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Investor Presentaiton

42 62 INTELLECTUAL CAPITAL 2021 INTEGRATED ANNUAL REPORT RESEARCH & DEVELOPMENT (R&D) R&D front is being restructured based on studies developed with leading companies and using Germinar as a source of project intake. At the beginning of 2021, adjustments were made to the product launching process, such as the implementation of Stage Gates process, with fixed forums with Officers, Vice-Presidents and the CEO, inclusion of tools ensuring the visibility of all projects to top management, standardization of documentation, definition of the best project portfolio and monitoring of results. Falconi consultancy supported the restructuring. In 2021, we invested in 89 new products, which added to the launches of the last 24 months, amounted to R$ 418 million in revenue, or 4.88% of the company's gross revenue. This percentage is called Innovation Index and is monitored on a monthly basis. We also hired Falconi to design the project office, review the product launch flow, and the strategic alignment of the portfolio. The project started in 2021 with completion expected for 2022. Also in 2021, we developed projects to reduce the consumption of plastics in virtually all manufacturing units. As a result of the initiatives, 0.21% of the flexible plastic in packaging was no longer consumed, representing the saving of 48.70 tons. In addition, 100% of the volume of cardboard and paperboard boxes used in the year were Percentage of total sales volume and product category with addition of nutrients such as fiber, vitamins, minerals and other functional additives GRI FP7 Career level % of the amount realized with addition Main launches in 2021 ADRIA of nutrients versus total revenue 2019 2020 2021 Cookies and crackers Pasta 11.20% 9.70% 7.74% 0.00% 0.10% 0,08% Margarine and vegetable 5.60% 1.70% 1.32% ff shortening PORTALEZA Shortening 0.00% 0.00% 0.00% 16.00% 14.20% 13.14% 0.00% 0.00% 0.00% 0.00% 0.00% 0.57% 0.00% 0.00% 0.08% isabela 0.30% 0.30% 0.26% 0.30% 0.20% 33.40% 26.20% 0.35% 23.55% Flour Bran Cakes Snacks Cake Mix Packaged toasts Total Calculation based on sales net of discounts and returns (revenues) derived from managed forests or recycled materials. R&D initiatives focused in nutrition and health remain underpinned by two main pillars: developing products that contribute to reducing the nutritional deficit and promoting enhancements of health attributes of products, such as reduction of sodium, sugar and trans fat. The ongoing actions include research to enable the use of alternative raw materials, especially in vegetable oils and shortening, strengthening the vertical integration of the business and allowing increased flexibility in formulations by excluding trans fats and reducing saturated fats. R&D area also has a strong role in process optimization, resulting in 2021, among many other fronts, in the change and optimization of the soy oil refining process, reducing the consumption of inputs and water in the processing and the production of effluents and waste. It has also worked strongly with sustainability initiatives aimed at reducing water consumption and waste. Richester Treloso WTARELLA The premium Adria Grano Duro line has two new cuts: Spaghettoni and Spaghettini. Launch of Mega Wafer cookies and crackers, in tablet format, in milk chocolate, white chocolate and truffle flavors, in 90g packages. The 80g version of the brand's Cookies was launched in the flavors vanilla with chocolate drops and chocolate with chocolate drops. *Launch of the Sequilhos cookies and crackers in coconut and milk versions, in 250g packages. *Within the trend of packages for the whole family, the Toast promopack was launched in Traditional and Whole grain flavors. The package has a net weight of 284g, and includes two packages of 142g. In sweet cookies and crackers category, Crystal Fortress was launched in 450g packs. In partnership with the Mu-Mu brand, Isabela launched the Wafer (100g), Mousse (130g), and Tortinhas (140g) line of cookies and crackers in milk jam flavor. The brand also expanded Chocks line with the launch of the white chocolate flavor in a 100.8g package. The product also won a 63g bag version, which which is pocket-sized. Launch of the limited edition of Amori cookies and crackers filled with hazelnut and brownie flavors. Another novelty is Amori Chocowaffer, iced with chocolate and filled with thin layers of wafer, in packages of 100.8g. The line has a chocolate and white chocolate version. For a limited time, the Mini brownie, milky flour, and raspberry candy filled cookies and crackers were launched in 60g and 130g packages. The success of the products gave rise to the unprecedented partnership with FriSabor Ice Cream Parlor, the largest chain of ice cream parlors in Pernambuco, for the launch of the ice cream version of the cookies, ensuring the original crunchiness. The brand also launched the multipack versions of 240g and 480g of its chocolate- flavored filled cookies and crackers. The brand has teamed up with Mattel for the creation of a line of instant noodles featuring Barbie and Hot Wheels characters. Products are available in soft beef (Barbie) and soft chicken (Hot Wheels) flavors. The brand's cookie portfolio has been expanded with 80g packages for the flavors original with chocolate drops and chocolate with chocolate drops. D-Tone line, which stands out for containing chocolate in the coating, gained the compact 63g package and was expanded with the white chocolate flavor, with 100.8g. In limited edition, specific products were launched for June Party, the biggest festival in Northeast region. With the typical flavors of the regional festival, the novelties were the 100g hominy wafer and the 350g corn-flavored donuts.
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