Idexx Laboratories, Inc. · NASDAQ:IDXX

Idexx Laboratories — Investor Day (August 2023)

148 slides from Idexx Laboratories's investor day presentation, Aug 10, 2023

Slide 1: IDEXX Laboratories, Inc. Investor Day
IDEXX Laboratories, Inc. Investor Day August 10, 2023
Slide 2: Opportunity and Strategy Overview
IDEXX Opportunity and Strategy Overview Jay Mazelsky President and Chief Executive Officer IDEXX Investor Day I August 10, 2023
Slide 3: 2023 IDEXX Investor Day Agenda
2023 IDEXX Investor Day Agenda Time Event Length 8:00 - 8:05 am Welcome and Introductions 5 min  Jay Mazelsky, President and Chief Executive Officer 8:05 - 9:05 am IDEXX Business Overview and Strategy  Jay Mazelsky – Opportunity and Strategy 40 min  Tina Hunt, PhD – Strategy and Sector Developmen
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 concerning
Slide 5: Enabling Companion Animal Healthcare through Innovation, Clinical Insights and Customer Engagement
Enabling Companion Animal Healthcare through Innovation, Clinical Insights and Customer Engagement  Decades+ opportunity to increase standard of care with ~$45 billion TAM  Innovation in integrated diagnostic and software solutions that transforms healthcare delivery  Global commercial capability
Slide 6: Our Purpose
Our Purpose To be a great company that creates exceptional long-term value for our customers, employees, and shareholders by enhancing the health and well-being of pets, people, and livestock. Guiding Principles Achieve and sustain leadership Exceed the Innovate with expectation intelligence of our
Slide 7: High Long-term Revenue Growth Supported by Consistent Strategy
High Long-term Revenue Growth Supported by Consistent Strategy Yielding Strong Gains in CAG Diagnostics Recurring Revenue IDEXX Revenue and Normalized Organic Revenue CAGRs ($B)4 $3.4B Sustained Strong Growth 12% CAGR Other  Dx Innovation in platforms, Revenue $2.4B menu and integrated software 11%
Slide 8: Pet Healthcare has Strong Long-term Tailwinds
Pet Healthcare has Strong Long-term Tailwinds Expanding pet Pets are living longer Demographics and Innovation and population and care expectations strengthening expanding care delivery are expanding pet–parent bond channels 8 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 9: IDEXX has Demonstrated Resilience in Times of Economic Uncertainty
IDEXX has Demonstrated Resilience in Times of Economic Uncertainty Year-over-year Growth IDEXX WW CAG Normalized IDEXX WW CAG Diagnostics Normalized Organic Revenue 1,4 Organic Recurring Revenue 1,2,4 Total Personal Consumption Expenditure* * 2002 through H1’23 based on data from Bureau of Economic
Slide 10: Pet Owners have a Deep Emotional Connection with their Pets
Pet Owners have a Deep Emotional Connection with their Pets 88% Pet has a positive impact on my mental health and well-being 84% Taking care of my pet’s health is as important as 91% taking care of my own health Pet has a positive impact on my physical health and well-being 85% Would reduce their pe
Slide 11: Pet Owners are Willing to Make Financial Tradeoffs to Care for their Pets
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: 91% 70% eating out video streaming services 78% 89% personal live grooming entertainment services Source: Based on U.S. pet parent resp
Slide 12: $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 Pacific 2% Region Latin America $7B Region * Total addressable com
Slide 13: Global Opportunity to Increase Standards of Care
Global Opportunity to Increase Standards of Care United States International 10%-20% 25%-35% Wellness 80%-90% Non- 65%-75% wellness Source: U.S. estimates based on IDEXX Practice Intelligence data; sample of ~9,000 practices representing six different practice information management systems, weighte
Slide 14: Medical Services are Expanding Driven by High-growth Diagnostics
Medical Services are Expanding Driven by High-growth Diagnostics Average U.S. Revenue per Practice by Segment* ($M) Total U.S. Segment CAGR %*** 2010 – 2015 2015 – 2022 $1.9M Total 5.5% 8% Product  Other Product 4% 3.5%  Pharma & 5.5% 8% $1.2M Vaccines** $1.0M Medical Services 5% 8.5% (excl. diagn
Slide 15: Diagnostics Drive Medical Services and Expand Practice Profitability
Diagnostics Drive Medical Services and Expand Practice Profitability 2022 Typical U.S. General Practice Estimated Profile Revenue Breakdown EBITDA Breakdown EBITDA Margin % Pharma Vaccines Diagnostics Nutrition 17% 28% 45% Medical Services Highly durable Drives broader care envelope Highest contribu
Slide 16: Step-up in Pet Population Expected to have Long-term Benefits
Step-up in Pet Population Expected to have Long-term Benefits U.S. Pet Population 2022 Average Diagnostic Revenue and Annual Growth* per Active Patient by Age Segment** Historic Trend +4% +2% +6% ~ 1% 2019 2020 2021 2022 Puppies & Kittens Young Adult Senior Geriatric (Less than 1 year) (1 to 3 years
Slide 17: Practices are Increasing the Standard of Care with Significant Opportunity Remaining
Practices are Increasing the Standard of Care with Significant Opportunity Remaining for Adoption and Bloodwork Utilization Average Percentage of Clinical Visits % of 2022 Clinical Visits with Diagnostics* (%) including Bloodwork** 2023 40% 2022 +70 bps Mean: 2019 19% +30 bps 2016 +50 bps Average Av
Slide 18: IDEXX Fully-integrated Multi-modality Diagnostic and Software Solutions
IDEXX Fully-integrated Multi-modality Diagnostic and Software Solutions Raise Standards of Care Electronic Medical Records Metrics and Insights Pet Owner Engagement Clinical Workflow 18 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 19: IDEXX Innovation and Customer Engagement Support Global CAG Sector Development
IDEXX Innovation and Customer Engagement Support Global CAG Sector Development IDEXX Cumulative R&D Investment ($M, calendar years shown) Instrument Platform 40% Development Differentiated 30% Assay Development 70% – 80% New Product 30% 20% – 30% Customer-facing Software, Data Lifecycle and Connecti
Slide 20: New Point of Care Testing Categories Extend IDEXX Platform Innovation
New Point of Care Testing Categories Extend IDEXX Platform Innovation VMX 2024 Catalyst One ProCyte One SediVue Dx® New Platform Expanding Menu Trusted Accuracy Ease of Use End-to-end Integration Technology for Life Reference lab quality Intuitive, load and go Workflow optimization 20 © 2023 IDEXX L
Slide 21: Point of Care Platforms Build Layers of Diagnostics Annuity Value
Point of Care Platforms Build Layers of Diagnostics Annuity Value Direct Benefits Solving unmet needs supports attractive instrument and consumable economics Platform Extensibility Technology for Life innovation drives economic value expansion Multiplier Benefits 1 2 CAG Dx utilization growth and cu
Slide 22: IDEXX 360 has Global Appeal
IDEXX 360 has Global Appeal Customers Grow Diagnostics Utilization and Improve Standards 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 2023 2
Slide 23: Point of Care Solutions Offer Significant Growth Potential
Point of Care Solutions Offer Significant Growth Potential Global IDEXX Premium Instrument Global Incremental IDEXX Premium Instrument Installed Base* Placement Opportunity** 38k 218k 100k 122k Urinalysis 80k Hematology 29k International Chemistry U.S. 2013 2022 Catalyst ProCyte SediVue Dx Total Pla
Slide 24: Testing Begets Testing
Testing Begets Testing Practices with higher bloodwork utilization in-house have higher utilization at reference labs Percentage of 2022 U.S. Clinical Visits Including a Chemistry Panel by Practice Decile 35% Best Demonstrated Utilization 28% Over 2x the Ref Lab average 15% Overall Mean 3% In-House
Slide 25: Veterinary Practices Engaged with IDEXX Grow Clinical and Diagnostic Revenue Faster
Veterinary Practices Engaged with IDEXX Grow Clinical and Diagnostic Revenue Faster Key Growth Metrics: 2017 – 2022 CAGR per Practice (%) Average Diagnostic Revenue Average Clinical Revenue Average Clinical Visits per Practice per Practice per Practice IDEXX-engaged Practices (n = 440) Unengaged Pra
Slide 26: Integrated Multi-modality Model Enables Flexibility for Customers
Integrated Multi-modality Model Enables Flexibility for Customers More and more practices choose IDEXX across modalities 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 VetLa
Slide 27: A Growing Number of New Practices Adopt IDEXX Technology
A Growing Number of New Practices Adopt IDEXX Technology Number of IDEXX 360 New Practice Program Customers in North America No upfront costs or lease required ~ 400 No commitment 4x in year 1 ~ 90 * 2023E aligned to midpoint of guidance range communicated on August 1, 2023. Please refer to our Safe
Slide 28: IDEXX Software Supports Higher Customer Engagement and Growth
IDEXX Software Supports Higher Customer Engagement and Growth Average IDEXX Diagnostic Revenue per Engaged Practice in North America* (Trailing 12 months ended June 30, 2023) +58% +24% VetConnect PLUS® Power Mobile User ezyVet ® ezyVet ® Non-IDEXX PIMS * Engaged Practices defined as IDEXX customers
Slide 29: IDEXX CAG Diagnostics Recurring Revenue Growth has Outpaced Practice and Sector Diagnostics Growth
IDEXX CAG Diagnostics Recurring Revenue Growth has Outpaced Practice and Sector Diagnostics Growth IDEXX U.S. CAG Dx Organic Recurring Revenue Growth3 and U.S. Revenue Growth per Practice* (2017 – 2022 CAGR) Clinical Visits Total Revenue Clinical Revenue Diagnostics Revenue IDEXX CAG Dx Per Practice
Slide 30: Our Customers Grow Faster When We Call on Them
Our Customers Grow Faster When We Call on Them H1 2023 Year-Over-Year Average Quarterly Growth in CAG Revenue (%)* Commercial Country A Country B Country C Expansion Loyal IDEXX Customers Competitive 93% 110% 91% Practices** Customers Called On Customers Not Called On * Revenue Growth Methodology: c
Slide 31: Commercial Expansions Develop Global Opportunity and Support New Product Introductions
Commercial Expansions Develop Global Opportunity and Support New Product Introductions 2023 2022 2021 United Brazil Italy Germany France States Japan Spain South Korea Sales Operations Global Commercial Systems Education & Training Marketing Global Customer Support 31 © 2023 IDEXX Laboratories, Inc.
Slide 32: IDEXX Brand has Continued World-class Customer Advocacy
IDEXX Brand has Continued World-class Customer Advocacy and High Loyalty Across Our Diagnostic Portfolio U.S. Net Promoter Score World-class = 50 IDEXX Other Companies Reference Lab In-house In-house Rapid Assay Chemistry Hematology Source: Double-blind primary research study conducted in April – Ma
Slide 33: High Customer Retention Enables Our Durable CAG Recurring Annuity
High Customer Retention Enables Our Durable CAG Recurring Annuity Annual U.S. Customer Revenue Retention Rates Catalyst® Consumables Reference Lab SNAP® VBD* * Includes Canine SNAP vector borne disease products. 33 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 34: Strong Trends Point to Sustained High Long-term Diagnostics Sector Growth Potential
Strong Trends and Increasing Standards of Care Point to Sustained High Long-term Diagnostics Sector Growth Potential Estimated Total Worldwide Companion Animal Diagnostics Spending ($M)* 9%+ Implied CAGR Base Case Scenario: CAGR 2022 - 2047 Continuation of past 10-year diagnostic utilization increas
Slide 35: 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 long-term tailwinds  Driven by IDEXX’s differentiated innovation and commercial engagement model  Generating strong long-term financial returns
Slide 37: Strategy and Sector Development
Strategy and Sector Development Tina Hunt, PhD Executive Vice President IDEXX Investor Day I August 10, 2023
Slide 38: The Pet Population Continues to Grow Faster than Historical Rates
The Pet Population Continues to Grow Faster than Historical Rates U.S. Average Annual Net Increase in Pet Population* +2% +4% +6% ~ 1% 2010 to 2019 2020 2021 2022 * Based on modeling of dog and cat population growth leveraging analyses of multiple data sources. 38 © 2023 IDEXX Laboratories, Inc. All
Slide 39: Younger People are Driving This Increase, and Believe in Diagnostics
Younger People are Driving This Increase, and Believe in Diagnostics Gen Z Millennials Gen X Baby Boomers (Up to 25 years) (26 years to 41 years) (42 years to 57 years) (58 years to 76 years) 42% 31% 13% % Dog Parents with Canines less than 2 years old 43% 85% 81% 76% 66% % Pet Parents who Agree to
Slide 40: Spending on Pet Healthcare and Diagnostics Grows as Pets Age
Spending on Pet Healthcare and Diagnostics Grows as Pets Age Average Practice Revenue Per Active Patient by Age Segment* % Spend on Diagnostics Other Revenue Diagnostics Puppies & Kittens Young Adult Senior Geriatric (Less than 1 year) (1 year to 3 years) (4 years to 7 years) (8 years to 11 years) (
Slide 41: Pets are Living Longer
Pets are Living Longer Average Patient Lifespan 2010 – 2022* + 17% increase in lifetime diagnostic spend per patient** 14.0 +1.7 years 14% 12.9 +1.4 years 12% * Based on an analysis of IDEXX Practice Intelligence data from 2.5 million canine and feline patients with recorded deaths from 2010 through
Slide 42: Bloodwork Inclusion is Increasing with Ample Runway for Growth
Bloodwork Inclusion is Increasing with Ample Runway for Growth % of Clinical Visits % of 2022 Clinical Visits including Bloodwork including Bloodwork +0.5% + 1% per year 40% +0.5% per year Mean: 19% Bottom Top Top Decile Decile 2% 2010 2019 2020 2021 2022 Deciles of Practices Source: Based on an ana
Slide 43: IDEXX Continues to Drive Expansion of Non-Wellness Diagnostics
IDEXX Continues to Drive Expansion of Non-Wellness Diagnostics % of 2022 Non-Wellness Visits including Bloodwork 44% Innovative offerings expand test menu and diagnostic utilization, and facilitate clinical decisions for optimum pet health outcomes • Renal Disease Mean: • Oncology 25% • Fecal Antige
Slide 44: Preventive Care Testing, Especially for Younger Pets, is a Key Focus
Preventive Care Testing, Especially for Younger Pets, is a Key Focus % of 2022 Wellness Visits % Wellness Patients % Overall including Bloodwork* with Bloodwork* Wellness Patients** 45% Puppies & Kittens 3% 12% (Less than 1 year) Young 7% 23% (1 to 3 years) Adult 11% 28% (4 to 7 years) Mean: Senior
Slide 45: Preventive Care Testing is Relevant to All Patients and Ages
Preventive Care Testing is Relevant to All Patients and Ages Likelihood of Clinically Relevant Abnormalities* on Preventive Care Lab Work in Dogs Findings on Chemistry with IDEXX SDMA, IDEXX CBC, and Urinalysis 69% 58% 50% more 2 in 5 49% findings with Urinalysis 40% 33% 1 in 5 29% 1 in 7 18% 18% 21
Slide 46: The Opportunity to Increase Diagnostics Utilization is Global
The Opportunity to Increase Diagnostics Utilization is Global 2022 Estimated Diagnostic Revenue per Companion Animal Practice Relative to the U.S.* Top 15 Countries in terms of Diagnostic Segment Revenue Next 14 Countries in Terms of Total Diagnostic Segment Revenue *Revenue per country estimated at
Slide 47: IDEXX is Developing the Diagnostic Sector with Evidence-based Studies
IDEXX is Developing the Diagnostic Sector with Evidence-based Studies North America Reference Lab U.S. DOGPARCS Study* Fecal Testing Volume 85% of dog parks 1 in 5 tested positive for an dogs tested positive for intestinal parasite an intestinal parasite Panels with IDEXX Fecal Antigens Europe DOGWA
Slide 48: KOL Endorsements Play a Key Role in These Efforts
KOL Endorsements Play a Key Role in These Efforts IDEXX Renal Innovation Cystatin B Kidney injury IDEXX biomarker DecisionIQ™ introduction New Catalyst IRIS CKD Staging SDMA Guidelines In-House Profiles Improved workflow with SDMA and storage with Persistence Study Introduction of Chem single slide
Slide 49: We Inspire Belief Journey through Extensive Customer Education
We Inspire Belief Journey through Extensive Customer Education $4 Value of continuing education (CE) offering in million the U.S.* 100k CE credits earned in the U.S. Countries with active IDEXX 32 Learning Center user base Ways to learn  IDEXX Professional Service Veterinarians  IDEXX Online Learn
Slide 50: Multiple Drivers Point Toward Underserved Long-term Demand
Multiple Drivers Point Toward Underserved Long-term Demand Record number of households with new pets Demand for veterinary care remains high Clinics are focused on balancing personal and professional needs of their staff Clinic hours of operation are stabilizing Opportunity to increase productivity
Slide 51: U.S. Clinical Visits in 2022 are Well Above 2018 Baseline
U.S. Clinical Visits in 2022 are Well Above 2018 Baseline CAGR Average Annual Clinical Visits per Practice* 2018 - 2022 +460 -170 ~3% +250 +180 *Analysis based on IDEXX Practice Intelligence data (n = ~9,000 practices), weighted to be representative of the U.S based on practice size and region. 51 ©
Slide 52: Demand Remains Strong Across Geographies, Constraining Access to Veterinary Care
Demand Remains Strong Across Geographies, Constraining Access to Veterinary Care % Pet Parents who find it increasingly 1 in 3 difficult to obtain veterinary care* Pet Parents find it 29% more difficult to obtain veterinary care today 27% 30% * Indicates the percentage of pet parents who ‘Strongly’
Slide 53: Clinics are Adding Staff, but Productivity Opportunities Remain
Clinics are Adding Staff, but Productivity Opportunities Remain All Employees Veterinary Services* Indexed Number of Persons Employed in Sector *U.S. Bureau of Labor Statistics data. 53 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 54: We are Influencing Industry Change with Practical Resources to Increase Clinic Productivity
We are Influencing Industry Change with Practical Resources to Increase Clinic Productivity Share Data-Driven Insights Inspire Change with Actionable Playbooks Partner to Support Implementation Measure, Refine and Evolve 54 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 55: IDEXX Technology Solutions Support Practice Workflow and Productivity
IDEXX Technology Solutions Support Practice Workflow and Productivity Practice Workflow Tools Pet Owner Engagement VetConnect PLUS IDEXX DecisionIQ™ …increase staff …automates pet owner …simplifies workflow; …facilitates confident productivity and reduce communications enables fast, effective and in
Slide 56: Strong Sector Tailwinds Underpin Decades-long Growth Runway
Strong Sector Tailwinds Underpin Decades-long Growth Runway • Longer lifespans and a growing pet population • Pet-parent demographics moving to younger generations with stronger pet health focus • Significant sector development runway supported by IDEXX innovations, commercial engagement, and educat
Slide 59: IDEXX Point of Care Diagnostics
IDEXX Point of Care Diagnostics Mike Erickson, PhD Senior Vice President and General Manager IDEXX Investor Day I August 10, 2023 59 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 60: Executing Globally to Support Customers at the Point of Care
Executing Globally to Support Customers at the Point of Care  Real-time care workflow  Trusted accuracy  Technology for Life  End-to-end integration 60 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 61: IDEXX Real-time Care Workflow – Load and Go, Results in ~10 Minutes
IDEXX Real-time Care Workflow – Load and Go, Results in ~10 Minutes Check-in Exam Diagnostics Results & Plan Check-out 2:00 pm 2:05 pm 2:11 pm 2:21 pm 2:27 pm ~10 minutes 61 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 62: Record Premium Instrument Placements Worldwide
Record Premium Instrument Placements Worldwide Worldwide Premium Instrument Placements*  Consistent placement 19k growth off record levels 13% CAGR Urinalysis 2010 - 2022  2/3 of placements in international regions in 2022 Hematology  ProCyte One installed base ~10,800 4k  Growth across platform
Slide 63: Long-term Durable Recurring Revenue Growth
Long-term Durable Recurring Revenue Growth Global IDEXX VetLab Consumables Recurring Revenue and Organic Revenue Growth3 ~16% CAGR ~16% CAGR 3 Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. 63 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 64: Purpose-built Platforms Meet Strict Veterinary Performance Requirements
Purpose-built Platforms Meet Strict Veterinary Performance Requirements “ProCyte One is pure joy!” Multi-disciplinary Technical + Scientific + Delivery Expertise Assay Instrument Data Science Workflow Manu- Medical Development Development and Software Optimization facturing Science 64 © 2023 IDEXX L
Slide 65: Technology for Life: Delivering a Cadence of New Menu
Technology for Life: Delivering a Cadence of New Menu 2010 2014 2016 2017 2018 2019 2020 2022 Future Phenobarbital Total T4 CRP IDEXX SDMA Progesterone Bile Acids New Catalyst Seizures Thyroid Inflammation Kidney Reproduction Liver SDMA Kidney Catalyst One® IDEXX SDMA-TT4 Thyroid/Kidney Fructosamine
Slide 66: Inspiring Customers with IDEXX SDMA on Catalyst
Inspiring Customers with IDEXX SDMA on Catalyst IDEXX SDMA Inclusion in North America Chemistry Panels Catalyst SDMA Slide Runs** 100% 30% IDEXX Catalyst Reference SDMA* Labs * Based on SDMA in-clinic volumes as of Q2 2023 for practices in North America, excluding certain corporate groups. **Reflect
Slide 67: New Menu Expands Clinical Utility and Economic Value
New Menu Expands Clinical Utility and Economic Value New menu on Catalyst contributed to more than doubling analyzer Economic Value*  New Menu  Utilization  Price 2014 2022 *Instrument Economic Value (EV) = forward looking 7-year cumulative gross profit (pre-tax) for each new analyzer and every a
Slide 68: Designed and Built to Function as an Integral Part of IDEXX's Fully Integrated Dx Ecosystem
Designed and Built to Function as an Integral Part of IDEXX’s Fully Integrated Dx Ecosystem Electronic Medical Records Metrics and Insights Pet Owner Engagement Clinical Workflow 68 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 69: Expanding Real-time Insights Available at the Point of Care
Expanding Real-time Insights Available at the Point of Care VMX 2024 Catalyst One ProCyte One SediVue Dx® New Platform New Platform Expanding Menu Trusted Accuracy Ease of Use End-to-end Integration Technology for Life Reference lab quality Intuitive, load and go Workflow optimization 69 © 2023 IDEX
Slide 70: New Platform Diagnostics Annuity Grows Over Time
New Platform Diagnostics Annuity Grows Over Time Worldwide SediVue Dx® Installed Base Worldwide SediVue Dx® Revenue 15.6K Recurring Instrument 2016 2017 2018 2019 2020 2021 2022 70 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 71: New Platforms Support Multiplier Benefits to CAG Diagnostics Growth
New Platforms Support Multiplier Benefits to CAG Diagnostics Growth SediVue Dx® Expanded Urinalysis Category SediVue Dx® Customers Have Faster Dx Growth U.S. Urinalysis Volumes* Diagnostic Recurring Revenue growth in U.S. practices with vs. without SediVue** SediVue Growth 3X Dx Total CAG Dx Multipl
Slide 72: Platform Data Streams Power Smarter Interpretation Algorithms
Platform Data Streams Power Smarter Interpretation Algorithms >16,000 1.2B images Customers Worldwide 800M images 350M Huge number of images 175M powers SediVue AI and more advanced results IMAGES 14M 70M 0.5M interpretation algorithms 72 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 74: IDEXX SNAP is the Trusted Standard for Rapid Testing
IDEXX SNAP® is the Trusted Standard for Rapid Testing Global Rapid Assay Products Recurring Revenue and Organic Revenue Growth3 ~11% Superior Accuracy CAGR ~7% CAGR End-to-end Solution High Advocacy NPS = 80* 3 Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. * Double-
Slide 75: Customers Value IDEXX SNAP as an End-to-end Solution
Customers Value IDEXX SNAP® as an End-to-end Solution Superior Accuracy SNAP Pro® Analyzer Fully Integrated IDEXX DecisionIQ™ IDEXX SmartService™ >350 48,000+ $70M+ >2.5x peer reviewed publications FTE days saved annually incremental charges more likely to complete for practices captured annually fo
Slide 76: Significant Opportunity to Grow as Disease Expands Geographically
Significant Opportunity to Grow as Disease Expands Geographically 2022 U.S. Canine Vector-borne Disease Screening Geographic Spread of Disease 2010 100% Lyme disease Heartworm ~ 99 million Anaplasmosis Ehrlichiosis 69% ~ 68 million 47% Heartworm 2022 ~ 46 million 17% only Full screen 21% ~20 million
Slide 77: Long Runway for Diagnostics Growth and Innovation at the Point of Care
Long Runway for Diagnostics Growth and Innovation at the Point of Care  Elevating the standard for point of care diagnostics with customers around the world  Generating long-term value for customers and IDEXX  Tremendous runway for continued growth and innovation across existing and new platforms
Slide 79: 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 10, 2023
Slide 80: Global Laboratory and Medical Consultant Network
Global Laboratory and Medical Consultant Network 30 years of cumulative investment in capability 80+ ~65K Reference Lab Locations Customers Served ~$1.2B 2022 Revenue ~ 7M 7 24/7/365 Courier Stops Service to Customers Global Lab Information IDEXX Medical Powerful Integrated Management System Consult
Slide 81: Technology-enabled Diagnostic Services Platform
Technology-enabled VetConnect PLUS® + Diagnostic Services IDEXX DecisionIQ™ Platform  World-class digital experience for veterinarians, staff and pet parents  Clinical insights and next-step considerations with IDEXX DecisionIQTM  Practice efficiency with seamless end-to-end digital workflows  P
Slide 82: Customers Appreciate the Value of VetConnect PLUS
Customers Appreciate the Value of VetConnect PLUS Evidenced by Higher Loyalty and Diagnostic Growth VetConnect PLUS® Net Promoter Score* (NPS) 61 World-class = 50 GROWTH** LOYALTY*** 2X 6X *Double-blind primary research study conducted in April-May 2023 (VetConnect Plus Users n = 441, Question: How
Slide 83: Extensive Menu of Differentiated Diagnostics and Consulting Services
Extensive Menu of Differentiated Diagnostics and Consulting Services Cancer Diagnostics  IDEXX Cancer Pathology & Radiology Renal  FidoCure DNA Sequencing (‘22)  IDEXX SDMA ®  OncoK9 Liquid Biopsy (‘22)  IDEXX FGF-23 (‘22)  Nu.Q Canine Cancer Screen (’23)  IDEXX Cystatin B (‘23) Microbiology
Slide 84: Significant Breadth and Depth Opportunities Across Dx Categories
Significant “Breadth and Depth” Opportunities Across Dx Categories Number of U.S. IDEXX Reference Lab Customers by Diagnostic Category in Q1 2023 (Thousands of Practices) Medical Consulting Services Total IDEXX Chemistry Immunology Hematology Urinalysis Parasitology Microbiology Molecular Anatomic C
Slide 85: IDEXX Board Certified Experts are an Extension of Customers' Care Team
IDEXX Board Certified Experts are an Extension of Customers’ Care Team Anatomic Pathology Teleradiology Clinical Pathology Cardiology Internal Medicine Over 700 IDEXX Medical Specialists Serve as a Direct Extension of Veterinary Practices* * IDEXX specialist network includes IDEXX employees and cont
Slide 86: End-to-end Oncology Solution Provides Case Clarity and Elevates Care
End-to-end Oncology Solution Provides Case Clarity and Elevates Care Reference Lab Services Clinical and Anatomic Pathology Diagnostic Imaging Digital Cytology Web PACS™ and Radiologist Consultation 1.5 Million 24/7/365 Cancer Cases Submitted Annually* Medical Consultation Point of Care Dx Tests CBC
Slide 87: IDEXX Fecal Dx Antigen Finds What the Microscope Misses
IDEXX Fecal Dx Antigen Finds What the Microscope Misses Uncovers More 5x IDEXX Fecal Dx® Antigen Panel Parasitic Infections* Enhanced with Flea Tapeworm Tapeworm Whipworm Hookworm Roundworm 2x Tapeworm More Today + Hookworm Roundworm  Over 50K** pets have benefitted from antigen Whipworm detection
Slide 88: 2 Million Pets Will Benefit from Novel IDEXX Cystatin B Test in 1st Year
2 Million Pets Will Benefit from Novel IDEXX Cystatin B Test in 1st Year 1/3 of Kidney Cases Relate to Kidney Injury* Cystatin B Detects Kidney Injury from:  Toxin Exposure  Injury from NSAIDs  Kidney Disease Progression  Hypotensive Episode  Shock Event Added to non-wellness diagnostic panels
Slide 89: IDEXX Cystatin B Expands Most Comprehensive Renal Testing Portfolio
IDEXX Cystatin B Expands Most Comprehensive Renal Testing Portfolio Kidney Injury Kidney Function The IDEXX Cystatin B test is the first IDEXX SDMA and Creatinine help veterinary test to detect kidney injury establish a baseline for kidney health monitoring and early disease detection 1/3 of kidney
Slide 90: Testing Begets Testing Across Diagnostic Modalities
Testing Begets Testing Across Diagnostic Modalities Percentage of 2022 Clinical Visits Percentage of 2022 Clinical Visits Including a Chemistry Panel by Practice Decile Including a CBC by Practice Decile 31% 28% Ref Lab Ref Lab Mean: Mean: 17% 15% 3% In-House 4% In-House Bottom Top Bottom Top 9 8 7
Slide 91: Technology is Springboard for Lab Productivity and Practice Efficiency
Technology is Springboard for Lab Productivity and Practice Efficiency Automation Digitization Artificial Intelligence Current State Across IDEXX Diagnostic Categories 91 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 92: Sustained Investment in Innovation Drives Growth and Profitability
Sustained Investment in Innovation Drives Growth and Profitability Global Reference Lab Diagnostic Global Reference Lab Diagnostic and Consulting Services Recurring Revenue and Consulting Services Gross Margin and Organic Revenue Growth3 Gross Margin ~50% 13% $1.2B CAGR ~+375bps 12% CAGR $0.8B ~+175
Slide 93: Customers Rely on our Highly Differentiated Services Platform
Customers Rely on our Highly Differentiated Services Platform as an Extension of their Practice  30 years of sustained investment  Industry leading menu  Largest network of medical specialists  Significant global opportunity 93 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 94: Michael Schreck
Michael Schreck Senior Vice President and General Manager Veterinary Software and Services and Corporate Accounts Callie 94 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 95: Software Strategy and Products
Software Strategy and Products Michael Schreck Senior Vice President and General Manager IDEXX Investor Day I August 10, 2023
Slide 96: Software Addresses Our Customers' Most Important Strategic Priorities
Software Addresses Our Customers’ Most Important Strategic Priorities IDEXX committed to a cloud-first PIMS strategy to accelerate industry adoption High growth, high margin business with strong momentum that is a powerful strategic enabler of our core business Corporate groups need to grow organica
Slide 97: Customers Experience Our Diagnostics through IDEXX Software Ecosystem
Customers Experience Our Diagnostics through IDEXX Software Ecosystem Portfolio Enterprise Analytics Security Group Unified Data Oversight Pet Owner Platform Payments Engagement Digital Referral Workflow Management PIMS IDEXX VetConnect Plus + IDEXX IDEXX In-House Reference Labs IDEXX DecisionIQ™ Ve
Slide 98: Our Vertical SaaS Strategy Continues to Accelerate
Our Vertical SaaS Strategy Continues to Accelerate Top Software Talent Accelerate Cloud Adoption Deepen Application Adoption EzyVet | Neo | Animana Payments | Pet Owner Engagement | rVetLink Corporate Accounts Emphasis Optimize via Leverage + Digital Workflow + Artificial Intelligence VetRadar | Sma
Slide 99: Our Cloud-first Strategy has Driven Increased Industry Adoption
Our Cloud-first Strategy has Driven Increased Industry Adoption North America Percentage of PIMS Install Base: Cloud vs. On-Prem +2 pts +4-5 pts +6-8 pts per year per year per year 99 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 100: IDEXX Cloud Solutions are Well-Positioned to Meet Growing Demand
IDEXX Cloud Solutions are Well-Positioned to Meet Growing Demand Intent to Switch Awareness & Consideration Percentage of clinics planning to switch in the next two years Percentage of clinics likely to consider a given cloud product*** ~2x IDEXX Cloud PIMS ** Will May * Consider Consider *IDEXX CMI
Slide 101: Cloud-first Strategy is Driving Rapid IDEXX Veterinary Software Growth
Cloud-first Strategy is Driving Rapid IDEXX Veterinary Software Growth We are placing 3x as many PIMS as 2019 -- nearly all of them cloud Total IDEXX PIMS Placements (global): Total IDEXX PIMS Installed Base (global): Cloud vs. On-premise* Cloud vs. On-premise* 30%+ Cloud CAGR* 35%+ 97% CAGR* 75% 65
Slide 102: IDEXX Cloud PIMS Multiplies Revenue Expansion Opportunity
IDEXX Cloud PIMS Multiplies Revenue Expansion Opportunity Artificial Intelligence Marketplaces Back-office Pet Owner Engagement Digital Workflow & Data Insights Payments & Partnerships Practice Management System 102 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 103: IDEXX Software is Delivering Accelerated Revenue and Margin Growth
IDEXX Software is Delivering Accelerated Revenue and Margin Growth IDEXX Veterinary Software, Services, and Digital Imaging Systems Revenue and Revenue Growth ($M) Gross Profit $ ~15% ~21% Recurring ~25% CAGR* Revenue2 CAGR** 70%+ CAGR 66% 59% 2 Please refer to the Appendix for descriptive footnotes
Slide 104: Corporates are Pivoting from Inorganic Growth to Operational Execution
Corporates are Pivoting from Inorganic Growth to Operational Execution Rising Interest Rates Reduction in Acquisition Pace +530 bps -68% *St. Louis Fed FRED database. 2023E based on acquisition trends as of April 2023. **Estimate as of July 31, 2023, rounded to nearest 50. 104 © 2023 IDEXX Laborator
Slide 105: Corporates Recognize the Need to Standardize Operations for Growth
Corporates Recognize the Need to Standardize Operations for Growth Subset of Corporate Customers’ Subset of Corporate Customers’ % of 2022 Clinical Visits with Bloodwork PIMS Landscape 65%-70% Other PIMS PIMS C Mean: PIMS B 21% 30%-35% Other PIMS PIMS A PIMS X PIMS Y PIMS Z Bottom Top Top Decile Dec
Slide 106: ezyVet is Delivering Enterprise Class Software Tuned for Corporate Groups
ezyVet is Delivering Enterprise Class Software Tuned for Corporate Groups Q1 2024 Product Segmentation Essentials Enterprise Traditional Offering + Centralized Control & Security General Customer Segments General Practice Spec / ER Practice Channel / Delivery • Independent Software Sales • Enterpris
Slide 107: Codifying Best Practice Workflow in Software to Drive Growth and Save Time
Codifying Best Practice Workflow in Software to Drive Growth and Save Time Impact of Workflow Training* Impact of Simplified Workflow** -16% ~4x *Cornerstone Practices that completed training on Inventory, Compliance, Workflow, and EMR were compared to practices that did NOT go through that training
Slide 108: VC+ Provides a Differentiated Workflow Experience that Promotes Loyalty
VC+ Provides a Differentiated Workflow Experience that Promotes Loyalty IDEXX Multi-Modality Diagnostic Solution LOYALTY +6X* IDEXX Reference Lab IDEXX POC Diagnostics LOYALTY +2X* *Loyalty multiplier compares the percentage of VC+ power practices vs. non-power practices (VC+ power practice defined
Slide 109: IDEXX Software Practices Generate More IDEXX Dx Revenue per Practice
IDEXX Software Practices Generate More IDEXX Dx Revenue per Practice Average IDEXX Diagnostic Revenue per Engaged Practice in North America* (Trailing 12 months ended June 30, 2023) +58% +24% VetConnect PLUS Power Mobile User ezyVet ezyVet Non-IDEXX PIMS *Engaged Practices defined as IDEXX customers
Slide 110: Leveraging AI to Elevate Standards of Care and Drive Follow-up Testing
Leveraging AI to Elevate Standards of Care and Drive Follow-up Testing AI-infused interpretations and recommendations Impact on follow-up testing IDEXX VC+ DecisionIQTM 2.5x Likelihood to complete follow-up diagnostics* *N = 1.75M, representing all 4Dx Plus positive results and IRIS staging cards ge
Slide 111: IDEXX DecisionIQ Creates Time While Maintaining Clinical Confidence
IDEXX DecisionIQ Creates Time While Maintaining Clinical Confidence Average IDEXX Diagnostic Revenue per Practice in North America* (Trailing 12 months ended June 30, 2023) +58% IDEXX DecisionIQTM Opportunity +24% VetConnect PLUS Expansion Power Mobile User ezyVet ezyVet Non-IDEXX PIMS *Engaged Prac
Slide 112: IDEXX Veterinary Software is at the Heart of Our Customers' Priorities
IDEXX Veterinary Software is at the Heart of Our Customers' Priorities Practice Standards Productivity of Care Pet Owner Engagement 112 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 113: A Customer Conversation with Dr. David Danielson
A Customer Conversation with Dr. David Danielson Jim Polewaczyk Dr. David Danielson Executive Vice President and Caring Paws Animal Hospital Chief Commercial Officer Odessa, FL 113 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 115: A Customer Conversation with Dr. David Danielson
A Customer Conversation with Dr. David Danielson Jim Polewaczyk Dr. David Danielson Executive Vice President and Caring Paws Animal Hospital Chief Commercial Officer Odessa, FL 115 © 2023 IDEXX Laboratories, Inc. All rights reserved.
Slide 118: IDEXX Financial Review
IDEXX Financial Review Brian McKeon, Executive Vice President and Chief Financial Officer IDEXX Investor Day I August 10, 2023
Slide 119: Financial Review – Key Messages
Financial Review – Key Messages  Strategic focus and strong execution yield outstanding financial results  Global CAG opportunity foundation to multi-year 10%+ annual organic revenue growth potential  Durable CAG Dx recurring revenue gains support outlook for continued operating margin expansion,
Slide 120: Consistent IDEXX Strategy and Execution Yields Outstanding Results
Consistent IDEXX Strategy and Execution Yields Outstanding Results Multi-Year 2016-2019 2019-2022 Goals* Organic Revenue Growth CAGR3 11% 12% 10%+ Annual Operating Margin Gains (Average Annual Comparable Operating Margin Gain)6 130 bps 110 bps 50 - 100 bps 2022 Discrete R&D Impact** -80bps Annual EP
Slide 121: Significantly Expanded CAG Dx Recurring Revenue Base
Significantly Expanded CAG Dx Recurring Revenue Base CAG Diagnostics Recurring Revenue and Normalized Normalized Organic Revenue CAGR4 Organic Revenue Growth4 ($ Billions) 2016 – 2019 2019 – 2022 14% CAGR 13% International 14% CAGR 13% U.S. 12% 14% 4 Non-GAAP financial measure, please refer to Appen
Slide 122: CAG Dx Recurring Revenue Expanded by One-Third During Pandemic
CAG Dx Recurring Revenue Expanded by One-Third During Pandemic CAG Diagnostics Recurring Revenue and Organic Revenue Growth3 ($ Billions) +35% 2020 – 2021 Key Drivers  Acceleration of diagnostic frequency and utilization gains  Pet population expansion o 5% annual U.S. pet population growth o Aver
Slide 123: IDEXX Execution Drives Growth Off Higher Revenue Base
IDEXX Execution Drives Growth Off Higher Revenue Base U.S. CAG Diagnostics Recurring Revenue Normalized Organic Revenue CAGR4 and Growth 13% ~2% 13% IDEXX Execution 12% CAGR CAGR Growth Drivers Net Price ~ 4% 2% - 3% Realization 8% - 9% Volume ~ 6% Premium ~ 6% ~ 5% Clinical Visits ~ 3% ~ 3% ~ -1% 4
Slide 124: Premium Instrument Growth Supports Global Expansion
Premium Instrument Growth Supports Global Expansion International Premium Instrument Installed Base* Urinalysis Key Drivers  Best-in-class analyzers and menu Hematology  Innovation: ProCyte One  Global commercial capability leverage; regional expansions Chemistry  IDEXX360 * Premium chemistry in
Slide 125: High Growth Recurring, Cloud-Based Software Revenue Annuity
High Growth Recurring, Cloud-Based Software Revenue Annuity Veterinary Software, Services and Diagnostic Imaging Revenue and Organic Revenue Growth 2,3 ($ Millions) Recurring Software Services Non-recurring Growth Drivers 6% CAGR  Focus on cloud-based solutions and applications  2021 ezyVet Acquis
Slide 126: Attractive Incremental Margins from CAG Recurring Revenue Growth
Attractive Incremental Margins from CAG Recurring Revenue Growth CAG Gross Margin Profile - 2022 Incremental margin on recurring revenue** * In-house Diagnostics include IDEXX VetLab Consumables, Rapid Assay Products, CAG Diagnostics Services and Accessories, and CAG Diagnostics Capital – Instrument
Slide 127: 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 Growth3 Potential 10%+ High-Single Mid-Single Annual Growth 5% - 10% Digit Digit Potential 15%+ 13% - 16% 10% - 13% 11
Slide 128: Continued High U.S. CAG Dx Recurring Revenue Growth Potential
Continued High U.S. CAG Dx Recurring Revenue Growth Potential Driven by IDEXX innovation and commercial engagement IDEXX Long-Term U.S. CAG Dx Recurring Revenue Annual Organic Revenue Growth3 Potential ~2% - 4% 10% - 13% Compound Annual ~1% Growth Rate 4% - 5% ~ 3% Clinical Pet Innovation and Net Cu
Slide 129: Step-up in Pet Ownership Points to Significant Unserved Sector Demand
Step-up in Pet Ownership Points to Significant Unserved Sector Demand Significant Step-up in Visits Through Pandemic U.S. Half-Year Average Clinical Visits per Practice Indexed with each 2017 half-year = 100 Post-pandemic period Historical trend Pandemic period with step-up in pet ownership 5%+ avg
Slide 130: High International CAG Dx Recurring Revenue Growth Potential
High International CAG Dx Recurring Revenue Growth Potential Supported by premium platform expansions and increased diagnostics utilization IDEXX Long-Term International CAG Dx Recurring Revenue Annual Organic Revenue Growth3 Potential ~2% - 4% ~ 3% 13% - 16% Compound Annual Growth Rate 5% - 6% ~ 3%
Slide 131: Targeting Continued Solid Annual Operating Margin Gains
Targeting Continued Solid Annual Operating Margin Gains Building on strong performance Annual Operating Margin and Average Annual Comparable Operating Margin Expansion6 (bps) Long-term Goal* +50 +50 - 100 bps Customer +280 Contract Average Annual Comparable Gains Resolution Key Drivers +130  60%+ i
Slide 132: Healthcare Benchmarks Point to Continued Opportunity for Gross Margin Expansion
Healthcare Benchmarks* Point to Continued Opportunity for Gross Margin Expansion and Highlights SG&A Efficiency ** * Includes Health Care Equipment, Health Care Services & Suppliers and Life Sciences Tools & Services sub-industries ** 2022 IDEXX SG&A includes $80M of discrete R&D investment in Q2’22
Slide 133: Strong Cash Flow Generation Driven by High Net Income Conversion
Strong Cash Flow Generation Driven by High Net Income Conversion Free Cash Flow % of Net Income9 Key Highlights  Consistent long-term target for Large facility projects high conversion to free cash flow 80 – 90% of net income Discrete R&D  Low capital investment intensity 4 - 5% of revenues Free c
Slide 134: Conservative Balance Sheet Provides Flexibility for Capital Allocation
Conservative Balance Sheet Provides Flexibility for Capital Allocation Debt to Adjusted EBITDA10 Ratio 3.5x 3.0x Gross 2.5x Net 2.0x 1.5x 1.0x 0.5x Increased U.S. COVID-19 Interest Go-Direct Pandemic Rates 10 Non-GAAP financial measure, please refer to Appendix for footnotes. 134 © 2023 IDEXX Labora
Slide 135: Corporate Development Activity Focused on Core Business Expansion
Corporate Development Activity Focused on Core Business Expansion Cash Spending on Acquisitions & R&D In-License Activity 2016 – 2022* ($ Millions) VMX Reference Labs 2024 Information Management Other Point of Care Technology In-license New Platform * Total Cash Spending on Acquisitions includes Acq
Slide 136: High Quality Growth Investments Yield Attractive Incremental Returns
High Quality Growth Investments Yield Attractive Incremental Returns Projected ROIC8 Broad Benefits of Software Investment Mid Teens  Double digit recurring revenue growth opportunity  Preference for cloud-based products drives gross margin expansion  Software key lever to improve clinic producti
Slide 137: 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 & Investments8 Repurchases* Over 45% reduction in weighted avg share count since 1999 $3.4B $195 avg purchase price $2.4B $22 avg purchase price 8 Non-GAAP finan
Slide 138: IDEXX has Demonstrated Resilience in Times of Economic Uncertainty
IDEXX has Demonstrated Resilience in Times of Economic Uncertainty Year-over-year Growth IDEXX WW CAG Normalized IDEXX WW CAG Diagnostics Normalized Organic Revenue 1,4 Organic Recurring Revenue 1,2,4 Total Personal Consumption Expenditure* * 2002 through H1’23 based on data from Bureau of Economic
Slide 139: IDEXX Model Delivers Strong Growth and Financial Performance
Managing Through Macro Cycles IDEXX Model Delivers Strong Growth and Financial Performance Organic Growth Drivers Financial Performance Drivers  Global direct commercial engagement  High return, recurring revenue growth supporting high IDEXX growth premium  Track record and opportunity for operat
Slide 140: 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 exclu
Slide 142: Footnotes
eco e ee e e Footnotes
Slide 143: 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 144: Footnotes
Footnotes 4 Normalized Organic Revenue Growth and CAGR, continued: CAGR CAGR Avg. Annual Total Company 2010-2015 2015-2019 2016-2019 2019-2022 Worldwide CAG Diagnostics Recurring 2010-2015 2015-2019 2016-2019 2019-2022 2019-2021 Reported Growth 8% 11% 11% 12% Reported Growth 9% 12% 13% 13% 39% 5 5 C
Slide 145: Footnotes
Footnotes 5 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 146: Footnotes
Footnotes 7 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 147: Footnotes
Footnotes 8After-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 cas
Slide 148: Footnotes
Footnotes 9 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, including tax benefits attributable to share-based compensation, reduced by the

IDEXX Laboratories — Investor Day (August 2023) on 6ix

Idexx Laboratories — Investor Day (August 2023)

Slide 1: IDEXX Laboratories, Inc. Investor Day

Slide 2: Opportunity and Strategy Overview

Slide 3: 2023 IDEXX Investor Day Agenda

Slide 4: Safe Harbor Disclaimer

Slide 5: Enabling Companion Animal Healthcare through Innovation, Clinical Insights and Customer Engagement

Slide 6: Our Purpose

Slide 7: High Long-term Revenue Growth Supported by Consistent Strategy

Slide 8: Pet Healthcare has Strong Long-term Tailwinds

Slide 9: IDEXX has Demonstrated Resilience in Times of Economic Uncertainty

Slide 10: Pet Owners have a Deep Emotional Connection with their Pets

Slide 11: Pet Owners are Willing to Make Financial Tradeoffs to Care for their Pets

Slide 12: $45 Billion Underserved Global Opportunity in Diagnostics

Slide 13: Global Opportunity to Increase Standards of Care

Slide 14: Medical Services are Expanding Driven by High-growth Diagnostics

Slide 15: Diagnostics Drive Medical Services and Expand Practice Profitability

Slide 16: Step-up in Pet Population Expected to have Long-term Benefits

Slide 17: Practices are Increasing the Standard of Care with Significant Opportunity Remaining

Slide 18: IDEXX Fully-integrated Multi-modality Diagnostic and Software Solutions

Slide 19: IDEXX Innovation and Customer Engagement Support Global CAG Sector Development

Slide 20: New Point of Care Testing Categories Extend IDEXX Platform Innovation

Slide 21: Point of Care Platforms Build Layers of Diagnostics Annuity Value

Slide 22: IDEXX 360 has Global Appeal

Slide 23: Point of Care Solutions Offer Significant Growth Potential

Slide 24: Testing Begets Testing

Slide 25: Veterinary Practices Engaged with IDEXX Grow Clinical and Diagnostic Revenue Faster

Slide 26: Integrated Multi-modality Model Enables Flexibility for Customers

Slide 27: A Growing Number of New Practices Adopt IDEXX Technology

Slide 28: IDEXX Software Supports Higher Customer Engagement and Growth

Slide 29: IDEXX CAG Diagnostics Recurring Revenue Growth has Outpaced Practice and Sector Diagnostics Growth

Slide 30: Our Customers Grow Faster When We Call on Them

Slide 31: Commercial Expansions Develop Global Opportunity and Support New Product Introductions

Slide 32: IDEXX Brand has Continued World-class Customer Advocacy

Slide 33: High Customer Retention Enables Our Durable CAG Recurring Annuity

Slide 34: Strong Trends Point to Sustained High Long-term Diagnostics Sector Growth Potential

Slide 35: IDEXX – Long-term, Resilient, Durable Growth and Returns

Slide 36: Tina Hunt, PhD

Slide 37: Strategy and Sector Development

Slide 38: The Pet Population Continues to Grow Faster than Historical Rates

Slide 39: Younger People are Driving This Increase, and Believe in Diagnostics

Slide 40: Spending on Pet Healthcare and Diagnostics Grows as Pets Age

Slide 41: Pets are Living Longer

Slide 42: Bloodwork Inclusion is Increasing with Ample Runway for Growth

Slide 43: IDEXX Continues to Drive Expansion of Non-Wellness Diagnostics

Slide 44: Preventive Care Testing, Especially for Younger Pets, is a Key Focus

Slide 45: Preventive Care Testing is Relevant to All Patients and Ages

Slide 46: The Opportunity to Increase Diagnostics Utilization is Global

Slide 47: IDEXX is Developing the Diagnostic Sector with Evidence-based Studies

Slide 48: KOL Endorsements Play a Key Role in These Efforts

Slide 49: We Inspire Belief Journey through Extensive Customer Education

Slide 50: Multiple Drivers Point Toward Underserved Long-term Demand

Slide 51: U.S. Clinical Visits in 2022 are Well Above 2018 Baseline

Slide 52: Demand Remains Strong Across Geographies, Constraining Access to Veterinary Care

Slide 53: Clinics are Adding Staff, but Productivity Opportunities Remain

Slide 54: We are Influencing Industry Change with Practical Resources to Increase Clinic Productivity

Slide 55: IDEXX Technology Solutions Support Practice Workflow and Productivity

Slide 56: Strong Sector Tailwinds Underpin Decades-long Growth Runway

Slide 57: Mike Erickson, PhD

Slide 58: Break

Slide 59: IDEXX Point of Care Diagnostics

Slide 60: Executing Globally to Support Customers at the Point of Care

Slide 61: IDEXX Real-time Care Workflow – Load and Go, Results in ~10 Minutes

Slide 62: Record Premium Instrument Placements Worldwide

Slide 63: Long-term Durable Recurring Revenue Growth

Slide 64: Purpose-built Platforms Meet Strict Veterinary Performance Requirements

Slide 65: Technology for Life: Delivering a Cadence of New Menu

Slide 66: Inspiring Customers with IDEXX SDMA on Catalyst

Slide 67: New Menu Expands Clinical Utility and Economic Value

Slide 68: Designed and Built to Function as an Integral Part of IDEXX's Fully Integrated Dx Ecosystem

Slide 69: Expanding Real-time Insights Available at the Point of Care

Slide 70: New Platform Diagnostics Annuity Grows Over Time

Slide 71: New Platforms Support Multiplier Benefits to CAG Diagnostics Growth

Slide 72: Platform Data Streams Power Smarter Interpretation Algorithms

Slide 73: IDEXX Rapid Assay

Slide 74: IDEXX SNAP is the Trusted Standard for Rapid Testing

Slide 75: Customers Value IDEXX SNAP as an End-to-end Solution

Slide 76: Significant Opportunity to Grow as Disease Expands Geographically

Slide 77: Long Runway for Diagnostics Growth and Innovation at the Point of Care

Slide 78: Mike Lane

Slide 79: Global Reference Labs and Medical Consulting Services