MHP today releases Non-Financial Report 2020

MHP today releases Non-Financial Report 2020

Limassol, Cyprus, 30 June 2021 - MHP, one of the leading international agro-industrial groups, today publishes its 2020 Non-Financial Report, announcing the achievements in areas including sustainability, animal welfare and product quality and safety.

The Report, which is prepared under the internationally recognized standards of the Global Reporting Initiative, highlights MHP's progress in 2020.

Key highlights from 2020 include:

·      MHP announced its climate objectives - to become a climate neutral Company by 2030.

·      MHP invested more than US$ 2.457 million in the health and safety of its employees (including, but not limited to COVID-19 needs). A significant share of costs was spent on modern certified individual means of protection - almost US$ 0.990 million.

·      Establishment of the IGR&PA Committee responsible (including, but not limited to) for the relationship with the Company's stakeholders, sustainable development promotion and ESG integration at MHP.

·      Total fuel consumption in 2020 fell by 2.98% compared to 2019.

·      Tight and extend cooperation with communities in regions.

·      MHP launched the culinary transformation of the Company and of pilots with different partners throughout the territory of Ukraine. In June 2021, we opened the largest R&D and culinary centre in Kyiv to train chefs how to work with our products.

·      We have launched a large-scale digital transformation -SAP - the largest in Eastern Europe.

Dr. John Rich, Executive Chairman of the Board of MHP, said: "I have got three characteristics to describe the challenges of the year 2020: risk mitigation, rapid adaptation, and innovations. People, established processes, our relations with suppliers, communities - all that helped us launch

these processes that came as the characteristics of 2020. We have got an incredible team that has moved heaven and earth for the Company not to be affected by COVID-19 and for people to stay healthy."

The Non-Financial Report 2020 includes chapters on corporate governance, stakeholder engagement, business conduct, people, employee health and safety, product quality and safety, environment and climate change, animal welfare and can be found here:

https://mhp.com.ua/en/pro-kompaniu/nefinansovi-zviti 

- ENDS -

Notes to Editors

For more information please contact:

Anastasia Sobotiuk (Kyiv)

+38 044 207 99 58

[email protected]

About MHP

MHP is the leading producer of poultry products not only in Ukraine, but also in the Balkans (Perutnina Ptuj Group).

Ukraine: MHP has the greatest market share (over 30% of poultry consumption) and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Complete vertical integration practically eliminates MHP's exposure to raw material price fluctuations since its grain production exceeds internal consumption requirements, allowing the Company to be an important participant in the international commodity trade.  In addition to cost efficiency, vertical integration also enables MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products all the way to the point of sale. To support its sales, MHP maintains a distribution network consisting of nine distribution and logistical centers within major Ukrainian cities. MHP uses its own truck fleet to distribute its products, reducing overall transportation costs and delivery times.

MHP also has a leading grain cultivation business growing corn, soya and sunflower to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.

The Balkans: Perutnina Ptuj (PP) is a leading poultry and meat-processing producer in the Balkans, with production sites in four Balkan countries: Slovenia, Croatia, Serbia, Bosnia and Herzegovina. PP owns distribution companies in Austria, Macedonia and Romania and supplies products to fifteen countries in Europe. PP is vertically integrated across all states of chicken meat production - feed, hatching eggs production and hatching, breeding, slaughtering, sausage production and further poultry processing.

MHP trades on the London Stock Exchange under the ticker symbol MHPC.