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Annual Report and Accounts for the year ended 30 June 2018

Sustaining
Growth

Dechra Pharmaceuticals PLC

Annual Report and Accounts for the year ended 30 June 2018

Pharmaceutical Products

Dechra is an international specialist veterinary pharmaceuticals and related products business.

Our expertise is in the development, manufacture, and sales and marketing of high quality products exclusively for veterinarians worldwide.

The Global Market Opportunity

Dechra is underweight in geographical diversity compared to the wider market.

As at 31 December 2017

As at 31 December 2017

As at 30 June 2018

Market Share

As at December 2017

Sustainable Market Dynamics

Continuing Growth in FAP and CAP Markets

Animal health globally is generally described as comprising two segments: Food producing Animal Products (FAP) and Companion Animal Products (CAP). FAP continues to show global growth due to an increased demand for high quality protein production, whereas CAP growth (a sector in which horses are generally included) is driven by the pet owners’ compassion for their animals, improved nutrition and a wider range of medical products and treatments.

Our
Strategic Progress since 2013

Acquisitions since 2013

2014

Commenced trading in

Italy

2014

Acquired

PSPC

US bolt-on

2015

Commenced trading in

Canada and Poland

2015

Acquired

Genera

Entry into poultry vaccines

2016

Acquired

Putney

Transformational US deal

2016

Acquired

Apex

Access to Australian CAP market

2017

Acquired 33% of

Medical Ethics

Access to novel product development

2017

Acquired

RxVet

Access to New Zealand

2018

Acquired

AST Farma

Strengthens Dutch market position and provides direct-to-vet relationship

2018

Le Vet

Adds to EU product portfolio

Strategic Process since 2013

Percentage of revenue made from outside Europe

Percentage of revenue made outside Europe 2013

2013

16%

Percentage of revenue made outside Europe 2018

2018

42%

Underlying operating profit margin

Undelying operating profit 2013

2013

9.6%

Underlying operating profit 2018

2018

24.4%

Number of countries distributed to

2013

40

2018

50

Map of countries distributed to

Number of countries with own sales and marketing organisations

2013

13

2018

24

Folder icon

Number of product registrations

2013 1,327

2018 4,680

Highlights

Financial Performance

Total Revenue

£407.1m

2017: £359.3m

CER: +13.9%

AER: +13.3%

Dividend Per Share

25.50p

2017: 21.44p

CER: +18.9%

AER: +18.9%

Underlying Operating Profit

£99.2m

2017: £81.3m

CER: +24.0%

AER: +22.0%

Reported Operating Profit

£34.1m

2017: £33.2m

CER: +6.3%

AER: +2.7%

Underlying Diluted Earnings Per Share

76.45p

2017: 64.33p

CER: +20.9%

AER: +18.8%

Reported Diluted Earnings Per Share

37.04p

2017: 27.93p

CER: +38.5%

AER: +32.6%

Strategic Progress

  • Acquired AST Farma and Le Vet in the Netherlands/EU and RxVet in New Zealand.
  • Outperformance in the majority of our countries and therapeutic sectors.
  • Several new global product registrations, and new opportunities secured.

Non-Executive Chairman's and Chief Executive Officer's Statement

Q&A with Ian Page

Q&A with Richard Cotton

Financial Review

Dechra has delivered another strong set of financial results, from both existing business and acquisitions. We continue to invest both organically and through acquisitions to deliver enhanced shareholder value.

Richard Cotton
Chief Financial Officer

Delivering our Strategy

Strategic Growth Drivers

Pipepline delivery icon

Pipeline Delivery

Portfolio focus

Portfolio Focus

Geographical expansion icon

Geographical Expansion

Acquisition

Acquisition

Strategic Enablers

Manufacturing and Supply Chain icon

Manufacturing and Supply Chain

Technology icon

Technology

People icon

People

STRATEGY IN ACTION:

Pipeline Delivery

Vaccines

STRATEGY IN ACTION:

Portfolio Focus

Enhancing our Specific® Portfolio

STRATEGY IN ACTION:

Geographical Expansion

Expansion into New Zealand

STRATEGY IN ACTION:

Acquisition

Integration of AST Farma/Le Vet