Investor Presentation 2019. Important Disclosure and Safe ......Investor Presentation 2019. Important Disclosure and Safe Harbor Notice. This document and presentation (verbal or written)

Investor Presentation 2019. Important Disclosure and Safe Harbor Notice.

This document and presentation (verbal or written) contains or incorporates by reference forward-looking statements regarding Heska Corporation (“Heska”) and its affiliates, including projections,

estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations

will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond our control. If one or more of these

risks or uncertainties materialize, or if underlying assumptions prove incorrect, the Heska’s actual results may vary materially from what management anticipated, estimated, projected or expected. The key

risk factors that may have a direct bearing on the Heska’s results of operations and financial condition are described in detail in Heska’s periodic reports most recently filed with the Securities and Exchange

Commission (“SEC”). Investors are encouraged to consider closely the disclosures and risk factors contained in Heska’s annual and quarterly reports filed from time to time with the SEC. Heska undertakes

no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable securities laws. Information

contained in this document and subsequent and associated verbal presentation speaks only as of the date hereof, is unaudited, and is subject to change. Forward-looking statements can be identified by the

use of words such as “expects,” “may,” “anticipates,” “intends,” “would,” “will,” “plans,” “believes,” “estimates,” “should,” and similar words and expressions and as noted “*” in footnotes and other

comments. These statements are based on management’s current expectations and beliefs as well as numerous assumptions and estimates concerning future events and are subject to a number of risks

and uncertainties. Recipients are cautioned that there is an inherent risk in using past results, including trends, to predict future outcomes, including financial results and perceived customer behavior; do

not put undue reliance on forward-looking statements because actual results may vary materially from those expressed or implied. Factors that could affect the business and financial results of Heska

generally include, but are not limited to, the following risks related to: reliance on third party manufacturers and developers for its products; the commercialization and development of new products;

uncertainties related to attempts to expand into international markets; Heska's ability to measure and predict trends and effectiveness of commercial relationships; future impact of recent business

development activity; Heska’s ability to access capital on acceptable terms; Heska's reliance on outside suppliers, which is substantial; competition, which is robust, varied, and well resourced; and the risks

set forth in Heska's filings and future filings with the SEC, including those set forth in Heska's Annual Report on Form 10-K/A for the year ended December 31, 2017 and 10-Q ending September 30, 2018.

1

Seriously Fun. Seriously Good Business.

1. Global Animal Healthcare Trends

2. Heska Position and Strategy

2

3

Integrated Global Animal Health Cycle

Positive regulatory, payor, & demographic trends

Accelerating industry investment & consolidation

Investment Baseline Veterinary Healthcare

Veterinary Healthcare is a great (5% - 6% growth) place to be…

Humanization of Pets with Global expansion of the trend

Family Member Pets need Juvenile, Wellness & Aging care

Historically recession resistant

4

Strong Industry Performance through the Cycle

3% 5%

7%

15% 15% 16% 16%

25%

11%

1%

7%

10%

6% 6%

8% 8% 11% 11%

27%

3%

14%

35%

13%

31%

25%

17%

5%

18% 15%

9%

16%

25%

8% 4%

8%

20%

13%

10%

13%

24% 25%

17%18%

10%

3%5%

8%

14%

6% 6%

11%

18%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IDEXX Abaxis VCA

Revenue growth evolution over time: IDEXX, Abaxis and VCA

EBITDA margin evolution over time: IDEXX, Abaxis and VCA

20% 20% 21%

21%

23% 22% 21%

19%

22% 22% 23%

23% 24%

23% 21%

24%

26% 27%

5%

10% 9%

14%

17% 19%

20% 21% 21% 21%

19% 18%

20% 20%

21%

24%

23%

19% 19% 18%

22%23% 22%

21%

22% 23% 22% 22%19%

18%

17%

19%

20%

20%21%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Company filings; IDEXX FYE 12/31; ABAXIS FYE 3/31; VCA FYE 12/31; EBITDA calculated as operating income plus D&A; VCA acquired by Mars Inc in September 2017.

(10%)

6

Source: FactSet as of 1/3/20191

Animal Health Index includes Zoetis, Phibro Animal Health, Idexx Laboratories, Abaxis, Neogen, Dechra Pharmaceauticals, Virbac, Vetoquinol and VCA.

(Abaxis was acquired by Zoetis in July 2018) (VCA was acquired by Mars in September 2017)2

Pharna Index includes Pfizer, Johnson & Johnson, Merck, Bristol-Myers Squibb, AbbVie and Eli Lilly. 3

Diagnostics/ Point of Care Index includes Alere, Abbott Laboratories, Thermo Fisher, Quidel and Cepheid. (Alere was acquired by Abbott Laboratories in October 2017)

Share price performance over time

7

Historical multiples evolution (NTM P/E)

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

Jan-02 Feb-04 Apr-06 May-08 Jul-10 Aug-12 Oct-14 Nov-16 Jan-19

Averages Since 2002 10-years 5-years 3-years 1-year

Animal Health Index 22.0x 22.3x 23.9x 24.4x 25.5x

Pharma Index 14.7x 13.5x 16.0x 15.9x 15.1x

Diagnostics / Point of Care Index 20.8x 17.5x 18.3x 18.9x 21.1x

1

2

3


Animal Health Index includes Zoetis, Phibro Animal Health, Idexx Laboratories, Abaxis, Neogen, Dechra Pharmaceauticals, Virbac, Vetoquinol and VCA.

(Abaxis was acquired by Zoetis in July 2018) (VCA was acquired by Mars in September 2017)2


Diagnostics/ Point of Care Index includes Alere, Abbott Laboratories, Thermo Fisher, Quidel and Cepheid. (Alere was acquired by Abbott Laboratories in October 2017)

20.7x

23.0x

14.1x

8

Share price in key pullback periods

1 1

22

3 3

Share price performance 10/1/2007 – 3/31/2009 Share price performance 9/1/2015 – 12/31/2016

Animal Health Index performance by company

Company Returns Company Returns

IDEXX Laboratories (35.6%) Virbac (15.3%)

Abaxis (24.3%) Vetoquinol (52.6%)

Neogen (10.2%) VCA Inc. (46.2%)

Dechra Pharmaceuticals 23.8%


Animal Health Index includes Zoetis, Phibro Animal Health, Idexx Laboratories, Abaxis, Neogen, Dechra Pharmaceauticals, Virbac, Vetoquinol and VCA; Left chart excludes Zoetis and Phibro which went public on 8/13/2012 and 3/10/2014, respectively. 2


Diagnostics/ Point of Care Index includes Alere, Abbott Laboratories, Thermo Fisher, Quidel and Cepheid. (Alere acquired by Abbott Laboratories in October 2017)

Investment Baseline Veterinary Diagnostics

Diagnostics is the best (7% - 8% growth) place to be….

Diagnostics is a veterinarian major revenue-profit center (+/- 20%)

Diagnostics utilization occurs in (+/- 15%) Hospital Pet Visits

Hospital Pet Visits are rising (+/- 5%)

Diagnostics favored by Veterinarians (Veterinary Licensure Required)

New Point of Care Technologies pull Tests to Point of Care

Diagnostics Subscriptions Price Lift 4% per Year

Diagnostics is the first Spend (security in tight budgets)

9

10

Integrated Global Animal Health Cycle

Multiple Approaches

Integration

Consolidation

11

(1) Pharmaceutical (2) Vaccine

(3) Therapy (4) Device

(1) Hospital (2) Home(3) Telemedicine (4) Mobile

(1) Supermarket (2) Premium(3) Prescription (4) Therapy

(1) Point of Care (2) Reference Lab(3) Single Use (4) Imaging

12

Point of Care & Single Use

Reference Laboratory

13

14

15

Puppy Town

DrPet

Vet Anan

Ainuo

Chong Fuxin

Ringpai National

Veterinary

16

(1) Pharmaceutical (2) Vaccine

(3) Therapy (4) Device

(1) Hospital (2) Home(3) Telemedicine (4) Mobile

(1) Supermarket (2) Premium(3) Prescription (4) Therapy

(1) Point of Care (2) Reference Lab(3) Single Use (4) Imaging

Paws in Key Segments

Loveland, Colorado Team: 215 FTE

(CCA) Core Companion Animal (+/- 90% REV / 45%GM)*

Companion Animal Diagnostics

Companion Animal Therapeutics

Des Moines Iowa Team: 125 FTE

OVP Vaccines, Pharmaceuticals (+/- 10% REV / 20%GM)*

Production Animal Health Contract Manufacturing

Vaccines (Food Animal Health)

Biologics and Pharmaceuticals

Private Label and Partnerships

FTE number and type subject to change. *Historical range approximations; may vary substantially; not forward looking guidance.

17

Get Product

Right

GetTeam

Right

Get

Costs

Right

Get Model

Right

Get

NarrativeRight

50% of Revenue

Growth Traceable

to New Products

Since June 2013

2013 -

2017

2013 2017

REV $78.3M $129.3M

GM% 39% 45%

OM% (2%) 14.1%

OP INC ($1.43M) $18.2M

EPS ($0.21) $1.30*

Assets $93.6M $135.8M

Equity $47.1M $100.4M

Share* +/- 3% +/- 10%

HSKA $5 (l) $115 (h)

Act One: 2013 through 2017

18

* POC Core Lab Analyzer USA Market Share Estimate. 2017 U.S. Tax Reform impacts of +/- ($5.9M) included, as further discussed in our Form 8-K February 28, 2018.

Analyzer Family: Two-Way PIMS Communication to +/- 90% PIMS

HT5

(1H 15)

EPOC

(2H 13)

DC

(1H 14)

I

(1H 16)

COAG

(1H 18)Imaging

(1H 13)

19

Core Companion Animal Segment Focus

1) Point of Care Blood & Imaging Diagnostics

2) TriHeart Heartworm & Allercept Immunotherapy (PVD)

3) Infusion Pumps and Other

Act One: 2013 through 2017

2013 -

2017

Heska Reset Subscriptions

Reset Benefits for 80%-90% of Hospital’s Testing

Assets Ownership Retained by Heska

Managed Upgrades, Updates, Extend, Renew

6 Year Subscription with Auto-Renewal 2 Years

Price Protection 4%

ACH Sweep Prepaid Monthly

Monthly Minimum +/- $1,000 to $1,500 per Month

20

A Strong Foundation to Begin Act Two

Year Subscriptions +

Months Under

Subscription +

Min Est CSV

(Million) +

Est Subscription

Monthly CSV +

2013 370 -

2014 730 97%

2015 1,235 69% 54,200 - $38.0 - $655 -

2016 1,665 35% 68,750 27% $51.0 34% $742 13.3%

2017 1,950 17% 75,950 10% $56.4 11% $743 0.1%

(est. target)

2018* 2,370 22% 88,100 16% $65.9 17% $748 0.7%

Subscriber Retention ‘18 (end) >95%

21

*Q2 2018 projections at Investor Day; subject to change based on actual

results.

Act Two: 2018 to 2022

2017 2022*

REV $129M$216M (+68%)

GM% 45% 49.5%

OM% 14.1% 20.1%

OPINC $18.1M $43.4M (+140%)

22

*Q2 2018 projections at Investor Day.

Includes International estimates & announced product & growth

Initiatives

Amounts & projections are estimates and subject to change

REVENUE

GROW

MARGIN

GROW

PRODUCTS

GROW

GEOGRAPHY

GROW TEST

SUPPLIES

ACQUIRE

Rotor Chemistry (Q2 ‘19)

Immunodiagnostics (Limited) (Q2 ’19)

Urine & Fecal AI Imaging (Q2 ‘20)

Major Drivers

2019 Expanding Products: Major Growth Initiatives

GROW PRODUCTS

24

GROW PRODUCTS

2019 Major Product Expansion

International Focused Launch (Q2 ‘19)

Global Veterinary and Animal Health

20 Tests per Rotor (v 14 Tests on Market)

Two way wireless and Ethernet

communication

Superior run-time and performance

Under 12 pounds (5.5kg)

Superior Heska Reset Economics

Lower Cost. Smaller. Faster. Higher Sensitivity. Broad Menu Roadmap

Wide Dynamic Range & Sensitive Multiplexing Test Cards

Quantitative Readout. Two-way data communication

Single Use (Lateral Flow and ELISA) Competitive Test Replacement

Substantially Lower Cost per Test

Global Animal and Veterinary Health with Manufacturing Rights

Major Drivers


25

(Q2 ‘19)

High Sensitivity Immunodiagnostics Multi Plex Analyzer (>$100M Target)

GROW PRODUCTS

Major Drivers


High Sensitivity Immunodiagnostics Multi Plex Analyzer (>$100M Target)

26

(Q2 ‘19)

2019-2020 Assays in Development

Non-Regulatory (USDA)

Total T4 (Q2 ‘19 Launch)

Cortisol (Q2 ‘19 Launch)

Canine TSH

2019-2020 Assays in Development

Regulated (USDA)

Canine Heartworm (4+ Plex)

Lyme (4+ Plex)

Anaplasma (4+ Plex)

Ehrlichia (4+ Plex)

GROW PRODUCTS

Major Drivers

5 Million Urine Sedimentation Exams Annually

7,000+ Competitive Sediment Analyzers Placed in Validated Market


Urine Sediment Full Automatic Imaging (>$100M Target)

Fecal Flotation Full Automatic Imaging (>$300M Target)

30 Million Manual Point of Care Fecal Floatation Exams

Roundworm, Hookworm, Tapeworm, Whipworm, Flukeworm, Giardia & more…

(Q2 ‘20) GROW PRODUCTS

Major Drivers

Q1 2019 Test Supplies and Test Beds Validated

Q3 2019 Alpha Instruments and Low Volume Test Supplies

Q4 2019 Beta Instruments and Test Supplies Manufacturing Line in Volume

Q2 2020 Production Instruments in Volume. Commercial Release.

Production and Development Plan


(Q2 ‘20) GROW PRODUCTS

International Expansion Begun (Q4 ‘18)

Heska Australia 2019.

� Direct Presence & Team Established.

� Leadership Trained.

� Revenues Targeted for Q1 ‘19

Major Drivers

GROW GEOGRAPHY

International Expansion Begun (Q4 ‘18)

Heska International Country-Area Target Partners 2019.

� 5 Partners in Identification & Startup Process

� Revenues International Partners Targeted Q3 ’19

� Non-Direct Markets and Regions

� Portions of Eastern Europe, Middle East, Eurasia

� Latin and South America

� Broader Asia

� Scandinavia

� United Kingdom

Major Drivers

GROW GEOGRAPHY

France Acquisition Geographic Expansion

Acquisition (France)

Agreement to Acquire Signed January ’19*

Expected to Close in Q1 ‘19

Market Leading new Products to Heska

+/- 900 Customers (Primarily in France)

Headquarters and Team in Paris, France

+/- €4.0 Million Sales 2018

Expected neutral to EPS 2019; Accretive thereafter

Major Drivers*Subject to closing conditions, approval, additional diligence, and other items; Sales not forward looking guidance.

ACQUIREGROW

GEOGRAPHY

2019 Growing Test Supplies (15% - 20%)

Grow Market Share

a. New Single User Subscriptions

b. New Corporate Groups

c. Corporate Groups Acquisitions Convert to Heska

d. Share Gainer ±3% (‘14) to ±10% (‘18) in POC (USA)

e. Expanded N America Sales Team 25% (’18) (85 to 105)

f. Expand International POC Market Share from +/-0%

GROW TEST

SUPPLIES

GROW

MARKET

SHARE

GROW

UTILIZATION

GROW

PRICE

GROW

PRODUCTS

Incremental Drivers32

2019-2020 Growing Test Supplies (15% - 20%)

Grow Utilization on Existing Installs

a. New Tests Launched on several Analyzer Platforms

b. Leverage over 2,000 Subscriptions for Launches

c. More Patient Visits (+5%) drive Hospital Growth

d. 15% of Patient Visits result in a Diagnostic (75bps)


GROW TEST

SUPPLIES

GROW

MARKET

SHARE

GROW

UTILIZATION

GROW

PRICE

GROW

PRODUCTS


Grow Price

a. Price Protection for Installed Base (4%)

GROW TEST

SUPPLIES

GROW

MARKET

SHARE

GROW

UTILIZATION

GROW

PRICE

GROW

PRODUCTS



Grow Products

a. New products from R & D

b. New products from Acquisitions

c. New Tests to Installed Base of Instruments

GROW TEST

SUPPLIES

GROW

MARKET

SHARE

GROW

UTILIZATION

GROW

PRICE

GROW

PRODUCTS


Act Two: 2018 to 2022

2017 2022*

REV $129M$216M (+68%)

GM% 45% 49.5%

OM% 14.1% 20.1%

OPINC $18.1M $43.4M (+140%)

36

*Q2 2018 projections at Investor Day.

Includes International estimates & announced product & growth

Initiatives

Amounts & projections are estimates and subject to change

REVENUE

GROW

MARGIN

GROW

PRODUCTS

GROW

GEOGRAPHY

GROW TEST

SUPPLIES

ACQUIRE

Positioned to Grow in a Consolidating & Integrated Global Market

37

REVENUE

GROW

MARGIN

GROW

PRODUCTS

GROW

GEOGRAPHY

GROW TEST

SUPPLIES

ACQUIRE

Documents

Investor Presentation 2019. Important Disclosure and Safe ......Investor Presentation 2019. Important Disclosure and Safe Harbor Notice. This document and presentation (verbal or written)