Neogen Dealer Solutions: Are Rodents Ruining Your Customer s Return?

Animal Health International Neogen Dealer Solutions: Are Rodents Ruining Your Customer s Return? Matt Meyer Distributor Account Executive National Sales Meeting Las Vegas, NV

Agenda Neogen Update Rodent Overview Why Use Rodenticides? Neogen Solutions for Rodent Control Other Neogen Dealer/Retail Solutions Instruments & Insecticides Questions

Mission Statement The Mission of Neogen Corporation is to be the leading company in the development and marketing of solutions for food and animal safety.

Securing Our Food Supply From Farm to Fork Allergens Mycotoxins GMOs Ruminant Proteins Indicator Organisms Animal Health Spoilage Bacteria Antibiotic Residues Foodborne Pathogens BioSecurity Sanitation Monitoring

Key Corporate Facts NASDAQ....NEOG Fiscal Year....May 31 FY14 Sales..........$247 million (19% ) FY14 Net Income......$28 million 2 Divisions.....Animal & Food Safety Stock Price.......$47.48 (6/11/15) Shares Outstanding (Fully Diluted)..37,042,058 Quarterly Increases......92/97 Full time employees...........1100 US Manufacturing....6 sites International...40% of total sales

Neogen Brands 28 Acquisitions since 2000

Neogen Organizational Support Director of US Sales - John Malley National Account Manager Lisa Peterson Distributor Sales Specialist (1) Distributor Account Executive - Matt Meyer Animal Health International OTC Territory Managers (6) & Sales Support Specialist (1) Animal Protein Team (6) Techical Service Vets (3) Neogen Marketing Dept. (12) Vet/Ethical Territory Managers (5)

Rodent Overview What is a rodent? Mammal characterized by a single pair of continuously growing incisors in each of the upper and lower jaws (chisel shaped teeth) Types of Rodents: Rats: Norway Rats and Roof Rats Mice: House mice and Deer Mice Voles Moles Gophers Squirrels Prairie Dogs

Rodent Overview Characteristic Norway Rat Mouse Size (including tail) 16.5 inches 6 Inches Average Wt. 18 oz..7 oz When Active Nocturnal Nocturnal Sight Poor (5 ft.) Poor (3 ft) Smell, Touch, Taste Excellent Excellent Hearing Highly Accurate Highly Accurate Droppings Bean size Rice size Fear of new objects 3 7 Days 3 min 5 hours Sexually Mature 2-4 months 35 days Life Span 12 months 15-18 months Reproduction Approximately 20 young/year Approximately 50-60 young/year

Why Use Rodenticides? #1 Cause of Economic Loss on the Farm Each year producers experience multi-billion dollar losses from rats and mice due to: Feed Loss Feed Contamination Disease Transmission Structural Damage

Feed Loss Rats Mice Feed Requirements: 1 oz feed/day Feed Requirements: 3 grams feed/day How much feed will rats and mice consume in one year? 20 + pounds of feed per year 5 + pounds per year Quick Fact: A colony of 100 rats will consume over 1 ton of feed in one year

Feed Loss: Dairy Farms Suppose feed cost is $9.52/cwt*, what is your total cost of feed loss from rodents? Source Information: *Data from "Costs of Major Inputs National Average Dairy Feed Costs." Monthly Data. N.p., n.d. Web. 22 May 2015.

Feed Loss Total Cost of Feed Loss from Rats in One Year # of Rats Cost of Feed Consumed 1 $2 10 $20 25 $50 50 $100 100 $200 200 $400 400 $800 800 $1600 1000 $2000 2000 $4000 Total Cost of Feed Loss from Mice in One Year # of Mice Cost of Feed Consumed 1 $1 10 $5 25 $12.50 50 $25 100 $50 200 $100 400 $200 800 $400 1000 $500 2000 $1000 $9.52/cwt = $9.52/100 lbs = $0.0952/ lb = $0.10/lb feed If one rat eats 20 lbs of feed a year, $0.10/ lb x 20 lbs/year x 1 rat = $2.00 per year

Feed Contamination One rodent can contaminate 10x the amount of feed it eats with feces, urine, saliva, blood, and hair. Number of Rats Total number of fecal droppings produced per year 1 25,000 10 250,000 25 625,000 50 1,250,000 100 2,500,000 200 5,000,000 400 10,000,000 800 20,000,000 1000 25,000,000 2000 50,000,000 Number of Mice Total number of fecal droppings produced per year 1 17,000 10 170,000 25 425,000 50 850,000 100 1,700,000 200 3,400,000 400 6,800,000 800 13,600,000 1000 17,000,000 2000 34,000,000

Feed Contamination What is the impact of feed contamination to the dairy farm? Feed cost is $9.52/cwt* Each dairy cow consumes an average of 50lbs** of feed a day... Source Information: *Data from "Costs of Major Inputs National Average Dairy Feed Costs." Monthly Data. N.p., n.d. Web. 23 Feb. 2015. ** Data from "Purdue University." Purdue Food Animal Education Network. N.p., n.d. Web. 23 Feb. 2015.

Feed Contamination: Dairy Farms Rodents can contaminate an estimated 20% of feed by constantly urinating and defecating while moving about. Cost of Feed Contaminated by Rodents in One Year Herd Size Percentage Contaminated Cost of Feed Contaminated 100 1% $1,736 100 5% $8,682 100 10% $17,365 100 20% $34,730

Disease Transmission

Disease Transmission Disease can cause: Slow growth of livestock Reduced fertility Decreased milk production, egg production, etc Death

Cost of Disease Increased veterinary costs Increased replacement costs Increase in overall cull rate Decreased milk production Decreased slaughter value Decreased feed efficiency Loss of marketing animals for sale Premature culling of clinical or infected animals Increased susceptibility to other disease and possible breeding problems Loss of investment in young stock that have been infected or exposed since birth Decreased pool of available replacements, thereby limiting genetic pool

Structural Damage Protect Your Facility Damage caused by rodents includes: Damage to insulation Burrows Gnawed wiring and damaged wood Damage to building structure It is estimated that up to 50% of farm fires are related to the presence of rodents.

Rodent Control Solutions Controlling Rodents 1) Reduce feed loss by rodents 2) Reduce feed contamination by rodents 3) Reduce incidence of disease spread by rodents 4) Reduce structural damage caused by rodents How Can We Help You Help Your Dealers?

Neogen Rodenticides Providing High Quality, Versatile Solutions For Your Customer s Needs Neogen s 4-Step Program Products Retail Sets Literature Dealer and Distributor Programs Field and Technical Service

Neogen s 4-Step Program Protect your investment, control rodents in and around facilities. Step 1. Prevent Clean, clear, and implement preventative measures. Step 2. Identify Find the location and severity of the problem. Step 3. Execute Implement baiting strategy according to target rodents and locations. Step 4. Monitor Monitor the effectiveness of your program with record keeping. Frequency of baiting should change with increased activity.

Ramik Green Active Ingredient: Diphacinone 1 st generation anticoagulant Neogen s #1 Selling Brand Death in 4-5 days Fish flavored Nuggets are Hot" extruded, contain no wax and are weather resistant Available Nuggets, Bars, Mini-Bars, Place Packs, Mouser, Refillable Competitors: Tomcat (Motomco)

Havoc XT Active Ingredient: Brodifacoum 2 nd generation anticoagulant Death in 4-5 days Strongest anticoagulant available Can consume lethal does in single feeding Available in blocks and place pack pouches Contains Bitrex Competitors: Jaguar (Motomco)

NEW PRODUCT: Havoc Attack Active Ingredient: Brodifacoum Reformulated specifically for Large Producer Applications 2 nd generation anticoagulant Death in 4-5 days Strongest anticoagulant available Can consume lethal does in single feeding Available in blocks Competitors: Jaguar (Motomco)

CyKill Active Ingredient: Bromethalin Neurotoxin Fast acting - Death in 1-2 days Stop feed action rodents stop feeding after lethal dose Block and pellet (place pack) Low risk of secondary poisoning Competitors: Tomcat w/ Bromethalin (Motomco) Gunslinger (Liphatech) Just One Bite (Farnam)

Rotational Baiting Strategy 2 months October- November Bromethalin 4 months June-September Brodifacoum 6 months December- May Diphacinone Break the cycle of Anticoagulant and Behavioral Resistance

Mechanicals Glue Boards Snap Traps Bait Stations

Rodenticide Baiting Protocol Baiting Strategy should be planned according to rodent activity. Number of bait stations can be increased in an area where there is heavy rodent infestation.

Baiting Protocol Application What is the cost of investing in Neogen Rodent Control?

Baiting Protocol Application x x x x x x x x x x x x x x x x 200' x 40' Barn Housing 100 cows x x x x x x x x x x x x x x x x x Milk House x Exterior bait stations placed 50 apart with two bait stations placed on both sides of the doors on either end. 12 Bait Stations applied. Interior bait stations place 20 apart. 20 Bait Stations applied. 2 Bait Stations placed inside office/milk room. All Bait Stations filled with 4 units of baiting material.

Baiting Protocol Application Neogen Rodenticide Products Inventory ID Product Description Form Number of Months 000560 Bait Station Rodent Cafe 1/bx Bait Station 12 112830 CyKill Blocks 9lb Pail Block 2 116393 Havoc Attack 10lb Pail Block 4 116316 Ramik 3/16" 45x43g/pk Pail Bait Pack 6

Cost of Rodents Total Cost of Feed Loss from Rats in One Year # of Rodents Cost of Feed Consumed 200 mice $100 200 rats $400 Cost of Feed Contaminated by Rodents in One Year Herd Percentage Cost of Feed Size Contaminated Contaminated 100 20% $34,730

Dairy Farm: Baiting Protocol Cost Yearly Cost: 100 Cow Dairy Utilizing 34 Bait Stations Scenario 1 Bait Station Cost $ 262.28 Replace 4 Units of Bait in ALL Stations 4x month $ 2,568.42 Total Cost: $ 2,830.70 Scenario 2 Bait Station Cost $ 262.28 Replace 4 Units of Bait in ALL Stations 2x month $ 1,379.34 Total Cost: $ 1,641.62

Night Hawk Filming Neogen s Night Hawk infrared camera surveillance system: 1. Two camera high resolution system allows observation of rodent activity and behavior in low light or total dark environments 2. Fully enclosed and water proof, allowing the entire system to be completely disinfected 3. Camera is mounted on a tripod and controlled remotely through a wireless router 4. Excellent tool for rodenticide program evaluation and potential program changes

Night Hawk Filming

Protect Your Investment Investing in Neogen s 4-Step Rodent Control Program will help: 1) Reduce feed loss by rodents 2) Reduce feed contamination by rodents 3) Reduce structural damage caused by rodents 4) Reduce incidence of disease spread by rodents Invest in rodent control to protect your financial investment.

Rodent Retail