Idexx Laboratories, Inc. · NASDAQ:IDXX
Idexx Laboratories — Investor Day (August 2024)
167 slides from Idexx Laboratories's investor day presentation, Aug 15, 2024
Slide 1: IDEXX Laboratories Investor Day
IDEXX Laboratories, Inc. Investor Day August 15, 2024
Slide 2: Innovation-Driven Growth Strategy
Innovation-Driven Growth Strategy Jay Mazelsky President and Chief Executive Officer Spider & Shu Shu
Slide 3: 2024 IDEXX Investor Day Agenda
2024 IDEXX Investor Day Agenda Time Topic Length 8:00 – 8:05 am Welcome and Introductions 5 min Jay Mazelsky, President and Chief Executive Officer 8:05 – 9:10 am IDEXX Opportunity and Strategy Jay Mazelsky – Innovation-Driven Growth Strategy 45 min Tina Hunt, PhD – Strategy and Sector Develop
Slide 4: Safe Harbor Disclaimer
Safe Harbor Disclaimer The following presentation 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 concernin
Slide 5: Innovation-Driven Growth
Innovation-Driven Growth + Significant global testing opportunity to raise standards of care ($45B+ TAM) + Innovation-driven growth strategy + Novel new Point of Care platforms + Testing for major disease franchises + Broad suite of customer facing software + Faster IDEXX customer growth driven by c
Slide 6: IDEXX's Purpose Aligned with Business Strategy
IDEXX’s Purpose Aligned with Business Strategy “To be a great company that creates exceptional long-term value for our customers, employees, and shareholders by enhancing the health and well-being of pets, people, and livestock.” + Advancing integrated diagnostics and software that give pets a voice
Slide 7: Delivering Exceptional Financial Results Over the Long-Term
Delivering Exceptional Financial Results Over the Long-Term IDEXX Long-term Financial Performance 2018 – 2023 Revenue Operating Margin EPS +11% +170 bps +22% Organic Revenue CAGR2 Average Annual Comparable Average Annual Operating Margin Expansion*,5 Comparable EPS Growth*,6 ROIC7 48% in 2023 2, 5,
Slide 8: Consistent Strategy Supports Accelerating Revenue Growth
Consistent Strategy Supports Accelerating Revenue Growth IDEXX Revenue and Normalized Organic Revenue CAGRs ($B)1,3 $3.7B 12% Strategic Growth Drivers CAGR Other + Dx Innovation: diagnostic menu, Revenue new and existing platform $2.4B extensions, integrated software 11% CAGR + Commercial model driv
Slide 9: IDEXX has Demonstrated Resilience through Macro Cycles
IDEXX has Demonstrated Resilience through Macro Cycles Year-over-year Growth IDEXX WW CAG Diagnostics Normalized 20% IDEXX WW CAG Normalized Organic Recurring Revenue 1,3 Organic Revenue 1,3 15% Post-Pandemic Growth Dynamics + Stepped-up volume base 10% + Capacity limitations 5% + Consumer impacts a
Slide 10: Pet Healthcare is Highly Resilient, Not Immune to Economy
Pet Healthcare is Highly Resilient, Not Immune to Economy Annual U.S. Clinical Visit Growth 2024 IDEXX Pet Parent Survey* “Have you done any of the following in the past year?” 6% 44% Wellness Visits 4% 2% 27% 0% 21% -2% Non-well 12% “Sick” Visits 4% -4% Delayed Delayed Delayed/Canceled Reduced Redu
Slide 11: Powerful Secular Tailwinds in Pet Healthcare
Powerful Secular Tailwinds in Pet Healthcare Expanding Expanding andand agingpet aging pet population population Pets living Expanding 10%+ and longer aging pet and care expectations are expanding population Expanding and aging Demographic pet shift benefiting strengthening pet–parent bond populatio
Slide 12: Substantial Underserved Global Opportunity in Diagnostics
Substantial Underserved Global Opportunity in Diagnostics Worldwide Addressable Companion Animal Dx Revenue Opportunity ($45B+ Total, ~15% served)* 8% North Europe 22% America Region Served Region $14B 9% $17B $7B Asia 2% Pacific Region Latin $7B America Region *Total addressable companion animal di
Slide 13: Significant Opportunity to Increase Standard of Care
Significant Opportunity to Increase Standard of Care % of U.S. Clinical Visits % of U.S. Wellness Clinical Visits % of U.S. Non-wellness Clinical Visits including Bloodwork including Bloodwork including Bloodwork + 0.5% + 0.5% per year per year + 0.5% + 0.5% per year per year + 0.5% + 0.5% per year
Slide 14: Veterinary Practices Focus on Expanding Medical Services
Veterinary Practices Focus on Expanding Medical Services Average U.S. Revenue per Practice by Segment* ($M) Total U.S. Segment CAGR %*** 2010 – 2015 2015 – 2023 $2.0M Total 5.5% 7.5% Product Other Product 4% 3.5% Pharma & 5.5% 8% $1.2M Vaccines** $1.0M Medical Services 5% 8% (excl. diagnostics)
Slide 15: IDEXX Innovation Drives Sector Development
IDEXX Innovation Drives Sector Development Areas of Expertise IDEXX Cumulative R&D Investment ($M, calendar years shown) Instrument Platforms > $2.2 Billion New Product Differentiated Assays Lifecycle Software, Data and Connectivity © 2024 IDEXX Laboratories, Inc. All rights reserved. 15
Slide 16: IDEXX's New Wave of Innovation
IDEXX’s New Wave of Innovation Point of Care Reference Labs Software Fecal DxTM Expansion with Flea Tapeworm and Cystoisospora New IDEXX VetLab® Station PL IDEXX Cystatin B Test Detects kidney injury in dogs and cats Catalyst® Catalyst® Pancreatic Lipase SmartQC® © 2024 IDEXX Laboratories, Inc. All
Slide 17: IDEXX Testing Innovation Focused on Diagnostic Franchises
IDEXX Testing Innovation Focused on Diagnostic Franchises >$1B ~$3.5B ~$4B Opportunity* Opportunity* Opportunity* Vector-Borne Disease Parasitology Renal Screening Tests for More Accurate Fecal Antigen Testing for Earlier Testing for Kidney Impairment and Disease Detection and More Comprehensive Det
Slide 18: Oncology is a New Multi-Billion Dollar Diagnostic Opportunity
Oncology is a New Multi-Billion Dollar Diagnostic Opportunity ~$2.5B Opportunity* Oncology IDEXX has the most comprehensive testing portfolio to address largest cause of pet mortality + Digital Cytology (2020) + Teleradiology (2009) Cancer is detected in later + Histology (1994) stages when treatmen
Slide 19: Improved Oncology Care Requires New Diagnostic Solutions
Improved Oncology Care Requires New Diagnostic Solutions Oncology Diagnostics Potential Addressable Opportunity (Patients)* 11.0M 36.0M 7.5M Total 25.0M 3.5M 24.5M Aid in Diagnosis (Non-wellness) 17.0M Diagnostic Screen 11.5M 8.0M (Wellness) Dogs Cats Total *Based on number of 2023 medicalized dogs,
Slide 20: Introducing IDEXX Cancer Dx
Introducing IDEXX Cancer Dx + IDEXX Cancer Dx will launch with canine lymphoma in 2025 Early-stage detection B vs. T cell cancer classification + Panel will expand over ~36 months to cover majority (>50%) of canine cancer cases, providing detection by cancer type + Technology enables affordable
Slide 21: Cancer Detection and Diagnostic Interpretation at Point of Care
Cancer Detection and Diagnostic Interpretation at Point of Care + + + + + IDEXX inVue Dx Shipping Q4 2024 Fine Needle Aspirate (lumps and bumps) Coming 2025 + + + + + © 2024 IDEXX Laboratories, Inc. All rights reserved. 21
Slide 22: Revolutionizing Multi-Modal Cancer Detection and Management
Revolutionizing Multi-Modal Cancer Detection and Management IDEXX Reference Labs & IDEXX Cancer Dx IDEXX inVue Dx Medical Consulting Services + Cancer screen and + FNA delivers diagnostic + Medical Consultation diagnostic aid interpretation and results + Today’s 1.5M cancer tests + Cancer detectable
Slide 23: Expanding Real-Time Insights at the Point of Care
Expanding Real-Time Insights at the Point of Care 2014 2016 2020 2024 Future IDEXX SmartService Catalyst One® SediVue® Dx ProCyte One® IDEXX inVue Dx Future Platform Technology Trusted Accuracy Ease of Use End-to-End Integration for Life Reference lab quality Intuitive, load and go Workflow optimiza
Slide 24: Significant Opportunity for Additional Instrument Placements
Significant Opportunity for Additional Instrument Placements Global IDEXX Premium Instrument Installed Base* Global Incremental IDEXX Premium Instrument Placement Opportunity** 90k ~330k 70k 94k International 135k Urinalysis Hematology 77k 29k Chemistry U.S. 2013 2023 Total Catalyst ProCyte SediVue
Slide 25: Bringing New Menu to a Large and Growing Installed Base
Bringing New Menu to a Large and Growing Installed Base 2008 2012 2014 2016 2018 2020 2022 2024 Future Lyte 4 Clip Phenobarbital Total T4 Catalyst® SDMA Bile Acids New Catalyst® Electrolytes Seizures Thyroid Kidney Liver Catalyst® Pancreatic Lipase Catalyst One® SDMA Gastrointestinal Kidney Fructosa
Slide 26: Software Portfolio Drives Diagnostics and Supports Workflows
Software Portfolio Drives Diagnostics and Supports Workflows Practice Info Systems Pet-Owner Engagement VetConnect® PLUS IDEXX DecisionIQ Practice workflow tools - Digitize pet owner Test results, AI interpretation, manage care and communications trended clinical insights transcription and patient i
Slide 27: IDEXX Solutions Deliver Exceptional Customer Value
IDEXX Solutions Deliver Exceptional Customer Value IDEXX SmartService © 2024 IDEXX Laboratories, Inc. All rights reserved. 27
Slide 28: IDEXX Commercial Engagement Supports Testing Adoption
IDEXX Commercial Engagement Supports Testing Adoption ~1,200 CAG Commercial Field-based Professionals (Increased by 2x since 2015) Relationship Account Manager (VDC) Diagnostic specialist Software specialist Digital imaging specialist Field service (FSR) Medical consultants (PSV) © 2024 IDEXX Labora
Slide 29: Customers Appreciate Integrated Multi-Modality Offering
Customers Appreciate Integrated Multi-Modality Offering 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 IDEXX VetLab® ONLY Customers Customers 57% 43% 34% +100bps +300bps +300bps v
Slide 30: IDEXX-Engaged Practices Grow Faster
IDEXX-Engaged Practices Grow Faster Key Growth Metrics: 2018 – 2023 CAGR per Practice (%) +2% +2% 10.9% 9.4% 8.8% 7.3% 3.0% 2.1% Average Clinical Visits Average Clinical Revenue Average Diagnostic Revenue per Practice per Practice per Practice IDEXX-engaged Practices (n = 503) Unengaged Practices (n
Slide 31: Corporates Shifting to Organic, Service-Driven Growth
Corporates Shifting to Organic, Service-Driven Growth Number of Independent Practice Acquisitions* (North America) Corporate Practice Needs: 1,550 + Diagnostic solutions that drive core medical services faster + Consistent workflow & protocols 1,050 across group + Single, scaled software provider wi
Slide 32: Customer Focus Results in Excellent Customer Advocacy
Customer Focus Results in Excellent Customer Advocacy U.S. Net Promoter Score 29% 25% IDEXX 33% 32% 30% Other Companies In-house In-house VetConnect Reference Lab Rapid Assay Chemistry Hematology PLUS® Source: Double-blind primary research study conducted in April – May 2024, with following U.S. sam
Slide 33: IDEXX Positioned to Outpace Sector Growth
IDEXX Positioned to Outpace Sector Growth Sector Growth Estimated Global Companion Animal Dx Sector Spend ($M)* Implied CAGR 2023 – 2048 10%+ International 9%+ CAGR 7.5 – 8.5% U.S. $5.8B 2023 2048 % of Clinical International 7% 19% Visits with Bloodwork U.S. 19% 34% *Revenue estimated at the manufac
Slide 34: IDEXX Innovation Supports Long-Term Growth Potential
IDEXX Innovation Supports Long-Term Growth Potential Resilient and Durable Recurring Revenue Business with … + Tremendous runway with positive long- term tailwinds + Commercial engagement that drives technology adoption + Long-term 10%+ growth potential supporting strong financial returns © 2024 IDE
Slide 35: Tina Hunt, PhD
Tina Hunt, PhD Executive Vice President Strategy, Sector Development and Global Operations Ishka
Slide 36: IDEXX Strategy & Sector Development
IDEXX Strategy & Sector Development Dr. Tina Hunt Executive Vice President 36
Slide 37: The Veterinary Industry Continues to Expand and Evolve
The Veterinary Industry Continues to Expand and Evolve U.S. Veterinary Services & U.S. households have a pet, $10B + Product sales from $27.7B in 2018 to $38.3B in 2023 (6.7% CAGR)* 82M with two-thirds owning multiple pets (up from 63% in 2018)** of practices still struggling 30% 61% Increase in vet
Slide 38: Staffing and Economy have Pressured Visits Off Higher Base
Staffing and Economy have Pressured Visits Off Higher Base U.S. Average Annual Clinical Visits per Practice* +465 -155 Δ Relative -40 +700 to 2018 +250 +180 2018 2019 2020 2021 2022 2023 End 2023 *Analysis based on IDEXX practice intelligence data (n = ~8,200 practices) weighted to be representative
Slide 39: Long-Term Growth Propelled by Favorable Sector Trends
Long-Term Growth Propelled by Favorable Sector Trends Increasing humanization of Favorable demographic Expanding pet population Pets are living longer pets trends © 2024 IDEXX Laboratories, Inc. All rights reserved. 39
Slide 40: …and Fueled by IDEXX Strategic Enablers
…and Fueled by IDEXX Strategic Enablers Technology solutions Customer education & Relentless innovation Deep commercial presence enhancing clinic KOL advocacy inspiring advancing pet healthcare supporting practices productivity beliefs © 2024 IDEXX Laboratories, Inc. All rights reserved. 40
Slide 41: Step-Up in Pet Population will have Long-Term Benefits
Step-Up in Pet Population will have Long-Term Benefits U.S. Pet Population and Annual Growth* Historic Trend +2% +1% +6% +4% ~ 1% 2019 2020 2021 2022 2023 *2020, 2021, 2022 and 2023 estimated U.S. pet population growth of 6%, 4%, 2% and 1%, respectively, or ~23 million pets in total, based primarily
Slide 42: Pet Boom will Drive More Demand for Diagnostics Over Time
Pet Boom will Drive More Demand for Diagnostics Over Time U.S. Clinical Visits by Age Group* +50% +30% +15% 33% Clinical Visits 2028 2028 2028 2028 2028 2023 2023 2023 2023 2023 Puppies & Kittens Young Adult Senior Geriatric (1 to 3 Years) (3 to 7 Years) (7 to 11 Years) (11 Years and Over) *Analysis
Slide 43: Pets are Living Appreciably Longer – Benefiting Diagnostics
Pets are Living Appreciably Longer – Benefiting Diagnostics + 17% increase Average Patient Lifespan 2010 – 2023* in lifetime diagnostic spend per patient** 14.2 +1.9 years 15% 13.0 12.3 +1.4 years 11.6 12% 2010 2012 2014 2016 2018 2020 2022 2023 *Based on an analysis of IDEXX Practice Intelligence d
Slide 44: Spending on Pet Health and Diagnostics Grows as Pets Age
Spending on Pet Health and Diagnostics Grows as Pets Age Top Practices Use ~2x More Diagnostics Than Their Peers U.S. Average Practice Diagnostic Revenue Per Active Patient by Age Segment* $305 Top Wellness Bloodwork $245 Practices** $200 $170 $160 All U.S. $140 $130 Practices $100 $85 $70 $50 $- Pu
Slide 45: Trend Towards Breeds that Incur Greater Medical Costs
Trend Towards Breeds that Incur Greater Medical Costs Most Popular Breeds among Newly Medicalized Pets* + Newly medicalized pets are puppies and kittens visiting a veterinarian for the first time Breed Rank + There is a notable shift in canine breed preferences + The composition of today’s puppies w
Slide 46: Shifting Breed Dynamics Create Additional Demand Tailwinds
Shifting Breed Dynamics Create Additional Demand Tailwinds % Newly Medicalized Canines by Spend Level* Total Annual Spend per Patient** (2023 dollars) 40% +3% 39% Medium American Pit Bull Terrier 32% Chihuahua Low Yorkshire Terrier 25% Golden Labradoodle Index vs 2023 French Retriever 19% Bulldog 13
Slide 47: Younger Generations Drive Pet Ownership, Belief in Diagnostics
Younger Generations Drive Pet Ownership, Belief in Diagnostics % Dog Parents by % Dog Parents in each Generation % Pet Parents who Agree to at Least Generation* with Canines < 2 years old* Annual Wellness Diagnostics** 71% 73% Gen Z Baby 63% Boomers 57% 48% Millennials 37% Gen X 27% 15% Gen Z Millen
Slide 48: High Diagnostic Acceptance by Pet Parents
High Diagnostic Acceptance by Pet Parents Pet Parent Diagnostic Recommendations by Veterinarians* Acceptance Rate Recommended Not Recommended 92% Assumed Pet Parent Financial Situation Very Secure 32% 87% Secure 46% Financially 63% 89% Insecure 0% Recommendation rate for blood tests 100% * Question:
Slide 49: Empowering Pet Parents to Make More Informed Decisions
Empowering Pet Parents to Make More Informed Decisions Visit Follow-Up Pre-Appointment Recommendations Personalized Care Pet Parent & Resources Education Wellness Visit Pet Parent Breed Targeted Communicate value Follow-up Breed-specific Messaging of diagnostics reminders education Patient – Dixie ©
Slide 50: Cancer is the Leading Cause of Adult Canine Death
Cancer is the Leading Cause of Adult Canine Death Mortality of Adult Dogs in North America by Physiological Process* (% of deaths) 35% 30% 25% 20% 15% 10% 5% 0% Neoplastic Traumatic Infectious Metabolic Inflammatory Degenerative Toxic Congenital Vascular (Cancer) *Mortality in North American dogs fr
Slide 51: Cancer is Prevalent in Global Canine Population
Cancer is Prevalent in Global Canine Population* 1.7M North America 1.9M International 3.0M 1.5M 10.5M 13.5M 1.5M 6.6M 8.8M *General prevalence estimated based on the prevalence rate (% of total medicalized pets in 2023 that were ever diagnosed with cancer) applied to total estimated household-owned
Slide 52: Cancer Predominantly Identified at Advanced Stages Today
Cancer Predominantly Identified at Advanced Stages Today 89% LIKELIHOOD of veterinarians answered “Likely” to adding a cancer screening to wellness protocols 86% of veterinarians indicated cancer IMPACT screening would have a “Positive Impact” on their practice Source: IDEXX Quantitative Research wi
Slide 53: Strong Interest in Cancer Screening Among Pet Parents
Strong Interest in Cancer Screening Among Pet Parents 61% CONCERN are concerned about the risk of cancer in their dog 73% INTEREST are interested in having a cancer screening test for their pet 94% BENEFIT agree that early cancer detection improves outcomes Source: IDEXX Quantitative Research with D
Slide 54: Dog Breeds and Age are Important Indicators of Cancer Risk
Dog Breeds and Age are Important Indicators of Cancer Risk Six Primary Cancers* 3.0 More Often Seven canine breeds with 2.5 greater risk of cancer represent…. 2.0 6.5M Incidence Rate (Indexed) 1.5 dogs 1.0 …highlighting the incremental Occur Earlier value associated with 0.5 screening “at risk” bree
Slide 55: IDEXX Strategy Expands Value of Preventive Screening
IDEXX Strategy Expands Value of Preventive Screening Preventive Healthcare Today… …and with the next chapter Complete Blood Count Physical Examination Vector Borne Disease Diagnostic Chemistry, Cancer Electrolytes, Testing SDMA Screening Clinical Fecal Testing History Urinalysis IDEXX Cancer Diagnos
Slide 56: Sector Development Focused on Diagnostic Utilization
Sector Development Focused on Diagnostic Utilization KOLs & General Specialists Evidence Education Acceptance Advocacy Practitioners Robust clinical Expansive cancer KOL and specialist Early adopters evidence program experience drives support integration supporting early strengthened broader into we
Slide 57: Veterinarians Look to IDEXX for End-to-End Support
Veterinarians Look to IDEXX for End-to-End Support Belief Practice Readiness Care Delivery Deep belief and Aligned testing and Training and Technology and tools evidence of early and follow-up protocols workflow integration for pet parent accurate cancer detection and communication enable swift exec
Slide 58: Addressable Opportunity of ~$2.5B for Oncology Diagnostics
Addressable Opportunity of ~$2.5B for Oncology Diagnostics WW Oncology Diagnostics Potential Addressable Opportunity ($M)* IDEXX Cancer Dx, IDEXX inVue Dx and Other Diagnostics have Potential to Capture a Portion of this over 10+ Years $1.9B $2.6B Aid in Diagnosis $0.7B (Non-wellness) Diagnostic Scr
Slide 59: Durable Sector Tailwinds and Initiatives to Drive Utilization
Durable Sector Tailwinds and Initiatives to Drive Utilization Growing pet population with longer lifespans, favorable pet parent demographics Relentless innovation advancing the breadth and depth of veterinary care Deep customer focus, engagement, education – globally Purpose-built integration of di
Slide 60: Mike Erickson, PhD
Mike Erickson, PhD Executive Vice President and General Manager Point of Care Diagnostics and Telemedicine Loki
Slide 61: Break
CREATING CLARITY Break Return in ~10 minutes
Slide 62: Transforming Point of Care Diagnostics
Transforming Point of Care Diagnostics Dr. Mike Erickson Executive Vice President and General Manager
Slide 63: Decades of IDEXX Innovation-Driven Leadership
Decades of IDEXX Innovation-Driven Leadership Trusted Accuracy Load and Go Technology for Life IDEXX SmartService End-to-end Integration © 2024 IDEXX Laboratories, Inc. All rights reserved. 63
Slide 64: Record Placements Supports Recurring Revenue Expansion
Record Placements Supports Recurring Revenue Expansion… Worldwide Premium Instrument Placements* 19k Sustained Strong Execution ~5X Urinalysis + Record placements in 2023, continued in H1 2024 Hematology + Growth across platforms supported by global expansion 4k Chemistry + ProCyte One on-track for
Slide 65: Driving Long-Term, Durable Recurring Revenue Growth
…Driving Long-Term, Durable Recurring Revenue Growth Global IDEXX VetLab® Consumables Recurring Revenue and Organic Revenue Growth2 135,000 Premium Analyzers Globally* ~15% CAGR ~15% CAGR 2015 2019 2023 *Premium analyzers include Catalyst Dx® Chemistry Analyzer, Catalyst One® Chemistry Analyzer, Pro
Slide 66: Opportunity to Expand Premium Installed Base
Opportunity to Expand Premium Installed Base ~3.5X Global IDEXX Premium Instrument Global Incremental IDEXX Premium Instrument Installed Base* Placement Opportunity** 90k ~330k 70k 94k International 135k Urinalysis Hematology 77k 29k Chemistry U.S. 2013 2023 Total Catalyst One ProCyte One SediVue Dx
Slide 67: Continuously Raising the Bar in Point of Care Diagnostics
Continuously Raising the Bar in Point of Care Diagnostics VetConnect® PLUS IDEXX SmartService Intuitive Software Enabling practice productivity through integration and workflow Expanding Menu Increasing platform diagnostic capabilities and value New Platforms Introducing novel diagnostic solutions e
Slide 68: New IDEXX VetLab Station Experience Delights Customers
New IDEXX VetLab Station Experience Delights Customers “Zero training needed.” “I love it!” “Everyone is using it powers diagnostic with ease.” insights visualization 2X faster diagnostic workflows one-stop, fully integrated IDEXX VetLab® suite experience © 2024 IDEXX Laboratories, Inc. All rights r
Slide 69: Technology for Life: Continuous Delivery of Value
Technology for Life: Continuous Delivery of Value 80 $280M 70,000+ Future 70 Menu Catalyst® 60 2023 Revenue from 2024 Global Pancreatic Lipase Gastrointestinal New Catalyst Menu* Installed Base** New Catalyst Global Installed Base (Thousands) 50 SDMA Kidney Bile Acids Liver Future 40 Menu Catalyst®
Slide 70: Catalyst New Menu Drives Adoption at Scale
Catalyst New Menu Drives Adoption at Scale >65% >55% >50% of U.S. customers adopted in of U.S. customers adopted in of U.S. customers adopted in the first year of launch* the first year of launch* the first year of launch* Catalyst® Lyte 4 CLIP Catalyst® Total T4 Test Catalyst® SDMA Launched Decembe
Slide 71: Catalyst Pancreatic Lipase a Major Clinical Opportunity
Catalyst Pancreatic Lipase a Major Clinical Opportunity A top reason for visit – Life threatening if not treated One slide for Dogs + Cats Quantitative Results in <10 min © 2024 IDEXX Laboratories, Inc. All rights reserved. 71
Slide 72: Platform Extensibility Enables Economic Value Expansion
Platform Extensibility Enables Economic Value Expansion IDEXX Instrument Economic Value (EV)* 2X Expansion** + New Menu + Utilization Future Expansion + New Menu + Utilization Near-term EV + Ear Swab + Blood Morphology + FNA ‘Lumps and Bumps’ Catalyst IDEXX inVue Dx *Instrument Economic Value (EV) =
Slide 73: IDEXX inVue Dx Transforms Point of Care Cytology
IDEXX inVue Dx Transforms Point of Care Cytology Revolutionary, Slide-free Workflow >50% Deeper Likely to purchase Insights within 1-2 years* Results in 10 Minutes *Double-blind primary research fielded by IDEXX, Q2 2024, n=100 US companion animal general practice veterinarians. © 2024 IDEXX Laborat
Slide 74: Solving Pain Points to Cytology Testing at Point of Care
Solving Pain Points to Cytology Testing at Point of Care Done by hand, time-consuming Qualitative, technique-sensitive Lack of integration: lost charges, no images to record or share © 2024 IDEXX Laboratories, Inc. All rights reserved. 74
Slide 75: Seeing Cells in Their Natural State Uncovers Valuable Insights
Seeing Cells in Their Natural State Uncovers Valuable Insights + Cell typing + 3D size and shape + Intracellular features + Quantification + Historical trending © 2024 IDEXX Laboratories, Inc. All rights reserved. 75
Slide 76: Ear Exams are Part of Nearly Every Clinical Visit
Ear Exams are Part of Nearly Every Clinical Visit Automating and Elevating Ear Cytology Among top reasons for visit Using ~19M microscope * Frequent daily occurrence Sick and well appointments All testing performed in-clinic 1 in 5 with ear issues** *Estimate based on analysis of multiple data sourc
Slide 77: First Ever Comprehensive, In-Clinic Hematology Solution
First Ever Comprehensive, In-Clinic Hematology Solution Solving Pain Points Blood Morphology Potential ~20M morphology * 2 in 3 abnormal CBCs** Established Deeper hematology Integrated clinical belief insights results *Estimate based on analysis of multiple data sources including IDEXX U.S. data on
Slide 78: Advancing Cancer Diagnostics at the Point of Care
Advancing Cancer Diagnostics at the Point of Care Coming in 2025: Fine Needle Aspirates Today only ~10% of lumps and bumps get tested*** Lumps and Bumps Using ~11.5M microscope* Critical to differentiate cancer from benign inflammation Early cancer diagnosis expands treatment options 1 in 4 diagnose
Slide 79: IDEXX inVue Dx Combines Differentiated IDEXX Capabilities
IDEXX inVue Dx Combines Differentiated IDEXX Capabilities Global Deep AI Learning Connected Purpose-built Pathologist trained on 10M+ Software Instrument Network Samples Ecosystem Platforms © 2024 IDEXX Laboratories, Inc. All rights reserved. 79
Slide 80: IDEXX SNAP is the Trusted Standard for Rapid Testing
IDEXX SNAP is the Trusted Standard for Rapid Testing Over $1 Billion Global Vector-borne Screening Opportunity* Superior Accuracy End-to-end Solution with SNAP Pro® High Advocacy NPS = 78** *Total addressable revenue opportunity estimated based on bottom-up modeling at manufacturer or service provid
Slide 81: SNAP Leish 4Dx Addresses Global Rapid Assay Opportunity
SNAP Leish 4Dx Addresses Global Rapid Assay Opportunity IDEXX Anywhere Leishmania + + + + Heartworm Ehrlichia 1 in 10 Anaplasma Dogs test positive for Leishmania* 1 in 10 Dogs test positive Leishmania for Leishmania** 2 in 10 Dogs test positive for Leishmania** *Miro G, Wright I, Michael H, et al. S
Slide 82: Long Runway for Point of Care Growth and Innovation
Long Runway for Point of Care Growth and Innovation + Elevating standards for point of care diagnostics around the world + Generating long-term value for customers and IDEXX + Tremendous opportunity for continued growth and innovation © 2024 IDEXX Laboratories, Inc. All rights reserved. 82
Slide 83: Michael Lane
Michael Lane Executive Vice President and General Manager Reference Laboratories and Information Technology © 2024 IDEXX Laboratories, Inc. All rights reserved. Summer 83
Slide 84: Global Reference Laboratories and Medical Consulting Services
Global Reference Laboratories IDEXX GlobalConsulting and Medical ReferenceServices Labs Michael MichaelLane Lane © 2024 IDEXX Laboratories, Inc. All rights reserved. Executive ExecutiveVice President Vice and President General and Manager General Manager
Slide 85: Setting the Standard for Global Innovation and Patient Care
Setting the Standard for Global Innovation and Patient Care RENAL IDEXX SDMA® IDEXX FGF-23 (‘22) IDEXX Cystatin B (‘23) VetConnect® PLUS PARASITOLOGY IMMUNOLOGY IDEXX Fecal Antigen® IDEXX SNAP® 4Dx® + Flea Tapeworm (’22) PATHOLOGY and MEDICAL IDEXX Lyme Quant C6® + Cystoisospora (‘24) CO
Slide 86: Strategic Pillars Drive Global Reference Laboratory Excellence
Strategic Pillars Drive Global Reference Laboratory Excellence Differentiated Best-in-class Operational Optimized Advance Offering Experience Excellence Global Network Standard Of Care Accelerating Novel Digitizing Customer Continuously Improving Leveraging Globally Enabling and Supporting Dx Menu t
Slide 87: IDEXX Software Provides an Unparalleled Digital Experience
IDEXX Software Provides an Unparalleled Digital Experience World-class digital experience for veterinarians, staff and pet parents Patient-specific clinical insights and next-step assistance with IDEXX DecisionIQ + Digitizing end-to-end workflow, from ordering to results, and everything in between +
Slide 88: IDEXX Reference Labs Leads the Way in Customer Advocacy
IDEXX Reference Labs Leads the Way in Customer Advocacy IDEXX Reference Labs U.S. Net Promoter Score* (NPS) IDEXX Competitor A Competitor B *Double-blind primary research study conducted in April-May 2024 (n = 744, Question: How likely are you to recommend the following product(s) to a colleague? Sc
Slide 89: Full Diagnostic Solutions Centered on Disease Franchises
Full Diagnostic Solutions Centered on Disease Franchises Renal Parasitology Oncology Infectious Diseases Cardiac Endocrinology Liver Pathology © 2024 IDEXX Laboratories, Inc. All rights reserved. 89
Slide 90: <20% of $4B Global Renal Diagnostic Opportunity Served
< 20% of $4B Global Renal Diagnostic Opportunity Served Renal Diagnostic Testing Total Addressable Opportunity Estimate* Estimated Percentage Served in 2023 $1.7B $4.1B + 50% of geriatric cats 19% and dogs have some degree of kidney $1.1 impairment, and early $2.3 intervention helps slow $2.4B $0.6
Slide 91: IDEXX Offers Comprehensive Dx Solution for Renal Health
IDEXX Offers Comprehensive Dx Solution for Renal Health IDEXX DecisionIQTM \ IDEXX Cystatin B Test IDEXX FGF-23 is the first commercial veterinary test to for more confident targeted therapy for detect kidney injury in dogs and cats cats with Chronic Kidney Disease (CKD) Complete Urinalysis for deep
Slide 92: IDEXX is Reshaping Diagnosis, Treatment of Kidney Disease
IDEXX is Reshaping Diagnosis, Treatment of Kidney Disease IDEXX Cystatin B is Uncovering Disease Key Opinion Leaders See Significant Value… 1 in 5 dogs have an abnormal Cystatin B result* “Cystatin B …has the potential to reshape the future diagnostic and therapeutic directions of kidney disease.”**
Slide 93: North America Fecal Wellness Opportunity is Under-Served
North America Fecal Wellness Opportunity is Under-Served Study of U.S. Dog Parks Uncovered Significant North America Example: Significant Unmet Need for Fecal Parasite Prevalence* Accurate Fecal Testing in Wellness Visits** North America Wellness Parasitology Testing Opportunity** 85% of dog parks M
Slide 94: IDEXX Fecal Dx Redefines Intestinal Parasite Screening
IDEXX Fecal Dx Redefines Intestinal Parasite Screening Technology for Life Approach Has Resulted in IDEXX Fecal Dx® Antigen Testing is More Accurate Increasing Coverage Over Time Uncovers Almost 2x Parasites added to IDEXX Fecal Antigen Testing the Parasitic Infections* Flea Giardia Whipworm Hookwor
Slide 95: ~20M Dogs Can Benefit from IDEXX Cancer Dx Testing
~20M Dogs Can Benefit from IDEXX Cancer Dx Testing Worldwide IDEXX Cancer Dx Canine Addressable Opportunity (canine patients)* IDEXX Cancer Dx has Potential to Capture a Portion of this Over Time + These higher-risk 11.9M 20M addressable canine patients represent an estimated new ~$1.1B in potential
Slide 96: IDEXX Provides Best-in-Class Global Oncology Diagnostics
IDEXX Provides Best-in-Class Global Oncology Diagnostics Unmet Need Today Current Standard of Oncology Care Based on Tools Available Multi-cancer Diagnose and Treat Monitor Diagnostic Screen Characterize Sensitive, specific Key Diagnostics Today diagnostic screening test Category Examples with finan
Slide 97: IDEXX Cancer Dx Elevates Care through Wellness Screening
IDEXX Cancer Dx Elevates Care through Wellness Screening + IDEXX Cancer Dx will launch with canine lymphoma in 2025 Early-stage detection B vs. T cell cancer classification + Panel will expand over ~36 months to cover majority (>50%) of canine cancer cases, providing detection by cancer type + T
Slide 98: Early Human Cancer Detection has Advanced Care, Outcomes
Early Human Cancer Detection has Advanced Care, Outcomes Dog Owners and Veterinarians See Significant Value In Human Oncology Cases, in a Diagnostic Screening Test Earlier Detection Greatly Improves Health Outcomes 94% of dog owners agreed that early Percentage of U.S. Human Cancer Patients’ 5-Year
Slide 99: Execution Drives Global Growth and Profitability
Execution Drives Global Growth and Profitability Global Reference Lab Diagnostic Global Reference Lab Diagnostic and Consulting Services Recurring Revenue and Consulting Services Gross Margin and Organic Revenue Growth2 And Average Annual Gross Margin Expansion Gross Margin $1.3B ~51% 12% ~+125bps C
Slide 100: IDEXX Reference Labs Positioned for Innovation-Driven Growth
IDEXX Reference Labs Positioned for Innovation-Driven Growth Accelerated diagnostic menu innovation, enabled by breakthrough multi-omics platform Advancing end-to-end digital customer experience Steadily expanding gross margin through automation, digitization, AI-enablement Long runway for sustained
Slide 101: Michael Schreck
Michael Schreck Executive Vice President and General Manager Veterinary Software Services, Corporate Accounts and Customer Experience Callie
Slide 102: IDEXX Software Strategy
IDEXX Software Strategy Michael Schreck Executive Vice President and General Manager
Slide 103: IDEXX Software Addresses Our Customers' Strategic Priorities
IDEXX Software Addresses Our Customers’ Strategic Priorities Strategic Enabler of Diagnostics Business Cloud-based PIMS and Applications Deeply Integrated Vertical SaaS Strategy Pet-Owner Engagement for Digital Journeys AI Deployment within PIMS Workflow Customers Who Adopt Our Software Grow Faster
Slide 104: Our Software Ecosystem Advances Productivity & Diagnostics
Our Software Ecosystem Advances Productivity & Diagnostics PET OWNER 100% Digital Care Plans ENTERPRISE Portfolio Enterprise Coupons + Analytics Security Reminders & Marketplace Next Action PRACTICE Pet-Owner Group Payments Unified Data Engagement Oversight (POE) Platform Digital Referral Workflow M
Slide 105: Vertical SaaS Strategy Supports Visit and Diagnostic Growth
Vertical SaaS Strategy Supports Visit and Diagnostic Growth Top Software Talent + + Accelerate Cloud Adoption Deepen Application Adoption Expand POE Capabilities (ezyVet® as flagship PIMS) (via Vertical SaaS) (engine for increased Dx demand) Corporate Accounts Emphasis + Optimize via Leverage Digita
Slide 106: IDEXX Cloud PIMS have Strong Tailwinds and Positioning
IDEXX Cloud PIMS have Strong Tailwinds and Positioning Clinics evaluating "switching PIMS" Intent to Switch likely to consider a given cloud product Percentage of clinics planning to switch PIMS in the next two years* Percentage of clinics likely to consider a given cloud product** 16% 42% +5%(2) 20
Slide 107: Corporate Groups Seek Organic Growth and Productivity
Corporate Groups Seek Organic Growth and Productivity Number of Independent Practice Acquisitions* Non-Standardized PIMS Among Corporates** (North America) (Estimated) 1,550 ~70% 1,050 ~30% 500 300 2021 2022 2023 2024E On-Prem Cloud *2024E based on acquisition trends as of July 2024; values rounded
Slide 108: Corporate Groups are Standardizing Software with IDEXX
Corporate Groups are Standardizing Software with IDEXX IDEXX Enterprise Software Resolves New Corporate Account Bookings Key Corporate Needs (Annual Recurring Revenue) Consistent Workflow & Protocols Single, Scaled Software Provider ~3X Centralized Control & Visibility Integrated Suite of Applicatio
Slide 109: PIMS Installed Base has Transitioned to Primarily Cloud
PIMS Installed Base has Transitioned to Primarily Cloud… Total IDEXX PIMS Placements (Global) Total IDEXX PIMS Installed Base (Global): Cloud vs. On-premise* Cloud vs. On-premise* 35%+ Cloud 32% Cloud CAGR CAGR 93% 87% 59% 46% 61% 27% 2020 2022 2024E 2020 2022 2024E Cloud On-Prem Cloud On-Prem *ezyV
Slide 110: Expanding Annual Recurring Revenue Growth Potential
…Expanding Annual Recurring Revenue Growth Potential Artificial Intelligence Marketplaces Pet-Owner Back-office Engagement Digital Workflow + & Data Insights + Payments & Partnerships + PIMS + “Real Estate” Vertical SaaS Suite © 2024 IDEXX Laboratories, Inc. All rights reserved. 110
Slide 111: IDEXX Cloud Customers Generate More Dx Revenue
IDEXX Cloud Customers Generate More Dx Revenue Increase in CAG Dx Recurring Revenue (Avg. Monthly Spend, Before and After Adopting ezyVet*) +17% 100% Digital Workflows Seamless Integrations Standardized Procedures 12-Month Period Before: 12-Month Period After: Competitor PIMS ezyVet Competitor PIMS
Slide 112: Vello: The Clinically-Enabled Pet-Owner Engagement Platform
Vello: The Clinically-Enabled Pet-Owner Engagement Platform BEFORE THE VISIT • Online appointment scheduling • Automated reminders TM • Pre-appointment instructions • Visit preparation (financing, diagnostics opt-in, education, etc.) DURING THE VISIT • Digital check-in / wait-times • Automated promp
Slide 113: Early Vello Practices See More Visits and Diagnostics Revenue
Early Vello Practices See More Visits and Diagnostics Revenue Increase in Total Visits* Increase in IDEXX CAG Dx Recurring Revenue** 1000 2%+ 11%+ Monthly Practice Dx Revenue Monthly Practice Visits 750 500 Pre-Adoption Post-Adoption Pre-Adoption Post-Adoption 100,000+ Pet Owners To-Date *Practice N
Slide 114: Greenline Drives Adoption and Compliance
Greenline Drives Adoption and Compliance Personalized Offers on Invoice Value Creation for Practice & Pet Parent Practice Improvements Elimination of manual coupon processing by staff Invoice for April 12th, 2024 Modern, personalized client experience at check out Pharma Improved compliance Pa
Slide 115: Using AI to Improve Practice Workflows
Using AI to Improve Practice Workflows AI-enabled PIMS workflow • Pre-visit summarization (Q4’24*) • Voice to text transcription (Q4’24*) “…this saves hours per week by helping vets prepare for and perform each consult… – Clinic Manager, IDEXX ezyVet Customer *Beta release, illustration of software
Slide 116: We See Strong Momentum from Vertical SaaS Strategy
We See Strong Momentum from Vertical SaaS Strategy IDEXX Veterinary Software, Services and Diagnostic Imaging Systems Revenue and Revenue Growth ($M) Gross Profit $300 23% Recurring $250 15% Revenue CAGR* CAGR** 24% CAGR $200 77% $150 Recurring 66% $100 59% $50 Systems & Hardware $0 2019 2021 2023 2
Slide 117: IDEXX Software Drives Care Management and Productivity
IDEXX Software Drives Care Management and Productivity + + Cloud Adoption Vertical SaaS Pet-Owner Engagement New Dx Pet-Owner Dx and Visit Enterprise- Best Practice Product Engagement Growth Grade Software Workflow Launches Personalization © 2024 IDEXX Laboratories, Inc. All rights reserved. 117
Slide 118: George Fennell
George Fennell Senior Vice President Chief Revenue Officer Molly
Slide 119: Break
CREATING CLARITY Break Return in ~10 minutes
Slide 120: IDEXX Commercial Engagement
IDEXX Commercial Engagement George Fennell Senior Vice President & Chief Revenue Officer
Slide 121: Commercial Capabilities Support Innovation-driven Growth
Commercial Capabilities Support Innovation-driven Growth + Doubled commercial footprint over five years + Seven international country-level expansions + Experienced teams uniquely positioned to support sector development + Business partnership approach to inspire growth in appropriate testing + Inno
Slide 122: Customers have a Shared Desire to Grow
Customers have a Shared Desire to Grow Grow the Team New Tests and Tools Drive Efficiency Seeking partners for growth Onboarding new staff Software solutions to streamline workflow Identify care opportunities Achieve better professional balance Bring me the latest feline testing Suppor
Slide 123: Customers are Adapting to Today's Environment
Customers are Adapting to Today’s Environment… Managing the Practice + Staffing challenges + Developing the team Communicating with Embracing Technology Pet Owners + To expand care + Clinical value to clients + Practicing medicine + Digital channels productively © 2024 IDEXX Laboratories, Inc. All r
Slide 124: …and Will Benefit from Next Wave of Innovation
… and Will Benefit from Next Wave of Innovation Point of Care Reference Labs Software IDEXX Cancer Dx Screening Test and Aid in Diagnosis Fecal DxTM Expansion with Flea Tapeworm and Cystoisospora New IDEXX VetLab® Station PL IDEXX Cystatin B Test Catalyst® Catalyst® Detects kidney injury in dogs and
Slide 125: Customer-Centric Model Delivers Value in an Integrated Way
Customer-Centric Model Delivers Value in an Integrated Way In the Veterinary Practice Extension of the Practice Veterinary Diagnostic Medical Consultants Consultant Professional Service Pathologists Veterinarian Field Support Digital Radiology Representative Software Specialist Customer Support The
Slide 126: Best Practices Developed Over a Decade, Now Applied Globally
Best Practices Developed Over a Decade, Now Applied Globally Evolution of IDEXX U.S. Commercial Model 2013 2014 2015 2018 2024+ Modality Account Direct to IDEXX 360 Innovation & Sales Management Customer Utilization OR Distributor model Fully direct Enabling customer Driving Adoption of Reference In
Slide 127: Commercial Expansions Develop Global Opportunity
Commercial Expansions Develop Global Opportunity 2021 2022 2023 Germany France Brazil Italy United States Spain South Korea Japan Sales Operations Global Commercial Systems Education & Training Marketing Global Customer Support © 2024 IDEXX Laboratories, Inc. All rights reserved. 127
Slide 128: Focus on Driving Reach in International Regions
Focus on Driving Reach in International Regions 2023 Reach to Revenue 2023 Reach to Customer Animal Practices per Territory 94% 264 83% 72% 112 27% *EU region is the average of the top five largest countries (Germany, France, UK, Spain and Italy) that utilize the IDEXX Commercial (VDC) Model © 2024
Slide 129: Our Customers Grow Faster When We Call on Them
Our Customers Grow Faster When We Call on Them 2023 Year-Over-Year Average Quarterly Growth in CAG Revenue (%)* International Country A Country B Country C Loyal IDEXX 21% 23% 11% Customers** 14% 18% 9% Competitive 164% 93% 119% Practices*** Customers Called On Customers Not Called On *Revenue Growt
Slide 130: $45 Billion Underserved Global Opportunity in Diagnostics
$45 Billion Underserved Global Opportunity in Diagnostics Worldwide Total Addressable Companion Animal Diagnostics Revenue Opportunity (~$45B Total, ~15% served)* 8% North Europe 22% America Region Served Region $14B 9% $17B $7B Asia 2% Pacific Region Latin $7B America Region *Total addressable comp
Slide 131: Underdeveloped International Diagnostic Testing Opportunity
Underdeveloped International Diagnostic Testing Opportunity 2023 Estimated Diagnostic Revenue per Companion Animal Practice Relative to the U.S.* Top 15 Countries in terms of Diagnostic Segment Revenue 100 80 60 40 20 0 *Revenue per country estimated at the manufacturer level. Includes reference lab
Slide 132: International Opportunity to Broaden Routine Testing
International Opportunity to Broaden Routine Testing 2023 Routine vs. Non-Routine Testing Revenue by Country* (%) Non-Routine 20% Testing Routine 80% Testing** United States Germany Australia Japan Italy Spain United Kingdom France *Test volume at IDEXX Reference Laboratories by region. **Routine te
Slide 133: Commercial Capabilities Enable Placement Momentum
Commercial Capabilites Enable Placement Momentum Worldwide Premium Instrument Placements* 19k Placement Drivers ~5X + Development of instrument suite International + Instrument fit to regional needs + Customer hunger for technology 4k + Customer-friendly marketing U.S. programs 2010 2015 2019 2023 *
Slide 134: Engagement Inspires Adoption of Multi-Modality Offering
Engagement Inspires Adoption of Multi-Modality Offering 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 IDEXX VetLab® ONLY Customers Customers 57% 43% 34% +100bps +300bps +300bps v
Slide 135: Customer Solutions Orientation Enables Innovation at Scale
Customer “Solutions Orientation” Enables Innovation at Scale Uncover More with Relevant Drive New Business, Loyalty Driving Wellness Diagnostics Diagnostic Solutions and Dx Utilization + SDMA + Fecal Antigen + Cystatin B + Oncology + Catalyst PL (coming soon) Innovation and Differentiated Customized
Slide 136: Using Data to Drive Increased Diagnostics Utilization
Using Data to Drive Increased Diagnostics Utilization Patient-centric data Aligned to regional prevalence 1 in 5 dogs Updated on Aug 3, 2024: Had clinically relevant findings across all internal health results at Everest Veterinary Services Everest Veterinary Services Combined HW Tick Borne Intestin
Slide 137: True Innovations Eliminate Work in Relevant Testing Categories
True Innovations Eliminate Work in Relevant Testing Categories Work Performed Today Using Traditional Methods Coming in 2025: Ear Cytology Blood Morphology Fine Needle Aspirates Automate & Most Comprehensive Contextualized Elevate Hematology Results in Minutes Revolutionary slide-free workflow © 202
Slide 138: IDEXX Cancer Dx Supported by Engagement, Education, Tools
IDEXX Cancer Dx Supported by Engagement, Education, Tools Sector Development Focus + Robust, expanding clinical evidence and KOL advocacy Making IDEXX Cancer Diagnostics Mainstream + Top ranked Professional Service Veterinarian group* + Clinician Belief, Education, Support, Utilization of new paradi
Slide 139: Innovation and Execution Deliver Value and Mutual Growth
Innovation and Execution Deliver Value and Mutual Growth + Solutions enable efficient, high-quality care + Digitizing workflow ensures quality and speed + Software solutions to facilitate client comms + IDEXX resources for care consultations + In-clinic education drives staff expertise + Model based
Slide 140: Brian McKeon
Brian McKeon Executive Vice President Chief Financial Officer Daisy
Slide 141: IDEXX Financial Review
IDEXX Financial Review Brian McKeon Executive Vice President and Chief Financial Officer
Slide 142: Financial Review – Key Messages
Financial Review – Key Messages + Delivering strong financial results through strategic focus and execution + CAG innovation, customer engagement and global expansion drive 10%+ long-term organic revenue growth potential + Durable annuity model supports operating margin expansion, strong EPS growth
Slide 143: Consistent, Focused Strategy Delivers Strong Results
Consistent, Focused Strategy Delivers Strong Results Multi-Year 2015-2019 2019-2023 Goals* Organic Revenue Growth CAGR2 11% 12% 10%+ Annual Operating Margin Gains** (Average Annual Comparable Operating Margin Gain)5 140 bps 180 bps 50 - 100 bps Annual EPS Growth** (Average Annual Comparable EPS Grow
Slide 144: Significant Global Expansion of CAG Dx Recurring Revenues
Significant Global Expansion of CAG Dx Recurring Revenues CAG Diagnostics Recurring Revenue Organic Revenue CAGR2 Organic Revenue Growth2 ($ Billions) 2015 – 2019 2019 – 2023 13% 3.0 CAGR 2.5 International 14% 13% 13% 2.0 CAGR 1.5 U.S. 12% 13% 1.0 0.5 - 2015 2019 2023 2Non-GAAP financial measure, pl
Slide 145: Software Adds Durable, High Return Recurring Revenues
Software Adds Durable, High Return Recurring Revenues Veterinary Software, Services and Diagnostic Imaging Revenue and Recurring Revenue Organic Growth 3 ($ Millions) 300 Recurring Software Services Growth Drivers Recurring Revenue Organic Growth 20% Expansion of cloud-based solutions and 200 CAGR a
Slide 146: IDEXX Execution Drives Solid Growth Off Expanded Base
IDEXX Execution Drives Solid Growth Off Expanded Base Average Annual Worldwide CAG Diagnostics Recurring Revenue Normalized Organic Growth3 ~ 16% IDEXX Execution Growth Drivers ~ 12% ~ 9% Net Price ~ 9%-10% Utilization ~ 8%-9% New Business & Core ~ 11% Installed Base Expansion ~ 6%-7% Clinical Visit
Slide 147: Post-Pandemic Transition Constraining Clinical Visit Growth
Post-Pandemic Transition Constraining Clinical Visit Growth Step-up in Pet Ownership Points to Underserved Opportunity U.S. Half-year Average Clinical Visits per Practice Indexed with each 2017 half-year = 100 Long-term Clinical Visit Drivers Post-pandemic period 135 Historical trend + Expanded and
Slide 148: Future Growth Drivers: Robust Innovation Pipeline
Future Growth Drivers: Robust Innovation Pipeline Estimated IDEXX inVue Dx Cellular Analyzer Revenue New Innovation +2%+ Contribution Consumable to Long-term Global CAG Diagnostics Capital Recurring Revenue Growth Potential Key Innovation Areas + New Point of Care Platforms + Disease Franchises + Ne
Slide 149: Future Growth Drivers: Global Installed Base Expansion
Future Growth Drivers: Global Installed Base Expansion Global Incremental IDEXX Premium Instrument Placement Opportunity* 10%+ Annual Installed Base New Growth Potential Core Global Platforms** Placement Opportunity* ~240k International U.S. 135k Urinalysis Hematology Chemistry 2023 Global Installed
Slide 150: Future Growth Drivers: Higher Diagnostic Utilization (U.S.)
Future Growth Drivers: Higher Diagnostic Utilization (U.S.) % of U.S. Clinical Visits including Bloodwork* 30% + 0.5% per year 25% + 0.5% + 0.5% Annual per year U.S. Expansion Drives 20% 19% 18% ~ 1 – 1.5% Global CAG Diagnostics 15% 13% Recurring Revenue Growth 10% 5% 0% 2010 2019 2023 Source: Based
Slide 151: Future Growth Drivers: Raising Global Diagnostic Standards
Future Growth Drivers: Raising Global Diagnostic Standards 2023 Estimated Diagnostic Revenue per Companion Animal Practice Relative to the U.S.* Top 15 Countries in terms of Diagnostic Segment Revenue 100 80 60 40 20 0 *Revenue per country estimated at the manufacturer level. Includes reference lab,
Slide 152: Future Growth Drivers: Cloud-Based Software and Services
Future Growth Drivers: Cloud-Based Software and Services 15%+ Annual Recurring Revenue Artificial Intelligence Organic Growth Opportunity Marketplaces Pet-Owner Back-office Engagement Digital Workflow + & Data Insights + Payments & Partnerships + PIMS + “Real Estate” Vertical SaaS Suite © 2024 IDEXX
Slide 153: Innovation and Execution Support Long-Term Growth Potential
Innovation and Execution Support Long-Term Growth Potential Average Annual Worldwide CAG Diagnostics Recurring Revenue Organic Growth2 11% - 14% IDEXX Execution ~ 9% Growth Drivers 2.5% - 4% Net Price ~ 6%-7% 3.5% - 4%+ 8.5% - 11% Utilization & New Innovation ~ 2% 2.5% - 3% New Business & Core ~ 3%
Slide 154: Long-Term Potential for 10%+ Annual Organic Revenue Growth
Long-Term Potential for 10%+ Annual Organic Revenue Growth Driven by double-digit expansion of CAG Diagnostics Recurring Revenue IDEXX Long-term Total Company Annual Organic Revenue Growth2 Potential High Mid-Single 10%+ Annual Growth Single Digit Digit Potential 15%+ 5% - 10% 11% - 14% Internationa
Slide 155: Targeting Continued Solid Annual Operating Margin Gains
Targeting Continued Solid Annual Operating Margin Gains Annual Operating Margin and Average Annual Long-term Goal** Comparable Operating Margin Expansion5 (bps) +50 - 100 bps +80* Average Annual Comparable Gains +280 30% Key Drivers +140 + 60%+ incremental CAG Diagnostics 25% recurring revenue gross
Slide 156: Investment Focus Aligned with Strategic Growth Priorities
Investment Focus Aligned with Strategic Growth Priorities M&A and R&D In-license Activity Key Growth Investments Areas 2017 – H1’24* ~ $490MM Innovation R&D Point of Care Reference Technology Labs In-license Customer-facing Software Other Data and AI Information Management Global Commercial Expansio
Slide 157: Strong Cash Flow Driven by High Net Income Conversion
Strong Cash Flow Driven by High Net Income Conversion Free Cash Flow % of Net Income8 100% Large facility projects Key Cash Flow Highlights + Consistent long-term target for high 75% conversion to free cash flow Discrete R&D • 80 - 90% of net income 50% + Low capital investment intensity Free cash f
Slide 158: Conservative Balance Sheet -- Flexibility for Capital Allocation
Conservative Balance Sheet -- 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2'24 9Non-GAAP financial measure, please refer to Appendix for footnotes. © 2024 IDEXX Laboratories, Inc. Al
Slide 159: Capital Allocation Aligned with Shareholder Value Creation
Capital Allocation Aligned with Shareholder Value Creation After-Tax Return on Invested Capital, Capital Allocated to Share Excluding Cash & Investments7 Repurchases* 48% Over 46% reduction $3.5B 34% in weighted avg share count since 1999 $198 avg purchase price $2.4B $22 avg purchase price 2016 202
Slide 160: Strong Long-Term Revenue and EPS Growth Potential
Strong 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%-2% 15%-20% bps Incremental EPS Growth *Long-term financial model exclud
Slide 161: Appendix
CREATING CLARITY Appendix
Slide 162: 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 163: Footnotes
Footnotes 3 Normalized Organic Revenue Growth, continued: Average Annual CAGR Worldwide CAG Diagnostics Recurring 2017 2018 2019 2020 2021 2022 2023 H1'24 2024E 2017-2019 2020-2021 2022-2024E 2010-2015 2015-2019 2018-2023 2019-2023 Reported Growth 13% 14% 11% 16% 20% 5% 10% 7% 7% 13% 18% 8% 9% 12% 1
Slide 164: Footnotes
Footnotes 4 Constant Currency: Adjustments to GAAP financial measures for “currency impacts” or “Changes from currency” 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 comparis
Slide 165: 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 166: 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 167: Footnotes
Footnotes 8 Free Cash Flow and Ratio of Free Cash Flow to Net Income: 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, reduced by the Company’s investments in property and equipment. The ratio of fr