In the Beginning. Herbert D. Doan President & CEO, Retired Dow Chemical Corporation. James L. Herbert Chief Executive Officer Neogen

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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 Chief Executive Officer Neogen 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 Neogen in the Food Chain Regulators Animal Genomics Feed Production Animal Safety Agriculture and Farm Production Food Security Species Identification Processing Consumer Testing and Compliance Given its focus on the farm gate to the dinner plate, you can find Neogen in many places along the food value change. We have tests for pathogens and natural toxins, food allergens, drug and pesticide residues, speciation & economic adulteration, sanitation monitoring, general microbiology, veterinary instruments, vaccines and supplies, companion animal products, DNA testing for animals, diagnostic products, rodenticides, disinfectants and more! 5

6 Leader in Food & Animal Safety Food Safety Diagnostic test kits Instrument systems Consumables Culture media Services Animal Safety Veterinary supplies Instruments Nutritional supplements Disinfectants Rodenticides Genomic Solutions Neogen is an acknowledged leader in food and animal safety testing products. We provide diagnostic test kits, instrument systems, consumables, 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, disinfectants and rodenticides. 6

7 Products & Markets: Overview Food Safety Revenues Q $53.8MM Diagnostic tests for food and feed producers and processors. Food Safety 50% Animal Safety 50% Animal Safety Revenues Q $53.3MM 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. 7

8 Worldwide Genomics Services Ran over 4 Million samples in 2018 Breeding optimization Detecting microorganisms in a production environment Labs in Australia, Brazil, Scotland and Lincoln, Nebraska AND now Canada 8

9 Intervention Products Bio Security Rodenticides Insecticides Cleaners Disinfectants Pharmaceuticals Diagnostic Tests Vaccines Vet Instruments Neogen has products that compete in each segment of Animal Safety market. 9

10 Natural Toxins Aflatoxin DON Fumonisin Ochratoxin T-2 Toxin Zearalenone Histamine 10

11 Pathogen Detection Detect deadly organisms that could be in animal feed or human food such as Salmonella and E. coli, Listeria and Campylobacter 11

12 Allergen Testing Solutions Trace amounts of food allergens in a product must be shown on the label in markets around the world 12

13 Neogen Culture Media Neogen 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 Neogen culture media line. Over time, older methods are gradually replaced by more modern test formats, but traditional labs will continue to use this accurate, time tested method. 13

14 Spoilage Organisms Microorganisms will cause food to spoil but not necessarily be pathogenic to the consumer 14

15 Antibiotic Drug Detection Drugs used to treat a dairy cow cannot continue their pathway into the milk that we drink 15

16 Bacterial & General Sanitation Surface Sampler Water Sampler 16

17 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. 17

18 Revenue / Net Income $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600, TTM Revenue Net Income 18

19 Strategy for Growth Expanding Market Share Internally Developed Products Synergistic Acquisitions Expanding International Growth Neogen employs key strategies to promote future growth. 19

20 Internally Developed Products 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. 20

21 Internally Developed Products 21

22 Internally Developed Products 22

23 Mergers & Acquisitions 40 acquisitions since the year

24 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. Clarus Labs, Inc. (August, 2018) Water Microbiology Testing Technology that includes the patented Colitag water test, which detects dangerous coliform bacteria. Livestock Genetic Services (September, 2018)- Virginia-based company that specializes in genetic evaluations and data management for cattle breeding organizations Neogen constantly seeks to improve its product portfolio with synergistic acquisitions. 24

25 Introducing Neogen Canada LANSING, Mich., Jan. 2, 2019 Neogen Corporation (NASDAQ: NEOG) announced today that it has acquired the assets of the Edmonton-based Delta Genomics Centre a major animal genomics laboratory in Canada. With the acquisition, Delta s laboratory operations will be renamed Neogen Canada, and become Neogen s fifth animal genomics laboratory joining locations in the U.S., Scotland, Brazil, and Australia. The acquisition is intended to help accelerate the growth of Neogen s animal genomics business throughout Canada. 25

26 Neogen Around the World Ayr, Scotland Lincoln, NE Lansing, MI Lexington, KY Mexico City Erftstadt, Germany Shanghai, China Cochin, India Indaiatuba, SP, Brazil Gatton, Australia Representation in >100 countries In addition to our corporate and food safety headquarters in Lansing, Michigan, Neogen operates sales, marketing and distribution facilities in Lexington, Kentucky; Lincoln, Nebraska; Mexico City, Mexico; and Ayr, Scotland, as well as sales and distribution offices in Indaiatuba, Brazil; Erfstadt, Germany; and Shanghai, China. A network of 123 distributors carry Neogen products to more than 100 countries throughout the rest of the world. 26

27 International Sales % of Revenue Int l 39.6% $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $ YTD distributors in 146 countries Direct-to-Market in the UK, Germany, France, Netherlands, Mexico and Brazil New 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. 27

28 Key Facts Symbol Corporate Headquarters Stock Price (1/8/2019) 52-Week Range Shares Outstanding (Fully Diluted) Market Capitalization Average Daily Volume (last 50 trading days) Debt Insider Ownership Institutional Ownership Full-time Employee Positions Fiscal Year Accounting Firm NEOG (Nasdaq) Lansing, MI $ $ $ ,081,876 $3.051 B 232,426 $0 1.7% 92% 1600 May 31 BDO USA, LLP Here are some key facts about the company, as of the most recent date shown. 28

29 Selected P&L Data Q219 Q218 (in millions except EPS) (11/30/18) (11/30/17) Revenues $ $ $ $ Net Income $ 63.2 $ 43.8 $ 16.1 $ 17.2 EPS $ 1.21 $.86 $.31 $.33 Gross Margin 47.3 % 47.6% 46.7% 47.9% Operating Income 17.5 % 18.0% 17.0% 17.9% Neogen s revenues and income growth are strong. 29

30 Balance Sheet (In thousands) Q219 Q418 Assets Current assets $ 414,294 $ 375,789 Other assets 246, ,220 Total assets $ 660,492 $ 618,009 Liabilities & Stockholders Equity Current liabilities $ 38,760 $ 38,688 Long-term debt 0 0 Other long-term liabilities 19,658 19,146 Equity 602, ,175 Total liabilities & stockholders equity $ 660,492 $ 618,009 Neogen s balance sheet is solid. 30

31 Financial Milestones Revenues Increases in year-over-year quarterly comparisons for 107 of the past 112 quarters Since % CAGR Net Income Profitable in each of the past 100 quarters 19% growth annually since 2000 Neogen s history of growth has produced significant financial milestones. 31

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