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2010 Annual reportPassionate about animal health
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Overviewof 2010
A laboratory dedicatedto animal health
2-3 Chairmans message
4-5 Highlights o 2010
6-7 Virbac worldwide
8-9 Key fgures
10-11 Corporate governance
12-13 Sponsorship
Overview
16-21 Environmental responsibility
22-26 Social responsibility
27-31 Economic responsibility
Sustainable development
33-61 Management report
62-73 Report o the chairwoman o the supervisory board on organising
the work o the supervisory board and on the internal control and
risk management systems
74-110Consolidated fnancial statements 2010
111 Statement o responsibility or the annual fnancial report
112 Observations o the supervisory board
113-115 Resolutions submitted to the ordinary and extraordinary
shareholders meeting o 28 June 2011
116 Glossary
117 Virbac on 5 continents
This document has been printed on PEFC certifed paper, manuactured in an
objective o protecting and managing orests.
Financial report
Sustainabledevelopment
Sustainabledevelopment
Overviewof 2010
F inancialreportF inancialreport
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Overview
Chairman's message
An exceptionalyear
How do you evaluate 2010?2010 wi g dw i h hisy Vibc s vy im y. Bh h
ms gwh hv wkd gh i h cx vb xchg
, whi i mj jcs vvd vy siivy. Hwv,
gwh i h im hh mk ws mds i 2010. emgig cis hv
cibd gy, b e is si ggig bhid; d hgh h uid Ss
hd sg gwh, i ws y cv m h giv dvms
2009. th cmi im mk hs c iy byd, b hs y
chd is -cisis gwh s. th gwh g wih h d dcig
im mk, d by vccis d mgig cis is ss mkd h
i h c s.
From where do these good fgures come?Vibc's vy gd mc i 2010 cms m gis i mk shs.I e, wh h G chivd h is v, h fs y efd Fii, fi-bsd x siicids dgs d cs, hv sdi ss bv 20 mii d g sm wy xiig h mk sh gisi h cmi im sgm. as i e, Vibc gid mk shsi h bvi dmi which hs m h cmsd h diicis
h "idsi" sgm (ig d y). I h uid Ss, gwh hs bsg d mch high h h h mk, s s h gss md h mj gs, dmgic, d d i siicids wih h vhg. I h s h wd, which w ss 35% csidd v,Vibc hd gwh i db-digi igs i my g mgig cy
mks: Idi, Mxic d Bzi i ic. asi, is ,hs dbd i siz i c ccy ms wig h cqisii h bgiig h y d h sccss igi h im
hh civiis Wyh h pfz hd divs i d sisy
h cmii hiis. Vibc is w i scd sii i h
asi mk.
ric Mare,Chim h
xciv bd
A double-digit growth
in emergingcountries
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And in terms o results?th sg gwh csidd v, bsd, ik i vis ys,by vb dvms ikd h dcii h , hs d
h sg gwh h c ig f (33.2%) d m sigifc
gwh f (+62.1%) bcs bdwi gd by h asi
cqisii. Icsd fbii y, h hdig db dci qims d
ivsm gmm i w h dicd hv bd h g
dci dbs. Vibc ds h y 2010 wih ms y db d c
h ish hs sigifc x gwh.
What are the major advances?th y 2010 ws y ich i ms ig d fci f, my
h y's dvcs s big h h . I fs c, is h vb gss
h dssi h e gisi h vcci gis ci ishmisis,
Cilish, which civd vb ii h e mdicis gcy
(eMa) i y Jy 2011. I h midd Mch, h mkig hisi ws
issd by h e cmmissi wig fs ch i pg, wd by
h chs dig h scd h h y. Idsi ivsms h Cs
si w md i b gd ics i dci, i hs wih h
ch cd. oh sizb idsi jcs w k dig h y 2010
d, i ic, h w dci si ijcbs which wi b i i
2012. th i w dcs big dvd hs gssd h d
sd d shd b w chs i 2011, icy i h uid Ss. Fiy,w iiiivs imv i fcicy (imisi h sy chi d
h ch w dcs, w dyms h erp d CrM imi
sysms, iig gmm css-ci mgm) d isk miig
(sig h risk Mgm dm, cmiy jc).
What are the prospects or 2011?2011 s w dvm scs h G. th im hh mks
gy xc smwh b gwh h i 2010 i h cx m
dymic gb cmy. nw dc chs xcd d h mk
dvms icid i h mi cis b md gwh bvisgd e, b sg gwh i h h gis h wd. th
cmi im sgm shd ci xic gd gwh, d
by ivi. emgig cis shd d h gwh i h d dcig
im sgm, which shd mi sb i e. oi fbiiy
xssd s cg v shd s w gwh dsi ccd r&D
ivsms, d s cmmci i ci g cis. exc
cqisiis, db dci shd b ss h i vis ys bcs
k i w ids i jcs i 2011.
By wy smmy, his hs b y h shd b Vibc s is
dvm by icig is cmiivss.
572.8M2010 turnover
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Overview
Highlights of 2010
January . February . March
Australia:successul integration o the Fort Dodge rangeSccss s F Ddg siicids d vccis cqid h s
2010 i asi , i ic h Cydci g which hs xcdd ss
css. 110 w mys hv jid h sbsidiy sic Fby. Whis
big dy k h w chgs i 2011 (idsi ivsms i pi h
d ig imi sysms), Vibc c w m h mi ig ds
by ig h ms cmhsiv g h mk .
Group:protecting the company's assetsSig h risk Mgm dm wih h mi sks: dig isk mig h ii v i d ssss h imc d v c d kig his isk
mig d, cdiig h ad hoc wkig gs hgh dym csss,
dis d gd cics d, y, cmig Vibc wih h bs cmis i his i
d cg h cmy d bs cics. this w d m shd w
h G c h gwig cmxiy is vim d h mi csis
i s, s w s cc v m gb sc.
Italy:eradication o rabies
thanks to Rabigen Sag2ed giis wih h Ii miisy:
Vibc w h bis d 2010 wih
h rbig Sg2 vcci.I mh, h dc d h idsi
ciiis w mdiid i d m
dmd w mii bis divd bw Mch d nvmb. thks his
vccii cmig, Vibc cibd hig h sd bis i h c y i js
igh mhs.
Product launches, organisations,acquisitions...
Follow the guide or everything you need to know about the Group's highlights.
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April . May . JuneChina:Virbac made urther advancesFis dic Vibc ss i Chi i h cmi imsc. a i which is w ssib hks h
immi ci disibi sysm (dic
divy h csm) d iwid cvg. Vibc
w hs high-mc ss m icsig
is sgh i his d cmig mk.
France:Tenotryl, a rational approachto antibiotic therapyFwig ch d h m ex i c e i 2008, i h uid Kigdm,
Gmy, Bx, Iy d pg i 2009 d i asi d Si i 2010, mkig
hisi ws bid i Fc ty, fxci-bsd ibiic b
dgs d cs. Cmbid wih s s ssiiviy fxci, his dcws Vibc y cmm is ig b s dvc ssib s
ibiics i d mii hi civss v h g m.
October . November . December
Poland:opening o the 27th international subsidiarya sg sc Vibc i c e wih h sig sbsidiy i
pd: Vibc S. z .. which ws m sv ys sg ss gwh i his
mk. Bsd i Wsw his w iy ws Vibc ci is dvm i his
mk wih h gs gwh i i his gi.
Europe:Epro/Fiproline, the no
1 Virbac productFis y h mkig i-bsd siicids i h hic (vii)
d otC mks. Wih m h 20 mii i v h i g, hs
dcs which hv bcm Vibc's 1 s i e cdib iv
i h mk x siicids cmi ims d sgh h G's
img s mj y i im hh.
Effipro
Fiproline20MM
July . August . September
North America:St. Louis, new Equimax production site or EuropeGMp e cici bid, hisig h S. lis dci i i h uid Ss dc
d disib eqimx e. as sch Vibc is sghig is dci cbiiis h eqimx
g, Vibc's hid biggs dc i e wih m h 10 mii i v i 2010.
Germany:Suprelorin 9.4 mg implant or dogs, a new advance in managingcanine reproductione cisd mkig hisi bid w s Si which is civ
wv mhs (cciv im m dgs). lchd i Gmy i nvmb, h dc wi
b xdd h wh e i hss hgh 2011. Wih Si 9.4 mg im dgs, which
dbs h dc's gh civiy, Vibc is cmmig is cciv im ig byintroducing
w iv sgic csi i sig ici.
France:Vetfurane, the rst registered veterinary isofuranergisi V, h is is-bsd viy mdici i Fc,
bchmk ihi shic i viy mdici which ws visy y
vib m hm b is (wihi h mwk h is hsi mdicis
ccssib viis). thgh mkig his dc sic ocb, Vibc hs mdi si Fch viis ccss his mc.
in turnover
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5researchcentres
Overview
Virbac worldwide
More than3,150employees(including 65% outside France)
Presentinover100countries
North America
E83.4 million
Latin America
E39.2 million
81% of salesoutside France
International presence has been an integral part o Virbacs strategy
since the very beginning. Started in 1978, the Groups expansion abroadprogressively accelerated in the 1980s and continued in the 1990s.
Having set up eight subsidiaries in the 2000s (Philippines, Portugal, Taiwan,
Colombia, Costa Rica, Greece, India and Denmark), Virbac strengthened
its presence in central Europe in 2010 with the Groups 27th entity outside
France: Virbac Poland.
6
2010annualREPoRT
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Productionsites in7countries
7
2010annualREPoRT
27 salessubsidiariesoutside France
Europe
E286.5 million
Asia
E69.4 million
Pacifc
E63.6 million
Arica & Middle East
E30.7 million
8thveterinarycompanyworldwide
Headquarters and subsidiaries in France
Production sites
Research and development centres
Subsidiaries and representative ofces outside France
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Overview
Key igures
Organic growthlike-to-like exchange ates and scope
5.8 %
4.4 %
10.8 %
54.5
35.4
54.458.3
38.8
58.3
77.6
87.7
63.4
cuent opeating esult opeating esult esult fo the peiod attibutable to the ownes of the paent company
43.4467.4
572.8
Net sales(in E million)
Results(in E million)
2008 2008
2008
2009 2009
2009
2010 2010
2010
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+22.6%
2009/2010 change in net sales
Investments(in E million)
intangible assets tangible assets financial assets
4.8
13.8
0
2.4
19.8
0.1
2.8
22.1
0.2
Cash fow(in E million)
52.2
67.6
58.8
Financial structure(in E million)
net assets woking capital equiements (WCr)
equity attibutable to the ownesof the paent company
non-contollinginteests and povisions
net debt
Capital employed
Financing
2008 20082009 20092010 2010
39.1 44.3
51.0281.3 281.3
289.5 289.5
324.0 324.0
242.2198.4
233.6
300.1
16.0
22.1
20.8
66.9
33.8
3.1
245.2
273.0
2008
2008
2009
2009
2010
2010
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Overview
Corporate governance
Executive boardth xcuiv bod is sosibl o h sgic d o-
iol mgm o h comy.
I hs fv mmbs. th xcuiv bod is ssisd by s-
gic commi which bigs ogh d hds o mjo
coo ucio dicos.
ric Mare,Chim o h xcuiv bod
Christian Karst,excuiv vic-sid coo dvlom
Michel Garaudet,Chi fcil ofc
Pierre Pags,Chi oig ofc
Jean-Pierre Dick ,rsosibl o scil ojcs d sid o h
Fodio deis Vibc, coo oudio
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Virbacis a public limited companywith executive &supervisory boards
Supervisory boardth suvisoy bod sus m cool o h mg-
m o h xcuiv bod, gul iscio o ccous d llmjo ojcs d ivsms.
th suvisoy bod is comisd o:
Marie-Hlne Dick, chiwomJeanine Dick, vic-chiwomPhilippe CapronPierre Madelpuech,m siv o h comy asgiXavier Yon, m siv o h comy XYC
Audit committeeth udi commi is i chg o viwig fcil disclosus d h mgm
o isks d ccouig cics.
Is sosibiliis s ollows:
su h lvc, cosiscy d libiliy o h ccouig mhods;
viy h xisc d civss o il cool d isk mgm
ocdus;
xss is oiio o h vlidiy o h ccouig m o mjo scios.
I is comisd oPhilippe Capron, chim, d Pierre Madelpuech.
Compensation committeeth comsio commi is sosibl o:
dwig u commdios d oosls gdig h comsio o mmbs
o h xcuiv bod;
syig iomd o h Gous gl Hr olicy d mo scifclly h com-
sio olicy o h Gous icil xcuivs;
viwig oosls d codiios lig o sock gs;
dwig u oosls gdig h mou o dicos s o b id o mmbs
o h suvisoy bod.
I is comisd oMarie-Hlne Dick, chiwom, d Xavier Yon.
Statutory auditorsDloi & associs, sd by Vic Gos
novcs-Dvid & associs, sd by J-pi Giud
Marie-Hlne Dick
Jeanine Dick Pierre MadelpuechPhilippe Capron Xavier Yon
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Overview
Sponsorship
Newboatnewchallenges
3rd Route du Rhum
Sin-M, 31 ocb 2010. embkd n scs bs, 80 vinins
jin Vibc-pc 3. on bd, Jn-pi Dick hds h du in h 9h ru du rhum. 13.02: sing sign! on h w, h scn is
mgnicn: 85 sibs gid simunusy in h w cv h 3,453 mis
sing hm m pin--pi. 14.30: Jn-pi sss h C Fh
ding h Imc f (Innin mnhu n css ssciin), in h
midd hd siing scs. th min is is k un iv in
Gudu, in h midd h nigh, wh und wny vinins hv
cm sciy wcm Jp nd cb h vn. th ski ivs
in 4h c nd is dy king hd h nx chng: n 31 Dcmb
h wi b ving h Bcn Wd rc. th ys vicy in h
s diin h vn , Dmin Fx's sid, h is nw cmmid his
und h wd w-hndd, nn-s i wih lck pyn. F h gu
und y Vibc cins wh cm ncug h i hd, h nw
y hs s dvnu!
Roots and sails
ru du rhum, tns Jcqus Vb, Bcn Wd rc, Vnd Gb, c . th
siing snsshi in which Vibc hs bn invvd sinc 2001 cs g d
mdi nin, bu h is n . th w-knwn n s cs in which Jn-pi
Dick icis in c uniis s nshis bwn vinins
nd Vibc. th dus nd ivs, h dys nviging wih h ski, bing hmgh hugh shd ssin siing nd nbs cs inks b gd.
Jn-pi Dick, si h highs cib bu s ind vinin, mbdis
bh h viny ssin nd h vus h Vibc hds d: m sii,
nnushi, innvin nd ushing ns h imis.
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ean-Pierre Dick,skipper &
veterinarian
a m hn sixn mnhs
h shiyd, Vibc-pc 3
was lauched i new Zealad
o 18 May 2010. Built by
Cookso Boats shiyad, like its
edecesso paec-Vibac 2, the
yougest of Jea-piee Dick's 60
feet moohulls is at the height
of iovatio ad aoud 15%
lighte. retuig to Face by sea
eabled the skie to test the
boat i eal avigatig coditiosbefoe tacklig 2010's big evets.
Duig the week leadig u to the
deatue, aoud foty cliets
wee able to visit the ew sailboat
ad shae a secial momet with
the skie ad the Vibac-paec
team ove beakfast.
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Sustainable
development
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Inthesocialeld,sc hmkid hs b h ky divs h d h cmy, pi-richd Dick, DVM: h si
sci dig, mi d sci ci icy h vs mys
h w d h sy sc , d h cdc d is shw i vy
my hs Vibcs dii vs. th cmy is cmmid
svig his dii d civig i by smig i wih mbiis skis
dvm icis.
Intheenvironmentalfield,h cmys vy is g highqiy vs (cmic xm wih Bs Mcig pcics d wih
Bs lby pcics). I ddii, sv ys g h cmy chdlean manufacturingd cis imvm jcs dsigd sdiy c
ws d imis sc sg. th sch gy svigs d sc
h vim icsigy igd sysmicy i ky cmy dcisis
(ivsms, s, dc dsig...).
Intheeconomiceld,h cmys g is ci sig h sdy db gwh i hs s ms y sic is dig. this dvm
is imiy bsd sid gic gwh, div by ivi d h sgh
Vibcs csm is. I is gy smd by gd cqisiis,
whi vhss sig h db vs mi mgb. this sgy is
sd wihi h mwk sighwd d c gvc sc
h vids shhds wih high v scy.
Js s w hd wishd, his w ssib dvm highighs c i
ic y mkb Vibc iiiivs i h mgig cmis, hy k
c d gy mwk which is ss sv h i dvd cis.
I ddii, his w s sm h d sd i vis s
d chs m csy sdds sd i vis idsis.
ricMare
Long-term development o a company involves
searching or a harmonious balance between
three principles: caring or people, respect or the
environment, and economic perormance. Virbac
has been committed rom the beginning to making
progress in all three areas.
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Sustainable development
Environmental responsibility
Resourcemanagement
AtVirbac,resourcesarecarefullymanagedviakeyindicatorscoveringenergyandnaturalresourceusage(water,electricity,gas,fuel)aswellasrawmaterialusage(activeingredients,packaging,excipients).
Lowering energies and natural resource usage
on comparable activityF sv ys w, Vibc hs b sivig c gy d sc sg
hgh cycig (w), cig qim (m ci), isig, imisig i
cdiiig d hgh h sbishm sg idics s cs s ssib h
d ss (b c gy xdi). F cmb vm civiy,
v dci v h s v ys i csmi h Cs si (which
ss ms 50% G dci) md 15.7% ciciy, 17.6%
gs, d 30.7% w.
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Reductionin usage
17
2010annualreport
UsageFranceCarros
201020092008
25 000
20 000
10 000
15 000
5 000
eciciy i MW h
2008 2009 2010
106 111
125
Idsi civiy Cs
Idx bs 100 i 2006: ddd v (dic b
css + idic dci css)
riv gy sg is ig, sic h ics i vms dcd i Cs bs
miimm gy s h si, sch s cd chmbs d i cssig, b b
mizd.
Gs i MW h
201020092008
16 000
14 000
6 000
4 000
12 000
10 000
8 000
2 000
W i m3
201020092008
120 000
100 000
80 000
40 000
60 000
20 000
asaproportionofactivity used
th gwh i gy csmi is w
h h gwh i vms dcd
d h sccss h w V
Cmx dc gs.
UsageFranceVauvert
asaproportionofactivity used
201020092008
1 800
1 600
800
600
1 400
1 200
1 000
400
200
eciciy i MW h
Vv idsi civiy
2008 2009 2010
125
137141
Idx bs 100 i 2006: ddd v (dic b
css + idic dci css)
201020092008
1 800
1 600
1 400
1 000
1 200
800
600
400
200
W i m3
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AREASFORIMPROVEMENTth csci w
idsi bidig cmyig wih
h s vim sdds
is cy big dk
h Cs si. this csci
wi ic h bs vib
chgy dcig wcsmi d idsi ws
w. th bidig cmis wih
h siis id dw by h
ni is i
imvm h i h
iv V (ec Vy).
18
2010annualreport
201020092008
1 200
1 000
800
600
400
200
201020092008
1 200
1 000
600
800
400
200
201020092008
6 000
5 000
4 000
3 000
2 000
1 000
UsageMexico
I 2009, s hig sysm hig ig w ws isd, big cmis b md i gs csmi. Gs gy bis w c by m h h. picisid imiig ciciy csmi s cibd dimii i gycsmi.
asaproportionofactivity used
Idsi civiy Mxic
2008 2009 2010
116 114
145
Idsi civiy i h uid Ss
2008 2009 2010
100 98
104
201020092008
180
160
60
40
140
120
100
80
20
201020092008
8 000
6 000
3 000
4 000
2 000
1 000
201020092008
18 000
20 000
16 000
14 000
10 000
12 000
8 000
6 000
4 000
2 000
UsageintheUnitedStates
Vibc uid Ss hs isd m, hmidiy d ss c sysmi vis dci d sg zs is si i S. lis, wih h im migc cmic qims. ahgh his isi, gh wih ics iidsi civiy, hv gd m y is i c iciy csmi i 2010,
h qim scd ms ssib dvm (h chi sysmisd csms 50% ss gy h h sdd sysms vib h mk).
asaproportionofactivity used
Idx bs 100 i 2006: ddd v (dic b
css + idic dci css)
eciciy i MW h
Gs i CCF (1003) W i m3
Idx bs 100 i 2006: ddd v (dic b
css + idic dci css)
eciciy i MW h
Gs i is W i m3
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Focusoninformationsystem
Minimising losses at every stage o the manuacturing
processSic h idci h Cis Imvm jc, Vibc hs sd
h -ig is civ igdis, xciis d ckgig sg. this hcmhs b chivd vi ddicd si shis: m cm h b
miimm (dci ivis d i ss), hgh imisd fw
gisi (mcig smhd d id dmd) h shiig ishd
dcs (i i wih csm qims). lsy, Vibcs ivi icy vs h
mcig dcs qiig h s m ckgig.
19
2010annualreport
Vibcs imi sysm s
hs i dcig h vim
imc by mkig s :
collaborative tools helping to
dc cssy v (vid
ccs i ms sbsidiis,
shd mig scs, is
mssgig);
communication tools leading
viisi i d
x xchgs (wkfw,
x, pDa, Ftp m); IT infrastructure reducing the
mi scs qid
(viisi svs, l
eis rsc pig,
mi).201020092008
800
700
600
500
400
300
100
200
Plastic in tonnes
201020092008
600
500
400
300
100
200
Glass in tonnes
th ics i csmi ,
cdbd d sic is w h h
gwh i civiy.
Managementofwaste
Virbacgeneratestwodifferenttypesofwaste:non-hazardousindustrialwasteandspecialindustrialwaste.Theyaremanagedviadedicatedcollectionandsortingchannels(overallchangeinsortingfrom61%in2009to65%in2010)inordertoensureoptimalrecyclingorvalueddependingontheirnature.
Improving sorting at source and reducing the volume
o non-hazardous industrial wasteSic 2003, Vibc hs icid i h immi cci sysm
-hzds idsi ws (miim, i, gss, cdbd, sic, , c.)
h Cs idsi z this scic sysm (gy sdid by c hiis
h idsi zs kig ic i) mks i ssib k idd,iviv d high-mc ch h m his s ws. t
chiv his, Vibc is imisig sig sc by vidig mys wih c
cci ciiis (cycig bxs, ddicd cis, sic cs). ths, i
i idic vm civiy, h qiy -hzds idsi ws
hs by 18.6% v h s v ys.
France:pharmaceuticalpackagingputonthemarket
201020092008
900
800
700
600
500
400
300
100
200
Cardboard / paper in tonnes
asaproportionofactivity used
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BreakdownofCO2emittedbyorfromVirbac
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Environmentalintegration
Stringentregulation,ecotoxicity,specialanalyses,securebuildingsasapharmaceuticalgroup,environmentalintegrationandriskcontrolareacorepartofVirbacsbusinessactivities.
Taking environmental actionGiv h is hmcic mcig civiy (i ic siciv
chgis), Vibc ds c y vis, is cy iscs. ahgh
Vibc is -ig bsiss, i ivss icsigy i sc h vim:
sig Idsi pjcs mgm m wkig i cs cbi
wih sghd Hh, sy d vim m, s w s sig riskMgm d m. I ddii, G icis h vim dd
by sbsidiis m di c gy qims.
ahgh h cmy is cd by gi Co2qs, sic i is csidby
bw h w imi 25,000 s m, Vibc is cmmid mgig his
ghs gs ikd gy csmi (gs d ciciy) d s (by d,
i d s).
Energy53.7% 10.5%
Roadtransportation35.7%
Marinetransportation0.1%
AREASFORIMPROVEMENTa ky y mgs h
idsi s i h Cs
z, Vibc cis is s
xd h scig
bh -hzds d sci
ws (i ic hgh h
idici w cycig
chs) s w s sig
sc hgh icsd
isig wss is
is hks d idics:
qiy ws dcd
vm ishd dcs.201020092008
600
500
400
300
100
200
Non-hazardous industrial waste in tonnes
201020092008
400
300
100
200
Special industrial waste in tonnes
asaproportionofactivity used
Bringing volumes o special industrial waste under controlVibc ss cbiiy imii is sci ws: sid ckgig,
by, mcig d mdici ws ws h cd givs is ici
isk s chmic f (icid h ms d ccdigy h cvd cycd cv svs). lsy, Vibc is sdiy imvig h cci sysm
hgh h sbishm w v m sciv chs, mkig i ssib
dc h i ws y cvd by cycig.
France8 500tons
Airtransportation
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Managing direct and resulting risksth Gs mig sigic isks hs xsd ci mb idsi d
vim isks ( m dis, s h mgm , ch
risk Fcs, g 50). F h m im isks, i 2011 Vibc wi y scicci s dsigd dc h xs h G sch isks. Hwv, g
mb mss hv dy b cid i his d.
SafetyofproductsandoftheircomponentsGeneralmeasures pvisi sy d shs Vibc mys (w mi s) s w s
csms d shis (dcs).
ogisi si i i wih gis gvig h si
hzds dcs:
- vibiiy sy d shs ishd gds i Fch d i egish;
- ckgig dgs dcs i ckgig which ms c sdds.
Conformitywithpharmaceuticalregulations tiig mys i h scic qims h hmcic ids y.
Sig cssy ci, bh cciv (mshicy cd zs,
i i sd ks, s iss wh wkig) d idivid (ppe: ps
pciv eqim, vccii).
F dc cbiiy (m w m i vid cis).
Ecotoxicityofproducts Vibc cis cxiciy ysis ch is gisd dcs. this is
vidd by ci mkig hisi issd by vis vii mdici
hiis.
Wih sc dcs cmi ims, h chic si is s igss hm hmcics. I h cs dcs d dcig ims, his
ysis is v m shisicd.
Safetyofindustrialprocessesandfacilities Ghig d scic m fs b diss: i ic, iy
cmid w isig m h dci civ igdis bigic igi
is sbjc cssig/siisi b big jcd i h ws w wk.
tchiqs gy did by gy hiis (ass-anMV, D,
av).
Fi dci sysms cv h wh si, wih hm -si miig 24 hs
dy.
a diig isis by idd sciis i isk vi.
21
2010annualreport
AREASFORIMPROVEMENTnw bidigs d qim,
s wss, mbiisi
Hh, sy d vimmgm, dig i ic
h ci s ddicd
h vim... hs
icis fcig Vibc's dsi
ssimi sic s d
vim sy qims.
Focus on
emergingeconomiesColumbiaI 2010, Vibc Cmbi
dvd s-csmi
hysiy dcs.
th g: cc sids
im hh dcs dicy
m d ss (vs, ms,
disibs, c hiis...).
as my ckig ckgig
ics cvd i giswh h vim imc
sicids is csidb:
Cdimc, C tig,
M, Byc, Hi, tim, n i,
nhws Cs, nhs
Cs aiqi d Sd.
Whh mcd cy
imd, h ckgig
ccd is ccd i sci
cis sid sis
wh h dcs id,
h cd d sd
ici sciis cycig
sis. a icy which is bh sd ssib.
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Sustainable development
Community involvement,
a reection of diversityIn2010,Virbacwasonceagainactiveinthelocalandnationallabourmarketforcoveringitsrecruitingrequirements,emergingasaresultofstrongcontinuinggrowth.Since2009,thecompanyhasbeencommittedtorecruitingsolelyonthebasisofskillsand
tostrengtheningpartnershipswithsocialpartnersintheeldofemploymentandeducation.
Maintaining and developing employmentthks cmicy ssib mc, Vibc hs dvd mym i
Fc: s mbs w icsd by 30 i 2010 v 2009, chig g 1,106
s 31 Dcmb 2010.
th i Vibc s my is civ c ics. a csisy
gwig cmy hm sc, Vibc cis sgh is sc i h
b mk ( icii i ms ms). thks ssib gwh d is
gb sc, Vibc s gi scs s-ichm d ssibiiis dvcm. emym is s dvig h G v.
Prioritising expertiseBh wih gd cim d i mi, h y cii k
i cc is xis. pic c is k i dig qims i ms
ssibiiis, xic d skis. ths bjciv cii h bsis sci
d cim dcisis d cmm mgs i h ic d d hm
scs mgs.
evy y, mmbs s discss hi skis , hi dvm scs d
hi siis wih hi immdi mgs. Sm m skis m
sisd s ssi ii wihi h cmy.Ms cim igs cd iy, hs hig m i
mbiiy wihi h cmy.
Social responsibility
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AREASFORIMPROVEMENTVibc cis sgh
is i wih mb
ivsiis d ssi
schs ikd h cmy's
bsiss civiis. a ic
is big md h v
viy schs d wih
hmcy cis. Vibc is
s cmmid ciig
is dkigs i h d
disbiiy wk. a di imd
sghig divsiy icy
wi b cid i 2011 wih
h h sciis (IMS - Entreprendre pour la cit).
roup staff numbers 2010
3,150(2,880 in 2009)
Being a good citizen and reecting social diversityVibc icis i dig bw h bsiss wd d civi sciy. I ic,
by kig sigic mb is d ics (62 w ims i
2010) m bh gi d i dci isiis.ths xchgs s k c vi g cim yg s h G
sbsidiis h bsis VIe (Volontariat international en entreprise) gmms. ths
yg mys s c i h cmy.
Kig 10% hdc d by d wks d immi ms
mss cgig h cim d iig d wks. a ddicd bdg
( 30,000 Fc) hs bd s i m h wy s.
a d mmb h nic-Shi aiis uivsiy Fdi, Vibc is s
sd h Cmmi sgic ii h nic uivsiy Shi
aiis d h Skm Bsiss Sch.
I Jy 2009, Vibc sigd h divsiy ch, fcig sg cmmim by h
cmy cmb ms discimii i hm sc mgm.Hdic: i 2010, Vibc cid is shi wih l Gd C ssi
dym (Crp Centre de Reclassement Professionnel) d h h esbishms
d svics mym id (eSat) i pvc-as-C daz gi. th im
is iig css d my ssigms.
I ms css, Vibc is cmmid kig disbd s i mym.
I ci wih agh, di gmics dci wksis ws
cid . this d h imvm sis, i ic by sig qim
dig d dig.
Workingconditions
LabourrelationsatVirbacconcerneveryone:theyreectanongoingwishforopenandconstructivedialogue.Oftenlinkedtoperformance,workingconditionsareofconstantconcern,regularlyassessedviatheinternalopinionsurvey.
Encouraging social dialogue and improving labour relations Dig d cbi icd wih h h siv s gisis
sig i h sigig gms smm hidys i 2010 d sig
cmmissi 1% hsig.
Cii wk by GpeC ji wkig g sy chi sciisms,(Gestion prvisionnelle des emplois et des comptences): dci, qiy c, gisics
d ci sis.
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AREASFORIMPROVEMENT a s ig i i c c i mgmm wi b cid i
2011 hi m s
Cs, i d dc h
cg my s.
a mig dcs i h
mb wk-d ccids
wi b iiy im h Cs
si, wih h g chig
hmcic idsy sdds.
Cid iiiivs jb
dvm hdicd
i Fc.
Sig Hh, Sy devim sdds i ch
idsi mgm d.
rcim scd m
m s sghig
vi civiis.
nw s ii svy i
2011.
Taking preventive measures with regard to health and saety
at work I 2010, w Hh d Sy dic k his s, gisig h svic wih
h im sghig scs ddicd iig, vi, d sc dmiig cis ccids.
Sss mgm iig css mg s d s, wih h mhsis
vi i ms hh (s, cci dc, Hr, Cmmi hygi,
sy d wkig cdiis (CHSCt) d Hh d Sy svics) icy i
i imvm wksis.
pvi rfx icy: 500 s dd wss d iig sssis hh
d sy wk dig 2010.
th si Mgy Vxi ws wdd Cmy thy by h I d Fc Cm
i cgii h imssiv s md s h pvi ccid
wk d cci disss cmig, cssig i ic msc d sk
bms.
a ji css-ci wkig y ivvig mgm d mys, h
cci hh svic d h sci svic ws s d wih vi
sych-sci isk.
I 2010, sci svic vidd h dy sc ch wk, ig ddii
s s i dicy.
Idici d isk mgm CMr (Ccigic, mgic d xic
sbscs): csig dciv disds.
StatisticsonconditionsofemploymentinFrance
Absenteeism: 4.4%(mb wkig dys s s s
sickss, cci ccids, cci-
ds d m wk, cci
iss, miy, hic im
wkig, dividd by h hic
mb dys wkd yy).
Turnover: 5.8%( mb s ig is ,
ddc is , m gm
dismisss s i s
mbs).
Safety: 29 occupationalaccidentswih sgs dig 595 s
wkig dys.
Temporaryemployment: 138temporary staff vg, mhy bsis, 12.4%
s mbs.
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AREASFORIMPROVEMENT
I 2011, Vibc hs iig mgs dsigd
h hm imv
cim, sghig h
mssg -discimii
d cgig ssisc
w mmbs s i ms
igi.
Development of expertise
and employabilityAtVirbac,thedevelopmentofexpertiseisoneofthekeyareasofinvestmentwithaneyetotheefciency,developmentandprofessionaladvancementofemployees.Attheheartofthesystemisthemanager,whobenetsfromexpertsupportandisinvolvedbothfromananalysisperspectivethroughtheend-of-yearinterviewandintermsoftrainingrecommendations.
Developing managerial organisational skills advcd mgi dvm icy: hks cs cssd h
dms d cvig wid g isss, mys b sd i hi
ssi dvcm. ths mgm wkshs ccd 55% iig
giv i 2010. tiig is dsigd bv sgh mgm dsdig
mys, g h w-big d s dvm s.
I 2010, i dh dvm iviws, b disigishd m h ssssm
iviw, w i c s, big hm k sck hi ssi
dvcm (y mgs id his w css).
Oering more training to as many as possible I-hs iig ccssib : xdi iig Vibc ms ms
4% h sy bi, cvig 1,800 ms iig i 2010.
I 2010, 800 , m s cgis, bd m iig: wks (85%),
s (97%), sciiss d svisy s (76%), mgs (80%).
th g iig d chgs vy y, s ci h cmys sgy
d h ds s.
Encouraging individual initiative Sg icy cgig h s idivid im iig (Di): 19%
h Vibc wkc civd Di iig i 2010, cmd vg 6% v
Fc s wh.
S vy my i cciig s ds wih hs h cmy
(I m civ i my wk vim, I ici, I cib, c.)
Imvd w-big, i bc wihi h cmy, icicy d sdvm (sss mgm d s dvm iig ccd
35% iig giv i 2010).
I 2010, Vibc issd is s qici bsd cqid xic chici
my i r&D.
Focus on
emergingeconomies
Brazilas ig is bs
d mi ckg, Vibc
Bzi ms h g h
cs dy sis is s.
this b gs ci
70% h cs sy d
schig s v id
24 mhs. F m mys
h sbsidiy, his icy msm civ cvy
givig bih d b w-big
hi chid. Si skig
bs, mys h
sbsidiy wh hv m h
y svic c b
m h iig gmm
imd dvig i h
vis ds cmy civiy.
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AREASFORIMPROVEMENTVibc gy ds is
mi icis i d
imis bh is
iss i h wkc
d cmiivss i h
mkc. a w -shig
gm wih sivs mgm d mys
wi b ccdd i 2011.
Remunerationand social protection
Virbacsremunerationpolicyistheresultofalongtraditiondevelopedbymanagementwithsocialpartners.Allaspectsofthepackagearetakenintoaccount,comparedtothemarket,andreviewedonthebasisofeconomicdevelopments,employeeexpectationsandthecompanysneeds.Thepolicyismeanttobeattractiveinordertorewardeachpersonsrelativecontributiontothecompanysperformance.
Ensuring competitive and attractive remunerationVibc hs s w bs icy cv mgm s. this icy
is bsd vs ssibiiy d h cmys vis sciis ds. I hs
ics h cmiivss mi icy, ics wds idivid
mc, v svsiy d sbish m dic ik bw idivid
mc d h Gs cmic mc.
Bsids hs chgs, Vibc miis is i mi icy.
Collectively sis bv h h idsy (+5%);
icss which sv chsig w -mgi s (wks,
s, chicis d svisy s);
miimm idx-ikd hidy wc ( 1,370 i 2010);
-shig gm;
-shig gm, which c ch 3.6% xi (vy
iy cd), which his y ss i vg idivid ics 900.
Individually merit increases for all categor ies of employees;
exceptional bonuses;
incentive payments for managers increasing in 2010 and 2011.
Providing employees with eective social protectionSmmig m g sci dii, h sci bs icy is icy cmiiv.
Vibc ws h s cmis imm wkig im dci gm
i J 1998 (c wkig im 34.20 hs wk).
W gms d gms gdig my svigs (-shig, wd
schms, bckd c cc, my svigs s), ims h mk h
dic i ms sci bs.
I gm wih mgm d s, Vibc givs mys h chc ccss
hsig i s d h 1% hsig schm m which v
bd i 2010.
Focus on
emergingeconomies
Chinaov h s w ys, h cs
ivig i Chis ciis hs b
gwig xiy. th mi
cc by Vibc mys
i Chi (bsd i Shghi) is
hw mg, d i ic
hw hv gh y
hsig sb sdd.
t k s ivig i gd
cdiis i h c hy
hsig mk, Vibc hs s
hsig d h hm cqi
hm. ech mh, mys
c ivs cg hi
chic (gig m 1% 17%)
i h Virbac China house fund,
wih h cmy cibig i
h sm i. oc y,
Chis s c wihdw h
sm cqiig hsig.
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Sustainable development
Economic responsibility
Corporategovernance
Virbachasestablishedacorporategovernancesystemdesignedtoachieveahighleveloftransparency,riskcontrol,andemployeedevelopmentaswellastoensurethatthecompanyhasagoodimageintheeyesofitscustomersandshareholders.
Ensuring independence o governance structures Svisy bd wih h is mmbs cssid s idd.
adi cmmi wih h is mmbs cssid s idd.
rmi cmmi wih h is mmbs cssid s idd.
Sy dis: Vibc ds c cmis which is sy dis
id dvisy missis cqisii dis.
Following Aep-Mede recommendationsVibc hs dcidd s s c h C gvc cd isd
cmis dw by a-Md. ams is cmmdis c
gvc d mi c cs hv b immd by Vibc(s h h chiwm h svisy bd, g 62).
Ensuring inormation transparencyVibc ss h Gs ci scy wds is shhds by disibig
gy imi wid bic d i ccdc wih mhds gig
s imi disibi. Fici imi h G c b d wb
si www.vibc.cm, wh i c b dwdd d qsis ci ms c
b isd.
emys s k gy dd gdig imi ig h G,
by vi h Vibc i.
Controlling riskstwds h d 2009, Vibc s risk Mgm dm, which is h
css isk mgm h G. Iii icis hv csisd i dwig
m h im isks cig h G, cig isk ws d iiiig h
s ci s.
AREASFORIMPROVEMENTF 2011, Vibc ims xd
is s cv iiy isks
d dy isk mig
mhdgy isks ib -
c mi sbsidiis.
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Economic
performanceOperatingintheeldofanimalheathforoverfortyyearsandastheleadingindependentoperatorinthemarket,Virbacaimstocontinueitsgrowthinharmonywithitsenvironmentandthepeoplewhoworkforit,ensuringtheGroupslong-termsurvivalthroughprotableandsustainablegrowth.
Proftable and sustainable growthVibc csidd is gwh i 2010, bigig vg gic gwh v v ys
7.1%. this gwh ms 10.8% i 2010 d is d dvms i w
mi s civiy: cmi ims d d dcig ims.
Cd gwh sgy h is fcd i sdiy gwig ss, d
hdc.
a sb miy shhd bs h s sdy d g-m gwh h h
sh-mism.
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
3,500
500
1,000
1,500
2,000
2,500
3,000
100
200
300
400
500
600
1,200
200
400
600
800
1,000
80
20
30
40
50
60
70
10
ChangeinGroupsalesandheadcount
Changeinnetincomeandstockmarketcapitalisation
Sales(M)
Netincome(M)
Headcount
Marketcapitalisationat31/12(M)
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Investing and innovating to ensure the companys long-term
survival and independence
Mgb db vs h w Vibc s gic gwh d cqisiis s iss . th vib scs hs b:
cig ivi cssd sisyig csm ds;
vibiiy cciy s big h G dv by ms
x gwh (cqisiis cmis, dcs, civ igdis).
201020092008
40 M
35 M
30 M
15 M
10 M
25 M
20 M
5 M
R&D expenditure
201020092008
35 %
30 %
15 %
10 %
25 %
20 %
5 %
Debt / total equity
Supplierpartnerships
Whateverthetypeofpurchase,Virbacisguidedbyunwaveringprinciplesbothwithregardtotheselectionandmanagementofitssuppliers.Inthisrespect,thecompanyguaranteesequaltreatmentofcandidates,andlookstobuildlong-termpartnershipswhileensuringthattheyrespectethical,environmentalandsocialvalues.
Ensuring equal treatment o candidate suppliers ogig sch w sis cmmid imvm icy (sbishd
sis gy skd d).
n-discimiy si dig (sddisd css cig cdids
v yig d).
Cmis bids h bsis idic bjciv cii (ci mc,
fxibiiy, imvm css) d cciv dcisi-mkig ivvig svics
ccd (cd hics G chss).
AREASFORIMPROVEMENTt ci gwig i
b d ssib m,
Vibc wishs s is
sgy wiig mk sh
bsd gic gwh i
ch h mj im hh
sgms (cmi ims
d d dcig ims)
whi mkig gd cqisiis
cmis, dcs
civ igdis imv is
ig biiy mgi by
vg h i y,whis miiig mgb
db vs.
75% purchasessbjc gii cvd by
bs cic (vi, csi,
dwig ccs, d miig
cds).
100% industrialsubsidiaries h G sh h sm
csi, si ssssm d
ig cics.
Annualtendering Bestpractices
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Building long-term supplier partnerships rg disibi qsii ky cii (ci hh: bc sh,
d ss sm, ss).
Fcig i h sgh si is (sc cs, ym ms,w-, idiss, ssiism).
eqiis md by sciisd cmis (cdiwhiss, sbiiy).
Miig si ivsm icy (g-m sviv).
Maintaining commercial relations with suppliers that respect
ethical, environmental and social values ehic cmmim by sis ( ci discimii, sc gisi
gvig chid b, sc vim gis icb i hi cis).
ehic, vim d sci cii h di w sis (ssssm
qsii hvig ss cc dkig).
AREASFORIMPROVEMENTVibc ids iiis
ci chsig scs
is sgic sis s s
sc sis h s
imvig qiy d cmic
mc.
Customerrelations
Asadedicatedanimalhealthpharmaceuticalcompany,Virbachasaspecialrelationshipwithitscustomers.Itconsistsofworkingforthelong-term,promotingtherationaluseofveterinarymedicinesanddrivingthesustainabledevelopmentofthevariousstakeholdersinthesector.
Taking a long-term view o customer relations Dvig svics icy imd wdig csm yy d sig
cis i hi g-m dvm (mgm iig hi ciics, s...).
Cmmci icy bsd ccs h, h h cgig sg, i-
iis g-m ishis d yy.
Promoting the rational use o veterinary medicine ecgig wss mgs vs wy mgig hgis d iig i w
digsic mhds dci, i h svic b s mdicis h sk
imvd im hh.
Focus onemergingeconomies
IndiaI h vigs, Vibc Idi
s c bds iig
gmm hig hm
mk hi bdig m
b. th mi sgms
: bvi, vi, d y.
t h hm gw ssiby
d cg g-m
ishi, Idi sbsidiy
ss sv dm
icis. th ms im
sc is iviig ii ds
giv hi hghs ms
sch s iiiy, imvm
dci, s siicids...
Vibc s s iig
bsvc (wig sg
cmmdis) d
m d s mgm.
Fiy, hgh is d shwsi vigs, sbsidiy
ms i s diy
cmms d viy
mdicis (vidig iig
s i c dic: vids cs
sdis, bchs d chic
c shs...).
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edci wk viis d ms gdig cmic (wih gd
dmiisi, dsg vs, di d s i) did by h dvm
b dcs. a ch h imis vs mdicis d vids h
dvm i sisc dcs.
advic d s viis d ms vi xsiv cmmici bs
cics gdig h s mdicis bh d dcig d cmi ims
(gids, d shs, DVDs, iig...).
Bestpractices
Launch in 2010 h ibiic ty i Fc cmbid wih ssiiviyss d ibigms (big s h ms sib ibiic d s vi
civss v g ids).
Driving the sustainable development o
animal health stakeholders pgssiv imii dc ws h csm sid: dvm bk
ckgig d dci i h vm id mi (migi wds cic
dcmi y).
Icsi/vccii: isig wss mgs h g bic (23d dii I v
my , I hv i vccid cmig) d isig h wss ws d vigs
gdig h igi ims i b i (wds m h Fdi deis
Vibc, c di wdig d cgig hi iiiivs i his dici).
tiig vs wih h im g m dvm hi ciics by imvig
hi mgi skis (V Mg i Fc d pcic Gwh pgmm i h uK)
imisig qiy svic vidd im ws.
Vccii cmigs gis bis: hvig dicd h scg i Fc, i
2010 Vibc vidd bis bi esi, Fid, Iy d asi.
Ilovemypet,Ihavehimvaccinated2010
12 000 posters i w hs, is ics, im scis, schs,ssciis d bs shs i v 650 ciis d ws css Fc.
AREASFORIMPROVEMENTI 2011, dym h
e v mdi
sig mi sd
viy mdici sg (bs
cic gids).
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2010AnnuAlRepoRt
Financial report
Management report
th coso idad sa s o h Gro amod o
572.8 miio, wih srog growh i 2010 rom 22.6% a
aca ras, 15.4% a cosa xchag ras ad 10.8% a
cosa ras ad sco. this rormac rcs srog
orgaic growh i h comaio aima sgm, rom
13.4% a cosa ras ad sco, wih h ach i ero
o w rodcs ad h sccss o h efro ad Firoi
rags, x ra arasiicids immd i a coris
a h bgiig o h saso, ad h uid Sas wih
srog growh across a rodc rags ad accss o w
disribors or Ivrhar .
th ood rodcig aima sgm has aso icrasd rom
5.2% a cosa ras ad sco, wih a good dvom
i h ca sgm, i ar as a rs o a srog rd i
mrgig marks ad mor avorab wahr codiios
ha i 2009 i som ky coris i h Sohr hmishr,
ad ohrwis by gais i mark scios i ero dsi
a sggish mark, aisd by h Frch mark dowr
ad h difcis cord i idsria brdig (igs
ad ory). Sccss igraio o arasiicid rags ad
h vaccis acqird arir his yar rom pfzr, oowig is
acqisiio o Wyh ad is For Dodg vriary divisio i
Asraia, brigs h oa growh o his sgm a 18.2% I
2010, h Gro aso bfd rom vry avorab c
o crrcy caios d o h drciaio o h ro,which rrss mor ha sv ois o growh i rovr.
2010 highlights
I 2010 h efro ad Firoi xra arasiicids bcam
h frs Virbac rodc i ero or hir frs yar o sas.
Wih ovr20 miio i sas or h ir rag i his ara,
hs rodcs f as a crdib araiv o h arasiicids
mark or comaio aimas ad srgh h Gro's
imag as a major ayr i aima hah.
I Jaary 2010, Asraia igrad sccssy h arasiicid
ad vacci rags o For Dodg. now Virbac ca m
h mai rarig ds by orig h mos comrhsiv
rag i h mark . th i s bs iss has grad
26.9 miio i sas, haks i aricar o h Cydci
rag (23.8 miio) which xcdd iiia sas orcass .
I Jaary 2010, Virbac has orgd a sragic aiac i h
fd o vaccis or ood rodcig aimas by ar iciaig i
a 30% s ak i urgaya Saa ea aboraory, or a sm
o 3.7 miio Amrica doars. this aiac wi ab Virbac
o rovid a basis or dvom ad rodcio o hs
vaccis, ad o r io his imora mark sgm or
h Gro's xasio i lai Amrica .
I coiaio o h dvom work comd as yar,
Virbac has s major advacs i 2010 o a vacci agais
cai ishmaiasis, Cailish. th rgisraio dossir o
h vacci has rcivd a avorab oiio o h eMA
(eroa mdicis agcy) o 13 Jaary 2011. this oiio
si ds o b vaidad by h eroa commissio o
obai h eroa rgisraio wihi wo o hr mohs.
A h rodcio v, h work o h w ishmaiasis i
ocad i Carros s ar d i 2010. this i wi bcom h
frs eroa a sig a iovaiv rocss or sig s
maacrig.
I Ari 2010, Virbac has mad is frs dirc ivoicig i Chia
i h comaio aima sgm, a oraio ow ossibhrogh h sabishm o a fci disribio sysm
(dirc divry o h csomr) ad aiowid covrag.
Virbac ow has a bsiss aorm adad or srghig
his romisig mark.
th Amrica si o S. lois bcam h w rodcio
si or eqimax i ero. this si has rcivd h Good
Maacrig pracics (GMp) eroa criicaio or
h rodcio ad disribio o eqimax i ero. Virbac
srghs is rodcio caaciis i h uid Sas
or h eqimax rag, h scod Virbac rodc wih ovr
17.0 miioi sas i 2010.
2010 aso saw h craio o h Risk Maagm darm.
throgh his w ar, h Gro has bi srgh i
ordr o addrss h growig comxiy o is virom
ad h miiciy o cosrais i a aras.
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The Groups 2010 business performance
Perormance by segment
Breakdown o sales by segment
I 2010, G ss s 10.8% cs s d sc, h bck ssid gwh i h w bsisss: 13.4% ih cmi im sgm d 5.2% i h d dcigim bsiss.
Companion animalsas 31 Dcmb 2010, his civiy ss 60.1%
G v d gd sg gic gwh 13.4% cmd s y.
th siicids sgm is divig gwh wih ics 26.0% d h -y imc e d Fiis- d sy ss i e, cmbid wih sigicgss Ivh i h uid Ss sd by isigw disibs i dig h y.
th qi g ws wih gwh i 2010 d disys imvm 21.2%. this gwh is chivd he mks d h amic mk. o h ,
Vibc sigd i 2009 w disibi gm wih hBimd Ic., which givs i sc i h uid Ss dCd h x ys.lik s y, h sciy d g cis gwsgy i 2010 (13.8%), miy d h sccss hVibc V Cmx dc g i Fc.
aibiics d dmgy cis gw i 2010 (12.4%),hks Bimx, ei-oic d adm s- ss i huid Ss.
Food producing animalsthis bsiss ccd 37.7% G ss . I is 5.2% cs s d sc. this gic gwh is h s
csd ds bw h bvi idsy (xcdigsiicids), ics 13.8% d h miig gsicdig idsi bdig (igs d y) which wdw by 10.1%, cig mk sii h misdic i e.
th y 2010 ws mkd by h cqisii i asi hbvi d sh dcs g (siicids d vccis) F Ddg, h gwh h d dcig imsgm cs xchg 18.2% .
Other businesses
ths civiis, which s 2.2% ss, csd scic civiis h c b d s cmi imsd d dcig ims. ths icd miy ccmcig md by hid is i h uid Ss dss bis vcci i e. Ss gwh i 2010 is dmiy h sccss ds bis bis i Iy d esi.
2010 salesat actual rates
Like-or-like growth by segment at constant exchange rates
in E million < -5% -5% to 0% 0% to +5% +5% to +10% +10% to +15% > 15%
psiicids 89.8 26.0%
Immgy 56.9 4.4%
aibiics/dmgy 55.6 12.4%
Sciis 64.7 8.9%
eqi 30.6 21.2%
Sciisd d 23.4 13.8%
oh 23.5 0.6%
Companion animals 344.5 13.4%
Bvi siicids 41.3 -7.7%
Bvi dcs(xcdig siicids)
124.5 13.8%
pig/y ibiics 36.7 -10.1%
oh 13.6 16.6%
Food producing animals 216.1 5.2%
Other businesses 12.2 32.4%
Sales 572.8 10.8%
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Perormance by geographic region
Geographic breakdown o sales
ov h wh y, h gghic gis cddsiiv gwh, wih db-digi gwh i nh amic,li amic, asi d h pcic, which bs m hcqisii h F Ddg dc g.
Europeth v h G's e is chd286.5 mii i 2010, 8.5% c s cmd s y, i.e. 7.8% cs s. Gwh i e cmsm sbsidiis xc pg, which hs sggd i hidsi bdig sc d otC x is wihsg cmii i h mk siicid cs. thmj dvms h hv cibd h mci e :
Franceth v is gwig idy cmd h vis y,i.e. 8.7%. I h hic sc, Vibc shws sg gwhcmd 2009 i h cmi im bsiss, hks xc ss i h Vibc V Cmx d g, h
qi g d h -y imc x siicidswih e. I h d dcig im sgm, gd ssmc bvi dcs imid h giv imc ss h idsi gs.
I gd disibi i otC chs, 2010 igs wvby imcd by sg mc h Fiig which gy s dcis i h siicid dhygi gs.
Germanyth y ws mkd by sg gwh 12.0% h
hd, h imc cy chd dcs schs ei, Vibg Cis B i cmi ims dpwfx, Shf ijcb i d dcig imsd, scdy, h Si ss csidi chd i2008 d Bvidc, which bd m h bsc i hismk cmig dc.
ItalyVibc Iy gw by 16.6% i 2010 hks my wiig hd h rbig Sg2 bis vcci, h ch e, d ss d dvm digsic dcs.
United Kingdomth sbsidiy ws 5.5% cs xchg s. thcmi im bsiss bd m h -y c h e chig h siicids sgm d sigicgwh esoic, Sxi, h cic idici ddci gs. th d dcig im bsisssggd his y i ic, i h Vibmc g whichcd sg cmii.
Benelux
tv 2010 s by 5.1%. th cmi im bsissis gwig d e's -y c, vcci ss,
h ii g d h qi g. th d dcigim bsiss is miy S Msid d Vibcbvi immmy m. th d is vsd idsi gs h cd by w gis hs ibiics.
Export Scandinavia Eastern EuropeG ss 18.1%. th cmi im sgm is d miy sigic ss h Zi shic i rssi, hchig ei, d h csidi siis
dci (aizi, Si), dmgy (ei-oic)d qi (eqimx) gs.
in E millions
2010 2009 Variation at actualexchange rates
Variation at constant
exchange rates
Fc 106.5 98.0 8.7% 8.7%
e (sid Fc) 180.0 166.0 8.4% 7.3%
nh amic 83.4 66.9 24.7% 18.4%
li amic 39.2 29.4 33.5% 17.0%
aic & Midd es 30.7 26.0 18.0% 1.9%
asi 69.4 52.7 31.7% 19.1%
pcic 63.6 28.4 123.9% 83.3%
Sales 572.8 467.4 22.6% 15.4%
th mj cibis by gghic s ws:
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North Americath v hs is shy m 18.4% cs xchgs, i.e. 24.7% c s . I 2010, Vibc uid Ss
xicd sg gwh i h cmi im mkhgh h qi g wih eqimx, d h isiicids g wih Ivh d Vib, d s hghgd mc dmgy dcs, d dcsd ibiics, giv h bsc mj cmi ihs gs.
Latin AmericaI his gi, h G sw 17.0% gss i ss cs xchg s, h is 33.5% c xchg s.
Mexicoa cs xchg s, h sbsidiy cdd gwh
17.6%. I jyd vy vb xchg imc d h cii h Mxic s gis h , whichis gwig 32.4% c s. F cmi ims,vccis, which s ximy 40% ss, mdicy w d shwd sg gwh gi i 2010. thshic sgm is d h d w Zi.F d dcig ims, h ig d y bsiss is ck hks Smx mixs. aibiics idicd hm siy disss i bvis d igs, sch sSh, Mxf d Fis s cibd his gwh.
Brazil
Vibc Bzi gw by 9.4% cs s, i.e . 28.5% c s wih siiv cibi i cmi imgs m h vcci gs, i siicids sch sedgd, h dmgy g wih h ch amyd Cvc. F d dcig ims, Mibi dSh bvi ibiics . I , h ig dy ibiics g is dw d h cci h disibi gm wih pz i Bzi. th ss hisv ws gy s by ss i tibiss, mi-scisibiic cqid i J m Iv/Schig-pgh.
Asiath ics i v chd 19.1% cs s, i.e.31.7% c s d miy Vibc Idi d h G'sdvm i G Chi.
IndiaVibc Idi cis is db-digi gwh 18.8% cs s, i.e. 32.1% c s. th d dcigim bsiss cis gw sgy d miy dcs bvis, sch s osv, Vim d agimi,d ss x dcs igs d y.
Greater China2010 is xc y i his gi h disys gwh
cs s 40.1%, i.e. 47.5% c s. this mcws div by icsig ss i Chi h rbig mvcci, d cibi m ss Vibc tiw wih hch adm s- d Cvc cmiims. F d dcig ims, h tiws sbsidiycdd sg bsiss civiy Sh d pmdx.
ThailandI 2010, Vibc thid cibd siivy hmc h gi wih gwh 37.4% cs
s, i.e. 57.5% c s. F cmi ims, gwhws div by ss vccis sch s rbig m dCig. F h d dcig im bsiss, i is h ss dcs igs d y s w s bvi ibiicsh ci gw.
PacifcVibc ss i h gi sd h gs gi h y cs xchg s 83.3% d 123.9% c s.this gwh is miy d h w wig siiv cs:h igi h F Ddg dc g i asisscid wih highy vb xchg iy i 2010 h asi d. a cs s d sc, h gwh
h gi is 5.8% .
Australiaexcdig h cqisii c, ss s 7.7% css cmd s y, i.e . 31.9% c s. thcmi im bsiss, which ccs m hw-hids ss h sbsidiy, xcdig c hcqisii F Ddg dcs, hs d gwhhks gd mcs i h x siicids dvcci gs. th d dcig im bsiss bsm h cibi w bvi siicid dcs,i ic h Cydci g which gd 23.8 mii
i 2010.
Arica & Middle EastVibcs ss i his gi imiy div by VibcSh aic. a cs s, h v h sbsidiydcsd 1.0% cmd 2009. I cs, c s,gwh is 18.6% giv h sg cii h dgis h i 2010.th v dci fcs h ss disibi cci h ig d y ibiics sgm. ex ss aicd h Midd es, miy cmsd d dcig imdcs cid is i 2010.
Changes in Group scope
o 5 Jy 2010, Vibc hs gd sgic ic i hd vccis d dcig ims, chig 30% ci 3.7 mii amic ds h ugy Se by. this cmy, wih sc v yys i ugy, hs g xis miy i dvig dmcig bvi vccis, which i mks i ugyd i li amic cis. Is v mdi 2009 7 mii amic ds wih gd v
biiy. evy, Vibc wi hv h i cqiS e's i sh ci. thgh his ic,S e c c h sg bsiss m hVibc ss idc is vcci g i myii mks. Vibc i , wi b m Se's skis d kw-hw i h d bigy, which wi
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vid bsis dvm d dci vccis d dcig ims d hs why ihis mk sgm. S e is igd by h qiy
mhd i h 2010 ici sms h G.o 29 Jy 2010, Vibc sigd gm wih pz h cqisii sm asi viy dcsd sss chig h, my dci si. thm h sci md 11.7 mii asids xcdig cqisii css d x xss. thiscd civd v m h asi cmiid csm cmmissi. I is h divsm sssqid by h cmmissi wig h c cqisii bypz Wyh icdig is F Ddg viy bsiss.thgh his gm, Vibc hs cqid h ighs g dcs diiy mkd i asi by
F Ddg d imd d dcig ims, miybvi d sh. I csiss siicids (80% ss)d vccis (20%) which chivd v d36 mii asi ds i 2009. this w i wi cy d cmm h c g dcsh Vibc asi mks vib is csms. thiscqisii is qiid s bsiss cmbii dIFrS 3 visd d is gisd s sch i hs smmisdcsidd ci sms. th dic bw hcqisii cs h sss d h i v cqid sss shwd giv gdwi 11.5 mii cddi h -c icm h icm sm
h G.
Scope as at 31 December 2010
tb sbsidiis d is s 31 Dcmb 2010 issd s x h ci sms g 108 h .
Research,
Development & Licensingth y 2010 ws mkd by vs d gss rDl(rsch, Dvm & licsig) is.Fis i e, biig 13 Jy 2011, hvb dcisi m eMa Cilish vcci, dsigd v ci ishmisis, is ssi s wig isig i Mch 2010. this vcci ss mj dvci h gh gis his siic diss i dgs. th imk his vcci is im, d is xciyiviv ms b highighd. th dvm his vcci d is dmsd civss s sciic bkhgh h gs byd h vii d.
ei gisis i e cid v 2010,cmmig h s 2009 w h s hisdc i e cis sis ddisibi chs.
th gisi h Vf viy shic,bsd is, ws bid i h mj ecis i 2010, d Si's "wv-mh" vsi
dy mkd i "six-mh" vsi.
rDl cs sid e, cd i S. lis (uSa) nh amic, Gdj (Mxic) li amic,Sydy (asi) h asi/nw Zd gid H Chi Mih Ciy (Vim) h asi mid,hv b sghd wih sci sh cqisiis md i h d d dcig imvcci i ugy (S e) d asi (dc sbgh m pz).
a h gy v, h scs s i Sh aic
(Jhsbg), Bzi (S p), Idi (Mmbi) d J(osk) ci mk hi cibis h visr&D cs hgh hi c sc d di dc s h qims hi cy. thys g d mi dvms dcs hdmsic mk. a high i 2010 is wsdvd sghig gisi s isi d m chgig gis i hs cis.I ddii hs i mic civiis, wgisis sch s Cvc, esoic, e, msvccis h i d ci g, rixi, Vibgs,Vibmc D w bid i di cis sid
e.
Ivi civiis i ais d li amic s hv bsghd wih h sbishm dc ivig ddicd h ds hs w s d cdi Bs ais (agi). this ivi g wi y xisig rDl scs c d dv dcs hcmm ds hs w s.
I h uid Ss, h nh amic rDl sc wssghd, icy i h gy is dwys i sscii wih Cs rDl scs.
th e gisi ws bid i h uid Ss iJy 2011. tw h mj gisis gd by hFDa (Fd d Dg admiisi) ms b bid i mid-2011. th i amic jcs ws sghdi 2010, bh i h hmcic id (FDa) d i hsiicids id (epaevim pci agcy)d i hs w jcs i vis sgs cmi.
Gby, h Vibc g's sgy i dc ivihs b sghd i 2010 wih v v w jcs
d i h i, wys scd hi cmicv d ivi civd by csms.
this sm i sy is ccmid by dymicd igs mgm h i i bsd vcii, d iv h mk d ikihd sccss.
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Vibc sds 6.5% is v rDl d dmssh dqcy h mgm his civiy hgh sdy sm gisis w dcs i s
is civiy.
Production
France
2010 ws mkd by h ch mj jcs h Cssi. ths, s h G's gwh, Vibc mdissis ids i bs by vidig cciy icss, w cssigi d gy cmic m h chgsi hmcic d vim gisi.
t c c xcc h dci sims (bigic d hmcic), h dsig dxsi h vcci dci i hv b chdd h w ijcbs i bidig jc. a im
wk biig bidig mis d vidi m asshs b ccmishd; h ws sccss h d h y.
Vibc mvd h scdy ckgig vccis i cdim wih imcig h sy chi. Simsy,Vibc hs s d h csci h ciiy which widc h civ igdi Cilish. th siiciddci si hs s b dsigd h ccmmdh ssi qim h mc h ed Fii gs.
Fiy, h s h s wksh h Mgy Vxi si wi b Vibc bi v dci d sms.
a y idsi jcs which ds wih cmic schds wig s - is wihi h imwd.
Internationally
Mexicoed Mch 2010, Mxic idsi is hv bgisd, which hs smid h s myivi. emhsis ws cd h dvm dmwm hs w gisis.
I , h dci m hs cid dv iscis imvm gs by ddig w w dciis d SMeD (Sig mi xchg di) d dvig
h -sysm i h whs.
a hs cmbid cis hv d siiv ss ims v csm svic, which s m 94% 98% , d s i dcig ivy vs.
Australiath mi v h idsi ms i asi wsh cqisii h dci h F Ddgdc g. this si, cd pih (60 km hws Sydy), hs m h hcs which 7.000 m2 bidigs. I is ddicd h dci siicids d
vccis bvis d sh. I h mdim-m, Vibcs ivs i his w si :hc cicy d fxibiiy; imv h chic cbiiis ci qimd ciiis;imis h dci sis i asi, d; w GMp gi qims.
Wih his cqisii, Vibc asi hs dbd is siz ims mb mys d ss, d s s, i iscd hid i h G bhid Fc d h uid Ss.
United Statesa sv iscis, h idsi si i S. lis hscivd qici h mc d disibi smi-sid, dmiisi hmcics i e(qi s) d ic iqids x s. Cy,his ciiy is h y h c dc hs dcs bh h uid Ss d e.
Mv, wig h cs h F Wh ids isi, h dvm h S. lis si, w y i,ws isd i 2010.
I 2010, amic idsi is s imvd iscsm svic by dcig dys i divy d imisigis chss, which sd i svigs hi sis wmis.
Vietnamth s Bi Si Ii gs (iqid d dyms), visy mcd i thid, ws sccssycmd i h scd q 2010.
I ddii, w b dci i ws isd cv
h qc mk ds i Idi, thid d Vim.
Mv, sigiic icss i dci vm i civiis h d bsy y wih ics 170% h chws i, 50% h wd i d 40% h iqid i cmd 2009.
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I ms gisi, dci d mic svicshv b gd i h sm dm mximiscicy d dymism h m.
Brazilpdci i 2010 is gwig hks dc chssch s C vc, Vf, BckHm, Vggi D,aqd d amy.
Dig h y, vis iig css hv b gisd h idsi m imv h mc isis. nw cds hv b sbishd; hiimmi hs sd i im svigs i h dci im dcs.
I , Vibc Bzi hs sbishd idics ck
d mi csy h mc dci civi is, hs idics ysd by diy civiis h :ig, dci d qiy c. this ch wsicii h sis b immd d chiv id ss.
I 2010, Bzi s dvd w qim hiqid dc i. this imvm wi gd h cmy wih gy qims d b d y ics i dmd.
South Arica
th i i i ivs k i h cx c isimvm hv sd i sbsi dciviy gisi 2010. th gisi h dci dmsiiid i 2009 ws cmd i 2010 d w ws m civ ss mgig ds. I ,ivy dci gs w chivd, wih imcigh csm svic h hs b miid high v.
Review of the 2010
nancial statements
Consolidated fnancial statements
Operating perormanceC ig s gw by 33.2% cmd s yd imvd mgis chss, cd ics x xss, h cs cqisiis d h siivimc xchg s. rv m diy c iviismd 572.8 mii ics 105.4 mii (22.6% c xchg s) cmd 2009.
th mgis chss by 23.8% , ics gh h h v. this ics is imiy d h -y c high mgi dcs sch s echd i 2009 i e, d h sccss h Ivhd dmgy gs i h uid Ss.
oh c ig xss md 313.4 mii.thi vi, sighy w h h v m diyciviis is d high cmmci xss dmkig miy i h ais d h cqisii F Ddg dcs i asi d h dvm h ss c i Idi s w s i e d nh amic
wh hvy mkig xss hv b cdcd s ss. admiisiv xss cid d gwig w ims sw h v m diyciviis (+10.9%).
oh -c icm d xss (10.1 mii) h giv gdwi isig h cqisii sss sdby pz i asi, mis h sc ig css d smdis d his sci.
th ici s is sighy high d md -1.6 mii cmd -1.9 mii h vis y. this
vii is xid by w is xss sig mh db i, which md -30.0 mii i 2010d -33.0 mii i 2009 s w s w is s.
Icm x md 21.8 mii, by 30.3%. th dci i h x (31.5% i 2010 gis 32.5%i 2009 sig h sch x cdi) cms miym dii x s bd.
th m cgisd d sh icm ssciscsds h icm Gm d ugycmy i which Vibc hs sigic ifc.
th s h id ibb -cigiss is sb cmd 2009 (0.9 mii).
n s ibb h ws h cmyws 63.4 mii, 63.4% v 2009.
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Consolidated fnancial position and fnancingth G's csh w md 67.6 mii gis58.8 mii i 2009, ics 15.1% . n db s
31 Dcmb 2010 hs dcsd dmicy d sds 3.1 mii. n db h d 2010 ws 0.05 imscsh w m is d md 1.0% csidd shhds qiy d visis (icdig-cig iss).
th ics i gib sss is d ivsm by h cmy (csci w dci si si ms d dci i h vcci gisishmisis, cqisii qim h dci i)d h kig v dci si by Vibc asi ih i cdcd wih pz.th d wkig ci is m s y d md
51.0 mii gis 44.3 mii i 2009. this icsws imiy d icss i ig wkig cid icy by h isig v ivis d hcqisii dcs i asi.
as 23 Dcmb 2003, Vibc hd d i cdi m bks id sv ys d mximm 100 mii. th cdi i ws id i dvc 15 Jy 2010.Dd 16 Jy 2010, Vibc d w i cdimig 220 mii m bks id v ys, wih h i xdig i y.
I his gd, h G ms w ys cmmims:cmmim sc ci is:- csidd db/csh fw m is;- csidd db/csidd shhds' qiy;cmmim bish ci sms.
th w cdi i is sd h d 2010 d hG cmis y wih is cc cmmims.
as 31 Dcmb 2010, h h s sbscibd i 2009 id v ys d 30 mii w sd 18 mii.
Statutory fnancial statements
as 31 Dcmb 2010, ss h Vibc cmymd 194.7 mii, 16.4% m h vis y.th sh ss md by Vibc wih h G's sbsidiisis idic h 2009 d ss 87% ss.th miig 13% ivvd dic ss by Vibc i cisi which h cmy ds hv sbsidiy. I 2010, hs h cibd ms his gwh e (-y
c h e chig i 2009, h ds i Iyd esi), li amic d nh amic.
oig s 2010 is 5.9 mii, shy(+4.5 mii) cmd 2009. this ics sdimiy m gwh i ss.
th ci s dcsd by 2.9% d w dividds,dsi h cid dci i ci xss d dcd is xss s s db dci.
th xci ims md -1.0 mii d cdsdcii imiy ics 1.4 mii.
n s x sd 32.8 mii gis30.6 miii 2009.
Allocation o earningsth Vibc cmy d 32,774,547.33.I wi b sd h shhds' mig y dividd 1.50 sh wih v 1.25. I iwih h visis ic 243 bis h Fch g xcd, i shd b d h h dividds disibd
qiy h 40% disc mid i ic 158-3-2 hFch g x cd, wih his wc y vib idivid shhds dmicid i Fc.
th igs h id wi b cd s ws:dividd disibi 13,071,528.00; id igs 19,703,019.33; s h id 32,774,547.33.
th m h dividd sy shs h d ym wi b cd rid igs. Dividds wib id 21 Jy 2011.
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th dividds civd by idivids sbjc icmx wig h ici 40% dci d ixd wc. I 2010, h m h wc is
s 1,525 sig d 3,050 cs icm d i 2010. Sci cibis (CSG, CrDS, 2%ddci) hv b ddcd m h ym dividds h v 12.1% icm d 2010.
By i i h biciy cmmicd hcmy, dividds c b sbjc wi hhdig x icm 18% icm d i 2010. I wi b19% icm d i 2011. Sci cibi ddcis ddd his wihhdig, h v which is 12.1% icm d i 2010 d wi b 12.3% icm d 1 Jy 2011.
ths mchisms icb g iis.
Appointment o a new memberto the supervisory boardth im oivi Bh s w svisybd mmb wi b sd h shhds' mig, id h ys dig h di yshhds' mig cd i 2014 v h ccs h 2013 id.
oivi Bh, gd 52, dc hmcy, hd MBarom HeC paris, is currntly dirctor and chi xcutiv ofcrh Biish cmy Smih & nhw pc. H hs v 27 ys xic i mdic chgy d hmcics.H bg his c rss uc, h wkd ms12 ys h GxSmihKi g, wh his s siiws si vic-sid d dic e is.H h jid h abb g, wh h svd 10 ysd wh h s sii h hd ws xciv vic-sid h wd hmcics divisi.
oivi Bh is mmb h ni hmcy cdmyd h acdmy chgis.I h si sd h shhds' migis dd, h svisy bd sh cmis six mmbs,h idd d h a-Md cd cgvc.
Share buyback programmeth diy shhds mig 15 J 2010 hisdh Vibc cmy by bck shs i ccdc
wih ics l225-209 et seq. h Fch cmmci cdd i i wih h ms h bybck s i hscs bishd, i ccdc wih h visis hscy diciv h cm i c 20 Jy 2007,by ssi disib d h cmys wbsi 13 My 2011.
as 31 Dcmb 2010, Vibc hd his s,39,050 sy shs cqid h mk 2,637,088 xcdig s, sig vg ic 67.53 sh.
Dig h y, h cmy bgh 94,504 shs icdig82,779 shs ( vg ic 84.57) d mk-mkig gm 11,725 shs ( vgic 88.76) s sck g . Vibc ssd 89,141 shs icdig 82,341 shs d mk-mkig gm ( vg ic 85.58), 6,800shs (sd chg) s sck g s.exss g ddcd m hs scis.tsy shs s 31 Dcmb 2010 sd 0.53% Vibc's ci d w idd mk-mkig dsck g s.
a si wi b sbmid h v hshhds mig hisig h cmy by bck 10% h ci. pchss my b md sh iqidiy cii h sh mk vi mk mkcig iddy d iqidiy cc i i wih cd hics cgisd by h aMF ( Fch cimks hiy), sck g s d c cidci by cci h chsdshs, sbjc di by h shhds' mig h hisi h cci shs.
th mximm i chs ic my xcd 200.Wh ccig h mximm mb shs, shsdy chsd d h mid ihisis wi b icdd, gh wih hs h cdb chsd d h mk-mkig gm.
Dividends over the past three fnancial yearsI shd b cd h v h s h ci ys h wig dividds w id :
in
Dividend per share Income eligible or deduction
under article158-3-2 o theFrench general tax code
Global distribution
2007 1.10 1.10 9,471,454
2008 1.20 1.20 10,404,230
2009 1.32 1.32 11,447,597
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Proposed capital decreased by cancellation osharesI ccdc wih h visis ic l225-209
h Fch cmmci cd, i wi b sd hshhds' mig his h xciv bd id wy-six mhs, dc ci, mims wihi 10% imi by ccig h shsh h cmy hds my hd s s chssmd s ic l225-209 h Fch cmmcicd, my h si giv h xciv bdhisig h chs c shs.
this ssib cci shs ws sg dbdci h G d wi h sc ics i igs sh.
Employee shareholdingps ic l225-102 h Fch cmmci cd,w wd ik im y h, 31 Dcmb 2010,mys h cmy d d cmis wd78.572 Vibc shs, my 0.90% h sh ci vih cmy svigs . pgh II ic l225-129-6 h Fch cmmci cd qis h xdiyshhds mig v, c vy h ys, si hisig ci ics svd mys,whv h shs hd by mys h cmy dd cmis, s dd i ic l225-180, sss h 3% h ci . this si ws sd
h shhds' mig 19 J 2009 iccdc wih h visis ic l225-129-6 hFch cmmci cd.
Non tax-deductible expensesth -ddcib xss cvd i ic 39-4 hFch g x cd md 136,553 i sc h ci y dd 31 Dcmb 2010.
Signicant events
after the closing dateo 31 Jy 2011, Vibc hs cqid h viysss h Syhsis cmy i Cmbi 9.5 miiamic ds. this cqisii bs Vibc Cmbi db is siz by vidig ddii v b vmii amic ds cmsd 60% bvi dcs(miy ibiics d ii sms) d 40% cmi im dcs (sciis). this i isccmid by h ddii h Syhsis ms d iics Vibc's cmmci sc h h liamic mk.
this cqisii is bsiss cmbii d h visdIFrS 3 d wi b gisd s sch i h csiddccs. th ic ci is d sdy.
o 28 Fby 2011, Vibc cqid h ighs Mimi(ijcb sms ciig mis d dcig
ims) Sh aic d ighbig cis, m haimi cmy. a dis ibig his dc g my ys, Vibc scs is sii his mj mk
sgm h Sh aic sbsidiy h hs jyd ys sdy gwh d si s sigic gwh sciv.
Management and
supervisory bodies
Supervisory board
Marie-Hlne Dick, chiwm Vibcs svisybd.exiy c m c: 2013.agd 46, dc viy mdici d hd MBa m h HeC bsiss sch, Mi-H Dickws id chiwm Vibcs svisy bd iai 2006.oh siis hd: chiwm d g mg ok (Fc);m siv ok, chiig pmdic(Fc); chiwm h bd dics phm (Fc).
Cmsi d dics s civd i sc 2010:107,500.nmb shs hd 31 Dcmb 2010: 1,635.
Jeanine Dick , vic-chiwm Vibcs svisy bd.exiy c m c: 2013.agd 74, widw h d pi-richd Dick, JiDick ws chiwm Vibcs svisy bd mb ys.oh siis hd:mg Ivsc, -dig cmy (Fc).Dics s civd i sc 2010: 11,200.nmb shs hd 31 Dcmb 2010: 8,080.
Pierre Madelpuech, m siv hcmy asgi, mmb Vibcs svisy bd.exiy c m c: 2013.agd 50, pi Mdch is esm giig gdd hds MBa m h HeC bsiss sch.oh siis hd:mg asgi (Fc);dic phm (Fc);dic ok (Fc);g mg pmdic (Fc);mg h cmy ais Dvm (Fc);g mg rpG (Fc);mg h a'p cmy (Fc);mg h Sx cmy (Fc);mg h C cmy (Fc);mg h C ngc cmy (Fc);mg h aBCD cmy (Fc);
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mg h C'I cmy (Fc);mg h uymxc cmy (Fc).Dics s civd i sc 2010 by h cmy
asgi:
17,500.nmb shs hd 31 Dcmb 2010 vi h cmyasgi: 10.
Xavier Yon, m siv d mg hcmy XYC, mmb Vibcs svisy bd.exiy c m c: 2013.agd 70, gd h Fc ds Scics d pis d Hvd Bsiss Sch, Xvi Y ws my chimd g mg lbis Gdm.oh siis hd:vic-sid h c d Bigi Idsi d Cgy-pis (Fch - gisi) (Fc);dic Gcwy phmcics Ic. (uid Ss);dic Mdic Isi tchgis Ic. (uid Ss);sid h Isi pychiq Si lis (Fch- gisi) (Fc);sid Ghm (Fc);dic phm (Fc);mg h XYC cmy (Fc).Dics s civd i sc 2010 by XYC: 17,500.nmb shs hd 31 Dcmb 2010 vi asgi : 758.
Philippe Capron, mmb Vibcs svisy bd.exiy c m c: 2013.
agd 52, gd h HeC bsiss sch d h Isidds piiqs d pis, phii C is m enasd d c isc.oh siis hd:mmb h xciv bd d ci dic Vivdi (Fc);dic d chim h di cmmi SFr(Fc);mmb h svisy bd G C ps(Fc);mmb h svisy bd d chim h dicmmi C ps Fc (Fc);mmb h svisy bd d chim h dicmmi Mc tcm Sa (Mcc);dic acivisi Bizzd (uSa);mmb h svisy bd GVt (Bzi) ;dic tib Sq (Fc).Dics s civd i sc 2010: 20,500.nmb shs hd 31 Dcmb 2010: 410.
Executive board
ric Mare, chim Vibc's xciv bd.
agd 58, gd h HeC bsiss sch d hd MBa m C uivsiy, ic M jid Vibc iocb 1999 d hs b chim h xciv bdsic Dcmb h y.oh siis hd i Vibc sbsidiis:chim Ib (Fc);dic Vibc (asi) py ld (asi);dic Vsch Ii py ld (asi);dic Mr-067 579 122 py ld (asi);chim Vibc Ci (uSa);dic Vibc limid (uK) ;dic Vibc aim Hh Idi piv limid (Idi).
Pierre Pags, mmb h xciv bd d chiig c Vibc.agd 59, dc viy mdici d MBa gd h HeC bsiss sch, pi pgs jid Vibc i 1980.H hs b mmb h xciv bd sic Dcmb1992.oh siis hd:dic phm (Fc);oh siis hd i Vibc sbsidiis:chim Vibc Disibi (Fc);chim h mgm bd Dg nC
Ii (Fc);chim h mgm bd Vibc nii(Fc);mmb h mgm bd d g mg Vibc Fc (Fc);dic Vibc (asi) py ld (asi);dic Vsch Ii py ld (asi);dic Mr- 067 579 122 py ld (asi);dic Vibc Ci (uSa);chim pp Mcig Ci (uSa);dic Vibc nw Zd limid (nw Zd);ji mg Vibc tizimi GmbH (Gmy);ji mg Vibc phm Hdsgssch GmbH(Gmy);dic Vibc J C. ld (J);dic Vibc K C. ld (Sh K);dic Vibc limid (uK);ji mg Vibc sich GmbH (asi);vic-chim Vibc phiiis Ic. (phiiis);chim Vibc rSa (piy) ld (Sh aic);dic Vibc Srl (Iy);dic Imk aG (Swizd);vic-chim Vibc Vim C. ld (Vim);dmiis Vibc asi pcic C. ld (thid); chim lbis Vibc Mxic Sa d CV (Mxic);dic Vibc Mxic Sa d CV (Mxic);vic-chim Vibc Hs Sa (Gc);vic-chim aimdic Sa (Gc); chim Vibc aim Hh Idi piv limid(Idi);dic Vibc Cmbi ld (Cmbi);
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vic-chim lbis Vibc Cs ric Sa(Cs ric);chim Vibc Dmk a/S (Dmk).
Christian Karst, mmb Vibcs xciv bd.agd 52, dc viy mdici, Chisi Ks jidVibc i 1984. H hs b mmb h xciv bdsic Dcmb 1996.oh siis hd:mg Ks, -dig y ivsmcmy (Fc).oh siis hd i Vibc sbsidiis:chim h mgm bd Bi V ts (Fc);mmb h mgm bd Fcdx Saim (Fc);dic Vibc (asi) py ld (asi);dic Vsch Ii py ld (asi);dic Mr-067 579 122 py ld (asi);dic Vibc limid (uK);
Michel Garaudet, mmb Vibcs xciv bd.agd 56, gd h HeC bsiss sch, MichGd jid h Vibc g i 1993. H hs b mmb h xciv bd sic Dcmb 2002.oh siis hd i Vibc sbsidiis:mg Vibc d pg lbis ld (pg);mmb h mgm bd Bi V ts (Fc);dic Vibc Ci (uSa);
mmb h mgm bd amd (Fc);mmb h mgm bd Fcdx Saim (Fc);mmb h mgm bd Vibc Fc (Fc);dic Vibc Hs Sa (Gc);dic aimdic Sa (Gc);chim Vibc (Swizd) aG (Swizd),mmb h xciv bd Vibc S. z .. (pd) .
Jean-Pierre Dick , mmb Vibcs xciv bd.agd 45, J-pi Dick is dc viy mdicid hds MBa m h HeC bsiss sch. H hs b
mmb h xciv bd sic Dcmb 1996.oh siis hd:sid h Fdi deis Vibc (cdi);mmb h D Vi Sd sscii;mgig dic abs Dm Sarl+;c-mg h t D lg -dig yivsm cmy.
Compensation o members o the executive board in respect o 2010I ccdc wih a-Md cmmdis, h is smmy h cmsi gd mmbs h xcivbd:
Sums due in respect o 2010
in ric
MarePierrePags
ChristianKarst
MichelGaraudet
Jean-PierreDick
Cmsi d 530,363 366,370 327,655 243,284 50,353
V is gd i 2010 - - - - -
V sck gswdd i 2010 bsd h mhd sd h csidd ci sms
115,355 85,331 79,010 52,542 -
Total compensation 645,718 451,701 406,665 295,826 50,353
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Calculation criteria or the variable portionth vib cmsi mmbs h xciv bddds sis shd gs: ss gwh;gwh i ig m diy civiis;s w s scic gs; ivy c;cqisiis (cmis, dcs) .
Other beneftsI ddii h vis cmsi ims, mmbs hxciv bd jy h wig bs.
Retirementa smy did bi si (12.5% c sy d 22% i h v v 30 ys svic)gd h wig ms:v ys svic i h G (icdig i ys s mmb h xciv bd);
b s 60;ish his/h c i h G.
Severance payth cmmims md by h cmy d h cmisi cs is mgs i h v hi ics mid s ws:ic M: 483,000;pi pgs: 404,000;Chisi Ks: 326,000.
a is 22 Dcmb 2008 mig, h svisybd id h xciv bd mmbs
h m. I i wih h visis h c 21 ags 2007, h svisy bd, is 13 Mch 2009mig, vd h cmmims md by hcmy d h cmis i cs i h v hmii h cs h chim h xcivbd, ic M, d vis xciv bd mmbs,
Sums due in respect o 2009
in ric
MarePierrePags
ChristianKarst
MichelGaraudet
Jean-PierreDick
Cmsi d 484,463 332,360 292,492 227,057 50,373V is gd i 2009 - - - - -V sck gswdd 2009 bsd h mhd sd h csidd ci sms
99,180 71,630 66,120 44,080 -
Total compensation 583,643 403,990 358,612 271,137 50,373
Cmsi id i sc h 2010 ci y csds wih h xd cmsi id i 2010, h cmsiikd h cs h dics i h Gs cmis id i 2010, h vib cmsi id i 2011 i sc 2010 d h bs i kid wdd i 2010 (cmy vhic).Sums due in respect o 2010
in ric
MarePierrePags
ChristianKarst
MichelGaraudet
Jean-PierreDick
Fixd cmsi(icdig bs i kid) 287,863 195,970 189,655 176,184 35,353
Vib cmsi 181,000 112,000 100,000 55,000 15,000
Cmsi dicshisi G cmis 61,500 58,400 38,000 12,100 -
Total compensation 530,363 366,370 327,655 243,284 50,353
Cmsi id i sc h 2009 ci y csds wih h xd cmsi id i 2009, h cmsiikd h cs h dics i h Gs cmis id i 2009, h vib cmsi id i 2010 i sc 2009 d h bs i kid wdd i 2009 (cmy vhic).Sums due in respect o 2009
in ric
MarePierrePags
ChristianKarst
MichelGaraudet
Jean-PierreDick
Fixd cmsi(icdig bs i kid) 279,063 186,460 181,492 169,057 35,373
Vib cmsi 142,000 86,000 73,000 45,000 15,000
Cmsi dicshisi G cmis
63,400 59,900 38,000 13,000 -
Total compensation 484,463 332,360 292,492 227,057 50,373
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* xc i : sck g s ch bv.
pi pgs d Chisi Ks. th svc y sh yb yb i h v dismiss, gdss whhi s chg i sgy c hwis.
th m sch wc is sbsiy ss h ha-Md w-y cmsi imi d sbjc hchivm dmdig mc cii: i cig s/ss v h w smss cdig hd h si mg, g h q 7%.
th mid cmmims hv b vd hshhds' mig 19 J 2009 by scic si ch bciy i ccdc wih ic l225-42-1 hFch cmmci cd.
Stock grant plans
I i wih h hisi gd by h shhdsmig, sic 2006, h xciv bd hs wdd sckgs ci mgs Vibc d is sbsidiis.
ths gs cig h chivm mc g id h Gs biiy d db,which wi scivy b ssssd h d 2008, 2009,2010, 2011 d 2012.
ri id:2006 : i h gs chivd, hs cqid shswi hv b id by h bciis w ys m
vsig;2007 2010 s: 35% h shs vsd h chim h xciv bd d 25% h c csmy b sd whis hy wk h G. this s iciwi hss b id wh h c cs hvsbishd Vibc sh i sig w ysg cmsi (g gss sy d bs),xc h chim whm his m is s hys g cmsi.
th bs sck gs d vis s s ws:
Sck g s xciv bd mmbs :
Plan Number o shares granted
2006 17,050
2007 13,800
2008 14,050
2009 14,450
2010 12,000
Total 71,350
Number oshares granted
Value o shares on the basiso the method used or the
consolidated fnancial statements
Vesting date Date released*
p 2006 - 24/07/2006 2,700 110,970 2009 2011*p 2007 - 09/07/2007 1,800 115,020 2010 2012*p 2008 - 17/03/2008 1,800 109,440 2011 2013*p 2009 - 19/06/2009 1,800 99,180 2012 2014*p 2010 - 31/05/2010 1,460 115,355 2013 2015*Shares granted to ric Mare 9,560 549,965
p 2006 - 24/07/2006 1,700 69,870 2009 2011*p 2007 - 09/07/2007 1,300 83,070 2010 2012*p 2008 - 17/03/2008 1,300 79,040 2011 2013*p 2009 - 19/06/2009 1,300 71,630 2012 2014*p 2010 - 31/05/2010 1,080 85,331 2013 2015*Shares granted to Pierre Pags 6,680 388,941
p 2006 - 24/07/2006 1,400 57,540 2009 2011*p 2007 - 09/07/2007 1,200 76,680 2010 2012*p 2008 - 17/03/2008 1,200 72,960 2011 2013*p 2009 - 19/06/2009 1,200 66,120 2012 2014*p 2010 - 31/05/2010 1,000 79,010 2013 2015*Shares granted to Christian Karst 6,000 352,310
p 2006 - 24/07/2006 900 36,990 2009 2011*p 2007 - 09/07/2007 800 51,120 2010 2012*p 2008 - 17/03/2008 800 48,640 2011 2013*p 2009 - 19/06/2009 800 44,080 2012 2014*
p 2010 - 31/05/2010 665 52,542 2013 2015*Shares granted to Michel Garaudet 3,965 233,372
Shares grantedto the members o the executive board
26,205 1,524,587
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Plan number and date Number o distributed shares Number o attributable shares
ic M p 2007 - 09/07/2007 900 1,800pi pgs p 2007 - 09/07/2007 650 1,300
Chisi Ks p 2007 - 09/07/2007 600 1,200
Mich Gd p 2007 - 09/07/2007 400 800
Total number o shares 2,550 5,100
I 2010, h sck gs 2007 ws dis ibd. th sck gs dis ibd bd mmbs :
th shhds' mig 19 J 2009 dd si w h ssibiiy wd sck gs, d h ms ics l225-197-1 et seq. h Fch cmmci cd.th si wi vid h gig sck gs mys d qiv ci cgis h s
w s c cs, bh Vibc d cmis h dic y idicy sscid i h m dd byic l225-197-2 h Fch cmmci cd. th mb sck gs wdd my s v 1% Vibcs ci.
ths sck gs wi y b diiiv h d vsig id s w ys, w ih h shs hshd s hvig b id s w ys mh d h vsig id, h xciv bd bigy mwd s h vsig d i ids
v w ys d mximm ys ch.th xciv bd wi dmi h idiy hbciis s w s h ms d g c ii hshs h wi b ikd h imvm i h Gsmc vs.
Trading in company shares
ps h visis ics l621-18-2 h Fchmy d ici cd d 222-15-3 h ggis h aMF, w hby s smmy hscis cid dig h s y by mgsd d is i sc which w w iid.
Number o shares Total amount o transactions
ic M - -
pi pgs 500 59,196
Chisi Ks - -
Mich Gd - -
Purchases 500 59,196
ic M 3,000 303,482
pi pgs - -
Chisi Ks 200 22,773
Mich Gd - -Sales 3,200 326,255
By members o the supervisory board and related partiesn mvm ws d i h 2010 id.
By managers and related parties
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Shareholder structure and
stock market performanceVibc vids c, csis d s imi is idivid d isii shhds d hi dviss(ci yss). this imi is yd by ms ci cms bishd i h Fch mdi, ssss bishd ci wbsis d h aMFs wbsi,d bici G qy ss gs d iimss s qid by w.
Relations with individual investors
th www.vibc.cm wbsi hs ci imi scih is gy dd. I is sd cs d dwdh Gs ci imi: ss ss, diim ici sms, . I ssmy s mi qsis iig G ci ms [email protected] i 2007, d i d cmy wih h wbigis imsd by h scy diciv d haMFs g gis, h ci imi scihs b hcd wih sci mdy discssid Fici d g imi csidig h imi qid d h diciv.
Relations with institutional investors
Mgm is hviy ivvd i cmmicig wih hivss d yss hy m hgh h cs h y, imiy i h pis d ld mks. aysmigs d cc cs gd cicid wih hbici ss, cqisiis h mj vs hG. th Fici ais dm is vib swy qsis ivss d yss my hv gdig hGs sgy, dcs, bishd ss mj vs.
Provisional fnancial
communications timetable or 2011
th visi imb is s ws:2011 s-q ss 19 ai 2011, mk cs;2011 scd-q ss 18 Jy 2011, mk cs;2011 iim ss 31 ags 2011, mk cs;2011 hid-q ss 18 ocb 2011, mk cs;2011 ss 19 Jy 2012, mk cs.
Stock market data
in 2006 2007 2008 2009 2010
Highs sh ic 49.00 68.90 68.85 75.85 130.00
lws sh ic 37.50 47.00 45.23 49.82 70.35
avg sh ic 43.44 59.09 56.58 60.11 92.49
Csig sh ic 47.00 68.70 57.94 72.73 130.00
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Share capital structure
Thresholds crossed
Dig h y dd 31 Dcmb 2009, Vibc wsimd h thdd ass Mgm Hdigs ld.dcd h 15 Smb 2009, wig cqisii shs i h mk, i hd cssd v h 5% sk hshdi h cmy. th cmy si ws m h 5% ski Vibc s 31 Dcmb 2010.
th mb shs d vig ighs hd s 31 Dcmb2010 by h cmy is did i h b bv.
Inormation that might aect a public oering
ps ic l225-100-3 h Fch cmmci cd,i shd b d h ci shs hv sci cighs.
th wig shs cy db vig ighs:
th 46,036 sy shs d c y y vig ighs.
As at 31 December 2010
Shares Voting rights Capital Voting rights
Dick miy g 4,154,448 8,227,168 47.67% 63.87%
thdd ass Mgm Hdigs 473,077 473,077 5.43% 3.67%
Cmy svigs 78,572 157,144 0.90% 1.22%
pbic 3,962,219 4,024,671 45.47% 31.24%
tsy shs 46,036 - 0.53% - %
Total 8,714,352 12,882,060 100.00% 100.00%
As at 31 December 2009
Shares Voting rights Capital Voting rights
Dick miy g 4,154,448 8,227,168 47.67% 63.86%thdd ass Mgm Hdigs 525,860 525,860 6.03% 4.08%
Cmy svigs 78,572 155,091 0.90% 1.20%
pbic 3,914,799 3,975,943 44.92% 30.86%
tsy shs 40,673 - 0.47% - %
Total 8,714,352 12,884,062 100.00% 100.00%
As at 31 December 2008
Shares Voting rights Capital Voting rights
Dick miy g 4,154,448 8,227,168 47.67% 64.23%
Cmy svigs 78,572 155,091 0.90% 1.21%pbic 4,380,086 4,426,335 50.26% 34.56%
tsy shs 101,246 - 1.16% - %
Total 8,714,352 12,808,594 100.00% 100.00%
Number o shares concerned
Dick miy g 4,072,720
Cmy svigs 78,572
pbic 62,452
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Outlook for 2011
th y 2011 vids h G wih w k dvm. aim hh mks xcd gby chg m siivy h i 2010 i h cx mdymic gb cmy.nw dc chs xcd d icid mkdvms i ky cis w sig mdgwh i e b m is i h s h wd.th cmi im sgm shd ci xicsg gwh d by ivi. emgig mks shddiv gwh h d dcig im sgm, whichshd mi sb i e.th ig s cg ss is xcd h ics dsi icsd r&D d cmmciivsms i sm g cis. excdig cqisiis,db dci shd b ss cd h i visys s s w idsi jcs kig dig 2011.
Risk factors
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iiisig d ddssig isks is did i h chiwm h svisy bds ig i cd isk mgm sysms sd g 64 h .as is isk mig, Vibc hs cdcd viw isks h cd hv sigic dvs c is bsiss,is ci sii is ss ( is biiy chivis bjcivs) d csids h s h sigicisks h h hs shw.
Risks relating to the Groups
business activities and strategy
Risks related to the innovation process:research, development, licensing and productregistrationth id viy hmcic idsy is highycmiiv, d vy y, i d m chgigmk ds, miiig is mk sh d sig isdvm, Vibc dvs sigic scs schd dvm.I 2010, Vibc cmmid 6. 5% is v r&D.
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rgy ais dm which is ssib ig,miig d wig mkig hisis.th im hh mk is highy gd d Vibc disys sg cmmim cmic by ig i c cssy ms chiv i.
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Vibc csy ics is hmcic miigcds d is qiy chcks dcs mkd by h
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G. I h cx hmcic miig cds,h G cdcs sysmic viw d g ysis h sy is dcs s h s s
dgs by miig h sid cs ibb h.I ddii, Vibc hs dc ibii y isc h is sbsidiis.
Risks related to distributionchannels and end usersDependence on distributorsVibc s i g mb cis, ih hghis sbsidiis hgh disibs i hs cis iwhich h G hs sbsidiy. Disibi chs my d hi chcisics dd h cy mkig. Hwv, h G's dcs imiy
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dvm d h imc i cd hv h v ssd mgis.
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Risks related to the concentrationo competitionth im hh sc is vy cmiiv. Vibc dcs sd i cmiiv mks i ms icig, cicdiis d dc qiy.th G cs sg cmis g h is wih g scs. a gd csidi hm
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