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2 I N T R O D U C T I O N Wednesday 5 April 2017 Jérôme BAUDON, Head of Avian Strategic Business Unit Boehringer Ingelheim
3 THE NEW BOEHRINGER INGELHEIM Merial is now part of the Boehringer Ingelheim family. This is the ONE deal that benefits everyone. We are uniting the strengths of two leading players in animal health into ONE business unit within Boehringer Ingelheim. Our combined business is the second largest animal health business in the world. Our complementary portfolios make our two businesses a perfect fit. Together we can better offer a broader range of animal health solutions and maintain the excellent service our customers expect. As a family-owned business, we can take the long-term perspective. We are passionate about animal health. We commit to making the industry even better at improving both human and animal health.
4 THE ONE DEAL THAT MAKES SENSE Two leading players have united their strengths in ONE, creating the global #2 Animal Health business #2 #1 GLOBAL PLAYER PETS / SWINE / EQUINE #2 AVIAN
5 THE NEW BOEHRINGER INGELHEIM AT A GLANCE
6 A STRONGER MORE DIVERSIFIED PORTFOLIO SHARE SHARE SOURCE: CEESA data (MAT Q2 2016), divestment deducted.
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8 HOW TO SATISFY THE WORLD S SURGING APPETITE FOR MEAT +30% More animal protein will be needed by 2030, due to population growth and rising middle class, especially in emerging markets.
9 A Moving Market The poultry health market is moving from treatment to prevention strategies. Vaccination is moving from farm to hatchery. Social Concerns are rising. Food safety is a must. Flu is a global threat for the poultry industry.
10 Your Challenges Our Mission Meet growing demand for poultry and eggs Increase efficiency in operations Improve profitability matching customers concerns Provide comprehensive avian health solutions through vaccines and pharmaceuticals, vaccination technology services, and veterinary expertise to help you produce quality poultry meat and eggs $ Safe Abundant Affordable Sustainable
11 Our Three Pillars PEOPLE PRODUCTS SERVICES
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13 Avian Influenza: A Growing Global Concern AN EVOLVING VIRUS 8 RNA segments respectively encode for: HA (hemagglutin) NA (neuraminidase) NP (nucleocapsid) Two matrix proteins (M1 and M2) P (RNA polymerase sub-units PA, PB1 & PB2) NS1, NEP (non-structural proteins)
14 Avian Influenza: A Growing Global Concern AN UNPREDICTABLE EPIDEMIOLOGY High pathogenic Avian Influenza outbreak map 2016 thru now Resolved Continuing Source: OIE World Animal Health Information Database (WAHIS Interface) Version 1 Copyright World Organisation for Animal Health (OIE)
15 Avian Influenza: A Growing Global Concern AN UNPREDICTABLE EPIDEMIOLOGY Low pathogenic Avian Influenza outbreak map 2016 thru now Resolved Continuing Source: OIE World Animal Health Information Database (WAHIS Interface) Version 1 Copyright World Organisation for Animal Health (OIE)
16 Avian Influenza: A Growing Global Concern A MASSIVE ECONOMICAL IMPACT Investments Production Egg/meat price Employment Business case 10 year eradication strategy Vietnam H9N2 LPAI Morocco 2016 Morocco 2016 LPAI H9N2 USA 2015 Layer industry Upgrading biosecurity on smallholder farms: 500 M Prolonged vaccination: 39 M 30%-70% decrease in egg production Egypt/Morocco % mortality rates H5 - HPAI USA Million birds culled in Iowa 50% increase in egg price Asia % increase in international poultry prices 15,693 fewer jobs Mexico ,000 fewer jobs Source: ALCIMED Survey 2016
17 BOEHRINGER INGELHEIM AVIAN INFLUENZA PORTFOLIO SOLUTIONS TROVAC AIV H5 GALLIMUNE Flu & FLUVAC Vaccines (also H5N1 Re series) VOLVAC AI RANGE OF VACCINES
18 1st Global avian influenza vaccine supplier* Billions birds vaccinated globally with our Avian Influenza 3 vaccines in 2016 Main virus types H5, H7 and H9 3 of avian influenza targeted More than 25 years of experience 25 in avian influenza vaccines *Source : Alcimed estimation based on Dec 2016 survey.
19 Take the Winning Strategy We fight AVIAN INFLUENZA all around the world
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