Intervet weathered market challenges in 2002

13 March 2003

Boxmeer, March 07, 2003 – Intervet’s excellent global coverage and its broad range of products for farm and companion animals put the company in a stable position to weather the year’s dips in the veterinary market and compensate for the challenging market conditions in some parts of the world. Intervet closed the year 2002 with EUR 1,081 million.

With EUR 1,081 million Intervet’s sales remained below the previous year’s level. Excluding the considerable effect of exchange rates, sales increased by 4,3% (price/volume) for the year. A substantially lower second quarter due to the weak economy in Latin America and significant one-off charges affected the earnings.

Accounting for approximately 53 percent of sales, the home market of Intervet showed a healthy growth. The Asian/Pacific region (12% of sales) had a mixed country by country development with an overall sound performance. Sales in North America (21 % of sales) developed in line with the flat animal health market in that region and were influenced by Euro/Dollar currency development. Sales deriving from Latin America, making 14 percent of total sales, were strongly affected by the macro economic situation in this region.

In 2002 Intervet International bv continued the business consolidation and streamlining of the company structure. Intervet’s efforts to optimize value creation are driven by innovation and application of state-of-the-art technology. Annual investment in R&D exceeds 10% of sales and more than 15% of Intervet’s total workforce is engaged in R&D activities. In 2002, a new project management system for R&D was implemented, creating an information interface for all functions involved in the development of new products.

Intervet’s research strategy focuses on the development of a proprietary antiparasitic drug by managing its drug discovery program and new antiparasitic vaccines. The modern pharmaceuticals research facility in Germany, is now completely staffed and fully operational for further expansion of R&D activities. In April 2002, after a 15-month construction period, modern virology research facilities were opened in the Netherlands. The construction of a state-of-the-art facility at the Kansas site was completed on schedule in the fall of 2002. The addition of a molecular laboratory in the United States in 2003 will enable researchers to take novel approaches in product innovation.

Intervet strives to respond quickly to a fast-changing, highly competitive business environment. For marketing purposes, extensive knowledge management databases have been launched to connect those involved in the global marketing process.
The global roll-out of the customer-oriented ordering and forecasting system introduced in 2001 was successfully finalized in June 2002. A major logistics and manufacturing initiative was started, to design and implement the next generation of business system platforms within Intervet’s larger subsidiaries. 
__________
Note for the editor:
Intervet, a business unit of Akzo Nobel, headquartered in Boxmeer, the Netherlands, with sales in 2002 of EUR 1,081 million, is focused on the research and development, manufacturing and marketing of veterinary products. Products include vaccines for the prevention of infectious diseases, anti-infectives, anti-parasitics, feed additives and products for fertility management. All of these products are intended for use in a variety of animal species, including poultry, pigs, cattle, sheep, goats, horses, fish and companion animals. Intervet operates globally through its own marketing organizations. The company currently employs around 5,000 people.

Internet: http://www.intervet.com

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2002 totaled EUR 14 billion. The Company currently employs approximately 68,000 people in more than 80 countries. Financial results for the first quarter will be published on April 16, 2003.

Internet:  http://www.akzonobel.com

Voor nadere informatie gelieve contact op te nemen met:

Intervet International bv  
Sabine Schüller 
Communicatie en Public Affairs 
Tel: +31 (0)485-587085
Fax: +31 (0)485-585..
communications@intervet.com