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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


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HESKA CORPORATION INVESTOR PRESENTATION

HSKA JANUARY 2020

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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.

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  • 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)

Today’s Presentation

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Pet Healthcare Universe Overview

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

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Supportive Growth Trends Global & Demographic

2.6 2.6 2.6 3.3 Silent Generation Baby Boomers Gen X Millennials

Ave verage Canine Vet Visi sits s per Year by y Owner Age 27% increase

1,813 1,976 2,154 2,352 2,574 2017 2018 2019 2020 2021

Global Veterinary y Diagnost stics s Marke ket > $2 Billion

~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

9.2% CAGR

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Po Point of Care Ref Refer erence ence Labor Laborat ator

  • ry

DIAGNOSTICS IS CENTRAL L & SCARCE ≈ 2% ≈ 48% ≈ 50% North America a Reference Lab Lab Shar are ≈ 23% ≈ 12% ≈ 65% North America a POC Shar are

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.

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Veterinary Healthcare

  • Humanization of pets globally
  • Lifecycle “family member” juvenile, wellness and aging care
  • Historically recession resistant
  • Positive regulatory, payor and demographic trends
  • Accelerating industry investment and consolidation

Point of Care Diagnostics

  • ~ 6%-8% Annual Global Veterinary Diagnostics Growth1
  • Major veterinarian revenue / profit center in 90% of hospitals
  • Diagnostics utilization is key (15% - 25%+ of hospital pet visits)1
  • Increases in hospital pet visits (~2% - 5%)1
  • 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

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Heartworm Therapeutic Heartworm Diagnostic Element DC Chemistry Vet/IV Infusion Pump Element DC5X Chemistry Element RC Chemistry Element HT5 Hematology Element i+ Immunoassay Element POC Gas & E-M Lyte Element COAG Coagulation Element UF Urine & Fecal Cloud Data Solution Hospital Digital Radiography Portable Digital Radiography Digital Ultrasound Allergy Diagnostic Immunotherapy

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Leading Point of Care Full Product Portfolio “Complete Voice of the Pet”

Digital Endoscopy

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~90% of Heska POC Lab Consumables on Long-Term Subscription 1,2,3

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 value2 $701 $742 $743 $792 % growth N/A 13% 0% 7%

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

Subscriber Retention >95%

$38.0 $51.0 $56.4 $72.0

Minimum contract subscription value ($MM)1

24% 24% C CAGR

+3 +34% +1 +11% +2 +28%

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Double Customers & Geography Served Double Product & Revenue Streams Served Continue Core Base Business Growth (12%-17%+ Consumables Target)

Heska Three Point Strategy for 2018 to 2023

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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

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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.

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Positive Proforma Capital Structure (Estimated)

Starting Cash and Combined Debt starting balance as of September 30, 2019. Acquisition of scil calculated on “debt free – cash free”. Market Cap starting balance from January 14, 2020 ($757.2MM) plus $125MM for scil Acquisition financing. Amounts unaudited. While we are not aware of any misstatements regarding this information, we cannot guarantee its accuracy or completeness.

① Accretive Acquisitions ② Deleveraging Acquisitions ③ Strong Debt to Capitalization Ratios after Acquisitions ④ Common Stock Dilution provided for is less than 20%

$MM Proforma Combined Cash $66.0 Combined Debt $92.5 Net Debt $26.5 Market Cap (HSKA) $882.2 Total Capitalization $974.7 Net Debt / Cap 2.7% Total Debt / Cap 9.5%

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Scil Acquisition Overview

① $125MM Purchase Price / Cash Settlement ② Preferred Stock Convertible to 1,508,751 Common Stock ③ Close in 60 to 90 Days ④ Strong human resources alignment and full retention goal

$125MM for scil Acquisition financing. For more information see Company press release dated January 14, 2020.

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Now we Serve 25 Markets… and Growing.

United States Canada Australia Latin America Germany Spain Canada France Italy Netherlands Czech Republic Poland United Kingdom And More Spain France

Information regarding market share and market position is derived from data from publicly available information disclosed by third party sources and Heska internal estimates based on such data, scil data, and Heska’s knowledge of the industry. Heska has not independently verified the data from third party sources and cannot assure its accuracy or completeness, and Heska internal and scil estimates have not been independently verified. Data specifically excludes items not point of care, including central reference laboratories and single use “rapid” tests. While Heska is not aware of any misstatements regarding this information, Heska cannot guarantee its accuracy or completeness. Information regarding future sales, sales split percentages, sales geography percentages, and goals 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.

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Now we are #1, #2, or #3 Key Markets… and Growing.

United States #3 ≈ 12.5% Canada #3 ≈ 13.0% Germany #1 ≈ 40.0% Spain #1 ≈ 40.0% France #2 ≈ 30.0%

Information regarding market share and market position is derived from data from publicly available information disclosed by third party sources and Heska internal estimates based on such data, scil data, and Heska’s knowledge of the industry. Heska has not independently verified the data from third party sources and cannot assure its accuracy or completeness, and Heska internal and scil estimates have not been independently verified. Data specifically excludes items not point of care, including central reference laboratories and single use “rapid” tests. While Heska is not aware of any misstatements regarding this information, Heska cannot guarantee its accuracy or completeness. Information regarding future sales, sales split percentages, sales geography percentages, and goals 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.

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New Global Presence to Double Customer Opportunities

2018 Sales Geography (2)

USA 55% Europe 37% RoW 2% Canada 7% RoW 2% Canada 2% Europe 5% USA 91%

2020 Sales Geography (1)

  • 1. 2020 is forward looking estimate subject to closing of scil Acquisition and

numerous other factors outlined in the Company’s press release of January 14, 2020 and Safe Harbor in this presentation. Amounts not GAAP and are estimates; results may materially differ. Management believes this visual will assist investors to understand the Company’s business and strategy.

  • 2. All amounts rounded and not GAAP. Refer to 10K ending December 31, 2018 for

GAAP, segments, revenue recognition, and other information relevant to (1) and (2).

~26,000 hospitals (USA) ~65,000 hospitals (Intl)

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International Acquired Sales Mix Favorable

Starting Ex-US Sales Mix(1)

10% Lab 60% Imaging 30% Other Core Comp Animal

  • 1. All amounts rounded and not GAAP and estimated for 2020; amounts are forward looking estimate subject numerous factors outlined in the Company’s press release of January 14, 2020 and Safe Harbor in this presentation. Actual results may

materially differ. Management believes this visual will assist investors to understand the Company’s business and strategy.

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Estimated Consolidated Sales Mix

2018 Sales Mix (2)

15% Lab 45% Imaging 18% Other Vaccine & Pharma Other Core Comp Animal 22%

2020 Sales Mix(1)

7% Lab 60% Imaging 23% 10% Other Vaccine & Pharma Other Core Comp Animal

  • 1. 2020 is forward looking estimate subject to closing of scil Acquisition and numerous other factors outlined in the

Company’s press release of January 14, 2020 and Safe Harbor in this presentation. Amounts not GAAP and are estimates; results may materially differ.

  • 2. All amounts rounded and not GAAP. Refer to 10K ending December 31, 2018 for GAAP, segments,

revenue recognition, and other information relevant to (1) and (2).

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Heska is a Good Owner of These Assets with Strong Management in First Five Year Plan (2013-2017)

¹ 2017 U.S Tax Reform impacts of +/- ($5.9M) included, as further discussed in our Form 10- K/A for the year ended December 31,2017

$MM, except p/share Hesk Heska 2013 2013 Hesk Heska 2017 2017 Re Revenue $78.3 $129.3 Gr Gross margin n % 39% 45% Ope Operating ng margin n % (2%) 14% Ope Operating ng Inc ncome ($1.43) $18.2 Ea Earnings pe per sha hare ($0.21) $1.3¹ As Assets $93.6 $135.8 Eq Equity $47.1 $100.4

Getting Product Right Getting Team Right Getting Costs Right Getting Model Right

Getting

Narrative

Right

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Strong Management Results First Five Year Plan (2013-2017)

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Getting Product Right Getting Team Right Getting Costs Right Getting Model Right

Getting

Narrative

Right

$MM, except p/share Hesk Heska 2013 2013 Hesk Heska 2017 2017 Sc Scil il-CV CVM 2020 2020 Es Estim imate Re Revenue $78.3 $129.3 < < $75. $75.0 Gr Gross margin n % 39% 45% < < 35% 35% Ne Net Revenue CAGR 10.2% Gr Gross Profit CAGR GR 13.1% Co Core Supplies CA CAGR 12.9%

¹ 2017 U.S Tax Reform impacts of +/- ($5.9M) included, as further discussed in our Form 10- K/A for the year ended December 31,2017

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Double Products and Revenue Streams

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Research and Growth Development Investments

2018 $19MM R&D Business Development Investments

  • Core Technologies and Inventions for Product Pipeline
  • Sales Team Expansion
  • Prepare Heska to Manufacture Heska POC Diagnostics Test Cards

2019 Accelerated R&D up +190% YOY in first six months

  • New Analyzer Platforms for 2nd Half 2019 & FY2020
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International Markets 2020

Global Veterinary and Animal Health 20 Tests per Rotor (v 14 Tests on Launch) Two way wireless and Ethernet Superior run-time and performance Under 12 pounds (5.5kg) Superior Heska Reset Economics

2020 Major Product Expansion

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Major Drivers

2020 Assays in Development Non-Regulatory (USDA)

Total T4 Cortisol Canine TSH Progesterone

2020 Assays in Development Regulated (USDA)

Canine Heartworm (4+ Plex) Lyme (4+ Plex) Anaplasma (4+ Plex) Ehrlichia (4+ Plex)

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

2020 Major Product Expansion

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Major Drivers

5 Million Urine Sedimentation Exams Annually 7,000+ Competitive Sediment Analyzers in validated market

2020 Major Product Expansion

Urine Automatic Imaging (>$100M Target)

30 Million Manual Point of Care Fecal Floatation Exams

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

(Mid 2020) Fecal Automatic Imaging (>$300M Target)

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Major Drivers

þ Test Supplies and Test Beds Validated þ Alpha Instruments & Low Volume Test Supplies þ Sales Training & Public Marketing (VMX Orlando) Q2 2020 Beta Instruments & Test Supplies Manufacturing in Volume Q3 2020 Production Instruments in Volume. Commercial Release.

Production and Development Plan Outlook (Mid 2020)

2020 Major Product Expansion

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Continue Core Business Growth

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Continue Core Business Growth (Organic and Acquired) 1) Grow Market Share

  • Continue New Single User Subscriptions Wins
  • Continue Corporate Groups Sites Installs
  • Continue Expanded Sales Teams
  • Expand into International POC Market Share

3) Grow Price

  • Price (4%) Annual Escalators in Subscriptions
  • New Tests and Panels Launches

2) Grow Utilization in Existing Sites

  • Launch New Tests on several Analyzers (2019-2020)
  • Capture Positive Market Trends & Demographics
  • More Patient Visits & Hospital Growth
  • Higher % of Patient Visits doing a Diagnostic

4) Grow Products

  • New and Upgrade Products from R&D
  • New and Upgrade Products from Acquisitions
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Double is Beautiful