PIERRE FABRE LABORATORIES ACTIVITY AND CORPORATE SOCIAL RESPONSIBILITY REPORT

2015 - 2016

From health to beauty

PIERRE FABRE LABORATORIES ACTIVITY AND CORPORATE SOCIAL RESPONSIBILITY REPORT

2015 - 2016

From health to beauty

under conditions that were in line with the company values.

The links between our activities are both a blessing to be seized and an asset to be cultivated, especially since our markets develop very differently. The Pierre Fabre Group developed from Pharmaceuticals, grew with Pharmaceuticals, and has long relied on Pharmaceuticals to fund our Dermo-Cosmetics operations. Today, it is this activity that generates the growth of our company and which guaranteed us a financial year in 2015 that was satisfactory overall and in line with our objectives.

However, the indirect contribution of the Pharmaceuticals activity to this result must not be overlooked. Dermo-Cosmetics is the rigor of pharmacy applied to the care and beauty world. Pierre Fabre created and developed this market thanks to the legitimacy resulting from our presence

in pharmaceuticals and pharmaceuticals research. Pierre Fabre Dermo-Cosmetics is consequently the only international cosmetics company to be as firmly anchored in ethics and pharmacy. Our partners, in particular dermatologists and pharmacists, know and recognize this. These facts are important to remember at a time when the company is transforming to meet the challenge of change in the pharmaceuticals world.

Pierre-Yves Revol Chairman of the Pierre Fabre Foundation and Pierre Fabre Participations

2015 will have been one of the most important years in the company's history. This is firstly because, with the implementation of the Trajectoire 2018 strategic plan, we have started to build the Pierre Fabre of the future, a company that is faithful to its values and roots but aware of the need to reinvent itself and not afraid of change. Secondly, it is because in 2015 we saw the most significant reorganization project the Group has ever known.

Thanks to the support measures taken in conjunction with the social partners, we were nevertheless able to considerably reduce the impact of restructuring our R&D and medical visit activities in Pharmaceuticals.

The significant growth of our dermo-cosmetics activity enabled us to take in numerous employees affected by the restructured pharmaceuticals activity, sometimes by anticipating the creation of new positions. In addition to their importance for the employees in question, these transfers highlight the unique nature of our company, which has always been based around two activities, Health and Beauty, benefiting from their synergy.

It would be out of place to boast about such a result, but it should be recognized that the restructuring process, as complex and painful as it may have been, took place

The synergy of ou activitie i an sset to be cultivated

CONTENTSENTHUSIASTIC ENTREPRENEURS l 6

ATTENTIVE TO PEOPLE l 8

INSPIRED BY NATURE l 10

PROUD OF OUR ROOTS l 12

VISION AND STRATEGYPROFILE l 16

PROSPECTS l 20

GOVERNANCE l 22

AT THE HEART OF OUR GOVERNANCE l 24

COMMITMENT l 26

STRATEGY l 28

PHARMACEUTICALS l 30

DERMO-COSMETICS l 32

INTERNATIONAL l 34

FROM HEALTH TO BEAUTYMISSION l 38

INNOVATION l 40

SHARING l 46

INSPIRATION l 48

RIGOR l 50

ATTENTIVENESS l 52

PREVENTION l 54

AT THE HEART OF DERMATOLOGY l 56

RESPONSIBILITY AND CITIZENSHIP

PEOPLE l 60

REGIONS l 64

AT THE HEART OF MADAGASCAR l 66

NATURE l 68

ENVIRONMENT l 70

AT THE HEART OF BOTANICAL EXPERTISE PIERRE FABRE l 72

2015-2016 EVENTS

Mr. Pierre Fabre

THE PIERRE FABRE GROUP WAS CREATED IN 1962 BY

AROUND 13,000 EMPLOYEES

€2 208 million in net sales in 2015

PHARMACEUTICALS DERMO- COSMETICS

CONSUMER HEALTH CARE

No.2private

pharmaceuticals laboratory in France

No.1dermo-cosmetics

laboratory in Europe, No.2 worldwide

Expert in the research, development and production of natural and biological active ingredients

From health to beauty

ras s

5

2005Opening of the

company's share capital to employees

2001Opening of the Pierre Fabre botanical conservatory, CITES approved in 2010

1994Founding of

the Klorane Institute, a corporate foundation

for the protection and promotion of our natural plant heritage

1999Founding of the

Pierre Fabre Foundation,

a government-recognized

public-interest organization

1989Launch of the

cancer drug Navelbine® from

tropical periwinkle

2013The Foundation,

as Mr. Pierre Fabre's sole legatee, now owns 86% of the

Group's shares

2016Creation of

Pierre Fabre Fund for

Innovation

2015Launch

of Nature Open Library and oncology

partnership with Array (USA)

Net sales €2,208,000k

12,950

Net sales €261,589k

Net sales €713,746k

1,875

4,6511980

1990

2015

Net sales €94k

Net sales €5,685k

Net sales €84,635k

1951Purchase of the pharmacy on place Jean Jaurès in Castres (Tarn)

1959Launch of Cyclo 3®, venotonic from butcher's broom (Ruscus aculeatus)

1962Founding meeting of Pierre Fabre Laboratories

1965Start of the dermo-

cosmetics activity

1970Opening of the 1st subsidiary in Spain

1971Creation of

Phytofilière®, which would become

Botanical Expertise Pierre Fabre

1974Purchase of

the Hydrotherapy Center in

Avène-les-Bains (Hérault)

1968Opening of the 1st Research

Center in Castres and launch of the Oral Care

activity

The history of the Pierre Fabre Group is first and foremost that of one man,

a dispensary pharmacist and an enthusiastic entrepreneur. Pierre Fabre

grew his dispensary into a pharmaceuticals laboratory on an international scale,

rooted in his home region and remained loyal to the humanist values that

he always defended.980

58

3

1951

19621970

Net sales €1,861,000k9,900

2010

Net sales €1,376,933k8,111

2000

ENTHUSIASTIC ENTREPRENEURS

MORE THAN 50 YEARS OF INNOVATION FROM HEALTH TO BEAUTY

2010Opening of the R&D center on the Oncopole campus in Langlade (Toulouse)

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A humanist dispensary pharmacist, always ready to listen, Pierre Fabre made the human being his highest concern. He had a constant concern for the well-being of patients and consumers. He built long-lasting relationships with his customers and partners. He had both a benevolent and challenging relationship with his employees. Thanks to this relationship, he was able to share his entrepreneurial passion with them and take care of as many people as possible. Today these values underlie our unique and original development model.

TAKING CARE OF THE WORLD AROUND USATTENTIVE

TO PEOPLE

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Pierre Fabre had a passion for plants. This passion was evident when he presented new projects and when he held impromptu discussions. One day, when making a particularly difficult decision, he exclaimed: "Do you realize what you are asking me? It is as if you were to ask me to cut down a tree." That said it all: demonstrating the carnal side of this passionate and emotional attachment.

He loved plants for their beauty but not that alone. He was fond of their "content." He loved getting to know their oddities. He was fascinated with the living part of the plant, its history, its ties with mankind and its environment. For him, discovering a new plant was a real pleasure, synonymous with a new story to be written.

He favored oat. He was able to provide this humble grain, used to feed horses, with a noble status. In the cosmetics world, which favors sophistication, and that of dermatology, which relies above all on chemicals, it was a pleasure for this man, who appreciated rural life, to be able to make this little plant into an authentic active ingredient designed for fragile skin and recognized by dermatologists.

INSPIRED BY NATURE

A SOURCE OF CREATIVITY BOTH ENDLESS AND DELICATE

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TERRE D'AVOINE - LAND OF OATSThe Terre d’Avoine site is nestled at the heart of the Tarn, in Puylaurens. It is a fortified farmhouse dating back to 1640, surrounded by fields of Rhealba® Oat, an oat variety with exceptional dermatological properties. Organized in collaboration with the Natural History Museum of Toulouse, inaugurated in 2013, this place for sharing knowledge on oats and their dermatological properties tells the story of the A-Derma brand.

LES CAUQUILLOUSIn 2000, the headquarters for our dermo-cosmetics activity were transferred to Lavaur (Tarn), to a place called les Cauquillous. The building, with its futuristic curves inspired by the company logo, is surrounded by a forest and a Mediterranean garden consisting of about thirty varieties of medicinal plants.

TOULOUSE-ONCOPOLEBuilt on the rubble of the AZF factory, the Oncopole project is a flagship for innovation and public health for the whole of the Midi-Pyrénées region. The Pierre Fabre Research and Development Center was the first to settle there in 2011. The Group thus asserts its drive to be an internationally-recognized player in oncology, while focusing its R&D efforts in France and, more specifically, in its region of origin.

SOUAL PLANTLocated about ten kilometers from Castres and opened in 1968, the Soual plant is the historic industrial site of Pierre Fabre Laboratories. Dedicated to dermo-cosmetics, it expanded by 13,000 m² in 2012, particularly to incorporate the production of Sterile Cosmetics.This expansion was an opportunity to experiment with the HQE® approach in industrial buildings.

CASTRES OLYMPIQUEThe company supports Castres Olympique for two reasons: unconditional attachment to the town of Castres and the similarity between the values of rugby – solidarity, synergy, respect for others, a winning spirit – and those of our company.

LE DOMAINE DU CARLA - THE CARLA ESTATEBuilt in 1875, it is an exceptional place perched above Castres and surrounded by nature. Dedicated to meetings and exchanges, it is the place where the Group's partnerships materialize. Every year, it receives some 6,000 visitors from all over the world.

PROUD OF OUR ROOTS

DEVELOPING FROM WHAT WE HAVE BUILT HERE, ON OUR LAND

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MR. PIERRE FABRE DECEMBER 2006

PURSUING RESPONSIBLE GROWTH

VISION & STRATEGY

PROFILE l 16

PROSPECTS l 20

GOVERNANCE l 22

AT THE HEART OF OUR GOVERNANCE l 24

COMMITMENT l 26

STRATEGY l 28

PHARMACEUTICALS l 30

DERMO-COSMETICS l 32

INTERNATIONAL l 34

I HAVE MORE OF A TASTE FOR ACTION, FORECASTING, PREPARING FOR THE FUTURE THAN FOR LOOKING BACK ON THE PAST

15

3

5

DUCRAY GALÉNICEAU THERMALE AVÈNE RENÉ FURTERER

KLORANE GLYTONE (USA)A-DERMA DARROW (Brazil)

ELANCYLPIERRE FABRE DERMATOLOGIEDERMO-COSMETICS

PLANT-BASED ACTIVEINGREDIENTS

patented

PLANTS

Plant-based activeingredients from over

220

51

CONSUMER HEALTH CAREPIERRE FABREHEALTH CAREPIERRE FABREORAL CARENATURACTIVE

KEY ACTIVITIES

PRIORITY AREAS FOR INNOVATION

ONCOLOGY ETHICS

DERMATOLOGICALRx

CENTRAL NERVOUS SYSTEM

€923M

€1,313M

FRANCE

INTERNATIONAL

PRIVATE PHARMACEUTICALS LABORATORY IN FRANCE

No.2 No.2 DERMO-COSMETICS LABORATORY WORLDWIDE

DERMO-COSMETICSLABORATORY IN EUROPE

No.1

PHARMACEUTICALS

DERMO-COSMETICSONCOLOGY

CONSUMER HEALTH CARE

15,000PLANT SAMPLES

3 to 5NEW PLANT-BASED

ACTIVE INGREDIENTS developed each year

3

€2,236MREVENUES

€926M

Dermo-Cosmetics

Pharmaceuticals

€1,280M

€30MOther activities

Urology, women's health, neuropsychiatry, cardiology, pulmonology, allergology and rheumatology

used by our researchers, the largest private

collection in the world

PROFILE KEY FIGURES AS OF DECEMBER 31, 2015

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over 90%PRODUCTION

RESEARCH

is carried out in France

is carried out in France

of our

HECTARES

Bio

of our

100%

200

48

27TARN REGION

including

SITES

SITES IN THE

IN

FOCUSFRANCE

PRODUCTION CENTERS

PIERRE FABRE RESEARCH AND DEVELOPMENT CENTER (CRDPF)Oncology, Dermatology, New Chemical Entities, Pharmaceuticals development, Pre-clinical and Clinical development, Translational Medicine Toulouse (Oncopole)

PIERRE FABRE IMMUNOLOGY CENTER (CIPF)Oncology, New Biological Entities and Biotechnological Productions Saint-Julien-en-Genevois

PIERRE FABRE RESEARCH CENTERCentral Nervous System, Developability, Translational Medicine Castres (Campans)

PIERRE FABRE RESEARCH CENTER (CRPF)Consumer Health CareCastres (Péraudel)

PIERRE FABRE DERMO-COSMETICS RESEARCH CENTER AND SKIN RESEARCH CENTERToulouse (Hôtel-Dieu and Vigoulet)

PIERRE FABRE DERMO-COSMETICS ASIA INNOVATION CENTER Tokyo (Japan)

PLANT-BASED ACTIVE INGREDIENT RESEARCH UNITGaillac and Soual

WATER RESEARCH UNITAvène and Banyuls

RESEARCH & DEVELOPMENT CENTERS

PRODUCTION AND PACKAGING OF PRESCRIPTION DRUGS AND HEALTH CARE PRODUCTSGien (Loiret)Ho Chi Minh City (Vietnam)Tunis (Tunisia)

PHYTOTHERAPY AND AROMATHERAPYCahors (Lot)

ASEPTIC CYTOTOXIC PRODUCTION Pau (Pyrénées-Atlantiques)

HARD-BOILED PHARMACEUTICALS LOZENGESAignan (Gers)

PRODUCTION AND PACKAGING OF DERMO-COSMETICSSoual/Mazamet (Tarn) - Avène (Hérault)Château-Renard (Loiret)Areal (Brazil) - Ho Chi Minh City (Vietnam)Henderson (Nevada - USA)

PRODUCTION OF ACTIVE INGREDIENTS PHARMACEUTICALS, NUTRACEUTICALS AND COSMETICSGaillac (Tarn)Bagnères-de-Bigorre (Hautes-Pyrénées)Palézieux (Switzerland) - Virrey del Pino (Argentina)

DERMO-COSMETICS AND HEALTH CAREMuret (Haute-Garonne)

PHARMACEUTICALSUssel (Corrèze)

DISTRIBUTION CENTERS

PRODUCTS DISTRIBUTED IN

130 COUNTRIES

NEARLY 13,000EMPLOYEES

SUBSIDIARIESin 43 COUNTRIES

1,020AMERICA

3802,955 ASIA/OCEANIA

AFRICA

6,425 FRANCE

2,170 EUROPE

of farmland dedicated to organic farming in

the Tarn region

PROFILE KEY FIGURES AS OF DECEMBER 31, 2015

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Thanks to the involvement of all, we are delivering on the first milestone of Trajectoire 2018.

The 2016-2018 period will be used to run the initiatives, now well underway and marked by key stages. Of course, our environment is not set in stone and we must aim to make all the necessary changes to our road map to guarantee its progress.

I can therefore say that the 2015 financial year was positive. Thanks to the involvement of all Group employees, we have delivered on this first annual milestone for Trajectoire 2018, the strategic plan presented in December 2014, to which we have committed for several years.

So, your diagnosis on the merit of the reorganization that took place in 2015 under the Trajectoire 2018 strategic plan has not changed? BP: No, because our portfolio of prescription drugs will continue to bear the negative effects of the regulatory measures aimed at reducing the French National Health Insurance budget deficit over the next few years. We also know that the growth drivers from our R&D will not be enough to offset the shortfall in earnings generated by these measures in the short term. In this context, we had to resize our sales force in France to suit the reality of our product portfolio and fundamentally transform our pharmaceuticals R&D model to turn the Pharmaceuticals branch around. These transformations doubtlessly helped us form new partnerships, via the clarity they give our strategy and the confidence they create in our clear desire to implement.

How did the Employment Safeguard P r o g r a m a n n o u n c e d f o r t h e Pharmaceuticals branch take place in December 2014? BP: The project related to the net loss of 565 positions within the Pharmaceuticals branch. In the affected perimeter, 250 employees benefited from a voluntary departure scheme, supporting the creation of start-ups, lengthy training or early retire-ment. Through a broad internal transfer plan, thanks to the involvement of all, especially in the Dermo-Cosmetics branch, the company was able to transfer 254 people who would have otherwise lost their jobs. All the measures taken enabled us to offer at least one internal transfer solution to each employee affected by the reorganization. In addition, in line with our commitments, our head count in the Midi-Pyrénées region will remain almost identical to its pre-reorganization level. A sustained social dialog and the responsible mindset of the trade unions minimized the social impact, while observing the Group values.

One of your priority projects relates to re-engineering pharmaceuticals R&D. How is this transformation coming along?BP: Our new organization has been in place since February 1, 2016. In the years to come, it will deliver products with high added value (both medical and economic) in our prioritized therapeutic fields: oncology, dermatology, the central nervous system and consumer health care. To do this, we must open ourselves up even more to the outside world in a pharmaceuticals industry where "open innovation" has become a vital driver for success. With this in mind, we launched Pierre Fabre Fund for Innovation, which will enable us to build research partnerships with biotech companies as well as public and private laboratories. At the same time, we will have to enhance our operational effectiveness by improving quality, deadlines and costs for projects carried out

internally. We have the skills to succeed, in particular in the high-added-value area of targeted cancer biotherapies.

Is the agreement signed in 2015 with the American biotech company Array BioPharma an example of this desired open innovation? BP: It really is the epitome of the transformational acquisitions we want to make in the context of our strategic plan. Thanks to this partnership, we have strengthened our Oncology franchise with two new-generation molecules that have the potential to be marketed as soon as 2018 for the treatment

of melanoma. These molecules are fully in line with the key elements that link all of our activities, from oncology to dermo- cosmetics, through onco- dermatology and dermato-

logical Rx. This first major agreement must pave the way for us. Thanks to the consolidation of our Business Development department and the creation of an R&D team dedicated to research partnerships, we now have the right organization to build our portfolio of molecules.

How well is the Trajectoire 2018 strategic plan progressing? BP: As a reminder, the Trajectoire 2018 plan is underpinned by the desire to reinvent ourselves, while remaining true to the values passed on to us by Mr. Fabre and through the ambition to succeed in the continuity mission entrusted to us by the guarantor, Pierre Fabre Participations. It is therefore both a demanding and an exciting effort, which brings us together under a common, motivating vision!

From this point of view, 2014 was the year we asserted our strategic position, "from Health to Beauty," as a source of sustainable competitiveness, and this gave rise to a new strategy. 2015 was the year we rolled out this strategy within the organization, around 6 key priorities, divided into around twenty initiatives.

We must aim to make all the necessary changes to our road map to ensure its

progress.Bertrand Parmentier, how do you see the Group's performance in 2015?

BERTRAND PARMENTIER: Our net sales exceeded €2.2 billion. This is growth of 4.5% compared to 2014, propelled by our international business, which grew by over 11%.

This good overall performance firstly reflects the substantial, remarkable progress of Pierre Fabre Dermo-Cosmetics: 11% in total, i.e. over twice market growth and nearly 15% internationally. Avène is now the global leader in Dermo-Cosmetics, which is a historic success. Geographically, China reached €100m in net sales, becoming our leading subsidiary.

In parallel, the Pharmaceuticals branch demonstrated good resilience, with international growth (excluding industrial subcontracting) of nearly 6%, despite the impact of the hostile regulatory measures that affected it, especially in France, where revenues fell by 7%. At the same time, we launched and carried out large transformation projects in R&D and in adapting the detailing

networks in France, paving the way for new, value-creating agreements that will boost growth: Array BioPharma in December 2015 for the co-development and sale (excluding North America and Japan) of two new oncology molecules, and Pfizer in February 2016 for a European-wide promotional partnership for the proprietary drug Toviaz in urology.

We managed to contain the forecast downturn in results compared to 2014 for Pharmaceuticals and subsequently the Group, in keeping well within the budget for all of our activities. Our consolidated

operational profitability reached 5.2% for a recurring EBITDA of nearly €200m. Thanks to the excellent management of our working capital requirements, we generated a free cash flow of €93m, after the €98m allocated to investment,

clearing all our financial debts on December 31, 2015. This is an unprecedented situation in the Group's history and clearly put us in a position to be able to search for growth drivers.

PROSPECTS

So I am very happy with the 2015 financial year, which has delivered on the strategic plan to which we have

committed for the coming years.

Interview conducted on May 30, 2016

Bertrand ParmentierGroup CEO

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The Pierre Fabre Group has a unique shareholding structure that guarantees its continuity and independence,

in line with the values of our founder. The substantial-majority shareholder is the Pierre Fabre Foundation. lt has also

developed its employee stock ownership plan, and employees thus form the second-largest group of shareholders.

This structure is unique in France and is aimed at ensuring the long-term stability of the company's capital.

THE PIERRE FABRE FOUNDATIONlt is the Group's controlling shareholder (holding 86% of the shares) through its controlling company, Pierre Fabre Participations (PFP). As the Foundation is dedicated first and foremost to its public interest mission, it delegates the supervision of the Group's management to its subsidiary Pierre Fabre Participations. lt is chaired by Pierre-Yves Revol.

PIERRE FABRE PARTICIPATIONSThe controlling company validates the Group's strategy, appoints its main executives and ensures that the continuity mission defined by Pierre Fabre is respected:• Ensuring the Group's independence• Maintaining both the Pharmaceuticals and

Dermo-Cosmetics activities• Reinvesting a significant proportion of profits

in R&D• Prioritizing long-term goals over short-term

financial results• Maintaining the Group’s footprint in its birth region

and its corporate social responsibility culture• Allowing the Pierre Fabre Foundation to pursue

its objectives through a suitable dividend payment policy

Its Board is chaired by Pierre-Yves Revol.

PIERRE FABRE SAIt is the Group's holding company. It elaborates the Group's overall strategy, consolidates and coordinates its activities, and hosts support functions and shared services. Its Supervisory Board is chaired by Jean-Jacques Bertrand.Pierre Fabre Pharmaceuticals and Pierre Fabre Dermo-Cosmetics are the main subsidiaries of Pierre Fabre SA, and are in charge of the pharmaceuticals and dermo-cosmetics businesses respectively.

86%7.8% 6.2%

The Pierre Fabre SA Supervisory Board is made up of:

1st row, from left to rightJean-Luc BÉLINGARDPierre-Yves REVOL - Vice-ChairmanJean-Jacques BERTRAND - ChairmanRoch DOLIVEUX - Vice-ChairmanBertrand PARMENTIER - Group CEO

2nd row, from left to rightBruno BOUSQUIÉDominique BAZYPhilippe FAUREMaître François CHALLEIL

3rd row, from left to right Christophe LATOUCHE - Pierre Fabre employee shareholder representativeJacques FABREAgathe AMARA-COLOMBIÉ - Employee Administrator

SUPERVISORY BOARD

Frédéric DUCHESNECEO Pharmaceuticals Division

Olivier SIEGLERDirector of the Digital, Processes and Organization corporate department

Éric DUCOURNAUCEO Dermo-Cosmetics Division

Bertrand PARMENTIER Group CEO

Michael DANONSenior Vice-President, Legal, Pharmaceuticals & Public Affairs

Luc PÉLIGRYSenior Vice-President, Finance & Operations

Thierry DENJEANSenior Vice-President, Human Resources, Ethics & Sustainable Development

Marc ALIASDirector, Corporate Communications

EXECUTIVE COMMITTEE

EMPLOYEE SHAREHOLDER

PLAN

PIERRE FABRE SA(treasury stock)

PIERRE FABRE FOUNDATION

(majority shareholder)

PIERRE FABRE SAPIERRE FABRE

PHARMACEUTICALSPIERRE FABRE

DERMO-COSMETICS

PIERRE FABRE PARTICIPATIONS

(controlling company)

GOVERNANCEGUARANTEEING THE CONTINUITY AND INDEPENDENCE OF THE COMPANY

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TRAININGPREVENTINGSUPPORTING

CARING

TRAINING OF DRUGS SPECIALISTS

COMBATING SICKLE CELL DISEASE

ACCESS TO QUALITY HEALTHCARE

DERMATOLOGY IN TROPICAL AREAS

For 16 years, the Foundation has been investing in training drugs specialists in Southeast Asia, and more recently in Madagascar and Togo. It helps build and renovate classrooms and labs, improve the curricula, train the instructors and fund scholar-ships at the Master’s and PhD level. For 3 years, the Foundation has been managing and coordinating an off-campus Master’s program in Cambodia, Laos and Vietnam with three French uni-versities and three Asian universities. In 2016, we are extending our support to the midwife training college in Laos.

There are many economic and geographical issues related to accessing quality primary care in the Southern countries. The Foundation provides aid to treatment facilities in rural areas in Lebanon, Senegal and more recently Madagascar, with the renovation of a maternity unit in a region with insufficient healthcare. We also strive to promote innovative solutions, which are sustainable and suited to the local context. The Foundation is therefore supporting the development of a low-cost, hand-held ultrasound stethoscope and, in 2016, is launching an Observatory for e-health in Southern countries, to identify and support the best e-health projects.

Sickle cell disease is the most widespread genetic illness in the world, and mainly affects Africa, with the number of children born with the illness estimated to be 300,000 per year, with 50% of children dying before they reach the age of 5 if left untreated. The Foundation helps develop local medical organizations and conducts programs on screening, care, training for healthcare professionals and aware-ness-raising among the populations of 7 countries in Africa and in Haiti. It is also investing in epidemiological research and the international appeal for better management of the illness in Southern countries.

Skin conditions cover a number of pathologies, some of which are potentially fatal. The negative impact on public health is worsened in resource-poor tropical countries due to the blatant lack of dermatologists and the difficulties accessing essential drugs, resulting in diagnostic errors and no suitable treatment. In addition to this, patients suffer from stigma. The Pierre Fabre Foundation decided to invest in Mali in establishing teledermatology in 3 pilot regions and targeting noma, one of the most devastating illnesses. In 2016, it is launching a skin cancer prevention scheme for people living with albinism in Sub-Saharan Africa.

With a strictly humanitarian aim, the main purpose of the Pierre Fabre Foundation, a government-recognized public-interest organization, whose mission is to improve access to quality drugs and healthcare in developing countries. Its programs focus on the following main areas:

Pierre Fabre Foundation

over 15 years of commitment to healthcare professionals in Southeast Asia and Africa

AT THE HEART OFOUR GOVERNANCE

The Ruscus plan, given its name as a tribute to the first plant used by Pierre Fabre when the company was created, is a major factor in the way the Group organizes its capital. It also helps develop a different kind of corporate culture, which upholds the values of our founder: independence, entrepreneurial drive, continuity and team spirit. With this stock ownership plan, employees become joint owners of the Group and are more closely involved in corporate life and the company's growth.The plan was developed to enable employees, in particular employees with modest incomes, to build up their assets. Through this measure, Pierre Fabre wanted to ensure that, at the end of their careers, workers were able to receive the equivalent of at least one year's salary, taking the

company matching contribution into account.The Ruscus plan was rolled out in France in 2005, and in 2008 it was extended to six European countries: Germany, Belgium, Spain, Greece, Italy and Portugal.In 2016, Poland entered the Ruscus Plan and, in the years to come, Ruscus will be open to other subsidiaries.

For 11 years, owing to the desire of Pierre Fabre, Group employees are highly involved in corporate performance via an employee stock ownership plan: the Ruscus plan. Employees and the Pierre Fabre Foundation are the Group's only shareholders. This situation is unique on the French industrial scene, guaranteeing the Group's independence.

I WANTED TO ENABLE PIERRE FABRE

EMPLOYEES TO ACCESS SHARE CAPITAL,

TO PASS ON MY PRIDE AND

ENTHUSIASM TO THEM

Ruscus plan

over 10 years of employee stock ownership

79.6%

93.8%

96.6%79.7%

81.7%

77.9%

94.6%

92.6% OF EMPLOYEES ARE SHAREHOLDERS (AS PART OF THE STOCK OWNERSHIP PLAN) AND HOLD

7.8% OF THE GROUP’S CAPITAL

% OF EMPLOYEE SHAREHOLDERS

MR. PIERRE FABREJUNE 2005

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Our company strives to adhere to the principles of business ethics and to work with partners sharing these principles. To do so, we adopted a Group Code of Ethics. This is a document that lists the commitments, practices, and behaviors chosen and adopted by our company and which will govern both its internal and its external relationships. The code of ethics serves as a point of reference and officially defines the ethical obligations of all employees to ensure they act appropriately and make responsible decisions in their day-to-day work.

The Pharmaceuticals Division has rolled out an "Ethics and Compliance" program relating to best advertising practices and relations with health care players. This program notably includes Transparency of relations, and a training plan for employees assigned to pharmaceuticals operations in France and abroad.

Our code of ethics is based around 6 main themes:• Meet all the needs of the users of our products, from health to

beauty • Develop relationships based on trust with health care professionals • Act ethically with the public authorities and all stakeholders• Be a socially-responsible company committed to

protecting the environment • Recognize the importance of our employees, who play a crucial role

in the success of our development and commitments• Protect our assets to guarantee our company's long-term success

Code of Ethics

GOVERNANCE & ETHICSThe fact that our company belongs to a foundation that is a government-recognized public-interest organization, and the values inherited from our founder including pharmaceuticals ethics – which we make sure to place at the heart of our action – guide us in achieving our mission on a daily basis: "caring for the human being as a whole."

INNOVATION & HEALTH/BEAUTYIn accordance with our mission, we design and develop innovative solutions that contribute to the well-being of patients and consumers, from health to beauty. We achieve this by cooperating with health care professionals, our trusted partners worldwide. Our common goal is a major worldwide challenge: promoting access to health care and taking positive action on health issues. In addition, we support charity projects focusing on the same issues.

ECODESIGN & INDUSTRIAL FOOTPRINTThroughout the life cycle of our products, from the purchase of raw materials and their production to being placed on the market and their use, we ensure that our actions fit in with respect for our suppliers and reduce our impact on the environment.

KNOWLEDGE & NATURE CONSERVATIONNature is a source of inspiration, innovation and knowledge, our activities are built around its wealth. Today, almost 70% of the company's net sales rely on the marketing of products whose active ingredient comes from nature. Therefore, whether it be through the development of natural active ingredients or through the use of processes resulting from plant-based chemistry, respect for natural resources is profoundly rooted in our values.

PEOPLE & REGIONSWe listen to our employees, our economic partners and local communities in the regions where we operate, and we fit this dialog into a process based on constructive collaboration and a sense of joint responsibility. Employees and partners alike contribute to our influence and performance. In return, we support the professional development of our employees and, insofar as possible, contribute to the economic, social and cultural dynamism of the regions where we operate.

FIND OUT MORE SUSTAINABLE DEVELOPMENT www.pierre-fabre.com/en/sustainable-development

FIND OUT MORE GOVERNANCE AND ETHICS www.pierre-fabre.com/en/ethics-and-codes-conduct

The shareholding structure of the Group, mainly held by a government-recognized public-interest foundation, gives us the independence we require to ensure our activities are in line with a long-term vision and encourage responsible growth. We thus place the importance of corporate social responsibility (CSR) at the heart of our development model, loyal to the humanist and civic values of our founder.In 2015, AFNOR Certification, an independent organization, assessed our CSR approach according to the AFAQ 26000 method and granted us the level "exemplary," which was a first for a French company with over 10,000 employees.

Innovation & Health/Beauty

Governance & Ethics

Gouvernance & Éthique Connaissance

& Préservation de la Nature

Knowledge & Nature Conservation

Écoconception & Empreinte industrielle

Ecodesign & Industrial footprint

People & Regions

STRATEGIC PRIORITIES

Consult our CSR report online in the sustainable development section. www.pierre-fabre.com/en/sustainable-development

IN 2015, PIERRE FABRE OBTAINED THE "EXEMPLARY" LEVELIN THE AFAQ 26000 ASSESSMENT

• Pharmaceuticals Innovation & Culture• Prevention• Support for health care professionals• Involvement in the public health system• Health & Solidarity

Innovation & Santé/Beauté

• Governance & Mission• Code of Conduct• Safety & Quality

Requirements• CSR Management

Gouvernance & Éthique

• Nature as a source of innovation

• Research applied to nature• Sharing of knowledge• Nature conservation

& preservation efforts

Connaissance & Préservation de la Nature

• Integrated ecodesign policy• Responsible purchasing• Pollution reduction

and resource preservation• Mobilization of employees

Écoconception & Empreinte industrielle

• Skills development• Health & Safety of employees• Equity• Economic and social development

of territories

Hommes & Territoires

RELATED ISSUES

COMMITMENT PURSUING OUR SOCIALLY RESPONSIBLE APPROACH

- 2015 -

CODE OF ETHICSPIERRE FABRE LABORATORIES

From health to beauty

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In 2015, the Pierre Fabre Group generated €2,208 million in net sales. The Group notably benefits from its presence in

the main emerging countries where the pharmaceuticals and cosmetics markets are

experiencing strong growth that is set to continue over the coming years.

STRATEGYDEVELOPING FROM HEALTH TO BEAUTY WHILE REINVENTING OURSELVES, TRUE TO OUR VALUES

A STRATEGIC POSITION THAT SETS US APARTAs a dispensary pharmacist, Pierre Fabre transposed the medicinal mission on an industrial scale with the drive to provide a global response to the therapeutic needs and well-being of patients. The Pierre Fabre Group has a continuum of activities that run from Rx pharmaceuticals to dermo-cosmetics care, oral care, family health care and natural health care. To put this unique "from health to beauty" approach into practice on a daily basis, we have always relied upon health care professionals whose confidence constitutes our first and foremost asset. Through the diversity of our activities, we provide them with patient-focused therapeutic solutions allowing them to treat the main condition and its secondary effects. This is the case, for example, for hospital cancer wards. We offer them dermatological care protocols to help reduce the side effects caused by chemotherapy and radiotherapy.

A CONTROLLED DRUG VALUE CHAINAnother asset of the Group is its comprehensive and integrated control of the drug value chain, from laboratory research to medical promotion, and the key steps of clinical development, manufacturing of active pharmaceuticals ingredients, packaging and distribution. This expertise allows us to build partnerships of a diverse nature with the largest international laboratories or innovative biotech companies. We have reached a globally recognized level of technical skill in the development and manufacture of natural or biological active ingredients, cancer drugs (particularly in an injectable form) and hard-boiled pharmaceuticals lozenges. Today, these areas of expertise allow us to propose an integrated industrial subcontracting offer to the most demanding American, European or Japanese laboratories.

ORIGINAL AREAS OF RECOGNIZED EXCELLENCEWhen it comes to active pharmaceuticals ingredients, the Group especially excels in two areas. On the one hand, research on natural active ingredients, on the other hand, research on biological active ingredients. Using the largest collection of plants available in the industry, Pierre Fabre researches new plant-based active ingredients for both pharmaceuticals and dermo-cosmetics. To our knowledge, no other pharmaceuticals or cosmetics laboratory brings together such a continuum of expertise in botany, agronomics, extraction of plant-based active ingredients, formulation and preparation of plant-based pharmaceuticals and cosmetics. Likewise, through its Eau thermale Avène brand, Pierre Fabre has acquired unparalleled expertise in understanding the dermatological mechanisms of thermal spring water. In addition, Pierre Fabre pharmaceuticals research has become a recognized player in the field of targeted biotherapies (monoclonal antibodies, immunoconjugates and cell therapies). The Dermo-Cosmetics branch can also rely on our cutting-edge biotechnology expertise when developing new care solutions from biological active ingredients. In December 2015, the Pierre Fabre Group decided to share its plant heritage and expertise in the phyto-industrial value chain, by allowing access to our sample library of 15,000 plant extracts. This is Nature Open Library, an open-innovation program in the pharmaceuticals, nutraceutical and agri-food sectors.

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Trajectoire 2018In December 2014, the Pierre Fabre

Group presented its new strategic plan, named TRAJECTOIRE 2018, based on

innovation, international development and sustainable value creation. Ever

since, we have been implementing the plan.

The Trajectoire 2018 plan initially reasserted the Group's unique position in our competitive environment. This position is characterized by a unique continuum of activities, "from Health to Beauty," built on a model of medicalization and authorized advice.

This is a real competitive advantage. Key elements link all of our activities, from oncology to dermo-cosmetics, onco-dermatology and dermatological Rx. We are therefore the only international cosmetics company to also be involved in dermatological Rx, which grants us unparalleled legitimacy from the dermatologists who prescribe our products and the pharmacists who recommend them. We are also in an ideal position to develop the company in Consumer Health Care, with growth drivers that borrow

from both the Pharmaceuticals and Dermo-Cosmetics business models.

From this position, the Trajectoire 2018 strategic plan aims to restore economic balance to both of our activities. The Dermo-Cosmetics branch is experiencing sustained growth, contributing to the bulk of the Group's earnings. To the contrary, for several years, especially in France, the Pharmaceuticals branch has been subject to the very strong regulatory pressure exerted on the Pharmaceuticals industry (lower reimbursement rates of mature drugs, price cuts, rapid rise of generic drugs, etc.), which it must offset through better productivity in its R&D model. Trajectoire 2018 therefore aims to restore the competitiveness of our Pharmaceuticals branch, without curbing the strong ambitions we have for the Dermo-Cosmetics branch. It also aims to provide us with the financial capacity to seek out growth drivers, especially for Pharmaceuticals.

1 / Improve prescription drugs' operational and financial room for maneuver

2 / Build a strong multi-local Consumer Health Care franchise

3 / Reinforce the positioning of Dermo-Cosmetics by strengthening its brand portfolio around Eau thermale Avène and gaining market shares

4 / Glocalize the from Health to Beauty model, namely by promoting the Pierre Fabre promise on a broader range of channels and by enriching digital content

5 / Better serve our growing markets

6 / Make our operational model more efficient by improving the robustness of our processes, the productivity of our tools and the agility of our organization

To achieve these objectives, we have defined 6 priorities, which are each covered in a road map and have operational milestones:

Frédéric DUCHESNECEO

Pharmaceuticals Division

questions for...

926 MILLION EUROS revenues in 2015 by the Pharmaceuticals branch

90% OF ONCOLOGY NET SALES made internationally

Originating in the pharmaceuticals sector over 50 years ago, we are continuing to

develop our pharmaceuticals business, with a desire to provide patients with treatments in the following areas: Oncology, Ethics and

Consumer Health Care.

RECOGNIZED FOR OUR GROWTH FRANCHISESCommercially, in France and abroad, the Group has decided to organize itself around 3 growth franchises:The Oncology franchise is made up primarily of proprietary drugs Navelbine®, the Group's leading pharmaceuticals brand in terms of net sales, and Javlor®. The Ethics franchise, on the other hand, offers a wide range of drugs in urology, female health, neuropsychiatry, cardiology, pulmonology-allergology and rheumatology. The Consumer Health Care franchise puts a wide range of prescription drugs and OTC products at the disposal of pharmacists, health care professionals and patients, in three main areas: family health care (Structum, Drill, Pedi-Relax, Nicopatch, etc.), oral care (Elgydium, Eludril, etc.) and natural health care (Naturactive).

The fourth franchise is the CDMO* business, a significant growth driver for our pharmaceuticals branch.

ONCOLOGY IS OUR MAIN PRIORITYWe dedicate a level of investment to R&D which is at the higher end of the industry: 16% of our pharmaceuticals revenues in 2015. Conscious of heavy investments required when developing a new drug, we are focusing our research and development efforts on 4 treatment areas: oncology, dermatological Rx, the central nervous system and consumer health care.

Of these research areas, oncology is our top priority. Our Research and Development Center at the Toulouse Oncopole campus and our Immunology

Center at Saint-Julien-en-Genevois are working on cytotoxic molecules, targeted therapies and mono-clonal antibodies for cancer treatment. The two centers combine their expertise in the fields of the future: immunoconjugates on the one hand and onco-immunology on the other. Onco-dermatology is also a relevant field of research for the Group, at the crossroads of our expertise in oncology and dermatology.

*CDMO: Contract development and manufacturing organization (development and production service for other pharmaceuticals laboratories)

What are the priorities for the Pharmaceuticals branch? FRÉDÉRIC DUCHESNE: We will continue our development in oncology, which accounts for around 20% of the branch's revenues. We have over 35 years of experience behind us in this therapeutic field, to which we are going to dedicate 50% of our R&D spending. Oncology is the most international of our commercial franchises, with over 90% of business conducted abroad. In late 2015, this wealth of experience and international footprint led the American company Array BioPharma to sign a strategic partnership agreement with Pierre Fabre to

co-develop and sell 2 latest generation molecules: binimetinib and encorafenib. Our second franchise, named Ethics, sells our prescription products, excluding oncology, in particular in urology, gynecology, cardiology and diabetes. We have just signed a large exclusive promotion agreement in Europe and Turkey with Pfizer, for a urology product. As for the Consumer Health Care franchise, it is developing and marketing family health care, oral care, phytotherapy and aromatherapy products. We are already one of the main players in the French market, especially for oral care, where we are the leader in pharmacies, and our ambition is to develop internationally, with the support of the Group's subsidiaries, in 18 priority countries.

Is open innovation a priority area for Pierre Fabre Pharmaceuticals' R&D? FD: Yes, and in 2015 we launched two major initia-tives in this area. The first, Nature Open Library, is a unique program based on sharing our expertise in the research, development and industrialization of plant-based active ingredients. In this context, we are offering innovative companies special access to our exceptional sample library containing 15,000 plants and plant extracts. The second initia-tive is Pierre Fabre Fund for Innovation. This fund is for biotech companies, start-ups and private or public research laboratories specializing in oncology

or dermatology. Many innovative companies discover technologies and molecules with therapeu-tic benefits, but many of these - particularly in Europe - lack the resources to progress from discovery to development. We would like to support them by giving them access to additional financial

resources, but above all, by providing all our scientific, medical, technical and in-dustrial expertise. In parti- cular, we have developed recognized expertise in the area of monoclonal anti-

bodies, enabling us to take part in the immuno- oncology revolution and support start-ups in this area.

How is you pharmaceuticals subcontracting activity coming along? FD: For us, it is a significant driver for the growth and performance of our manufacturing organization. We are offering our partners, pharmaceuticals laboratories or biotech companies, a comprehensive development and manufacturing offer. Our services cover areas from chemical, biological and pharmaceuticals development to industrial production, around three separate areas of activity: cytotoxic- or biotechnological-based injectable products, pharmaceuticals lozenges and active ingredients, especially those of natural origin. We have just signed a large contract for manufacturing pharmaceuticals lozenges for smoking cessation on the American market. To honor this contract, and more to come, we are investing in our Aignan plant, in the Gers region, which will soon be audited to obtain the FDA certification already granted to our plants in Pau (injectables) and Gaillac (active ingredients).

We would like to support innovative companies, especially in Europe

PHARMACEUTICALS ACCELERATING INTERNATIONALIZATIONAND INNOVATION

ONCOLOGY ETHICS CONSUMER HEALTH CARE

PHARMACEUTICALS BRANCH

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and South Africa and Australia in 2015. In addition, we are launching our brands in markets where they were not yet sold, for example René Furterer in China or Klorane in South Korea. Incidentally, China has become our main international subsidiary, with net sales of over €100m in 2015. Brazil is another market where we are expe- riencing growth, and we are currently making significant investments in the local plant where our Brazilian brand Darrow is manu- factured. Lastly, we opened an Innovation Center in Tokyo, the aim of which is to supplement the offer of our brands with products that are specially designed for Asian skin. The first product to be released from this Center in 2015, Avène's Aqua Cream Gel, experienced great commercial success in Japan and will be launched in 3 other countries in the region in 2016. Whatever the market, our main objective is to be closely connected to dermatology and pharmacy professionals. We only distribute our products in channels where they can benefit from authorized professional advice, including on the internet.

How are you able to guarantee that all of the brands in your portfolio are able to co-exist? ED: First of all, we are the only international cosmetics company to also be present in dermato-logical Rx, thanks to our brand Pierre Fabre Dermatologie (PFD). PFD is present in over 80 countries and has become one of the world's leading dermatological laboratories, giving the whole of PFDC an ethical base, which many dermatologists appreciate. In addition, our portfolio contains 9 dermo- cosmetics brands, with very complementary marketing positions. Three of these brands have a marked dermo-cosmetics profile, but each has their own purpose: Eau thermale Avène has products formulated from thermal water captured at the spring, A-Derma uses active ingredients extracted from Rhealba® oat plantlets grown in the South West of France and Ducray uses synthetic or plant-based

How is the internationalization of Pierre Fabre Dermo-Cosmetics (PFDC) coming along? ERIC DUCOURNAU: Over 65% of our sales are now made outside France, following 2015, a year in which our international sales grew by almost 15% at the current exchange rate (12% at the constant exchange rate). Our progress was almost twice as quick as the market as a whole. Eau thermale Avène is now the No. 1 dermo-cosmetics brand sold worldwide. This performance is firstly linked to the opening of new subsidiaries, notably in Korea in 2013, Chile in 2014

1,280 MILLION EUROS revenues in 2015 by the Dermo-Cosmetics branch

No.1 IN DERMO- COSMETICS

As the inventor of dermo-cosmetics, Pierre Fabre Dermo-Cosmetics offers innovative

skin care and hair care solutions following a sacrosanct principle: making beauty ethical. As the only international dermo-cosmetics player

present in the field of therapeutic dermatology, we are making this activity the flagship for

our relationship with dermatologists. We are keen to support patients and health

care professionals throughout the course of treatment, with follow-on or supplementary

products to the therapeutic treatment.

OUR PRODUCTS ARE RECOMMENDED TO MEET THE SPECIFIC NEEDS OF EVERYONEWe design our dermo-cosmetics products to the highest standards of efficacy and safety, thanks to our leading-edge expertise in natural substances, hydrotherapy dermatology, biotechnologies and sterile cosmetics. Our products are developed, clinically tested and manufactured according to the standards set out by the pharmaceuticals industry. Due to their highly technical nature, they are sold exclusively in the pharmacy channel or equivalent. Recommended and explained by the pharmacist, the pharmacy personnel or consultants trained in diagnosis (particularly in countries lacking a strong pharmacist culture like Japan or China), they provide a suitable response to the specific needs of everyone.

WE MAKE PATIENT SUPPORT OUR PRIORITY

Dermo-cosmetics care products are often recommended by dermatologists to support or aid patient compliance with a medical treatment and help improve quality of life. This is notably the case in cancer treatment, an area where treatment often causes side effects with two impacts on quality of life: skin discomfort or even pain and the effect on self-confidence. Pierre Fabre Dermo-Cosmetics prioritizes support for patients and health care professionals, by developing specific programs.• One SMILE (ONco Education & Skin side effects

MInimized for Living Even better): developed by Avène Dermatological Laboratories in con-junction with leading onco-dermatologists. This training and awareness-raising program provides an educational description of the

range of dermatological symptoms that result from cancer treatments. The aim is to help medical staff manage side effects and support patients in regaining self-confidence. www.one-smile.care

• Hydrotherapy treatment: the Avène Hydrotherapy Center is offering a 3-week post-cancer hydrotherapy treatment with proven benefits (multi-center clinical study versus control group), both in improving the skin and patient quality of life.

• Foundation for Atopic Dermatitis: created in 2004, in particular helps finance research and clinical studies on atopic dermatitis. In addition, it develops and organizes educational initia-tives and creates, produces and distributes in-formation materials intended for practitioners, parents and children.www.fondation-dermatite-atopique.org/en

in Europe

in China

Éric DUCOURNAU CEO

Dermo-Cosmetics Division

questions for...

active ingredients and also offers hair care products. Our other international brands have a more cosmetics profile: Klorane products are all formu-lated from plants, for a family target, René Furterer is a premium hair care brand that uses essential oils and plant extracts and Galénic is also a premium

brand, but dedicated to skin care. Our portfolio also includes 2 local brands: Darrow in Brazil and Glytone in the United States. Each brand meets different

consumer needs, they have their own, strong character that sets them apart, while all meeting the safety and efficacy requirements of consumers.

Eau thermale Avène is now the No. 1 dermo-cosmetics brand sold worldwide.

DERMO- COSMETICS LEADER IN

ETHICAL BEAUTY

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ALGERIA • ARGENTINA • AUSTRALIA • AUSTRIA • BELGIUM • BRAZIL • BULGARIA • CANADA •CHILE • CHINA •

CZECH REPUBLIC • DENMARK • FINLAND • FRANCE • GERMANY • GREAT BRITAIN • GREECE • HONG KONG • INDIA •

ITALY • IVORY COAST • JAPAN • LEBANON • MADAGASCAR • MEXICO • MOROCCO • POLAND • PORTUGAL • RUSSIA •

SENEGAL• SINGAPORE • SLOVAKIA • SOUTH AFRICA • SOUTH KOREA • SPAIN • SWEDEN • SWITZERLAND • TAIWAN •

TUNISIA • TURKEY • UNITED STATES • URUGUAY • VIETNAM

IN 43 COUNTRIES

ON ALL 5 CONTINENTS

1,069 BILLION DOLLARS global pharmaceuticals market

16 BILLION DOLLARS global dermo-cosmetics market

Through a network of subsidiaries in 43 countries, including all the major emerging markets, and distribution

of our products in over 130 countries, we generate 58% of our net sales in

foreign markets. In total, 6,525 people are employed outside of France.

OUR MARKETSThe global pharmaceuticals market grew by 8.9% in 2015 to reach $1.069 trillion, driven by North America for 42% of sales (+11%), Europe for 22% (+6%), Africa/Asia-Pacific for 29% (+6%) and Latin America for 7% (+16%).In France, the retail pharmaceuticals market continued to shrink in 2015 (-0.9% in value further to decreases already seen in 2014 (-2%) and 2013 (-2.4%). Only the non-reimbursed product segment (drugs sold over the counter without a medical prescription) grew by 2.3%. The hospital market remained stable compared to 2014.

The global cosmetics market reached $323 billion in 2015, up 4.6%. All regions in the world are growing, including Western Europe. The development forecasts between 2016 and 2020 are estimated at an average of 5% per year, due to strong projected growth in Asia, Latin America, Africa and the Middle East. The USA, the leading global cosmetics market, should remain in the top spot until 2020. For the first time in 2015, the dermo-cosmetics market grew faster than the cosmetics market. It is estimated at $16 billion (€14.5 billion), or around 5% of the overall cosmetics market.

Pierre Fabre Dermo-Cosmetics launched Klorane in Korea in February 2016

PHARMACEUTICALS BRANCH DERMO-COSMETICS BRANCH

51% 65%

EUROPEEUROPE ASIA

ASIAAMERICAAMERICA AFRICA/

MIDDLE-EAST

AFRICA/ MIDDLE-EAST 11 22 33 44

PERCENTAGE OF NET SALES ABROADINTERNATIONAL TARGETED GLOBAL EXPANSION

INTERNATIONAL FOOTPRINT THROUGH SUBSIDIARIES AND OFFICES

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Driven at a very early stage by the desire to have a presence outside of France, the Pierre Fabre Group initially turned to Southern Europe. A natural step for a company located in the Tarn, close to Spain. Incidentally, the Group opened its first subsidiary in Barcelona in 1970. This was followed by Portugal, Italy and Greece. Our dermo-cosmetics brands now have a prime position in these four countries.

Our international development follows the model that made the company a success in France.

Regardless of the country in which we are operating, the virtuous continuum principle – doctor, pharmacist, patient – prevails. This is necessary for pharmaceuticals, but also for dermo-cosmetics. It is, however, a model that we know how to adjust to take into account the specific features of each market where distribution through pharmacies is more or less developed.

Being attentive to all cultures, creating relationships based on trust with local health care professionals, adapting to the reality of the distribution channels of each market without ever surrendering our requirement for professional advice provided in an environment that is consistent with the highly technical nature of our products: this is our approach for internationally building upon what we have constructed from our native land for over half a century.

MR. PIERRE FABRE JUNE 2005

MEETING THE CHALLENGES OF HEALTH AND WELL-BEING

FROM HEALTH TO BEAUTY

MISSION l 38

INNOVATION l 40

SHARING l 46

INSPIRATION l 48

RIGOR l 50

ATTENTIVENESS l 52

PREVENTION l 54

AT THE HEART OF DERMATOLOGY l 56

WE HAVE CREATED NUMEROUS PRODUCTS, GOOD PRODUCTS, DESIGNED WITH PASSION AND CARE, WE HAVE DONE USEFUL THINGS FOR HEALTH

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MISSIONCaring for the human being as a whole.In order to do this, we design and develop innovative solutions that contribute to people's well-being, from health to beauty. We achieve this by cooperating with health care professionals, our trusted partners worldwide, by drawing relentless inspiration from nature and plants, and by placing pharmaceuticals ethics at the very heart of our operations.

Health is a unified whole. It is not just about being free of disease or disability. As the World Health Organization (WHO) says, it is a state of complete physical, social and mental well-being. The Pierre Fabre Group took on the ambition to meet this need for well-being, with a constant concern for proven efficacy and the highest level of safety, from pharmaceuticals to dermo-cosmetics, from health to beauty. Men, women and children, ill, recovering or in good health, from birth to their last days, Pierre Fabre products care for everyone.

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16% OF NET SALES FROM PHARMACEUTICALS

ALMOST 200 MILLION EUROS

4% OF NET SALES FROM DERMO-COSMETICS

Amounts allocated to R&D reflect the importance that we attach to the

discovery and development of innovative therapeutic and well-being solutions, from

health to beauty. Pierre Fabre combines pharmaceuticals research and dermo-

cosmetics research, thus creating novel links between these different fields. The Group

makes use of cross-functional expertise, in particular, research on plants and expert

knowledge on active ingredients of natural or biotechnological origin.

AMOUNTS ALLOCATED TO R&D IN 2015

Oncology: We are allocating 50% of our medical research budget to oncology, which is the priority area for innovation. Our research is focused on areas with major medical needs, mainly solid tumors, notably cancers of the aerodigestive tract such as colon cancer, head and neck cancers, or cancers of the urogenital tract, such as bladder cancer, as well as skin cancers (melanomas) and certain blood cancers such as leukemia. At the crossroads of our expertise in dermatology and oncology, onco-dermatology has become a vital area of our R&D in recent years.

Central Nervous System: Our researchers are working to develop therapeutic solutions in the treatment of schizophrenia, bipolar disorders and depressive disorders.

Dermatological Rx: In this area, we are focusing our innovative efforts on treating infantile hemangioma, atopic dermatitis, orphan diseases and onco-dermatological illnesses. The development of new topical treatments for the management of these skin cancers - notably basal-cell carcinomas and actinic keratoses - are our priority now more than ever.

Consumer Health Care: Our consumer health care innovation unit covers a broad spectrum of solutions in the areas of family health care, oral care and natural health care. In this domain, we are developing drugs as well as medical devices, dietary supplements and cosmetics, with the aim of meeting every individual's needs on a daily basis.

Dermo-Cosmetics: Our researchers are identifying potential active ingredients and new targets. They are developing suitable knowledge and methods to better understand the physiology of normal skin and skin suffering from a condition, to provide the most comprehensive cosmetology offering possible, from support for skin problems to care for the skin and scalp.

The emerging scientific discipline of translational medicine bridges the gap between fundamental research carried out in laboratories and clinical research carried out on patients. The aim is to have laboratories, practitioners and patients working closely together to make new treatments - cancer treatments in particular - available as quickly as possible. Committing to the realization of the Oncopole project in Toulouse at the turn of the millennium, with its campus housing researchers, clinicians, practitioners and patients on the same site, Pierre Fabre Laboratories took an interest in translational medicine very early on. Everything is now up and running. The Pierre Fabre Research Center is just over the road from the Toulouse University Cancer Institute - Oncopole (IUCT-O). The IUCT-O clinic receives 10,000 patients a year and is the first French treatment establishment to be awarded ISO 9001 certification for its management of clinical trials in cancer treatment. In 2016, the Group formed a partnership with the Toulouse Cancer Health Foundation and the French Institute of Health and Medical Research (INSERM), a translational medicine research chair focusing on immuno-oncology. With the support of the IUCT-O and integrated within the Toulouse Cancer Research Center (an INSERM structure), the chair will be managed by a doctor-researcher of international renown, for whom a recruitment drive was launched in June 2016.

Translational medicine: from laboratory to patient

At the Oncopole in Toulouse, the Pierre Fabre R&D Center is just over the road from the IUCT-O clinic. The IUCT-O clinic is the first French treatment clinic to receive ISO 9001 certification for its management of clinical trials in cancer treatment.

INNOVATION IMAGINING FUTURE PRODUCTS

5AREAS OF INNOVATION

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Natural substances: Plants and water are a source of multi-disciplinary scientific experiments with the aim of developing original active ingredients used in the fields of pharmaceuticals, family health care and dermo-cosmetics.

Immunoconjugates:At the crossroads of chemistry and biotechnologies, they are currently a booming class of pharmaceuticals for cancer treatment because they allow the active components to be delivered to the very core of a cancerous cell without affecting the healthy cells. Our research teams have complementary know-how for designing, producing and assessing such molecules, by combining the expertise of targeted biotherapies developed in Saint-Julien-en-Genevois, knowledge on the cytotoxic agents studied at Toulouse-Oncopole and the chemistry know-how of the teams in Toulouse.

New chemical entities: Technological advances in molecular and cellular biology, structural biology, molecular modeling and medicinal chemistry contribute to the discovery of innovative therapeutic principles. These therapeutic principles are approved through the implementation of pharmacological models similar to situations tested during studies on patients, and are therefore highly predictive. Today, this expertise is an essential line of research, particularly in oncology and neuropsychiatry.

Biotherapies:Based on monoclonal antibodies and recombinant proteins, biotherapies are also at the cutting edge of Pierre Fabre research, and have been studied by us for over 15 years. The interest in monoclonal antibodies lies in their highly targeted mode of action, their efficacy and their better tolerability in relation to chemotherapy treatments.

The development of a pharmaceuticals drug is a long and complex process, which

on average takes 15 years, requiring 10,000 synthesized molecules to market one

drug. To rise to this challenge, Pierre Fabre R&D relies on 5 main areas of expertise.

5Alongside surgery, radiotherapy, chemotherapy and targeted therapies based on kinase inhibitors, immuno-oncology is now the No. 5 course of treatment for cancer. This new-generation treatment is mainly based on monoclonal antibodies, the molecules naturally produced by our immune system to fight against molecules identified as being foreign by the body. The Pierre Fabre Immunology Center (CIPF) started looking at antibodies in the early 2000s. While chemotherapy molecules affect cancerous and non-cancerous cells indiscriminately, the CIPF wants to develop new antibodies that specifically recognize tumorous cells, preventing their growth while reducing side effects. The advent of antibodies has opened up a whole field of research into their derivatives. For the past three years, the stars of cancer treatment have been immunomodulators. These antibodies help patients' immune systems to "unlock themselves" and fight the tumor. At the CIPF, we are trying to find the right antibody formula for each type of cancer. Current research involves combining several immunomodulators with each other and combining immunoconjugates and immunomodulators, to improve the efficacy of the molecules even further.

Text from Figaro Partner, published on May 23, 2016 in the health care section of Le Figaro

Immuno-oncology: new hope in cancer treatment

Translational medicine:To move more quickly and safely from pure research to proof of concept and then to the drug administered to the patient, Pierre Fabre R&D now uses translational medicine, an accelerated clinical development strategy based on innovative clinical designs.

PHARMACEUTICALS INNOVATION

AREAS OF SCIENTIFIC EXPERTISE

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Since the 1990s, Group researchers and engineers have been designing a unique system for the manufacture of sterile preservative-free skin care products, in the form of disposable single-doses, for the most demanding skin types. To make these sterile

products accessible to as many people as possible and to promote compliance with treatments, a new research project has been put in place. This resulted in the launch of a new generation of skin care in 2009: Sterile Cosmetics.

Sterile cosmetics, which ensure absolute efficacy and safety for the most demanding types of skin (baby's skin, hypersensitive skin, diseased skin and, in particular, atopy-prone skin), are currently the only cosmetics to guarantee:

• Preservative-free products containing only the absolutely essential active substances

• A unique manufacturing process developed by Pierre Fabre Laboratories: sterilizing formulas via infusion and packaging them in a sterile environment, according to current standards in the pharmaceuticals industry

• Sterility of the product throughout its use thanks to DEFI (Device for Exclusive Formula Integrity), a patented packaging system. DEFI makes it possible to maintain the sterility of the product, even after the tube has been opened, with no risk of bacterial contamination throughout use

Marketed from 2009 under the Eau thermale Avène brand (Tolérance Extrême range), Sterile Cosmetics are also available with the A-Derma and Ducray brands. They will be gradually extended to other Pierre Fabre Group products designed for the most demanding types of skin.

Sterile Cosmetics

FIND OUT MORE www.cosmetique-sterile.com

To enhance our offer of dermo-cosmetics products, our researchers are identifying new active ingredients of natural, biological or chemical origin and exploring the cutaneous and capillary mechanisms on a tissue, cellular and molecular scale. They are focusing on 7 lines of research and 6 areas of scientific expertise

Barrier function:Better understanding the biology of the epidermal barrier and identifying active ingredients that foster skin hydration, strengthening the barrier function, resistance to different types of stress or even cell repair.

Microbiota: By developing truly “microbiotic” dermo-cosmetics that promote and restore the diversity of microbial skin flora, researchers from Pierre Fabre Dermo-Cosmetics offer an innovative treatment with effective and well-tolerated care.

Inflammation (acne, atopic dermatitis and rosacea): Ascertaining the molecular mechanisms at play in the development of inflammatory skin reactions and developing new support strategies.

Formulations: Emulsions, foams, lotions, sticks, powders, soaps, oils, etc. Our raw materials are selected to combine effectiveness with comfort and to make our products a pleasure to use.

Hair biology: Studying the cellular and molecular mechanisms that contribute to regulating the hair cycle, seborrhea, hydration and scalp sensitivity, to improve the treatment of various types of hair loss and other disorders associated with the scalp.

Hydrotherapy dermatology: The treatment of patients affected by atopic dermatitis or psoriasis at the Avène hydrotherapy center has clearly demonstrated the therapeutic benefits of its thermal spa water. To better understand its composition and mechanisms of action, Pierre Fabre Laboratories has created the Water Laboratory.

Photoprotection: Studying combinations of filter systems meeting various criteria: chemical (broad absorption spectrum, water resistance, etc.), cosmetic (good sensory qualities), safety (local tolerance) and respect for the environment.

Biotechnologies: In the area of dermo-cosmetics, biotechnologies rely on extensive experience and expertise in developing high-tech pharmaceuticals processes: culture in bioreactors, production of active ingredients from plant cells or microorganisms.

Skin aging: Understanding the mechanisms involved in the skin aging process and offering new anti-aging active ingredients.

Pigmentation: Proposing new active ingredients to support the treatment of pigmentation disorders. 67

Slimming: Identifying pharmacological targets and active ingredients to increase the efficacy of slimming products. Our research focuses on chronobiology in particular.

Sterile Cosmetics: Disruptive technology that offers formulas containing only the essential active ingredients for the most sensitive skin types, with no preservatives. The guarantee of a safe and effective formula throughout the duration of use.

Cell and skin modeling: Pierre Fabre has a unit specializing in skin tissue engineering, which makes it possible to develop skin models from fibroblasts and keratinocytes. With a high predictive value for tolerance and efficacy of active ingredients, these models fall into a transversal assessment logic (from in vitro studies to clinical studies in humans).

INNOVATION IN DERMO-COSMETICS

LINES OF RESEARCH

AREAS OF SCIENTIFIC EXPERTISE

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We have always favored a partnership-based approach, convinced that synergy and sharing of expertise are business and innovation accelerators. 30 years after our first historic partnership agreement with the CNRS, we are continuing our collaboration with French public research bodies (Teaching Hospitals, INSERM, etc.), universities (École polytechnique de Lausanne, Université de Saclay, etc.), biotech companies (Array BioPharma, AbCheck, Cellectar, etc.) and international pharmaceuticals laboratories (Allergan, Abbvie, etc.). In 2015, we wanted to go further by launching two major open innovation initiatives.

NATURE OPEN LIBRARY: SHARING OUR PLANT HERITAGE AND EXPERTISE

For over 50 years, we have been managing the supply chain to develop and produce innovative active ingredients from plants for health care and dermo-cosmetics.

With the launch of Nature Open Library in 2015, we would like to share our expertise in the research, development and industrialization of plant-based active ingredients with private and public players heading innovative projects. This program notably results in providing a multi-disciplinary team of experts in the phyto-industrial value chain (botanists, agronomists, chemists, production engineers, specialists in regulatory affairs, legal experts, etc.) and the opening of our plant extract sample library. With over 15,000 listed samples, including some rare species, it is one of the largest private collections in the world. Since the launch, two partnerships have already been created in 2016: one with an international biotech company, in the treatment and prevention of obesity and diabetes and the other with a Toulouse-based biotech company specializing in infectiology.

PIERRE FABRE FUND FOR INNOVATION: SUPPORTING INNOVATIVE PROJECTS

Many ideas never come to fruition due to a lack of sufficient expertise to make the transition from the early discovery stage to clinical development. The provision of funds

alone does not guarantee the success of a promising drug project. For this reason, we are offering to support project leaders by providing them with our expert teams. Among the skills offered by Pierre Fabre are pharmacology, new chemical entities, biotherapies, immunotherapy, translational medicine, pre-clinical and clinical development, the manufacture of clinical batches, market access, etc.

With the Pierre Fabre Fund for Innovation initiative, we are enabling biotechs, start-ups and research laboratories (public and private) to speed up the clinical development of their molecules at the advanced stage of research or at the early stage of clinical development. Pierre Fabre Fund for Innovation is mainly for European innovators, and has already received over one hundred applications, which should result in several collaborative projects by the end of 2016.

FIND OUT MORE http://nature-open-library-pierre-fabre.force.com

FIND OUT MORE www.fund-for-innovation.pierre-fabre.com

ONCOLOGY Develop and commercialize two innovative molecules in immuno-oncology (melanoma and ovarian cancer).

ONCOLOGY Targeted delivery of Pierre Fabre cytotoxic agents using Cellectar technology (Phospholipid Drug Conjugate [PDC] platform).

ONCOLOGY Developing new medical and scientific partnerships and promoting new innovation opportunities in oncology.

ONCOLOGY Accelerating the industrialization of innovative research projects in the field of oncology.

ONCOLOGY Joining forces against cancer as a partner in UNICANCER R&D's ESME (Epidemio-Strategy-Medico-Economic) program.

ONCOLOGY Identifying new biological targets and developing innovative therapies in immuno-oncology.

ONCOLOGY Researching and optimizing human antibodies for the development of targeted therapies.

CENTRAL NERVOUSSYSTEM Studying the use of biosensor chips in the clinical development of new drugs.

CENTRAL NERVOUSSYSTEM Studying a molecule in the preclinical stage in the Central Nervous System field (option to license).

INTERNATIONAL INFECTIOLOGY License to register and distribute an antimalarial drug in 32 African countries.

CONSUMER HEALTH Deploy a range of immune boosters based on an original active ingredient for adults and children.

Discussing key issues, keeping up on best practices and developing innovative solutions.

UROLOGY-GYNECOLOGY Share experience and promote scientific information in urology and gynecology.

New partnershipsSHARING DEVELOPING AND INNOVATING TOGETHER

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Avène thermal spring water, alliance between rain and rock

FIND OUT MORE

to be researched, in particular phytochemistry, chemotaxonomy and epidemiology.

Our researchers are working on identifying molecules that are responsible for the activity of a plant, defining the extraction process guaranteeing a constant active-ingredient content and a method ensuring the reproducibility of this content in extracts produced on an industrial scale. In parallel, our agronomists are selecting the variety that is richest in active molecules, and defining the optimum cultivation and harvesting techniques.

SHARING AND PROMOTING KNOWLEDGEAdditionally, our subsidiary in Madagascar decided to create a 163-hectare nature reserve on its own land to protect and list the species endemic to South Madagascar. This reserve, named Sakara (from the name of the river flowing through our land) was established in collaboration with the Madagascar Ministry of Water Resources and Forestry and was granted a status recognized by order of the Directorate General for the Environment and Forests of Antananarivo. The partial inventory of flora at the reserve revealed 146 species, including 20 species protected by international legislation. This transition forest (between dry forest and rainforest) is primarily dominated by the species Operculicarya decaryi, Grewia sp., Rhigozum madagascariense, Commiphora sp., Aloe divaricata and Hazunta modesta. Other observations are due to take place at different times to better record the existing biodiversity.

www.eau-thermale-avene.comwww.avenecenter.com/en

15,000 PLANT SAMPLES the largest private collection in the world

3 to 5 NEW PLANT-BASED EXTRACTS developed every year

2 CENTURIES OF RECOGNITION FOR THE PROPERTIES of Avène thermal spring water

A source of inspiration, exploration and beauty, nature is at the heart of our

development model. Research into natural substances is a historic and original focus for

our Laboratories. For over half a century, we have been convinced that nature still holds undiscovered benefits for healing,

soothing and beautifying.

EXPLORING MARINE BIODIVERSITYIn order to increase our access to original natural molecules (particularly in infectiology, oncology and dermatology) while preserving marine biodiversity, in 2001, we created a mixed research team at the Oceanological Observatory at Banyuls-sur-Mer (Laboratoire Arago) in conjunction with the Pierre and Marie Curie University (Paris VI) and CNRS [National Center for Scientific Research]. This team specializing in microbial ecology is studying marine micro-organisms, a renewable source of original biological active ingredients and is contributing to a better characterization of this biodiversity, which still remains almost unknown.

Its collection of microorganisms is registered at the World Federation for Culture Collections and includes over 2,000 species. To enrich this

collection, the Oceanological Observatory takes part in oceanological campaigns on the different seas of the world, such as the campaign organized by the explorer Jean-Louis Étienne on Clipperton Island deep in the Pacific.

DISCOVERING THE BENEFITS OF PLANTSConvinced that the 250,000 flowering plants listed to date, and those that remain to be discovered, may hold health and beauty benefits, we have made research into plant-based substances a major focus of innovation. These scientific investigations are integrated into Botanical Expertise Pierre Fabre, a certified approach for the responsible development of innovative, safe and effective plant-based active ingredients. Numerous sciences and technologies are brought into play to identify plants that are

THE PROPERTIES OF AVÈNE THERMAL SPRING WATERAvène thermal spring water has been recognized for over two centuries for its soothing and anti-irritating properties. It is the essential active ingredient for a wide range of care products for the most sensitive, intolerant and allergic skin types. To deepen our knowledge of its composition and mechanisms of action, with the support of water experts, Pierre Fabre research teams are leading multi-disciplinary programs.

These have unlocked the secret of its unique mineral composition: an underground journey of over 50 years, which takes it to a depth of up to 1,500 meters, during which it takes in minerals and trace elements. Recently, our researchers also brought to light the biological characteristics of the spring water.

Avène thermal spring water owes its properties to its unique composition. Its therapeutic reputation has been recognized since 1736 and scientifically proven. Properties are harnessed by this precious, secret water, during the long journey it makes towards the spring.

First, there is rain. Rainwater falls over an area of around 20 km² called the impluvium, which collects the surface water and directs it towards the underground reservoir. The water gradually infiltrates a permeable rock, dolomite. It starts on a long, underground journey during which it collects minerals and trace elements. Gradually, during this descent, which is over 1,500 m deep, the water heats up, reaching 60 to 65°C. Via a natural phenomenon called thermosiphon, these hot masses are pushed to the surface and reach the spring via cracks in the rock.

Avène thermal spring water owes its properties to a dual heritage. On the one hand, it benefits from a unique, invariable composition of minerals - bicarbonate, calcium and magnesium - and trace elements. On the other hand, its mineral content is low, balanced and most of all perfectly constant. Why? It remains underground for over fifty years.

Text taken from the site Naturellement Mieux, co-developed by Pierre Fabre and Le Figaro (http://naturellementmieux.lefigaro.fr)

INSPIRATION EXPLORING THE BEST OF NATURE

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ISO 9001 FOR ALL OF OUR industrial sites dedicated to dermo-cosmetics and Château-Renard

ISO 14001 FOR ALL OF OUR sites dedicated to chemistry and our Soual production unit for dermo-cosmetics

We have chosen to internalize the design and manufacture of most of our products, from research to distribution, to guarantee quality by controlling the entire logistics chain. Our manufacturing applies innovative processes, based on a progress

initiative, which constantly raises the standards and the overall level of quality.

Sterile Cosmetics and Dermo-Cosmetics

The Soual site (Tarn), supported by the neighboring workshop of Mazamet, manufactures and packages dermo-cosmetics products (creams, liquids, milks, lotions, soaps, sticks, etc.). The Avène industrial site (Hérault) manufactures and packages Eau thermale Avène branded products from the spring water drawn nearby at the Sainte-Odile source. Further to the significant investments made between 2011 and 2013, the two plants are producing Sterile Cosmetics products in a sterile environment. In 2015, the Avène production unit gained FDA approval to import OTC products to the USA. The Aréal site in Brazil, associated with the purchase of Darrow in 2006, is being converted into a dermo-cosmetics product manufacturing unit for the Brazilian market.

The Château-Renard conversion is almost complete and the site will be fully dedicated to dermo-cosmetics operations in-mid 2016. Soual obtained ISO 14001 certification in late 2015.

Active ingredients

In its Gaillac (Tarn), Virrey del Pino (Argentina) and Palézieux (Switzerland) plants, Pierre Fabre produces active ingredients of plant, biological or synthetic origin for the pharmaceuticals, cosmetics and nutraceutical sectors. The Group has cutting-edge industrial expertise in fields such as extraction, hemisynthesis, chemical synthesis, plant cell cultivation and supercritical fluids. Tests are meticulously performed at every stage in the development and manufacture of active ingredients.

SPECIFIC KNOW-HOW

Cytotoxic molecules and production in aseptic conditions

Specialized in aseptic filling using isolator technology to manufacture cytotoxic molecules, the Pau plant (Pyrénées-Atlantiques) was the first French pharmaceuticals site to gain approval from the American Food and Drug Administration (FDA) in 1993.

Hard-boiled pharmaceuticals lozenges

The production of hard-boiled lozenges for pharmaceuticals products is the core business for the Aignan site (Gers). It uses innovative, constant flow production technology, with many benefits for our European and American partners.

Pharmaceuticals in dry, paste and liquid forms

Constructed in 1963 by Rhône Poulenc, the Gien site (Loiret) was integrated with Pierre Fabre Laboratories in 1993. Today it is the Group's largest pharmaceuticals production site. It manufactures and packages pharmaceuticals and cosmetics products and medical devices in dry forms (such as capsules, tablets and sachets), or as pastes and liquids.

Paste forms and toothpastes

The Gien site also produces toothpastes to pharmaceuticals standards. A new workshop was built to accommodate this production, transferred from the Château-Renard site. The Elgydium toothpaste and mouthwash range obtained the French Origin Guaranteed label in February 2016.

FIND OUT MOREwww.pierre-fabre.com/en/CDMO

CONTRACT DEVELOPMENT AND MANUFACTURING ORGANIZATION (CDMO)

A COMPLETE RANGE OF SERVICES ON BEHALF OF THIRD PARTIESFor over 20 years, Pierre Fabre CDMO (Contract Development

and Manufacturing Organization) has been providing a wide range of services and offering its international partners innovative

solutions for their projects. Our CDMO model offers the highest level of quality at each stage of the process. Our industrial and

technological know-how means we can propose a comprehensive or customized offer, from supplying components to delivering to customers, for pharmaceuticals and cosmetics products, dietary

supplements and medical devices. Our industrial teams are able to help development teams from the design stage. This collaboration,

which takes place in the very early stages of the product and procedure industrialization process, makes it faster to register and

launch new products.

Injectable products, for conventional cytotoxic agents and products from biotechnology

Our main business is manufacturing large batches of injectable products at our site in Pau, which is globally recognized for its expertise. This production site is organized around 9 independent workshops, specialized in the aseptic filling of cytotoxic and biotechnological cancer drugs using isolators. These are inserted into pre-filled syringes and bottles in the form of liquids and lyophilisates.

Lozenges in a pharmaceuticals environment

Our Aignan production unit offers a competitive service in the manufacture of lozenges used in consumer health care to treat sore throats, smoking cessation and other pharmaceuticals applications. A very wide variety of products can be produced, taking the various formulations and technologies offered into account.

Tablets, liquids and creams

These products are produced in their different forms at our plants in Gien (Loiret) and Ho Chi Minh City (Vietnam). Production and packaging are very closely linked in these plants too.

Active ingredients, in particular natural active ingredients

Based in Gaillac, our unit dedicated to active ingredients offers high-tech know-how in the areas of extraction, purification and synthesis. Another site in Bagnères-de-Bigorre is specialized in the manufacture of floral waters. Two other plants, one in Virrey del Pino (Argentina) and the other in Palézieux (Switzerland) have specific experience in animal extraction. These production sites operate in line with current best industrial practices.

RIGOR MANUFACTURING IN COMPLIANCE WITH THE STRICTEST STANDARDS

4SPECIALIZED BUSINESS

AREAS

CDMO

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The Pierre Fabre Group is committed to improving the treatment, health and

well-being of patients and consumers.To carry out this mission, we form

partnerships based on trust all over the world and at home with health care

professionals who are in the best position to prescribe or recommend the Group's

products. They know their patients' needs and can provide them with the information required for the correct use of our products

better than anyone else.

Of course, we apply this vision to pharmaceuticals but we also apply it to dermo-cosmetics products, which we feel, in certain cases, should be recommended by a dermatologist and systematically prescribed by qualified individuals or people trained to give suitable advice.

TRAINING AND INFORMATIONAll health care professionals, in particular doctors and pharmacists, are involved in our research and receive regular information on our proprietary products.

We provide them with training tools and information in order to support them in their task of diagnosis, advice and therapeutic education. The Foundation for Atopic Dermatitis, as well as Club dermaweb and Club pharmaweb, are three significant examples of this.

SUPPORT AT THE HEART OF THE MODELWhatever the extent of the disease or discomfort from which the patient or consumer is suffering, we consider it a health risk. Based on that principle, our vision is that everyone should benefit from advice and monitoring, where appropriate, by a health care professional: doctor, pharmacist, dental surgeon, midwife, podiatrist, nurse, etc. We believe that only health care professionals are in a position to identify the most suitable solution with patients for their pathology or needs.

Attentiveness, discussion, advice and provision of specific and suitable solutions

PATIENT CONSUMER

PRESCRIPTION BY A HEALTH CARE PROFESSIONAL(general practitioners or specialists)

ADVICE AT THE POINT OF SALE(pharmacists, pharmaceuticals teams or

trained consultants)DEVELOPING SOLUTIONS FROM HEALTH TO BEAUTY(Pierre Fabre)

Aromatherapy in hospitals

In France, aromatherapy is a developing practice in hospitals. It is now included in clinical protocols supporting patient care. Our brand Naturactive wanted to support certain initiatives: . The Eugène Marquis Center for the Fight

Against Cancer in Rennes to assess the impact of massage with essential oils on the consumption of anxiolytics.

. The La Rochelle-Ré-Aunis Hospital Center on the impact of diffusing essential oils in rooms and aromatic massage for the comfort of cancer patients.

The hospital teams will each establish suitable aromatherapy treatment protocols, a complementary approach that helps improve the treatment of hospitalized patients. For Naturactive, these partnerships benefit from financial support corresponding to the studies carried out. A call for projects was just launched at the national level to hospital pharmacists in order to select new programs.

ATTENTIVENESS PROVIDING SUPPORT, FROM PRESCRIPTION TO ADVICE

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In line with their mission, caring for the human being as a whole, Pierre Fabre Laboratories is encouraging and supporting the prescription of physical activity as a treatment in its own right. This is because physical activity, when adapted to the illness, physical capabilities and medical risk of the patient, is a recognized and scientifically-approved non-medication therapy, which can be accessed by all, in addition to traditional treatments. However, the prescription of APA remains very low and faces various obstacles.

To encourage the development of this type of medical prescription and the practice of physical activity adapted to health, since July 2013, the Pierre Fabre Group has notably created a partnership with the French “Sports pour Tous” (Sport for all) federation.

This federation, represented throughout France, has developed and provided programs adapted to sedentary people or people with chronic illnesses. As part of this partnership, Pierre Fabre has taken various types of action to support health care professionals prescribe APA, notably:

• distribution of addresses of clubs affiliated with the “Sports pour Tous” federation • free "discovery" sessions in one of these clubs • creation of patient physical-activity assessment forms for doctors to help provide long-term exercise

support

At the same time, Pierre Fabre is raising awareness among health care professionals on prescribing APA at our stands or during symposiums.

This innovative, pioneering approach is extremely relevant today, with both the French National Health Authority and the World Health Organization supporting the practice of an adapted physical activity.

Adapted Physical Activity (APA)

The comprehensive treatment of patients also requires educational and

preventive measures.In order to do this, we are developing

programs that support the work of health care professionals. Our goal: to ensure that the health of patients suffering from severe

or chronic pathologies is not worsened, and to help healthy individuals stay

in good health.

SMOKING CESSATIONCommitted to smoking cessation for over 20 years, Pierre Fabre Health Care is involved in public health actions that target the general public and health care professionals

• Taking part in the World No Tobacco Day, via awareness-raising operations on stopping smoking, led in both French hospitals and pharmacies, for patients, hospital staff and pharmacy personnel

• Observational study in pharmacies over more than a year, aiming to assess the effectiveness of individual meetings on smoking cessation in pharmacies, and encourage the treatment of tobacco addiction in pharmacies

• Performing a STOP study over one year in pharmacies in South-West France, with the objective of assessing the effectiveness of individual interviews in pharmacies on stopping smoking

• Organizing conferences on the subject of "women smoking" to encourage interdisciplinary discussions on the dangers and general management of smoking amongst women

• Providing tools (tests, brochures, CO analyzers) to help health care professionals raise awareness on smoking cessation amongst the general public

PREVENTING SKIN CANCERThe Eau thermale Avène brand is involved in numerous actions worldwide:

• Supporting the Day for Preventing and Screening Skin Cancers in France, Spain and Mexico

• In partnership with the European Skin Cancer Foundation, a foundation which aims to improve knowledge on skin cancers and to support research projects in this therapeutic field

• Creating websites dedicated to sun protection in Italy and Spain: www.benvenutosole.it and www.saludysol.es

• Production of a public-domain documentary, in Spain, on the public interest of sun protection to prevent skin cancer "la Memoria a flor de piel" available on YouTube

• Educating children about sun protection, particularly in Turkey, using fun and educational materials

PREVENTION IN ORAL CAREBased on our unique experience in oral care, Pierre Fabre Oral Care is getting involved in awareness-raising and prevention actions. The objective is to raise awareness among the general public, and children in particular, on the rules of good oral hygiene and the importance of regular dental check-ups.

• In France, educational tools and applications are being developed to motivate children to brush their teeth and support is provided to numerous charities offering dental care to the poorest people.

• Creation of the "Oral Care Coach" and "Oral Care Kids" mobile apps in Switzerland

• Play written in Portugal and Bulgaria that is performed in schools and libraries to raise awareness about the importance of good oral care

• Participation in the national program in Singapore to raise awareness on oral hygiene for children under the age of 7, providing toothbrushes and toothpastes to all children in nursery school

PREVENTION ADDRESSING PUBLIC HEALTH CHALLENGES

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Club dermaweb & Club pharmaweb

Focus on Skin Drug Reactions Base This mobile application enables doctors and pharmacists that are Club dermaweb members to easily find out about the skin reactions attributed to a drug. They can either search by drug (and find the list of reactions) or by skin reaction (and find the list of medications that can cause it). 1,500 drugs associated with over 3,000 skin reactions are listed.

Club dermaweb, dermatology website for doctorsClub dermaweb is a unique site for

dermatology training and information for doctors. It offers medical content written up by experts, approved by a scientific committee and updated weekly. Club dermaweb has been awarded numerous prizes and recommended by international scholarly societies. Available in five languages (French, English, Spanish, Portuguese and Chinese), it has over 23,000 registered members in over 150 countries, including approximately 74% dermatologists.

Club pharmaweb, dermatology website for pharmacistsClub pharmaweb supports pharmacists

in giving dermatology advice. It offers comprehensive scientific content on dermatological conditions. The content is approved by a scientific committee and is regularly updated. The site offers free access for pharmacists and pharmaceuticals personnel. It has almost 11,000 registered members in over 20 countries.

INNOVATION

ONCO-DERMATOLOGY

A PUBLIC HEALTH ISSUESkin cancer rates have risen steadily for 30 years. This has become a real public health issue, both in terms of prevention and therapy. We estimate that one in six people will develop a skin cancer in the future. The development of new treatments for managing these cancers, especially melanoma, which is the most dangerous form, has become a public health priority. With our proven expertise in both oncology and dermatology, onco-dermatology has become a natural, vital area for our research.

3 RESEARCH CENTERS• Pierre Fabre Research and Development Center

(Oncopole, Toulouse)• Pierre Fabre Dermo-Cosmetics Research Center

(Vigoulet)• Skin Research Center (Hôtel-Dieu, Toulouse)

FIND OUT MOREwww.clubdermaweb.com/front/enwww.clubpharmaweb.com/front/en

SHARING

INFANTILE HEMANGIOMA

A SUCCESSFUL PUBLIC-PRIVATE PARTNERSHIP Infantile hemangioma, which affects 10% of infants, is a benign tumor that appears in the first weeks of life. It can have major functional and aesthetic consequences. In 2007, the Bordeaux teaching hospital discovered the efficacy of a molecule usually used in cardiology in the treatment of this illness. The hospital teams contacted Pierre Fabre Dermatologie for the pharmaceutical, toxicological and clinical development of this drug in its new pediatric dermatology indication. Seven years after the start of this collaboration, in March and April 2014, the drug obtained two market authorizations, one for the USA and the other for the whole of the European Union.

THERAPEUTIC EDUCATION

A FOUNDATION DEDICATED TO ATOPIC DERMATITISCreated in 2004 by Pierre Fabre Dermo-Cosmetics, the Foundation for Atopic Dermatitis helps fund research and clinical studies on atopic dermatitis. For over 10 years, the Foundation has been helping to treat patients by developing centers in France and abroad and funding clinical studies. It has helped create and develop 56 Atopy Schools in Europe, China, Colombia and Mexico to develop therapeutic education. In addition, it develops and organizes educational initiatives and creates, produces and distributes information materials intended for practitioners, parents and children.

In dermatology and dermo-pediatrics we are innovating to provide patients, dermatologists, general practitioners and pharmacists with new treatments and specific educational and training tools.

• Provision of a portfolio of products covering the main dermatological conditions such as acne, fungal infections, psoriasis, atopic dermatitis and alopecia.

• Development and marketing of a major therapeutic treatment in infantile hemangioma.

• Creation and management of Club dermaweb and Club pharmaweb, 2 free websites for dermatologists, pharmacists and dispensary staff, for training and information on dermatology.

• Creation of a corporate foundation fully dedicated to the fight against eczema: the Foundation for Atopic Dermatitis

SUPPORT & PREVENTION

INNOVATION

DERMO-COSMETICS

SKIN EXPERTISEAs the inventors of dermo-cosmetics, we offer innovative skin care and hair care solutions following a sacrosanct principle: making beauty ethical. Our dermo-cosmetics researchers have developed undeniable expertise in the interlinked areas of dermatology and cosmetology. In close collaboration with the best international specialists, they conduct various clinical studies, thus helping develop new dermo-cosmetics concepts and building on knowledge of the skin. Our dermo-cosmetics care products are recommended by health care professionals, and administered by staff trained in our ethical approach to beauty, thus guaranteeing individually tailored solutions.

FIND OUT MOREwww.fondation-dermatite-atopique.org/en

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AT THE HEART OF dermatology

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MR. PIERRE FABRE DECEMBER 2009

RESPONSIBILITY & CITIZENSHIP

PEOPLE l 60

REGIONS l 64

AT THE HEART OF MADAGASCAR l 66

NATURE l 68

ENVIRONMENT l 70

AT THE HEART OF BOTANICAL EXPERTISE PIERRE FABRE l 72

BEING CURIOUS ABOUT THE WORLD AROUND US

THE SAME ADVENTURE WHICH ALLOWS US TO SHARE STRONG VALUES

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The values at the heart of corporate culture

The Pierre Fabre culture is built on 9 strong values shared by all members of the company. These values, directly inherited from the humanist and entrepreneurial spirit of our founder, shine through on a daily basis in our collective practices and our individual actions.

We promote these values among new employees and in all regions where the company operates, particularly through the training program "Culture & Avenir" [Culture & Future]. Combined with our business model, our values make work meaningful, and make Pierre Fabre Laboratories an employer of choice.

FIND OUT MORE www.pierre-fabre.com/en/human-resources

OHSAS 18001 CERTIFIED SITESWe have chosen to obtain certification according to the OHSAS 18001 standard for our 2 main production sites for active ingredients, in Gaillac (Tarn) and in Virrey del Pino in Argentina, as well as at our Skin Research Center at Hôtel-Dieu (Toulouse), where we carry out clinical studies.

This occupational health and safety management system helps to ensure a structured approach, focused on the principle of continuous improvement, and demonstrates our commitment to sites presenting significant potential risks or risks concerning voluntary participants in our clinical studies.

Our Human Resources policy is rooted in the unfailing drive of Pierre Fabre to

combine the company's economic project with a social one. This policy supports the

business as it evolves, and its international development in particular, and allows

employees, our company's most valuable asset, to grow.

CREATING DEVELOPMENT OPPORTUNITIES FOR OUR EMPLOYEESThe pharmaceuticals and cosmetics industry is experiencing increasingly rapid economic, regulatory and technological changes that affect our organization and activities.

Jobs and skills planning system: to support these changes and because we are convinced that our employees are the driving force behind our performance, a new jobs and skills planning system agreement was signed with social partners in France in 2013. Its objectives are to provide support as jobs and job scopes change, taking into account those which are to be created, changed or eliminated; to adapt and strengthen employee skills, particularly through training; to promote internal mobility through specific measures and to support employees in their career development process.

This dynamic approach has also been implemented abroad, through management of staffing and skills requirements in our subsidiaries, and anticipation of economic and regulatory conditions by area.

7.8% OF THE COMPANY'S SHARE CAPITAL is held by employees

6.7% OF WORKERS WITH DISABILITIES in France

92.6% OF EMPLOYEES ARE SHAREHOLDERS in the 7 countries concerned by the plan

Training: in order to help employees enhance their command of their position and to develop skills that are essential for the future, the company has its own corporate university, in addition to a range of training options available. This university receives over 1,000 Group employees a year.

SUPPORTING INTERNATIONAL DEVELOPMENTTo support our international development challenges, we have reorganized our HR teams both at the head office and locally, creating dedicated teams in our main subsidiaries: there are currently 16 "country" human resources managers. This HR segmentation has been built and driven around a common mission: to establish and sustain the Pierre Fabre model in each country where we are developing, in line with specific local conditions, and to identify and lead a pool of international talent.

Remuneration and "Benefits & Compensation" policy: to support international development, we make sure that we are familiar with the local employ-ment markets and that we put in place a competi-tive pay policy that is suited to the different types of mobility and the constraints of the countries in which we operate.

OFFERING A SAFE AND SOUND WORKING ENVIRONMENTOur company's mission, "caring for the human being as a whole," makes the health and safety of our employees our highest concern.

In order to do this, we take measures to reduce and prevent risks, especially chemical, mechanical and psychosocial risks linked to noise, the ergonomics of workstations and road risks.

We also ensure that adequate safety measures have been put in place for employees traveling abroad.

PEOPLE PROVIDING MEANING TO WORK

COHESION

PHARMACEUTICALS PRECISION

INDEPENDENCE

A HUMANIST APPROACH

INNOVATION

ENVIRONMENTAL FRIENDLINESS

ATTENTIVENESS IN THE FIELD

ENTHUSIASTIC ENTREPRENEURSHIP

PERFORMANCE RECOGNITION

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150 YOUNG PEOPLE in work/study training programs

169,396 HOURS OF TRAINING given

5,332 EMPLOYEES benefited from training

Happy Trainees

84% of students in work/study training programs or internships with Pierre Fabre recommend the companyDuring the last "Happy Trainees" survey conducted by an independent website, meilleures-entreprise.com, students taking part in internships and work/study training programs with Pierre Fabre were questioned on the benefits of their assignments and the quality of welcome and support in the company. The figures prove our commitment to the development of our interns: they ranked us 19th out of 90 certified companies and 84% recommend us as a "company of choice" for internships.

AN ACTIVE INTERNATIONAL ACADEMIC PARTNERSHIP POLICYFor many years now, Pierre Fabre Laboratories has been implementing an active policy promoting relations with schools and universities in our home region and we are currently developing these relations throughout the world. Due to the diversity of our activities and the wealth of our business areas, we are taking action at all training levels, from high schools to universities and presti-gious graduate schools.The interlinked collaboration between Pierre Fabre Laboratories and the schools and universities can take several forms:• Regularly taking part in recruitment drives and

selection panels• Participating in events on campuses to present

the company and its business areas• Involving company managers in teaching, at con-

ferences or round-tables.• Helping create degree programs• Creating teaching chairs• Funding student scholarships• Welcoming young students during internships or

work/study training programs• Conducting company projects and site visits

PROGRAMS OF EXCELLENCE FOR YOUNG GRADUATES, SPRINGBOARD FOR AN INTERNATIONAL CAREERTo attract young talent, Pierre Fabre Laboratories is offering a range of programs and measures with an international dimension.

Excellence Marketing programIn partnership with the Toulouse Business School, this program, leading to a diploma, is designed to train Product Managers with high international potential. These young graduates then join the company, often through positions under the Volunteer for International Experience program. We have also opened up this excellence in marketing program to talent coming from our international subsidiaries to help their integration and quick immersion into the culture and methods of the Group.

VIE (Volunteer for International Experience)Each year, more than forty young graduates join Pierre Fabre Laboratories for a 12-24 month assignment to be trained in various positions such as product manager, management controller, logistics project manager, etc. The VIE program is a real opening to the international arena, and provides the opportunity to reveal the potential of young graduates hoping for an international career.

A COMMITMENT TO ACADEMIC RESEARCH ON OUR CORE BUSINESS The "Agile Supply Chain" chair at the École des Mines d’Albi: in April 2016, Pierre Fabre Laboratories and the École des Mines d’Albi created a corporate chair on agility in supply chains. This chair gives our managers the opportunity to develop their skills through specific exchanges and training programs. This chair is both the result of over 15 years of collaboration between the school and the company and the creation of dynamic cooperation, which is a vector for future innovation in an area of excellence for both partners. Aiming to accelerate the dynamics between the industrial and academic worlds, the chair aims to encourage engineers and PhD students to carry out applied research, notably on real Pierre Fabre Group situations, to ultimately develop new concepts and tools that may improve the agility of our supply chain.

Pierre Fabre International Graduate ProgramTo offer high-potential young talent an innovative, appealing career, Pierre Fabre Laboratories launched their first International Graduate Program in 2015. This program is a real pathway to excellence and a career booster, and aims to offer unique international experience to our future managers.This program offers an 18-24 month assignment immersion course in various company departments, alternating between France and abroad, with operational assignments and strategic project management. The aim is to understand the Group's culture and operations before joining a subsidiary at the end of the program.

IN 2015

FIND OUT MORE www.pierre-fabre.com/en/human-resources/students-and-young-graduates

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OUR SOURCING CHANNELSA FAIR TRADE, SUPPORTIVE AND ACCOUNTABLE APPROACH

Sponsorship: we support several foundations ("Dépêche du Midi" [regional newspaper], "Cordées de la réussite" [Roped together for success], "Un avenir ensemble" [A future together]). These three organizations mainly support sponsorship projects to support young people from modest backgrounds in their educational and professional careers.

CULTURE AND HERITAGESupporting several museums (the Goya Museum, the Toulouse-Lautrec Museum and the Dom Robert Museum) and the Abbey School of Sorèze (educa-tional and cultural space, where Pierre Fabre has set up the Pierre Fabre University).

SPORTWe support various athletic associations in the Tarn and we are the main partner of Castres Olympique, a French rugby team playing in the national league.

No.1 EMPLOYER IN THE TARN

1 of the 5 LEADING PRIVATE SECTOR EMPLOYERS in the Midi-Pyrénées region

400 MILLION EUROS INVESTED in greater southwestern France since 2010

70% OF OUR PURCHASES come from French companies

It is a shared story, a story of places and people, but also a way of claiming our

identity and taking pride in our differences: the Pierre Fabre Group has always shown

willingness to share our developments with the regions in which we operate and, more

specifically, our native land.

TARN & MIDI-PYRÉNÉES, OUR NATIVE LANDSOur company wishes to contribute to impacting the regions where we operate and share its development with the local communities. We support various projects, particularly in the Midi-Pyrénées region.

ECONOMYTarn Entreprendre: association for helping new companies, created in 1997 at the initiative of Pierre Fabre.Installation of a high-speed network for southern Tarn: The Group is the founding shareholder of the mixed economy company, Intermédiasud.Cancer-Bio-Health competitiveness cluster in ToulouseSupporting the Tarn economy by encouraging our suppliers and partners to operate in our home region.

EDUCATIONPartnerships with the education system: regional schools and universities to develop training programs, contribute to land-use planning and encourage the professional integration of young people.

FIND OUT MORE www.pierre-fabre.com/en/people-and-territories

ETHICAL SHEA BUTTER FROM BURKINA FASO - RENÉ FURTERERFounded in 2004, SOTOKACC, a small business based in Toussiana (Burkina Faso), through which our René Furterer brand obtains its shea butter, provides not only regular income and social autonomy for its 16 female employees, but also for over 200 women who produce and harvest the nuts.Our supply contract with this small business is set for 5 years, with a pre-financed 100% Shea butter order.In 2015, the René Furterer brand funded a socio-economic impact study by the firm UTOPIES. The aim was to assess the impact of René Furterer procuring shea butter on the number of direct, indirect and spin-off jobs created in Burkina Faso. The total ethical shea butter production activities of SOTOKACC in 2014 sustained 192 jobs in Burkina Faso.This supplier is fair trade-certified.

MORINGA FROM MADAGASCAR - RENÉ FURTERERRené Furterer is working on several major projects in Madagascar. Firstly, economic and ecological missions, by providing technical support for farmers: improving yields, teaching good farming practices, crop diversification, etc. Another of René Furterer's core missions will focus on fighting malnutrition: farmers are educated on the benefits of growing fruit trees and Moringa oleifera and using its leaves as vege-tables, rich in vitamins and minerals. The Moringa chain used by René Furterer is managed by our Madagascar subsidiary, labeled a "responsible company" according to Ecocert's ESR standard.

THE DESERT DATE PALM FROM SENEGAL - KLORANEThe Baobab des saveurs company in Thiès, Senegal provides us with dates from the desert date palm. In order to harvest the dates, this company works with two Economic Interest Groups (EIGs) in the Mboumba and Galoya regions of northern Senegal. These two EIGs include around 100 women who pick the dates over a farmed area of almost 100 hectares, which is certified organic. The Klorane Institute, a Corporate Foundation, supports the Great Green Wall program, which aims to slow down desertification in the Sahel by planting desert date trees (60,000 planted in Senegal over 6 years).This supplier is fair trade-certified.

REGIONSCONTRIBUTING TO THE ECONOMIC AND SOCIAL DEVELOPMENT OF OUR REGIONS

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We are helping fight against malnutrition affecting children in Madagascar, by paying 5% of our sales from the Centella asiatica leaf to the National Office for Nutrition, so they can develop social projects. In addition, the Pierre Fabre Foundation contributed to renovating the Ranopiso maternity based on a proposal from our subsidiary.

Our 200 hectares of farmland and the Ranopiso Arboretum have Ecocert organic farming certification*. We also decided to create a 163-hectare nature reserve on our land to protect and list the species endemic to South Madagascar.

Its contribution to the national reforestation operation, "one child = one tree planted" as well as the employees planting 15,000 trees to make up for the carbon footprint generated by manufacturing our cancer drugs (made using tropical periwinkle, mainly grown in Madagascar), earned the subsidiary the Ecocert* "Reforestation and Solidarity" label.

Innovation & Health/BeautyKnowledge & Nature Conservation

Ecodesign & Industrial Footprint

2 4

5An independent firm, Utopies, assessed the socio-economic impact of our subsidiary. The results show a significant effect on local employment with over 1,000 jobs supported. One job created by our subsidiary generates 27 additional jobs on the island.

People & Regions

3

Actions taken by our subsidiary in Madagascar for over 40 years demonstrate the Group’s overall approach to social responsibility.

Looking back on actions taken via the 5 pillars of our CSR approach.

Our subsidiary was labeled a "responsible company" according to Ecocert's ESR (Fairness, Solidarity and Responsibility) standard*.

Governance & Ethics

1

*Ecocert: Independent inspection and certification organization

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AT THE HEART OF MADAGASCAR

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350 PROTECTED SPECIES at the Ranopiso Arboretum in Madagascar

over 500 VISITORS AND HEALTH CARE PROFESSIONALS welcomed each year at the Water Laboratory

SHARING KNOWLEDGEIn order to preserve and use nature's treasures sustainably, it is first of all crucial to have good knowledge of them. Pierre Fabre Laboratories is convinced of this, so our researchers and experts are behind various initiatives for developing and sharing knowledge about plants and spring waters, particularly through exchanges with expert scientific institutions and local associations. The company has also created structures dedicated to developing knowledge on natural substances:

the Water Laboratory and the Pierre Fabre Botanical Conservatory.At the foot of the Cévennes, the Water Laboratory was created to protect and better understand the therapeutic value of Avène thermal spring water. This experimentation site shares its knowledge and discoveries on Avène water and its soothing, anti-irritating and healing properties, and more widely on water, particularly through communications intended for scientists or the general public.

Because biodiversity plays a crucial role in maintaining natural balances and provides many services to humanity, particularly in

the fields of health and beauty, its preservation is a major concern

for our Group.

In Soual in the Tarn region, we created the Pierre Fabre Botanical Conservatory in 2001, dedicated to research, protection and conservation. Nearly 1,200 plant species are represented, of which 40% are protected. In 2010, it became the 4th largest French scientific institution and the 1st private French organization to obtain approval from CITES*. In 2012, its herbarium received international recognition from the New York Botanical Garden.

THE KLORANE INSTITUTECORPORATE FOUNDATION FOR THE PROTECTION AND PROMOTION OF OUR NATURAL PLANT HERITAGEFor 22 years, the Klorane Institute has been unwaveringly passing on its botanical passion, based on 3 missions:

• PROTECTING endangered plant species in the world. In particular, The Klorane Institute supports the Great Green Wall project, which aims to slow down desertification in the Sahel by planting desert date trees (a total of 60,000 planted in Senegal). This program was selected by UNESCO as an emblematic example of education in sustainable development and renewed until 2017.

• EXPLORING plant engineering by supporting promising projects and collaborating with our network of botanical gardens. The Klorane Institute is a partner in a major project on resurrecting extinct species from ancient seeds. We support a project for the conservation of native medicinal species in Argentina, in conjunction with BGCI (Botanic Gardens Conservation International) and the Carlos Thays Botanical Garden in Buenos Aires.

• EDUCATING by passing on botanical knowledge:- to children: "Graine de Botaniste" (budding botanist) pack for

schools;- to families: mobile apps (Digital Herbarium and KI-Botanic);- to students: "Botany for Change" award to return botany to the

center of our lives and cities.

Over 100,000 trees planted since 2007MOROCCO

4,000

ARGANTREES

In 2008

In partnership with the Mohammed VI Foundation, 13 hectares have been planted at the edge of the desert in Essaouira. Today they are maintained by the Directorate for water and forests.

SENEGAL

60,000

DESERTDATE TREES

Since 2012

Trees against the desert

These plantations created as part of the Great Green Wall project aim to fight against the desertification of the Sahel and the consequences on its inhabitants.

MADAGASCAR

60,000

MORINGASBAOBABS

Since 2014

This project, labeled "Reforestation and Solidarity" by Ecocert, helps towards the national fight against deforestation and improving food security by planting fruit trees.

FRANCE

2 Km

HEDGEROWS

Since 2014

Committed to the Carbone Local program and thanks to hedgerows, our A-DERMA brand is gradually offsetting the equivalent of 120 tons of CO2 per year, i.e. the annual manufacture and marketing of the Exomega range.

MALI

2,286Since 2013

ACACIAS

By taking part in the Zanbal acacia-planting project, our Ducray brand offsets 100% of its greenhouse gas emissions associated with the manufacture of its “Extra Doux” (Extra Gentle) shampoo.

GREECE

10,000

OLIVE TREES

In 2007

Further to the devastating fires in the Peloponnese, the Klorane Institute took the initiative to rescue the region by planting 10,000 olive trees. Since, these trees have flourished and are generating lots of activity, to the great joy of the inhabitants.

FIND OUT MORE www.institut-klorane.org

NATURE PRESERVING BIODIVERSITY AND SHARING OUR KNOWLEDGE

* Convention on International Trade in Endangered Species of Wild Fauna and Flora

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ENVIRONMENTAL MANAGEMENTOur environmental strategy rests on two issues: saving resources and limiting discharges (water, air, waste) from design to the end of the product's life cycle. This strategy is integrated into a global management system dedicated to health, safety and the environment. To determine suitable environmental action plans, we use assessment tools such as carbon analysis, analysis of product life cycles and energy diagnostics.

HIGH ENVIRONMENTAL QUALITY®

The "High Environmental Quality®" (HQE®) approach is based on reducing a building's impact on the environment and optimizing the living environment for the comfort and health of users. An operations management system (quality system) and 14 targets are therefore used to determine the Environmental Quality of a building (e.g.: energy management, acoustic comfort, etc.).

THE CIRCULAR ECONOMYThe Pierre Fabre Dermo-Cosmetics plant in Soual (Tarn) is now equipped with a biomass boiler, destined to annually recycle 1,000 tons of plant residue from the extraction of two medicinal plants - tropical periwinkle and dwarf palm from Florida - and Rhealba® Oat, used by the A-Derma dermo-cosmetics brand. This residue is produced in Gaillac (Tarn) around 50 km from Soual, by the Pierre Fabre Pharmaceuticals plant, which specializes in the extraction of natural pharmaceuticals and dermo-cosmetics active ingredients from plants. The residue, combined with woodchips, waste

Aware of the environmental footprint related to our economic and industrial

activity, the company has implemented measures, throughout the entire logistics

chain, from purchasing raw materials to the distribution of products, in order to reduce

pollution and preserve resources.

20,000 m2 OF INDUSTRIAL BUILDINGS integrated into the High Environmental Quality® experiment

200 HECTARES CULTIVATED IN THE TARN in accordance with organic farming standards, certified High Environmental Value

12 GREEN CHEMISTRY PRINCIPLES systematically applied when developing new processes at the Gaillac plant

The company is performing experimental HQE® operations for its three latest industrial investments: extension of the dermo-cosmetics plant in Soual (Tarn), extension of the Avène plant (Hérault) and construction of the antibody biotechnology unit in Saint-Julien-en-Genevois (Haute-Savoie).

ISO 14001 CERTIFICATION PROCESSThe ISO 14001 certification process is an environmental management system. It is being rolled out at the active ingredient production sites in Gaillac (Tarn), Palézieux (Switzerland) and Virrey del Pino (Argentina) as well as at the pharmaceuticals production site in Pau (Pyrénées-Atlantiques) and the dermo-cosmetics production site in Soual (Tarn). It is used to guarantee a structured approach, based on the principle of continuous improvement.To date, 100% of our chemical activities are covered, as well as both of the Group's largest industrial FIND OUT MORE

www.pierre-fabre.com/en/sustainable-development

sites. Our ambition is to continue to develop this certification at other Group industrial sites.

ECODESIGN IN PRACTICEThroughout the life cycle of Pierre Fabre products, from the purchase of raw materials and production to being placed on the market and their use, the Group ensures that our actions fit in with respect for our suppliers and reduce our impact on the environment.

To do so, the Group conducts ecodesign projects aiming to reduce the environmental footprint of our products compared to previous products or other offers on the market.

Bio

EXTRACTION PLANT IN GAILLAC

BIOMASS BOILER IN SOUAL

ashes

PRODUCTION PLANT IN SOUAL

RECYCLING PLANT

TARN SAWMILLWood waste

internal recycling of solvents

external recycling of degraded solvents in other chemical activities

hot water & heating

Recycled plastics

PLANT RESIDUE

EXTRACTS

FLAX RANGEKLORANE

FLAX

OAT

CALENDULACORNFLOWER

SOIL AMENDMENTS

PLANTS

from the Tarn forestry industry, is used to supply the biomass boiler (which was made in France). Ultimately, the boiler will enable 60% of the plant's total natural gas consumption to be replaced by renewable energies and reduce its carbon footprint by 1,600 tons of CO2 (i.e. 5% of the site's annual carbon footprint).In 2016, ashes from the combustion of plant residue will be spread on the fields of Rhealba® Oat, which are also located in the Tarn and farmed in accordance with organic farming principles.

ENVIRONMENTCONTROLLING THE IMPACT OF OUR ACTIVITIES

FLAX CROP

ROTATION

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Proven effectiveness of our plant-based active ingredients. High standards of quality resulting from our pharmaceuticals culture.

Sustainable preservation of botanical heritage and biodiversity, both sources of benefits – whether known or yet to be discovered – for everyone's health and beauty.

Cutting-edge research on plants, bringing together the complementary expertise of botanists, agronomists, biologists and pharmacists who are passionate about the benefits of the plant world.

A respectful approach to our partners, farmers, growers and suppliers, whose know-how contributes to the development of our botanical expertise.

A CERTIFIED APPROACH FOR THE RESPONSIBLE DEVELOPMENT OF INNOVATIVE, SAFE AND EFFECTIVE PLANT-BASED ACTIVE INGREDIENTS

Botanical Expertise Pierre Fabre is the name given to our approach to the responsible development of plant-based active ingredients, from research on plants – and their active ingredients – to the production of active ingredients, their use in the formulas of our products and their cultivation. This development is part of a virtuous circle aiming to develop innovation, preserve biodiversity, guarantee the efficacy and quality of our plant-based active ingredients and respect our partners throughout the entire chain. Since 2010, the approach has been recognized by the European label EFQM* awarded in France by the AFNOR group. A label combining Quality and Sustainable Development.*European Foundation for Quality Management

Of the 415 plant extracts used by Pierre Fabre Laboratories, over 280 are included in the Botanical Expertise Pierre Fabre approach, including those used to develop the Group's emblematic products and brands: Navelbine® and Javlor® (oncology), Permixon® (urology), A-Derma, Ducray, René Furterer, Klorane (dermo-cosmetics) and Naturactive (natural health care).

The Botanical Expertise Pierre Fabre approach is based on four founding principles: innovate, preserve, guarantee and respect. These principles give structure to the development of our plant-based active ingredients.

A primary source of inspiration for Pierre Fabre Laboratories, the plant

world is an endless but delicate source of creativity. Wanting to play their

part in contributing to the challenges related to biodiversity loss while meeting the goals of innovation,

safeguarding supplies and the quality of active plant ingredients, Pierre

Fabre Laboratories has developed a responsible cross-functional approach

across the Group called Botanical Expertise Pierre Fabre, which is

EFQM* certified.

AT THE HEART OF

PLANTS AT THE HEART OF VARIOUS GROUP PRODUCTS

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Rhealba® Oat>>> A-Derma

Tropical periwinkle >>> Navelbine® and Javlor®

Serenoa repens >>> Permixon

Flax >>> Klorane hair care range

Shea >>> René Furterer hair care range

Ruscus >>> Cyclo 3 - Naturactive

Myrtle >>> Keracnyl range - Ducray

THE FOUR FOUNDING PRINCIPLES OF THE APPROACH

Preserve

RespectInnovate

Guarantee

EVENTS

2015 2016

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PIERRE FABRE AND SHISEIDO: AN EXCEPTIONAL THIRTY-YEAR PARTNERSHIPPierre Fabre's success in Japan is possible thanks to Mr. Pierre Fabre who, 30 years ago, signed a joint-ven-ture with Shiseido. The dermo-cosmetics branch has been present in the skin care market from the start with Eau thermale Avène and the hair care market since 2003 with the René Furterer brand. Pierre Fabre Dermo-Cosmetics is also extending our presence in this country via the creation of the Asia Innovation Center in 2014 and the signing of a partnership agreement with the Maruho laboratory for the co-development of Hemangiol®.

PIERRE FABRE DERMATOLOGIE STRENGTHENS ITS OFFER IN PEDIATRIC DERMATOLOGYPierre Fabre Dermatologie, a major player in der-matology for 30 years, offers treatments for the management of various skin conditions for people of all ages, from infants to the elderly. A new class 1 medical device has just been added to this offer, Molusderm, for use in pediatric dermatology.

JANUARY 1, 2016

JANUARY 2016

FEBRUARY 2016

JUNE 10, 2016

EAU THERMALE AVENE LAUNCHES THE ONE SMILE PROGRAM

HIGHLIGHTS

Avène Dermatological Laboratories has put a training and educational program online, entitled One smile*, destined for patients, medical and paramedical staff in oncology.Mainly synonymous with hope and remission, cancer treatments also cause

side effects that are often restrictive and difficult to bear. They most often include dermatological conditions, with a significant effect on patients’ health and their quality of life.Created in conjunction with cancer specialists and onco-dermatologists, through various tools (guide, movies, technical sheets, brochure and website), the One smile program provides information and practical advice on the management of patients undergoing post-cancer treatments. Already available in France and Spain, this program will be deployed in Germany, Belgium, Greece, Italy, Canada, Argentina, South Africa and Mexico in 2016 www.one-smile.care

2015-2016

JANUARY 2016 APRIL 2016

50 years ago, Mr. Pierre Fabre, behind his shop counter in the town square, was listening attentively to his customers. He was probably a better listener than most, attentive to their desires, needs and concerns. He was also receptive to modern life, market evolutions, his customers' anecdotes and dreams... and like all women through the ages, they were full of these. This extraordinary attentiveness and sensitivity to the times was his secret, and it has become the secret of Klorane. Today, our secret celebrates its 50th anniversary.

50 YEARS OF KLORANE 1966-2016

MAY 2015

Pierre Fabre Dermo-Cosmetics Denmark has been created, becoming the 14th Pierre Fabre Dermo-Cosmetics subsidiary in Europe.

14thEUROPEAN SUBSIDIARY

Dermo-Cosmetics

LAUNCH OF KLORANE IN KOREA

Klorane is Pierre Fabre's 5th Dermo-Cosmetics brand to be launched in Korea, which has a booming cosmetics market. The brand's products will be sold in 400 points of sale throughout the country.

JAPAN

* ONco Education & Skin side effects MInimized for Living Even better

OPENING OF THE NEW HOTEL AT THE AVÈNE HYDROTHERAPY CENTER (HÉRAULT)

The new establishment, named "Eau thermale Avène, l’hôtel" has 56 rooms and 4 suites, and 7,500 to 8,000 overnight stays are expected each year. The hotel was designed according to the best environmental quality practices. All works were carried out to protect the biodiversity of the hydrotherapy center site and to prevent any risk of pollution of the thermal spring water source. The new building was also designed to limit energy loss and foster the use of renewable energy. It is undergoing certification according to the most stringent French (HQE) and international (BREEAM) environmental quality standards.

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Pharmaceuticals

LAUNCH OF PIERRE FABRE FUND FOR INNOVATION

The research projects supported by Pierre Fabre Fund for Innovation are either less than 24 months from the transition from the pre-clinical phase to

clinical development (Phase 1) or in the early phases of clinical development. This fund offers various types of collaboration, which may be combined: provision of Pierre Fabre Pharmaceuticals skills, co-funding for the research program, a minority stake in the capital or license agreement.

START OF THE NATURE OPEN LIBRARY PROGRAM

Pierre Fabre Laboratories is launching Nature Open Library, an Open Innovation program that is unparalleled worldwide, to share our expertise in the research, development

and industrialization of plant-based active ingredients with public and private players heading innovative projects. In the context of this program, Pierre Fabre Laboratories is offering access to their plant sample library and to their extracts – one of the largest private collections in the world – with over 15,000 listed samples, including some rare species.

DECEMBER 8, 2015

FEBRUARY 2, 2016

ONCOLOGY: PIERRE FABRE AND ARRAY SIGN A MAJOR PARTNERSHIP AGREEMENT

In 2015, we signed a global collaboration agreement to co-develop and market two oncology molecules owned by the American laboratory, Array BioPharma. These molecules: binimetinib and encorafenib, have reached an

advanced stage in their development. Binimetinib is an MEK inhibitor and encorafenib is a BRAF inhibitor. They are currently undergoing international clinical trials in dermatological and gastroenterological cancer treatment. This agreement enables us to strengthen our portfolio in oncology and onco-dermatology with two molecules from the latest generation of targeted therapies. It is emblematic of the partnerships we want to create.

NOVEMBER 16, 2015

PARTNERSHIP WITH INSERMPierre Fabre and a team from the Cordeliers Research Center will work closely together for 3 years to identify new biological targets and develop innovative immuno-oncolo-gy therapies. This partnership is facilitated by Inserm Transfert, the knowledge transfer promotion structure at Inserm.

DECEMBER 14, 2015

MARCH 16, 2016

MARCH 26, 2015

NOVEMBER 2, 2015

PIERRE FABRE JOINS THE IQ INTERNATIONAL CONSORTIUM

The IQ Consortium, an international scientific organization bringing together pharmaceuticals laboratories and biotech companies, aims to advance science and technology by facilitating collaboration and exchange between its members. Researchers at Pierre Fabre Pharmaceuticals consequently intend to expand and share their areas of expertise. The IQ International Consortium is an international, not-for-profit scientific organization, with 39 members (pharmaceuticals laboratories and international biotechnology companies).

NOVEMBER 10, 2015

SCIENTIFIC COLLABORATION WITH THE ÉCOLE POLYTECHNIQUE FÉDÉRALE DE LAUSANNE

Pierre Fabre Pharmaceuticals and the École Polytechnique Fédérale de Lausanne are starting scientific

collaboration on the use of biosensor chips developed by the EPFL in the context of clinical studies carried out by Pierre Fabre Pharmaceuticals.

JUNE 17, 2015

ABCHECK AND PIERRE FABRE ENTER INTO A STRATEGIC RESEARCH PARTNERSHIP

The Group signed a research partnership with the Abcheck Laboratory, the Czech subsidiary of the

German laboratory Affimed N.V, specializing in the discovery and optimization of human antibodies.

Pierre Fabre Pharmaceuticals signs two promotion agreements in Germany. The first one is with Merck KGaA for the promotion of two major pediatrics products. The other is with Recordati Pharma (Ulm) on the promotion of their leading brand in the treatment of diaper rash and two other products.

Pierre Fabre Pharmaceuticals has signed a promotion agreement in Europe with Pfizer for its proprietary drug TOVIAZ® (fesoterodine fumarate), a Pfizer drug prescribed by general practitioners as well as in urology and gynecology.

AUGUST 3, 2015

THE ITALIAN LABORATORY, SIGMA-TAU IS GRANTING PIERRE FABRE THE EXCLUSIVE LICENSE FOR ITS ANTIMALARIAL DRUG IN 32 AFRICAN COUNTRIES.

SIGNATURE OF TWO NEW PEDIATRICS AGREEMENTS

The Group is launching an original open innovation initiative, Pierre Fabre Fund for Innovation, for biotech companies, start-ups and public and private research laboratories specializing in oncology or dermatology, as a priority in France and Europe.

UROLOGY: PIERRE FABRE PHARMACEUTICALS WILL PROMOTE TOVIAZ® FOR PFIZER IN

EUROPE AND TURKEY

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TURKEY: NATURACTIVE COMMITTED TO BUTCHER'S BROOM HARVESTERS

First click - the screen comes on...and the children’s faces light up! This scene takes place in the Mustafa Asim school, in the small town of Hendek, Turkey. The establishment just opened its computer room with the financial support of the Naturactive brand and the Group. This gift to the young pupils of Hendek is a way of thanking their parents, most of whom are professional harvesters of medicinal plants. Butcher's Broom actually comes from this region and is used in the brand's phytotherapy ranges. The first step in the plant-to-drug chain, harvesting, determines the end quality of the products.

FEBRUARY 2016

FEBRUARY 12, 2016

DECEMBER 10, 2015

THE GROUP'S BOTANICAL EXPERTISE RECOGNIZED ONCE AGAIN

THE KLORANE INSTITUTE, PARTNER TO UNESCO GREEN CITIZENS

The Klorane Institute has been involved in the Great Green Wall project in Senegal since 2012. UNESCO has selected this project, within its "Unesco Green Citizens, Become a Pathfinder for Change" program, as a prime example of sustainable development education.Under the auspices of Unesco, the Klorane Institute, alongside Sipa Press, is a founding partner of this program, which highlights 8 initiatives and 25 exemplary stakeholders around the world (Japan, Senegal, Vanuatu, Egypt, India, etc.). In March 2016, the Klorane Institute and the pathfinders for change exhibited at the UN headquarters.

In order to assess its performance and demonstrate its commitment to lasting excellence, Botanical Expertise Pierre Fabre (BEPF) decided to employ the EFQM (European Foundation for Quality Management) assessment model. Launched in 2010, certification for the BEPF measure was renewed by AFNOR.

NOVEMBER 12, 2015

The Klorane Institute, which is a founding partner of "Unesco Green Citizens, Become a Pathfinder for Change", is strengthening its commitment to sustainable development education.

THE GROUP'S CSR APPROACH AUDITED "EXEMPLARY" BY AFNOR CERTIFICATION

Our company just obtained the results of our second AFAQ 26000 assessment on our Corporate Social Responsibility (CSR) policy. Conducted entirely i n d e p e n d e nt l y by A F N O R Certification between June

and October 2015, this assessment was used to measure the extent to which the recommendations of international standard ISO 26000* are integrated in the company's strategy and practices, and our level of performance as regards these recommendations. Further to this new assessment, our Group obtained the "Exemplary" level, which is the highest assessment level, with a yet unbeaten score of 805 points out of 1,000. Between the first and the second assessment, our score increased by almost 30%.In 2012, Pierre Fabre was the first pharmaceuticals and dermo-cosmetics laboratory to undertake this voluntary assessment approach.

OUR MADAGASCAR SUBSIDIARY UNDERTAKES TO FIGHT MALNUTRITION

DUCRAY STRENGTHENS ITS CLIMATE COMMITMENTDucray becomes a Climate Solidarity Ambassador in the health and dermo-cosmetics sector, in partnership with GERES*, which has been working in the field to fight poverty while protecting the climate for 40 years.At COP21, GERES mobilized 10 Climate Solidarity Ambassadors. Each ambassador, committed to societal and ecological transition, constitutes a part of the response to the climate issue. By supporting the comprehensive action of GERES in the countries most vulnerable to climate change, the ambassadors are becoming stakeholders in the success of COP21. In becoming a Climate Solidarity Ambassador, Ducray is strengthening the commitment to the environment made in 2009: thinking about reducing CO2 from product design, reducing the power required to manufacture their products, informing consumers using environmentally-friendly labeling and supporting the climate and human beings.

PIERRE FABRE IS AWARDED THE "SUSTAINABLE DEVELOPMENT" TROPHY BY THE FRENCH-SWISS CHAMBER OF COMMERCE

Our Switzerland subsidiary was awarded the "Sustainable Development" Trophy at the 27th Business Awards Ceremony hosted by the French-Swiss Chamber of Commerce and Industry (CCIFS).

A-DERMA: PLANTING HEDGES TO OFFSET GREENHOUSE GAS EMISSIONS

For the second year in a row, A-DERMA has committed to the Carbone Local program in the Midi-Pyrénées region, an innovative measure proposed by the Regional Agency for the Environment (ARPE) and invited a class of first-year BTS vocational students from the Fonlabour high school and around twenty volunteer employees from Pierre Fabre to plant new hedgerows over 861 m at our active ingredient production site in Gaillac.

Corporate Social Responsibility

JANUARY 2016

DECEMBER 2015

MARCH 14, 2016

JANUARY 2016

*Group for the Environment, Renewable Energy and Solidarity

In January 2016, our Madagascar subsidiary, in partnership with the National Nutrition Office, contributed to the national operation to fight malnutrition launched by the Madagascar Health Ministry. Our subsidiary is helping a primary school with 596 students, as 80% of the children who use the school cafeteria only eat one meal a day. It helps fund the creation of educational materials for classes on hygiene and nutrition, from the distribution of fruits and vegetables, to the construction of a cafeteria and the creation and maintenance of a garden by 320 parents of pupils to supply the lunchroom. To fund this action, our subsidiary donates 5% of profits from sales of Centella asiatica, a plant harvested near the school.

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PHOTO CREDITS:Damien Cabrol/Pierre Fabre Laboratories, Arnaud Späni, Sipa Press, Professor Lorette, Laurent Frezouls, Xavier Cailhol, Fotolia, Klorane Institute, Profil Organisation Agency, Karat/SipaLaurent Galaup/Vent d’Autan, Pierre Fabre image library, Nicolas Axelrod/Sipa Press, Sylvain Cherkaoui/Sipa PressCOORDINATION: Communications Department, Pierre Fabre LaboratoriesDRAFTED BY:Communications Department, Pierre Fabre LaboratoriesPatteBlanche Communications AgencyGRAPHIC DESIGN:PatteBlanche Communications Agencywww.patte-blanche.comLegal deposit: July 2016PRINTING:Art & Caractère - LavaurThis report was printed in a publishing house that has anFSC control chainunder the number FCBA-COC-000078 anda PEFC control chain under the number FCBA/08-00901.Also labeled Imprim’Vert and a member of CulturePapier, the printer’s Corporate Social Responsibility(CSR) has been assessed according toISO 26000, a voluntary contribution toSustainable Development.This report is printed with plant-oil basedinks using an alcohol-free wetting process.Printed on PEFC paper, this product comes from sustainably-managed forests and from controlled sources.Pierre Fabre item code: 366213

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