Slides
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IDEXX Laboratories, Inc. Investor Day August 15, 2024
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Jay Mazelsky President and Chief Executive Officer Innovation-Driven Growth Strategy Spider & Shu Shu
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2024 IDEXX Investor Day Agenda 3 Time Topic Length 8:00 – 8:05 am Welcome and Introductions Jay Mazelsky, President and Chief Executive Officer 5 min 8:05 – 9:10 am IDEXX Opportunity and Strategy Jay Mazelsky – Innovation-Driven Growth Strategy Tina Hunt, PhD – Strategy and Sector Development 45 min 20 min Break ~10 min 9:20 – 10:20 am IDEXX Innovation and Key Strategic Growth Drivers Mike Erickson, PhD – Point of Care Diagnostics Mike Lane – Global Reference Labs and Medical Consulting Services Michael Schreck – Software Services 20 min 20 min 20 min Break ~10 min 10:30 – 10:50 am IDEXX Commercial Engagement George Fennell 20 min 10:50 – 11:15 am Financial Review Brian McKeon 25 min 11:15 – 11:45 am Question and Answer Session 30 min ~11:45 am End of live webcast and Reg FD event
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 future events. These statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements contained in the presentation include discussions about growth opportunities for and prospects of our business and industry, sector trends and dynamics, our anticipated total addressable sector opportunity and addressable opportunities of various modalities, offerings and solutions, industry and sector trends, our innovation plans and expectations regarding product development, product launches and menu expansion, including but not limited to our IDEXX inVue Dx Cellular Analyzer, IDEXX Cancer Dx solutions, other major disease franchise testing offerings and customer-facing software solutions, expectations and beliefs regarding the resiliency and durability of our business model, our business plans and prospects, expectations regarding future operating and financial performance, future use of cash and share repurchases, and other future events. No forward-looking statement can be guaranteed. You are cautioned not to put undue reliance on forward-looking statements, which speak only as of today’s date. The Company assumes no obligation, and expressly disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reports filed by the Company pursuant to United States securities laws contain discussions of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements and you should carefully evaluate forward-looking statements together with the many risks, uncertainties and other factors that affect our business, particularly the matters described under the headings “Business,” “Risk Factors,” “Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Quantitative and Qualitative Disclosures About Market Risks,” in our most recent Annual Report on Form 10-K, as well as our subsequent filings on Forms 10-Q and 8-K. You are advised to review the Company’s filings with the United States Securities and Exchange Commission (which are available from the SEC’s EDGAR database at www.sec.gov and via the Company’s website at www.idexx.com). We refer in this presentation to our 2024 outlook and 2024 free cash flow outlook communicated on August 6, 2024. These references speak only as of the date on which they were communicated and shall not be deemed to be a reiteration or affirmation of the guidance or an indication that our expectations have not changed since that time. We also refer in this presentation to our multi-year goals, long-term financial model, revenue growth potential, long-term average annual EPS growth potential, long-term average annual comparable operating margin gain goals, potential for gross margin expansion and long-term free cash flow conversion goals. None of these references constitute and shall not be deemed to be the Company’s outlook, guidance or projections. Non-GAAP Financial Measures In this presentation, we refer to certain non-GAAP financial measures. For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, we refer you to our footnotes and the Appendix to this presentation, which also refers to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, the Company’s Annual Reports on Form 10-K for the years ended December 31, 2016 through December 31, 2023, and the Company’s Definitive Proxy Statements filed in 2020, 2021, 2022, 2023 and 2024, which are available at www.idexx.com/investors. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. Please refer to additional footnotes in the Appendix. Safe Harbor Disclaimer 4
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 5 + 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 commercial partnership + Long-term durable 10%+ organic revenue growth potential with high ROIC Innovation-Driven Growth
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX’s Purpose Aligned with Business Strategy 6 “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 and raise standards of care + Providing microbiology tests that ensure the safety of drinking water and other water supplies + Delivering diagnostic tests and services to monitor the health of herd and flock animals worldwide
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Delivering Exceptional Financial Results Over the Long-Term 7 2, 5, 6, 7 Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. *Reflects $16M G&A expense benefit related to customer contract resolution payment in Q1’23 which adds ~10 bps to average annual comparable operating margin expansion and ~100 bps to annual comparable EPS growth. Revenue Operating Margin EPS +11% +170 bps +22% Organic Revenue CAGR2 Average Annual Comparable Operating Margin Expansion*,5 Average Annual Comparable EPS Growth*,6 ROIC7 48% in 2023 IDEXX Long-term Financial Performance 2018 – 2023
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Strategic Growth Drivers + Dx Innovation: diagnostic menu, new and existing platform extensions, integrated software + Commercial model driven by trusted relationships and subject matter expertise + Geographic expansion + Sizable software business with 15%+ growth potential Consistent Strategy Supports Accelerating Revenue Growth 8 IDEXX Revenue and Normalized Organic Revenue CAGRs ($B)1,3 9% CAGR 13% CAGR 13% CAGR$1.1B $1.6B $2.4B $3.7B 8% CAGR 11% CAGR 12% CAGR CAG Diagnostics Recurring Revenue Other Revenue 1, 3Non-GAAP financial measure, please refer to Appendix for descriptive footnotes.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. -10% -5% 0% 5% 10% 15% 20% 2002 2008 2014 2020 H1'24 IDEXX has Demonstrated Resilience through Macro Cycles Year-over-year Growth 1Please refer to the Appendix for descriptive footnotes. IDEXX CAG Diagnostics Recurring Revenue not available prior to 2009. 3Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. *2002 through H1’24 based on data from Bureau of Economic Analysis, last revised on July 25, 2024. IDEXX WW CAG Normalized Organic Revenue 1,3 IDEXX WW CAG Diagnostics Normalized Organic Recurring Revenue 1,3 Total Personal Consumption Expenditure* Post-Pandemic Growth Dynamics + Stepped-up volume base + Capacity limitations + Consumer impacts across most areas of spend 9
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© 2024 IDEXX Laboratories, Inc. All rights reserved. *Based on pet parent responses to IDEXX Pet Parent Survey, June 2024, n = 1,887 pet parents. Represents percentage of survey respondents to the question ‘Have you done any of the following in the past year?’. Pet Healthcare is Highly Resilient, Not Immune to Economy 10 4% 12% 21% 27% 44% Delayed Sick Visit Delayed Wellness Visit Delayed/Canceled Travel Reduced Spending on Subscription Services Reduced Eating Out 2024 IDEXX Pet Parent Survey* “Have you done any of the following in the past year?” Annual U.S. Clinical Visit Growth -6% -4% -2% 0% 2% 4% 6% Q4'21 Q2'22 Q4'22 Q2'23 Q4'23 Q2'24 Wellness Visits Non-well “Sick” Visits
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Powerful Secular Tailwinds in Pet Healthcare 11 Expanding and aging pet population Expanding and aging pet population Expanding and aging pet population Pets living 10%+ longer and care expectations are expanding Expanding and aging pet population Demographic shift benefiting strengthening pet–parent bond Expanding and aging pet population Increased pace and impact of innovation
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© 2024 IDEXX Laboratories, Inc. All rights reserved. North America Region Latin America Region Europe Region Asia Pacific Region 22% Served 8% 9% 2% *Total addressable companion animal diagnostics revenue opportunity estimated based on bottom-up modeling at manufacturer or service provider level. Assumes current proportion of household-owned pets visiting the veterinary practice for wellness and non-wellness visits; ‘medically optimal’ percentage of these visits that should include at least 1 diagnostic and estimated average manufacturer revenue for appropriate diagnostics used in each type of visit. Note that this global opportunity is estimated as of 2022 and is anticipated to grow over time based on the known underlying drivers, e.g., clinical visit growth per practice, net new practice formation and net price realization. Worldwide Addressable Companion Animal Dx Revenue Opportunity ($45B+ Total, ~15% served)* $17B $7B $7B $14B Substantial Underserved Global Opportunity in Diagnostics 12
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© 2024 IDEXX Laboratories, Inc. All rights reserved. % of U.S. Non-wellness Clinical Visits including Bloodwork % of U.S. Clinical Visits including Bloodwork Source: Based on an analysis of IDEXX Practice Intelligence data from ~2,100 to 5,200 practices. Bloodwork includes chemistry and / or hematology testing. ‘Clinical visits’ are those where the reason for visit involves an interaction between a veterinary clinician and a pet, including wellness and non-wellness visit types. Percentages rounded to the nearest 1% and average annual changes rounded to nearest 0.5%. % of U.S. Wellness Clinical Visits including Bloodwork 20192010 2023 + 0.5% per year + 0.5% per year Significant Opportunity to Increase Standard of Care 13 20192010 2023 20192010 2023 + 0.5% per year + 0.5% per year + 0.5% per year + 0.5% per year
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2010 2015 2023 Average U.S. Revenue per Practice by Segment* ($M) *Analysis based on IDEXX Practice Intelligence data n = 6,900 to 8,300 practices. **Includes pharma and vaccine product sold both within clinical visits and non-clinical (retail) visits. ***Includes ~1% of incremental annual growth related to net new practice formation. Diagnostics $1.2M $2.0M Pharma & Vaccines** Other Product Medical Services (excl. diagnostics) Product Total $1.0M 10% 8% 8% 3.5% 7.5% 2015 – 2023 6.5% 5.5% 5% 4% 5.5% 2010 – 2015 Total U.S. Segment CAGR %*** Veterinary Practices Focus on Expanding Medical Services 14
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Cumulative R&D Investment ($M, calendar years shown) Differentiated Assays Instrument Platforms Software, Data and Connectivity Lifecycle New Product > $2.2 Billion IDEXX Innovation Drives Sector Development 15 Areas of Expertise
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX’s New Wave of Innovation 16 PL Catalyst® Pancreatic Lipase Catalyst® SmartQC® New IDEXX VetLab® Station IDEXX Cystatin B Test Detects kidney injury in dogs and cats Fecal DxTM Expansion with Flea Tapeworm and Cystoisospora Point of Care Reference Labs Software
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Testing Innovation Focused on Diagnostic Franchises 17 Vector-Borne Disease *Total addressable revenue opportunity estimated based on bottom-up modeling at manufacturer or service provider level. Assumes current proportion of household-owned dogs and/or cats visiting the veterinary practice for wellness and/or non-wellness visits and estimated average manufacturer revenue for appropriate diagnostics used in each type of visit. Note that these global opportunities are estimated as of 2023 and are anticipated to grow over time based on the known underlying drivers, e.g., clinical visit growth per practice, net new practice formation and net price realization. >$1B Opportunity* Fecal Antigen Testing for Earlier and More Comprehensive Detection + SNAP® Leish 4Dx (2024) + Improved SNAP 4Dx Plus with IDEXX DecisionIQ (2022) + SNAP® 4Dx® Plus (2012) + SNAP® HW (1992) Testing for Kidney Impairment and Injury, Identifies Targeted Treatment ~$4B Opportunity* Renal ~$3.5B Opportunity* Parasitology Screening Tests for More Accurate Disease Detection + Cystoisospora (2024) + Flea Tapeworm (2022) + Hookworm + Roundworm (2015) + Whipworm (2014) + IDEXX Cystatin B (2023) + IDEXX FGF-23 (2022) + SediVue Urinalysis (2016) + IDEXX SDMA® (2015)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Oncology is a New Multi-Billion Dollar Diagnostic Opportunity 18 Oncology ~$2.5B Opportunity* IDEXX has the most comprehensive testing portfolio to address largest cause of pet mortality Cancer is detected in later stages when treatment options are more limited + Digital Cytology (2020) + Teleradiology (2009) + Histology (1994) + Clinical Pathology (1994) *Total addressable revenue opportunity estimated based on bottom-up modeling at manufacturer or service provider level. Assumes current proportion of household-owned dogs and/or cats visiting the veterinary practice for wellness and/or non-wellness visits and estimated average manufacturer revenue for appropriate diagnostics used in each type of visit. Note that this global opportunity is estimated as of 2023 and is anticipated to grow over time based on the known underlying drivers, e.g., clinical visit growth per practice, net new practice formation and net price realization.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Improved Oncology Care Requires New Diagnostic Solutions 19 *Based on number of 2023 medicalized dogs, who are at-risk breeds > 4 years or senior dogs ( >7 years); and number of 2023 medicalized cats > 8 years; Diagnostic screen (wellness) addressable patients based on those with chemistry and/ or hematology bloodwork in a 2023 wellness visit; Aid-in-Diagnosis (non-wellness) addressable patients based on estimated number of times cancer included in a differential based on veterinarians’ stated estimates from quantitative survey with U.S. GPs (n = 319), May 2024. Global estimate extrapolated based on estimated wellness and non-wellness medicalized pet population. Number of medicalized dogs and cats, those with wellness visit, and those with bloodwork in wellness visit based on IDEXX Practice Intelligence data. Diagnostic Screen (Wellness) Total Oncology Diagnostics Potential Addressable Opportunity (Patients)* 25.0M Aid in Diagnosis (Non-wellness) 11.0M 8.0M Total 3.5M 11.5M 36.0M Dogs Cats 24.5M 7.5M 17.0M
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Introducing IDEXX Cancer Dx 20 + 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 inclusion in preventive care profiles + Software and data enable commercial targeting based on breed and age
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Cancer Detection and Diagnostic Interpretation at Point of Care 21 IDEXX inVue Dx Shipping Q4 2024 Fine Needle Aspirate (lumps and bumps) Coming 2025 + + + + + + + + + +
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Revolutionizing Multi-Modal Cancer Detection and Management 22 IDEXX Cancer Dx IDEXX inVue Dx IDEXX Reference Labs & Medical Consulting Services + FNA delivers diagnostic interpretation and results + IDEXX DecisionIQ interpretation and guidance + Medical Consultation + Today’s 1.5M cancer tests + Cancer screen and diagnostic aid + Cancer detectable at earlier stages
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Expanding Real-Time Insights at the Point of Care 23 Trusted Accuracy Reference lab quality End-to-End Integration Workflow optimization Ease of Use Intuitive, load and go Catalyst One® ProCyte One®SediVue® Dx 2024 IDEXX inVue Dx Technology for Life 2016 20202014 Future Platform Future IDEXX SmartService
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Total 135k 77k 94k 70k ~330k SediVue Dx®Catalyst ProCyte Global Incremental IDEXX Premium Instrument Placement Opportunity** Chemistry Hematology Urinalysis Global IDEXX Premium Instrument Installed Base* 20232013 29k Significant Opportunity for Additional Instrument Placements 24 90k IDEXX inVue Dx International U.S. *All figures are rounded. Premium chemistry includes IDEXX Catalyst Dx® and Catalyst One® Chemistry Analyzers. Premium hematology includes ProCyte Dx®, ProCyte One®, and LaserCyte® Hematology Analyzers. Premium Urinalysis includes SediVue Dx® Urine Sediment Analyzer **All figures are rounded. Excludes practices too small to be likely candidates for chemistry analyzer placement at this time. Second placement opportunities are excluded.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Bringing New Menu to a Large and Growing Installed Base 25 *Economic Value (EV) represents the cumulative 7-year gross profit generated by an instrument placement from the instrument, consumable, and service and accessories. 2014 and 2023 U.S. blended EV value compared to generate growth rate. **New menu revenue includes Lyte 4, TT4, CRP, Fructosamine, SDMA, Progesterone, and Bile Acids normalized to 2023 rates. $280M2X 2023 Revenue from New Menu** Catalyst Economic Value since 2014* Catalyst One® Fructosamine Diabetes Phenobarbital Seizures Total T4 Thyroid CRP Inflammation Catalyst® SDMA Kidney Progesterone Reproduction IDEXX SDMA -TT4 Thyroid/Kidney Bile Acids Liver New Catalyst® SDMA Kidney Catalyst® Pancreatic Lipase Gastrointestinal 2012 2014 2016 2018 2020 2022 20242008 Future SmartQC® Impact of New Menu Lyte 4 Clip Electrolytes “IDEXX Catalyst future-proofs my practice.” – Catalyst customer
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Software Portfolio Drives Diagnostics and Supports Workflows 26 IDEXX DecisionIQ AI interpretation, transcription and patient summary VetConnect® PLUS Test results, trended clinical insights Pet-Owner Engagement Digitize pet owner communications Practice Info Systems Practice workflow tools - manage care and increase staff productivity
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Solutions Deliver Exceptional Customer Value 27 IDEXX SmartService
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Commercial Engagement Supports Testing Adoption 28 Diagnostic specialist ~1,200 CAG Commercial Field-based Professionals (Increased by 2x since 2015) Software specialist Medical consultants (PSV) Field service (FSR) Digital imaging specialist Relationship Account Manager (VDC)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Customers Appreciate Integrated Multi-Modality Offering 29 57% +100bps vs. 2022 IDEXX Ref Lab ONLY Customers IDEXX VetLab® ONLY Customers Percentage of IDEXX Reference Lab or IDEXX In-house Chemistry Platform Customers Who are IDEXX Customers for Both* Companion Animal Customer Overlap 34% +300bps vs. 2022 * Analysis as of the end of FY’2023. 43% +300bps vs. 2022 United States Germany Spain International Expansion Countries
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX-Engaged Practices Grow Faster 30 Key Growth Metrics: 2018 – 2023 CAGR per Practice (%) Source: IDEXX Practice Intelligence data analysis. Total sample of 1,048 practices, of which 503 are IDEXX Engaged practices and 545 are Unengaged practices. IDEXX-engaged’ Practices are those that meet minimum criteria of purchasing IDEXX VetLab, Rapid Assay and Reference Lab diagnostics from 2020 through 2023; ‘Unengaged Practices’ are those with very limited usage of IDEXX in-house SediVue®, SDMA, and chemistry, IDEXX Rapid Assay and IDEXX Reference Labs chemistry between 2020 through 2023. IDEXX-engaged Practices (n = 503) Unengaged Practices (n = 545) Average Clinical Revenue per Practice Average Clinical Visits per Practice Average Diagnostic Revenue per Practice 10.9% 9.4% 3.0% 8.8%7.3% 2.1% +2% +2%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Corporates Shifting to Organic, Service-Driven Growth 31 1,550 1,050 500 300 2021 2022 2023 2024E Number of Independent Practice Acquisitions* (North America) *2024E based on acquisition trends as of July 2024; values rounded to nearest 50 Corporate Practice Needs: + Diagnostic solutions that drive core medical services faster + Consistent workflow & protocols across group + Single, scaled software provider with integrated enterprise-class solutions + Operational transparency across network + Enabling care programs at scale (e.g., Preventive Care)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 33% 32% 30% 29% 25% Customer Focus Results in Excellent Customer Advocacy 32 U.S. Net Promoter Score Reference Lab Source: Double-blind primary research study conducted in April – May 2024, with following U.S. sample sizes: IDEXX Reference labs n = 437, In-house Chemistry represented by Catalyst Dx and Catalyst One n = 360, In-house Hematology represented by ProCyte Dx and ProCyte One n = 344, Rapid Assay represented by IDEXX 4Dx Plus n = 355. Question: All things considered, how likely are you to recommend the following brands to a colleague? Score calculated as the % of brand/product users who are ‘promoters’ (scoring 9 or 10 on a 0-to-10-point scale) minus % of respondents who are ‘detractors’ (scoring 0 through 6 on a 0-to-10-point scale). In-house Chemistry In-house Hematology Rapid Assay Other Companies IDEXX VetConnect PLUS®
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2023 2048 IDEXX Positioned to Outpace Sector Growth 33 Estimated Global Companion Animal Dx Sector Spend ($M)* International U.S. Implied CAGR 2023 – 2048 10%+ 7.5 – 8.5% *Revenue estimated at the manufacturer level. Includes reference lab, telemedicine, in-house instruments and consumables, rapid assay, manual microscopy and ‘similar’ types of diagnostics through 2048. Excludes veterinary software, digital and ultrasound. Figures stated in USD, based on 2023 average exchange rates. Modeled based on projecting continuation of the estimated 2010 – 2023 average annual increase in percentage of clinical visits including bloodwork, clinical visit growth and net price realization relative to 2023 base. $5.8B % of Clinical Visits with Bloodwork International 7% 19% Sector Growth 9%+ CAGR 19% 34% U.S.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 34
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Tina Hunt, PhD Executive Vice President Strategy, Sector Development and Global Operations Ishka
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36 IDEXX Strategy & Sector Development Dr. Tina Hunt Executive Vice President
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© 2024 IDEXX Laboratories, Inc. All rights reserved. The Veterinary Industry Continues to Expand and Evolve 37 APPA Industry Trends and Stats as of July 2024 (excludes nutrition and OTC pharma). **APPA 2023-2024 National Pet Owner Survey & State of the Industry Report, 2024. ***First Year & Graduating Classes at U.S. Colleges of Veterinary Medicine, Internal AAVMC Data Reports, 1980-2023. ****Based on IDEXX U.S. Veterinarian Survey fielded Q4 2023. 30%+ 82M 61% Increase in veterinary college graduates in the last 10 years (2013-2023)*** U.S. households have a pet, with two-thirds owning multiple pets (up from 63% in 2018)** of practices still struggling to keep up with pet owner demand due to staffing challenges **** $10B+ U.S. Veterinary Services & Product sales from $27.7B in 2018 to $38.3B in 2023 (6.7% CAGR) *
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Staffing and Economy have Pressured Visits Off Higher Base 38 2018 2019 2020 2021 2022 2023 End 2023 U.S. Average Annual Clinical Visits per Practice* +180 +250 +465 -155 -40 +700 Δ Relative to 2018 *Analysis based on IDEXX practice intelligence data (n = ~8,200 practices) weighted to be representative of the U.S. based on practice size and region.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Long-Term Growth Propelled by Favorable Sector Trends 39 Increasing humanization of pets Favorable demographic trends Pets are living longer Expanding pet population
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 40 …and Fueled by IDEXX Strategic Enablers Relentless innovation advancing pet healthcare Customer education & KOL advocacy inspiring beliefs Deep commercial presence supporting practices Technology solutions enhancing clinic productivity
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Step-Up in Pet Population will have Long-Term Benefits U.S. Pet Population and Annual Growth* +6% +4% +2% ~ 1% Historic Trend 2019 2020 20222021 +1% 2023 41 *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 on modeling of dog and cat population growth leveraging analyses of multiple data sources.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 42 Pet Boom will Drive More Demand for Diagnostics Over Time *Analysis based on 2024 IDEXX Practice Intelligence data (n = ~8,200 practices), weighted to be representative of the U.S based on practice size and region. The data reflects clinical and diagnostic visit volumes for Canine and Feline patients (only), including impacts from net new practice formation. Clinical visit estimates for 2028 based on the projected aging of current medicalized patients and historical return rates by age. The estimates for diagnostic utilization by patient age are based on IDEXX Practice Intelligence data for calendar year 2023. Puppies & Kittens Young (1 to 3 Years) Geriatric (11 Years and Over) Adult (3 to 7 Years) Senior (7 to 11 Years) 2023 2028 2023 2028 2023 2028 2023 2028 2023 2028 33% +50% U.S. Clinical Visits by Age Group* Clinical Visits +15% +30%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Pets are Living Appreciably Longer – Benefiting Diagnostics 11.6 12.3 2010 2012 2014 2016 2018 2020 2022 2023 +1.9 years 13.0 14.2 +1.4 years Average Patient Lifespan 2010 – 2023* 15% 12% + 17% increase in lifetime diagnostic spend per patient** 43 *Based on an analysis of IDEXX Practice Intelligence data from 2+ million canine and feline patients with recorded deaths from 2010 through 2023. Lifespan reflects median patient age at time of death. **Assuming constant annual spend per-patient, by age cohort over the full period.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Spending on Pet Health and Diagnostics Grows as Pets Age Top Practices Use ~2x More Diagnostics Than Their Peers $50 $70 $85 $130 $160 $100 $140 $170 $245 $305 $- $200 U.S. Average Practice Diagnostic Revenue Per Active Patient by Age Segment* Puppies & Kittens Young (1 to 3 years) Adult (3 to 7 years) Senior (7 to 11 years) Geriatric (11 years and Over) All U.S. Practices Top Wellness Bloodwork Practices** 44 * Analysis based on 2023 IDEXX Practice Intelligence data from ~8,200 practices, weighted to be representative of the U.S based on practice size and region. ** Top practices defined based on percentage of wellness visits that include bloodwork. Estimates are for the overall number of active patients by age segment, not specifically for those receiving diagnostics. Revenue figures are rounded to the nearest $5.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 45 *Analysis based on IDEXX Practice Intelligence data (n = ~8,500 practices) on over 2 million new medicalized canine patients per year from 2016 through 2023. Newly Medicalized Pets represent unique patients who appeared for the first time within a practice, had a visit that was clinical in nature, and who are less than 7 months old Trend Towards Breeds that Incur Greater Medical Costs + Newly medicalized pets are puppies and kittens visiting a veterinarian for the first time + There is a notable shift in canine breed preferences + The composition of today’s puppies will determine the future demographic of pets Most Popular Breeds among Newly Medicalized Pets* Breed Rank
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 32% 25% 39% 40% 13% 19% 2016 2017 2018 2019 2020 2021 2022 2023 Yorkshire Terrier Labradoodle Shifting Breed Dynamics Create Additional Demand Tailwinds 46 % Newly Medicalized Canines by Spend Level* Total Annual Spend per Patient** (2023 dollars) Golden Retriever French Bulldog Low High Medium 2023 2026 2028 Index vs 2023 +3% *Patient spend per year of life estimated using IDEXX Practice Intelligence data based on lifetime spend and median lifespan by breed in calendar year 2023. Lifetime spend calculated based on the cumulative weighted sum of average spend and probability of survival at each age, by breed. **Annual spend per-patient calculated by applying the average spend by breed/age (in CY 2023) to the number of medicalized canines within each respective breed/age cohort in 2023 through 2028. Estimates for the number of medicalized canines in 2024 through 2028 based on the projected aging of current medicalized patients and historical return rates by breed and age. Spend figures represent total spend on veterinary services. Chihuahua American Pit Bull Terrier
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Younger Generations Drive Pet Ownership, Belief in Diagnostics 47 MillennialsGen Z Gen X Baby Boomers Up to 27 years 28 – 43 years 44 - 59 years 60 – 78 years % Pet Parents who Agree to at Least Annual Wellness Diagnostics** 71% 73% 63% 57% % Dog Parents by Generation* Baby Boomers Gen Z Gen X Millennials % Dog Parents in each Generation with Canines < 2 years old* 48% 37% 27% 15% *Based on IDEXX U.S. Pet Owner Survey fielded May/June 2024 (n = 1835 Dog Owners). **Based on IDEXX U.S. Pet Owner Survey fielded May/June 2024 (n = 2247 Pet Parents)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 63% 46% 32% Financially Insecure Secure Very Secure Recommendation rate for blood tests0% 100% Diagnostic Recommendations by Veterinarians* Not RecommendedRecommended High Diagnostic Acceptance by Pet Parents Assumed Pet Parent Financial Situation 48 * Question: In the past 12 months, did a veterinarian ever recommend the following for one of your pets and if so, did you accept or decline the treatment? Source: IDEXX pet parent research study fielded Dec 2023 (US Pet Parents: n=304 not at all financially secure, n=603 not at financially secure as I would like, n=748 financially secure, n=276 very financially secure) Pet Parent Acceptance Rate 92% 87% 89%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 49 Empowering Pet Parents to Make More Informed Decisions Visit Follow-Up Breed Targeted Messaging Communicate value of diagnostics Follow-up reminders Breed-specific education Recommendations & Resources Pre-Appointment Personalized Care Pet Parent Patient – Dixie Wellness Visit Pet Parent Education
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© 2024 IDEXX Laboratories, Inc. All rights reserved. *Mortality in North American dogs from 1984 to 2004; an investigation into age, size and breed-related causes of death. J Vet Intern Med 2011; 25(20187-198. Adult dogs > 1 year of age. 0% 5% 10% 15% 20% 25% 30% 35% Neoplastic (Cancer) Traumatic Infectious Metabolic Inflammatory Degenerative Toxic Congenital Vascular Mortality of Adult Dogs in North America by Physiological Process* (% of deaths) Cancer is the Leading Cause of Adult Canine Death 50
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Cancer is Prevalent in Global Canine Population* 51 *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 canine population. Global household-owned canine population = 477M **Diagnosed incidence defined as the number of medicalized, newly diagnosed canine patients in 2023. Global medicalized canine population = 171M Source: Modeling based on multiple data sources including practice data, primary research, clinical literature, IDEXX diagnostic experience and medical expert opinion. North America 3.0M International 10.5M 1.9M 6.6M1.5M 8.8M 1.5M 1.7M 13.5M
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Cancer Predominantly Identified at Advanced Stages Today 52 Source: IDEXX Quantitative Research with General Practitioners, April 2024 (n = 319) 89% 86% of veterinarians answered “Likely” to adding a cancer screening to wellness protocols of veterinarians indicated cancer screening would have a “Positive Impact” on their practice LIKELIHOOD IMPACT
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Strong Interest in Cancer Screening Among Pet Parents 53 CONCERN INTEREST BENEFIT 61% 73% 94% are concerned about the risk of cancer in their dog are interested in having a cancer screening test for their pet agree that early cancer detection improves outcomes Source: IDEXX Quantitative Research with Dog Owners, May 2024 (n = 480)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 7 8 9 10 11 12 Dog Breeds and Age are Important Indicators of Cancer Risk 54 Age of Incidence (Median) Incidence Rate (Indexed) Six Primary Cancers* Occur Earlier More Often Boxers have a combined incidence rate of almost 3X that of the overall population and cancers are generally discovered more than a year earlier Toy Poodles have a combined incidence rate of less than half of the overall population and cancers generally appear years later in life Seven canine breeds with greater risk of cancer represent…. 6.5M …highlighting the incremental value associated with screening “at risk” breeds dogs *Six primary cancers: Lymphoma, mast cell tumor, hemangiosarcoma, osteosarcoma, melanoma, and soft tissue sarcoma. Source: Practice Information Management System (PIMS) data from ~6M canines with clinical visits within 2023 and primary research.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Strategy Expands Value of Preventive Screening Vector Borne Disease …and with the next chapter Physical Examination Clinical History Diagnostic Testing Preventive Healthcare Today… Fecal Testing Complete Blood Count Chemistry, Electrolytes, SDMA Urinalysis Cancer Screening IDEXX Cancer Diagnostics included in a preventive care panel for at-risk dogs 55
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Education Acceptance Advocacy KOLs & Specialists General Practitioners Evidence Robust clinical evidence supporting early detection Expansive cancer program strengthened by partnerships KOL and specialist experience drives broader acceptance Early adopters support integration into wellness protocols 56 Sector Development Focused on Diagnostic Utilization IDEXX Learning Center Professional Service Veterinarians Regional Thought Leaders IDEXX Medical Consulting Peer Reviewed Publications Clinical Decision Support Tools
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Deep belief and evidence of early and accurate cancer detection Aligned testing and follow-up protocols and communication Technology and tools for pet parent communications Training and workflow integration enable swift execution Veterinarians Look to IDEXX for End-to-End Support 57 Care DeliveryPractice ReadinessBelief Diagnostic Protocol: Interpreting Normal Results Cancer Prevention for At Risk Breeds
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 58 Diagnostic Screen (Wellness) Total 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 Aid in Diagnosis (Non-wellness) Addressable Opportunity of ~$2.5B for Oncology Diagnostics $0.7B $2.6B$1.9B *Sector revenue at the manufacturer or service provider level. Includes canine and feline wellness diagnostic screen, aid in diagnosis (non-wellness) testing; includes conservative estimate of current cancer diagnostics (including anatomic pathology, clinical pathology, telemedicine, and other cancer-specific reference lab testing). Assumes incremental multiplier effect on utilization of diagnostics outside of IDEXX Cancer Dx and IDEXX inVue Dx FNA. Source: Modeling based on many inputs, including from practice data, primary research, IDEXX diagnostic experience and medical expert opinion.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Durable Sector Tailwinds and Initiatives to Drive Utilization 59 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 diagnostics, data and software power medicine, productivity, practice economics
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Mike Erickson, PhD Executive Vice President and General Manager Point of Care Diagnostics and Telemedicine Loki
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CREATING CLARITY Break Return in ~10 minutes
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Transforming Point of Care Diagnostics Dr. Mike Erickson Executive Vice President and General Manager
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Decades of IDEXX Innovation-Driven Leadership 63 End-to-end Integration Technology for Life Load and Go Trusted Accuracy IDEXX SmartService
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Record Placements Supports Recurring Revenue Expansion… 2010 2015 2019 2023 *Premium chemistry includes Catalyst Dx® Chemistry Analyzer and Catalyst One® Chemistry Analyzer, premium hematology includes ProCyte Dx® Hematology Analyzer, ProCyte One® Hematology Analyzer and LaserCyte® Hematology Analyzer and urinalysis includes SediVue Dx® Urine Sediment Analyzer. 19k Worldwide Premium Instrument Placements* 4k ~5X Chemistry Hematology Urinalysis Sustained Strong Execution + Record placements in 2023, continued in H1 2024 + Growth across platforms supported by global expansion + ProCyte One on-track for 20k one year ahead of plan 64
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© 2024 IDEXX Laboratories, Inc. All rights reserved. …Driving Long-Term, Durable Recurring Revenue Growth *Premium analyzers include Catalyst Dx® Chemistry Analyzer, Catalyst One® Chemistry Analyzer, ProCyte Dx® Hematology Analyzer, ProCyte One® Hematology Analyzer, LaserCyte® Hematology Analyzer, and SediVue Dx® Urine Sediment Analyzer 2Non-GAAP financial measure, please refer to Appendix for descriptive footnotes 2015 2019 2023 Global IDEXX VetLab® Consumables Recurring Revenue and Organic Revenue Growth2 ~15% CAGR ~15% CAGR 135,000 Premium Analyzers Globally* 65
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© 2024 IDEXX Laboratories, Inc. All rights reserved. *All figures are rounded. Premium chemistry includes IDEXX Catalyst Dx® and Catalyst One® Chemistry Analyzers. Premium hematology includes ProCyte Dx®, ProCyte One®, and LaserCyte® Hematology Analyzers. Premium Urinalysis includes SediVue Dx® Urine Sediment Analyzer **All figures are rounded. Excludes practices too small to be likely candidates for chemistry analyzer placement at this time. Second placement opportunities are excluded. Total 135k 77k 94k 70k ~330k International U.S. SediVue DxCatalyst One ProCyte One Global Incremental IDEXX Premium Instrument Placement Opportunity** Chemistry Hematology Urinalysis Global IDEXX Premium Instrument Installed Base* 20232013 29k Opportunity to Expand Premium Installed Base ~3.5X 66 90k IDEXX inVue Dx
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© 2024 IDEXX Laboratories, Inc. All rights reserved. New Platforms Introducing novel diagnostic solutions expanding point of care insights Expanding Menu Increasing platform diagnostic capabilities and value Intuitive Software Enabling practice productivity through integration and workflow Continuously Raising the Bar in Point of Care Diagnostics 67 IDEXX SmartService VetConnect® PLUS
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© 2024 IDEXX Laboratories, Inc. All rights reserved. “I love it!” “Zero training needed.” 68 New IDEXX VetLab Station Experience Delights Customers “Everyone is using it with ease.” 2X faster diagnostic workflows one-stop, fully integrated IDEXX VetLab® suite experience powers diagnostic insights visualization
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Technology for Life: Continuous Delivery of Value 69 *Revenue from new Catalyst menu revenue includes Lyte 4 Clip, and Phenobarbital, Fructosamine, Total T4, C—reactive Protein (CRP), Catalyst SDMA, Progesterone, and Bile Acids slides normalized to 2023 rates. **Catalyst installed base includes Catalyst Dx® Chemistry Analyzer and Catalyst One® Chemistry Analyzer. - 10 20 30 40 50 60 70 80 Fructosamine DiabetesPhenobarbital Seizures Total T4 Thyroid CRP Inflammation Catalyst® SDMA Kidney Progesterone Reproduction IDEXX SDMA -TT4 Thyroid/Kidney Bile Acids Liver New Catalyst SDMA Kidney Catalyst® Pancreatic Lipase Gastrointestinal SmartQC® Lyte 4 Clip Electrolytes $280M 2023 Revenue from New Catalyst Menu* Launched 2014 70,000+ 2024 Global Installed Base ** Future Menu Future Menu 2008 202420222018 Global Installed Base (Thousands) 20122010 20162014 2020
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Catalyst New Menu Drives Adoption at Scale 70 Catalyst® Lyte 4 CLIP Catalyst® Total T4 Test Catalyst® SDMA >50% of U.S. customers adopted in the first year of launch* Launched January 2018Launched February 2015Launched December 2008 >55% of U.S. customers adopted in the first year of launch* >65% of U.S. customers adopted in the first year of launch* *Customers who adopted in first year of launch had run at least one consumable slide on Catalyst Dx® Chemistry Analyzer or Catalyst One® Chemistry Analyzer in the last 30 days of 12 months post-launch for each product respectively.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Catalyst Pancreatic Lipase a Major Clinical Opportunity 71 Quantitative Results in <10 min One slide for Dogs + Cats A top reason for visit – Life threatening if not treated
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Platform Extensibility Enables Economic Value Expansion 72 Catalyst *Instrument Economic Value (EV) = forward looking 7-year cumulative gross profit (pre-tax) for instrument + consumables. Catalyst EV is global average for Catalyst Dx and Catalyst One. **Catalyst EV expansion represents the increase in EV between year-end 2014 and 2024. IDEXX inVue Dx Near-term EV Future Expansion 2X Expansion** + New Menu + Utilization IDEXX Instrument Economic Value (EV)* + New Menu + Utilization + Ear Swab + Blood Morphology + FNA ‘Lumps and Bumps’
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX inVue Dx Transforms Point of Care Cytology 73 Likely to purchase within 1-2 years* >50% Revolutionary, Slide-free Workflow Deeper Insights Results in 10 Minutes *Double-blind primary research fielded by IDEXX, Q2 2024, n=100 US companion animal general practice veterinarians.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Solving Pain Points to Cytology Testing at Point of Care 74 Qualitative, technique-sensitive Lack of integration: lost charges, no images to record or share Done by hand, time-consuming
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 75© 2024 IDEXX Laboratories, Inc. All rights reserved. + Cell typing + 3D size and shape + Intracellular features + Quantification + Historical trending Seeing Cells in Their Natural State Uncovers Valuable Insights
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Ear Exams are Part of Nearly Every Clinical Visit 76 *Estimate based on analysis of multiple data sources including IDEXX U.S. data on file **Symptoms, Causes, Treatment, and Prevention; American Kennel Club 2023, and Ear Mites: Uncovering, Treating, and Preventing Infestations, Today’s Veterinary Practice, 2021 Automating and Elevating Ear Cytology 1 in 5 with ear issues** Using microscope*~19M All testing performed in-clinic Sick and well appointments Frequent daily occurrence Among top reasons for visit
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© 2024 IDEXX Laboratories, Inc. All rights reserved. First Ever Comprehensive, In-Clinic Hematology Solution 77 Solving Pain Points Blood Morphology 2 in 3 abnormal CBCs** ~20M Potential morphology* Integrated results Established clinical belief Deeper hematology insights *Estimate based on analysis of multiple data sources including IDEXX U.S. data on file **Analysis of January 2023 IDEXX Data on file n = 8,752 practices
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Advancing Cancer Diagnostics at the Point of Care 78 Coming in 2025: Fine Needle Aspirates Lumps and Bumps 1 in 4 diagnosed with cancer** ~11.5M Using microscope* *Estimate based on analysis of multiple data sources including IDEXX U.S. data on file. **What are the most common types of cancers in dogs? How many dogs typically get cancer? Veterinary Cancer Society; 2021, accessed January 18, 2023 ***Key Opinion Leader focus group estimate based on behaviors of small mixed animal general practices Early cancer diagnosis expands treatment options Today only ~10% of lumps and bumps get tested*** Critical to differentiate cancer from benign inflammation
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX inVue Dx Combines Differentiated IDEXX Capabilities 79 Global Pathologist Network Deep AI Learning trained on 10M+ Samples Connected Software Ecosystem Purpose-built Instrument Platforms
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX SNAP is the Trusted Standard for Rapid Testing Over $1 Billion Global Vector-borne Screening Opportunity* *Total addressable revenue opportunity estimated based on bottom-up modeling at manufacturer or service provider level. Assumes current proportion of household-owned dogs and/or cats visiting the veterinary practice for wellness and/or non-wellness visits and estimated average manufacturer revenue for appropriate diagnostics used in each type of visit. Note that these global opportunities are estimated as of 2023 and are anticipated to grow over time based on the known underlying drivers, e.g., clinical visit growth per practice, net new practice formation and net price realization. **Double-blind primary research study conducted in April – May 2024, Rapid Assay represented by SNAP 4Dx Plus, n = 355, and SNAP Triple, n = 237. Question: All things considered, how likely are you to recommend the following brands to a colleague? Score calculated as % of brand/product users who are ‘promoters’ (9 or 10 on 0-to-10-point scale) minus % of respondents who are ‘detractors’ (0 through 6). Superior Accuracy End-to-end Solution with SNAP Pro® High Advocacy NPS = 78** 80
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© 2024 IDEXX Laboratories, Inc. All rights reserved. SNAP Leish 4Dx Addresses Global Rapid Assay Opportunity 81 Heartworm Ehrlichia Anaplasma Leishmania IDEXX Anywhere Leishmania *Miro G, Wright I, Michael H, et al. Seropositivity of main vector-borne pathogens in dogs across Europe. ParasitVectors. 2022;15(1)189. doi:10.1186/s13071-022-05316-5. **Global Distribution of Canine Visceral Leishmaniasis and the Role of the Dog in the Epidemiology of the Disease Diego Fernandes Vilas-Boas, et al. Pathogens 2024, 13(6), 455 + + + + 2 in 10 Dogs test positive for Leishmania** 1 in 10 Dogs test positive for Leishmania** 1 in 10 Dogs test positive for Leishmania*
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 82
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 83 Michael Lane Executive Vice President and General Manager Reference Laboratories and Information Technology Summer
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Global Reference Labs Michael Lane Executive Vice President and General Manager Global Reference Laboratories and Medical Consulting Services Michael Lane Executive Vice President and General Manager
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Expanded Reference Lab Operations through acquisitions and greenfield sites Setting the Standard for Global Innovation and Patient Care 85 First Reference Lab acquired in Japan VetConnect® PLUS RENAL IDEXX SDMA® IDEXX FGF-23 (‘22) IDEXX Cystatin B (‘23) PARASITOLOGY IDEXX Fecal Antigen® + Flea Tapeworm (’22) + Cystoisospora (‘24) ONCOLOGY IDEXX Cancer Dx, IDEXX Pathology, Radiology, Core Diagnostics IMMUNOLOGY IDEXX SNAP® 4Dx® IDEXX Lyme Quant C6® IDEXX Cardiopet® proBNP IDEXX Anywhere Reflex Testing IDEXX Spec cPL®, fPL® REALPCR Broad menu, ongoing expansion 1994 - 2003 2014 - 20242004 - 2013 Global Operations Broad & Deep Menu Innovation Disease Franchises PATHOLOGY and MEDICAL CONSULTING SERVICES World-class medical consulting
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Strategic Pillars Drive Global Reference Laboratory Excellence 86 World-class Employee Engagement Fully-integrated IDEXX Solution Optimized Global Network Leveraging Globally Integrated Lab and Medical Consulting Network Differentiated Offering Accelerating Novel Dx Menu through Multi-omics Platform Best-in-class Experience Digitizing Customer Experience from End-to-End Operational Excellence Continuously Improving Service Quality and Productivity Advance Standard Of Care Enabling and Supporting Increased Dx Standards of Care Globally
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Software Provides an Unparalleled Digital Experience 87 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 + The go-to resource for clinical decision clarity and practice efficiency
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Reference Labs Leads the Way in Customer Advocacy 88 *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? Score calculated as the percent of respondents who are ‘promoters’ (scoring 9 or 10 on a 0-to-10-point scale) minus the percent of respondents who are ‘detractors’ (scoring 0 through 6 on a 0-to-10-point scale). IDEXX Reference Labs U.S. Net Promoter Score* (NPS) IDEXX Competitor A Competitor B
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Full Diagnostic Solutions Centered on Disease Franchises 89 Renal Parasitology Liver Cardiac Endocrinology Oncology Pathology Infectious Diseases
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© 2024 IDEXX Laboratories, Inc. All rights reserved. < 20% of $4B Global Renal Diagnostic Opportunity Served 90 Renal Diagnostic Testing Total Addressable Opportunity Estimate* + 50% of geriatric cats and dogs have some degree of kidney impairment, and early intervention helps slow progression ** + 1/3 of kidney cases relate to kidney injury *** $1.2 $0.6 $1.8 $1.2 $1.1 $2.3 *Estimate as of 2023, manufacturer or service provider level diagnostic revenue; Includes canine and feline, all major veterinary care delivery country segments. **Brown CA, Elliot J, Schmiedt CW, Brown, SA. Chronic Kidney Disease in Aged Cats: Clinical Features, Morphology, and Proposed Pathogeneses. Vet Pathol. 2016;53(2):309-326. ***Data on file at IDEXX Laboratories, Inc. Westbrook, Maine USA: Data from IDEXX global survey conducted August 2021–September 2021. $1.7B Wellness Diagnostics Non-wellness Diagnostics Total International North America $2.4B $4.1B 19% Estimated Percentage Served in 2023 13% 27%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. \ IDEXX Offers Comprehensive Dx Solution for Renal Health 91 IDEXX FGF-23 for more confident targeted therapy for cats with Chronic Kidney Disease (CKD) IDEXX Cystatin B Test is the first commercial veterinary test to detect kidney injury in dogs and cats IDEXX SDMA® and Creatinine help establish a baseline for kidney health monitoring and early disease detection IDEXX DecisionIQTM Complete Urinalysis for deeper understanding of total kidney health
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX is Reshaping Diagnosis, Treatment of Kidney Disease 92 1 in 5 dogs have an abnormal Cystatin B result* 1 in 7 cats have an abnormal Cystatin B result* Key Opinion Leaders See Significant Value…IDEXX Cystatin B is Uncovering Disease *Based on Cystatin B diagnostic results for December 6, 2023 to July 3, 2024, among 437k tested senior cats and dogs or those patients with suspected kidney disease. **http://www.iris-kidney.com/emerging-theme/active_kidney_injury_biomarkers.html “Cystatin B …has the potential to reshape the future diagnostic and therapeutic directions of kidney disease.”** Statement from the International Renal Interest Society (IRIS), June 2023
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© 2024 IDEXX Laboratories, Inc. All rights reserved. North America Fecal Wellness Opportunity is Under-Served 85% of dog parks tested positive for an intestinal parasite 1 in 5 dogs tested positive for intestinal parasites 50% of dog parks tested positive for hookworms, roundworms or whipworms Study of U.S. Dog Parks Uncovered Significant Fecal Parasite Prevalence* North America Example: Significant Unmet Need for Accurate Fecal Testing in Wellness Visits** *Stafford K, Kollasch TM, Duncan KT, et al. Detection of gastrointestinal parasitism at recreational canine sites in the USA: the DOGPARCS study. Parasit Vectors. 2020;13(1):275. doi: 10.1186/s13071-020-04147-6. **Modeled based on analyses of IDEXX Practice Intelligence data, primary research and secondary sources. Note that an estimated ~40M fecal tests were run in North America in 2023, and ~65% were for wellness visits. 10 15 65 90 Total Wellness Visits North America Wellness Parasitology Testing Opportunity** Millions of Canine and Feline Wellness Visits Across Sector Wellness Visits with No Fecal Test At Point-of-care: Simple Floatation At Reference Lab: O&P and/ or Fecal Antigen Testing 93
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Fecal Dx Redefines Intestinal Parasite Screening 94 Fecal O&P IDEXX Fecal Antigens Whipworm Hookworm Roundworm Technology for Life Approach Has Resulted in Increasing Coverage Over Time Flea Tapeworm Cystoisospora 2014 2015 2022 2024 Parasites added to IDEXX Fecal Antigen Testing IDEXX Fecal Dx® Antigen Testing is More Accurate Giardia 2013 2x Uncovers Almost the Parasitic Infections* *Based on retrospective study with samples submitted to IDEXX Reference Labs for paired IDEXX Fecal Dx antigen with Giardia testing and ova and parasite (O&P) fecal testing, March 6, 2024 - June 6, 2024, 898k samples (85% canine, 15% feline)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. ~20M Dogs Can Benefit from IDEXX Cancer Dx Testing 95 *Based on number of 2023 medicalized dogs, who are at-risk breeds > 4 years or senior dogs ( > 7 years); Diagnostic screen (wellness) addressable patients based on those with chemistry and/or hematology bloodwork in a 2023 wellness visit; Aid-in-Diagnosis (non-wellness) addressable patients based on estimated number of times cancer included in a differential considering cancers contemplated for IDEXX Cancer Dx, based on veterinarians’ stated estimates from quantitative survey with U.S. GPs (n = 319), May 2024. Global estimate extrapolated based on estimated wellness and non-wellness medicalized pet population. Sector revenue estimated at the manufacturer or service provider level. Source: Modeling based on many inputs, including from practice data, primary research, IDEXX diagnostic experience and medical expert opinion. Diagnostic Screen (Wellness) Total Worldwide IDEXX Cancer Dx Canine Addressable Opportunity (canine patients)* IDEXX Cancer Dx has Potential to Capture a Portion of this Over Time 8.1M Other Regions North America Aid in Diagnosis (Non-wellness) 11.9M 4.5M Worldwide 5.2M 9.7M 20M + These higher-risk addressable canine patients represent an estimated new ~$1.1B in potential canine cancer diagnostic revenue + ~$0.3B is currently spent on canine cancer diagnostics
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Diagnose and Characterize Treat Monitor IDEXX Provides Best-in-Class Global Oncology Diagnostics 96 Today, IDEXX has global, best-in-class capabilities in all key oncology diagnostic categories, generating diagnostic results for over 1.5 million cancer cases in 2023 Anatomic Pathology Clinical Pathology Imaging Core Diagnostics Key Diagnostics Today Category Examples biopsy, immunohistochemistry fine needle aspirate, CSF tap, bone marrow aspirate, immunocytochemistry radiography, ultrasound, CT, echocardiography hematology, chemistry, urinalysis Current Standard of Oncology Care Based on Tools Available Patient presents for regular wellness visit Multi-cancer Diagnostic Screen Sensitive, specific diagnostic screening test with financial profile enabling inclusion in wellness diagnostic panel Unmet Need Today
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Cancer Dx Elevates Care through Wellness Screening 97 + 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 inclusion in preventive care profiles + Software and data enable commercial targeting based on breed and age
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Early Human Cancer Detection has Advanced Care, Outcomes 98 0% 20% 40% 60% 80% 100% Localized Breast**** Melanoma***** Colon***** Regional Metastatic * Based on IDEXX Quantitative Research with Dog Owners, May 2024 (n = 480). ** Based on IDEXX Quantitative Research with General Practitioners, April 2024 (n = 319) ***Stage at diagnosis refers to extent of a cancer in the body. If the cancer is found only in the part of the body where it started, it is localized (sometimes referred to as stage 1). If it has spread to a different part of the body, the stage is regional or distant. ****SEER 22 (Excluding IL/MA) 2014–2020, All Races, Females by SEER Combined Summary Stage *****SEER 22 (Excluding IL/MA) 2014–2020, All Races, Both Sexes by SEER Combined Summary Stage ******Diffuse Large B-Cell Lymphoma; SEER 17 2014–2020, All Races, Both Sexes by Ann Arbor Stage. Statistics by stage only include cases coded as Lymphoma or Lymphoma-CLL/SLL in EOD 2018 schema definitions. Localized Regional Metastatic Localized Regional Metastatic Stage I Stage II Stage III Stage IV Lymphoma****** Percentage of U.S. Human Cancer Patients’ 5-Year Relative Survival by Stage of Cancer at Diagnosis*** Dog Owners and Veterinarians See Significant Value in a Diagnostic Screening Test In Human Oncology Cases, Earlier Detection Greatly Improves Health Outcomes 94% of dog owners agreed that early cancer detection would improve treatment outcomes* 89% of GP veterinarians said they would add this test to wellness protocols** Benefits: enhancing the pet’s well-being, increased revenue, and improving pet owner satisfaction
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2017 2019 2023 Execution Drives Global Growth and Profitability 99 2017 2019 2023 Global Reference Lab Diagnostic and Consulting Services Recurring Revenue and Organic Revenue Growth2 12% CAGR 12% CAGR Global Reference Lab Diagnostic and Consulting Services Gross Margin And Average Annual Gross Margin Expansion ~+50bps ~+125bps 2 Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. Reference Lab Diagnostic and Consulting Services revenue is a component of CAG Diagnostics recurring revenue and excludes Digital Cytology Instrument revenue. Gross Margin ~51% $0.7B $0.8B $1.3B
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 100 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, global, profitable growth in key franchises and new categories IDEXX Reference Labs Positioned for Innovation-Driven Growth
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Michael Schreck Executive Vice President and General Manager Veterinary Software Services, Corporate Accounts and Customer Experience Callie
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IDEXX Software Strategy Michael Schreck Executive Vice President and General Manager
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Customers Who Adopt Our Software Grow Faster and Use More Diagnostics 103 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
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Our Software Ecosystem Advances Productivity & Diagnostics 104 Portfolio Analytics Group Oversight Enterprise Security Digital Workflow Referral Management Payments IDEXX Reference Labs IDEXX POC Dx Seamless UX Open APIs AI Pet-Owner Engagement (POE) Unified Data Platform PET OWNER ENTERPRISE PRACTICE VetConnect® Plus + IDEXX DecisionIQ IDEXX VetLab® Station 100% Digital Coupons + Marketplace Care Plans Reminders & Next Action
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Accelerate Cloud Adoption (ezyVet® as flagship PIMS) Deepen Application Adoption (via Vertical SaaS) Expand POE Capabilities (engine for increased Dx demand) Optimize via Digital Workflow Leverage Artificial Intelligence Vertical SaaS Strategy Supports Visit and Diagnostic Growth 105 + ++ Top Software Talent Corporate Accounts Emphasis
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Cloud PIMS have Strong Tailwinds and Positioning 106 18% 20% 20% 42% +5%(2) 2021 2024 9% 16% 17% *IDEXX PIMS Awareness & Perceptions Survey (March 2024, n=499); clinics using competitor PIMS only; represents percentage of practices with “Will Consider” or “May consider” survey response. **Represents YoY change of “May Consider” and “Will Consider” survey response. Intent to Switch Percentage of clinics planning to switch PIMS in the next two years* Clinics evaluating "switching PIMS" likely to consider a given cloud product Percentage of clinics likely to consider a given cloud product** Cloud Competitor A Cloud Competitor B
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Corporate Groups Seek Organic Growth and Productivity *2024E based on acquisition trends as of July 2024; values rounded to nearest 50. **Estimate based on IDEXX data on file from Invoices, RDE, CIS, DataPoint, VC+, IVLS, Salesforce intelligence as of 04/2024. 107 On-Prem Cloud Non-Standardized PIMS Among Corporates** (Estimated) ~30% ~70% 1,550 1,050 500 300 2021 2022 2023 2024E Number of Independent Practice Acquisitions* (North America)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2022 2024F Corporate Groups are Standardizing Software with IDEXX 108 New Corporate Account Bookings (Annual Recurring Revenue) ~3X IDEXX Enterprise Software Resolves Key Corporate Needs Consistent Workflow & Protocols Single, Scaled Software Provider Centralized Control & Visibility Integrated Suite of Applications Enterprise-Class Security
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2020 2022 2024E Cloud On-Prem 27% 46% 59% Total IDEXX PIMS Installed Base (Global): Cloud vs. On-premise* *ezyVet bookings & Install base included in post-acquisition only starting in 2021 35%+ Cloud CAGR PIMS Installed Base has Transitioned to Primarily Cloud… 109 Total IDEXX PIMS Placements (Global) Cloud vs. On-premise* 2020 2022 2024E Cloud On-Prem 61% 87% 93% 32% Cloud CAGR
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© 2024 IDEXX Laboratories, Inc. All rights reserved. …Expanding Annual Recurring Revenue Growth Potential 110 Vertical SaaS Suite Artificial Intelligence Marketplaces Back-office + + + + Payments & Partnerships Digital Workflow & Data Insights Pet-Owner Engagement PIMS “Real Estate”
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 111 IDEXX Cloud Customers Generate More Dx Revenue 100% Digital Workflows Seamless Integrations Standardized Procedures 12-Month Period Before: Competitor PIMS 12-Month Period After: ezyVet *Analyzes N=115 ezyVet customers that migrated from non-IDEXX PIMS in the period spanning 1/2021 to 6/2023. Compares average monthly CAG Dx recurring revenue for the 12 months before activating ezyVet versus the average monthly CAG Dx recurring revenue for the 12 months after activating ezyVet. All customers had VetConnect PLUS (“VC+”) enabled prior to the analysis period. Analysis limited to customers that spend $500+ in diagnostics monthly and have a full 12 months of available diagnostic data during both the pre- and post- period. Includes only customers that remained “Loyal/Loyal” IDEXX practices across the 24-month period. Excludes customers that added additional software during the sample period. The average practice-level CAG Dx recurring revenue growth rate experienced by the overall US IDEXX “Loyal/Loyal” customer base over the same period was ~12% Increase in CAG Dx Recurring Revenue (Avg. Monthly Spend, Before and After Adopting ezyVet*) +17% Competitor PIMS
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Vello: The Clinically-Enabled Pet-Owner Engagement Platform 112 100% Digital End-to-End Personalized Visit Journeys TM BEFORE THE VISIT • Online appointment scheduling • Automated reminders • Pre-appointment instructions • Visit preparation (financing, diagnostics opt-in, education, etc.) • Digital check-in / wait-times • Automated prompts • Patient records / comms are fully integrated inside IDEXX PIMS • Easy follow-up via 2-way text messages • Follow-up scheduling / forward booking • Downloadable medical records DURING THE VISIT AFTER THE VISIT
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Early Vello Practices See More Visits and Diagnostics Revenue 113 *Practice N = 39 Neo and ezyVet Vello customers representing 300K+ practice visits. Analysis compares average monthly total clinic visits for the 12 months prior to adopting Vello to the post-adoption monthly average for practices with 3+ months of Vello usage. Pre- and Post-Adoption averages are first calculated at the practice-level for relevant pre-/post- periods. Practice-level growth rates are then averaged across the sample to arrive at an average metric for the cohort. **Practice N=33 Neo and ezyVet Vello customers. Analysis compares average monthly total IDEXX CAG Dx Recurring Revenue for the 12 months prior to adopting Vello to the post-adoption monthly average for practices with 3+ months of post-adoption Vello usage. Pre- and Post-Adoption averages are first calculated at the practice-level for relevant pre-/post- periods. Practice-level growth rates are then averaged across the sample to arrive at an average metric for the cohort. Increase in IDEXX CAG Dx Recurring Revenue**Increase in Total Visits* 500 750 1000 Pre-Adoption Post-Adoption Pre-Adoption Post-Adoption Monthly Practice Visits 2%+ 11%+ 100,000+ Pet Owners To-Date Monthly Practice Dx Revenue
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Greenline Drives Adoption and Compliance 114 Practice Improvements Elimination of manual coupon processing by staff Modern, personalized client experience at check out Improved compliance Pet Parent Benefits Instant rebate at point of sale More affordable pet medications and products Personalized Offers on Invoice Value Creation for Practice & Pet Parent Since 2019…. • 13,500+ clinics via 20+ PIMS integrations • 20M rebates processed for pet parents • ~$500M in consumer value Pharma Parasiticide Specialty Diet 12-Month Flea & Tick *Includes all rebates via instant rebate or prepaid gift card Invoice for April 12th, 2024
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Using AI to Improve Practice Workflows 115 AI-enabled PIMS workflow • Pre-visit summarization (Q4’24*) • Voice to text transcription (Q4’24*) *Beta release, illustration of software currently undergoing internal testing with IDEXX critical SME’s to validate medical accuracy – Clinic Manager, IDEXX ezyVet Customer …this saves hours per week by helping vets prepare for and perform each consult… “
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2019 2021 2023 We See Strong Momentum from Vertical SaaS Strategy $0 $50 $100 $150 $200 $250 $300 2019 2021 2023 15% CAGR* 59% 66% 77% Systems & Hardware Recurring *2019-2023 4-year Reported Revenue CAGR includes 6% growth impact from ezyVet. **2019-2023 4-year Recurring Revenue CAGR includes 9% growth impact from ezyVet. 24% CAGR 23% Recurring Revenue CAGR** IDEXX Veterinary Software, Services and Diagnostic Imaging Systems Revenue and Revenue Growth ($M) Gross Profit 116
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Software Drives Care Management and Productivity 117 Pet-Owner Engagement Personalization New Dx Product Launches Dx and Visit Growth Best Practice Workflow Enterprise- Grade Software Cloud Adoption Vertical SaaS Pet-Owner Engagement ++
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George Fennell Senior Vice President Chief Revenue Officer Molly
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CREATING CLARITY Break Return in ~10 minutes
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IDEXX Commercial Engagement George Fennell Senior Vice President & Chief Revenue Officer
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Commercial Capabilities Support Innovation-driven Growth 121 + 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 + Innovation creates access while delivering direct and indirect benefits
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Customers have a Shared Desire to Grow 122 Grow the Team New Tests and Tools Drive Efficiency Seeking partners for growth Identify care opportunities Support staff development Onboarding new staff Achieve better professional balance New product and solution awareness Software solutions to streamline workflow Bring me the latest feline testing technology Resources beyond commercial team
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Customers are Adapting to Today’s Environment… 123 Managing the Practice + Staffing challenges + Developing the team Communicating with Pet Owners + Clinical value to clients + Digital channels Embracing Technology + To expand care + Practicing medicine productively
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© 2024 IDEXX Laboratories, Inc. All rights reserved. … and Will Benefit from Next Wave of Innovation 124 PL Catalyst® Pancreatic Lipase Catalyst® SmartQC® New IDEXX VetLab® Station IDEXX Cystatin B Test Detects kidney injury in dogs and cats Fecal DxTM Expansion with Flea Tapeworm and Cystoisospora Point of Care Reference Labs Software IDEXX Cancer Dx Screening Test and Aid in Diagnosis
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Customer-Centric Model Delivers Value in an Integrated Way In the Veterinary Practice Extension of the Practice Medical Consultants Pathologists Digital Radiology Customer Support Veterinary Diagnostic Consultant Professional Service Veterinarian Field Support Representative Software Specialist The IDEXX Learning Center 125
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Modality Sales Reference Lab Instrument OR Direct to Customer IDEXX 360Account Management 2013 2015 2024+2014 2018 Innovation & Utilization Distributor model for recurring revenue Fully direct customer-centric model Enabling customer choice of Dx modality Installed Base Growth Driving Adoption of IDEXX Innovations and Increased Dx Utilization 126 Best Practices Developed Over a Decade, Now Applied Globally Evolution of IDEXX U.S. Commercial Model
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Commercial Expansions Develop Global Opportunity 127 Germany South Korea France Spain Brazil Italy Japan 2021 2022 Sales Operations Global Commercial Systems Global Customer SupportEducation & Training Marketing 2023 United States
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© 2024 IDEXX Laboratories, Inc. All rights reserved. *EU region is the average of the top five largest countries (Germany, France, UK, Spain and Italy) that utilize the IDEXX Commercial (VDC) Model Focus on Driving Reach in International Regions 128 2023 Reach to Revenue 264 112 Animal Practices per Territory2023 Reach to Customer 27% 83% 72% 94%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 14% 21% Our Customers Grow Faster When We Call on Them 2023 Year-Over-Year Average Quarterly Growth in CAG Revenue (%)* Loyal IDEXX Customers** Competitive Practices*** *Revenue Growth Methodology: Customer classification as ‘Loyal IDEXX’ or ‘Competitive Practices’ is based on customer status as of the beginning of the measurement period for each quarter. Growth rate calculation is measured as the current period over the same period of the prior year. Revenue measured in determining growth includes IDEXX Reference Lab, IDEXX VetLab® and IDEXX Rapid Assay revenues. **Practices that are Loyal IDEXX customers use most of their diagnostic services from IDEXX, defined as generating more than a threshold level of average IDEXX Chemistry and reference lab revenue per month over past 6 months. ***Practices that are Competitive Practices use most of their diagnostic services from IDEXX competitors, defined as generating less than a threshold level of average IDEXX Chemistry and reference lab revenue per month over past 6 months. Country CCountry BCountry A 18% 23% 9% 11% 119%93%164% International Customers Called On Customers Not Called On 129
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© 2024 IDEXX Laboratories, Inc. All rights reserved. $45 Billion Underserved Global Opportunity in Diagnostics 130 North America Region Latin America Region Europe Region Asia Pacific Region 22% Served 8% 9% 2% *Total addressable companion animal diagnostics revenue opportunity estimated based on bottom-up modeling at manufacturer or service provider level. Assumes current proportion of household-owned pets visiting the veterinary practice for wellness and non-wellness visits; ‘medically optimal’ percentage of these visits that should include at least 1 diagnostic and estimated average manufacturer revenue for appropriate diagnostics used in each type of visit. Note that this global opportunity is estimated as of 2023 and is anticipated to grow over time based on the known underlying drivers, e.g., clinical visit growth per practice, net new practice formation and net price realization. Worldwide Total Addressable Companion Animal Diagnostics Revenue Opportunity (~$45B Total, ~15% served)* $17B $7B $7B $14B
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 131 0 20 40 60 80 100 Top 15 Countries in terms of Diagnostic Segment Revenue 2023 Estimated Diagnostic Revenue per Companion Animal Practice Relative to the U.S.* *Revenue per country estimated at the manufacturer level. Includes reference lab, telemedicine, in-house instruments and consumables, rapid assay, manual microscopy, and ‘similar’ types of diagnostics. Excludes veterinary software, digital, and ultrasound. Figures are scaled to a baseline of US = 100 with foreign currencies converted into USD based on 2023 average exchange rates. Underdeveloped International Diagnostic Testing Opportunity
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 80% 20% United States Germany Australia Japan Italy Spain United Kingdom France *Test volume at IDEXX Reference Laboratories by region. **Routine testing includes: Chemistry, Hematology, Endocrinology, Fecal Antigen, Parasitology (O&P), Serology and Urinalysis Routine Testing** Non-Routine Testing International Opportunity to Broaden Routine Testing 132 2023 Routine vs. Non-Routine Testing Revenue by Country* (%)
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Commercial Capabilites Enable Placement Momentum 4k 19k 2010 2015 2019 2023 *Premium chemistry includes Catalyst Dx® Chemistry Analyzer and Catalyst One® Chemistry Analyzer, premium hematology includes ProCyte Dx® Hematology Analyzer, ProCyte One® Hematology Analyzer and LaserCyte® Hematology Analyzer and urinalysis includes SediVue Dx® Urine Sediment Analyzer. Worldwide Premium Instrument Placements* U.S. International Placement Drivers + Development of instrument suite + Instrument fit to regional needs + Customer hunger for technology + Customer-friendly marketing programs 133 ~5X
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Engagement Inspires Adoption of Multi-Modality Offering 134 57% +100bps vs. 2022 IDEXX Ref Lab ONLY Customers IDEXX VetLab® ONLY Customers Percentage of IDEXX Reference Lab or IDEXX In-house Chemistry Platform Customers Who are IDEXX Customers for Both* Companion Animal Customer Overlap 34% +300bps vs. 2022 * Analysis as of the end of FY’2023. 43% +300bps vs. 2022 United States Germany Spain International Expansion Countries
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Customer “Solutions Orientation” Enables Innovation at Scale 135 Driving Wellness Diagnostics Uncover More with Relevant Diagnostic Solutions Drive New Business, Loyalty and Dx Utilization + SDMA + Fecal Antigen + Cystatin B + Oncology + Catalyst PL (coming soon) Preventive Care Simple Start Innovation and Differentiated Diagnostics and Software Customized Marketing Programs with IDEXX360
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Using Data to Drive Increased Diagnostics Utilization 136 Patient-centric data Relevant Benchmarks Everest Veterinary Services 1 in 5 dogs Updated on Aug 3, 2024: Had clinically relevant findings across all internal health results at Everest Veterinary Services Monongalia County Combined Everest Veterinary Services Aligned to regional prevalence Positive Rates Near You West Virginia Intestinal Parasites Internal HealthHW Tick Borne Puppy Young Adult Mature Adult Senior Disease Franchises Actionable Prevalence Information
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© 2024 IDEXX Laboratories, Inc. All rights reserved. True Innovations Eliminate Work in Relevant Testing Categories 137 Ear Cytology Automate & Elevate Blood Morphology Most Comprehensive Hematology Coming in 2025: Fine Needle Aspirates Contextualized Results in Minutes Work Performed Today Using Traditional Methods Revolutionary slide-free workflow
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© 2024 IDEXX Laboratories, Inc. All rights reserved. IDEXX Cancer Dx Supported by Engagement, Education, Tools 138 Making IDEXX Cancer Diagnostics Mainstream Sector Development Focus + Robust, expanding clinical evidence and KOL advocacy + Top ranked Professional Service Veterinarian group* + Clinician Belief, Education, Support, Utilization of new paradigms + IDEXX Preventive Care Platform enables Premium Wellness Screen *Brakke manufacturer and distributor performance study, fielded in the U.S. during May – June, 2023 (n = ~1,600 veterinarians). IDEXX,peer group includes Zoetis, Antech, Heska, and Boehringer Ingelheim.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 on Tenure, Trust and Expertise 139
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Brian McKeon Executive Vice President Chief Financial Officer Daisy
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IDEXX Financial Review Brian McKeon Executive Vice President and Chief Financial Officer
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 142 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 and high ROIC
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Consistent, Focused Strategy Delivers Strong Results 2, 5, 6, 7Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. *Our multi-year goals represent annual gains assuming foreign currency exchange rates remain the same and excluding year-over-year changes in share-based compensation tax benefits and non-recurring or unusual items. **Reflects $16M G&A expense benefit related to customer contract resolution payment in Q1’23 which adds 10bps to 2019 – 2023 Annual Operating Margin Gains and 1% to 2019 – 2023 Annual EPS Growth. ROIC7 48% in 2023 143 2015-2019 2019-2023 Multi-Year Goals* Organic Revenue Growth CAGR2 11% 12% 10%+ Annual Operating Margin Gains** (Average Annual Comparable Operating Margin Gain)5 140 bps 180 bps 50 - 100 bps Annual EPS Growth** (Average Annual Comparable EPS Growth)6 26% 22% 15% - 20%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Significant Global Expansion of CAG Dx Recurring Revenues - 0.5 1.0 1.5 2.0 2.5 3.0 2015 2019 2023 U.S. International Organic Revenue CAGR2CAG Diagnostics Recurring Revenue Organic Revenue Growth2 2Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. 13% CAGR 13% CAGR 2015 – 2019 12% 14% 2019 – 2023 13% 13% ($ Billions) 144
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Software Adds Durable, High Return Recurring Revenues Recurring Software Services Growth Drivers Expansion of cloud-based solutions and applications + WW installed base growth 50%+ since 2017 + Growth in cloud-based services Strategic Acquisitions + 2021 ezyVet® + 2024 Greenline®0 100 200 300 2015 2019 2023 Recurring Non-recurring Veterinary Software, Services and Diagnostic Imaging Revenue and Recurring Revenue Organic Growth 3 3Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. 20% CAGR 12% CAGR ($ Millions) Recurring Revenue Organic Growth 145
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2017 - 2019 2020 - 2021 2022 - 2024E** IDEXX Execution Drives Solid Growth Off Expanded Base Average Annual Worldwide CAG Diagnostics Recurring Revenue Normalized Organic Growth3 Net Price Utilization Clinical Visits (Global)* 3Multi-year periods 2017 – 2019 and 2020 – 2022 reflect average annual organic revenue growth; Non-GAAP financial measure, please refer to the Appendix for descriptive footnotes. *Clinical visits reflects U.S. clinical visit growth and estimated International clinical visit growth. **2024E based on midpoint of guidance range communicated on August 6, 2024. Please refer to our Safe Harbor Disclaimer. ~ 11% ~ 8%-9% New Business & Core Installed Base Expansion ~ 16% ~ 12% ~ -2% 146 IDEXX Execution Growth Drivers ~ 3%-4% ~ 6%-7% ~ 9%-10% ~ 9% Net Price ~ 3%-4% ~ 6%-7%~ 2%-3%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Post-Pandemic Transition Constraining Clinical Visit Growth 100 105 110 115 120 125 130 135 H1'18 H2'18 H1'19 H2'19 H1'20 H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 H2'23 147 Source: Analysis of IDEXX Practice Intelligence data, n = ~9,160 practices. Note that ‘clinical visits’ are those where the reason for visit involves an interaction between a clinician and a pet, including wellness and non-wellness visit types. U.S. Half-year Average Clinical Visits per Practice Indexed with each 2017 half-year = 100 Step-up in Pet Ownership Points to Underserved Opportunity Long-term Clinical Visit Drivers + Expanded and Aging Pet Population + Continued Humanization of Pets and Favorable Pet Owner Demographics + Clinic Focus on Organic Growth and Staff Productivity Enablement + Opportunity for Enhanced Pet Owner Engagement 2018 2019 2020 20222021 2023 2024 ~ 2 - 3% avg growth per practice per year Pre-pandemic period 5%+ avg growth per practice per year Pandemic period Historical trend with step-up in pet ownership Post-pandemic period Actual Average Visits
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Future Growth Drivers: Robust Innovation Pipeline Year 1 Year 2 Year 3 Year 4 Year 5 Consumable Capital New Innovation +2%+ Contribution to Long-term Global CAG Diagnostics Recurring Revenue Growth Potential Key Innovation Areas + New Point of Care Platforms + Disease Franchises + New Menu Extensions + Expanding Software Solutions 148 Estimated IDEXX inVue Dx Cellular Analyzer Revenue
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Future Growth Drivers: Global Installed Base Expansion 149 *All figures are rounded. Core Global Placement Opportunity includes Catalyst Dx Chemistry Analyzers, Catalyst One Chemistry Analyzers, ProCyte Dx Hematology Analyzers, ProCyte One Hematology Analyzers, LaserCyte Hematology Analyzers and SediVue Dx Urine Sediment Analyzers and excludes practices too small to be likely candidates for chemistry analyzers at this time. Second placements are excluded. **New platforms includes IDEXX inVue Dx Cellular Analyzer and incremental point of care analyzer in development. 2023 135k Chemistry Hematology Urinalysis New Platforms** Global Installed Base Potential 10%+ Annual Installed Base Growth Potential U.S. International Core Global Placement Opportunity* ~240k Global Incremental IDEXX Premium Instrument Placement Opportunity*
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Future Growth Drivers: Higher Diagnostic Utilization (U.S.) 13% 18% 19% 0% 5% 10% 15% 20% 25% 30% 150 % of U.S. Clinical Visits including Bloodwork* 20192010 2023 + 0.5% per year + 0.5% per year + 0.5% Annual U.S. Expansion Drives ~ 1 – 1.5% Global CAG Diagnostics Recurring Revenue Growth Source: Based on an analysis of IDEXX Practice Intelligence data from ~2,100 to 5,200 practices. Bloodwork includes chemistry and/or hematology testing. ‘Clinical visits’ are those where the reason for visit involved an interaction between a veterinary clinician and a pet, including wellness and non-wellness visit types. Percentages rounded to the nearest 1% and average annual changes rounded to nearest 0.5%.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Future Growth Drivers: Raising Global Diagnostic Standards 151 0 20 40 60 80 100 Top 15 Countries in terms of Diagnostic Segment Revenue 2023 Estimated Diagnostic Revenue per Companion Animal Practice Relative to the U.S.* *Revenue per country estimated at the manufacturer level.Includes reference lab, telemedicine, in-house instruments and consumables, rapid assay, manual microscopy, and ‘similar’ types of diagnostics. Excludes veterinary software, digital, and ultrasound. Figures are scaled to a baseline of US = 100 with foreign currencies converted into USD based on 2023 average exchange rates.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Future Growth Drivers: Cloud-Based Software and Services 152 15%+ Annual Recurring Revenue Organic Growth Opportunity Vertical SaaS Suite Artificial Intelligence Marketplaces Back-office + + + + Payments & Partnerships Digital Workflow & Data Insights Pet-Owner Engagement PIMS “Real Estate”
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2022 - 2024E** LT Opportunity Innovation and Execution Support Long-Term Growth Potential Average Annual Worldwide CAG Diagnostics Recurring Revenue Organic Growth2 Net Price Utilization & New Innovation Clinical Visits (Global)* 2Multi-year period 2022 – 2024 reflects average annual organic revenue growth; Non-GAAP financial measure, please refer to the Appendix for descriptive footnotes. *Clinical visits reflects U.S. clinical visit growth and estimated International clinical visit growth. **2024E based on midpoint of guidance range communicated on August 6, 2024. Please refer to our Safe Harbor Disclaimer. 11% - 14% New Business & Core Installed Base Expansion ~ - 2% 153 IDEXX Execution Growth Drivers ~ 3% ~ 3% ~ 9% ~ 2% ~ 6%-7% 2.5% - 3% 3.5% - 4%+ 2.5% - 4% 8.5% - 11%
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Mid-Single Digit 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 VSS & DI LPD Recurring 15%+ 11% - 14% Global CAG Dx 2Non-GAAP financial measure, please refer to Appendix for descriptive footnotes *Includes CAG Diagnostics capital – instruments and Veterinary software, services and diagnostic imaging systems and hardware Water High Single Digit 10%+ Annual Growth Potential CAG Capital* 5% - 10% 154 International U.S.
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 18.7% 23.0% 29.0% 30.0% 10% 15% 20% 25% 30% 2015 2019 2021 2023* Targeting Continued Solid Annual Operating Margin Gains Annual Operating Margin and Average Annual Comparable Operating Margin Expansion5 (bps) 5 Non-GAAP financial measure, please refer to Appendix for footnotes. *2023 Reported Operating Margin includes 40bps benefit from $16M G&A expense benefit related to customer contract resolution payment in Q1’23, which increased 2021-2023 annual comparable operating margin expansion by 20bps. ** This long-term goal represents our annual gain assuming foreign currency exchange rates remain the same and excluding non-recurring or unusual items. +140 Long-term Goal** +50 - 100 bps Average Annual Comparable Gains Key Drivers + 60%+ incremental CAG Diagnostics recurring revenue gross margins + Lab productivity gains + Solid net price realization + Improved segment contribution (software) + Opex leverage (net of reinvestment) +280 155 +80*
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Global Commercial Expansion and Sales Enablement Investment Focus Aligned with Strategic Growth Priorities M&A and R&D In-license Activity 2017 – H1’24* *Represents total cash spending on acquisitions and includes Acquisitions of intangible assets and equity investments, as well as Acquisitions of a business, net of cash, as reported in the Condensed Consolidated Statements of Cash Flows of the Company’s Annual Reports on Form 10-K for the years ended December 31, 2017 through December 31, 2023 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, available at www.idexx.com/investors. Reference Labs Information Management & Software Point of Care Technology In-license ~ $490MM Other Innovation R&D Key Growth Investments Areas Customer-facing Software Data and AI 156
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Strong Cash Flow Driven by High Net Income Conversion 0% 25% 50% 75% 100% 2019 2020 2021 2022 2023 2024E* 8Non-GAAP financial measure, please refer to Appendix for footnotes. *2024E based on midpoint of guidance range communicated on August 6, 2024. Please refer to our Safe Harbor Disclaimer. Free Cash Flow % of Net Income8 Large facility projects Free cash flow Discrete R&D 157 Key Cash Flow Highlights + Consistent long-term target for high conversion to free cash flow • 80 - 90% of net income + Low capital investment intensity • 4 - 5% of revenue + Current trends aligned with long- term goals
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2'24 Conservative Balance Sheet -- Flexibility for Capital Allocation Debt to Adjusted EBITDA9 Ratio 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x Net Gross 9Non-GAAP financial measure, please refer to Appendix for footnotes. 158
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Capital Allocation Aligned with Shareholder Value Creation 34% 48% 2016 2023 Capital Allocated to Share Repurchases* 7Non-GAAP financial measure, please refer to Appendix for descriptive footnotes. *Average purchase prices adjusted for 2:1 stock split in November 2007 and 2:1 split in June 2015; excludes 1% excise tax (U.S. 1% excise tax effective January 1, 2023). After-Tax Return on Invested Capital, Excluding Cash & Investments7 1999 - 2014 2015 - 2023 $2.4B $3.5B $22 avg purchase price $198 avg purchase price Over 46% reduction in weighted avg share count since 1999 159
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Strong Long-Term Revenue and EPS Growth Potential 160 Revenue Growth 10%+ Operating Margin Expansion 50-100 bps Capital Allocation Leverage 1%-2% Incremental EPS Growth Long-term EPS Growth Potential** 15%-20% Long-term Financial Model* (Average Annual Comparable Gains) *Long-term financial model excludes impacts from changes in foreign currency exchange rates and non-recurring or unusual items. **EPS growth potential outlook further excludes year-over-year changes in share-based compensation tax benefits.
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CREATING CLARITY Appendix
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 diagnostic services to our LPD segment to more effectively align our business with the nature and customers of these livestock services. Revenue and revenue growth calculations have been retrospectively revised to reflect this change in the composition of our reportable segments. The impact on CAG Diagnostics recurring revenue growth was not material. 2 Organic Revenue Growth and CAGR: Organic revenue growth and CAGR are non-GAAP financial measures and represent the percentage change in revenue for a measurement period, as compared to the prior year period, or the compound annual growth rate in revenue over a period of time, as the case may be, excluding the impact of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. Management believes that reporting organic revenue growth and CAGR provides useful information to investors by facilitating easier comparisons of our revenue performance with prior and future periods and to the performance of our peers. Organic revenue growth and CAGR should be considered in addition to, and not as replacements of or superior measures to, revenue growth and CAGR reported in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Effective January 1, 2018, we exclude only acquisitions that are considered to be a business (consistent with ASU 2017‐01, Business Combinations: (Topic 805) Clarifying the Definition of a Business) from organic revenue growth. For more detail on what acquisitions we consider to be a business in computing organic growth, please see Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations and Trends – Non‐GAAP Financial Measures, contained in the Company’s Annual Report on Form 10‐K for the year ended December 31, 2023, available at www.idexx.com/investors. See tables included in Footnote 3, Normalized Organic Revenue Growth for reconciliation of Total Company, Worldwide CAG Diagnostics Recurring, U.S. CAG Diagnostics Recurring, International CAG Diagnostics Recurring, Global VetLab Recurring, Global Reference Labs Diagnostics and Consulting recurring, and Veterinary Software, Services and Diagnostic Imaging Systems (VSS & DI) organic revenue growth and CAGR to revenue growth and CAGR reported in accordance with GAAP. 3 Normalized Organic Revenue Growth: Normalized organic revenue growth and CAGR are non-GAAP financial measures that represent organic revenue growth and CAGR as defined in note 2 above, normalized for the effects of our transition to an all-direct sales strategy in the U.S., which was effected fully by January 1, 2015, on revenue growth for the relevant period(s) in 2014 and 2015. Management believes that reporting normalized organic revenue growth and CAGR is a more useful way to measure business performance because it enables better period-over-period comparisons of the fundamental financial results by excluding one-time transitional growth rate impacts. Normalized organic revenue growth and CAGR should be considered in addition to, and not as replacements of or superior measures to, revenue growth or CAGR reported in accordance with GAAP. As part of our transition to an all-direct sales strategy in the U.S. in 2015, we began to capture additional revenue that was previously earned by our distribution partners, net of other changes related to this all-direct strategy, such as free next-day shipping and a new returns policy for expired product. We refer to this net additional revenue as distributor margin capture, and 2015 revenue has been adjusted ~$40 million to exclude this impact. Amounts presented may not recalculate due to rounding. Footnotes 162
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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% 11% 13% Currency Impact 4 0% 1% -2% 0% 2% -3% 0% 0% -1% 0% 1% -2% -1% 0% 0% -1% Acquisition Impact 0% 0% 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Organic Revenue Growth 13% 13% 12% 15% 18% 8% 11% 7% 7% 13% 16% 9% 10% 13% 11% 13% Margin Capture Adjustment 1% New Revenue Standard Adjustment 1% 1% Normalized Organic Revenue Growth 12% 12% 16% 9% 9% 13% 11% 13% CAGRAverage Annual Global IDEXX VetLab Recurring 2015-2019 2019-2023 Reported Growth 15% 14% Acquisition Impact 1% 0% Currency Impact 4 -1% -1% Organic Revenue Growth 15% 15% CAGR Global Reference Labs Dx and Consulting Services Recurring 2017-2019 2019-2023 Reported Growth 12% 12% Acquisition Impact 0% 0% Currency Impact 4 0% 0% Organic Revenue Growth 12% 12% CAGR 3 Normalized Organic Revenue Growth, continued: Footnotes 163 Total Company 2010-2015 2015-2019 2018-2023 2019-2023 Reported Growth 8% 11% 11% 11% Currency Impact 4 -1% 0% -1% -1% Acquisition Impact 0% 0% 0% 0% Organic Revenue Growth 9% 11% 11% 12% Margin Capture Adjustment 1% Normalized Organic Revenue Growth 8% 11% 11% 12% CAGR U.S. CAG Diagnostics Recurring 2015-2019 2019-2023 Reported Growth 12% 13% Acquisition Impact 0% 0% Organic Revenue Growth 12% 13% CAGR International CAG Diagnostics Recurring 2015-2019 2019-2023 Reported Growth 13% 12% Acquisition Impact 0% 0% Currency Impact 4 1% 2% Organic Revenue Growth 14% 13% CAGR VSS & DI Recurring 2015-2019 2019-2023 Reported Growth 12% 20% Currency Impact 4 0% 0% Organic Revenue Growth 12% 20% CAGR
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015-2019 2019-2021 2018-2023 2019-2023 2021-2023 Operating Margin (as reported) 18.7% 19.7% 21.0% 22.2% 23.0% 25.7% 29.0% 26.7% 30.0% Operating margin gain (as reported) 100 120 120 80 270 330 (230) 330 110 bps 300 bps 160 bps 180 bps 50 bps Comparability Adjustments (bps): Change from currency (30) (120) (10) (10) 10 (30) 10 10 (60) Software impairment charge (50) CEO transition charges (60) Ongoing litigation matter (100) Comparable operating margin 19.5% 20.9% 21.1% 22.3% 23.4% 27.0% 28.8% 26.6% 30.6% Comparable operating margin gains 170 bps 140 bps 130 bps 120 bps 340 bps 220 bps -240 bps 390 bps 140 bps 280 bps 170bps 180 bps 80 bps For the Year Ended December 31, Average Annual 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 comparisons with prior and future periods. We estimated the net impacts of currency on our revenue, gross profit, operating profit, and EPS results by restating results to the average exchange rates or exchange rate assumptions for the comparative period, which includes adjusting for the estimated impacts of foreign currency hedging transactions and certain impacts on our effective tax rates. Because currency impacts are calculated using current comparative period rates they may vary from previously reported amounts. See Footnote 2, Organic Revenue Growth and CAGR, and Footnote 3, Normalized Organic Revenue Growth and CAGR for further details of currency impacts on revenue growth. See Footnote 5, Comparable Operating Margin Gain (or Expansion), and Footnote 6, Comparable EPS Growth, for further details of currency impacts on operating margin gain and EPS growth, respectively. 5 Comparable Operating Margin Gain (or Expansion): Comparable operating margin gain (or expansion) is a non-GAAP financial measure and excludes the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Comparable operating margin gain (or expansion) for a measurement period is calculated using the measurement period’s comparable Operating Margin and the prior base period’s comparable Operating Margin excluding change from currency. Management believes that reporting comparable operating margin gain (or expansion) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable operating margin gain (or expansion) should be considered in addition to, and not as a replacement of or superior measure to, operating margin gain reported in accordance with GAAP. The reconciliation of comparable operating margin gain (or expansion) is provided in the table below. Amounts presented may not recalculate due to rounding. 164 Footnotes
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and non-recurring or unusual items. Comparable EPS growth for a measurement period is calculated using the measurement period’s comparable EPS and the prior base period’s comparable EPS excluding change from currency. Management believes comparable EPS growth is a more useful way to measure the Company’s business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provide greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. The reconciliation of this non-GAAP financial measure is provided in the table below. Amounts presented may not recalculate due to rounding. 165 Footnotes 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 - 2019 2018 - 2023 2019 - 2023 EPS growth (as reported) 19% 20% 45% 15% 37% 28% -7% 25% 25% 20% 21% Earnings per share (diluted) $ 2.05 $ 2.44 $ 2.94 $ 4.26 $ 4.89 $ 6.71 $ 8.60 $ 8.03 $ 10.06 Software impairment charge (0.06) Change from currency (0.16) (0.20) (0.02) 0.01 (0.05) (0.06) 0.16 (0.22) (0.24) Share-based compensation activity 0.30 0.24 0.22 0.45 0.38 0.15 0.16 Impact of U.S. Tax Reform (0.34) Impact of foreign tax credit utilization 0.04 CEO transition charges (0.14) Switzerland Tax Reform 0.25 Ongoing litigation matter (0.24) Comparable EPS $ 2.27 $ 2.64 $ 2.96 $ 4.01 $ 4.86 $ 6.31 $ 8.06 $ 8.10 $ 10.14 Comparable EPS Growth 25% 21% 36% 21% 31% 29% -1% 29% 26% 22% 22% For the Year Ended December 31, Average Annual
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© 2024 IDEXX Laboratories, Inc. All rights reserved. Numerator (amounts in millions) 2015 2016 2022 2023 Income from operations (as reported) 300$ 350$ 899$ 1,097$ After-tax income from operations * 223$ 258$ 710$ 874$ Denominator (dollar amounts in millions) 2015 2016 2022 2023 Total shareholders’ equity (deficit) (84)$ (108)$ 609$ 1,485$ Credit facility 573$ 611$ 579$ 250$ Long-term debt 597$ 593$ 769$ 698$ Deferred income tax assets (55)$ (107)$ Deferred income tax liabilities 49$ 39$ 8$ 7$ Total invested capital 1,135$ 1,135$ 1,910$ 2,332$ Less cash & marketable securities 343$ 392$ 113$ 454$ Total invested capital, excluding cash and investments 792$ 743$ 1,797$ 1,878$ Average invested capital, excluding cash and investments ** 768$ 1,625$ 1,838$ After-tax return on invested capital, excluding cash and investments 34% 48% * After-tax income from operations represents income from operations reduced by our reported effective tax rate. ** Average invested capital, excluding cash and investments, represents the average of the amount of total invested capital, excluding cash and investments. For the Year Ended December 31, As of December 31, 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 cash and investments, using beginning and ending balance sheet values. After-tax return on invested capital, excluding cash and investments, after-tax income from operations, and average invested capital, excluding cash and investments are not measures of financial performance under GAAP and should be considered in addition to, and not as replacements of or superior measures to, return on assets, net income, total assets or other financial measures reported in accordance with GAAP. Management believes that reporting after-tax return on invested capital, excluding cash and investments, provides useful information to investors for evaluating the efficiency and effectiveness of our use of capital. The reconciliation of this non-GAAP financial measure is as follows: 166 Footnotes
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© 2024 IDEXX Laboratories, Inc. All rights reserved. 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 free cash flow to net income is a non-GAAP financial measure and means, with respect to a measurement period, the quotient of free cash flow divided by net income. Management believes free cash flow is a useful measure because it indicates the cash the operations of the business are generating after appropriate reinvestment for recurring investments in property and equipment that are required to operate the business. Management also believes the ratio of free cash flow to net income provides a useful way to compare free cash flow over different time periods. Free cash flow and the ratio of free cash flow to net income should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. For a reconciliation of free cash flow and the ratio of free cash flow to net income for each of the year’s presented in these materials, see the Company’s Definitive Proxy Statement filed in each of 2020, 2021, 2022, 2023 and 2024, available at www.idexx.com/investors, for the prior fiscal year’s free cash flow and ratio of free cash flow to net income reconciliation. To estimate projected 2024 free cash flow to net income ratio, we have assumed purchases of property and equipment (also referred to as capital expenditures) of approximately $180 million. 9 Debt to Adjusted EBITDA: Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt and net debt in the Debt to Adjusted EBITDA ratios provides supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under the Company's credit facility. For reconciliations to Adjusted EBITDA, gross debt, net debt and the Debt to Adjusted EBITDA Ratio are calculated, see the table below for the years ended December 31, 2014 and 2015, as well as the Company’s Annual Report on Form 10-K for the years ended December 31, 2016 through 2023, and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, available at www.idexx.com/investors. 167 Footnotes Trailing 12 months adjusted EBITDA ($M) 2014 2015 Net income attributable to stockholders 181,906 192,078 Interest expense 15,429 29,239 Provision for income taxes 64,604 81,006 Depreciation and amortization 58,888 68,956 Acquisition-related expense - - Share-based compensation expense 18,099 19,884 Extraordinary and other non-recurring non-cash charges 30,349 8,212 Adjusted EBITDA 369,276 399,375 Debt to Adjusted EBITDA Ratio ($M) Line of credit 549,000 573,000 Current and long-term portion of long-term debt 350,000 597,085 Total debt 899,000 1,170,085 Capital leases 162 441 Deferred financing costs 6,288 5,884 Gross Debt 905,450 1,176,410 Gross debt to Adjusted EBITDA ratio 2.5 2.9 Cash and cash equivalents (332,536) (342,585) Net Debt 572,914 833,825 Net debt to Adjusted EBITDA ratio 1.6 2.1 For the Year Ended December 31,