Galenica : Annual report - full version

Annual report 2021

of the Galenica Group and Galenica Ltd.

Galenica Annual report 2021

Milestones 2021

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Milestones2021

January

February

March

April

Expansion of the mail-­ order pharmacy service Amavita, Coop Vitality and now Sun Store customers can reorder medications on repeat prescriptions online. This marks a key milestone in the «Omni-Channel»strategy.

Introduction of G-NetThe Group-wideintranet, known as «G-Net»,will be launched at the start of the year. Office-basedand non-office-basedworkers will be networked with one another via the platform.

New ERP system Galexis begins the implementation phase of rolling out the new ERP (Enterprise Resource Planning) system.

Subscriptions for self-testsThe Switzerland-widedistribution of COVID-19 self-testshas begun. Amavita and Sun Store are offering customers a subscription that allows them to obtain five COVID-19 self-testseach month.

May

June

July

August

Verfora acquires Dr. Wild products Verfora acquires the therapeutic product range from Dr. Wild & Co. Ltd., which includes well-knownbrands such as Vitamin D3 Wild Öl® and VI-DE3®.

Remote working policy updated Galenica introduces its

updated­ remote working policy from the second half of the year in order to give employees the greatest possible degree of flexibility.

Acquisition of Lifestage Solutions Ltd.

Galenica strengthens its range of services for home care organisations and nursing homes with the acquisition of Lifestage Solutions Ltd.

Boosting and expanding pharmacy channels Galenica further expands its pharmacy network with the acquisition of Apodoc Hardbrücke Ltd. in Zurich, an innovative pharmacy with an integrated medical practice.

September

OctoberNovember

December

Verfora expands again With the acquisition of Spagyros, Verfora is strengthening its offering in the interesting fields of phytotherapy, gemmother- apy, spagyric medicine and homoeopathy.

Primary Care

The range of products and services in the Primary Care segment now includes a total of 28 indications designed to provide quick, expert advice in pharmacies with the help of an algorithm.

New Compendium app The Compendium.ch app from HCI Solutions has been given a makeover. This user-friendlyapplication is aimed not only at health- care professionals, but also at patients looking for information about medical products.

Modernisation of physical points of sale

The first ever Sun Store pharmacy, which is located in the Crissier Shopping Centre, is celebrating its reopening with a new, customer-oriented store design.

Galenica Annual report 2021

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Contents

2	Overview 2021
2	Milestones 2021
4	Foreword
7	Management report
34	Political environment
40	Outlook 2022

42	About us
44	Galenica Strategy
46	Sustainability at Galenica
52	Key figures
54	Financial key figures
56	Key social figures
60	Key environmental figures
66	Corporate Reporting
68	Corporate Governance
96	Remuneration Report
121	GRI report

1. Financial Reporting
2. Alternative performance measures 2021 of the Galenica Group

179	Consolidated financial statements 2021 of the Galenica Group
234	Financial statement 2021 of Galenica Ltd.
245	Spotlights

Galenica Annual report 2021

Foreword

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A strong partner in the healthcare industry

Dear Shareholders,

Ladies and Gentlemen,

Daniela Bosshardt, Chairwoman of the Board of Directors, and Marc Werner, CEO

We can look back on a successful 2021 financial year. With an increase in sales of 10.2% and increased profit of 26.7%, we exceeded our forecast for 2021. The ongoing COVID-19 pandemic once again had a major impact on our business. With our logistics services and the offerings in pharmacies to combat COVID-19, we were able to make a key contribution to creating reliable procurement and supply chains as well as to patient safety and health.

You can find an operative review of the past financial year in our Management report.

Management report 2021

Over the past year, a number of changes have also taken place in the political environment, which has an impact on our business, such as the delay in the preparation of the SBR V tariff model and the revision of the distribution share, or the discussion about direct imports from other European countries.

Political environment

«Our patients and customers are at the heart of what we do. And this is at the core of our customer promise.»

The focus is on the customer

Our transformation journey on the path to becoming a fully integrated healthcare provider has gained significant momentum. Our patients and customers are at the heart of what we do. And this is at the core of our customer promise: «We support people at every stage of life on their journey towards health and well-being.»

With the aim of providing people with the best possible support, we have further sharpened our strategy and business model:

• We manage the strongest pharmacy network in Switzerland and are systematically expanding our offering both in-store and online.
• We offer specialist retailers and our pharmacies an attractive product range and comprehensive services.
• We are a leader in healthcare logistics and digital solutions for the Swiss healthcare market.

Galenica Annual report 2021

Foreword

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This and much more makes us a strong partner for all stakeholders in the healthcare market. Our strategy, the Galenica story, is based on this and to implement it, we have focused our strategic programmes on offering customers and patients the best customer experience across all channels.

Galenica story

«Our aim is to offer customers and the entire healthcare market the greatest possible added value.»

Digitalisation as an opportunity

It is not only COVID-19 that has shown that digitalisation in healthcare is lagging well behind. Compared with other sectors, we have a lot of catching up to do and can also see significant development opportunities. Our product and service offers give us the opportunity to play a leading role in shaping this development. This includes systematically offering, networking and further expanding our products and services via digital channels as part of our strategic «Omni-Channel»programme. After all, the shopping and consumer behaviour of the population is changing rapidly - and not just since COVID-19. And these changing habits are here to stay.

Another aspect of digitalisation is networking between the various players in the Swiss healthcare system. This networking is not only a success factor for us, but above all for our customers and patients. With our strategic «Care» and «Professionals» programmes, we offer our customers - and the healthcare market as a whole - the greatest possible added value through new cooperation models and strong partnerships.

This also helps us to counter the persistently high cost pressure in the healthcare sector. Thanks to digital e-health offers, partnerships and services adapted to market needs, we can reduce process costs and relieve the system.

«Patients want and should receive outpatient treatment at home whenever possible. With our range of services, we support everyone involved.»

Increasing demand for home care services

The ageing population and associated cost pressure are increasing the need and demand for more outpatient services and treatment options. In order to be able to offer solutions in this area too, we are expanding our range of services in a targeted manner within the framework of the strategic «Care» and «Professionals» programmes: both for customers and patients, such as the elderly and chronically ill, as well as for care organisations such as care homes and home-care organisations. Patients want and should receive outpatient treatment at home whenever possible. With our range of services, we want to support everyone involved: through our bricks-and-mortar pharmacies, in the home care sector and with logistics and IT solutions.