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.