BOIRON : 2020 half year activity

(Unaudited data)

Cumulative Activity as of the end of june 2020

Activity by quarter (variation at current exchange rates)

Sales growth

Sales in the second quarter of 2020 were down 14.5% versus 2019. In an already delicate context, the decline in sales in France worsened (down 21.2% vs. a drop of 12.7% in the first quarter) following decreased doctors' appointments and pharmacy visits during the health crisis. This impacted different countries in different ways: sales in Europe were down 28.2%, mainly in Russia and Italy, while sales grew 23.5% in North America.

Over the first half, sales were down 1.2%, as a result of two contrasting developments:

• A 16.5% decline in business in France in non-proprietary medicines (down 21.0%) and specialties (down 6.6%)
• International sales growth of 20.8%, mainly in North America

Furthermore, in France, we have produced over 50,000 liters of hydro-alcoholic solution, for which marketing authorization has been extended until the end of this year.

News

Following the significant drop in business in France, a reorganization plan was announced on 11 March. Given that meetings to negotiate with staff representatives could not take place during the lockdown, they began at the start of June and will continue until 14 October this year. A provision for the cost of this plan will be recorded in the first half financial statements, to be published on 9 September.

Despite the ongoing global health crisis, we have managed to maintain our production and distribution businesses, both in France and abroad, thanks to the commitment of all our employees. Administrative work was performed under remote working arrangements during the lockdown, and only commercial activities were temporarily impacted.

Outlook

Global business levels looking forward will depend on how the global health and economic situation progresses.

We believe that sales in France will continue to be impacted over the second half by the government's decision to delist non-proprietary medicines from French health insurance from 1^st January 2021.

As such, we expect to see a decrease in sales and earnings in 2020.

We remain determined to continue our efforts to maintain the reimbursement of homeopathic medicines, reflecting the demand of the millions of patients who use them with satisfaction.

Laboratoires BOIRON

Our next update:
September 9, 2020: at market close, publication of 2020 half-year results.
Person responsible for financial information: Valérie Lorentz-Poinsot.
Contact for financial information: Fabrice Rey.
Investor relations: 33 (0) 4.78.45.63.43 - e-mail: boironfinances@boiron.fr
ISIN Code: FR0000061129 (BOI) - Bloomberg: BOI FP - Reuters: BOIR.PA
The group's financial information and the glossary are online at: www.boironfinance.com