Reference Document 2018 Table of Contents
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REFERENCE DOCUMENT 2018 TABLE OF CONTENTS A few words from Thierry Boiron ..................................................................................................................... 4 A few words from Valérie Lorentz-Poinsot ............................................................................................... 5 1 Presentation of BOIRON group and its businesses ................................................................................ 7 1.1 Indicators and key figures ................................................................................................................................................................... 9 1.2 Presentation of BOIRON group and its development ................................................................................................ 12 1.3 Other information about BOIRON group .............................................................................................................................. 20 1.4 Analysis and comments on activities over the period .............................................................................................. 23 1.5 Risk factors and internal control ................................................................................................................................................. 35 2 Corporate governance .............................................................................................................................................. 45 2.1 Corporate governance guidelines and rules ...................................................................................................................... 46 2.2 Composition, organization and functioning of the Board of Directors ....................................................... 47 2.3 Special statutory auditors’ report on regulated agreements and commitments ............................... 57 2.4 Delegation and Authorization for capital increases and reductions ............................................................ 60 2.5 EFactors likely to have an influence in the event of a public tender offer ............................................. 61 2.6 Compensation of corporate officers ......................................................................................................................................... 64 3 Social, environmental and societal information ..................................................................................... 77 3.1 Employee information .......................................................................................................................................................................... 79 3.2 Health Safety Environment ............................................................................................................................................................. 89 3.3 Societal information .......................................................................................................................................................................... 101 3.4 Inspection Agency Report ............................................................................................................................................................ 104 2 4 Annual financial statements .............................................................................................................................. 107 4.1 Consolidated accounts ...................................................................................................................................................................... 108 4.2 Statutory Auditors’ report on the consolidated financial statements ........................................................ 169 4.3 Table showing the subsidiaries and holdings ................................................................................................................ 174 4.4 Result of BOIRON parent company during the last five years .......................................................................... 176 4.5 Supplier and customer payment times ................................................................................................................................ 177 5 Legal information about the company and its capital .................................................................... 179 5.1 Share capital ............................................................................................................................................................................................. 180 5.2 Main shareholders ................................................................................................................................................................................ 184 5.3 Employee shareholding ................................................................................................................................................................... 188 5.4 Incorporation and articles of association ........................................................................................................................... 189 5.5 Report of the Board of Directors to the Combined Shareholders’ Meeting of May 16, 2019 - extraordinary part ................................................................................................................................................................................ 194 5.6 Draft resolutions to be presented to the Combined Shareholders’ Meeting of May 16, 2019 ......... 195 6 Other information ...................................................................................................................................................... 201 6.1 Person responsible for the Reference document ........................................................................................................ 202 6.2 Statutory Auditors ............................................................................................................................................................................... 203 6.3 Public information ................................................................................................................................................................................ 203 6.4 Provisional publication schedule .............................................................................................................................................. 204 6.5 List of BOIRON parent company establishments as at December 31, 2018 ......................................... 204 6.6 Concordance table of Reference document ..................................................................................................................... 206 6.7 Concordance table of financial annual report and management report .................................................... 210 6.8 Concordance table of the Non-Financial Performance Statement ................................................................ 212 6.9 Glossary ........................................................................................................................................................................................................ 215 This is a free translation into English of the BOIRON 2018 Reference document issued in the French language and is provided solely for the convenience of English speaking readers. In case of discrepancy, the French version prevails. 3 A FEW WORDS FROM THIERRY BOIRON Serving people through homeopathy At the start of this year, the Board of Directors appointed Valérie Lorentz- Poinsot as General Manager to continue to develop homeopathy worldwide with unswerving confidence and determination and to give all patients the freedom to choose homeopathy. As it has throughout its history, homeopathy is currently experiencing a certain degree of turmoil, particularly in France where the government has called its reimbursement into question despite the fact that: • for generations, millions of French patients have regularly chosen the safety and effectiveness of homeopathic medicines, like 300 million patients worldwide. • when used as a first-line treatment, homeopathic medicines help ensure that medicines which present the risk of toxicity are used appropriately, as shown by the recent EPI3 study in France. • ending reimbursement would increase healthcare spending due to a shift to more expensive treatments. While we await the day when researchers will develop the means to understand exactly how homeopathic medicines work, their benefits in terms of both public health and individual wellness are clearly shown by top scientific journals as well as decades of clinical results achieved by doctors, pharmacists, nurses, midwives, and other healthcare professionals. Their active ingredients, which are effective, non-toxic, and have no environmental impact, are not patented by pharmaceutical companies. Preserving this part of our human heritage to guarantee freedom of choice to future generations is our shared responsibility. Thierry Boiron Chairman 4 A FEW WORDS FROM VALÉRIE LORENTZ-POINSOT Because people worldwide are increasingly refusing to take risks with their health, Laboratoires BOIRON uses its unique pharmaceutical expertise in homeopathy to bring them the safe medicines they need. Some things never change. Laboratoires BOIRON has been the world leader in homeopathy for many years. Our business has always been driven by the growing demand among both patients and healthcare providers for the effective, safe, and gentle treatments