Vetoquinol

2021 Annual Results - Seite 2

Personnel expenses rose by 13.4%, i.e. €17.4 million, due to the full-year effect of the reinforcement of the teams involved in the Drontal and Profender activities, and to salary increases.

Depreciation and amortization charges related to the application of IFRS 16 resulted in a depreciation charge of €5.2 million, compared with €4.9 million at end December 2020.

EBIT before depreciation of acquired intangible assets rose sharply to €100.8 million, up €35.6 million for the year ending December 31, 2021, compared with €65.3 million at December 31, 2020. This sharp increase is the result of a strong growth in revenues and margins on purchases consumed, as well as the growing share of Essential products in the product mix.

Depreciation and amortization of assets from acquisitions amounted to €14.1 million, compared with €9.1 million at the end of December 2020. The increase is mainly due to the full year effect in 2021 of the amortization of acquired parasiticides products (€8.7m vs. €3.6m in 2020).

Group EBIT was €86.7m (16.6% of revenues), up €30.6m from €56.2m in 2020.

The apparent tax rate was 25.2% (vs. 30.4% at end December 2020).

EBITDA increased €35.4 million to €119.3 million at December 31, 2021, driven by the continued growth momentum of Essential products and improved operating profitability.

Vetoquinol's Net income was €62.9 million, compared with €19.2 million for fiscal year 2020.

Cash flow from operating activities amounted to €89.7 million at December 31, 2021. This strong cash generation enabled Vetoquinol to prepay the €110 million loan taken out in July 2020 to finance the acquisition of parasiticides products. The Group's overall net cash position was €53.6 million (including IFRS 16) at the end of December 2021, an increase of €49.0 million. Vetoquinol is debt-free at the end of 2021. This solid cash flow generation gives Vetoquinol the means to actively pursue its growth strategy.

The Board of Directors will propose a dividend of €0.80 per share to the Annual General Meeting of Shareholders on May 19^th, 2022.

Geopolitical risk - Russian-Ukrainian conflict

Since February 2022, the war in Ukraine has been an event that has direct and indirect repercussions on the world economy. At this stage of the conflict, Vetoquinol has low exposure for the following reasons:

• The laboratory has no direct presence (subsidiary, branch, plant, workforce) in these two countries.
• Sales in Russia and Ukraine are less than 1% of Group sales.
• Net trade receivables are less than 1% of total receivables.
• Few purchases are made from these two countries.

Covid-19 health situation as of March 24^th, 2022