VETOQUINOL Corporate brochure 2012 (year 2011)

06 STRATEGY The Vétoquinol Group operates in a highly competitive market in which the ability to develop and market innovative products is a key factor of success. Present in 23 countries on 5 continents, Vétoquinol continues to implement its strategy of expansion and growth in Europe, Asia Pacific and the Americas. EXPANDING THE PRODUCT PORTFOLIO, THE KEY TO FUTURE SUCCESS Vétoquinol has shown a remarkable ability to keep up with developments in a sector that has undergone a fundamental transformation over the past fifty years. At the turn of the 20 th century, so-called veterinary medicines meant a hand full off molecules plus a hundred or so natural products. Nowadays, veterinary medicines are commonly derived from synthetic molecules, making research a key factor. Vétoquinol has shown a remarkable ability to keep up with developments. The fact that it has designed, registered and manufactured a wide range of over 700 drugs and non-medical products is ample proof of its capabilities. The Group’s strength lies in the fact that it is able to sell its products all over the world. Its unflagging dedication to innovation in the laboratory, quality relations with veterinarians and inventive marketing have generated a steady flow of sales. The Group’s organic growth is based on the ramp-up of new products over the past three years, including Surolan ® , Marbocyl ® in Japan, Kefloril ® , Ceftiocyl ® , Cimalgex ® , Flevox ® and Forcyl ® . Vétoquinol has great expectations for the most recently launched products, in spite of the fact that new products had only a marginal impact on 2011 sales. DIVERSIFYING INTO REGIONS WITH HIGHER GROWTH POTENTIAL Vétoquinol’s second strategic strength lies in its ability to globalize its business. In its quest to conquer new markets through the acquisition or creation of subsidiaries in the countries concerned, Vétoquinol is constantly engaged in analyzing market and product potential and studying large numbers of company dossiers with a view to potential inclusion in the Group. Each new acquisition is a fresh opportunity for Vétoquinol to showcase its talents as an integrator. It is clear that setting up local subsidiaries in foreign countries requires in-depth knowledge of the local veterinary medical and pharmaceutical system as well as the laws of each country. This strategy continued in 2011 with the acquisition of Farmagricola SA in Brazil. Farmagricola is a family business, founded in 1964, with revenues of € 8 million. Vétoquinol intends to continue its expansion into high growth potential markets, particularly India, while ensuring the successful integration of the new Brazilian subsidiary. The breakdown of revenues clearly illustrates the Group’s global reach, growth potential and strategic geographical areas. 83% of Group revenues are generated outside France. The most buoyant markets, Asia Pacific and the Americas, account for nearly 39% of sales and offer continuing growth prospects in the future. 2011, ramp-up of new products coupled with international expansion