

126.7

Broiler vaccination trend, USA

Rennier Associates, Inc. US Broiler-Health Market Tracker. 2001-2017

73

%

hat

cher

y 94

.3 %

in t

he

hat

che

ry

CRITICAL CONTROL

FACTORS WITH EMBREX®

1. Proper needle trajectory

2. Consistent shell penetration

3. Gentle vaccine delivery

4. Effective needle sanitation

5. Accurate site of injection (SOI)

Successful In Ovo Vaccination

Embrex® In Ovo Vaccination

SITE OF INJECTION ACCURACY

Dual-needle technology with the highest demonstrated injection site accuracy when compared with a single-needle device.

• Reliable immunization1

• Disease protection at hatch1

• More meat at harvest2

RELIABLE EQUIPMENT

Service and support designed to help customers achieve the best results.

• Process evaluations

• Preventive maintenance

• Gold-standard hatchery service

Inovoject® NXT

The next generation of in ovo vaccination. More details available soon.

Javier to hyperlink 4 videos.

Less Contact, More Biosecurity

Available on Inovoject® NXT

KL Automation: A Powerful Force For Hatchery Efficiency

Production Value Per Labor Hour (U.S. Data)

Production Value Per Labor Hour (U.S. Data)

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

Pro

d $

/ L

ab

or

Hr

FOOD:Prod Value Per Labour Hour

CONFECTION:Prod Value Per Labour Hour

DAIRY:Prod Value Per Labour Hour

PRIMARY PROCESSING:Prod Value Per Labour Hour

POULTRY PROCESSING:Prod Value Per Labour Hour

BREAD & BAKERY:Prod Value Per Labour Hour

MOTOR VEHICLE MFG:Prod Value Per Labour Hour

CAR & LIGHT DUTY MFG:Prod Value Per Labour Hour

US Department of Labor

Automotive

Food

Automation gaps

Process 1

Process 2

Process 3

Automation gap: • labor intensive • barrier to integrated flow • home of the “hidden factory” • low hanging fruit

Productivity from filling automation “gaps”

U.S. Hatchery- Automation Market

U.S. Hatchery-Automation Market Research, August 2017

KL Automation Solutions – Exclusive to Food

Full Suite Business Process • Productivity Project Identification

• Engineering Development / Lab Testing

• Electro-Mechanical Design

• Controls Build & Integration

• Fabrication & Assembly

• Service & Support

• Training

• Over 2500 pieces of equipment across 40 countries

• Over 120 Robotic Cells currently in production

KL Automation

KL: Effective Automation Solutions

• Improve: • worker health and safety

• animal welfare

• productivity and economic returns

• How: • Replacing traditionally manual operations with

leading automation technology

• Closing the automation gap between machines that typically operate independently

• Living an animal welfare business culture

Hatchery Solutions

Fully automated systems

Egg

transfer

Pull room Chick Processing

Automation In Action

Javier to link three video files

Labor Reduction

ROBOTIC APPLICATIONS

• Robotic reliability for less desirable tasks

• Hatch tray stacking and destacking, egg transfer, chick box dolly loading

IMPROVED RUN TIME

• Robust equipment design and build

• Dedicated automation service team available to maintain throughput to factory specs

Efficient Production Workflow

ENGINEERING DESIGN

• Improve current equipment configurations

• Accommodate existing hatchery design constraints

• Process flow philosophy

EQUIPMENT SELECTION

• Volume throughput

• Equipment built to requirements

• Manual versus robotic

Humane Handling

CHICK FLOW

• Optimized transition distance

• Efficient processing

• Speed control

• Safe chick containment

EQUIPMENT DESIGN

• Designed to avoid injuries

• Humane cull disposal

• Smooth motion for tray/box retrieval and placement

• Low-stress processing

KL Mobile System Overview

• Portable transfer automation line for hatcheries without a dedicated transfer room

• Locate and move system to optimum locations throughout transfer day to minimize rack and hatch stack travel

• Consistent throughput and speed at maximum injection rates for shorter transfer days

• Assembled footprint including Embrex® Egg Remover® and Inovoject®: 5 x 50 feet

• Built-in safety measures around robot cell with warning zones designed for safe and efficient operation in tight spaces

KL Mobile System Overview

Racks In/Out

Rack Unloader

Module

Vaccinator &

Egg Remover

Robotic Transfer

Module

Tray Stacks

In/Out

Rack Reloader

Module

Racks In/Out

Mobile System: Unloader And Reloader Modules

Operating Mode

Portable Mode

Mobile System: Robotic Transfer Module

Operating Mode Portable Mode