This the cover of our 2017 Annual Report to shareholders.

Transcription

1 This the cover of our 2017 Annual Report to shareholders. 1

2 Certain portions of this presentation that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management s Discussion and Analysis of Financial Condition and Results of Operations in the Company s most recently filed SEC Form 10-K. While we believe the representations in this presentation are accurate, investors are invited to review all publicly filed company documents at 2

3 In the Beginning 1982 Herbert D. Doan President & CEO, Retired Dow Chemical Corporation James L. Herbert Founder, Executive Chairman Neogen Corporation Neogen was founded in 1982 by Ted Doan who had recently retired from Dow Chemical, and Jim Herbert, former Vice President for DeKalb Agricultural Research. The company received early funding from the Michigan State University Foundation. 3

4 Our Mission The Mission of Neogen is to be the leading company in the development and marketing of solutions for food and animal safety. Neogen s Mission has remained the same since the company s beginning. 4

5 Products & Markets: Overview Food Safety Revenues TTM (through 2/28/18) - $192.2MM Diagnostic tests for food and feed producers and processors. Food Safety 49% Animal Safety 51% Animal Safety Revenues TTM (through 2/28/18) - $199.6MM Veterinary instruments, animal care products, cleaners and disinfectants, insecticides, rodenticides, diagnostic tests for drug detection in livestock and racing animals, vaccines, and genomics analysis. For accounting purposes we cleave the business into two halves Animal Safety and Food Safety, but we think of our business as Food Safety serving food producers and processors at every point in the process. 5

6 We Are A Food Safety Company From Inside the Farm Gate Intervention Products Vet Instruments To Food on the Plate Diagnostic Products Toxins, Allergens & Drug Residues Life Sciences Animal Care Rodenticides, Pesticides, Cleaners & Disinfectants DNA Testing Bacterial & Sanitation Dehydrated Culture Media Neogen is an acknowledged leader in food and animal safety products. We provide diagnostic test kits, instrument systems, reagents, dehydrated culture media, software and services for the food safety testing market. For animal safety, we provide a complete line of veterinary diagnostics, instruments, pharmaceuticals, nutritional supplements, cleaners and disinfectants, rodenticides, and genotyping services. 6

7 Intervention Products Veterinary Instruments Rodenticides Insecticides Cleaners and Disinfectants Pharmaceuticals Diagnostic Tests Vaccines Genomics Analysis Neogen niche access $1+ Billion Niche market growth rate 5-7% Neogen market share 12% Neogen has products that compete in each segment of Animal Safety (Intervention Products) market. 7

8 Traditional Lab Methods Acumedia Dehydrated Culture Media Division Many in the food producing and processing industry still use techniques discovered and developed in the mid-1800 s. Neogen serves this market with its Acumedia dehydrated culture media lines. Over time, older methods are gradually replaced by more modern test formats, but traditional labs will continue to use this accurate, time tested method. 8

9 Diagnostics Products Tests for: Pathogens Toxins Allergens Drug Residues Spoilage Organisms Sanitation Genomics Analysis Neogen niche access $1+ Billion Niche market growth rate 8-10% Neogen market share 12% Neogen has products that compete in each segment of the Food Safety (Diagnostics Products) market. 9

10 Thousands Thousands Revenue / Net Income $500,000 $50,000 $400,000 $40,000 $300,000 $30,000 $200,000 $20,000 $100,000 $10,000 $ Revenue Net Income TTM 17 $- Neogen s Revenue Growth Rate since 2000 is 17.8% Neogen s revenues and net income show dynamic growth. 10

11 Products & Markets Our customers include the world s top food and animal producers and processors. Over four hundred products Thousands of SKUs We conduct business with the world s largest food producers and processors. Every Tractor Supply Store features this full display of Neogen-made veterinary instruments and animal husbandry products for the veterinarian, rancher, dairyman and farmer. 11

12 Competitive Advantage Dedicated Sales and Marketing team fosters a relationship business Market Oriented Approach Widest Product Array in the Industry Superior Service and Support Neogen has grown to be a formidable competitor by emphasizing our strengths and advantages in the marketplace. 12

13 Strategy for Growth Expanding Market Share Internally Developed Products Synergistic Acquisitions Expanding International Growth Neogen employs key strategies to promote future growth. 13

14 Internally Developed Products The AccuPoint ATP Sanitation Monitor on Neonet Users retrieve worldwide test data instantly via the Internet. All-in-one Reveal Q+ MAX for Mycotoxins Industry s only water-based test for up to six mycotoxins from the same extraction sample. Reduces Time-To-Results from 24 hours to less than 60 minutes! We respond to our markets needs with new and innovative technology. 14

15 Acquisition History Acquisitions play a key role in our Past, Present and Future. 37 accretive acquisitions since 2000 Average Purchase Price = 1.4 x Revenues Neogen s acquisitions account for almost half of its historic growth rate. 15

16 Recent Acquisitions DeoXi (April, 2016) DNA testing laboratory in Brazil. Only Illumina-equipped lab dedicated to animal testing in Brazil. Preserve Int l and Tetradyne (May, 2016) Family owned U.S. manufacturer of cleaners and disinfectants for swine, poultry and dairy industries. Quat-Chem (December, 2016) UK-based manufacturer of cleaners and disinfectants. Rogama (December, 2016) Brazil-based manufacturer of cleaners and disinfectants. University of Queensland - Animal Genomics Laboratory (September, 2017) Australia-based genomics lab, now Neogen Australasia. Neogen constantly seeks to improve its product portfolio with synergistic acquisitions. 16

17 Growing International Presence Neogen is growing. We have eight U.S.-based and eleven international locations. 17

18 International Sales % of Revenue $450,000,000 $400,000,000 $350,000,000 $300,000,000 Int l 38% $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ TTM 123 Distributors in 114 Countries Direct-to-Market in the UK, Germany, France, Netherlands, Mexico and Brazil Direct sales presence in China and India Changing Regulatory Environment We believe two-thirds of our opportunities lie outside the United States. International sales are growing. 18

19 Key Facts Symbol Corporate Headquarters Stock Price (3/31/18) 52-Week Range Shares Outstanding (Fully Diluted) Market Capitalization Average Daily Volume (last 60 trading days) Debt Insider Ownership Institutional Ownership Full-time Employee Positions Fiscal Year Accounting Firm NEOG (Nasdaq) Lansing, MI $ $ $ ,961,000 $3,480,867, ,731 $0 3% 92% 1600 May 31 BDO USA, LLP Here are some key facts about the company, as of the most recent date shown. 19

20 Selected P&L Data (First Nine Months) Q317 Q318 (in millions except EPS) (2/28/17) (2/28/18) Revenues $ $ $ $ Net Income $ 36.5 $ 43.8 $ 31.3 $ 45.6 EPS $.73 $.86 $.61 $.88 Gross Margin 47.6 % 47.6% 47.6% 48.0% Operating Income 17.6 % 18.0% 17.5% 17.2% Neogen s revenues and income growth are strong. 20

21 Balance Sheet (In thousands) Q117 Q318 Assets Current assets $ 292,961 $ 352,204 Other assets 235, ,397 Total assets $ 528,409 $ 595,601 Liabilities & Stockholders Equity Current liabilities $ 36,002 $ 37,293 Long-term debt 0 0 Other long-term liabilities 20,650 16,373 Equity 471, ,935 Total liabilities & stockholders equity $ 528,409 $ 595,601 Neogen s balance sheet is solid. 21

22 Financial Milestones Revenues Increases in year-over-year quarterly comparisons for 104 of the past 109 quarters Last ten years 16.1% CAGR Net Income Profitable in each of the past 97 quarters 16.5% growth for the past ten years Neogen s history of growth has produced significant financial milestones. 22

23 Investment Opportunity Sustained Growth Consistent Business Execution Experienced Management Team Expanding Worldwide Markets We believe there is much to recommend Neogen as an investment opportunity. 23

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