Vetoquinol Universal Registration Document 2019

1 Vetoquinol  Universal Registration Document 2019  Financial report   13 PRESENTATION OF THE GROUP Vetoquinol’s strategy 1.3.4 Hybrid growth strategy Backed by sound financial management, tight control of growth, production and marketing and in-depth exper- tise in its core therapeutic domains, Vetoquinol pursues the following strategy: • Controlled, profitable growth in keeping with the company’s family values. Regular, measured and well-timed acquisitions ensuring that financial perfor- mance rapidly meets the company’s standards. • Targeted growth: Vetoquinol focuses its efforts on a limited number of “strategic countries” and on four target species: pigs and cattle (food-producing segment) and dogs and cats (pet segment). • A market underpinned by strong fundamentals: in industrialized countries, household expenditure on pets is growing steadily due to the increasingly impor- tant role played by animals in the lives of human families. In the food-producing segment, the Group benefits from the steady growth of this market driven by the expansion of the world population and growing demand for animal protein. • In-depth expertise in target therapeutic domains: In the pet segment, Vetoquinol has chosen to focus on dermatology, parasitology and improving mobility through the treatment of osteoarthritis. For food-pro- ducing animals, Vetoquinol more specifically targets the areas of reproduction, udder health and respiratory problems. • Gaining market share in the Americas and Asia. While consolidating its positions in Europe, the Group aims to gain a foothold in the Americas (the United States is the world’s leading animal health market, ahead of China and Brazil) and benefit from the strong growth expected in Asia. The Group is therefore present in China, India, Korea and Japan. In 2019, Vetoquinol acquired Clarion Biociencas, a veterinary drug manu- facturer based in Brazil, thereby expanding its footprint in the world’s third largest animal health market. Veto- quinol established a subsidiary in New Zealand in the same year. Vetoquinol has therefore been able to extend its inter- national network, strengthen its foothold in certain therapeutic segments, capitalize on its research pro- grams and, as such, maintain a balanced risk profile. At December 31, 2019, Vetoquinol had a solid financial structure in place to further its hybrid growth strategy, as well as the means to finance external growth and partnership objectives by ensuring its development in complete independence.