BOIRON : 2020 half-year report

HALF-YEAR FINANCIAL

REPORT 2020

FOR THE PERIOD ENDING JUNE 30,2020

Your health deserves the greatest respect	1

SUMMARY

Chapter 1:

HALF-YEAR ACTIVITY REPORT

• First half 2020 highlights	6
• Change in group sales	8
• Group financial position	9
• Consolidated cash flows	10
• Post balance sheet events	10
• Outlook	10
• Main risks and uncertainties	10
• Related party transactions	10

Chapter 2:

HALF-YEAR CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

• Consolidated financial statements	1 1
- Consolidated income statement	12
- Statement of comprehensive income	13
- Consolidated balance sheet	14
- Consolidated statement of cash flows	15
- Statement of changes in shareholders' equity	16
- Notes to the consolidated financial statements	17
• Statutory auditors' report on the consolidated financial statements	34
• Declaration by the person responsible	35

BOIRON, YOUR HEALTH DESERVES THE GREATEST RESPECT

A FEW WORDS FROM

VALÉRIE LORENTZ-POINSOT

An extraordinary first half of 2020

The first half of the year was above all marked by a reduction in the reimbursement rate for homoeopathic medicines as of January 1 from 30% to 15% in France, which resulted in a continued decline in business, with sales down 16.5% in France in the first half of the year.

This situation led the company to announce an unprecedented reorganisation plan for its business activities in France, giving rise to a proposed reduction of 646 jobs. International business increased 20.8% over the same period, largely due to developments in North America.

Our company also had to deal with the COVID-19 health crisis, while also demonstrating remarkable resilience given the economic and social context in France.

Valérie Lorentz-Poinsot

General Manager

In just a few days, the teams at our production sites, distribution facilities, support services and all subsidiaries, guided by our management committee and the Directors concerned, designed a business continuity plan enabling the group to maintain production, quality control operations and distribution of our medicines around the world:

• Multiple teams were operating under remote working arrangements in record time.
• Our staff's versatility has enabled us to transfer certain employees' duties to production and distribution, in order to meet requirements.
• When necessary, we've set up work commute solutions for employees. We have also prepared internal communica- tions to distribute messages and safety instructions as effectively as possible.
• We've kept in touch with our service providers and suppliers and have paid particular attention to our payment deadlines.
• Our sales teams in a number of countries have been temporarily placed under a partial operation arrangement.

During these unprecedented circumstances, we also wished to show our solidarity with the French people by answering the call from the French health authorities, by producing over 50 thousand litres of hand sanitizer, to be sent primarily to the Etablissements français du sang.

As such, the company, with some 3,500 employees around the world, has demonstrated remarkable agility and unwavering commitment.

Lockdown gradually ended from May 11, and all departments were therefore called upon to support this physical recovery for everyone under the best possible conditions, making sure to take lessons from this challenging period.

In France, the combination of the lockdown and the announcement of a reorganisation plan resulted in negotiations with employee representative bodies being postponed. These meetings have resumed since the beginning of June, and are expected to continue until October.

In order to maintain access to homoeopathic medicines for the 76% of French people (1) already taking them, particularly given the psycho-social risks linked to the health crisis, and in order to save as many jobs as possible at a time when the whole country is heavily affected by employment plans, we are requesting that reimbursement be maintained at 15%, which would enable the most vulnerable groups to access these medicines without any impact on public finances.

(1) IPSOS - March 2020

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