Neogen (NEOG) investor relations material

Market Overview and Industry Trends

• Food safety and animal health markets are expanding due to increased food complexity, stricter regulations, and higher consumer expectations.

• Regulatory mandates, not government funding, drive demand for food safety solutions, providing a stable market tailwind.

• The addressable market is estimated at $11B, with strong growth potential across USAC, EMEA, LATAM, and APAC regions.

• The company holds market leadership in pathogen detection and hygiene indicators, serving a broad customer base from small processors to global protein producers.

• Innovation cycles are faster in food safety compared to human diagnostics due to lower regulatory hurdles.

Strategic Direction, Vision, and Turnaround Plan

• The vision is to fuel global food security with a safe, sufficient, and sustainable food supply.

• A new management team with turnaround experience has been assembled, restructuring the executive team for speed, accountability, and cross-functional execution.

• The turnaround and growth strategy follows three phases: stabilize, accelerate, and expand, with a focus on top-line growth, cost management, and operational transformation.

• Execution discipline, customer intimacy, and operational maturity are key to achieving market-leading performance.

• Enhanced governance and controls are in place to improve cash predictability and risk management.

Portfolio Focus and Innovation

• The portfolio is being refocused on higher-growth, more profitable markets, with divestiture of the genomics division expected by year-end.

• PetrifilmⓇ, the flagship product, is central to the food safety offering, with a new production site in Lansing, Michigan, on track for completion by November 2026.

• High-growth consumables include PetrifilmⓇ, pathogen testing, and biosecurity, with market CAGRs up to 12%.

• Innovation is customer-need driven, with increased R&D and CapEx investment focused on scalable, high-return projects and a low-teens New Product Vitality Index.

• End-to-end food safety solutions integrate products, analytics, and expert services, reinforcing brand authority and customer loyalty.