Half-Yearly Review 2011 Six months ended 31 December 2010 ®

3 Overview Group revenue increased by 4.0% Underlying operating profit up 13.0% Underlying earnings per share 15.60p Strong performance from Dechra Veterinary Products EU and US Resilient performance from Services in difficult economic conditions Two earnings enhancing acquisitions completed £0.4 million increase in product development spend as the pipeline continues to deliver results Strong increase in dividend in line with underlying earnings Balance sheet remains strong

4 Half-Yearly Results Six months ended 31 December Revenue£192.2m£184.8m+4.0% Underlying operating profit*£14.5m£12.8m+13.0% Operating profit£10.0m£8.8m Underlying profit before taxation*£13.9m£13.7m+1.5% Profit before taxation£9.0m£9.7m Underlying basic earnings per share*15.60p15.37p+1.5% Basic earnings per share10.10p10.85p Interim dividend3.70p3.30p+12.1% Net borrowings£49.6m£18.5m Dividend cover*4.2 times4.6 times * before amortisation of acquired intangibles, acquisition expenses, rationalisation costs, payments to acquire technology for the research and development programme, impairment charges and loss on extinguishment of debt

5 Growth in Revenue and Underlying Operating Profit Growth % Revenue growth Organic at constant currency3.6 Acquisitions 0.9 Currency(0.5) ==== Underlying operating profit growth Organic at constant currency9.1 Acquisitions5.3 Currency(1.4) ====

6 Financials European Pharmaceuticals £’000 Revenue - core43,38141, % - acquisitions ,67741, %===== Underlying operating profit - core 10,392 9, % - acquisitions ,4369, %===== Pharmaceuticals revenue grew by 11.1% (excluding acquisitions) Diets revenue increased by 5.6% Reduction in contract manufacturing revenue due to expected lower than production from largest contract

7 Financials US Pharmaceuticals £’000 Revenue - core5,1365,350 - acquisitions1, ,4765, %==== Underlying operating profit - core1, % - acquisitions , %==== Strong increase in profitability due to increased sales of own-developed products and benefit of DermaPet ® acquisition Core revenue impacted by ophthalmic and otic products supply issues

8 Financials Services £’000 Revenue148,592144, % Underlying operating profit6,3496, % NVS ® profit level held despite increasingly competitive market place and disrupted December trading Laboratories profit reduced due to very poor December trading

9 Financials Group Statement of Financial Position £’000 Balance Sheet Non-current assets - intangible assets 125,87390,574 - property, plant and equipment 7,7148, ,58798,682 Net working capital39,22424,701 Contingent and deferred consideration(14,800)- Current and deferred tax liabilities(16,652)(19,129) Net borrowings(49,648)(18,459) Net assets91,71185, Borrowings increased due to £33.0 million cost of acquisitions

10 Financials Group Cash Flow £’000 Cash Flow Cash flow from operations before interest and taxation8427,397 Capital expenditure - Intangible assets Property, plant and equipment ,6021,072===== Inventory days5549 Receivable days4238 Payable days5253 Increase in inventory levels ahead of bringing marketing of certain products back in-house and change of diets manufacturer Extended payment terms offered to certain customers to meet competitive pressure

11 Acquisition - DermaPet Total potential consideration US$64.0 million Funded by refinancing debt facility Accelerates presence and scale of our US operation Further strengthens the Group’s dermatological portfolio Cost synergies identified and being delivered in H2 Opportunity to increase EU sales Will be materially earnings enhancing in first full year

12 Acquisition - Genitrix ® Total potential consideration £6.4 million Funded from existing cash resources Increases UK portfolio of veterinary products Significant cost synergies identified and being delivered in H2 Recently approved UK product Libromide ® being taken through Mutual Recognition Will be earnings enhancing in first full year

13 Product Development Vetoryl ® approved in Japan Equidone ® approved in USA Two generics approved in the UK Progress made on pipeline New opportunities being explored Organic ‘Specific ® ’ range launch imminent

14 European Pharmaceuticals Review Dechra Veterinary Products EU Overall veterinary product growth of 8.0% Both pharma and diets outperforming markets New EU market opportunities; Belgium and Germany Contracts completed for Specific to be marketed in USA and South Korea Dales ® Manufacturing Application to achieve FDA compliance at ‘Dales’ ongoing Fuciderm ® Gel and Canaural ® now manufactured at Dales

15 US Pharmaceuticals Review Dechra Veterinary Products US Equidone launched Sales and marketing teams strengthened Vetoryl not yet fulfilling its potential Supply issues on otic and ophthalmic products detract from strong performance

16 Services Review NVS Operating efficiencies gained Integrated ERP system go live planned for April 2011 Laboratories Result affected by poor December performance Largest client retained following tender

17 International pharmaceutical and diets businesses delivering good growth Strong growth in own products underpins Group strategy General economic weakness resulting in competitive markets New products and in-house marketing of our own products will enhance growth Cost synergies will be delivered from recent acquisitions Strong product development pipeline Our strategy will continue to deliver shareholder value Outlook

18 Segmental Summary £’000 Revenue European pharmaceuticals43,67741,313 US pharmaceuticals6,4765,350 Services148,592144,331 Inter-segment(6,537)(6,220) ,208184, Underlying operating profit European pharmaceuticals10,4369,621 US pharmaceuticals1, Services6,3496,473 Research & development(2,456)(2,064) Corporate and other unallocated costs(1,700)(1,534) ,47512,

19 Trademarks Trademarks of the Dechra Group of companies appear throughout this document in italics. Dechra and the Dechra ‘D’ logo are registered Trademarks of Dechra Pharmaceuticals PLC. The Malaseb Trademark is used under licence from Dermcare-Vet Pty. Ltd. Forward-Looking Statements This document contains certain forward-looking statements. The forward-looking statements reflect the knowledge and information available to the Company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involving a degree of uncertainty. Therefore, nothing in this document should be construed as a profit forecast by the Company.

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