Unlocking Neogen's Potential J.P. Morgan Healthcare Conference January 14, 2026 © 2026 Neogen Corporation. All rights reserved. | 1 Disclaimer Forward-Looking Statements This presentation includes "forward-looking statements" as that term is defined in Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Neogen's current expectations and are subject to risks and uncertainties, which could cause a ...

Core Insights - Neogen (NEOG) is identified as a food safety play but is currently not considered a safe investment for investors due to its weak performance following a problematic acquisition by 3M in the food safety sector [1] Group 1: Company Performance - Neogen has experienced significant value destruction as a result of its acquisition/merger with 3M in the food safety domain [1] - The company's business performance has been weak post-acquisition, indicating challenges in its operational effectiveness [1] Group 2: Investment Opportunities - The investment group "Value In Corporate Events" focuses on identifying actionable ideas from major corporate events such as earnings reports, mergers, and acquisitions [1] - The group aims to provide coverage of 10 major events each month to uncover the best investment opportunities [1]

Financial Data and Key Metrics Changes - Total Q2 revenues were $224.7 million, increasing 2.9% on a core basis, with foreign currency contributing 0.9% and divestitures and discontinued products being a headwind of 6.6% [12][19] - Adjusted EBITDA was $48.7 million, representing a margin of 21.7%, an improvement of 470 basis points from Q1 [19] - Gross margin in Q2 was 47.5%, a sequential improvement of 210 basis points from Q1, primarily due to volume and lower tariff costs [18] Business Line Data and Key Metrics Changes - Food safety segment revenues were $165.6 million, with core revenue growth of 4.1%, driven by strong growth in indicator testing and culture media product categories [13] - Animal safety segment revenues were $59.1 million, with core revenue growth approximately flat compared to the prior year, although biosecurity products saw solid growth [15] - The global genomics business had core revenue growth accelerate to 6%, with solid growth in the bovine market [16] Market Data and Key Metrics Changes - Core revenue growth in Q2 was led by the LATAM region, up high single digits, while the U.S. and Canada region had mid-single-digit growth [17] - The APAC region saw low single-digit core growth, while the EMEA region experienced a low single-digit decline [17] Company Strategy and Development Direction - The company is focused on stabilizing and strengthening its core business, with a clear emphasis on improved top-line growth and profitability [4] - A rigorous process-oriented approach to commercial excellence is being implemented, emphasizing strong operational planning and data-driven decisions [5] - The leadership team has been strengthened with experienced operators to drive transformation and operational efficiency [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming recent macroeconomic and execution-related headwinds, with a belief that challenges are solvable or transitory [4][10] - The company raised its full-year guidance for fiscal 2026, expecting revenue in the range of $845 million to $855 million and adjusted EBITDA of approximately $175 million [20] Other Important Information - The company is in the process of divesting its global genomics business, which is expected to simplify operations and enhance margins [22][23] - The integration of Petrifilm is on track for the Q2 of fiscal 2027, with positive progress in production testing and product validation [9][56] Q&A Session Summary Question: Can you discuss the new management team and how long it will take for them to gel? - Management highlighted the recruitment of top-tier talent and emphasized the importance of experienced leaders in diagnostics and life sciences to drive operational excellence [30][32] Question: What was the headwind to margins from sample handling? - Management acknowledged challenges in sample collection but indicated improvements are expected in the second half of the year, with a focus on profitability [34][36] Question: Why hasn't the implied H2 growth or margin been higher? - Management stated that a conservative approach is being taken due to lingering macroeconomic weaknesses and the need for the new team to settle in [41][42] Question: Were there any one-time revenue tailwinds in the quarter? - Management noted a $2 million insecticide tailwind in Q2 but indicated that it was the only significant one-time factor [45] Question: What changes in the commercial organization have contributed to the strong quarter? - Management emphasized a focus on the basics, driving simplicity, and implementing a weekly forecasting process to enhance predictability [52][54] Question: How is the Petrifilm manufacturing process progressing? - Management expressed confidence in the Petrifilm project, stating that production testing is going well and the timeline remains on track [56]

Financial Data and Key Metrics Changes - Total second quarter revenues were $224.7 million, increasing 2.9% on a core basis, with foreign currency contributing 0.9% and divestitures and discontinued products impacting by 6.6% [12][19] - Adjusted EBITDA was $48.7 million, representing a margin of 21.7%, an improvement of 470 basis points from the first quarter [19] - Gross margin in the second quarter was 47.5%, a sequential improvement of 210 basis points from the first quarter, primarily due to volume and lower tariff costs [18] Business Line Data and Key Metrics Changes - Food safety segment revenues were $165.6 million, with core revenue growth of 4.1%, driven by strong growth in indicator testing and culture media product categories [13] - Animal safety segment revenues were $59.1 million, with core revenue growth approximately flat compared to the prior year quarter, despite solid growth in biosecurity products [15] - Global genomics business had core revenue growth accelerate to 6%, with solid growth in the bovine market [16] Market Data and Key Metrics Changes - Core revenue growth in the Latham region was high single digits, while the U.S. and Canada region had mid-single-digit growth [17] - APAC region saw low single-digit core growth, led by pathogen detection products, while EMEA region had a low single-digit core growth decline [17] Company Strategy and Development Direction - The company is focused on improving top-line growth and profitability, with a transformation strategy centered on stabilizing and strengthening its core [4] - A rigorous process-oriented approach to commercial excellence is being implemented, emphasizing strong operational planning and data-driven decisions [5] - The leadership team has been strengthened with experienced operators to drive growth and innovation [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming macroeconomic and execution-related headwinds, with a belief that challenges are solvable or transitory [4] - The company raised its full-year guidance for fiscal 2026, expecting revenue in the range of $845 million-$855 million and adjusted EBITDA of approximately $175 million [20] - Management acknowledged the importance of building credibility with investors and maintaining a conservative approach to guidance amid lingering market weaknesses [42] Other Important Information - The company is in the process of divesting its global genomics business, which is expected to simplify operations and enhance incremental margins [22][23] - The integration of Petrifilm is on track for the second quarter of fiscal 2027, with positive progress in production testing and product validation [9][56] Q&A Session Summary Question: Can you discuss the new management team and their integration? - Management highlighted the recruitment of top-tier talent with experience in diagnostics and life sciences, emphasizing the importance of operational excellence and alignment on priorities [30][32] Question: What are the headwinds to margins from sample handling? - Management acknowledged challenges in sample collection but expressed optimism for profitability improvements in the second half of the year [34][36] Question: Why is the implied H2 growth or margin not higher? - Management indicated a prudent approach to guidance, focusing on sustainable performance and the settling in of the new team [41][42] Question: Were there any one-time revenue tailwinds in the quarter? - Management noted a $2 million insecticide tailwind in the animal safety segment as the only significant one-time factor [45] Question: What changes in the commercial organization have contributed to recent success? - Management emphasized a focus on basics, driving simplicity, and implementing a weekly forecasting process to enhance predictability [51][52]

Core Viewpoint - Neogen Corporation (NASDAQ: NEOG) is facing a class action lawsuit due to allegations of issuing materially false and misleading statements regarding its integration with the Food Safety Division of 3M Company, which misled investors about the progress of the integration [3]. Group 1 - The class period for the lawsuit is from January 5, 2023, to June 3, 2025 [3]. - Allegations include that the defendants downplayed inefficiencies arising from the integration and assured investors of their commitment to resolving these issues quickly [3]. - Shareholders are encouraged to register for the class action by the deadline of September 16, 2025, to potentially become lead plaintiffs [4]. Group 2 - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].

Core Viewpoint - A class action lawsuit has been filed on behalf of shareholders of Neogen Corporation for common stock purchases made between January 5, 2023, and June 3, 2025 [1]. Company Overview - Neogen Corporation is identified as a "food safety company" that specializes in manufacturing and marketing products and services aimed at food and animal safety [1].

Core Viewpoint - Neogen Corporation is facing a class action lawsuit due to alleged misleading statements and failure to disclose material facts regarding the integration of 3M's Food Safety Division, leading to significant financial losses for investors [1][4][7]. Group 1: Company Overview - Neogen Corporation develops, manufactures, and markets products focused on food and animal safety, and completed a strategic merger with 3M's Food Safety Division in September 2022 [3]. Group 2: Allegations and Financial Impact - The lawsuit claims that Neogen misrepresented the progress of the integration, which was actually facing operational and financial difficulties [5]. - Neogen reported a GAAP net loss of $461 million due to a non-cash goodwill impairment related to the 3M acquisition, along with downward revisions to revenue and EBITDA guidance for 2025 [5]. - Following the announcement of a Q3 net loss of $11 million and a 3.4% revenue decline to $221 million, Neogen's stock fell approximately 28% [5][6]. - The company also disclosed an expected drop in EBITDA margin to the "high-teens" from 22%, attributed to elevated inventory write-offs, resulting in a further decline of over 17% in share price [6].

Core Viewpoint - A class action has been filed against Neogen Corporation for allegedly misleading investors regarding its integration with 3M Company, which has negatively impacted its financial health [2][3]. Group 1: Allegations and Financial Impact - The complaint states that Neogen issued false statements about the smooth progress of its integration with 3M, failing to disclose significant integration issues [2]. - On January 10, 2025, Neogen reported a GAAP net income loss due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition, leading to a 5% decline in stock price to $12.36 per share [3]. - On April 9, 2025, Neogen announced a 3.4% drop in quarterly revenue to $221 million, attributed to integration issues, and cut its fiscal year 2025 revenue and EBITDA outlook, resulting in a 28% drop in stock price [4]. Group 2: Stock Performance and Market Capitalization - On June 4, 2025, Neogen projected an EBITDA margin in the high teens, down from 22% in the previous quarter, causing an additional 17% decline in stock price to $4.96 per share [5]. - From a high of $23.84 per share on August 15, 2023, Neogen's stock price fell by $18.88, or 79%, erasing over $4 billion in market capitalization [5].

Core Viewpoint - Neogen Corporation is facing a class action lawsuit due to allegations of misleading investors regarding its integration with 3M Company, which has negatively impacted its financial health [2][3]. Financial Performance - On January 10, 2025, Neogen reported a GAAP net income that was significantly negative, primarily due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition [3]. - Neogen cut its fiscal year 2025 revenue and EBITDA guidance following the negative financial disclosures [3]. - On April 9, 2025, Neogen announced a quarterly revenue decline of 3.4% to $221 million, attributing part of this to integration issues, and again revised its FY25 revenue and EBITDA outlook downward [4]. - The company projected capital expenditures of $100 million due to lowered adjusted EBITDA and a pull-forward of integration-related capital expenditures into FY25 [4]. - On June 4, 2025, Neogen expected its EBITDA margin to be in the high teens, a significant drop from the previous quarter's margin of 22% [5]. Stock Performance - Following the January 10, 2025 announcement, Neogen's stock price fell by 5% to close at $12.36 per share [3]. - After the April 9, 2025 announcement, the stock price plummeted by 28% [4]. - By June 4, 2025, the stock price had further declined by 17%, closing at $4.96 per share, marking a total drop of $18.88 per share or 79% from its August 15, 2023 high of $23.84 per share, erasing over $4 billion in market capitalization [5].

Core Viewpoint - Neogen Corporation is facing a class action securities lawsuit due to alleged securities fraud that misled investors regarding the integration with the Food Safety Division of 3M Company [1][2] Group 1: Lawsuit Details - The lawsuit seeks to recover losses for investors affected by misleading statements made between January 5, 2023, and June 3, 2025 [1] - Defendants allegedly issued materially false statements about the integration's progress and downplayed inefficiencies that arose during the process [2] Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until September 16, 2025, to request to be appointed as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky has a strong track record, having secured hundreds of millions for shareholders and ranked among the top securities litigation firms in the U.S. for seven consecutive years [4]