Jefferies 2014 global healthcare conference
London, November 19 Éric Marée La santé animale est notre passion An independant international pharmaceutical group An international presence
736 M€ 30 sales subsidiaries turnover (outside France) + 5.9% vs 2012
56% companion animals Present in more than 44% food producing animals 100 countries
4,350 collaborators + 5% vs 2012 An international presence
736 M€ Europe 41% 31% of the global market North America 14% 33% of the global market
Far East 23% 19% of the global market
Latin America 18% RoW 4% 13% of the global market 3% of the global market Independent since more than 40 years
Created in 1968 by a French DVM Pierre-Richard Dick
Dick 50.3% 49.7% Others family group
Stock exchange Shareholders • listed since 1985 • The Dick family group holds • today listed NYSE Euronext 65.7% of voting rights compartiment A – SBF 120 Exclusively dedicated to animal health
Worldwide ranking Worldwide market: 23 B$
Zoetis 4359
3 282 2 632 2 094 1 592 1 398 100% animal health 1 048 Ranked 8th worldwide Virbac 909 902 396
(M$)
Vetnosis Standard Monitor 110 Q4 2013(proforma, excluding non animal health activities) An ingenious range covering the majority of species & pathologies The majority of species & pathologies
A complete range: pharmaceutical and biological drugs, nutritionnal and diagnosis product For an optimal use
• Products are made for . increased convenience and user friendliness . higher safety . enhanced effectiveness . better compliance
Distribution authorised to the general public in accordance with national regulations (distribution prohibited for France) Pioneer in the companion animal market
19.2 %
16 %
11.3 %
9 %
Virbac 5.5%
5.3 % th 5.2 % ranked 5 4.9 % worldwide 2.3 %
2.1 %
(M$)
Vetnosis 2013 (sales 2012) Pioneer in the companion animal market
• A leader position on the following segments . vaccines . dermatology . dental care . electronic identification . reproduction
• An innovative petowner offer in markets with high potential . internal and external parasiticides . petfood Pioneer in the companion animal market
MIS 2013 - Distribution authorised to the general public in accordance with national regulations (distribution prohibited for France) Food producing animals: a dynamic development
20.4 %
18.9 %
11.3 %
7.8 %
6.7 %
3.7% th 4.2 % Ranked 9 3.6 % worldwide Virbac 3 % 1.5 %
(M$) 1 %
Vetnosis 2013 (sales 2012) Food producing animals: a dynamic development
• A buoyant and challenging market . regular growth: increased needs for animal proteins throughout the world (especially in emerging countries) . economic performance and high product effectiveness are required: regulatory constraints (environmental impact, food safety…)
• A key positioning on antibiotics and parasiticides
• An offensive strategy on future segments . vaccines (alternatives to antibiotics) . aquaculture (the prime source of animal protein worldwide with fishing) Food producing animals: a dynamic development
MIS 2013 - Distribution authorised to the general public in accordance with national regulations (distribution prohibited for France) Sales breakdown by region and business 2013
North Other developped Emerging Europe America countries* countries 41.8% 13.8% 12.7% 31.7%
Companion 29.1% 13.2% 5.6% 6.9% animals 54.9%
Food producing animals 43% 12.3% 6.4% 24.3%
Others 2.1% *Australia, New-Zealand, Japan, Korea A complete range of services
MEDICAL PRACTICE CLIENTS EXPERTISE MANAGEMENT RELATIONSHIPS
. Technical and scientific support . Management training . Software to help for diagnosis, (hotline, in practices) (marketing, finance, legal…) prescription and dispensing (web tools, iPad, iPhone) . Technical training . Merchandising training . Tools for quality diagnosis and . National and international . Audit in practices and client satisfaction congresses, webcasts (symposiums) coaching . Tools for petowner loyalty . e-learning programme . Tools for animal follow-up . Exchange travels for food producing animal veterinarians Continuous technological innovation sensitive to the clients’ needs A specific innovation model
Listening to Virbac Technological the client Innovation advances
• R&D: a substantial portion of the budget dedicated to development (biologicals and chemical molecules)
• Formulation: specific skills and know-how to original formulations and techniques
• Business Development (licensing & acquisitions): companies, products, molecules, formulations A worldwide R&D organisation
R&D locations France on the USACompanion 5 continents animals Thailand to fit the specific Ruminants Vietnam needs of the main Mexico Swine markets Aquaculture
Aquaculture Santa Elena Australia Chile A global management of projects organized by species A reactive supply chain responding to the highest quality standards A dynamic industrial system
• A demand-led production . Reactive, made-to-measure and flexible (multiple small batches) . A special programme to improve industrial competitiveness (Lean manufacturing)
• An optimised industrial tool . An efficient ERP . Production units located nears R&D centers The highest international quality standards
USA France GMP US (FDA & EPA) GMP Europe (EMA) GMP Europe (EMA) Vietnam GMP US (EPA) GMP Australia (APVMA) GMP Vietnam (WHO) GMP Europe (EMA) Mexico GMP Mexico (SAGARPA) Australia Brazil GMP Australia (TGA & APVMA) GMP Brésil GMP Europe & USA (USDA & EMA) (MAPA) RSA GMP RSA (Act 101 & 36) Chile Uruguay GMP Europe (EMA) New Zealand GMP Chili (SAG) GMP MERCOSUR (DILAVE) GMP New Zealand (ACVM) GMP Australia (APVMA) A close relationship with veterinarians and farmers in every country A sales model based on proximity
• Client knowledge: search for excellence, needs follow-up (CRM), focus groups, field visit, measure of satisfaction
• Personalised relationship: availability, advice, warmth, service culture
• Geographical cover: almost total in each country
• Partnership B2B win-win: support of the client for the development of its activity (marketing, management, technical training, administration…) and efficient key account management A responsible company focused on the future A responsible company
• Economic: regular growth, governance transparency, suppliers ethical commitment, local investment
• Environmental: non-polluting activities, waste and consumption reduction, green IT
• Social: respect for humankind, encouraging of individual initiative, skills developement, reflection of diversity Growth acceleration in the last 5 years (turnover, M€)
736.1
800 +3.9% p.a external 700 +10.7% p.a 106,7
600 443.4 186 +6.8% p.a organic 500 354.8 +4.6% p.a
400
300
200
100
0 2003 2008 2013 Profits doubled in the last 5 years (M€)
120 104.9 98.1 100 85.7 77.6 80 66.6 63.4 57.5 60.5 54.4 58.3 60
35.5 38.8 40
20
0 2008 2009 2010 2011 2012 2013
Operating profit, recurring Net profit, group share Share price growth: 22.8% p.a. in the last 5 years Thank you for your attention