Neogen Corp Investor Day 2026

Hello, and welcome everyone here in the room and on the webcast. Thank you for joining us for what we believe is Neogen's first ever Investor Day. I'm Bill Waelke. I'm heading up investor relations, as well as FP&A for the time being, and we are very excited to tell you about the progress that we've made over the course of the last year, and also the strategic things we are focused on to deliver on what we see as significant potential for Neogen in the future. Before we get to those exciting things, though, please bear with me as we walk through the forward-looking statements language. I think, as you are aware, we may make reference to forward-looking statements here in the room today under the meaning of the Private Securities Litigation Reform Act of 1995.

Our actual results may differ materially from what we tell you in these forward-looking statements. Additional information concerning these factors can be found in our 10-K, in our 10-Qs, and other reports that we make with the SEC, and the presentation that we've issued in connection with today's meeting. We encourage you to review those documents, and we do not undertake any obligation to update those forward-looking statements. With that behind us, Neogen, at its most basic level, has the mission of protecting the world's food supply. We advance this mission through our two segments, food safety and animal safety. In food safety, which accounted for almost $650 million of revenue in FY 2026, we believe we are the clear global leader.

Our portfolio of food safety solutions includes a range of immunoassay and microbiological diagnostics and related products, mainly to identify the presence of undesirable things in products we all consume on a daily basis. Whether it's the presence of yeast, or mold, or E. coli, salmonella, aflatoxins, allergens, or a number of other things, our diagnostics aim to provide food producers with fast, reliable, accurate, and easy-to-use solutions around the world. These solutions are relatively inexpensive, as you would expect, compared to the cost of wasted inventory or the costs associated with contaminated products reaching the shelves, and more importantly, consumers. The history of Neogen dates back to the early days of food safety testing. The company was founded almost 45 years ago in 1982.

Given this longstanding expertise we have in the industry, we believe we're viewed not just as a supplier, but as a trusted partner of food producers that can help them design and implement robust food safety testing programs. Our animal safety segment, which represents about 25% of the total company's revenue, is complementary to our mission of helping to protect the world's food supply. The majority of this segment is focused on preventive care and the well-being of production animals. We have a number of well-recognized brands that play important roles in the health of production animals, and also longstanding relationships with key channel partners, which in this market are the primary route to the farmers and the ranchers that use these products.

Together, these two segments provide depth and breadth of expertise with a global reach and recognized solutions to help food producers, ranchers, and farmers ensure that our food supply globally is as safe as possible. After nearly 45 years, we have developed a significant global presence, which we believe is the broadest in our markets. With almost half of our revenue generated outside of the U.S., we serve over 70,000 customers in 135 countries and have an installed base of over 50,000 instruments. While we do have some diagnostics that can be run without instruments, our focus in food safety is very much on the razor blade business model. Instrument placements generate sales of consumables, and in our animal safety segment, that product portfolio is almost entirely consumables, meaning that as a total company, over 90% of our revenue comes from sales of consumables.

Our customers around the world use our products to run over 300 million tests each year, which means a tremendous amount of data is generated. We will expand on the data opportunity later today, but continuing to build out a digital ecosystem containing not only data, but data-driven insights, is a key priority for Neogen moving forward. Protecting the world's food supply is a global challenge shaped by scale, complexity, and constant change. I think to most people, it might not be fully appreciated how complex this mission is, but let's take a look and get a little bit of insight into how complex this is on a global basis.

Thanks, Bill. Good morning. Good morning.

My name is Mike Nassif. I am the President Chief Executive Officer for Neogen. Welcome. Neogen has been a public company for 37 years, but this is our first investor day, and it comes at a really important moment for the company and gives us an opportunity to share with you where we are, where we are going, and more importantly, how we are going to get there. When I joined 14 months ago, one of the first things I did was meet with as many investors and our analysts as I could to really understand their perspective on what is happening. You were very clear to me about the challenges that the company was facing. You saw the challenges of integrating a large carve-out, you saw the challenges with supply and service, and you rightly questioned whether management could consistently execute and, most importantly, reduce surprises.

I think those were very fair concerns. My commitment to you was that in 2026, our goal was going to be about stabilizing the business and building credibility. When you asked me how we are going to do that, I said by focusing on the fundamentals. What I also said was, if we do that correctly, the first place we should see it is in our top line. I think it has. I believe we have reached an inflection point, and our transformation initiative is taking hold. We have delivered positive core growth in four consecutive quarters. Our commercial and cross-functional teams are working better together. Our supply reliability has improved. Our customers are getting better service from us. Now, all that matters, but I do not want to get ahead of myself. We still have work to do.

What these results tell us is that the changes that we have put in place over the past 14 months are taking hold. They are making an impact. At the same time, the market tailwinds behind us are substantial. We operate in a durable, non-discretionary market, serviceable addressable market in animal and food safety of over $7 billion, growing at a blended rate of 4%-5%. However, market growth alone is not going to determine our success, and we have to earn it. We do that by having stronger customer relationships, broader adoption across our portfolio, innovation that solves real customer challenges, and most importantly, consistent execution. As a category leader, our objective is not simply to participate in growth. Our objective is to outgrow the market, strengthen our differentiation, and expand profitability over time.

If the opportunity is there, the question is simple: how are you going to do that? The answer is through our very focused strategy built around three pillars, commercial prowess, high-impact innovation, and operational excellence. You have heard me speak of these priorities consistently since I joined. They are not slogans. They are how we run the business. Commercial prowess is all about execution discipline at scale, strengthening global relationships, and expanding our portfolio solutions to more customers. High-impact innovation starts by understanding our customers. What are their real challenges, and how do we take those insights and turn them into growth? Lastly, operational excellence means improving reliability, productivity, reducing complexity, and strengthening our margin and cash generation capabilities. Taken together, these three pillars are not just about growth. They are about building a sustainable and profitable company for the future.

Now, our path so far has taken a very structured three-phase approach that I shared on day one. Fiscal year 2026 was about stabilization and building credibility. 2027 is about acceleration. It is about taking the foundation and the fundamentals that we have built in the past year, expanding them at scale and with greater efficiency. 2028 is about expansion, expanding our markets, our differentiation, and our margin. This is also when we expect to see the investments that we have made today in innovation and operational improvement to start to meaningfully impact our P&L. What gives us confidence in the opportunity is not simply the size of it. It is the combination of our market position, the breadth of our portfolio, our capabilities, and the execution that we have demonstrated so far this year. The need for effective food safety solutions has never been more acute.

Foodborne illness outbreaks have increased by 50% over the past 10 years. The cost of these recalls is $75 billion-plus per year. Governments have responded by increasing spending significantly in food safety, while consumer confidence remains under pressure. As food supply chains become more complex, our customers are being asked to do more. Increasingly, they are looking for partners that can address multiple food safety challenges across their operations, and most importantly, at scale. I believe this is where Neogen is uniquely positioned. We operate close to the point of processing, where quick decision, reliability, and accuracy are paramount. As the leader in food safety, Neogen has significant advantages than any other player in the market. We have 10 leading platforms, with six of them with market-leading position.

We offer one of the industry's broadest portfolios with over 10,000 SKUs. More than half of our revenue, as Bill said, comes from outside the U.S. What that means is that it gives us a global network and deep relationships around the world with a lot of these large strategic account customers. Taken together, all of these strengths, combined with our manufacturing capability, our global reach, our technical expertise, give us the foundation for growth and innovation. Having these advantages just by themselves is not enough. Our goal is to connect them more effectively, make it easier for customers to realize the full value of Neogen, and turn those advantages into a stronger margin expansion, stronger growth, margin expansion, and cash generation. When you look at the competitive set that is supporting this industry and the growing challenges, you see two things.