# Dear Stakeholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/basic-materials-specialty-chemicals/NYSE_ODC_2019/NYSE_ODC_2019.mmd` · pages 2-8_

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Dear Stakeholders,

Our 2019 fiscal year was a very challenging year for Oil-Dri, but an incredibly important one in our never-ending effort to CREATE VALUE FROM SORBENT MINERALS. We started the fiscal year with the launch our new Enterprise Resource Planning (ERP) software system on August 1, 2018. Although the "Go Live" event was very challenging, the new platform will help us create value in the long term by increasing the efficiency of our processes and improving productivity and reporting capabilities. I am so appreciative of all of the extra time and effort that Oil-Dri teammates put in to make this transition as seamless to our customers as possible. The first few months were very difficult, but I am happy to report that by fiscal year's end, the new system was working well and providing us with the foundation necessary to support future growth.
We made several very significant strategic moves during the year that will benefit the company for years to come. In August, Flemming Mahs joined the company as President of Amlan International, our wholly-owned animal health subsidiary. He is heading up our efforts to grow our animal health business by promoting the use of our mineral as a natural alternative to manage disease in livestock. In December, Susan Kreh joined us as our Chief Financial Officer. She is leading our Finance, Accounting and Information Systems teams and will help leverage our new ERP system to improve productivity. In February, Jessica Moskowitz was promoted to Vice President and General Manager of our Consumer Products Division. She is focused on growing our Cat's Pride \( ^{®} \)  and Jonny Cat \( ^{®} \)  brands through continuous quality improvements and innovation. In April, Molly VandenHeuvel joined Oil-Dri as our Chief Operating Officer. She is leading our entire supply chain (Manufacturing, Logistics, Procurement and Customer Service) and our product
development team at our Nick Jaffee Center for Innovation. Her major area of focus is to implement Sales & Operations Planning/Integrated Business Planning. This is a first for Oil-Dri and became possible with the implementation of our ERP system. I would also like to recognize our other valuable teammates, many of whom we are lucky to have as long tenured employees. They continue to provide immeasurable support to our company.
In conjunction with these investments, we also completed the second phase of the Richard M. Jaffee Center for Applied Microbiology. This new facility enables us to broaden the scope of our research capabilities as well as provide our customers with improved technical support.

We now have the infrastructure, people and resources in place to support future growth. Additionally, we have virtually no long-term debt and have an untapped $45 million revolver, so we are well positioned to capitalize on growth opportunities as they arise.

The team and I are proud that we were able to raise our dividend for the 16 \( ^{th} \)  consecutive year. We very much appreciate the support of our long time stockholders and look forward to executing our growth strategies in our Consumer and B2B business units.

![](images/2_0.jpg)

DANIEL S. JAFFEE

President & Chief Executive Officer