01 SAFE HARBOR NOTICES This presentation contains forward-looking - PowerPoint PPT Presentation

HESKA CORPORATION INVESTOR PRESENTATION HSKA JANUARY 2020

01 SAFE HARBOR NOTICES This presentation contains forward-looking information related to the Heska Corporation (the “Company”). This forward-looking information generally includes statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. All of the statements in this document, other than historical facts, are forward-looking statements and are based on a number of assumptions that could ultimately prove inaccurate and cause actual results to materially deviate from forward-looking statements. Forward-looking statements in this document include, among other things, statements with respect to future sales, sales split percentages, sales geography percentages, market share, and strategic goals, the expected timing of the scil Acquisition and its funding and its anticipated benefits; the expected conversion of the Preferred Shares into shares of Public Common Stock; anticipated investments and growth; and the number of customers that the Company will be able to acquire and retain. Such statements are subject to risks and uncertainties, including, but not limited to, uncertainties related to the closing of the Acquisition; the obtaining of shareholder approval to increase the number of shares of Public Common Stock authorized by the Company’s Certificate of Incorporation; the ability to achieve the anticipated benefits of the Acquisition uncertainties related to supplier availability, competing suppliers, any product’s ability to perform and be recognized as anticipated, in particular when such product is under development; uncertainties related to Heska’s ability to sell and market its products in an economically sustainable fashion, including related to varying customs, cultures, languages and sales cycles and uncertainties with foreign political and economic climates; and the Company’s ability to integrate the acquired scil business within its existing operations; and new product development and release schedules. Other factors that could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements are set forth under “Risk Factors” in the Company’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. 2

Today’s Presentation 1. Pet Healthcare Universe and Heska Overview 2. Heska Three Point Strategy Double Customers & Geography Served Double Product & Revenue Streams Served Continue Core Base Business Growth (12%-17%+ Consumables Target)

Pet Healthcare Universe Overview

(1) Point of Care (2) Reference Lab (3) Rapid Singles (4) Imaging Diagnostics Drives >25% of Care Diagnostics Drives “Test & Treat” Diagnostics Drives Rx & Therapy 5

Supportive Growth Trends Global & Demographic Ave verage Canine Vet Visi sits s per Year by y Owner Age Global Veterinary y Diagnost stics s Marke ket > $2 Billion 27% increase 9.2% CAGR 2,574 2,352 3.3 2,154 1,976 2.6 2.6 2.6 1,813 Silent Generation Baby Boomers Gen X Millennials 2017 2018 2019 2020 2021 ~26,000 veterinary hospitals (USA) ~65,000 veterinary hospitals (Intl) Amounts estimated. Source: American Pet Prod Assoc Generational Report; 2017-18 Pet Owners’ Survey; American Pet Products Association; Technavio Global Veterinary Diagnostics Market 2017-2021 report

DIAGNOSTICS IS CENTRAL L & SCARCE Point of Care Po Refer Ref erence ence Labor Laborat ator ory North America a Reference Lab Lab Shar are North America a POC Shar are ≈ 65% ≈ 50% ≈ 12% ≈ 48% ≈ 2% ≈ 23% Information derived from publicly available information data disclosed by third-party sources, our own internal estimates based on such data, and our knowledge of the industry; it has not been independently verified and we cannot assure you of its accuracy or completeness. Our internal estimates have not been independently verified. While we are not aware of any misstatements regarding this information, we cannot guarantee its accuracy or completeness.

Veterinary Healthcare Point of Care Diagnostics Humanization of pets globally ~ 6%-8% Annual Global Veterinary Diagnostics Growth 1 • • Lifecycle “family member” juvenile, wellness and aging care Major veterinarian revenue / profit center in 90% of hospitals • • Historically recession resistant Diagnostics utilization is key (15% - 25%+ of hospital pet visits) 1 • • Positive regulatory, payor and demographic trends Increases in hospital pet visits (~2% - 5%) 1 • • Accelerating industry investment and consolidation Favored by veterinarians (veterinary licensure required) • • New point of care technologies pull tests to point of care • Pricing tends to increase each year • High priority spend item has revenue security in tight budgets • Information derived from publicly available information data disclosed by third-party sources, our own internal estimates based on such data, and our knowledge of the industry; it has not been independently verified and we cannot assure you of its accuracy or completeness. Our internal estimates have not been independently verified. While we are not aware of any misstatements regarding this information, we cannot guarantee its accuracy or completeness. Source: American Pet Prod Assoc Generational Report; 2017-18 Pet Owners’ Survey; American Pet Products Association; Technavio Global Veterinary Diagnostics Market 2017-2021 report

Leading Point of Care Full Product Portfolio “Complete Voice of the Pet” Element DC5X Element RC Element HT5 Element i+ Element POC Element COAG Element DC Chemistry Chemistry Hematology Immunoassay Gas & E-M Lyte Coagulation Chemistry Element UF Cloud Data Hospital Digital Portable Digital Digital Vet/IV Digital Urine & Fecal Solution Radiography Radiography Ultrasound Infusion Pump Endoscopy Heartworm Heartworm Allergy Diagnostic Diagnostic Therapeutic Immunotherapy 9

02 ~90% of Heska POC Lab Consumables on Long-Term Subscription 1,2,3 Minimum contract subscription value ($MM) 1 CAGR 24% C 24% +2 +28% +1 +11% +3 +34% $72.0 $56.4 $51.0 $38.0 2015 2015 2016 2016 2017 2017 2018 2018 Subscriptions 1,239 1,667 1,950 2,175 % growth N/A 35% 17% 12% Months under subscription 54,200 68,750 75,950 90,850 % growth N/A 27% 10% 20% Monthly contract subscription $701 $742 $743 $792 value 2 % growth N/A 13% 0% 7% Subscriber Retention >95% 1 Includes Corporate Accounts estimates similar to individual accounts CSV (Contract Subscription Value). 3 As of December 31, 2018. 2 Represents minimum contract subscription value / subscription months

Heska Three Point Strategy for 2018 to 2023 Double Customers & Geography Served Double Product & Revenue Streams Served Continue Core Base Business Growth (12%-17%+ Consumables Target)

Double Customers and Geography: Acquisition Strategy Seek targets at a favourable price and multiples: Positive profit, accretion, and LT return on capital expectations • Derive significant revenue from: • Existing POC diagnostics installed base that Heska can accelerate Geographies in POC diagnostics that Heska can accelerate Margins and Growth Rates that will improve with Heska portfolio

Now we are stronger and global… and Growing. Expect $200 Million in Sales for 2020 Over 500 Professionals with over 150 Direct Sales Direct Sales Teams in 10 Countries Logistics and Operations in 7 Countries Installations of over 30,000 Analyzers Information from Heska data and internal estimates of scil data provided to Heska from scil. Direct Sales teams include RM, TM, ISAM, FSR, Imaging, Sales Management, and Other. Heska has not independently verified the data from third party and cannot assure its accuracy or completeness, and Heska internal and scil estimates have not been independently verified. Sales estimate based on scil closing date on or before April 1, 2020, adjustments anticipated for equipment portion of revenue recognition under subscriptions agreements, integration effects, and other variabilities; estimate may materially deviate from actual performance. While Heska is not aware of any misstatements regarding this information, Heska cannot guarantee its accuracy or completeness. Information regarding future sales are forward-looking statements and actual results can materially differ from those noted, due to several factors, including but not limited to market, currency, integration, supplier, distributor, scil, and Heska performance and those mentioned in Safe Harbor and forward-looking statements disclaimer herein.