Vetoquinol SA

Earnings Release • Mar 23, 2015

Press Release Lure, March 23, 2015

REFERENCE PRODUCTS UP +13.2% NET INCOME UP +9.3%

At its meeting on March 17, 2015, the Vétoquinol S.A. Board of Directors reviewed the Group results and approved the 2014 financial statements.

The year saw sales rise 5.2% coming in at €315.3 million. At constant exchange rates, this sales growth amounted to 6.3%. The Vétoquinol Group achieved organic growth of 1.4% in 2014. Full-year sales included a negative currency impact of €3.2 million.

The strong sales largely reflect steady growth in reference products, the driving force behind Vétoquinol's strategy. Sales of reference products came in at €150.7 million in 2014, up 13.2%. Reference products now account for 48% of 2014 fullyear sales, up from 44% in 2013.

In 2014 the Vétoquinol Group increased sales across all of its strategic territories. Annual sales rose by 3.8% in Europe, 6.7% in the Americas (after consolidating Bioniche's animal health business) and 7.8% in Asia Pacific. Europe, the Americas and Asia Pacific accounted for 57%, 29% and 14% respectively of total 2014 Group sales.

EBIT amounted to €35.4 million in 2014, up 5.5% from the previous year. Group EBIT represented an operating margin of 11.2% of sales. This result reflects the growing contribution of reference products in the sales mix, tight control of costs and personnel expenses and also includes amortization charges on

Bioniche allocated assets following the acquisition of its animal health business. Acquisition and integration costs for Bioniche amounted to €1.0 million; they impact the Group operational income.

2014 Financial income/(expense) surged €4.2 million to €3.2 million largely as a result of the rise in the US dollar during the fourth quarter of 2014 compared with Q4 2013. Group net income rose 9.3% to €25.8 million, up from €23.6 million in 2013. Group EBITDA came in at €49.2 million, up 9.5%.

Group net cash and cash equivalents at December 31, 2014 stood at €32.8 million, boosted by a €13.2 million increase in operating cash flow and after taking into account the acquisition of Bioniche's animal health business on April 15, 2014.

Once again the Group has demonstrated its capacity to finance acquisitions while maintaining a strong financial structure to pursue its development strategy. Going forward, the Group intends to continue with investment in R&D (which accounted for 7% of 2014 sales), improvements to manufacturing facilities and a targeted search for new acquisitions.

The Board will submit a draft dividend amounting to €0.39 per share to the May 20, 2015 General meeting.

"2014 confirms the buoyant trend of reference products (+13.2%) in a world animal health market that also rose approximately 4% in US dollars. All our financial indicators are up, reflecting the efforts of Vétoquinol Group employees", Vétoquinol CEO Matthieu Frechin said. "We will continue to roll out our strategic plan based on targeted investment in sales and marketing, regional expansion, innovation and a search for acquisitions to strengthen our offer of reference produts."

(€m)		2014	2013	Change
Total sales of which reference products		315.3 150.7	299.7 133.1	+5.2% +13.2%
Underlying EBIT	% of total sales	35.4 11.2%	33.6 11.2%	+5.5%
Net income, Group share % of total sales		25.8 8.2%	23.6 7.9%	+9.3%
EBITDA	% of total sales	49.2 15.6%	45.0 15.0%	+9.5%

Next update: Q1 2015 sales - April 14, 2015 after market close

About Vétoquinol

Vétoquinol is a leading global player in the animal health sector serving both the livestock (cattle and pigs) and pet (dogs and cats) markets.

An independent pure player, Vétoquinol designs, develops and sells veterinary drugs and non-medicinal products in Europe, the Americas and the Asia Pacific region.

Since its foundation in 1933, Vétoquinol has pursued a strategy combining innovation with geographical diversification. The Group's hybrid growth is driven by the reinforcement of its product portfolio coupled with acquisitions in high potential growth markets. Vétoquinol employs 2,004 people. Vétoquinol has been listed on NYSE Euronext Paris since 2006 (symbol: VETO).

For further information, go to: www.vetoquinol.com.

OUR BUSINESS: ANIMALS. OUR ADVANTAGE: PEOPLE

For any information, contact: VETOQUINOL KEIMA COMMUNICATION Investor Relations Marie-Josée Aubry-Rota Tel: +33 (0)3 84 62 59 88 relations.investisseurs@vetoquinol.com

Investor & Media Relations Emmanuel Dovergne Tel: +33 (0)1 56 43 44 63 emmanuel.dovergne@keima.fr