Annual Financial Report 2010

8/3/2019 Annual Financial Report 2010

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2010 Annual reportPassionate about animal health


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Overviewof 2010

A laboratory dedicatedto animal health

2-3 Chairmans message

4-5 Highlights o 2010

6-7 Virbac worldwide

8-9 Key fgures

10-11 Corporate governance

12-13 Sponsorship

Overview

16-21 Environmental responsibility

22-26 Social responsibility

27-31 Economic responsibility

Sustainable development

33-61 Management report

62-73 Report o the chairwoman o the supervisory board on organising

the work o the supervisory board and on the internal control and

risk management systems

74-110Consolidated fnancial statements 2010

111 Statement o responsibility or the annual fnancial report

112 Observations o the supervisory board

113-115 Resolutions submitted to the ordinary and extraordinary

shareholders meeting o 28 June 2011

116 Glossary

117 Virbac on 5 continents

This document has been printed on PEFC certifed paper, manuactured in an

objective o protecting and managing orests.

Financial report

Sustainabledevelopment

Sustainabledevelopment

Overviewof 2010

F inancialreportF inancialreport


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Overviewof 2010


4/1202

2010annualreport

Overview

Chairman's message

An exceptionalyear

How do you evaluate 2010?2010 wi g dw i h hisy Vibc s vy im y. Bh h

ms gwh hv wkd gh i h cx vb xchg

, whi i mj jcs vvd vy siivy. Hwv,

gwh i h im hh mk ws mds i 2010. emgig cis hv

cibd gy, b e is si ggig bhid; d hgh h uid Ss

hd sg gwh, i ws y cv m h giv dvms

2009. th cmi im mk hs c iy byd, b hs y

chd is -cisis gwh s. th gwh g wih h d dcig

im mk, d by vccis d mgig cis is ss mkd h

i h c s.

From where do these good fgures come?Vibc's vy gd mc i 2010 cms m gis i mk shs.I e, wh h G chivd h is v, h fs y efd Fii, fi-bsd x siicids dgs d cs, hv sdi ss bv 20 mii d g sm wy xiig h mk sh gisi h cmi im sgm. as i e, Vibc gid mk shsi h bvi dmi which hs m h cmsd h diicis

h "idsi" sgm (ig d y). I h uid Ss, gwh hs bsg d mch high h h h mk, s s h gss md h mj gs, dmgic, d d i siicids wih h vhg. I h s h wd, which w ss 35% csidd v,Vibc hd gwh i db-digi igs i my g mgig cy

mks: Idi, Mxic d Bzi i ic. asi, is ,hs dbd i siz i c ccy ms wig h cqisii h bgiig h y d h sccss igi h im

hh civiis Wyh h pfz hd divs i d sisy

h cmii hiis. Vibc is w i scd sii i h

asi mk.

ric Mare,Chim h

xciv bd

A double-digit growth

in emergingcountries


5/1203

2010annualreport

And in terms o results?th sg gwh csidd v, bsd, ik i vis ys,by vb dvms ikd h dcii h , hs d

h sg gwh h c ig f (33.2%) d m sigifc

gwh f (+62.1%) bcs bdwi gd by h asi

cqisii. Icsd fbii y, h hdig db dci qims d

ivsm gmm i w h dicd hv bd h g

dci dbs. Vibc ds h y 2010 wih ms y db d c

h ish hs sigifc x gwh.

What are the major advances?th y 2010 ws y ich i ms ig d fci f, my

h y's dvcs s big h h . I fs c, is h vb gss

h dssi h e gisi h vcci gis ci ishmisis,

Cilish, which civd vb ii h e mdicis gcy

(eMa) i y Jy 2011. I h midd Mch, h mkig hisi ws

issd by h e cmmissi wig fs ch i pg, wd by

h chs dig h scd h h y. Idsi ivsms h Cs

si w md i b gd ics i dci, i hs wih h

ch cd. oh sizb idsi jcs w k dig h y 2010

d, i ic, h w dci si ijcbs which wi b i i

2012. th i w dcs big dvd hs gssd h d

sd d shd b w chs i 2011, icy i h uid Ss. Fiy,w iiiivs imv i fcicy (imisi h sy chi d

h ch w dcs, w dyms h erp d CrM imi

sysms, iig gmm css-ci mgm) d isk miig

(sig h risk Mgm dm, cmiy jc).

What are the prospects or 2011?2011 s w dvm scs h G. th im hh mks

gy xc smwh b gwh h i 2010 i h cx m

dymic gb cmy. nw dc chs xcd d h mk

dvms icid i h mi cis b md gwh bvisgd e, b sg gwh i h h gis h wd. th

cmi im sgm shd ci xic gd gwh, d

by ivi. emgig cis shd d h gwh i h d dcig

im sgm, which shd mi sb i e. oi fbiiy

xssd s cg v shd s w gwh dsi ccd r&D

ivsms, d s cmmci i ci g cis. exc

cqisiis, db dci shd b ss h i vis ys bcs

k i w ids i jcs i 2011.

By wy smmy, his hs b y h shd b Vibc s is

dvm by icig is cmiivss.

572.8M2010 turnover


6/1204

2010annualreport

Overview

Highlights of 2010

January . February . March

Australia:successul integration o the Fort Dodge rangeSccss s F Ddg siicids d vccis cqid h s

2010 i asi , i ic h Cydci g which hs xcdd ss

css. 110 w mys hv jid h sbsidiy sic Fby. Whis

big dy k h w chgs i 2011 (idsi ivsms i pi h

d ig imi sysms), Vibc c w m h mi ig ds

by ig h ms cmhsiv g h mk .

Group:protecting the company's assetsSig h risk Mgm dm wih h mi sks: dig isk mig h ii v i d ssss h imc d v c d kig his isk

mig d, cdiig h ad hoc wkig gs hgh dym csss,

dis d gd cics d, y, cmig Vibc wih h bs cmis i his i

d cg h cmy d bs cics. this w d m shd w

h G c h gwig cmxiy is vim d h mi csis

i s, s w s cc v m gb sc.

Italy:eradication o rabies

thanks to Rabigen Sag2ed giis wih h Ii miisy:

Vibc w h bis d 2010 wih

h rbig Sg2 vcci.I mh, h dc d h idsi

ciiis w mdiid i d m

dmd w mii bis divd bw Mch d nvmb. thks his

vccii cmig, Vibc cibd hig h sd bis i h c y i js

igh mhs.

Product launches, organisations,acquisitions...

Follow the guide or everything you need to know about the Group's highlights.


7/1205

2010annualreport

April . May . JuneChina:Virbac made urther advancesFis dic Vibc ss i Chi i h cmi imsc. a i which is w ssib hks h

immi ci disibi sysm (dic

divy h csm) d iwid cvg. Vibc

w hs high-mc ss m icsig

is sgh i his d cmig mk.

France:Tenotryl, a rational approachto antibiotic therapyFwig ch d h m ex i c e i 2008, i h uid Kigdm,

Gmy, Bx, Iy d pg i 2009 d i asi d Si i 2010, mkig

hisi ws bid i Fc ty, fxci-bsd ibiic b

dgs d cs. Cmbid wih s s ssiiviy fxci, his dcws Vibc y cmm is ig b s dvc ssib s

ibiics i d mii hi civss v h g m.

October . November . December

Poland:opening o the 27th international subsidiarya sg sc Vibc i c e wih h sig sbsidiy i

pd: Vibc S. z .. which ws m sv ys sg ss gwh i his

mk. Bsd i Wsw his w iy ws Vibc ci is dvm i his

mk wih h gs gwh i i his gi.

Europe:Epro/Fiproline, the no

1 Virbac productFis y h mkig i-bsd siicids i h hic (vii)

d otC mks. Wih m h 20 mii i v h i g, hs

dcs which hv bcm Vibc's 1 s i e cdib iv

i h mk x siicids cmi ims d sgh h G's

img s mj y i im hh.

Effipro

Fiproline20MM

July . August . September

North America:St. Louis, new Equimax production site or EuropeGMp e cici bid, hisig h S. lis dci i i h uid Ss dc

d disib eqimx e. as sch Vibc is sghig is dci cbiiis h eqimx

g, Vibc's hid biggs dc i e wih m h 10 mii i v i 2010.

Germany:Suprelorin 9.4 mg implant or dogs, a new advance in managingcanine reproductione cisd mkig hisi bid w s Si which is civ

wv mhs (cciv im m dgs). lchd i Gmy i nvmb, h dc wi

b xdd h wh e i hss hgh 2011. Wih Si 9.4 mg im dgs, which

dbs h dc's gh civiy, Vibc is cmmig is cciv im ig byintroducing

w iv sgic csi i sig ici.

France:Vetfurane, the rst registered veterinary isofuranergisi V, h is is-bsd viy mdici i Fc,

bchmk ihi shic i viy mdici which ws visy y

vib m hm b is (wihi h mwk h is hsi mdicis

ccssib viis). thgh mkig his dc sic ocb, Vibc hs mdi si Fch viis ccss his mc.

in turnover


8/120

5researchcentres

Overview

Virbac worldwide

More than3,150employees(including 65% outside France)

Presentinover100countries

North America

E83.4 million

Latin America

E39.2 million

81% of salesoutside France

International presence has been an integral part o Virbacs strategy

since the very beginning. Started in 1978, the Groups expansion abroadprogressively accelerated in the 1980s and continued in the 1990s.

Having set up eight subsidiaries in the 2000s (Philippines, Portugal, Taiwan,

Colombia, Costa Rica, Greece, India and Denmark), Virbac strengthened

its presence in central Europe in 2010 with the Groups 27th entity outside

France: Virbac Poland.

6

2010annualREPoRT


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Productionsites in7countries

7

2010annualREPoRT

27 salessubsidiariesoutside France

Europe

E286.5 million

Asia

E69.4 million

Pacifc

E63.6 million

Arica & Middle East

E30.7 million

8thveterinarycompanyworldwide

Headquarters and subsidiaries in France

Production sites

Research and development centres

Subsidiaries and representative ofces outside France


10/120

Overview

Key igures

Organic growthlike-to-like exchange ates and scope

5.8 %

4.4 %

10.8 %

54.5

35.4

54.458.3

38.8

58.3

77.6

87.7

63.4

cuent opeating esult opeating esult esult fo the peiod attibutable to the ownes of the paent company

43.4467.4

572.8

Net sales(in E million)

Results(in E million)

2008 2008

2008

2009 2009

2009

2010 2010

2010

8

2010annualreport


11/120

+22.6%

2009/2010 change in net sales

Investments(in E million)

intangible assets tangible assets financial assets

4.8

13.8

0

2.4

19.8

0.1

2.8

22.1

0.2

Cash fow(in E million)

52.2

67.6

58.8

Financial structure(in E million)

net assets woking capital equiements (WCr)

equity attibutable to the ownesof the paent company

non-contollinginteests and povisions

net debt

Capital employed

Financing

2008 20082009 20092010 2010

39.1 44.3

51.0281.3 281.3

289.5 289.5

324.0 324.0

242.2198.4

233.6

300.1

16.0

22.1

20.8

66.9

33.8

3.1

245.2

273.0

2008

2008

2009

2009

2010

2010

9

2010annualreport


12/12010

2010annualreport

Overview

Corporate governance

Executive boardth xcuiv bod is sosibl o h sgic d o-

iol mgm o h comy.

I hs fv mmbs. th xcuiv bod is ssisd by s-

gic commi which bigs ogh d hds o mjo

coo ucio dicos.

ric Mare,Chim o h xcuiv bod

Christian Karst,excuiv vic-sid coo dvlom

Michel Garaudet,Chi fcil ofc

Pierre Pags,Chi oig ofc

Jean-Pierre Dick ,rsosibl o scil ojcs d sid o h

Fodio deis Vibc, coo oudio


13/12011

2010annualreport

Virbacis a public limited companywith executive &supervisory boards

Supervisory boardth suvisoy bod sus m cool o h mg-

m o h xcuiv bod, gul iscio o ccous d llmjo ojcs d ivsms.

th suvisoy bod is comisd o:

Marie-Hlne Dick, chiwomJeanine Dick, vic-chiwomPhilippe CapronPierre Madelpuech,m siv o h comy asgiXavier Yon, m siv o h comy XYC

Audit committeeth udi commi is i chg o viwig fcil disclosus d h mgm

o isks d ccouig cics.

Is sosibiliis s ollows:

su h lvc, cosiscy d libiliy o h ccouig mhods;

viy h xisc d civss o il cool d isk mgm

ocdus;

xss is oiio o h vlidiy o h ccouig m o mjo scios.

I is comisd oPhilippe Capron, chim, d Pierre Madelpuech.

Compensation committeeth comsio commi is sosibl o:

dwig u commdios d oosls gdig h comsio o mmbs

o h xcuiv bod;

syig iomd o h Gous gl Hr olicy d mo scifclly h com-

sio olicy o h Gous icil xcuivs;

viwig oosls d codiios lig o sock gs;

dwig u oosls gdig h mou o dicos s o b id o mmbs

o h suvisoy bod.

I is comisd oMarie-Hlne Dick, chiwom, d Xavier Yon.

Statutory auditorsDloi & associs, sd by Vic Gos

novcs-Dvid & associs, sd by J-pi Giud

Marie-Hlne Dick

Jeanine Dick Pierre MadelpuechPhilippe Capron Xavier Yon


14/12012

2010annualreport

Overview

Sponsorship

Newboatnewchallenges

3rd Route du Rhum

Sin-M, 31 ocb 2010. embkd n scs bs, 80 vinins

jin Vibc-pc 3. on bd, Jn-pi Dick hds h du in h 9h ru du rhum. 13.02: sing sign! on h w, h scn is

mgnicn: 85 sibs gid simunusy in h w cv h 3,453 mis

sing hm m pin--pi. 14.30: Jn-pi sss h C Fh

ding h Imc f (Innin mnhu n css ssciin), in h

midd hd siing scs. th min is is k un iv in

Gudu, in h midd h nigh, wh und wny vinins hv

cm sciy wcm Jp nd cb h vn. th ski ivs

in 4h c nd is dy king hd h nx chng: n 31 Dcmb

h wi b ving h Bcn Wd rc. th ys vicy in h

s diin h vn , Dmin Fx's sid, h is nw cmmid his

und h wd w-hndd, nn-s i wih lck pyn. F h gu

und y Vibc cins wh cm ncug h i hd, h nw

y hs s dvnu!

Roots and sails

ru du rhum, tns Jcqus Vb, Bcn Wd rc, Vnd Gb, c . th

siing snsshi in which Vibc hs bn invvd sinc 2001 cs g d

mdi nin, bu h is n . th w-knwn n s cs in which Jn-pi

Dick icis in c uniis s nshis bwn vinins

nd Vibc. th dus nd ivs, h dys nviging wih h ski, bing hmgh hugh shd ssin siing nd nbs cs inks b gd.

Jn-pi Dick, si h highs cib bu s ind vinin, mbdis

bh h viny ssin nd h vus h Vibc hds d: m sii,

nnushi, innvin nd ushing ns h imis.


15/120

ean-Pierre Dick,skipper &

veterinarian

a m hn sixn mnhs

h shiyd, Vibc-pc 3

was lauched i new Zealad

o 18 May 2010. Built by

Cookso Boats shiyad, like its

edecesso paec-Vibac 2, the

yougest of Jea-piee Dick's 60

feet moohulls is at the height

of iovatio ad aoud 15%

lighte. retuig to Face by sea

eabled the skie to test the

boat i eal avigatig coditiosbefoe tacklig 2010's big evets.

Duig the week leadig u to the

deatue, aoud foty cliets

wee able to visit the ew sailboat

ad shae a secial momet with

the skie ad the Vibac-paec

team ove beakfast.


16/120

Sustainable

development


17/12015

2010annualreport

Inthesocialeld,sc hmkid hs b h ky divs h d h cmy, pi-richd Dick, DVM: h si

sci dig, mi d sci ci icy h vs mys

h w d h sy sc , d h cdc d is shw i vy

my hs Vibcs dii vs. th cmy is cmmid

svig his dii d civig i by smig i wih mbiis skis

dvm icis.

Intheenvironmentalfield,h cmys vy is g highqiy vs (cmic xm wih Bs Mcig pcics d wih

Bs lby pcics). I ddii, sv ys g h cmy chdlean manufacturingd cis imvm jcs dsigd sdiy c

ws d imis sc sg. th sch gy svigs d sc

h vim icsigy igd sysmicy i ky cmy dcisis

(ivsms, s, dc dsig...).

Intheeconomiceld,h cmys g is ci sig h sdy db gwh i hs s ms y sic is dig. this dvm

is imiy bsd sid gic gwh, div by ivi d h sgh

Vibcs csm is. I is gy smd by gd cqisiis,

whi vhss sig h db vs mi mgb. this sgy is

sd wihi h mwk sighwd d c gvc sc

h vids shhds wih high v scy.

Js s w hd wishd, his w ssib dvm highighs c i

ic y mkb Vibc iiiivs i h mgig cmis, hy k

c d gy mwk which is ss sv h i dvd cis.

I ddii, his w s sm h d sd i vis s

d chs m csy sdds sd i vis idsis.

ricMare

Long-term development o a company involves

searching or a harmonious balance between

three principles: caring or people, respect or the

environment, and economic perormance. Virbac

has been committed rom the beginning to making

progress in all three areas.


18/12016

2010annualreport


Environmental responsibility

Resourcemanagement

AtVirbac,resourcesarecarefullymanagedviakeyindicatorscoveringenergyandnaturalresourceusage(water,electricity,gas,fuel)aswellasrawmaterialusage(activeingredients,packaging,excipients).

Lowering energies and natural resource usage

on comparable activityF sv ys w, Vibc hs b sivig c gy d sc sg

hgh cycig (w), cig qim (m ci), isig, imisig i

cdiiig d hgh h sbishm sg idics s cs s ssib h

d ss (b c gy xdi). F cmb vm civiy,

v dci v h s v ys i csmi h Cs si (which

ss ms 50% G dci) md 15.7% ciciy, 17.6%

gs, d 30.7% w.


19/120

Reductionin usage

17

2010annualreport

UsageFranceCarros

201020092008

25 000

20 000

10 000

15 000

5 000

eciciy i MW h

2008 2009 2010

106 111

125

Idsi civiy Cs

Idx bs 100 i 2006: ddd v (dic b

css + idic dci css)

riv gy sg is ig, sic h ics i vms dcd i Cs bs

miimm gy s h si, sch s cd chmbs d i cssig, b b

mizd.

Gs i MW h

201020092008

16 000

14 000

6 000

4 000

12 000

10 000

8 000

2 000

W i m3

201020092008

120 000

100 000

80 000

40 000

60 000

20 000

asaproportionofactivity used

th gwh i gy csmi is w

h h gwh i vms dcd

d h sccss h w V

Cmx dc gs.

UsageFranceVauvert


201020092008

1 800

1 600

800

600

1 400

1 200

1 000

400

200

eciciy i MW h

Vv idsi civiy

2008 2009 2010

125

137141


css + idic dci css)

201020092008

1 800

1 600

1 400

1 000

1 200

800

600

400

200

W i m3


20/120

AREASFORIMPROVEMENTth csci w

idsi bidig cmyig wih

h s vim sdds

is cy big dk

h Cs si. this csci

wi ic h bs vib

chgy dcig wcsmi d idsi ws

w. th bidig cmis wih

h siis id dw by h

ni is i

imvm h i h

iv V (ec Vy).

18

2010annualreport

201020092008

1 200

1 000

800

600

400

200

201020092008

1 200

1 000

600

800

400

200

201020092008

6 000

5 000

4 000

3 000

2 000

1 000

UsageMexico

I 2009, s hig sysm hig ig w ws isd, big cmis b md i gs csmi. Gs gy bis w c by m h h. picisid imiig ciciy csmi s cibd dimii i gycsmi.


Idsi civiy Mxic

2008 2009 2010

116 114

145

Idsi civiy i h uid Ss

2008 2009 2010

100 98

104

201020092008

180

160

60

40

140

120

100

80

20

201020092008

8 000

6 000

3 000

4 000

2 000

1 000

201020092008

18 000

20 000

16 000

14 000

10 000

12 000

8 000

6 000

4 000

2 000

UsageintheUnitedStates

Vibc uid Ss hs isd m, hmidiy d ss c sysmi vis dci d sg zs is si i S. lis, wih h im migc cmic qims. ahgh his isi, gh wih ics iidsi civiy, hv gd m y is i c iciy csmi i 2010,

h qim scd ms ssib dvm (h chi sysmisd csms 50% ss gy h h sdd sysms vib h mk).



css + idic dci css)

eciciy i MW h

Gs i CCF (1003) W i m3


css + idic dci css)

eciciy i MW h

Gs i is W i m3


21/120

Focusoninformationsystem

Minimising losses at every stage o the manuacturing

processSic h idci h Cis Imvm jc, Vibc hs sd

h -ig is civ igdis, xciis d ckgig sg. this hcmhs b chivd vi ddicd si shis: m cm h b

miimm (dci ivis d i ss), hgh imisd fw

gisi (mcig smhd d id dmd) h shiig ishd

dcs (i i wih csm qims). lsy, Vibcs ivi icy vs h

mcig dcs qiig h s m ckgig.

19

2010annualreport

Vibcs imi sysm s

hs i dcig h vim

imc by mkig s :

collaborative tools helping to

dc cssy v (vid

ccs i ms sbsidiis,

shd mig scs, is

mssgig);

communication tools leading

viisi i d

x xchgs (wkfw,

x, pDa, Ftp m); IT infrastructure reducing the

mi scs qid

(viisi svs, l

eis rsc pig,

mi).201020092008

800

700

600

500

400

300

100

200

Plastic in tonnes

201020092008

600

500

400

300

100

200

Glass in tonnes

th ics i csmi ,

cdbd d sic is w h h

gwh i civiy.

Managementofwaste

Virbacgeneratestwodifferenttypesofwaste:non-hazardousindustrialwasteandspecialindustrialwaste.Theyaremanagedviadedicatedcollectionandsortingchannels(overallchangeinsortingfrom61%in2009to65%in2010)inordertoensureoptimalrecyclingorvalueddependingontheirnature.

Improving sorting at source and reducing the volume

o non-hazardous industrial wasteSic 2003, Vibc hs icid i h immi cci sysm

-hzds idsi ws (miim, i, gss, cdbd, sic, , c.)

h Cs idsi z this scic sysm (gy sdid by c hiis

h idsi zs kig ic i) mks i ssib k idd,iviv d high-mc ch h m his s ws. t

chiv his, Vibc is imisig sig sc by vidig mys wih c

cci ciiis (cycig bxs, ddicd cis, sic cs). ths, i

i idic vm civiy, h qiy -hzds idsi ws

hs by 18.6% v h s v ys.

France:pharmaceuticalpackagingputonthemarket

201020092008

900

800

700

600

500

400

300

100

200

Cardboard / paper in tonnes



22/120

BreakdownofCO2emittedbyorfromVirbac

20

2010annualreport

Environmentalintegration

Stringentregulation,ecotoxicity,specialanalyses,securebuildingsasapharmaceuticalgroup,environmentalintegrationandriskcontrolareacorepartofVirbacsbusinessactivities.

Taking environmental actionGiv h is hmcic mcig civiy (i ic siciv

chgis), Vibc ds c y vis, is cy iscs. ahgh

Vibc is -ig bsiss, i ivss icsigy i sc h vim:

sig Idsi pjcs mgm m wkig i cs cbi

wih sghd Hh, sy d vim m, s w s sig riskMgm d m. I ddii, G icis h vim dd

by sbsidiis m di c gy qims.

ahgh h cmy is cd by gi Co2qs, sic i is csidby

bw h w imi 25,000 s m, Vibc is cmmid mgig his

ghs gs ikd gy csmi (gs d ciciy) d s (by d,

i d s).

Energy53.7% 10.5%

Roadtransportation35.7%

Marinetransportation0.1%

AREASFORIMPROVEMENTa ky y mgs h

idsi s i h Cs

z, Vibc cis is s

xd h scig

bh -hzds d sci

ws (i ic hgh h

idici w cycig

chs) s w s sig

sc hgh icsd

isig wss is

is hks d idics:

qiy ws dcd

vm ishd dcs.201020092008

600

500

400

300

100

200

Non-hazardous industrial waste in tonnes

201020092008

400

300

100

200

Special industrial waste in tonnes


Bringing volumes o special industrial waste under controlVibc ss cbiiy imii is sci ws: sid ckgig,

by, mcig d mdici ws ws h cd givs is ici

isk s chmic f (icid h ms d ccdigy h cvd cycd cv svs). lsy, Vibc is sdiy imvig h cci sysm

hgh h sbishm w v m sciv chs, mkig i ssib

dc h i ws y cvd by cycig.

France8 500tons

Airtransportation


23/120

Managing direct and resulting risksth Gs mig sigic isks hs xsd ci mb idsi d

vim isks ( m dis, s h mgm , ch

risk Fcs, g 50). F h m im isks, i 2011 Vibc wi y scicci s dsigd dc h xs h G sch isks. Hwv, g

mb mss hv dy b cid i his d.

SafetyofproductsandoftheircomponentsGeneralmeasures pvisi sy d shs Vibc mys (w mi s) s w s

csms d shis (dcs).

ogisi si i i wih gis gvig h si

hzds dcs:

- vibiiy sy d shs ishd gds i Fch d i egish;

- ckgig dgs dcs i ckgig which ms c sdds.

Conformitywithpharmaceuticalregulations tiig mys i h scic qims h hmcic ids y.

Sig cssy ci, bh cciv (mshicy cd zs,

i i sd ks, s iss wh wkig) d idivid (ppe: ps

pciv eqim, vccii).

F dc cbiiy (m w m i vid cis).

Ecotoxicityofproducts Vibc cis cxiciy ysis ch is gisd dcs. this is

vidd by ci mkig hisi issd by vis vii mdici

hiis.

Wih sc dcs cmi ims, h chic si is s igss hm hmcics. I h cs dcs d dcig ims, his

ysis is v m shisicd.

Safetyofindustrialprocessesandfacilities Ghig d scic m fs b diss: i ic, iy

cmid w isig m h dci civ igdis bigic igi

is sbjc cssig/siisi b big jcd i h ws w wk.

tchiqs gy did by gy hiis (ass-anMV, D,

av).

Fi dci sysms cv h wh si, wih hm -si miig 24 hs

dy.

a diig isis by idd sciis i isk vi.

21

2010annualreport

AREASFORIMPROVEMENTnw bidigs d qim,

s wss, mbiisi

Hh, sy d vimmgm, dig i ic

h ci s ddicd

h vim... hs

icis fcig Vibc's dsi

ssimi sic s d

vim sy qims.

Focus on

emergingeconomiesColumbiaI 2010, Vibc Cmbi

dvd s-csmi

hysiy dcs.

th g: cc sids

im hh dcs dicy

m d ss (vs, ms,

disibs, c hiis...).

as my ckig ckgig

ics cvd i giswh h vim imc

sicids is csidb:

Cdimc, C tig,

M, Byc, Hi, tim, n i,

nhws Cs, nhs

Cs aiqi d Sd.

Whh mcd cy

imd, h ckgig

ccd is ccd i sci

cis sid sis

wh h dcs id,

h cd d sd

ici sciis cycig

sis. a icy which is bh sd ssib.


24/12022

2010annualreport


Community involvement,

a reection of diversityIn2010,Virbacwasonceagainactiveinthelocalandnationallabourmarketforcoveringitsrecruitingrequirements,emergingasaresultofstrongcontinuinggrowth.Since2009,thecompanyhasbeencommittedtorecruitingsolelyonthebasisofskillsand

tostrengtheningpartnershipswithsocialpartnersintheeldofemploymentandeducation.

Maintaining and developing employmentthks cmicy ssib mc, Vibc hs dvd mym i

Fc: s mbs w icsd by 30 i 2010 v 2009, chig g 1,106

s 31 Dcmb 2010.

th i Vibc s my is civ c ics. a csisy

gwig cmy hm sc, Vibc cis sgh is sc i h

b mk ( icii i ms ms). thks ssib gwh d is

gb sc, Vibc s gi scs s-ichm d ssibiiis dvcm. emym is s dvig h G v.

Prioritising expertiseBh wih gd cim d i mi, h y cii k

i cc is xis. pic c is k i dig qims i ms

ssibiiis, xic d skis. ths bjciv cii h bsis sci

d cim dcisis d cmm mgs i h ic d d hm

scs mgs.

evy y, mmbs s discss hi skis , hi dvm scs d

hi siis wih hi immdi mgs. Sm m skis m

sisd s ssi ii wihi h cmy.Ms cim igs cd iy, hs hig m i

mbiiy wihi h cmy.

Social responsibility


25/120

AREASFORIMPROVEMENTVibc cis sgh

is i wih mb

ivsiis d ssi

schs ikd h cmy's

bsiss civiis. a ic

is big md h v

viy schs d wih

hmcy cis. Vibc is

s cmmid ciig

is dkigs i h d

disbiiy wk. a di imd

sghig divsiy icy

wi b cid i 2011 wih

h h sciis (IMS - Entreprendre pour la cit).

roup staff numbers 2010

3,150(2,880 in 2009)

Being a good citizen and reecting social diversityVibc icis i dig bw h bsiss wd d civi sciy. I ic,

by kig sigic mb is d ics (62 w ims i

2010) m bh gi d i dci isiis.ths xchgs s k c vi g cim yg s h G

sbsidiis h bsis VIe (Volontariat international en entreprise) gmms. ths

yg mys s c i h cmy.

Kig 10% hdc d by d wks d immi ms

mss cgig h cim d iig d wks. a ddicd bdg

( 30,000 Fc) hs bd s i m h wy s.

a d mmb h nic-Shi aiis uivsiy Fdi, Vibc is s

sd h Cmmi sgic ii h nic uivsiy Shi

aiis d h Skm Bsiss Sch.

I Jy 2009, Vibc sigd h divsiy ch, fcig sg cmmim by h

cmy cmb ms discimii i hm sc mgm.Hdic: i 2010, Vibc cid is shi wih l Gd C ssi

dym (Crp Centre de Reclassement Professionnel) d h h esbishms

d svics mym id (eSat) i pvc-as-C daz gi. th im

is iig css d my ssigms.

I ms css, Vibc is cmmid kig disbd s i mym.

I ci wih agh, di gmics dci wksis ws

cid . this d h imvm sis, i ic by sig qim

dig d dig.

Workingconditions

LabourrelationsatVirbacconcerneveryone:theyreectanongoingwishforopenandconstructivedialogue.Oftenlinkedtoperformance,workingconditionsareofconstantconcern,regularlyassessedviatheinternalopinionsurvey.

Encouraging social dialogue and improving labour relations Dig d cbi icd wih h h siv s gisis

sig i h sigig gms smm hidys i 2010 d sig

cmmissi 1% hsig.

Cii wk by GpeC ji wkig g sy chi sciisms,(Gestion prvisionnelle des emplois et des comptences): dci, qiy c, gisics

d ci sis.

23

2010annualreport


26/120

AREASFORIMPROVEMENT a s ig i i c c i mgmm wi b cid i

2011 hi m s

Cs, i d dc h

cg my s.

a mig dcs i h

mb wk-d ccids

wi b iiy im h Cs

si, wih h g chig

hmcic idsy sdds.

Cid iiiivs jb

dvm hdicd

i Fc.

Sig Hh, Sy devim sdds i ch

idsi mgm d.

rcim scd m

m s sghig

vi civiis.

nw s ii svy i

2011.

Taking preventive measures with regard to health and saety

at work I 2010, w Hh d Sy dic k his s, gisig h svic wih

h im sghig scs ddicd iig, vi, d sc dmiig cis ccids.

Sss mgm iig css mg s d s, wih h mhsis

vi i ms hh (s, cci dc, Hr, Cmmi hygi,

sy d wkig cdiis (CHSCt) d Hh d Sy svics) icy i

i imvm wksis.

pvi rfx icy: 500 s dd wss d iig sssis hh

d sy wk dig 2010.

th si Mgy Vxi ws wdd Cmy thy by h I d Fc Cm

i cgii h imssiv s md s h pvi ccid

wk d cci disss cmig, cssig i ic msc d sk

bms.

a ji css-ci wkig y ivvig mgm d mys, h

cci hh svic d h sci svic ws s d wih vi

sych-sci isk.

I 2010, sci svic vidd h dy sc ch wk, ig ddii

s s i dicy.

Idici d isk mgm CMr (Ccigic, mgic d xic

sbscs): csig dciv disds.

StatisticsonconditionsofemploymentinFrance

Absenteeism: 4.4%(mb wkig dys s s s

sickss, cci ccids, cci-

ds d m wk, cci

iss, miy, hic im

wkig, dividd by h hic

mb dys wkd yy).

Turnover: 5.8%( mb s ig is ,

ddc is , m gm

dismisss s i s

mbs).

Safety: 29 occupationalaccidentswih sgs dig 595 s

wkig dys.

Temporaryemployment: 138temporary staff vg, mhy bsis, 12.4%

s mbs.


27/120

AREASFORIMPROVEMENT

I 2011, Vibc hs iig mgs dsigd

h hm imv

cim, sghig h

mssg -discimii

d cgig ssisc

w mmbs s i ms

igi.

Development of expertise

and employabilityAtVirbac,thedevelopmentofexpertiseisoneofthekeyareasofinvestmentwithaneyetotheefciency,developmentandprofessionaladvancementofemployees.Attheheartofthesystemisthemanager,whobenetsfromexpertsupportandisinvolvedbothfromananalysisperspectivethroughtheend-of-yearinterviewandintermsoftrainingrecommendations.

Developing managerial organisational skills advcd mgi dvm icy: hks cs cssd h

dms d cvig wid g isss, mys b sd i hi

ssi dvcm. ths mgm wkshs ccd 55% iig

giv i 2010. tiig is dsigd bv sgh mgm dsdig

mys, g h w-big d s dvm s.

I 2010, i dh dvm iviws, b disigishd m h ssssm

iviw, w i c s, big hm k sck hi ssi

dvcm (y mgs id his w css).

Oering more training to as many as possible I-hs iig ccssib : xdi iig Vibc ms ms

4% h sy bi, cvig 1,800 ms iig i 2010.

I 2010, 800 , m s cgis, bd m iig: wks (85%),

s (97%), sciiss d svisy s (76%), mgs (80%).

th g iig d chgs vy y, s ci h cmys sgy

d h ds s.

Encouraging individual initiative Sg icy cgig h s idivid im iig (Di): 19%

h Vibc wkc civd Di iig i 2010, cmd vg 6% v

Fc s wh.

S vy my i cciig s ds wih hs h cmy

(I m civ i my wk vim, I ici, I cib, c.)

Imvd w-big, i bc wihi h cmy, icicy d sdvm (sss mgm d s dvm iig ccd

35% iig giv i 2010).

I 2010, Vibc issd is s qici bsd cqid xic chici

my i r&D.

Focus on

emergingeconomies

Brazilas ig is bs

d mi ckg, Vibc

Bzi ms h g h

cs dy sis is s.

this b gs ci

70% h cs sy d

schig s v id

24 mhs. F m mys

h sbsidiy, his icy msm civ cvy

givig bih d b w-big

hi chid. Si skig

bs, mys h

sbsidiy wh hv m h

y svic c b

m h iig gmm

imd dvig i h

vis ds cmy civiy.


28/12026

2010annualreport

AREASFORIMPROVEMENTVibc gy ds is

mi icis i d

imis bh is

iss i h wkc

d cmiivss i h

mkc. a w -shig

gm wih sivs mgm d mys

wi b ccdd i 2011.

Remunerationand social protection

Virbacsremunerationpolicyistheresultofalongtraditiondevelopedbymanagementwithsocialpartners.Allaspectsofthepackagearetakenintoaccount,comparedtothemarket,andreviewedonthebasisofeconomicdevelopments,employeeexpectationsandthecompanysneeds.Thepolicyismeanttobeattractiveinordertorewardeachpersonsrelativecontributiontothecompanysperformance.

Ensuring competitive and attractive remunerationVibc hs s w bs icy cv mgm s. this icy

is bsd vs ssibiiy d h cmys vis sciis ds. I hs

ics h cmiivss mi icy, ics wds idivid

mc, v svsiy d sbish m dic ik bw idivid

mc d h Gs cmic mc.

Bsids hs chgs, Vibc miis is i mi icy.

Collectively sis bv h h idsy (+5%);

icss which sv chsig w -mgi s (wks,

s, chicis d svisy s);

miimm idx-ikd hidy wc ( 1,370 i 2010);

-shig gm;

-shig gm, which c ch 3.6% xi (vy

iy cd), which his y ss i vg idivid ics 900.

Individually merit increases for all categor ies of employees;

exceptional bonuses;

incentive payments for managers increasing in 2010 and 2011.

Providing employees with eective social protectionSmmig m g sci dii, h sci bs icy is icy cmiiv.

Vibc ws h s cmis imm wkig im dci gm

i J 1998 (c wkig im 34.20 hs wk).

W gms d gms gdig my svigs (-shig, wd

schms, bckd c cc, my svigs s), ims h mk h

dic i ms sci bs.

I gm wih mgm d s, Vibc givs mys h chc ccss

hsig i s d h 1% hsig schm m which v

bd i 2010.

Focus on

emergingeconomies

Chinaov h s w ys, h cs

ivig i Chis ciis hs b

gwig xiy. th mi

cc by Vibc mys

i Chi (bsd i Shghi) is

hw mg, d i ic

hw hv gh y

hsig sb sdd.

t k s ivig i gd

cdiis i h c hy

hsig mk, Vibc hs s

hsig d h hm cqi

hm. ech mh, mys

c ivs cg hi

chic (gig m 1% 17%)

i h Virbac China house fund,

wih h cmy cibig i

h sm i. oc y,

Chis s c wihdw h

sm cqiig hsig.


29/120


Economic responsibility

Corporategovernance

Virbachasestablishedacorporategovernancesystemdesignedtoachieveahighleveloftransparency,riskcontrol,andemployeedevelopmentaswellastoensurethatthecompanyhasagoodimageintheeyesofitscustomersandshareholders.

Ensuring independence o governance structures Svisy bd wih h is mmbs cssid s idd.

adi cmmi wih h is mmbs cssid s idd.

rmi cmmi wih h is mmbs cssid s idd.

Sy dis: Vibc ds c cmis which is sy dis

id dvisy missis cqisii dis.

Following Aep-Mede recommendationsVibc hs dcidd s s c h C gvc cd isd

cmis dw by a-Md. ams is cmmdis c

gvc d mi c cs hv b immd by Vibc(s h h chiwm h svisy bd, g 62).

Ensuring inormation transparencyVibc ss h Gs ci scy wds is shhds by disibig

gy imi wid bic d i ccdc wih mhds gig

s imi disibi. Fici imi h G c b d wb

si www.vibc.cm, wh i c b dwdd d qsis ci ms c

b isd.

emys s k gy dd gdig imi ig h G,

by vi h Vibc i.

Controlling riskstwds h d 2009, Vibc s risk Mgm dm, which is h

css isk mgm h G. Iii icis hv csisd i dwig

m h im isks cig h G, cig isk ws d iiiig h

s ci s.

AREASFORIMPROVEMENTF 2011, Vibc ims xd

is s cv iiy isks

d dy isk mig

mhdgy isks ib -

c mi sbsidiis.

27

2010annualreport


30/12028

2010annualreport

Economic

performanceOperatingintheeldofanimalheathforoverfortyyearsandastheleadingindependentoperatorinthemarket,Virbacaimstocontinueitsgrowthinharmonywithitsenvironmentandthepeoplewhoworkforit,ensuringtheGroupslong-termsurvivalthroughprotableandsustainablegrowth.

Proftable and sustainable growthVibc csidd is gwh i 2010, bigig vg gic gwh v v ys

7.1%. this gwh ms 10.8% i 2010 d is d dvms i w

mi s civiy: cmi ims d d dcig ims.

Cd gwh sgy h is fcd i sdiy gwig ss, d

hdc.

a sb miy shhd bs h s sdy d g-m gwh h h

sh-mism.

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

3,500

500

1,000

1,500

2,000

2,500

3,000

100

200

300

400

500

600

1,200

200

400

600

800

1,000

80

20

30

40

50

60

70

10

ChangeinGroupsalesandheadcount

Changeinnetincomeandstockmarketcapitalisation

Sales(M)

Netincome(M)

Headcount

Marketcapitalisationat31/12(M)


31/120

Investing and innovating to ensure the companys long-term

survival and independence

Mgb db vs h w Vibc s gic gwh d cqisiis s iss . th vib scs hs b:

cig ivi cssd sisyig csm ds;

vibiiy cciy s big h G dv by ms

x gwh (cqisiis cmis, dcs, civ igdis).

201020092008

40 M

35 M

30 M

15 M

10 M

25 M

20 M

5 M

R&D expenditure

201020092008

35 %

30 %

15 %

10 %

25 %

20 %

5 %

Debt / total equity

Supplierpartnerships

Whateverthetypeofpurchase,Virbacisguidedbyunwaveringprinciplesbothwithregardtotheselectionandmanagementofitssuppliers.Inthisrespect,thecompanyguaranteesequaltreatmentofcandidates,andlookstobuildlong-termpartnershipswhileensuringthattheyrespectethical,environmentalandsocialvalues.

Ensuring equal treatment o candidate suppliers ogig sch w sis cmmid imvm icy (sbishd

sis gy skd d).

n-discimiy si dig (sddisd css cig cdids

v yig d).

Cmis bids h bsis idic bjciv cii (ci mc,

fxibiiy, imvm css) d cciv dcisi-mkig ivvig svics

ccd (cd hics G chss).

AREASFORIMPROVEMENTt ci gwig i

b d ssib m,

Vibc wishs s is

sgy wiig mk sh

bsd gic gwh i

ch h mj im hh

sgms (cmi ims

d d dcig ims)

whi mkig gd cqisiis

cmis, dcs

civ igdis imv is

ig biiy mgi by

vg h i y,whis miiig mgb

db vs.

75% purchasessbjc gii cvd by

bs cic (vi, csi,

dwig ccs, d miig

cds).

100% industrialsubsidiaries h G sh h sm

csi, si ssssm d

ig cics.

Annualtendering Bestpractices

29

2010annualreport


32/120

Building long-term supplier partnerships rg disibi qsii ky cii (ci hh: bc sh,

d ss sm, ss).

Fcig i h sgh si is (sc cs, ym ms,w-, idiss, ssiism).

eqiis md by sciisd cmis (cdiwhiss, sbiiy).

Miig si ivsm icy (g-m sviv).

Maintaining commercial relations with suppliers that respect

ethical, environmental and social values ehic cmmim by sis ( ci discimii, sc gisi

gvig chid b, sc vim gis icb i hi cis).

ehic, vim d sci cii h di w sis (ssssm

qsii hvig ss cc dkig).

AREASFORIMPROVEMENTVibc ids iiis

ci chsig scs

is sgic sis s s

sc sis h s

imvig qiy d cmic

mc.

Customerrelations

Asadedicatedanimalhealthpharmaceuticalcompany,Virbachasaspecialrelationshipwithitscustomers.Itconsistsofworkingforthelong-term,promotingtherationaluseofveterinarymedicinesanddrivingthesustainabledevelopmentofthevariousstakeholdersinthesector.

Taking a long-term view o customer relations Dvig svics icy imd wdig csm yy d sig

cis i hi g-m dvm (mgm iig hi ciics, s...).

Cmmci icy bsd ccs h, h h cgig sg, i-

iis g-m ishis d yy.

Promoting the rational use o veterinary medicine ecgig wss mgs vs wy mgig hgis d iig i w

digsic mhds dci, i h svic b s mdicis h sk

imvd im hh.

Focus onemergingeconomies

IndiaI h vigs, Vibc Idi

s c bds iig

gmm hig hm

mk hi bdig m

b. th mi sgms

: bvi, vi, d y.

t h hm gw ssiby

d cg g-m

ishi, Idi sbsidiy

ss sv dm

icis. th ms im

sc is iviig ii ds

giv hi hghs ms

sch s iiiy, imvm

dci, s siicids...

Vibc s s iig

bsvc (wig sg

cmmdis) d

m d s mgm.

Fiy, hgh is d shwsi vigs, sbsidiy

ms i s diy

cmms d viy

mdicis (vidig iig

s i c dic: vids cs

sdis, bchs d chic

c shs...).


33/120

edci wk viis d ms gdig cmic (wih gd

dmiisi, dsg vs, di d s i) did by h dvm

b dcs. a ch h imis vs mdicis d vids h

dvm i sisc dcs.

advic d s viis d ms vi xsiv cmmici bs

cics gdig h s mdicis bh d dcig d cmi ims

(gids, d shs, DVDs, iig...).

Bestpractices

Launch in 2010 h ibiic ty i Fc cmbid wih ssiiviyss d ibigms (big s h ms sib ibiic d s vi

civss v g ids).

Driving the sustainable development o

animal health stakeholders pgssiv imii dc ws h csm sid: dvm bk

ckgig d dci i h vm id mi (migi wds cic

dcmi y).

Icsi/vccii: isig wss mgs h g bic (23d dii I v

my , I hv i vccid cmig) d isig h wss ws d vigs

gdig h igi ims i b i (wds m h Fdi deis

Vibc, c di wdig d cgig hi iiiivs i his dici).

tiig vs wih h im g m dvm hi ciics by imvig

hi mgi skis (V Mg i Fc d pcic Gwh pgmm i h uK)

imisig qiy svic vidd im ws.

Vccii cmigs gis bis: hvig dicd h scg i Fc, i

2010 Vibc vidd bis bi esi, Fid, Iy d asi.

Ilovemypet,Ihavehimvaccinated2010

12 000 posters i w hs, is ics, im scis, schs,ssciis d bs shs i v 650 ciis d ws css Fc.

AREASFORIMPROVEMENTI 2011, dym h

e v mdi

sig mi sd

viy mdici sg (bs

cic gids).


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F inancialreport


35/12033

2010AnnuAlRepoRt

Financial report

Management report

th coso idad sa s o h Gro amod o

572.8 miio, wih srog growh i 2010 rom 22.6% a

aca ras, 15.4% a cosa xchag ras ad 10.8% a

cosa ras ad sco. this rormac rcs srog

orgaic growh i h comaio aima sgm, rom

13.4% a cosa ras ad sco, wih h ach i ero

o w rodcs ad h sccss o h efro ad Firoi

rags, x ra arasiicids immd i a coris

a h bgiig o h saso, ad h uid Sas wih

srog growh across a rodc rags ad accss o w

disribors or Ivrhar .

th ood rodcig aima sgm has aso icrasd rom

5.2% a cosa ras ad sco, wih a good dvom

i h ca sgm, i ar as a rs o a srog rd i

mrgig marks ad mor avorab wahr codiios

ha i 2009 i som ky coris i h Sohr hmishr,

ad ohrwis by gais i mark scios i ero dsi

a sggish mark, aisd by h Frch mark dowr

ad h difcis cord i idsria brdig (igs

ad ory). Sccss igraio o arasiicid rags ad

h vaccis acqird arir his yar rom pfzr, oowig is

acqisiio o Wyh ad is For Dodg vriary divisio i

Asraia, brigs h oa growh o his sgm a 18.2% I

2010, h Gro aso bfd rom vry avorab c

o crrcy caios d o h drciaio o h ro,which rrss mor ha sv ois o growh i rovr.

2010 highlights

I 2010 h efro ad Firoi xra arasiicids bcam

h frs Virbac rodc i ero or hir frs yar o sas.

Wih ovr20 miio i sas or h ir rag i his ara,

hs rodcs f as a crdib araiv o h arasiicids

mark or comaio aimas ad srgh h Gro's

imag as a major ayr i aima hah.

I Jaary 2010, Asraia igrad sccssy h arasiicid

ad vacci rags o For Dodg. now Virbac ca m

h mai rarig ds by orig h mos comrhsiv

rag i h mark . th i s bs iss has grad

26.9 miio i sas, haks i aricar o h Cydci

rag (23.8 miio) which xcdd iiia sas orcass .

I Jaary 2010, Virbac has orgd a sragic aiac i h

fd o vaccis or ood rodcig aimas by ar iciaig i

a 30% s ak i urgaya Saa ea aboraory, or a sm

o 3.7 miio Amrica doars. this aiac wi ab Virbac

o rovid a basis or dvom ad rodcio o hs

vaccis, ad o r io his imora mark sgm or

h Gro's xasio i lai Amrica .

I coiaio o h dvom work comd as yar,

Virbac has s major advacs i 2010 o a vacci agais

cai ishmaiasis, Cailish. th rgisraio dossir o

h vacci has rcivd a avorab oiio o h eMA

(eroa mdicis agcy) o 13 Jaary 2011. this oiio

si ds o b vaidad by h eroa commissio o

obai h eroa rgisraio wihi wo o hr mohs.

A h rodcio v, h work o h w ishmaiasis i

ocad i Carros s ar d i 2010. this i wi bcom h

frs eroa a sig a iovaiv rocss or sig s

maacrig.

I Ari 2010, Virbac has mad is frs dirc ivoicig i Chia

i h comaio aima sgm, a oraio ow ossibhrogh h sabishm o a fci disribio sysm

(dirc divry o h csomr) ad aiowid covrag.

Virbac ow has a bsiss aorm adad or srghig

his romisig mark.

th Amrica si o S. lois bcam h w rodcio

si or eqimax i ero. this si has rcivd h Good

Maacrig pracics (GMp) eroa criicaio or

h rodcio ad disribio o eqimax i ero. Virbac

srghs is rodcio caaciis i h uid Sas

or h eqimax rag, h scod Virbac rodc wih ovr

17.0 miioi sas i 2010.

2010 aso saw h craio o h Risk Maagm darm.

throgh his w ar, h Gro has bi srgh i

ordr o addrss h growig comxiy o is virom

ad h miiciy o cosrais i a aras.


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The Groups 2010 business performance

Perormance by segment

Breakdown o sales by segment

I 2010, G ss s 10.8% cs s d sc, h bck ssid gwh i h w bsisss: 13.4% ih cmi im sgm d 5.2% i h d dcigim bsiss.

Companion animalsas 31 Dcmb 2010, his civiy ss 60.1%

G v d gd sg gic gwh 13.4% cmd s y.

th siicids sgm is divig gwh wih ics 26.0% d h -y imc e d Fiis- d sy ss i e, cmbid wih sigicgss Ivh i h uid Ss sd by isigw disibs i dig h y.

th qi g ws wih gwh i 2010 d disys imvm 21.2%. this gwh is chivd he mks d h amic mk. o h ,

Vibc sigd i 2009 w disibi gm wih hBimd Ic., which givs i sc i h uid Ss dCd h x ys.lik s y, h sciy d g cis gwsgy i 2010 (13.8%), miy d h sccss hVibc V Cmx dc g i Fc.

aibiics d dmgy cis gw i 2010 (12.4%),hks Bimx, ei-oic d adm s- ss i huid Ss.

Food producing animalsthis bsiss ccd 37.7% G ss . I is 5.2% cs s d sc. this gic gwh is h s

csd ds bw h bvi idsy (xcdigsiicids), ics 13.8% d h miig gsicdig idsi bdig (igs d y) which wdw by 10.1%, cig mk sii h misdic i e.

th y 2010 ws mkd by h cqisii i asi hbvi d sh dcs g (siicids d vccis) F Ddg, h gwh h d dcig imsgm cs xchg 18.2% .

Other businesses

ths civiis, which s 2.2% ss, csd scic civiis h c b d s cmi imsd d dcig ims. ths icd miy ccmcig md by hid is i h uid Ss dss bis vcci i e. Ss gwh i 2010 is dmiy h sccss ds bis bis i Iy d esi.

2010 salesat actual rates

Like-or-like growth by segment at constant exchange rates

in E million < -5% -5% to 0% 0% to +5% +5% to +10% +10% to +15% > 15%

psiicids 89.8 26.0%

Immgy 56.9 4.4%

aibiics/dmgy 55.6 12.4%

Sciis 64.7 8.9%

eqi 30.6 21.2%

Sciisd d 23.4 13.8%

oh 23.5 0.6%

Companion animals 344.5 13.4%

Bvi siicids 41.3 -7.7%

Bvi dcs(xcdig siicids)

124.5 13.8%

pig/y ibiics 36.7 -10.1%

oh 13.6 16.6%

Food producing animals 216.1 5.2%

Other businesses 12.2 32.4%

Sales 572.8 10.8%


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Perormance by geographic region

Geographic breakdown o sales

ov h wh y, h gghic gis cddsiiv gwh, wih db-digi gwh i nh amic,li amic, asi d h pcic, which bs m hcqisii h F Ddg dc g.

Europeth v h G's e is chd286.5 mii i 2010, 8.5% c s cmd s y, i.e. 7.8% cs s. Gwh i e cmsm sbsidiis xc pg, which hs sggd i hidsi bdig sc d otC x is wihsg cmii i h mk siicid cs. thmj dvms h hv cibd h mci e :

Franceth v is gwig idy cmd h vis y,i.e. 8.7%. I h hic sc, Vibc shws sg gwhcmd 2009 i h cmi im bsiss, hks xc ss i h Vibc V Cmx d g, h

qi g d h -y imc x siicidswih e. I h d dcig im sgm, gd ssmc bvi dcs imid h giv imc ss h idsi gs.

I gd disibi i otC chs, 2010 igs wvby imcd by sg mc h Fiig which gy s dcis i h siicid dhygi gs.

Germanyth y ws mkd by sg gwh 12.0% h

hd, h imc cy chd dcs schs ei, Vibg Cis B i cmi ims dpwfx, Shf ijcb i d dcig imsd, scdy, h Si ss csidi chd i2008 d Bvidc, which bd m h bsc i hismk cmig dc.

ItalyVibc Iy gw by 16.6% i 2010 hks my wiig hd h rbig Sg2 bis vcci, h ch e, d ss d dvm digsic dcs.

United Kingdomth sbsidiy ws 5.5% cs xchg s. thcmi im bsiss bd m h -y c h e chig h siicids sgm d sigicgwh esoic, Sxi, h cic idici ddci gs. th d dcig im bsisssggd his y i ic, i h Vibmc g whichcd sg cmii.

Benelux

tv 2010 s by 5.1%. th cmi im bsissis gwig d e's -y c, vcci ss,

h ii g d h qi g. th d dcigim bsiss is miy S Msid d Vibcbvi immmy m. th d is vsd idsi gs h cd by w gis hs ibiics.

Export Scandinavia Eastern EuropeG ss 18.1%. th cmi im sgm is d miy sigic ss h Zi shic i rssi, hchig ei, d h csidi siis

dci (aizi, Si), dmgy (ei-oic)d qi (eqimx) gs.

in E millions

2010 2009 Variation at actualexchange rates

Variation at constant

exchange rates

Fc 106.5 98.0 8.7% 8.7%

e (sid Fc) 180.0 166.0 8.4% 7.3%

nh amic 83.4 66.9 24.7% 18.4%

li amic 39.2 29.4 33.5% 17.0%

aic & Midd es 30.7 26.0 18.0% 1.9%

asi 69.4 52.7 31.7% 19.1%

pcic 63.6 28.4 123.9% 83.3%

Sales 572.8 467.4 22.6% 15.4%

th mj cibis by gghic s ws:


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North Americath v hs is shy m 18.4% cs xchgs, i.e. 24.7% c s . I 2010, Vibc uid Ss

xicd sg gwh i h cmi im mkhgh h qi g wih eqimx, d h isiicids g wih Ivh d Vib, d s hghgd mc dmgy dcs, d dcsd ibiics, giv h bsc mj cmi ihs gs.

Latin AmericaI his gi, h G sw 17.0% gss i ss cs xchg s, h is 33.5% c xchg s.

Mexicoa cs xchg s, h sbsidiy cdd gwh

17.6%. I jyd vy vb xchg imc d h cii h Mxic s gis h , whichis gwig 32.4% c s. F cmi ims,vccis, which s ximy 40% ss, mdicy w d shwd sg gwh gi i 2010. thshic sgm is d h d w Zi.F d dcig ims, h ig d y bsiss is ck hks Smx mixs. aibiics idicd hm siy disss i bvis d igs, sch sSh, Mxf d Fis s cibd his gwh.

Brazil

Vibc Bzi gw by 9.4% cs s, i.e . 28.5% c s wih siiv cibi i cmi imgs m h vcci gs, i siicids sch sedgd, h dmgy g wih h ch amyd Cvc. F d dcig ims, Mibi dSh bvi ibiics . I , h ig dy ibiics g is dw d h cci h disibi gm wih pz i Bzi. th ss hisv ws gy s by ss i tibiss, mi-scisibiic cqid i J m Iv/Schig-pgh.

Asiath ics i v chd 19.1% cs s, i.e.31.7% c s d miy Vibc Idi d h G'sdvm i G Chi.

IndiaVibc Idi cis is db-digi gwh 18.8% cs s, i.e. 32.1% c s. th d dcigim bsiss cis gw sgy d miy dcs bvis, sch s osv, Vim d agimi,d ss x dcs igs d y.

Greater China2010 is xc y i his gi h disys gwh

cs s 40.1%, i.e. 47.5% c s. this mcws div by icsig ss i Chi h rbig mvcci, d cibi m ss Vibc tiw wih hch adm s- d Cvc cmiims. F d dcig ims, h tiws sbsidiycdd sg bsiss civiy Sh d pmdx.

ThailandI 2010, Vibc thid cibd siivy hmc h gi wih gwh 37.4% cs

s, i.e. 57.5% c s. F cmi ims, gwhws div by ss vccis sch s rbig m dCig. F h d dcig im bsiss, i is h ss dcs igs d y s w s bvi ibiicsh ci gw.

PacifcVibc ss i h gi sd h gs gi h y cs xchg s 83.3% d 123.9% c s.this gwh is miy d h w wig siiv cs:h igi h F Ddg dc g i asisscid wih highy vb xchg iy i 2010 h asi d. a cs s d sc, h gwh

h gi is 5.8% .

Australiaexcdig h cqisii c, ss s 7.7% css cmd s y, i.e . 31.9% c s. thcmi im bsiss, which ccs m hw-hids ss h sbsidiy, xcdig c hcqisii F Ddg dcs, hs d gwhhks gd mcs i h x siicids dvcci gs. th d dcig im bsiss bsm h cibi w bvi siicid dcs,i ic h Cydci g which gd 23.8 mii

i 2010.

Arica & Middle EastVibcs ss i his gi imiy div by VibcSh aic. a cs s, h v h sbsidiydcsd 1.0% cmd 2009. I cs, c s,gwh is 18.6% giv h sg cii h dgis h i 2010.th v dci fcs h ss disibi cci h ig d y ibiics sgm. ex ss aicd h Midd es, miy cmsd d dcig imdcs cid is i 2010.

Changes in Group scope

o 5 Jy 2010, Vibc hs gd sgic ic i hd vccis d dcig ims, chig 30% ci 3.7 mii amic ds h ugy Se by. this cmy, wih sc v yys i ugy, hs g xis miy i dvig dmcig bvi vccis, which i mks i ugyd i li amic cis. Is v mdi 2009 7 mii amic ds wih gd v

biiy. evy, Vibc wi hv h i cqiS e's i sh ci. thgh his ic,S e c c h sg bsiss m hVibc ss idc is vcci g i myii mks. Vibc i , wi b m Se's skis d kw-hw i h d bigy, which wi



vid bsis dvm d dci vccis d dcig ims d hs why ihis mk sgm. S e is igd by h qiy

mhd i h 2010 ici sms h G.o 29 Jy 2010, Vibc sigd gm wih pz h cqisii sm asi viy dcsd sss chig h, my dci si. thm h sci md 11.7 mii asids xcdig cqisii css d x xss. thiscd civd v m h asi cmiid csm cmmissi. I is h divsm sssqid by h cmmissi wig h c cqisii bypz Wyh icdig is F Ddg viy bsiss.thgh his gm, Vibc hs cqid h ighs g dcs diiy mkd i asi by

F Ddg d imd d dcig ims, miybvi d sh. I csiss siicids (80% ss)d vccis (20%) which chivd v d36 mii asi ds i 2009. this w i wi cy d cmm h c g dcsh Vibc asi mks vib is csms. thiscqisii is qiid s bsiss cmbii dIFrS 3 visd d is gisd s sch i hs smmisdcsidd ci sms. th dic bw hcqisii cs h sss d h i v cqid sss shwd giv gdwi 11.5 mii cddi h -c icm h icm sm

h G.

Scope as at 31 December 2010

tb sbsidiis d is s 31 Dcmb 2010 issd s x h ci sms g 108 h .

Research,

Development & Licensingth y 2010 ws mkd by vs d gss rDl(rsch, Dvm & licsig) is.Fis i e, biig 13 Jy 2011, hvb dcisi m eMa Cilish vcci, dsigd v ci ishmisis, is ssi s wig isig i Mch 2010. this vcci ss mj dvci h gh gis his siic diss i dgs. th imk his vcci is im, d is xciyiviv ms b highighd. th dvm his vcci d is dmsd civss s sciic bkhgh h gs byd h vii d.

ei gisis i e cid v 2010,cmmig h s 2009 w h s hisdc i e cis sis ddisibi chs.

th gisi h Vf viy shic,bsd is, ws bid i h mj ecis i 2010, d Si's "wv-mh" vsi

dy mkd i "six-mh" vsi.

rDl cs sid e, cd i S. lis (uSa) nh amic, Gdj (Mxic) li amic,Sydy (asi) h asi/nw Zd gid H Chi Mih Ciy (Vim) h asi mid,hv b sghd wih sci sh cqisiis md i h d d dcig imvcci i ugy (S e) d asi (dc sbgh m pz).

a h gy v, h scs s i Sh aic

(Jhsbg), Bzi (S p), Idi (Mmbi) d J(osk) ci mk hi cibis h visr&D cs hgh hi c sc d di dc s h qims hi cy. thys g d mi dvms dcs hdmsic mk. a high i 2010 is wsdvd sghig gisi s isi d m chgig gis i hs cis.I ddii hs i mic civiis, wgisis sch s Cvc, esoic, e, msvccis h i d ci g, rixi, Vibgs,Vibmc D w bid i di cis sid

e.

Ivi civiis i ais d li amic s hv bsghd wih h sbishm dc ivig ddicd h ds hs w s d cdi Bs ais (agi). this ivi g wi y xisig rDl scs c d dv dcs hcmm ds hs w s.

I h uid Ss, h nh amic rDl sc wssghd, icy i h gy is dwys i sscii wih Cs rDl scs.

th e gisi ws bid i h uid Ss iJy 2011. tw h mj gisis gd by hFDa (Fd d Dg admiisi) ms b bid i mid-2011. th i amic jcs ws sghdi 2010, bh i h hmcic id (FDa) d i hsiicids id (epaevim pci agcy)d i hs w jcs i vis sgs cmi.

Gby, h Vibc g's sgy i dc ivihs b sghd i 2010 wih v v w jcs

d i h i, wys scd hi cmicv d ivi civd by csms.

this sm i sy is ccmid by dymicd igs mgm h i i bsd vcii, d iv h mk d ikihd sccss.


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Vibc sds 6.5% is v rDl d dmssh dqcy h mgm his civiy hgh sdy sm gisis w dcs i s

is civiy.

Production

France

2010 ws mkd by h ch mj jcs h Cssi. ths, s h G's gwh, Vibc mdissis ids i bs by vidig cciy icss, w cssigi d gy cmic m h chgsi hmcic d vim gisi.

t c c xcc h dci sims (bigic d hmcic), h dsig dxsi h vcci dci i hv b chdd h w ijcbs i bidig jc. a im

wk biig bidig mis d vidi m asshs b ccmishd; h ws sccss h d h y.

Vibc mvd h scdy ckgig vccis i cdim wih imcig h sy chi. Simsy,Vibc hs s d h csci h ciiy which widc h civ igdi Cilish. th siiciddci si hs s b dsigd h ccmmdh ssi qim h mc h ed Fii gs.

Fiy, h s h s wksh h Mgy Vxi si wi b Vibc bi v dci d sms.

a y idsi jcs which ds wih cmic schds wig s - is wihi h imwd.

Internationally

Mexicoed Mch 2010, Mxic idsi is hv bgisd, which hs smid h s myivi. emhsis ws cd h dvm dmwm hs w gisis.

I , h dci m hs cid dv iscis imvm gs by ddig w w dciis d SMeD (Sig mi xchg di) d dvig

h -sysm i h whs.

a hs cmbid cis hv d siiv ss ims v csm svic, which s m 94% 98% , d s i dcig ivy vs.

Australiath mi v h idsi ms i asi wsh cqisii h dci h F Ddgdc g. this si, cd pih (60 km hws Sydy), hs m h hcs which 7.000 m2 bidigs. I is ddicd h dci siicids d

vccis bvis d sh. I h mdim-m, Vibcs ivs i his w si :hc cicy d fxibiiy; imv h chic cbiiis ci qimd ciiis;imis h dci sis i asi, d; w GMp gi qims.

Wih his cqisii, Vibc asi hs dbd is siz ims mb mys d ss, d s s, i iscd hid i h G bhid Fc d h uid Ss.

United Statesa sv iscis, h idsi si i S. lis hscivd qici h mc d disibi smi-sid, dmiisi hmcics i e(qi s) d ic iqids x s. Cy,his ciiy is h y h c dc hs dcs bh h uid Ss d e.

Mv, wig h cs h F Wh ids isi, h dvm h S. lis si, w y i,ws isd i 2010.

I 2010, amic idsi is s imvd iscsm svic by dcig dys i divy d imisigis chss, which sd i svigs hi sis wmis.

Vietnamth s Bi Si Ii gs (iqid d dyms), visy mcd i thid, ws sccssycmd i h scd q 2010.

I ddii, w b dci i ws isd cv

h qc mk ds i Idi, thid d Vim.

Mv, sigiic icss i dci vm i civiis h d bsy y wih ics 170% h chws i, 50% h wd i d 40% h iqid i cmd 2009.



I ms gisi, dci d mic svicshv b gd i h sm dm mximiscicy d dymism h m.

Brazilpdci i 2010 is gwig hks dc chssch s C vc, Vf, BckHm, Vggi D,aqd d amy.

Dig h y, vis iig css hv b gisd h idsi m imv h mc isis. nw cds hv b sbishd; hiimmi hs sd i im svigs i h dci im dcs.

I , Vibc Bzi hs sbishd idics ck

d mi csy h mc dci civi is, hs idics ysd by diy civiis h :ig, dci d qiy c. this ch wsicii h sis b immd d chiv id ss.

I 2010, Bzi s dvd w qim hiqid dc i. this imvm wi gd h cmy wih gy qims d b d y ics i dmd.

South Arica

th i i i ivs k i h cx c isimvm hv sd i sbsi dciviy gisi 2010. th gisi h dci dmsiiid i 2009 ws cmd i 2010 d w ws m civ ss mgig ds. I ,ivy dci gs w chivd, wih imcigh csm svic h hs b miid high v.

Review of the 2010

nancial statements

Consolidated fnancial statements

Operating perormanceC ig s gw by 33.2% cmd s yd imvd mgis chss, cd ics x xss, h cs cqisiis d h siivimc xchg s. rv m diy c iviismd 572.8 mii ics 105.4 mii (22.6% c xchg s) cmd 2009.

th mgis chss by 23.8% , ics gh h h v. this ics is imiy d h -y c high mgi dcs sch s echd i 2009 i e, d h sccss h Ivhd dmgy gs i h uid Ss.

oh c ig xss md 313.4 mii.thi vi, sighy w h h v m diyciviis is d high cmmci xss dmkig miy i h ais d h cqisii F Ddg dcs i asi d h dvm h ss c i Idi s w s i e d nh amic

wh hvy mkig xss hv b cdcd s ss. admiisiv xss cid d gwig w ims sw h v m diyciviis (+10.9%).

oh -c icm d xss (10.1 mii) h giv gdwi isig h cqisii sss sdby pz i asi, mis h sc ig css d smdis d his sci.

th ici s is sighy high d md -1.6 mii cmd -1.9 mii h vis y. this

vii is xid by w is xss sig mh db i, which md -30.0 mii i 2010d -33.0 mii i 2009 s w s w is s.

Icm x md 21.8 mii, by 30.3%. th dci i h x (31.5% i 2010 gis 32.5%i 2009 sig h sch x cdi) cms miym dii x s bd.

th m cgisd d sh icm ssciscsds h icm Gm d ugycmy i which Vibc hs sigic ifc.

th s h id ibb -cigiss is sb cmd 2009 (0.9 mii).

n s ibb h ws h cmyws 63.4 mii, 63.4% v 2009.


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Consolidated fnancial position and fnancingth G's csh w md 67.6 mii gis58.8 mii i 2009, ics 15.1% . n db s

31 Dcmb 2010 hs dcsd dmicy d sds 3.1 mii. n db h d 2010 ws 0.05 imscsh w m is d md 1.0% csidd shhds qiy d visis (icdig-cig iss).

th ics i gib sss is d ivsm by h cmy (csci w dci si si ms d dci i h vcci gisishmisis, cqisii qim h dci i)d h kig v dci si by Vibc asi ih i cdcd wih pz.th d wkig ci is m s y d md

51.0 mii gis 44.3 mii i 2009. this icsws imiy d icss i ig wkig cid icy by h isig v ivis d hcqisii dcs i asi.

as 23 Dcmb 2003, Vibc hd d i cdi m bks id sv ys d mximm 100 mii. th cdi i ws id i dvc 15 Jy 2010.Dd 16 Jy 2010, Vibc d w i cdimig 220 mii m bks id v ys, wih h i xdig i y.

I his gd, h G ms w ys cmmims:cmmim sc ci is:- csidd db/csh fw m is;- csidd db/csidd shhds' qiy;cmmim bish ci sms.

th w cdi i is sd h d 2010 d hG cmis y wih is cc cmmims.

as 31 Dcmb 2010, h h s sbscibd i 2009 id v ys d 30 mii w sd 18 mii.

Statutory fnancial statements

as 31 Dcmb 2010, ss h Vibc cmymd 194.7 mii, 16.4% m h vis y.th sh ss md by Vibc wih h G's sbsidiisis idic h 2009 d ss 87% ss.th miig 13% ivvd dic ss by Vibc i cisi which h cmy ds hv sbsidiy. I 2010, hs h cibd ms his gwh e (-y

c h e chig i 2009, h ds i Iyd esi), li amic d nh amic.

oig s 2010 is 5.9 mii, shy(+4.5 mii) cmd 2009. this ics sdimiy m gwh i ss.

th ci s dcsd by 2.9% d w dividds,dsi h cid dci i ci xss d dcd is xss s s db dci.

th xci ims md -1.0 mii d cdsdcii imiy ics 1.4 mii.

n s x sd 32.8 mii gis30.6 miii 2009.

Allocation o earningsth Vibc cmy d 32,774,547.33.I wi b sd h shhds' mig y dividd 1.50 sh wih v 1.25. I iwih h visis ic 243 bis h Fch g xcd, i shd b d h h dividds disibd

qiy h 40% disc mid i ic 158-3-2 hFch g x cd, wih his wc y vib idivid shhds dmicid i Fc.

th igs h id wi b cd s ws:dividd disibi 13,071,528.00; id igs 19,703,019.33; s h id 32,774,547.33.

th m h dividd sy shs h d ym wi b cd rid igs. Dividds wib id 21 Jy 2011.



th dividds civd by idivids sbjc icmx wig h ici 40% dci d ixd wc. I 2010, h m h wc is

s 1,525 sig d 3,050 cs icm d i 2010. Sci cibis (CSG, CrDS, 2%ddci) hv b ddcd m h ym dividds h v 12.1% icm d 2010.

By i i h biciy cmmicd hcmy, dividds c b sbjc wi hhdig x icm 18% icm d i 2010. I wi b19% icm d i 2011. Sci cibi ddcis ddd his wihhdig, h v which is 12.1% icm d i 2010 d wi b 12.3% icm d 1 Jy 2011.

ths mchisms icb g iis.

Appointment o a new memberto the supervisory boardth im oivi Bh s w svisybd mmb wi b sd h shhds' mig, id h ys dig h di yshhds' mig cd i 2014 v h ccs h 2013 id.

oivi Bh, gd 52, dc hmcy, hd MBarom HeC paris, is currntly dirctor and chi xcutiv ofcrh Biish cmy Smih & nhw pc. H hs v 27 ys xic i mdic chgy d hmcics.H bg his c rss uc, h wkd ms12 ys h GxSmihKi g, wh his s siiws si vic-sid d dic e is.H h jid h abb g, wh h svd 10 ysd wh h s sii h hd ws xciv vic-sid h wd hmcics divisi.

oivi Bh is mmb h ni hmcy cdmyd h acdmy chgis.I h si sd h shhds' migis dd, h svisy bd sh cmis six mmbs,h idd d h a-Md cd cgvc.

Share buyback programmeth diy shhds mig 15 J 2010 hisdh Vibc cmy by bck shs i ccdc

wih ics l225-209 et seq. h Fch cmmci cdd i i wih h ms h bybck s i hscs bishd, i ccdc wih h visis hscy diciv h cm i c 20 Jy 2007,by ssi disib d h cmys wbsi 13 My 2011.

as 31 Dcmb 2010, Vibc hd his s,39,050 sy shs cqid h mk 2,637,088 xcdig s, sig vg ic 67.53 sh.

Dig h y, h cmy bgh 94,504 shs icdig82,779 shs ( vg ic 84.57) d mk-mkig gm 11,725 shs ( vgic 88.76) s sck g . Vibc ssd 89,141 shs icdig 82,341 shs d mk-mkig gm ( vg ic 85.58), 6,800shs (sd chg) s sck g s.exss g ddcd m hs scis.tsy shs s 31 Dcmb 2010 sd 0.53% Vibc's ci d w idd mk-mkig dsck g s.

a si wi b sbmid h v hshhds mig hisig h cmy by bck 10% h ci. pchss my b md sh iqidiy cii h sh mk vi mk mkcig iddy d iqidiy cc i i wih cd hics cgisd by h aMF ( Fch cimks hiy), sck g s d c cidci by cci h chsdshs, sbjc di by h shhds' mig h hisi h cci shs.

th mximm i chs ic my xcd 200.Wh ccig h mximm mb shs, shsdy chsd d h mid ihisis wi b icdd, gh wih hs h cdb chsd d h mk-mkig gm.

Dividends over the past three fnancial yearsI shd b cd h v h s h ci ys h wig dividds w id :

in

Dividend per share Income eligible or deduction

under article158-3-2 o theFrench general tax code

Global distribution

2007 1.10 1.10 9,471,454

2008 1.20 1.20 10,404,230

2009 1.32 1.32 11,447,597


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2010annualreport

Proposed capital decreased by cancellation osharesI ccdc wih h visis ic l225-209

h Fch cmmci cd, i wi b sd hshhds' mig his h xciv bd id wy-six mhs, dc ci, mims wihi 10% imi by ccig h shsh h cmy hds my hd s s chssmd s ic l225-209 h Fch cmmcicd, my h si giv h xciv bdhisig h chs c shs.

this ssib cci shs ws sg dbdci h G d wi h sc ics i igs sh.

Employee shareholdingps ic l225-102 h Fch cmmci cd,w wd ik im y h, 31 Dcmb 2010,mys h cmy d d cmis wd78.572 Vibc shs, my 0.90% h sh ci vih cmy svigs . pgh II ic l225-129-6 h Fch cmmci cd qis h xdiyshhds mig v, c vy h ys, si hisig ci ics svd mys,whv h shs hd by mys h cmy dd cmis, s dd i ic l225-180, sss h 3% h ci . this si ws sd

h shhds' mig 19 J 2009 iccdc wih h visis ic l225-129-6 hFch cmmci cd.

Non tax-deductible expensesth -ddcib xss cvd i ic 39-4 hFch g x cd md 136,553 i sc h ci y dd 31 Dcmb 2010.

Signicant events

after the closing dateo 31 Jy 2011, Vibc hs cqid h viysss h Syhsis cmy i Cmbi 9.5 miiamic ds. this cqisii bs Vibc Cmbi db is siz by vidig ddii v b vmii amic ds cmsd 60% bvi dcs(miy ibiics d ii sms) d 40% cmi im dcs (sciis). this i isccmid by h ddii h Syhsis ms d iics Vibc's cmmci sc h h liamic mk.

this cqisii is bsiss cmbii d h visdIFrS 3 d wi b gisd s sch i h csiddccs. th ic ci is d sdy.

o 28 Fby 2011, Vibc cqid h ighs Mimi(ijcb sms ciig mis d dcig

ims) Sh aic d ighbig cis, m haimi cmy. a dis ibig his dc g my ys, Vibc scs is sii his mj mk

sgm h Sh aic sbsidiy h hs jyd ys sdy gwh d si s sigic gwh sciv.

Management and

supervisory bodies

Supervisory board

Marie-Hlne Dick, chiwm Vibcs svisybd.exiy c m c: 2013.agd 46, dc viy mdici d hd MBa m h HeC bsiss sch, Mi-H Dickws id chiwm Vibcs svisy bd iai 2006.oh siis hd: chiwm d g mg ok (Fc);m siv ok, chiig pmdic(Fc); chiwm h bd dics phm (Fc).

Cmsi d dics s civd i sc 2010:107,500.nmb shs hd 31 Dcmb 2010: 1,635.

Jeanine Dick , vic-chiwm Vibcs svisy bd.exiy c m c: 2013.agd 74, widw h d pi-richd Dick, JiDick ws chiwm Vibcs svisy bd mb ys.oh siis hd:mg Ivsc, -dig cmy (Fc).Dics s civd i sc 2010: 11,200.nmb shs hd 31 Dcmb 2010: 8,080.

Pierre Madelpuech, m siv hcmy asgi, mmb Vibcs svisy bd.exiy c m c: 2013.agd 50, pi Mdch is esm giig gdd hds MBa m h HeC bsiss sch.oh siis hd:mg asgi (Fc);dic phm (Fc);dic ok (Fc);g mg pmdic (Fc);mg h cmy ais Dvm (Fc);g mg rpG (Fc);mg h a'p cmy (Fc);mg h Sx cmy (Fc);mg h C cmy (Fc);mg h C ngc cmy (Fc);mg h aBCD cmy (Fc);



mg h C'I cmy (Fc);mg h uymxc cmy (Fc).Dics s civd i sc 2010 by h cmy

asgi:

17,500.nmb shs hd 31 Dcmb 2010 vi h cmyasgi: 10.

Xavier Yon, m siv d mg hcmy XYC, mmb Vibcs svisy bd.exiy c m c: 2013.agd 70, gd h Fc ds Scics d pis d Hvd Bsiss Sch, Xvi Y ws my chimd g mg lbis Gdm.oh siis hd:vic-sid h c d Bigi Idsi d Cgy-pis (Fch - gisi) (Fc);dic Gcwy phmcics Ic. (uid Ss);dic Mdic Isi tchgis Ic. (uid Ss);sid h Isi pychiq Si lis (Fch- gisi) (Fc);sid Ghm (Fc);dic phm (Fc);mg h XYC cmy (Fc).Dics s civd i sc 2010 by XYC: 17,500.nmb shs hd 31 Dcmb 2010 vi asgi : 758.

Philippe Capron, mmb Vibcs svisy bd.exiy c m c: 2013.

agd 52, gd h HeC bsiss sch d h Isidds piiqs d pis, phii C is m enasd d c isc.oh siis hd:mmb h xciv bd d ci dic Vivdi (Fc);dic d chim h di cmmi SFr(Fc);mmb h svisy bd G C ps(Fc);mmb h svisy bd d chim h dicmmi C ps Fc (Fc);mmb h svisy bd d chim h dicmmi Mc tcm Sa (Mcc);dic acivisi Bizzd (uSa);mmb h svisy bd GVt (Bzi) ;dic tib Sq (Fc).Dics s civd i sc 2010: 20,500.nmb shs hd 31 Dcmb 2010: 410.

Executive board

ric Mare, chim Vibc's xciv bd.

agd 58, gd h HeC bsiss sch d hd MBa m C uivsiy, ic M jid Vibc iocb 1999 d hs b chim h xciv bdsic Dcmb h y.oh siis hd i Vibc sbsidiis:chim Ib (Fc);dic Vibc (asi) py ld (asi);dic Vsch Ii py ld (asi);dic Mr-067 579 122 py ld (asi);chim Vibc Ci (uSa);dic Vibc limid (uK) ;dic Vibc aim Hh Idi piv limid (Idi).

Pierre Pags, mmb h xciv bd d chiig c Vibc.agd 59, dc viy mdici d MBa gd h HeC bsiss sch, pi pgs jid Vibc i 1980.H hs b mmb h xciv bd sic Dcmb1992.oh siis hd:dic phm (Fc);oh siis hd i Vibc sbsidiis:chim Vibc Disibi (Fc);chim h mgm bd Dg nC

Ii (Fc);chim h mgm bd Vibc nii(Fc);mmb h mgm bd d g mg Vibc Fc (Fc);dic Vibc (asi) py ld (asi);dic Vsch Ii py ld (asi);dic Mr- 067 579 122 py ld (asi);dic Vibc Ci (uSa);chim pp Mcig Ci (uSa);dic Vibc nw Zd limid (nw Zd);ji mg Vibc tizimi GmbH (Gmy);ji mg Vibc phm Hdsgssch GmbH(Gmy);dic Vibc J C. ld (J);dic Vibc K C. ld (Sh K);dic Vibc limid (uK);ji mg Vibc sich GmbH (asi);vic-chim Vibc phiiis Ic. (phiiis);chim Vibc rSa (piy) ld (Sh aic);dic Vibc Srl (Iy);dic Imk aG (Swizd);vic-chim Vibc Vim C. ld (Vim);dmiis Vibc asi pcic C. ld (thid); chim lbis Vibc Mxic Sa d CV (Mxic);dic Vibc Mxic Sa d CV (Mxic);vic-chim Vibc Hs Sa (Gc);vic-chim aimdic Sa (Gc); chim Vibc aim Hh Idi piv limid(Idi);dic Vibc Cmbi ld (Cmbi);


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2010annualreport

vic-chim lbis Vibc Cs ric Sa(Cs ric);chim Vibc Dmk a/S (Dmk).

Christian Karst, mmb Vibcs xciv bd.agd 52, dc viy mdici, Chisi Ks jidVibc i 1984. H hs b mmb h xciv bdsic Dcmb 1996.oh siis hd:mg Ks, -dig y ivsmcmy (Fc).oh siis hd i Vibc sbsidiis:chim h mgm bd Bi V ts (Fc);mmb h mgm bd Fcdx Saim (Fc);dic Vibc (asi) py ld (asi);dic Vsch Ii py ld (asi);dic Mr-067 579 122 py ld (asi);dic Vibc limid (uK);

Michel Garaudet, mmb Vibcs xciv bd.agd 56, gd h HeC bsiss sch, MichGd jid h Vibc g i 1993. H hs b mmb h xciv bd sic Dcmb 2002.oh siis hd i Vibc sbsidiis:mg Vibc d pg lbis ld (pg);mmb h mgm bd Bi V ts (Fc);dic Vibc Ci (uSa);

mmb h mgm bd amd (Fc);mmb h mgm bd Fcdx Saim (Fc);mmb h mgm bd Vibc Fc (Fc);dic Vibc Hs Sa (Gc);dic aimdic Sa (Gc);chim Vibc (Swizd) aG (Swizd),mmb h xciv bd Vibc S. z .. (pd) .

Jean-Pierre Dick , mmb Vibcs xciv bd.agd 45, J-pi Dick is dc viy mdicid hds MBa m h HeC bsiss sch. H hs b

mmb h xciv bd sic Dcmb 1996.oh siis hd:sid h Fdi deis Vibc (cdi);mmb h D Vi Sd sscii;mgig dic abs Dm Sarl+;c-mg h t D lg -dig yivsm cmy.

Compensation o members o the executive board in respect o 2010I ccdc wih a-Md cmmdis, h is smmy h cmsi gd mmbs h xcivbd:

Sums due in respect o 2010

in ric

MarePierrePags

ChristianKarst

MichelGaraudet

Jean-PierreDick

Cmsi d 530,363 366,370 327,655 243,284 50,353

V is gd i 2010 - - - - -

V sck gswdd i 2010 bsd h mhd sd h csidd ci sms

115,355 85,331 79,010 52,542 -

Total compensation 645,718 451,701 406,665 295,826 50,353



Calculation criteria or the variable portionth vib cmsi mmbs h xciv bddds sis shd gs: ss gwh;gwh i ig m diy civiis;s w s scic gs; ivy c;cqisiis (cmis, dcs) .

Other beneftsI ddii h vis cmsi ims, mmbs hxciv bd jy h wig bs.

Retirementa smy did bi si (12.5% c sy d 22% i h v v 30 ys svic)gd h wig ms:v ys svic i h G (icdig i ys s mmb h xciv bd);

b s 60;ish his/h c i h G.

Severance payth cmmims md by h cmy d h cmisi cs is mgs i h v hi ics mid s ws:ic M: 483,000;pi pgs: 404,000;Chisi Ks: 326,000.

a is 22 Dcmb 2008 mig, h svisybd id h xciv bd mmbs

h m. I i wih h visis h c 21 ags 2007, h svisy bd, is 13 Mch 2009mig, vd h cmmims md by hcmy d h cmis i cs i h v hmii h cs h chim h xcivbd, ic M, d vis xciv bd mmbs,

Sums due in respect o 2009

in ric

MarePierrePags

ChristianKarst

MichelGaraudet

Jean-PierreDick

Cmsi d 484,463 332,360 292,492 227,057 50,373V is gd i 2009 - - - - -V sck gswdd 2009 bsd h mhd sd h csidd ci sms

99,180 71,630 66,120 44,080 -


Cmsi id i sc h 2010 ci y csds wih h xd cmsi id i 2010, h cmsiikd h cs h dics i h Gs cmis id i 2010, h vib cmsi id i 2011 i sc 2010 d h bs i kid wdd i 2010 (cmy vhic).Sums due in respect o 2010

in ric

MarePierrePags

ChristianKarst

MichelGaraudet

Jean-PierreDick

Fixd cmsi(icdig bs i kid) 287,863 195,970 189,655 176,184 35,353

Vib cmsi 181,000 112,000 100,000 55,000 15,000

Cmsi dicshisi G cmis 61,500 58,400 38,000 12,100 -


Cmsi id i sc h 2009 ci y csds wih h xd cmsi id i 2009, h cmsiikd h cs h dics i h Gs cmis id i 2009, h vib cmsi id i 2010 i sc 2009 d h bs i kid wdd i 2009 (cmy vhic).Sums due in respect o 2009

in ric

MarePierrePags

ChristianKarst

MichelGaraudet

Jean-PierreDick

Fixd cmsi(icdig bs i kid) 279,063 186,460 181,492 169,057 35,373

Vib cmsi 142,000 86,000 73,000 45,000 15,000

Cmsi dicshisi G cmis

63,400 59,900 38,000 13,000 -



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2010annualreport

* xc i : sck g s ch bv.

pi pgs d Chisi Ks. th svc y sh yb yb i h v dismiss, gdss whhi s chg i sgy c hwis.

th m sch wc is sbsiy ss h ha-Md w-y cmsi imi d sbjc hchivm dmdig mc cii: i cig s/ss v h w smss cdig hd h si mg, g h q 7%.

th mid cmmims hv b vd hshhds' mig 19 J 2009 by scic si ch bciy i ccdc wih ic l225-42-1 hFch cmmci cd.

Stock grant plans

I i wih h hisi gd by h shhdsmig, sic 2006, h xciv bd hs wdd sckgs ci mgs Vibc d is sbsidiis.

ths gs cig h chivm mc g id h Gs biiy d db,which wi scivy b ssssd h d 2008, 2009,2010, 2011 d 2012.

ri id:2006 : i h gs chivd, hs cqid shswi hv b id by h bciis w ys m

vsig;2007 2010 s: 35% h shs vsd h chim h xciv bd d 25% h c csmy b sd whis hy wk h G. this s iciwi hss b id wh h c cs hvsbishd Vibc sh i sig w ysg cmsi (g gss sy d bs),xc h chim whm his m is s hys g cmsi.

th bs sck gs d vis s s ws:

Sck g s xciv bd mmbs :

Plan Number o shares granted

2006 17,050

2007 13,800

2008 14,050

2009 14,450

2010 12,000

Total 71,350

Number oshares granted

Value o shares on the basiso the method used or the

consolidated fnancial statements

Vesting date Date released*

p 2006 - 24/07/2006 2,700 110,970 2009 2011*p 2007 - 09/07/2007 1,800 115,020 2010 2012*p 2008 - 17/03/2008 1,800 109,440 2011 2013*p 2009 - 19/06/2009 1,800 99,180 2012 2014*p 2010 - 31/05/2010 1,460 115,355 2013 2015*Shares granted to ric Mare 9,560 549,965

p 2006 - 24/07/2006 1,700 69,870 2009 2011*p 2007 - 09/07/2007 1,300 83,070 2010 2012*p 2008 - 17/03/2008 1,300 79,040 2011 2013*p 2009 - 19/06/2009 1,300 71,630 2012 2014*p 2010 - 31/05/2010 1,080 85,331 2013 2015*Shares granted to Pierre Pags 6,680 388,941

p 2006 - 24/07/2006 1,400 57,540 2009 2011*p 2007 - 09/07/2007 1,200 76,680 2010 2012*p 2008 - 17/03/2008 1,200 72,960 2011 2013*p 2009 - 19/06/2009 1,200 66,120 2012 2014*p 2010 - 31/05/2010 1,000 79,010 2013 2015*Shares granted to Christian Karst 6,000 352,310

p 2006 - 24/07/2006 900 36,990 2009 2011*p 2007 - 09/07/2007 800 51,120 2010 2012*p 2008 - 17/03/2008 800 48,640 2011 2013*p 2009 - 19/06/2009 800 44,080 2012 2014*

p 2010 - 31/05/2010 665 52,542 2013 2015*Shares granted to Michel Garaudet 3,965 233,372

Shares grantedto the members o the executive board

26,205 1,524,587



Plan number and date Number o distributed shares Number o attributable shares

ic M p 2007 - 09/07/2007 900 1,800pi pgs p 2007 - 09/07/2007 650 1,300

Chisi Ks p 2007 - 09/07/2007 600 1,200

Mich Gd p 2007 - 09/07/2007 400 800

Total number o shares 2,550 5,100

I 2010, h sck gs 2007 ws dis ibd. th sck gs dis ibd bd mmbs :

th shhds' mig 19 J 2009 dd si w h ssibiiy wd sck gs, d h ms ics l225-197-1 et seq. h Fch cmmci cd.th si wi vid h gig sck gs mys d qiv ci cgis h s

w s c cs, bh Vibc d cmis h dic y idicy sscid i h m dd byic l225-197-2 h Fch cmmci cd. th mb sck gs wdd my s v 1% Vibcs ci.

ths sck gs wi y b diiiv h d vsig id s w ys, w ih h shs hshd s hvig b id s w ys mh d h vsig id, h xciv bd bigy mwd s h vsig d i ids

v w ys d mximm ys ch.th xciv bd wi dmi h idiy hbciis s w s h ms d g c ii hshs h wi b ikd h imvm i h Gsmc vs.

Trading in company shares

ps h visis ics l621-18-2 h Fchmy d ici cd d 222-15-3 h ggis h aMF, w hby s smmy hscis cid dig h s y by mgsd d is i sc which w w iid.

Number o shares Total amount o transactions

ic M - -

pi pgs 500 59,196

Chisi Ks - -

Mich Gd - -

Purchases 500 59,196

ic M 3,000 303,482

pi pgs - -

Chisi Ks 200 22,773

Mich Gd - -Sales 3,200 326,255

By members o the supervisory board and related partiesn mvm ws d i h 2010 id.

By managers and related parties


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2010annualreport

Shareholder structure and

stock market performanceVibc vids c, csis d s imi is idivid d isii shhds d hi dviss(ci yss). this imi is yd by ms ci cms bishd i h Fch mdi, ssss bishd ci wbsis d h aMFs wbsi,d bici G qy ss gs d iimss s qid by w.

Relations with individual investors

th www.vibc.cm wbsi hs ci imi scih is gy dd. I is sd cs d dwdh Gs ci imi: ss ss, diim ici sms, . I ssmy s mi qsis iig G ci ms [email protected] i 2007, d i d cmy wih h wbigis imsd by h scy diciv d haMFs g gis, h ci imi scihs b hcd wih sci mdy discssid Fici d g imi csidig h imi qid d h diciv.

Relations with institutional investors

Mgm is hviy ivvd i cmmicig wih hivss d yss hy m hgh h cs h y, imiy i h pis d ld mks. aysmigs d cc cs gd cicid wih hbici ss, cqisiis h mj vs hG. th Fici ais dm is vib swy qsis ivss d yss my hv gdig hGs sgy, dcs, bishd ss mj vs.

Provisional fnancial

communications timetable or 2011

th visi imb is s ws:2011 s-q ss 19 ai 2011, mk cs;2011 scd-q ss 18 Jy 2011, mk cs;2011 iim ss 31 ags 2011, mk cs;2011 hid-q ss 18 ocb 2011, mk cs;2011 ss 19 Jy 2012, mk cs.

Stock market data

in 2006 2007 2008 2009 2010

Highs sh ic 49.00 68.90 68.85 75.85 130.00

lws sh ic 37.50 47.00 45.23 49.82 70.35

avg sh ic 43.44 59.09 56.58 60.11 92.49

Csig sh ic 47.00 68.70 57.94 72.73 130.00



Share capital structure

Thresholds crossed

Dig h y dd 31 Dcmb 2009, Vibc wsimd h thdd ass Mgm Hdigs ld.dcd h 15 Smb 2009, wig cqisii shs i h mk, i hd cssd v h 5% sk hshdi h cmy. th cmy si ws m h 5% ski Vibc s 31 Dcmb 2010.

th mb shs d vig ighs hd s 31 Dcmb2010 by h cmy is did i h b bv.

Inormation that might aect a public oering

ps ic l225-100-3 h Fch cmmci cd,i shd b d h ci shs hv sci cighs.

th wig shs cy db vig ighs:

th 46,036 sy shs d c y y vig ighs.

As at 31 December 2010

Shares Voting rights Capital Voting rights

Dick miy g 4,154,448 8,227,168 47.67% 63.87%

thdd ass Mgm Hdigs 473,077 473,077 5.43% 3.67%

Cmy svigs 78,572 157,144 0.90% 1.22%

pbic 3,962,219 4,024,671 45.47% 31.24%

tsy shs 46,036 - 0.53% - %

Total 8,714,352 12,882,060 100.00% 100.00%



Dick miy g 4,154,448 8,227,168 47.67% 63.86%thdd ass Mgm Hdigs 525,860 525,860 6.03% 4.08%

Cmy svigs 78,572 155,091 0.90% 1.20%

pbic 3,914,799 3,975,943 44.92% 30.86%

tsy shs 40,673 - 0.47% - %

Total 8,714,352 12,884,062 100.00% 100.00%



Dick miy g 4,154,448 8,227,168 47.67% 64.23%

Cmy svigs 78,572 155,091 0.90% 1.21%pbic 4,380,086 4,426,335 50.26% 34.56%

tsy shs 101,246 - 1.16% - %

Total 8,714,352 12,808,594 100.00% 100.00%

Number o shares concerned

Dick miy g 4,072,720

Cmy svigs 78,572

pbic 62,452


52/12050

2010annualreport

Outlook for 2011

th y 2011 vids h G wih w k dvm. aim hh mks xcd gby chg m siivy h i 2010 i h cx mdymic gb cmy.nw dc chs xcd d icid mkdvms i ky cis w sig mdgwh i e b m is i h s h wd.th cmi im sgm shd ci xicsg gwh d by ivi. emgig mks shddiv gwh h d dcig im sgm, whichshd mi sb i e.th ig s cg ss is xcd h ics dsi icsd r&D d cmmciivsms i sm g cis. excdig cqisiis,db dci shd b ss cd h i visys s s w idsi jcs kig dig 2011.

Risk factors

a misd d cig mj isk ysis css hG ws iiid i 2010 d gv is his mig hdisys h i imc d simd qcy chisk idid d is v c. this css idiyig,

iiisig d ddssig isks is did i h chiwm h svisy bds ig i cd isk mgm sysms sd g 64 h .as is isk mig, Vibc hs cdcd viw isks h cd hv sigic dvs c is bsiss,is ci sii is ss ( is biiy chivis bjcivs) d csids h s h sigicisks h h hs shw.

Risks relating to the Groups

business activities and strategy

Risks related to the innovation process:research, development, licensing and productregistrationth id viy hmcic idsy is highycmiiv, d vy y, i d m chgigmk ds, miiig is mk sh d sig isdvm, Vibc dvs sigic scs schd dvm.I 2010, Vibc cmmid 6. 5% is v r&D.

th r&D css sy xds v sv ys d hsvis sgs sig, mg hs , h ccy d sy dcs. I ch hs sgs, h is isk h hbjcivs m d jc wh g msw ivsd is bdd, icdig dvcd sg dvm.

Csqy, h c ivsms i sc hdvm d ch dcs my ivv cssh wi cssiy g ddii ss Vibc.

ag wih i r&D jcs, h G s ss icy cqisii icss h ws i hv ccss,ih w dcs dy b mkd, jcsd dvm h i cdcs i hi m. I hsm wy s wih i-hs r&D jcs, h is wys isk h hs jcs wi cm hig h hcmmci i wi v b ss c iv hxcd, ssiby sig i hs sss big imid.

oc h sch d dvm hs is cm, Vibc,i is cciy s viy hmcic by, mswh cssy bi h dmiisiv hisisqid mk is dcs, h Ma (Mkighisi). this hs is g d cmx, dh G hs g sccss. Idd, h ig gisi dssi wih h i hiy vids mic g h h hisi mk hdc wi b gd.Sch hisi my b y i, i.e. imid cicis ci idicis. oc mkighisi hs b bid, dcs sbjc gig cs d hi mkig my iy bsicd, hy my b wihdw m h mk.Vibc cmmis sigiic scs biig dmiiig h Ma. F xm, biig h e d

Fii gisis i h e cd i 2008d sigic gy bd w h s hdc i e cis sis d hdi chs disibi.F his sig x siicid dc, m h 200 ss mkig hisis w bid d d e.

Vibc sks imi hs isks by sy myig sigsci cii h sch d dvm jcsi which i ivss (ikihd sccss, s msd by cmbii chic, gy d mkig cs, v 50%) d scdy, hgh h xis is

rgy ais dm which is ssib ig,miig d wig mkig hisis.th im hh mk is highy gd d Vibc disys sg cmmim cmic by ig i c cssy ms chiv i.

Risks associated with product liabilityVibc dc ibiiy my b qsid i dvs sid csm dgs cc ( dcd dig ciic is i Ma) i d i qiy ccs. th csqcs schvs cd b h c mkd s, ss, my v h ss h Ma. I Vibc's ibiiy ws dmi d

i g cims, h G's ci sii cd b gycd, s w s is i. Dg c cs wi b dddi h v qiy bm.

Vibc csy ics is hmcic miigcds d is qiy chcks dcs mkd by h



G. I h cx hmcic miig cds,h G cdcs sysmic viw d g ysis h sy is dcs s h s s

dgs by miig h sid cs ibb h.I ddii, Vibc hs dc ibii y isc h is sbsidiis.

Risks related to distributionchannels and end usersDependence on distributorsVibc s i g mb cis, ih hghis sbsidiis hgh disibs i hs cis iwhich h G hs sbsidiy. Disibi chs my d hi chcisics dd h cy mkig. Hwv, h G's dcs imiy

disibd hgh whss d chsig gswhich sy viis. Dsi h svisi hs ishis by ccs h gy visd,his disibi md cd c h G smddcy isci c is sc d isdvm.

Concentration o the distributionchannel and customer portolioI ddii, h im hh sc shws sm ys w, d wds cci disibs d viisi g ciics i sm cis. this d hs, w, cd h G's bsiss. Vibc mis vigi his

dvm d h imc i cd hv h v ssd mgis.

t dc is ddc disibs d dc hcs i csidi, Vibc hs immd icy scig i s mgis d csidig is mksiis. this icy ivvs sdyig sysmicy hiy sbish disibi sbsidiy whvss sci imc i giv mk. Vibch s h ms i si, ih cqiigis dis ib sbishig w cmy.

Risks related to the concentrationo competitionth im hh sc is vy cmiiv. Vibc dcs sd i cmiiv mks i ms icig, cicdiis d dc qiy.th G cs sg cmis g h is wih g scs. a gd csidi hm

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Annual Financial Report 2010