IDEXX Laboratories, Inc. · NASDAQ:IDXX

IDEXX Laboratories — Investor Day (August 2015)

92 slides from IDEXX Laboratories's investor day presentation, Aug 6, 2015

Slide 2: 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 3: IDEXX Innovation
IDEXX Innovation CAT One Procyte A core strategic growth driver for 30 years SNAP Pro $1.6B Digital VetTest Radiology LaserCyte Catalyst Dx 4Dx Plus SNAP cPL SNAP 3Dx $1B $1B SNAP fPl CITE Canine Parvo Lyme SNAP SNAP Quant C6 CardioPet H3N2 Feline Combo Fecal CITE Antigens FeLV / HW Feline Triple $5
Slide 4: IDEXX's Innovation Investment
IDEXX’s Innovation Investment Over 80% of identifiable industry R&D annually Cash R&D Investment1 $ MM $120 $100 Million $80 $40 $0 2012 2013 2014 2015 Estimate Driving an unprecedented pace of new tools for veterinarians 1Non-GAAP financial measure please refer to Appendix for footnotes. © 2015 IDE
Slide 5: Revenue growth from new products launched
of IDEXX revenue growth over last 5 years generated from new products launched during that time © 2015 IDEXX Laboratories, Inc. All rights reserved. 5
Slide 8: Helping Pets Live Long, Healthy Lives
Helping Pets Live Long, Healthy Lives By delivering the most timely and complete diagnostic picture Skin Histology & Cytology • Ringworm RealPCR™ Test Images in reports • Sarcoptes Antibody by ELISA • GREER® Aller-g-complete® by IDEXX • Allergen Sublingual Immunotherapy Hips Hip Dysplasia DNA Dysgen
Slide 9: Consistent Double-Digit U.S. Ref Lab Revenue Growth
Consistent Double-Digit U.S. Ref Lab Revenue Growth Driven by first-and-only reference lab products and services $ MM 350 U.S. Ref Lab Revenue 14% 300 12% 10% 250 13% 11% 200 12% 150 100 50 - 2009 2010 2011 2012 2013 2014 2015 Estimate © 2015 IDEXX Laboratories, Inc. All rights reserved. 9
Slide 10: Level of Product Innovation in 2015 is Unprecedented
Level of Product Innovation in 2015 is Unprecedented T4 on Catalyst SediVue® Dx Fecal Antigens SNAP® Lepto H3N2 Images in Lab Reports Canine Flu Mobile Results Trending © 2015 IDEXX Laboratories, Inc. All rights reserved. 10
Slide 11: Breakthrough Innovation: SDMA Kidney Function Test
Breakthrough Innovation: SDMA Kidney Function Test Transforming the way veterinarians diagnose chronic kidney disease New kidney function test: SDMA © 2015 IDEXX Laboratories, Inc. All rights reserved. 11
Slide 12: SDMA is Earlier than Creatinine in Diagnosing Kidney Function Loss
SDMA is Earlier than Creatinine in Diagnosing Kidney Function Loss Normal kidneys 25 - 40% Loss SDMA 75% Loss increases Creatinine Up to 4 Years Earlier increases Average: 17 months for cats; 10 months for dogs © 2015 IDEXX Laboratories, Inc. All rights reserved. 12
Slide 14: Flawless N.A. Product Launch
Flawless N.A. Product Launch Over 40% of N.A. ref lab market is now utilizing SDMA • Over 300,000 Pets Tested to Date • Nearly 11,000 Clinics Now Using SDMA • Over 1,300 Competitive Lab Customers • Strong KOL Support • 27 Peer-Reviewed Publications © 2015 IDEXX Laboratories, Inc. All rights reserved
Slide 15: Highly Engaged Renal Experts
Highly Engaged Renal Experts 17 vet nephrologists have written articles and/or given SDMA talks “SDMA appears to be a major step forward in our diagnostic approach to chronic kidney disease. Dr. Greg Grauer, DVM, MS, DACVIM, Professor and Jarvis Chair of Small Animal Internal Medicine, Kansas State
Slide 16: SDMA Integrated into IRIS Staging Guidelines
SDMA Integrated into IRIS Staging Guidelines International Renal Interest Society A persistent elevation in SDMA above 14 µg/dl would indicate reduced renal function and be a reason to categorize a dog or SDMA used to identify cat (with creatinine values <1.4 or <1.6 mg/dl, respectively) as Stage 1
Slide 17: SDMA is Finding Kidney Disease Earlier Than Creatinine
SDMA is Finding Kidney Disease Earlier Than Creatinine More than half of kidney disease missed by creatinine alone, in the population where kidney disease is LEAST suspected 12% SDMA Positive Creatinine Normal 5% 5% SDMA and Creatinine Both Positive 2% Dogs Cats 46k middle-age dogs (5-10 years old)
Slide 18: Customers Understand SDMA
Customers Understand SDMA “I see the real value of this test as finding hidden kidney disease in healthy looking animals” “There’s simply no reason NOT to do annual preventive care testing now” “Wow, I’m going to use this with my clients to get them to bring their pets in annually.” “I’m an Antech r
Slide 19: A New Standard of Care for Routine Chemistry Testing
A New Standard of Care for Routine Chemistry Testing SDMA now automatically included in ALL IDEXX chemistry panels Traditional Chem Panel Modern Chem Panel (1980’s to Present) (Only from IDEXX) CREATININE CREATININE BUN SDMA GLUCOSE BUN ALT GLUCOSE ALK PHOS ALT TOTAL PROTIEN ALK PHOS ALBUMIN TOTAL P
Slide 20: SDMA Will Have a Revenue Multiplier Effect
SDMA Will Have a Revenue Multiplier Effect  Increased Loyalty – Lower Customer Defection  Chemistry Utilization – More Chemistry Tests  New Customers – Segment Share Growth  More Catalyst Placements – SDMA Rebate for Catalyst IHD  $19.95 Stand-Alone Tests – Direct Revenue © 2015 IDEXX Laborator
Slide 21: Multi-Year Trend of Improving Customer Defection
Multi-Year Trend of Improving Customer Defection We believe SDMA differentiation will continue this trend U.S. Reference Lab Customer Defection Rate 8.0% Integrated Sales 7.0% Organization 6.0% 5.0% Year-to-Date 4.0% 3.0% 2.0% VetConnect® Plus 1.0% 0.0% 2010 2011 2012 2013 2014 2015 © 2015 IDEXX Lab
Slide 22: SDMA Will Drive Higher Chem Testing at IDEXX
SDMA Will Drive Higher Chem Testing at IDEXX Chemistry test utilization and segment share gains believe SDMA likely or highly likely to increase their preventive care testing of competitive ref lab customers likely or highly likely to send samples to IDEXX for SDMA testing Veterinarian survey conduc
Slide 23: Ref Lab Chemistry Test Spending
Ref Lab Chemistry Test Spending Historically no differentiation  Compete on price and service Annual Ref Lab Chemistry Testing Spending $12,000 $12,000 Traditional Traditional Chemistry Panel Chemistry Panel IDEXX Competitive Labs • Clinic that runs 400 ref lab chemistry panels per year • Average c
Slide 24: SDMA Changes Chem Testing Economics
SDMA Changes Chem Testing Economics Splitting samples for SDMA would increase customer cost by 67% Annual Ref Lab Chemistry Testing Spending $20,000 Stand-Alone SDMA from +$8,000 $12,000 IDEXX Modern Traditional Chemistry Panel Chemistry Panel with SDMA (no SDMA) IDEXX Competitive Labs • Clinic that
Slide 25: SDMA is a $200M Revenue Opportunity
SDMA is a $200M Revenue Opportunity $200  Increased Loyalty Projected Worldwide Annual Revenue Driven by SDMA ($ MM)  New Customers  Chemistry Utilization  $19.95 Stand-Alone Tests  Catalyst Placements 2016 2017 2018 2019 2020 © 2015 IDEXX Laboratories, Inc. All rights reserved. 25
Slide 26: Introducing SNAP Lepto
Introducing SNAP Lepto First and Only petside test for leptospirosis  Simple, affordable results in 10 minutes  Spread through urine of infected animals in standing water  Widely prevalent worldwide  Dangerous: Can spread to humans  Suspected infected dogs require quarantine Canine 4Dx Plus Fel
Slide 27: IDEXX Reference Lab - Fecal Antigen Panels
IDEXX Reference Lab - Fecal Antigen Panels Exclusively from IDEXX, launched May 2015 Reference Lab: manual prep/microscope US Fecal Testing: 40 MM tests annually 7 MM 33 MM In-clinic: manual prep/ microscope © 2015 IDEXX Laboratories, Inc. All rights reserved. 27
Slide 28: Highest Sensitivity for Detecting Fecal Parasites
Highest Sensitivity for Detecting Fecal Parasites Earlier detection allows for earlier treatment and management In-Clinic Microscopy Ref Lab Microscopy Ref Lab Fecal Antigen 98% 100% 89% 82% 84% 78% 78% 80% 64% 60% 56% 44% 40% 20% 0% Roundworm Whipworm Hookworm Source: Adolph, C. Elsemore, D. et al.
Slide 29: Fecal Antigen Testing
Fecal Antigen Testing Replicating the technology path of Heartworm testing Heartworm Microscopy Ref Lab Antigens In-Clinic 1800’s -1989 1989 - Present 1992 - Present Intestinal Parasites Microscopy Ref Lab Antigens 2015 1800’s - Present © 2015 IDEXX Laboratories, Inc. All rights reserved. 29
Slide 30: SNAP Fecal Antigen is Coming in H2 2017
YES: SNAP Fecal Antigen is Coming in H2 2017 • Feasibility demonstrated • Prototypes manufactured • Clinical studies begin later this year Hookworm Whipworm • USDA submission expected in 2016 • Significant Patent Protection $200 Million Annual Roundworm Market Opportunity © 2015 IDEXX Laboratories,
Slide 31: Fecal Ag Franchise Expected to Reach $100M by 2020
Fecal Ag Franchise Expected to Reach $100M by 2020 Driven by SNAP Fecal Antigen $100 2016 2017 2018 2019 2020 © 2015 IDEXX Laboratories, Inc. All rights reserved. 31
Slide 32: Rapid Innovation in Response to New Threats
Rapid Innovation in Response to New Threats RealPCRTM Test for Canine H3N2 Flu Product Developed in Less Than Four Weeks! © 2015 IDEXX Laboratories, Inc. All rights reserved. 32
Slide 33: VetConnect Plus Enhancements in 2015
VetConnect Plus Enhancements in 2015 Images in Lab Reports On-Line Diagnostics Ordering Results Trending in Mobile Decision Support Tools © 2015 IDEXX Laboratories, Inc. All rights reserved. 33
Slide 34: IDEXX SediVue Dx: Launching Q1 2016
IDEXX SediVue Dx: Launching Q1 2016 First and Only in-clinic urine sediment analyzer Real-Time Care: Results in 3 minutes Chemistry Physical exam, Hematology history, infectious Growing to $100 Million disease testing Revenue by 2020 © 2015 IDEXX Laboratories, Inc. All rights reserved. 34
Slide 35: SediVue Dx
SediVue Dx Walk-away automation in 3 minutes (vs. manual 18 minutes today) Sediment Analysis < 1 min “Load and Go”; 3 minutes total Collect Sample Integrated Results Physical analysis Chemical analysis 2 Min 1 Min 2 Min 0 Min 3 Minutes © 2015 IDEXX Laboratories, Inc. All rights reserved. 35
Slide 36: Meet the New Standard for the In-clinic Laboratory
Meet the New Standard for the In-clinic Laboratory PIMS 2-Way Integration VetConnect Plus Catalyst One ProCyte Dx SediVue Dx SNAP Pro Chemistry, T4, Complete CBC, Retics Electrolytes Urine Sediment Infectious Diseases and Bands The Complete Diagnostic Baseline during the Patient Visit © 2015 IDEXX L
Slide 37: Creating Value With First-And-Only Solutions
Creating Value With First-And-Only Solutions  Accelerating Pace of Innovation  Best-in-Class R&D Capability  Full R&D Product Pipeline  $100M Products: SDMA (2015), SediVue (2016), SNAP Fecal (2017)  Fueling Continued Double-Digit CAG Revenue Growth  The Commercial Organization to Deliver This
Slide 41: 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 42: Diagnostics Foundational and Growing in Importance
Diagnostics Foundational and Growing in Importance  Continued strengthening of the pet-human bond  Veterinarians losing product sales to retail/ on-line  Diagnostics have a compelling clinical and economic value  Veterinarians seek innovative new tests and want integrated ordering and results 
Slide 43: The 2014 U.S. Diagnostics Market Represents about $2B, Projected to Grow 9%
The 2014 U.S. Diagnostics Market Represents about $2B, Projected to Grow 9% Estimated 2014 Total Companion Animal Diagnostic and Information Management Spending stated in USD $ million at current FX rates2 Canada $120 Europe, Middle East & Africa U.S. $25 $115 $660 China Japan $1,990 Other $50 Asia
Slide 44: 14% of Practices Have >20% of Their Revenue from Diagnostics
14% of Practices Have >20% of Their Revenue from Diagnostics Best practice in diagnostics suggests that practices have room to grow Sample of U.S. Practices by Diagnostic Utilization Level, 2014 High Diagnostic Utilization 15.3% Average Across Sample 38% 35% 13% 10% 4% 0% to 10% 10% to 15% 15% to 20
Slide 45: New Category Creation Represent Large, New Markets for IDEXX
New Category Creation Represent Large, New Markets for IDEXX 2014 2020 IDEXX First & Only Innovations In-House In-House Urinalysis Urinalysis 5.4M tests $100M In-House Fecal Franchise Fecals 33M tests $100M © 2015 IDEXX Laboratories, Inc. All rights reserved. 45
Slide 46: A Commercial Model Aligned with Our Innovation Pipeline
A Commercial Model Aligned with Our Innovation Pipeline Solutions Portfolio Commercial Model • SDMA, fecal antigen, Lepto • Reach, frequency and strengthening relationships • SediVue (urine sediment) • New category creation • Catalyst One and menu • Behavioral changes to drive • Information manageme
Slide 47: Our Commercial Approach is Customer Centric and Grounded in Diagnostic Expertise
Our Commercial Approach is Customer Centric and Grounded in Diagnostic Expertise ‘13 ‘14 ‘15 ’16 + Modality Centric Territory Centric Customer Centric Distributors Distributors Fully direct 2 Sales Forces 170 accounts per 120 accounts per VDC account mgr (VDC) 300 - 500 Inside Sales Center & account
Slide 48: Largest Companion Animal Commercial Organization in the U.S.
Resulting in the Largest Companion Animal Commercial Organization in the U.S. 3 181 7 VDCs IVDCs U.S. Areas 14 22 22 78 Corp. Acct Mgrs. VDSs Dx FSRs Regions 14 81 ISRs PSVs VDC - Veterinary Diagnostic Consultants, VDS - Veterinary Diagnostic Specialists, Dx FSR - Diagnostic Field Service Representa
Slide 49: The U.S. Commercial Team Maturing Rapidly
The U.S. Commercial Team Maturing Rapidly  The direct sales model has been “stood up” and is operating solidly  Sales expansion in place six months; new adds with average 10+ years of sales experience  Growth in capability growing each quarter  Our innovation agenda is enabling access to veterin
Slide 50: Professional Service Veterinarians Are a Key Element of Our Commercial Effectiveness
Professional Service Veterinarians Are a Key Element of Our Commercial Effectiveness  Experienced Team of 14 -  Avg. >10 years clinical practice  Avg. >10 years of industry experience  Seated in Q2  Approach –  Focus clinical differentiators  Access through established customer relationships
Slide 51: Balancing Innovation with Commercial Strength … Successful SDMA Launch
Balancing Innovation with Commercial Strength … Successful SDMA Launch  VDCs signed up 600 pilot customers  All U.S. customers went live July 13th  90% of all U.S. veterinarians surveyed are aware of SDMA, its clinical importance and IDEXX’s role prior to launch  50% of IDEXX customers learned a
Slide 52: SDMA Opening Doors, Becoming Indispensable
SDMA Opening Doors, Becoming Indispensable  98% view SDMA as a positive development for detecting kidney disease  74% believe SDMA will increase preventative care testing  88% of competitive reference lab customers likely or highly likely to use SDMA  Supported by IRIS  27 peer-reviewed publica
Slide 53: Our On-Line Store Has Been Quickly Adopted
Our On-Line Store Has Been Quickly Adopted % Online Orders 60 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul 56% transactions online in July 92% customer satisfaction Creating an increasing amount of outbound calling capacity within our inside sales center © 2015 IDEXX Laboratories, Inc. All rights re
Slide 54: Commercial Focus Continues to Be on Growing the Catalyst Customer Base
Commercial Focus Continues to Be on Growing the Catalyst Customer Base % Competitive Chemistry Placements – North America 60% 40% 20% 0% 2010 2011 2012 2013 2014 2015 YTD © 2015 IDEXX Laboratories, Inc. All rights reserved. 54
Slide 55: Catalyst One is the "Gold Standard" in Chemistry
Catalyst One is the “Gold Standard” in Chemistry • Unmatched Menu • Incomparable Performance • Unrivaled Connectivity © 2015 IDEXX Laboratories, Inc. All rights reserved. 55
Slide 56: Catalyst One, SDMA Have Universal Appeal for All Practices
Catalyst One, SDMA Have Universal Appeal for All Practices IDEXX Practices Competitor Practices3 IDEXX Labs . IDEXX In-clinic Competitive Labs . Competitive In-clinic Number of Practices as June 2015 6,300 8,300 (43% of IDEXX U.S. customers4) Average Revenue per Practice5 $1.5M $1.0M 3“Competitor” P
Slide 57: SNAP is the Trusted Brand
SNAP is the Trusted Brand  Uniquely uses reference lab ELISA technology  In clinical use for over 20 years  Claims validated by over 100 peer- reviewed studies © 2015 IDEXX Laboratories, Inc. All rights reserved. 57
Slide 58: Customers Value Accuracy Above All
Customers Value Accuracy Above All Top Three Most Important Attributes Base: All Respondents (n=192) Accuracy 77% 19% 96% Cost 14% 69% 83% Ease of use 7% 83% 76% Results integration 1% 18% 19% Storage requirements 9% 9% Most Valuable Top 3 Inventory management 6% 6% Veterinarians recognize that the
Slide 59: Head-to-Head Clinical Studies Support SNAP's Superior Sensitivity
Head-to-Head Clinical Studies Support SNAP’s Superior Sensitivity Peer Peer Reviewed Reviewed Studies 7 Published Abaxis FeLV: only 71% sensitive Abaxis Ehrlichia E. only Witness FeLV: only 80% Abaxis Anaplasma P.: 60% sensitive6 sensitive only 30% sensitive IDEXX sensitivity 92% IDEXX sensitivity 9
Slide 60: Our Message is Resonating with Customers
Our Message is Resonating with Customers “This is VITAL information. On Ehrlichia specifically I have had a ton of success. This has worked like a charm and I have won back three accounts from Abaxis and counting.” - VDC Carolinas “So far every clinic I have spoken to that tried Zoetis or VetScan sw
Slide 61: Information Where and When Veterinarians Want It
Information Where and When Veterinarians Want It Data for IDEXX U.S. veterinary practices Gen 1 Gen 2 Gen 3 Results and Trends Add: Mobile Add: Images July 2012 Feb 2014 July 2015 61 launch 10,596 activations 14,679 activations 346K total views 943K total views © 2015 IDEXX Laboratories, Inc. All ri
Slide 62: VetConnect PLUS
VetConnect PLUS Imaging Innovations – Pathology - > 50,000 images since 1 July Both anatomic and clinical pathology -Mobile- September 2015 © 2015 IDEXX Laboratories, Inc. All rights reserved. 62
Slide 63: Radiology Images are also now available in VetConnect PLUS
Radiology Images are also now available in VetConnect PLUS Capture the image Store, view and access Images in VC PLUS Share the image Via IDEXX PACS Supports images from IDEXX customers as well as 11,000 competitive systems © 2015 IDEXX Laboratories, Inc. All rights reserved. 63
Slide 64: Why is 2-Way Integration So Valued by Our Customers?
Why is 2-Way Integration So Valued by Our Customers? 1. Increases staff efficiency by automating and eliminating manual steps in the process 2. Automates capture of all in-house lab revenue, eliminates the cost of lost charges 3. Improves clinical decisions through complete patient reports with VetC
Slide 65: What is 2-Way Integration? Why is it unique to IDEXX?
What is 2-Way Integration? Why is it unique to IDEXX? Select the patient in the PIMS Full patient info transfers automatically into the IVLS queue VetLab Connects PIMS a variety Results automatically station of instruments sent back to the PIMS to be part of the EMR Consolidated Added to Report invo
Slide 66: Our Competition: A One-way Street of 'Connectivity'
Our Competition: A One-way Street of ‘Connectivity’ One-way integration is all manual Manually enter request here 1. Enter request at PIMS 2. Manually copy Patient ID number from PIMS with pen and paper Results 3. Walk over to lab area Manually enter PIMS request here 4. Manually enter patient ID at
Slide 67: We're Excited About Our Future
We’re Excited About Our Future The Opportunity is Large … Our Innovation is Unmatched … We love our pets “First and Only” Incomparable Commercial Channel Driving demand, customer bonds, and clinical beliefs © 2015 IDEXX Laboratories, Inc. All rights reserved. 67
Slide 70: 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 71: Overview of IDEXX International Operations
Overview of IDEXX International Operations • Head office in Amsterdam • Head office in Toronto • 5 Reference Labs • 15 Reference labs • Direct sales • Manufacturing & R&D in Switzerland, France, UK • Regional organizations in Australia, New Zealand, Japan, • Direct sales in major countries China, Ta
Slide 72: CAG is Our Largest and Fastest Growing International Business
CAG is Our Largest and Fastest Growing International Business Total IDEXX International Revenues $ Million $637 $575 $534 Water, Other $519 Livestock, $451 Poultry & Dairy Companion Animal Group 2010 2011 2012 2013 2014 © 2015 IDEXX Laboratories, Inc. All rights reserved. 72
Slide 73: There are 3X More Potential Veterinary Practice Customers Outside North America
There are 3X More Potential Veterinary Practice Customers Outside North America Number of Companion Animal Veterinary Practices with In-House Chemistry Today or Eligible Greenfield Sites Canada Other 3k Europe Western 27k 10k Europe 9k 27k 3k U.S. China Japan 3k Middle 5k East & Other 9k Africa Asia
Slide 74: Current International CAG Market is 1/2 the Size of the U.S.
Current International CAG Market is 1/2 the Size of the U.S. Estimated 2014 Total Companion Animal Diagnostic and Information Management Spending stated in USD at current Fx rates8 Canada $120M Europe, Middle East & Africa U.S. $25M $115M $660M China $1,990M Japan $50M Other $65M Asia Latin America
Slide 75: If International had Similar Diagnostic Spend per Pet, it would be ~1.7x the U.S.
If International had Similar Diagnostic Spend per Pet, it would be ~1.7x the U.S. 2014 Estimated Companion Animal Diagnostic Market Size & Pet Ownership (market size in $B USD, number of animals in millions) United States International Market $3.4B Diagnostic market potential 136M 119M Current Diagn
Slide 76: International Growth Strategy Focused on Driving CAG Recurring Revenues
International Growth Strategy Focused on Driving CAG Recurring Revenues International CAG Revenue IDEXX CAG Growth Drivers 1. Increased client visits Other Instrument 2. Adoption of diagnostic Consumables protocols to increase utilization Rapid Assay 3. Analyzer placements 4. Expansion of IDEXX refe
Slide 77: Overall Positive Trends for Client Visits Across Major Markets for 2013-14
Overall Positive Trends for Client Visits Across Major Markets for 2013-14 Percent of respondents 90% 89% 85% 79% No 25 35 change 37 31 59% 32 Client 64 visits Up 55 48 48 27 0 USA UK France Germany Italy © 2015 IDEXX Laboratories, Inc. All rights reserved. Source: IDEXX market research – October 20
Slide 78: Adoption of Diagnostic Protocols To Increase Utilization
Adoption of Diagnostic Protocols To Increase Utilization 1990’s 2000’s “Ain’t Sick Doing Pre- Patient Senior Preventative U.S. Right” Anesthetic monitoring Care Care Animal Journey (ADR) Testing Medical Rationale reinforced by need for patient diagnostic baseline using VC+ International Regions Toda
Slide 79: Growing Diagnostic Utilization Begins with Education
Growing Diagnostic Utilization Begins with Education Investing to Educate on the Importance of Diagnostic Information to Pet & Practice Health, thus Improving the Standard of Care Seminars with Key Online Learning Staff Trainings with Veterinary Student Opinion Leader Center IDEXX Veterinarians Days
Slide 80: Higher Chemistry Analyzer Placements Across International
Higher Chemistry Analyzer Placements Across International Chemistry analyzer placements outside U.S. ~4,000 2,908 2,450 VetTest® ~90% 40% growth Catalyst® growth 2013 2014 2015E 2013 2014 2015F © 2015 IDEXX Laboratories, Inc. All rights reserved. 80
Slide 81: Over 60,000 Catalyst One Placement Opportunities Outside the U.S.
Over 60,000 Catalyst One® Placement Opportunities Outside the U.S. Number of Clinics – Grouped by Chemistry Analyzer Ownership ~45,000 Clinics Greenfield Includes ~15,000 (no analyzer) VetTests 106,000 Competitor Analyzer IDEXX Chemistry Potential IDEXX Not a potential Total Customer Chemistry Custo
Slide 82: Extending our Reference Lab Offering Into Additional Markets
Extending our Reference Lab Offering Into Additional Markets • Ref lab services across North America, Europe, South Africa, Japan, Korea, Australia • Leipzig (Germany) reference laboratory servicing 10 countries across EU • Extending service into new markets • Recently acquired labs in Finland, Swit
Slide 83: SDMA Kidney Function Test will be Transformative Worldwide
SDMA Kidney Function Test will be Transformative Worldwide 1. Working with Regional Key Opinion Leader & Specialists 2. Introducing into IDEXX reference lab profiles at no incremental charge Australian Customer Quote Sent: Thursday, 25 June 2015 1:18 PM Subject: SDMA event Hi Scott, I wanted to than
Slide 84: IDEXX Animana - Cloud-Based Practice Management Software in Europe
IDEXX Animana - The Leading Cloud-Based Practice Management Software in Europe • Complete feature set • Data integration with IDEXX diagnostics including VetConnect PLUS • Enables deeper IDEXX relationship with clinic owner • Translated in Dutch, English, German, French, Swedish, Turkish, Polish • M
Slide 85: Growing IDEXX Commercial Presence Outside U.S.
Growing IDEXX Commercial Presence Outside U.S. Direct Sales Force Both Direct & Distributor Sales Force Distributor Sales Force © 2015 IDEXX Laboratories, Inc. All rights reserved. 85
Slide 86: China Expansion
China Expansion Number of animals - 2 % of households own a pet Dogs 4.5M China Brazil Cats 2.0M ~3,000 clinics Dairy Cows 7M Swine 750M Poultry 6500M ~40 China Revenues ($Mill) Adjusted to 2015 Fx rates 16 2 2005 2010 2015E © 2015 IDEXX Laboratories, Inc. All rights reserved. 86
Slide 87: New Zealand Expansion
New Zealand Expansion Number of animals - 68% of households own a pet Dogs 700K Cats 1.4M Dairy Cattle 6.4M Beef Cattle 3.7M New Zealand Revenues ($Mill) ~14 Adjusted to 2015 Fx rates ~8 4 3 2013 2014 2015E 2016E © 2015 IDEXX Laboratories, Inc. All rights reserved. 87
Slide 88: IDEXX Bovine Pregnancy Testing – A $250Million Market Opportunity
IDEXX Bovine Pregnancy Testing – A $250Million Market Opportunity 200-300 M Open Cow Tests Benefits of Blood & Milk Tests for ~$500 M Open Cow Detection • Detect open cows earlier Manual Check • Increase fertility rates through Information Market management 2-3 tests per animal • Improve cow comfort
Slide 89: Driving Towards a $1Billion International Business
Driving Towards a $1Billion International Business Normalized CAG Diagnostics Recurring Organic Revenue Growth Accelerate international growth Rate9 13% 1. Expanding customer base 11% 8% 2. Growing diagnostic utilization 3. Strengthening our International Organization 2012 10 2013 10 2014 10 9,10Non
Slide 92: Footnotes
Footnotes 1Cash R&D investment is a non-GAAP financial measure and represents reported R&D expense plus capital investment in information technology based services (VetConnect® Plus, Pet Health Network® Pro, IDEXX SmartService™, etc.) and research equipment, less related depreciation on capital inve

IDEXX Laboratories — Investor Day (August 2015) on 6ix

IDEXX Laboratories — Investor Day (August 2015)

Slide 1: Analyst Day August 6, 2015

Slide 2: Safe Harbor Disclaimer

Slide 3: IDEXX Innovation

Slide 4: IDEXX's Innovation Investment

Slide 5: Revenue growth from new products launched

Slide 6: Henry Ford quote on innovation

Slide 7: Innovation is in our DNA

Slide 8: Helping Pets Live Long, Healthy Lives

Slide 9: Consistent Double-Digit U.S. Ref Lab Revenue Growth

Slide 10: Level of Product Innovation in 2015 is Unprecedented

Slide 11: Breakthrough Innovation: SDMA Kidney Function Test

Slide 12: SDMA is Earlier than Creatinine in Diagnosing Kidney Function Loss

Slide 13: Chronic Kidney Disease is Treatable

Slide 14: Flawless N.A. Product Launch

Slide 15: Highly Engaged Renal Experts

Slide 16: SDMA Integrated into IRIS Staging Guidelines

Slide 17: SDMA is Finding Kidney Disease Earlier Than Creatinine

Slide 18: Customers Understand SDMA

Slide 19: A New Standard of Care for Routine Chemistry Testing

Slide 20: SDMA Will Have a Revenue Multiplier Effect

Slide 21: Multi-Year Trend of Improving Customer Defection

Slide 22: SDMA Will Drive Higher Chem Testing at IDEXX

Slide 23: Ref Lab Chemistry Test Spending

Slide 24: SDMA Changes Chem Testing Economics

Slide 25: SDMA is a $200M Revenue Opportunity

Slide 26: Introducing SNAP Lepto

Slide 27: IDEXX Reference Lab - Fecal Antigen Panels

Slide 28: Highest Sensitivity for Detecting Fecal Parasites

Slide 29: Fecal Antigen Testing

Slide 30: SNAP Fecal Antigen is Coming in H2 2017

Slide 31: Fecal Ag Franchise Expected to Reach $100M by 2020

Slide 32: Rapid Innovation in Response to New Threats

Slide 33: VetConnect Plus Enhancements in 2015

Slide 34: IDEXX SediVue Dx: Launching Q1 2016

Slide 35: SediVue Dx

Slide 36: Meet the New Standard for the In-clinic Laboratory

Slide 37: Creating Value With First-And-Only Solutions

Slide 38: Thank You

Slide 39: We will be taking a 30 minute break

Slide 40: Analyst Day August 6, 2015

Slide 41: Safe Harbor Disclaimer

Slide 42: Diagnostics Foundational and Growing in Importance

Slide 43: The 2014 U.S. Diagnostics Market Represents about $2B, Projected to Grow 9%

Slide 44: 14% of Practices Have >20% of Their Revenue from Diagnostics

Slide 45: New Category Creation Represent Large, New Markets for IDEXX

Slide 46: A Commercial Model Aligned with Our Innovation Pipeline

Slide 47: Our Commercial Approach is Customer Centric and Grounded in Diagnostic Expertise

Slide 48: Largest Companion Animal Commercial Organization in the U.S.

Slide 49: The U.S. Commercial Team Maturing Rapidly

Slide 50: Professional Service Veterinarians Are a Key Element of Our Commercial Effectiveness

Slide 51: Balancing Innovation with Commercial Strength … Successful SDMA Launch

Slide 52: SDMA Opening Doors, Becoming Indispensable

Slide 53: Our On-Line Store Has Been Quickly Adopted

Slide 54: Commercial Focus Continues to Be on Growing the Catalyst Customer Base

Slide 55: Catalyst One is the "Gold Standard" in Chemistry

Slide 56: Catalyst One, SDMA Have Universal Appeal for All Practices

Slide 57: SNAP is the Trusted Brand

Slide 58: Customers Value Accuracy Above All

Slide 59: Head-to-Head Clinical Studies Support SNAP's Superior Sensitivity

Slide 60: Our Message is Resonating with Customers

Slide 61: Information Where and When Veterinarians Want It

Slide 62: VetConnect PLUS

Slide 63: Radiology Images are also now available in VetConnect PLUS

Slide 64: Why is 2-Way Integration So Valued by Our Customers?

Slide 65: What is 2-Way Integration? Why is it unique to IDEXX?

Slide 66: Our Competition: A One-way Street of 'Connectivity'

Slide 67: We're Excited About Our Future

Slide 68: We will be taking a 15 minute break

Slide 69: Analyst Day August 6, 2015

Slide 70: Safe Harbor Disclaimer

Slide 71: Overview of IDEXX International Operations

Slide 72: CAG is Our Largest and Fastest Growing International Business

Slide 73: There are 3X More Potential Veterinary Practice Customers Outside North America

Slide 74: Current International CAG Market is 1/2 the Size of the U.S.

Slide 75: If International had Similar Diagnostic Spend per Pet, it would be ~1.7x the U.S.

Slide 76: International Growth Strategy Focused on Driving CAG Recurring Revenues

Slide 77: Overall Positive Trends for Client Visits Across Major Markets for 2013-14

Slide 78: Adoption of Diagnostic Protocols To Increase Utilization

Slide 79: Growing Diagnostic Utilization Begins with Education