Vetoquinol Universal Registration Document 2019

STATEMENT OF NON-FINANCIAL PERFORMANCE Vetoquinol’s sustainable development goals 2 Vetoquinol  Universal Registration Document 2019  Financial report   39 Number of first aid interventions Number of lost-time accidents Number of accidents without lost time Number of near-misses and hazardous situations • sales subsidiaries: establishment of a periodic HSE internal audit process within the premises, new trai- ning courses in first aid and fire extinguisher operation. HSE expenditure at manufacturing facilities totaled €407,000 in 2019 versus €606,000 in 2018. The first Group-wide HSE seminars involving all HSE officers at the sales subsidiaries were organized in 2019. 2.4.2.3 Health and safety agreements The incentive agreement in France was renewed for the 2017-2019 period. This includes a safety indicator related to the number of lost-time accidents. This indicator is monitored regularly and is shared with the Executive Committee and the Group Board of Directors. Companies where over half of the employees are exposed to arduous work factors as defined by law have been required under French law to establish an action plan or company agreement aimed at mitigating or eli- minating such factors. Vetoquinol is not bound by this requirement, as less than 50% of its French employees are exposed to arduous work as defined under the legislation. Nevertheless, in accordance with its Health, Safety and Environment (HSE) policy, Vetoquinol takes steps to mitigate risk of staff illness and injury. Three types of arduous work have been pinpointed and are being worked on: • handling operations, • repetitive work, • night work. A 5-year company agreement on night work was signed by management and staff representatives on December 18, 2015, applicable from 2016 to 2020 inclusive. 2.4.2.4 Occupational heath and safety indicators Group Safety Pyramid 2019 2018 16 11 14 10 105 112 592 232 LOST-TIME ACCIDENT FREQUENCY RATE (LTAR OR TF1) 4.2 3.0 ACCIDENT AND FIRST AID FREQUENCY RATE (TAR OR TF3) 35.2 35.1 SEVERITY RATE 0.07 0.07 ANNUAL ACTION PLAN COMPLETION RATE 79% 77% Pharmaceutical industry statistics - France (source: AMELI) The lost-time industrial accident frequency rate (LTAR) in France is around 10 (2016: LTAR (TF1) = 11.7 – 2017: LTAR (TF1) = 9.5). The average severity rate in the French pharmaceutical industry is around 0.6. The total number of accidents and first aid cases reported in 2019 was close to the 2018 figure (135 vs 133), although there was a marked increase in the number of lost-time accidents. Notwithstanding, the lost-time accident frequency rate remains well below the French pharmaceutical industry average. The severity rate was also low and comparable to the 2018 rate, reflecting the non-severe nature of injuries caused by accidents reported. Lost-time accidents occurred in France, Poland and Italy and at the sales subsidiary in Australia. Generally spea- king, there is no correlation between accident typology and the nature of Vetoquinol’s core business, most acci- dents being caused by falls or slips. Behavior remains one of the primary causes behind these accidents, thus demonstrating the appropriateness of the Vigilance program. The improvement in reporting on hazardous situations and near-misses in 2017 and 2018 due to the introduction of an official information-gathering process continued in 2019. It can be considered a real positive given that the ‘lower’ part of the pyramid is a proactive indicator that enables action to be taken before accidents occur. Every Group entity now implements an annual action plan to mitigate the HSE risks identified by internal audits. The overall action plan completion rate for 2019 was 79% compared to a target of at least 70%. Vetoquinol has set ambitious targets for 2020, including a lost-time accident frequency rate of below 3, over 1,200 hazardous situations reported and processed and an annual action plan completion rate of over 70%.