Idexx Laboratories, Inc. · NASDAQ:IDXX
Idexx Laboratories — Investor Day (August 2022)
131 slides from Idexx Laboratories's investor day presentation, Aug 11, 2022
Slide 1: IDEXX Laboratories, Inc. Investor Day
IDEXX Laboratories, Inc. Investor Day August 11, 2022 I 8:00 AM (EDT)
Slide 2: Jay Mazelsky
Jay Mazelsky President and Chief Executive Officer Blake 2 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 3: 2022 IDEXX Investor Day Agenda
2022 IDEXX Investor Day Agenda Time Event Length 8:00 - 8:05 am Welcome and Introductions Jay Mazelsky, President and Chief Executive Officer 8:05 - 10:45 am Business Reviews ▪ Jay Mazelsky – IDEXX Opportunity and Strategy Overview 40 min ▪ Tina Hunt, PhD – IDEXX VetLab and Operations 20 min ▪ Julie
Slide 4: Safe Harbor Disclaimer
Safe Harbor Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning
Slide 5: IDEXX Opportunity and Strategy Overview
IDEXX Opportunity and Strategy Overview Jay Mazelsky, President and Chief Executive Officer IDEXX Investor Day I August 11, 2022
Slide 6: IDEXX Focus: Increasing Companion Animal Healthcare Globally
IDEXX Focus: Increasing Companion Animal Healthcare Globally Through Innovation, Insight and Customer-focused Engagement ▪ Decades+ opportunity to increase standard of care (~$37 billion TAM) ▪ Innovation delivering best-in-class, integrated diagnostic and software solutions ▪ Global commercial capa
Slide 7: Pursuing Our Purpose While Making a Positive Impact on a Global Scale
Pursuing Our Purpose While Making a Positive Impact on a Global Scale Innovation and Access Environmental Sustainability People and Culture Community Impact $161 million 38% 10,350 36 Initiatives In Research & Target to reduce Scope 1 & 2 Total global IDEXX Foundation high-impact Development GHG emi
Slide 8: Decades+ Opportunity for Profitable Growth in Diagnostics Globally
IDEXX Has Decades+ Opportunity for Profitable Growth in Diagnostics Globally Worldwide Total Addressable Companion Animal Diagnostics Revenue Opportunity ($37B Total, ~15% served)* 8% 22% Served North $12B 9% America Europe $13B Region Region $6B Asia Pacific 2% Region Latin America $6B Region * Tot
Slide 9: Diagnostics Sector Remains Vastly Underserved Globally
Diagnostics Sector Remains Vastly Underserved Globally 2021 Diagnostic Revenue per Companion Animal Practice ($k)* Top 14 Countries in terms of Diagnostic Segment Revenue Next 13 Countries in Terms of Total Diagnostic Segment Revenue * Revenue per country/region estimated at the manufacturer level.
Slide 10: Consistent Strategy Yields High Long-term Revenue Growth and ROIC
Consistent Strategy Yields High Long-term Revenue Growth and ROIC Supported by Expansion of CAG Diagnostics Recurring Revenue IDEXX Revenue and Normalized Organic Revenue CAGR3 ($B) $3.2B Key Growth Drivers 14% CAGR Other ▪ Innovation: diagnostic menu, Revenue $2.4B new and existing platform 11% CAG
Slide 11: Pet Healthcare Has Been a Resilient Sector
Pet Healthcare Has Been a Resilient Sector in Times of Economic Uncertainty and Outperforms in Recovery Cycles Year-over-year Growth1,2,3 IDEXX WW CAG Normalized IDEXX WW CAG Diagnostics Normalized Organic Revenue 1,2,3 Organic Recurring Revenue1,2,3 Total Personal Consumption Expenditure* * 2002 th
Slide 12: Pet Owners View Their Pets as Members of Their Families
Pet Owners View Their Pets as Members of Their Families and Can’t Imagine Giving them Up “My pet is part of my family.” 95% “Nothing would ever convince me 92% to give up my pet.” Percentages represent those responding “Strongly agree” or “Agree” on a 5-point agreement scale. Source: Pet Owner Surve
Slide 13: Pets Comprise Less than 2% of Spending for U.S. Households
Pets Comprise Less than 2% of Spending for U.S. Pet-owning Households Veterinary diagnostics spending averages 0.1% of household spending for those seeking care 2020 U.S. Pet Spending as a Percentage of Household Consumption Spending* Total Pet Spending for All Pet-owning Households For All Pet-owni
Slide 14: Pet Owners are Willing to Make Financial Tradeoffs
Pet Owners are Willing to Make Financial Tradeoffs to Care for Their Pets If Household Income Declined, Pet Owners Would Cover Pet Expenses by Reducing Spending on: eating out video streaming 88% 71% services personal live entertainment 79% grooming services 86% Source: Based on U.S. pet parent resp
Slide 15: Medical Services Are Expanding Driven by High-growth Diagnostics
Medical Services Are Expanding Driven by High-growth Diagnostics Average U.S. Revenue per Practice by Segment* ($M) Total U.S. Segment CAGR %*** 2010 – 2015 2015 – 2021 $1.8M Total 5.5% 8% Product ▪ Other Product 4% 3% ▪ Pharma & 5.5% 9% $1.2M Vaccines** $1.0M Medical Services 5.5% 9% (excl. diagnos
Slide 16: Diagnostics Frequency and Utilization Continues to Expand
Diagnostics Frequency and Utilization Continues to Expand Contributors to U.S. Companion Animal Diagnostic Revenue Growth per Practice* Average 2017-2019 Average H1’2020 – H1’2021 H1’22 Year-Over-Year Growth (%) Year-Over-Year Growth (%) Year-Over-Year Growth (%) + 5.5% + 13% + 4% + 8% + 1.5% + 7.5%
Slide 17: Testing Begets Testing
Testing Begets Testing Practices with higher bloodwork utilization in-house have higher utilization at reference labs Percentage of 2021 U.S. Clinical Visits Including a Chemistry Panel by Practice Decile 34% Best Demonstrated Utilization 28% Ref Lab Over 2x the average 15% Overall Mean 3% In-House
Slide 18: Multi-modality, Integrated Model Enables Flexibility for Customers
Multi-modality, Integrated Model Enables Flexibility for Customers More and more practices choose IDEXX across modalities IDEXX U.S. Companion Animal Customer Overlap Percentage of IDEXX Reference Lab or IDEXX In-house Chemistry Platform Customers Who are IDEXX Customers for Both* IDEXX Ref Lab ONLY
Slide 19: IDEXX Recurring Revenue Growth Has Outpaced Practice and Sector Growth
IDEXX CAG Diagnostics Recurring Revenue Growth Has Outpaced Practice and Sector Diagnostics Growth IDEXX U.S. CAG Dx Recurring Revenue Growth and U.S. Revenue Growth per Practice* (2016 – 2021 CAGRs) Total Revenue Clinical Revenue Diagnostics Revenue IDEXX CAG Dx Per Practice Per Practice Per Practi
Slide 20: Industry Has Strong Long-term Tailwinds
Industry Has Strong Long-term Tailwinds Long-term Sector Growth Drivers Remain Intact Near-term Factors Moderating Growth Strengthening Pet – Parent Bond Practice Capacity Innovation in Diagnostics, Software Macroeconomic and Therapeutics Environment Vet Clinic Practices Embracing Technology, Lappin
Slide 21: Pet Population Expanded Significantly Driven by Gen Z and Millennials
Pet Population Expanded Significantly* – Driven by Gen Z and Millennials Percentage of U.S. Dog-owning Households with at Least 1 Dog Under 2 Years of Age as of December 2021 6 months to 2 years Less than 6 months Gen Z Millennials Gen X Baby Boomers (Up to 25 years) (26 years to 41 years) (42 years
Slide 22: Step-up in Pet Ownership Will Have Long-term Benefits
Step-up in Pet Ownership Will Have Long-term Benefits U.S. Average Annual Net 2021 Average Clinical Practice Revenue Increase in Pet Population* Per Active Patient by Age Segment** $630 $650 ~5% $485 $445 Other $355 Revenue ~1% Diagnostics Puppies & Kittens Young Adult Senior Geriatric 2010 to 2019
Slide 23: Step-up in Pet Ownership Points to Unserved Sector Demand
Step-up in Pet Ownership Points to Significant Unserved Sector Demand Significant Step-up in Visits Through Pandemic U.S. Quarterly Average Clinical Visits per Practice Indexed with each 2017 quarter = 100 Pandemic period Historical trend continues 5%+ avg growth with step-up in pet ownership per pr
Slide 24: IDEXX Software Solutions Drive Productivity
IDEXX Software Solutions Drive Productivity Practice Information VetConnect PLUS Clinical Decision Support Pet Owner Engagement Management Software Cloud technology with highly integrated Personalized and intuitive AI-Powered clinical insights delivered Digitizing the clinical visit journey care man
Slide 25: Strong IDEXX Execution is Supporting Sector Growth
Strong IDEXX Execution is Supporting Sector Growth Worldwide Premium Instrument Installed Base* 18% CAGR 2010 - 2021 108k Key Growth Drivers Urinalysis ▪ Best-in-class solutions ▪ Technology for life philosophy Hematology ▪ Subject matter experts and trusted advisors 17.5k ▪ Customer programs center
Slide 26: IDEXX Innovation and Customer Engagement Supporting Sector Development
IDEXX Innovation and Customer Engagement Supporting Global CAG Sector Development IDEXX Annual R&D Investment Average Revenue and ($M, calendar years shown) 2016 – 2021 CAGR per Practice +150 bps +150 bps Diagnostic Revenue Clinical Revenue 1998 2001 2005 2010 2015 2021 IDEXX-engaged Practices Uneng
Slide 27: New Point of Care Testing Categories Through Technology Partnerships
New Point of Care Testing Categories Enabled Through Technology Partnerships IDEXX VetLab Diagnostic Suite Veterinary technology that… …supports a higher standard of care Catalyst One ProCyte One SediVue Dx New Platform New Platform #1 #2 27 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 28: Innovative New Point of Care Platforms Support Recurring Revenue
Innovative, New Point of Care Platforms Support Recurring Revenue and Have Multiplier Impact Worldwide SediVue Dx® Installed Base Powered by 800M images +24% > 14k +20% 11k International +35% +69% U.S. 2k Introduced in H1 2016 Year 1 Year 5 Year 7 28 © 2022 IDEXX Laboratories, Inc. All rights reserv
Slide 29: Meets Customers' Needs in a Differentiated Way
IDEXX Fully-integrated Multi-modality Diagnostic and Software Solution Meets Customers’ Needs in a Differentiated Way VetConnect PLUS Diagnostics & Imaging VetConnect® PLUS IDEXX Web PACS™ Wellness Plans Petly® Plans Clinical Workflow Vet Radar, Smart Flow Client Engagement Pet Health Network® Pro P
Slide 30: Expanding Team of Diagnostic Category Experts
Expanding Team of Diagnostic Category Experts in Key Geographies Globally >1,100 U.S. Fully direct ~ 2x + VDC expansion International ~ 1.5x U.S. Total Worldwide CAG Field-based Professional Headcount* Expanding Global Commercial Footprint Enables Reach Needed to Communicate IDEXX Differentiators *
Slide 31: IDEXX Brand Has World-class Customer Advocacy and High Loyalty
IDEXX Brand Has Continued World-class Customer Advocacy and High Loyalty Across Our Diagnostic Portfolio IDEXX U.S. Net Promoter Score World-class = 50 Reference Catalyst ProCyte VetConnect Labs One One PLUS Source: Double-blind primary research study conducted in April – May 2022, with following U.
Slide 32: Strong Trends Point to Sustained High Diagnostics Sector Growth
Strong Trends and Increasing Standard of Care Point to Sustained High Long-term Diagnostics Sector Growth Estimated Total Worldwide Companion Animal Diagnostics Spending ($M)* 9%+ Implied CAGR Base Case Scenario: CAGR 2021 - 2046 Continuation of past 10-year diagnostic utilization increase** Interna
Slide 33: IDEXX – Long-term Resilient, Durable Growth and Returns
IDEXX – Long-term Resilient, Durable Growth and Returns A Resilient and Durable Recurring Revenue Business Model with … ▪ Tremendous runway and positive demographic trends ▪ Expertly served by IDEXX’s differentiated innovation and commercial personalized touch model ▪ Generating strong long-term fin
Slide 34: Tina Hunt, PhD
Tina Hunt, PhD Executive Vice President and General Manager, Point of Care Diagnostics and Worldwide Operations Ishka 34 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 35: IDEXX VetLab and Operations
IDEXX VetLab and Operations Tina Hunt, PhD Executive Vice President and General Manager IDEXX Investor Day I August 11, 2022
Slide 36: Advancing Standard of Care with Real-time Diagnostics
Advancing Standard of Care with Real-time Diagnostics Patient Check-in History and Diagnostics Results and Patient Physical Exam Initiated Treatment Plan Check-out 2:00 pm 2:05 pm 2:11 pm 2:21 pm 2:27 pm Actionable results during the patient visit benefits pets, clients and practices 36 © 2022 IDEXX
Slide 37: Purpose Built, Industry Leading In-clinic Diagnostic Suite
Purpose Build, Industry Leading In-clinic Diagnostic Suite ▪ Broadest set of in-clinic solutions and menu ▪ Technology for Life Philosophy ▪ Intuitive, hands-off workflow and productivity benefits ▪ Highly integrated and reliable ecosystem ▪ End-to-end connectivity with PIMS 37 © 2022 IDEXX Laborato
Slide 38: Delivering Productivity and Time-saving Benefits to Practices
Delivering Productivity and Time-saving Benefits to Capacity-constrained Practices Workflow and Results Integration Benefits IDEXX Comprehensive Diagnostic Suite Two-way connectivity to PIMs Chemistry and Immunoassay for easy ordering and patient record The most expansive test menu integration, incl
Slide 39: ProCyte One Has Received Phenomenal Customer Response
ProCyte One Has Received Phenomenal Customer Response Compelling combination of differentiated menu, unprecedented ease of use, affordability Global Premium Hematology Analyzer Cumulative Placements 2020 – 2022 (thousands) Over 5,200 ProCyte Ones in 95 Countries ProCyte One ProCyte Dx LaserCyte Dx “
Slide 40: Our Analyzers Have World-class Customer Advocacy
Our Analyzers Have World-class Customer Advocacy and High Loyalty Hematology Analyzers Highly Differentiated Hematology Solutions U.S. Net Promotor Score ▪ Advanced diagnostics with several unique parameters World-class = 50 ▪ Consistent reference lab-quality results ▪ Highly accurate and reliable ▪
Slide 41: Catalyst One's Broad Global Appeal Drives High Customer Demand
Catalyst One's Broad Global Appeal Drives High Customer Demand Highly differentiated, comprehensive, excellent performance, affordable, appreciating value Global Chemistry Analyzer Installed Base (thousands) Catalyst One Catalyst Dx VetTest 41 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 42: Technology for Life: Cadence of New Menu on Catalyst
Technology for Life: Delivering a Cadence of New Menu on Catalyst 2010 2014 2016 2017 2018 2019 2020 2022 Total T4 CRP IDEXX SDMA Progesterone Bile Acids New and Improved Phenobarbital Thyroid Inflammation Kidney Reproduction Liver IDEXX SDMA Seizures Fructosamine IDEXX SDMA-TT4 Kidney Diabetes Thyr
Slide 43: SDMA Is an Essential Test in Every Chemistry Panel
SDMA Is an Essential Test in Every Chemistry Panel Outsized diagnostic value supported by extensive clinical evidence and over 90 publications IDEXX SDMA Clinical Decision Support Detects as little as 25% loss of kidney function* IRIS CKD Staging Support Earlier indicator of progressive kidney funct
Slide 44: New Catalyst SDMA Is Faster and Easier to Include
New Catalyst SDMA Is Faster and Easier to Include in Chemistry Panels IDEXX SDMA Inclusion in Faster and Easier to Use Design Responsible Product Stewardship Chemistry Panels 20% faster run time X ~29k lbs plastic avoided per year 14% fewer steps 44% reduction in packaging material X No separate rea
Slide 45: SediVue Dx Capabilities Continue to Advance
SediVue Dx Capabilities Continue to Advance Enabling customers to get more out of urinalysis…faster and with less effort Worldwide SediVue Dx® Installed Base Year 6 ~ 14,500 SmartService™ Customers Worldwide Year 5 800M images Year 4 Year 3 350M Year 2 175M Year 1 70M IMAGES Results interpretation 0
Slide 46: High Customer Interest with ~230k Additional Placement Opportunities
High Customer Interest in IDEXX Analyzers with ~230k Additional Global Placement Opportunities Global IDEXX Premium Instrument Global Incremental IDEXX Premium Instrument Installed Base* Placement Opportunity** 40k 227k 104k 108k Urinalysis 83k Hematology 29k International Chemistry United States 20
Slide 47: IDEXX VetLab Has Durable Recurring Revenue Growth Drivers
IDEXX VetLab Has Long-term Durable Recurring Revenue Growth Drivers Expanding customer base, new menu additions, core testing utilization growth, price realization IDEXX VetLab Recurring Revenue and Normalized Organic Revenue CAGR1,2,3 ($M) ~19% CAGR ~15% CAGR ~11% CAGR 1,2 Please refer to the Appen
Slide 48: IDEXX's Global Operations Performing Exceptionally Well
IDEXX’s Global Operations Performing Exceptionally Well Advancing capacity, resiliency, and efficiency to enable long-term growth and scalability 99% 99% On-Time Delivery Product Availability Locations serving and supporting >175 Countries 48 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 49: Environmental Sustainability Is Fully Integrated in Our Strategy
Environmental Sustainability Is Fully Integrated in Our Strategy Environmental Goals Reduce our operational impact Source 100% renewable by 38% by 2030 electricity by 2030 Includes gas (GHG) emissions (Scope 1 & 2) 2021 Initiatives Highlights Sustainable Packaging Product Stewardship Promoting Circu
Slide 50: Julie Godon
Julie Godon Vice President and General Manager, Rapid Assay Honey 50 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 51: Rapid Assay and SNAP 4Dx Plus
Rapid Assay and SNAP 4Dx Plus Julie Godon, Vice President and General Manager IDEXX Investor Day I August 11, 2022
Slide 52: Vector-borne Disease Screening Driven by Increased Prevalence
Vector-borne Disease Screening Is Being Driven by Increased Prevalence and Geographic Spread of Disease 2010 2021 “Test annually for tick-transmitted pathogens, especially in regions where pathogens are endemic or emerging.” - Companion Animal Parasite Council (CAPC)* * CAPC General guidelines for d
Slide 53: Only ~19% of U.S. Dogs Receive a Full Vector-borne Screen
Only ~19% of U.S. Dogs Receive a Full Vector-borne Disease Screen at the Veterinary Practice Annually 2021 U.S. Canine Vector-borne Disease Screening at the Veterinary Practice 100% U.S. Family Dogs ~ 97 million 72% Clinical Visit (at least 1 in 2021) ~ 70 million Lyme disease Heartworm Anaplasmosis
Slide 54: Three Decades Addressing Unmet Needs for Vector-Borne Disease
Three Decades Addressing Unmet Needs for Vector-Borne Disease Innovation SNAP® Platform SNAP® 3Dx® SNAP® 4Dx® SNAP® 4Dx® Improved SNAP® launched Plus 4Dx® Plus SNAP HW 2001 2006 2012 2022 Education, Founding Pioneered U.S. Go-direct Clinical Clinical Insight member of Lyme Data analytics, 60+ key pu
Slide 55: Strong Growth in the SNAP Franchise
Strong Growth in the Highly Accurate and Trusted SNAP® Franchise Rapid Assay Recurring Revenue and Normalized Organic Revenue CAGR*,1,2,3 ($M) $ ~13% CAGR ~6% CAGR ~3% CAGR * Rapid Assay Products Revenue is a component of CAG Dx Recurring Revenue and excludes SNAP Pro ® Analyzer revenue 1,2 Please r
Slide 56: New IDEXX 4Dx Plus Delivers a Whole Product Solution
New IDEXX 4Dx Plus Delivers a Whole Product Solution IDEXX Vector-borne Disease Screening Solutions Powered by Improved 4Dx® Plus Extended Room Uncompromised Accuracy Clinical Decision Support Temperature Storage 56 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 57: The Most Accurate Test Just Got Even Better
The Most Accurate Test Just Got Even Better IDEXX’s 4Dx Plus Test was already the most accurate test for vector-borne disease Improved 4Dx Plus Sensitivity vs. Accepted Reference Methods Uncovers Heartworm* 30% more Anaplasma positives *** Lyme** Ehrlichia** Anaplasma** SNAP 4Dx Plus Test Competitiv
Slide 58: Customers Using Clinical Decision Support Do More Follow-up Diagnostics
Customers Who Engage with Clinical Decision Support are Doing More Follow-up Diagnostics Over 1,000 unique practices have engaged with CDS for 4Dx Plus positive results 2x more likely to complete follow-up diagnostics 75% Lab Quant C6 testing after a 4Dx Plus Lyme positive Source: Based on analyses
Slide 59: SNAP Pro Active and Connected Customers Are Four Times More Loyal
SNAP Pro Active and Connected Customers Are Four Times More Loyal Percentage of U.S. SNAP 4Dx Plus Revenue on SNAP Pro* 50,000 SNAP Pro Analyzers Installed ® Active and Connected Customers are 4 times more loyal 2017 2018 2019 2020 2021 2022 * U.S. SNAP® Tests Revenue from Active and Connected Custo
Slide 60: Rapid Assay Represents a Growing Opportunity
Rapid Assay Represents a Growing Opportunity ▪ Over 30 years and continued innovation ▪ Growth of globally relevant infectious disease testing ▪ Tremendous runway for increased level of screening ▪ Reference-lab technology in the palm of your hand ▪ SNAP Pro ecosystem driving customer loyalty 60 © 2
Slide 61: Mike Lane
Mike Lane Executive Vice President and General Manager, Reference Laboratories and Information Technology Summer 61 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 62: Break
Time for a 15 minute Break We’ll be back shortly IDEXX Investor Day I August 11, 2022 62 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 63: Mike Lane
Mike Lane Executive Vice President and General Manager, Reference Laboratories and Information Technology Summer 63 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 64: Global Reference Labs and Medical Consulting Services
Global Reference Labs and Medical Consulting Services Mike Lane, Executive Vice President and General Manager IDEXX Investor Day I August 11, 2022
Slide 65: Extension of Our Customers' Practices
Extension of Our Customers’ Practices, Enabling Efficiency, Capacity and Access ▪ Global laboratory network and medical consulting service capabilities ▪ Most complete and advanced menu of diagnostics tests and services ▪ Global team of 600 IDEXX medical specialists (primarily Board Certified) ▪ Sea
Slide 66: Global Network Enables Extensive Geographic Coverage
Global Network Enables Extensive Geographic Coverage and 24/7/365 Service IDEXX Kornwestheim IDEXX Brisbane $1 Billion+ Global Revenue IDEXX Louisville Next-Day PCR The sun never sets in serving our customers 66 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 67: Global Scale, Differentiated Menu and Service Drive Growth
Global Scale, Differentiated Menu and Service Drive Growth and Profitability Global Reference Lab Diagnostic and Consulting Services Recurring Revenue, Gross Margin and Normalized Organic Revenue Growth*,3 ($M) $ Gross Margin ~ 50% * Reference Lab Diagnostic and Consulting Services revenue is a comp
Slide 68: Most Complete and Advanced Menu of Diagnostics and Consulting
Most Complete and Advanced Menu of Diagnostics and Consulting Services Non-wellness Wellness and Minimum Database Molecular Diagnostics Chemistry IDEXX SDMA® Ringworm I Influenza I Genetics Included with Every Chemistry Profile IDEXX FGF-23 Kidney Biomarker Cancer Diagnostics Immunology Microbiology
Slide 69: Flea Tapeworm Enhances Value of Intestinal Parasite Screen
Flea Tapeworm Significantly Enhances Value of Routine Intestinal Parasite Screen Uncovers More 5x IDEXX Fecal Dx® Antigen Panel Parasitic Infections Enhanced with Flea Tapeworm Tapeworm Whipworm Hookworm Roundworm 2x Tapeworm More Today + Hookworm Roundworm Whipworm ▪ Expands Fecal Dx Antigen offeri
Slide 70: IDEXX FGF-23 and Clinical Decision Support Advance Renal Diagnostics
IDEXX FGF-23 and Clinical Decision Support Advances Renal Diagnostic Solutions Clinical Decision Support Early Detection and Monitoring IRIS CKD Staging Support IDEXX SDMA and Creatinine help establish a baseline for kidney health monitoring and early disease detection IDEXX VetConnect PLUS Disease
Slide 71: IDEXX Innovation Provides Breadth and Depth Growth Opportunities
IDEXX Innovation Provides Extensive “Breadth and Depth” Growth Opportunities Number of U.S. IDEXX Reference Lab Customers by Dx Category in Q1 2022 (thousands of practices) Medical Consulting Services Total IDEXX Chemistry Immunology Hematology Urinalysis Parasitology Microbiology Molecular Anatomic
Slide 72: Real-time Access to IDEXX Board Certified Experts
Real-time Access to IDEXX Board Certified Experts Supports Specialized Care Anatomic Pathology Clinical Pathology Teleradiology Cardiology Internal Medicine ~ 600 IDEXX medical specialists serve as a direct extension of veterinary practices 72 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 73: IDEXX Teleradiology Global Real-time Radiology Interpretation Service
For Example, IDEXX Teleradiology Provides a Global, Real-time Technology-enabled Radiology Interpretation Service ▪ Serves as an extension of the practice by providing access to advanced medical expertise around the clock ▪ Requires deep understanding and investment in technology and talent ▪ Deploy
Slide 74: Seamless Workflow Enables Real-time Access to Radiologists
Seamless Workflow Enables Real-time Access to IDEXX Board Certified Radiologists, 24/7/365 Veterinary Practice IDEXX Radiologist Picture Archiving and Imaging Communications System Artificial Intelligence Expert Interpretation 74 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 75: IDEXX Teleradiology Is One of the Fastest Growing Businesses
IDEXX Teleradiology Is One of the Fastest Growing Businesses at IDEXX with Estimated TAM of $1 Billion+ Global Teleradiology and Cardiology Consulting Services Revenue*,3 ($M) $ 26% CAGR * Global Telemedicine Consulting Services is a component of Reference Laboratory Diagnostic and Consulting Servic
Slide 76: Highly Differentiated Technology-driven Service Platform
Highly Differentiated Technology-driven Service Platform ▪ Deep scientific, medical and technology talent and expertise ▪ Most advanced menu of laboratory tests and services, integrated with point of care ▪ Global scale and 24/7/365 laboratory and logistics network to provide exceptional service ▪ S
Slide 77: Michael Schreck
Michael Schreck Senior Vice President and General Manager, Veterinary Software and Services Callie 77 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 78: Software Strategy and Products
Software Strategy and Products Michael Schreck, Senior Vice President and General Manager IDEXX Investor Day I August 11, 2022
Slide 79: IDEXX Software Addresses Challenges Faced by Our Customers
IDEXX Software (SW) Addresses Challenges Faced by Our Customers Capacity Customer Needs ▪ Top veterinarian/technician capacity opportunity is pet ▪ ~20-30k expected veterinarian shortage in 2030* owner comms and patient record management** ▪ Practices need SW to provide significant productivity ▪ Cu
Slide 80: Customers Adopting IDEXX Cloud SW Realize Significant Advantages
Customers Adopting IDEXX Cloud SW will Realize Significant Advantages Cloud software provides …that on-prem …to support them in this unique key benefits… customers need… moment in our industry. ON • Faster feature releases • Upgrades don’t take PIMS off-line • Workflow optimization, staff productivi
Slide 81: IDEXX SW Ecosystem Optimizes Workflow
IDEXX SW Ecosystem Optimizes Workflow Practice Operations • Digital workflow • Referral management • Pet owner engagement • Payment processing Practice Enterprise Functionality • Business intelligence Integrated Dx Solutions • Centralized oversight • Two-way PIMS connectivity • Enterprise security •
Slide 82: Premier Cloud Offerings Experiencing Accelerating Customer Demand
IDEXX’s Premier Cloud Offerings Are Experiencing Accelerating Customer Demand Mobile Intuitive Intelligent ▪ Flagship full-featured cloud platform ▪ Ideal for smaller practices that prioritize ease-of-use ▪ Accelerating customer adoption post-acquisition ▪ Brilliantly simple—SaaS-centric ▪ Top-rated
Slide 83: IDEXX Well Positioned to Drive Cloud-Based PIMS Adoption
IDEXX Is Well Positioned to Drive Cloud-Based PIMS Adoption U.S. Percentage of PIMS Installed Base: IDEXX Global PIMS Placements Cloud vs. On-premise Cloud vs. On-premise** + 5-6% 40%+ per year On-premise CAGR 80%+ 65% - 75% + 4% per year 73% + 2% per year Cloud-based 59% 55% Potential *2022E aligne
Slide 84: Cloud-first Positioning Accelerating Revenue and Margin Growth
Our Cloud-first Positioning Is Accelerating Our Revenue and Margin Growth IDEXX Veterinary Software, Services, and Digital Imaging Systems Revenue and Revenue Growth ($M) Gross Margin $ 16%+ 1100+ bps CAGR* Other Revenue 2% CAGR* 70%+ Recurring Revenue*** 22% CAGR* 66% 65% 59% *2019-2022E 3-year Rep
Slide 85: Engaged PIMS Practices Generate More Diagnostic Revenue
Engaged IDEXX PIMS Practices Generate Significantly More IDEXX Diagnostic Revenue per Practice IDEXX Diagnostics Engaged Practices* Average IDEXX Diagnostic Revenue per Practice for Cornerstone, ezyVet and Non-IDEXX PIMS in North America ($k) (Trailing 12 months ended March 31, 2022) +20% +14% +23%
Slide 86: Customers Experience IDEXX Diagnostics through VetConnect PLUS
Customers Experience IDEXX Diagnostics through VetConnect PLUS (VC+) VC+ Mobile Clinical Decision Support Pet Owner Engagement Personalized and intuitive Dx workflows Interpretive aid alongside VC+ results Digitized pet owner visit journey 7 languages globally Customers that engage with CDS are Addr
Slide 87: IDEXX Veterinary Software Is at the Heart of Customers' Key Goals
IDEXX Veterinary Software Is at the Heart of Our Customers’ Key Goals Practice Standard Productivity of Care Pet Owner Engagement 87 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 88: Jim Polewaczyk
Jim Polewaczyk Executive Vice President and Chief Commercial Officer Sadie 88 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 89: Global CAG Commercial Focus and Customer Experience
Global CAG Commercial Focus and Customer Experience Jim Polewaczyk, Executive Vice President and Chief Commercial Officer IDEXX Investor Day I August 11, 2022
Slide 90: The Global Segment Is ~$6.8 Billion with Strong Growth Trends
The Global Segment Is ~$6.8 Billion with Strong Secular Growth Trends Currently U.S. represents ~$4.2B, or ~62% and international represents ~$2.6B or ~38% Estimated 2021 Total Companion Animal Diagnostic and Software Spending ($M)* Canada Europe U.S. Region Asia Pacific Region Latin America Areas o
Slide 91: Decades+ Opportunity, with Greatest Untapped Opportunity Internationally
IDEXX Has Decades+ Opportunity for Profitable Growth in Diagnostics Globally, with the Greatest Untapped Opportunity Internationally Worldwide Total Addressable Companion Animal Diagnostics Revenue Opportunity ($37B Total, ~15% served)* 8% 22% Served North $12B 9% America Europe $13B Region Region $
Slide 92: Enhancing Our International Commercial Scale and Execution
Enhancing Our International Commercial Scale and Execution 2022 International Expansions 2021 Completed Expansions Germany Italy Japan France Brazil Spain South Korea Ecosystem Approach Sales Operations Global Commercial Systems Education & Training Marketing Global Customer Support 92 © 2022 IDEXX
Slide 93: Expanding Team of Diagnostic Category Experts
Expanding Team of Diagnostic Category Experts in Key Geographies Globally U.S. Fully direct + VDC >1,100 expansion ~2x International ~150-400 Average number of accounts per VDC 1.5x U.S. ~125 Total Worldwide Average number of accounts per VDC CAG Field-based Professional Headcount* Expanding Global
Slide 94: Commercial Engagement Supports Multi-modality Innovation
Commercial Engagement Supports a Portfolio of Multi-modality Innovation IDEXX Point of Care Diagnostics VetConnect PLUS with Clinical Decision Support ProCyte One Improved SNAP 4Dx Plus IDEXX SDMA IDEXX Reference Labs Expanded Oncology IDEXX Fecal Dx Antigen IDEXX FGF-23 Dietary Offering Profile wit
Slide 95: Multi-modality, Integrated Model Enables Flexibility for Customers
Multi-modality, Integrated Model Enables Flexibility for Customers More and more practices choose IDEXX across modalities IDEXX U.S. Companion Animal Customer Overlap Percentage of IDEXX Reference Lab or IDEXX In-house Chemistry Platform Customers Who are IDEXX Customers for Both* IDEXX Ref Lab ONLY
Slide 96: IDEXX 360 Has Global Appeal
IDEXX 360 Has Global Appeal Customers Grow Diagnostics Utilization and Improve Standard of Care with an IDEXX 360 Partnership (IDEXX CAG Recurring Revenue $M) North America Europe Region APO Region Other** Rapid Assay Products Reference Lab* IDEXX VetLab® Consumables 2018 2019 2020 2021 2022 2018 20
Slide 97: Customer Education Complements Commercial Execution
Customer Education Complements Commercial Execution and Innovation Percentage of 2021 Clinical Visits Inspiring Diagnostic Utilization Through Ongoing Including a Chemistry Panel by Practice Decile Learning and Discovery Programs 28% $4 Value of continuing education (CE) offering in the U.S. * milli
Slide 98: Medical Big Data Studies Inspire Clinical Belief in Diagnostics
Medical Big Data Studies Inspire Clinical Belief in Diagnostics In 2020 and 2021, IDEXX individuals authored or contributed to 167 peer-reviewed publications in the veterinary field helping to advance the understanding of the clinical value of diagnostics Sources: Stafford K, Kollasch TM, Duncan KT,
Slide 99: Improving Total Customer Experience Inspires Record Retention
Improving the Total Experience Customers Have with IDEXX Is a Company-wide Priority and Inspires Record Retention Levels Relationship Responsiveness 2021 IDEXX Ranking by U.S. Veterinary Practices System Investments among Animal Health Manufacturers* Overall Company Performance #1 Bringing Innovativ
Slide 100: Our Three Pillars Supporting Growth for Years to Come
Our Three Pillars Supporting Growth for Years to Come Commercial Partnership Innovation Customer Experience and Expansion 100 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 101: A Customer Conversation with Dr. Bruce Francke
A Customer Conversation with Dr. Bruce Francke George Fennell Dr. Bruce Francke Senior Vice President and Bay Animal Hospital General Manager Essexville, MI CAG, Americas 101 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 102: Break
Time for a 15 minute Break We’ll be back shortly IDEXX Investor Day I August 11, 2022 102 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 103: A Customer Conversation with Dr. Bruce Francke
A Customer Conversation with Dr. Bruce Francke George Fennell Dr. Bruce Francke Senior Vice President and Bay Animal Hospital General Manager Essexville, MI CAG, Americas 103 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 104: Brian McKeon
Brian McKeon Executive Vice President and Chief Financial Officer Daisy 104 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 105: IDEXX Financial Review
IDEXX Financial Review Brian McKeon, Executive Vice President and Chief Financial Officer IDEXX Investor Day I August 11, 2022
Slide 106: Financial Review – Key Messages
Financial Review – Key Messages ▪ Strategic focus and execution delivers outstanding financial results ▪ Building on significantly expanded revenue and profit base ▪ CAG opportunity drives 10%+ annual organic revenue growth potential ▪ Expanding, durable CAG Dx recurring revenue gains support long-t
Slide 107: Focus on Attractive Core Business Development
Focus on Attractive Core Business Development Livestock, Poultry, and Dairy Water ▪ High long-term growth opportunity aligned with sector development 4% Companion 5% ▪ A global leader with proven strategy Animal Group ▪ Innovation driven ▪ Durable, high growth recurring revenue model ▪ High incremen
Slide 108: Consistent Strategy and Strong Execution Yields Outstanding Results
Consistent Strategy and Strong Execution Yields Outstanding Financial Results -- with Accelerated Gains Through the Pandemic Multi-Year 2017 2018 2019 2020 2021 Goals* Organic Revenue 10.4% 11.6% 10.3% 12.0% 16.4% 10%+ Growth2 Operating Margin Gain 140 bps 130 bps 120 bps 340 bps 220 bps 50 - 100 bp
Slide 109: Significantly Expanded Global CAG Diagnostics Recurring Revenue Base
Significantly Expanded Global CAG Diagnostics Recurring Revenue Base CAG Diagnostics Recurring Revenue and Normalized Normalized Organic Revenue CAGR3 Organic Revenue Growth3 ($B) 2016 – 2019 2019 – 2021 Targeted Growth %* 17% $ CAGR 13% International 17% 12% - 16% CAGR 13% U.S. 12% 16% 9% - 13% 3 N
Slide 110: Durable CAG Recurring Annuity Supported by High Customer Retention
Durable CAG Recurring Annuity Supported by High Customer Retention Annual U.S. Customer Revenue Retention Rates Catalyst® Consumables Reference Lab 110 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 111: CAG Diagnostics Recurring Revenues Building Off Higher Base
CAG Diagnostics Recurring Revenues Building Solidly Off Higher Base H1 CAG Diagnostics Recurring Revenue and Normalized Organic Normalized Organic Revenue Growth 2,3,4,5 ($B) Revenue CAGR3 H1’18 – H1’22 $ Worldwide 13% International 13% U.S. 13% 2 Please refer to the Appendix for descriptive footnot
Slide 112: Pet Population Expanded 10% During Pandemic
Pet Population Expanded 10% During Pandemic Well above ~1% annual growth norm Estimated U.S. Pet Population and Growth Elements + 4% + 6% 177M + 1% 170M ~ 1% 160M ~28M ~35M Pre-2020 annual ~30M Expected 2022+ annual ~20M pet population growth pet population growth 2019 EOY Mortality* 2020 net 2020 E
Slide 113: Step Up in Visits Creates Near-term Lapping and Capacity Challenges
Significant Step Up in Visits Creates Near-term "Lapping" and Capacity Challenges – While Pointing to Longer-term Demand Driver Significant Step-up in Visits Through Pandemic U.S. Quarterly Average Clinical Visits per Practice Indexed with each 2017 quarter = 100 Pandemic period Historical trend con
Slide 114: Diagnostic Revenue Growth Premium Remains Strong
Diagnostic Revenue Growth Premium Remains Strong IDEXX U.S. CAG Dx Recurring Normalized Organic Revenue3 and U.S. Companion Animal Dx Revenue per Practice Year-over-year Growth IDEXX CAG Dx 7.6% Recurring Revenue 5.6% Diagnostic Revenue Per Practice -3.1% Clinical Visits 2018 2019 2020 2021 2022 Sou
Slide 115: IDEXX Execution Focus Helps Offset Near-term Growth Headwinds
IDEXX Execution Focus Helps to Offset Near-term Growth Headwinds IDEXX H1 U.S. CAG Dx Recurring Revenue Growth Drivers ~9% IDEXX Execution Growth Drivers ~2% ~22% ~4% Customer Additions ~5% ~2% -2% Net Price Realization ~3% Utilization & Innovation ~4% 13% ~9% ~2% ~3% ~6% -2% H1’19 Clinical Pet IDEX
Slide 116: 2022 Outlook for Continued Solid Organic Growth and Profit Gains
2022 Outlook for Continued Solid Organic Growth and Profit Gains Captures near-term dynamics moderating CAG Dx recurring revenue growth and potential macro headwinds H1’22 H2’22* FY’22 Outlook Revenue Growth Reported 6% 2 – 6% 4 – 6% Organic4 7% 4.5 – 8% 5.5 – 8% CAG Diagnostics Recurring (Organic4)
Slide 117: Key Drivers of Long-term 10%+ Revenue Growth Potential Intact
Key Drivers of Long-term 10%+ Revenue Growth Potential Intact Total Company Revenue and Normalized Organic Long-term Revenue Growth1,3,4 ($B) Potential* Long-term Growth Drivers ▪ CAG sector momentum $ Total Revenue 10%+ and demographics Other ▪ Global utilization expansion ▪ Premium instrument base
Slide 118: Targeting Continued Solid Annual Operating Margin Gains
Targeting Continued Solid Annual Operating Margin Gains Building on Strong Performance Annual Operating Margin and Comparable Operating Long-term Goal* Margin Expansion5 (bps) +50 - 100 bps +220 Annual Comparable Gains +340 +120 +130 +140 Key Drivers +170 ▪ 60%+ incremental CAG Diagnostics recurring
Slide 119: Strong Cash Flow Generation Supported by High Conversion
Strong Cash Flow Generation Supported by High Conversion Free Cash Flow8 % of Net Income Key Highlights ▪ Consistent long-term outlook for Discrete R&D high conversion to free cash flow Large facility projects 80 – 90% of net income ▪ Low capital investment intensity Free cash flow 4 - 5% of revenue
Slide 120: Conservative Balance Sheet Provides Flexibility for Capital Allocation
Conservative Balance Sheet Provides Flexibility for Capital Allocation Debt to Adjusted EBITDA9 Ratio 3.5x 3.0x Gross 2.5x Net 2.0x 1.5x 1.0x 0.5x 9 Non-GAAP financial measure, please refer to Appendix for footnotes. 120 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 121: Corporate Development Activity Focused on Core Business Expansion
Corporate Development Activity Focused on Core Business Expansion Cash Spending on Acquisitions & R&D In-License Activity 2016 – 2021* ($M) $ Reference Labs Information Management Point of Care Technology In-license * Total Cash Spending on Acquisitions includes Acquisition of intangible assets and
Slide 122: Capital Allocation Aligned with Shareholder Value Creation
Capital Allocation Aligned with Shareholder Value Creation Capital Allocated to Share Repurchases* After-Tax Return on Invested Capital, Excluding Cash & Investments7 Over 40% reduction in weighted avg share count $3.2B $189 avg purchase price $2.4B $22 avg purchase price 7 Non-GAAP financial measur
Slide 123: Consistent Long-term Revenue and EPS Growth Potential
Consistent Long-term Revenue and EPS Growth Potential Long-term Financial Model* (Average Annual Comparable Gains) Revenue Operating Capital Long-term Growth Margin Allocation EPS Growth Expansion Leverage Potential** 10%+ 50-100 +1%-3% 15%-20% bps Incremental EPS Growth * These projections assume t
Slide 124: IDEXX Laboratories, Inc. Investor Day Q&A
IDEXX Laboratories, Inc. Investor Day Q&A August 11, 2022
Slide 125: Footnotes
Footnotes 125 © 2022 IDEXX Laboratories, Inc. All rights reserved.
Slide 126: Footnotes
Footnotes 1 IDEXX Reportable Segment Revisions and Divested Revenues: Prior to January 1, 2015, our Companion Animal Group (“CAG”) segment included herd testing diagnostic services processed within and managed by our CAG reference laboratories. We have transitioned the responsibility for these diagn
Slide 127: Footnotes
Footnotes 3 Normalized Organic Revenue Growth and CAGR, continued: CAGR Avg. Annual U.S. CAGR International CAGR Total Company 2017 2018 2019 2020 2021 2010-2015 2015-2019 2016-2019 2019-2021 2016-2021 2017-2021 2016-2019 2019-2021 2016-2019 2019-2021 Reported Growth 10.9% 12.4% 8.8% 12.5% 18.8% 8%
Slide 128: Footnotes
Footnotes 4 Constant Currency: Constant currency references are non-GAAP financial measures which exclude the impact of changes in foreign currency exchange rates and are consistent with how management evaluates our performance and comparisons with prior and future periods. We estimated the net impa
Slide 129: Footnotes
Footnotes 6 Comparable EPS Growth: Comparable EPS growth is a non-GAAP financial measure and represents the percentage change in earnings per share (diluted) (”EPS”) for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from t
Slide 130: Footnotes
Footnotes 7 After-Tax Return on Invested Capital, Excluding Cash and Investments (“ROIC”): After-tax return on invested capital, excluding cash and investments, is a non-GAAP financial measure that represents our after-tax income from operations, divided by our average invested capital, excluding ca
Slide 131: Footnotes
Footnotes 8 Free Cash Flow: Free cash flow is a non-GAAP financial measure and means, with respect to a measurement period, the cash generated from operations during that period, including tax benefits attributable to share-based compensation, reduced by the Company’s investments in property and equ