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DIRECT PRESENCE

MANUFACTURING

RESEARCH & DEVELOPMENT

GLOSSARY

STUDY DESIGN

On behalf of Ipsen, WifOR, a German independent economic research institute, calculated Ipsen’s economic impact on the worldwide economy. For the purpose of the study, WifOR collated Ipsen’s monetary flows in a database that mimics the one

used by the World Input-Output Database (WIOD). WifOR’s methodology, based on the “input-output analysis” developed by Nobel Prize winner Wassily W. Leontief, provides a holistic picture of Ipsen’s macroeconomic activities.

*Figures from Ipsen’s Annual Report 2015

IPSEN AT A GLANCE*

MEDICINAL PRODUCTS SALES

Specialty Care

Oncology

77.2 %

Neurosciences

19.5 %

Primary Care

22.8 %

Endocrinology

5.6 %

TOTAL SALES EXCEEDING

1.4 bn EUR

Ipsen sells more than

20 different medicinal products

IPSEN’S ECONOMIC FOOTPRINT WORLDWIDE

Economic Effects:

> Direct Effects: Direct effects describe the immediate economic effects that are directly generated by Ipsen. The direct effects include those regarding the economic output, the gross value added generated as well as the number and compensation of employees.

> Indirect Effects: Indirect effects are those arising due to Ipsen’s purchase of goods and services from suppliers. Such purchases result in increased production among suppliers who then also require goods and services for their own production. The cascading effect triggered by this demand of intermediate consumption is referred to as the indirect economic effect.

> Induced Effects: Induced effects originate from the subsequent expenditure of directly and indirectly generated incomes.

> Total Effects: The total effect is the sum of direct, indirect and induced effects.

Economic Footprint: The economic footprint de-scribes the overall economic importance of companies on the basis of economic indicators. In addition to the direct effects, the indirect and induced effects of a company on its respective economy are quantified.

Gross Value Added (GVA): The gross value added describes a company’s contribution to the gross domestic product (GDP). The GDP is the key figure for measuring a country’s economic development and its prospective growth and economic welfare.

Intermediate Consumption: Intermediate Consumption are goods and services purchased for further processing in the own production process.

Labour Productivity: The labour productivity is the gross value added per employed person.

Multiplier: Multipliers are factors that reveal the re-lationship between the direct and the spillover effects.

R&D Intensity: The indicator R&D intensity is the ratio of expenditures for research and development (R&D) and gross value added. Internal and external R&D intensities can be distinguished.

> Internal R&D Expenditures: Internal R&D expenditures include all expenditures emerging in-house.

> External R&D Expenditures: External R&D

expenditures include research assignments at universities, state research institutions or other companies (including other entities of the Ipsen group).

> Total R&D Expenditures: Total R&D expendi-tures are the sum of internal and external R&D expenditures.

EMPLOYEES GLOBALLY

4,600

IPSEN HAS MORE THAN

www.ipsen.comwww.wifor.de

Close to

193 m EUR of total expen-ditures for R&D worldwide

Direct commercial presence in over

30 countries worldwide

Ipsen’s products are available in

115 countries

52.1%

2.40 EUR

1.80 EUR

IPSEN’S IMPACT ON THE LABOUR MARKET WORLDWIDE

IPSEN’S CONTRIBUTION TO THE GROSS DOMESTIC PRODUCT WORLDWIDE

TOTAL GROSS VALUE ADDED GENERATED BY IPSEN’S ACTIVITIES IN 2014

2,272 m EUR

1,109 m EUROF INDIRECT GVA

495 m EUROF INDUCED GVA

668 m EUROF DIRECT GVA

While the global chemical and pharmaceutical industry worldwide generates on average 1.80 EUR additional GVA for every euro of direct-ly generated GVA in the global economy, Ipsen’s activities generate 2.40 EUR additional GVA.

GENERATING ADDITIONAL GVA

In 2014, more than 74,000 jobs were supported by Ipsen’s busi-ness activities worldwide in the form of direct, indirect and induced employment effects. For every direct employee of Ipsen, 16 addi-tional jobs are supported through indirect and induced effects (i.e. by Ipsen’s demand for intermediates and by spending of incomes). With approximately 152,000 EUR (2014), Ipsen’s labour productiv-ity was 230% higher than the chemical and pharmaceutical indus-try’s average (46,000 EUR in 2011). In other words, each of Ipsen’s employees worldwide generated approximately 230% more gross value added (GVA) than an employee of the chemical and pharma-ceutical industry on average.

Ipsen makes a significant contribution to the global gross domestic product (GDP) with its direct gross value added (GVA) effects as well as with its indirect and induced GVA effects. Within four years, Ipsen increased its contribution to the global GDP by approximately 24% from 1,837 m EUR in 2010 to 2,272 m EUR in 2014. For every euro of directly generated GVA worldwide, Ipsen’s business activities result in a further 2.40 EUR additional GVA which places Ipsen ahead of other cutting-edge industries such as the chemical and pharma-ceutical industry (1.80 EUR additional GVA) or the wholesale sector (0.80 EUR additional GVA).

Ipsen’s mission – innovation for patient care – is reflected in the fact that research and development (R&D) is one of the company’s key divisions. The R&D activities are conducted to deliver therapeutic solutions for unmet medical needs whereby efforts concentrate on the four therapeutic areas of oncology, endocrinology, neurosciences and primary care. The internal R&D intensity (2014) is thereby more than twelve times the average internal R&D intensity in the member states of the Organisation for Economic Cooperation and Development (OECD).* To strengthen the company’s innovation capacity, Ipsen has built up an R&D network consisting of successful partnerships and alliances.

INTENSITY OF IPSEN’S R&D ACTIVITIES WORLDWIDE

TOTAL R&D EXPENDITURES

INTERNAL R&D EXPENDITURES

138.2 m EUREXTERNAL R&D EXPENDITURES

48.6 m EUR

4,391*DIRECT EMPLOYEES OF IPSEN

40,184INDIRECT JOBS SUPPORTED BY IPSEN’S ACTIVITIES

30,054INDUCED JOBS SUPPORTED BY IPSEN’S ACTIVITIES

74,630TOTAL JOBS SUPPORTED BY IPSEN’S ACTIVITIES WORLDWIDE

668 m EURDIRECT GVA GENERATED BY IPSEN

1,109 m EURINDIRECT GVA GENERATED BY IPSEN’S ACTIVITIES

495 m EURINDUCED GVA GENERATED BY IPSEN’S ACTIVITIES

2,272 m EURTOTAL GVA GENERATED BY IPSEN’S ACTIVITIES WORLDWIDE

EMPLOYMENT EFFECTS

At 20.7%, Ipsen’s internal R&D intensity is more than twelve times the OECD member states’ internal R&D intensity (1.7%).

HIGH REINVESTMENT RATE

138.2 m EURINTERNAL R&D EXPENDITURES

48.6 m EUREXTERNAL R&D EXPENDITURES

186.8 m EURTOTAL R&D EXPENDITURES

TOTAL EMPLOYMENT

74,630

DIRECT4,391

INDIRECT40,184

INDUCED30,054

186.8 m EUR For every direct job, Ipsen’s activities support

16 additional jobs, which is significantly more than the average of the chemical and pharma-ceutical industry worldwide. Within four years, the total number of jobs supported by Ipsen’s activities increased by 18% from 63,495 jobs in 2010 to 74,630 jobs in 2014.

CREATING ADDITIONAL JOBS

* Value refers to 2013 * Figure excludes apprentices and inactive employees

OECD

1.7%20.7 %