VETOQUINOL Corporate brochure 2007 (year 2006)

SECTOR AND VOCATION AN INTERNATIONAL MARKET WORTH 16 BILLION DOLLARS: 6 MARKETS, 2 AREAS Six markets (North America, Western Europe, Asia-Pacific, South America, Eastern Europe and the Rest of the World) are divided between two main areas of the animal health market: • The first area comprises North America and Western Europe, i.e. 2/3 of the developed, mature international market. It is characterised by strong growth, particularly in the “companion animals” sector. • The second area is Asia-Pacific, South America and Eastern Europe. These make up the developing markets, charac- terised by the growing need for animal protein and the emerging companion animals market. The Rest of the World totals less than 3% of the world animal health market i.e. 0.4 billion dollars. If we compare Vétoquinol’s turnover with the size of the world market, including only the therapeutic fields and areas where the group has chosen to operate, its relevant market share is about 5%. 2007 2011 +0.7% +2.1% +2.5% +2.0% +1.4% MARKET BY GEOGRAPHIC AREA ● Rest of the World ● Latin America ● Asia-Pacific ● North America ● Europe 2007 2011 +0.3 % +1.7 % +1.3 % +1.2 % +2.6 % MARKET BY SPECIES ● Sheep ● Poultry ● Pigs ● Cattle ● Companion animals 18 - 19 2. A GROWING MARKET As a yearly average from 2007 to 2011, volume growth is expected to reach 1.8%, which is a 4 to 5% increase in value (source: Wood Mackenzie 2007). 3. A MARKET OF PROFESSIONALS Animal health is closely linked to the protection of human health, so it is governed by manufacturing, scientific and environmental legislation and regulations which are more and more rigorous and complex. This market is subject to constantly changing legislation. Fifteen international groups, the largest of whom are pharmaceutical companies operating in both human and ani- mal health, hold 80% of the world market. The remaining 20% are owned by a myriad of local players who are looking to make alliances now or in future, in view of increasingly heavy investments. The animal health market is becoming more and more spe- cialised. This trend will reinforce the role of veterinarians who are pivotal in the prescription process. Source: Wood Mackenzie – 2007