2015 Financialsand Strategic Update

March 2016

AGENDA

2015 results

Virbac strategic perspectives

Appendix : 2016 Agenda

2

• St. Louis voluntary interruption following FDA inspection:• drop of revenue : -82.5 M$ vs. 2014 (-60%);• drop of operating profit : -93.5 M$ vs. 2014.

• Successful integration of Sentinel:• 95 M$ in revenue;• 34.8 M$ in (marginal) EBITA (= EBIT before amortization

of intangibles from acquisitions).

• Solid organic growth outside of the US – except France :• +4.0% in Europe excluding France;• -8.2% in France (drop of antibiotics sales following new law);• +6.3% in the rest of world.

P&L :

3

2015 FINANCIALS – SUMMARY (1/3)

2015 FINANCIALS – SUMMARY (2/3)

• Slight decrease of EBITA contribution globally outside of the US, linked to:• Latin America;• one-offs;• good profit growth in Europe and Asia-Pacific.

• Sustained R&D spending

• Net profit: 9.4 M€ vs. 63.6 M€ in 2014 :• includes 19.2 M€ (vs. 5.8 M€ in 2014) of amortization of intangibles from acquisitions;• and 3.8 M€ of exceptionals (IFRS principles related to purchase price allocations in

acquisitions).

4

• Increase of total debt (605 M€ vs. 197 M€ in 2014) due to:• Sentinel acquisition : 410 M$;• US losses.

• Virbac has obtained waiver of covenant from its pool of banks and a large partof private lenders (“Shuldschein”).

FINANCIAL SITUATION :

5

2015 FINANCIALS – SUMMARY (3/3)

31.12.2015

Million euros 2015 2014 Var.%

Consolidated sales 852.6 773.1 +10.3%

- Exchange rate impact vs. 2014 (49.1)

Consolidated sales at constant rates 803.5 773.1 +3.9%

- change in perimeter (72.3)

Consolidated sales. pro-forma at constant exchange rates 731.2 773.1 -5.4%

6

CONSOLATED SALES

-6.1%

+2.2%

-6.8%

-10.4%-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

+0.0%

+2.0%

+4.0%

211.4(180.5)

220.9(185.8)

213.7(202.7)

206.6(204.1)

2015 QUARTERLY GROWTH OF SALES*

* Organic growth

excluding impact of

exchange rates

Year -5.4%

Q1 Q2 Q3 Q4

* ( ) : 2014 7

600

650

700

750

800

850

900

A 2014 Outside USA USA Acquisitions Exchange rates A 2015

20.4

SALES EVOLUTION

-5.4% +9.3% +6.4% +10.3%

2015

Organic growth

+3.0% -60%

71.9 Sentinel

0.4 SBC

M€

(at 2014 rates)

773.1

852.6

-62.3

72.3

49.1

8

3 countries decreasing significantly : USA, France, Brazil

5 countries with a low evolution (-3% to +3%) :Italy, Switzerland, Germany, New Zealand, Chile

3 countries with 5% to 10% growth : Belgium, Australia, RSA

4 countries with more than 10% growth :Mexico, UK, Spain, India

2015

20%

12%

21%

29%

9

BREAKDOWN OF TOP 15 COUNTRIES (82% OF SALES)BY ORGANIC GROWTH

SALES GROWTH BY REGION

North America :

Latin America :

Europe :

Africa/Middle East :

Asia :

Pacific :

328.0 M€

-0.2%

152.1 M€

+3.8%

31.2 M€

+1.1%

121.9 M€

+11.4%

84.3 M€

+5.5%

2015 at constant rates

135.1 M€+9.2%-60% excl. Sentinel

France : -8%ROE : +4%

10

GROWTH BY SEGMENT 2015 COMPANION ANIMALS

At constant exchange rates

Net Revenue

2015 (M€)

Growth at constant rates Net Revenue

2015 (M€)

Growth at constant rates excl. US

< - 5%- 5% to 0%

0% to +5%

+5% to +10%

< - 5%- 5% to

0%0% to +5%

+5% to +10%

Companion Animals 477.8 7.9% 343.7 6.4%

Parasiticides 88.9 -16.5% 72.2 18.4%

Endectocides 88.3 2.0

Biologicals 78.0 4.9% 78.0 4.9%

Antibiotics/Dermatology 62.9 -20.7% 54.3 3.1%

Specialities 49.9 -13.9% 46.2 1.6%

Petfood 28.1 3.1% 28.1 3.1%

Horses 24.9 -12.4% 24.7 -5.0%

Other 56.8 -2.7% 38.2 6.5%

11

GROWTH BY SEGMENT 2015 FOOD PRODUCING ANIMALS

At constantexchange rates

12

Net Revenue

2015 (M€)

Growth at constant rates

< - 5%- 5% to

0%0% to +5%

+5% to +10%

+10% to

+15%

Food Producing Animals 364.6 0.1%

Bovine antibiotics 60.1 -15.3%

Bovine parasiticides 49.3 3.8%

Other bovine products 119.7 8.7%

Antibiotics swine/poultry 46.3 -7.3%

Other swine/poultry 22.4 11.5%

Aquaculture 66.8 2.9%

Companion

Animals 56.0%

(54.1%)

Food Producing

Animals 42.8%

(44.3%)

Others 1.2%

11.9% 33.1%

(42.6%) (13.4%) (12.3%) (31.8%)

Europe North America

Other developped

countries* Emerging countries

39.1% 15.8%

28.1 %(28.9 %)

15.7 %(12.9 %)

5.1 %(5.4 %)

7.1 %(6.9 %)

10,7 %(13.4 %)

6,3 %(6.3 %)

25,7 %(24.6 %)

SALES BREAKDOWN BY REGION AND BUSINESS 2015

( ) : 2014 * Australia, New Zealand, Japan, Korea

13

2015 PROFIT & LOSS STATEMENT

in M€31/12/2015 % 31/12/2014 % Variation

Net sales 852.6 100.0 773.1 100.0 10.3%

Gross margin on material cost 554.8 65.1 528.5 68.4 5.0%

External expenses 208.1 24.4 164.6 21.3 26.5%

Personnel expenses 252.2 29.6 214.1 27.7 17.8%

Other expenses 9.9 1.2 9.4 1.2 4.9%

Depreciation and amortisation 26.7 3.1 24.0 3.1 11.4%

Net provisions (excluding inventories) 0.4 0.0 1.7 0.2 -74.5%

Current operating profit - adjusted 57.5 6.7 114.8 14.8 -49.9%

Amortisation of intangibles arising from acquisitions 19.1 2.2 5.8 0.7 231.8%

Operating profit from ordinary activities 38.3 4.5 109.0 14.1 -64.9%

Non recurring expenses 3.8 -0.0

Operating profit 34.5 4.0 109.1 14.1 -68.4%

Net financial expenses 19.1 2.2 8.1 1.1 134.8%

Profit before tax 15.4 1.8 100.9 13.1 -84.8%

Income tax expense 1.9 29.1 -93.4%

Share in earnings - Equity method 0.8 1.2

Net result of consolidated entities 12.7 1.5 70.5 9.1 -82.0%

Non-controlling interests 3.3 6.9

Net result - Group's share 9.4 1.1 63.6 8.2 -85.2%14

114.8

-78.3

31.4

-0.4-6.5

-3.5

57.5

0

20

40

60

80

100

120

2014 USA excl.Sentinel

Sentinelacquisition(marginal)

ROW excl. R&D R&D Exceptionnal 2015

BREAKDOWN OF EBIT (ADJUSTED) EVOLUTION

M€

Evolution of the US contribution-46.9 M€

Evolution outside of the US -10.4 M€

15

Contribution To EBITAdjusted

Contributionto EBIT Adjusted

0

M$

-30

-60

30

-17.1

+34.8

Sentinel(marginal)

Legacy business

2014

2015

Loss of margin

Underabsorption of manufacturing cost

Consulting expenses

Inventory write-offs

Other costs

Other

Activity : - 73.4 M$

Exceptional : - 23.2 M$

+41.5

-93.4

16

CONTRIBUTION OF THE US OPERATIONSTO THE EBIT – ADJUSTED (EXCL. R&D)

-52.4

-21.0

-12.6

-9.5

-1.1

3.2

Net revenue 85.8

Current operating profit adjusted 31.4

(Ebit adjusted) - marginal

Amortization of intangibles acquired (13.3) = related to the Purchase Price Allocation

(PPA) under IFRS

Current operating profit 18.1

One-off / non recurring expense (7.9) = counterpart of inventory revaluation in the PPA

Operating profit 10.2

Interest expense (7.4)

Tax (1.0)

Contribution to net profit 1.8

of which cash earnings 23.8 acquisition price is tax deductible

M€

17

CONTRIBUTION OF SENTINEL

Operating cash-flow(« EBIT DA »)

Net cash-flow

-46.4%

-38.4%

31.12.14 31.12.15

M€

140.2

105.2

86.4

56.4

14

2015

18

EVOLUTION OF CASH-FLOW

-56.4 42.5

22.3

377.3

23.9

-105.2

40.1

34.6

23.5

26.4

18.5

* Including translation variance

-1.2

-0.9

0

408.4

Net cash flow Working capital Acquisitions = net debtincrease

Dividends Other*M€ capex

2014

2014 2015

Impact of Free cash flow on debt

2015 : + 8.42014 : -30.5

47

2015

19

USE OF FUNDS

Net debtopening

Net Cashflow

CAPEX WorkingCapital

Acquisitions Net debtclosing

Dividends

605.0

Others

377.3

196.6

-1.2

Au 3

1.1

2.2

015

Au 3

1.1

2.2

014

22.3

23.9

42.5-56.4

M€

4820

EVOLUTION OF NET DEBT 2015

2014 2015 2014 2015

INVESTED CAPITAL CAPITAL EMPLOYED

1149.0

736.8Shareholder’s equity

Minority interests+ LT reserves

Net financial debt

Working capital

Fixed assets

1149.0

736.8221.5

927.5567.1

438.4

105.6

605.0

431.3

108.9

196.6

M€

169.7

1621

BALANCE SHEET ANALYSIS 2015

BALANCE SHEET – FINANCIAL RATIOS

2013.12 2014.12 2015.12

Net debt / Shareholder’s equity Group’s share

Net debt / Net cash-flow

Net debt / Operating cash-flow

49.3%

138.0%

45.6%

1.45 1.87 10.74

1.32 1.40 7.00

22

49,7%

49,1%

0,9% 0,3%

65,7%

33,1%

1,2%

In shares In voting rights

Dick Family

Others

Treasury shares Employees savings plan

Dick Family

Others

Employees savings plan

Number of shares : 8 458 000

23

SHAREHOLDING

AGENDA

2015 results

Virbac strategic perspectives

Appendix : 2016 Agenda

24

• Key points regarding 2015

• 2016 outlook

• Mid term perspectives

25

2015: A VERY DIFFICULT YEAR

USA (St. Louis plant)

Latin America

…But some important achievements• Growth of Sentinel, in spite of intensifying competition

• Success of European launches

• Strong momentum in Asia / Pacific

26

44,4%

15,3%

17,0%

7,9%

4,5%

46,2%

15,8%

15,0%

5,8%

4,4%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% 45,0% 50,0%

Brand n°1

Sentinel

Brand n°3

Iverhart

Brand n°5

US MARKET SHARES: INTERNAL PARASITICIDES (DISPENSED DOSES)

MAT Nov. 14 vs Nov. 15Dispensed doses

(Flavor Tabs + Spectrum)

(Plus + MAX)

Source: Gfk27

SUCCESS OF MAJOR EUROPEAN LAUNCHES

External(fleas & ticks)

63%

Internal(worms)

22%

"Combos"

15%

European dog & cat parasiticide market

€950 million

5 M€

• Virbac share: 5.5%(stable in a marketgrowing by 15%)

• N°5

15 M€

• Virbac share:up from 3.3% to 9.6% in a stable market

• N°3

28

2015 ORGANIC GROWTH IN EMERGING MARKETS

35%

2015 Virbac revenues

€853 million

+6.9%

153Latin

America+4%

Asia+11.8%

RSA+5%

122

23.5

29

Chili(centrovet)

77

2015 ORGANIC GROWTH IN EMERGING MARKETS

35%

2015 Virbac revenues

€853 million

+6.9%

153Latin

America+4%

Asia+11.8%

RSA+5%

122

23.5

India

73.5

OtherAsia

48.5

MexicoColombia

41Brazil &Other

35

+12.8%

+10.4%

+3%

+16%

-8%

30

2016 GROWTH PERSPECTIVES

2015

Sales

Around

7%

organic growth

€852 m<0%

<5%

Around 10%

>20%

31

2016: GROWTH PERSPECTIVES

Europe• Moderate market growth

• Launch of new products (Effipro duo, Curacef duo) further growth expected from 2015 launches (Effitix, Milpro, New pet food range)

Asia/Pacific• Strong growth expected in all markets but Australia (expected stable)

Latin America• Pursuit of solid growth in Mexico and Colombia,

recovery expected in Uruguay and Brazil, in spite of the economic crisis

32

2016: GROWTH PERSPECTIVES

Aquaculture• Unfavorable period of the cyclical Chilean salmon market:

• Market demand: decrease from historical markets: Brazil (economic crisis), US (Norwegian competition: weak krona and no use of antibiotic)

• Sanitary:

• Perception of efficacy of vaccines questioned. New SRS vaccinefrom competition?

• Expected decrease of antibiotics consumption

• Economics:

• Biomass decreasing, salmon production expected to fall by around 10% in 2016

• Chilean salmon producers losing money since mid 201433

COMPLIANCE: VIRBAC ST. LOUIS

Oct-Dec. 2015Restarting Iverhart Plusand Equimax production

June 2015Relaunching hygiene products

20 Jan. 2015 Virbac responsesQSIP (Quality system improvement plan)

30 Dec. 2014 End of FDA inspections

Numerous observations

2015Management changes70 recruitments in QA and Industrial OpsConsultantsRegular reporting to the FDAProcesses and proceduresTraining, training, trainingInformation systems

34

COMPLIANCE: VIRBAC ST. LOUIS

29 Dec. 2015 FDA response Warning letter7 observationsBackground “repeat obs.”

11 Jan. 2016 Virbac responsesFulfilment of all commitmentsRelease under “Parexel”RFT (Right first time)

culture and quality practices

13 Jan. 2016FDA agrees to discuss our remedial plans

2016 objectivesRestarting other areas of productionEmbedding quality cultureImplementation of new information systemesSuccessfully carrying out upcoming inspection

11 Feb. 2016 Presentation of FDA remedial

action plan

35

2014 Actual 2015 Actual 2016 Perspective

PERSPECTIVES FOR US LEGACY PORTFOLIO

($ million, excluding Sentinel)

136.6

54.2

Around

90 Upside: impact of end of fipronilexclusivity contractby one majorUS distributor

36

2016: FINANCIAL PERSPECTIVES

• Sales organic growth: around 7%

• EBITA perspective: above 10%

• End of year Debt/EBITDA ratio: below 4.5

37

MID TERM PERSPECTIVES

• Market

• Competition/consolidation

• Compliance

• Sources of growth

38

2010 2011 2012 2013 2014

891

965957

980

1000

HUMAN HEALTH AND ANIMAL HEALTH

+2.9%/year Human health

2010 2011 2012 2013 2014

20

21

22,5

23

24+4.6%/yearAnimal

health

Comparative changes in growth of markets ($ billion)

Sources: IMS, Vetnosis39

2005 2010 2015 2015 Proforma

TOP 4 ANIMAL HEALTH MARKET SHARES

43%

51.5%

58%64.5%

Pfizer/

Zoetis

Merial

Intervet

Bayer

Elanco

+Fort

Dodge

+Schering

Plough

+Novartis

+BoehringerIngelheilm

Merck

6.5%

8.9%

13.3%

14.6%

6.9%

14.7%

13.2%

16.8%

12.7%

14%

11.9%

19.6%

12.7%

14%

18.1%

19.6%

Source: Vetnosis40

2005 2010 2015 2015 Proforma

ANIMAL HEALTH MARKET SHARES

Virbac

Elanco

+Fort

Dodge

+Novartis

Merck

2.9% 3.8% 4.15% 4.15%

+Schering

Plough +BoehringerIngelheilm

Pfizer/

Zoetis

Merial

Intervet

Bayer

Source: Vetnosis41

COMPETITION

• Rapid consolidation

• Virbac participates to the trend

• Room for 2nd tier global players• Niche/smaller segments less attractive for 1st tier players

• Opportunities in larger segments:

• Competitive price value positioning (e.g parasiticides)

• Customers wish to keep alternatives to 1st tier suppliers

• Opportunities in selected geographies (emerging markets)

• 2020 ambition: 5% global market share

42

VIRBAC INITIATIVES: MARKET/COMPETITION

0

10

20

30

40

50

60

70

80

90

100

2010 2014

Active external growth policy

Share of Virbac salesin emerging countries

22%32%

Major acquisitions

Sentinel USA 2014

Centrovet (51%) Chile 2012

Santa Elena Uruguay 2010/2013

SBC Taiwan 2011/2015

Stockguard New Zealand 2012

MultiminNew Zealand and Australia

2012

43

QUALITY/COMPLIANCE

• Rising regulatory requirements increase barriers to entry

• Virbac is closing the gap in the most demanding countries/regions (US, Europe, Australia)

• France: strong investments in the last 5 years, new production sites, equipment, information systems, headcount (more than 100 people recruited in R&D, industrial operations, QA), procedures, training etc… Satisfactory level reached (7 inspections in 2015)

• US: 2015/2016 catch up in a crisis mode: satisfactory level to be confirmed by upcoming FDA inspection

• Australia: continuous improvements in the site acquired from American Home

• Virbac in a proactive mode in the countries with lower but rising regulatory requirements

44

BREAKDOWN OF SALES BY PRODUCTION SITES

Third parties (including Sentinel)

35%

France, USA, Australia

43%

All others22%

45

2020 PERSPECTIVES: WHERE IS THE ORGANIC GROWTH GOING TO COME FROM?

Main drivers / geographics (vs 2016)

• US: +100M$

• Emerging markets, particularly Asia: +100M€

Main drivers / product categories & species• Companion animals:

• Parasiticides

• Specialty pharmaceuticals

• Non pharma regulated (hygiene, dentals, nutritional, petfood)

• Food producing:

• Dairy

• Swine vaccines (Asia), bovine vaccines (Latin America)

• Aquaculture (cold and warm water)

46

AGENDA

2016 results

Virbac strategic perspectives

Appendix : 2016 Agenda

47

2016 AGENDA

April 13* Q1 sales

June 24 Annual shareholders’ meeting

July 18* Q2 – H1 sales

September 20* Half-year financial results

October 13* Q3 sales

January 17, 2017*Q4 – Full year sales

* After market close 48

Thank youfor your attention

Disclaimer

This presentation contains forward-looking statements with respect to Virbac’s

profitability and financial condition, business operations, projects and outlook.

Although Virbac’s management believes that such forward-looking statements are

based on reasonable assumptions, as made as of the date of this presentation, such

statements do not constitute guarantees of future performance. Actual results may

differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Virbac’s control, including but not limited to any risk described in the reports and documents regularly made available to the public and filed to the AMF.

Investors and security holders may obtain a free copy of such documents at :

www.virbac.com

51