CSR report France 2019 by VygonGroup

CSR Report France 2019 Corporate Social Responsibility

C O N T E N T S

Excellence Energie Patients Respect Vision

Innovation

de la santé rché Ma

ocales Société és L Co t i v lla ti c e

s nt

ouvernanc s G e eur Vie t Cli a r e bo Professionnels de Santé Formation Implication

Emploi

Stabilité

Pérennité

Expertise

Confiance Partenariat

Ethique

Innovation Diversité

Relations Durables Implication

urs se nis

Environneme n t Co ll

Valeurs

Fo ur

Culture Qualité Ensemble

Editorial..........................................................................3 Economic.......................................................................4 Social...........................................................................10 Environment.................................................................24 A Group CSR strategy..................................................30

Our "Value Life" signature is much more than a philosophy. It conveys our commitment to harness the skills and energy of all our employees so that we can rest assured that we are fully deserving of our customers' trust. This fourth CSR report offers renewed evidence of this ambition by using indicators and initiatives that illustrate our Group's contribution towards economic, social and environmental issues. Value Life reflects our philosophy: - We value life through our care and respect for patients - We value life through the development of innovative products and their impact in protecting and saving lives - We value life through our environmental commitment and social responsibility - We value life by providing our employees with a pleasant work environment and taking care over who we choose as our business partners - Our customers/partners value life through their missions Value Life is also a statement that encourages everyone to do exactly that value life.

E D I T O R I A L

For nearly 60 years, VYGON has been working every day to provide healthcare professionals with single-use and, more recently, electronic medical devices that raise the bar on innovation, deliver superior quality and are scaled to their needs, thereby enabling them to offer patients the best care in the safest possible environment. The key to achieving our ambitions is consistently listening to our customers' needs and collecting intelligence on the latest developments in clinical practices through our customer-focused sales teams and our creative and fast-acting research and development teams. The stormy period that we recently weathered during the Covid-19 pandemic highlighted the need for fast response capabilities and quality, which we successfully delivered by leveraging the close ties between our production facilities and our development centres across Europe and drawing on the commitment of our teams at every tier in the company. This achievement resonates with our motto: "Value Life"! Our values (Integrity, Commitment, Open-Mindedness, Pursuit for Improvement and Respect for People), which were inspired by our founder Mr Pierre Simonet and subsequently perpetuated by our shareholders and executives, represent VYGON'S DNA and are defended by all our employees. Our family-run company continues to champion its socially responsible values and its French legacy, while continually using sustainability as its guiding light. VYGON factors social and environmental issues into each and every one of its actions and makes its employees the focal point of its development strategy as it strives to ensure continuous progress and stay ahead of the innovation curve. Our CSR policy is an ongoing commitment that builds on the company's history and spearheads our motto of "Value Life" both today and tomorrow. Eric Longer General Manager VYGON France

E C O N O M I C

Over 50 years of industrial progress to drive the healthcare sector Ever since it was founded in France back in 1962, private family-owned company VYGON has based its development on innovation and the distribution of single-use medical equipment by controlling every stage in the product lifecycle, from design through to distribution.

• Design At our four development centres (the main centre is located in Ecouen, France, with the second in Aachen, Germany, the third in Irigny near Lyon and the fourth in Les Aires near Béziers), 40 people are focused every day on creating the medical devices of tomorrow's world.

• Manufacturing VYGON'S medical devices are produced in our 11 factories around the world: five in France, one in Belgium, one in Germany, one in Portugal, one in the United States, one in Colombia and one in Mauritius.

development centres in Europe

• Distribution Once manufactured, most of our products are sterilised and stored at our logistics hub in Verneuilen-Halatte in France's Oise region before being distributed. In France, our 100-strong sales force serves more than 4,000 customers (hospitals, clinics, purchasing consortia and service providers). VYGON is currently active in over 120 countries, with 26 sales subsidiaries and 3 sales offices. Its network also comprises around 100 distributors who play their part in fuelling the Group's international development. The Group's revenue (€323 million in 2018) is constantly growing, just like the number of employees.

factories in France

global logistics hub in France

81 %

of revenue from exports

Our investments In 2019, the Group's investments amounted to over €21.2 million. In addition, nearly all investments are concentrated in France and Europe.

80%

of VYGON SA's profits are reinvested in the company

59%

of investments are made in France

88%

of investments are made in Europe

E C O N O M I C

Subsidiaries

Distributors

Other sales presence

Map of VYGON'S global footprint

Our production 181 million products were manufactured in our factories during 2019. The proportion of products manufactured in France and Europe is constantly on the increase. The value of the products manufactured in that area is also continually growing, which reflects the increasing level of technical expertise at those sites.

33%

of our products are manufactured in our factories in France

56 %

of the value of the products manufactured

89 %

of our products are manufactured in our factories in Europe (including France)

87%

of the value of the products manufactured

10%

of the products manufactured in our factories are made in the rest of the world

12%

of the value of the products manufactured

E C O N O M I C

A French group with an international footprint VYGON consistently offers evidence of its attachment to France and Europe with more than 81% of its revenue generated from exports and 40% of its workforce employed in France. VYGON has chosen to maintain its extensive presence in France with eight sites, namely five production sites, one logistics and sterilisation hub, the Group's head office and a site in Chaponost. The headcount in France is rising every year, while employee numbers across all production sites have been stable for more than 10 years. By 31 December 2019, the Group's headcount had reached 2,341 employees. As such,VYGON is helping protect jobs in the various regions in which it does business.

Our sites in France

SAP SIPA Perouse

27%

Sterilization Logistics

Vygon SA

SIPV

employees in the rest of the world

40%

employees in France

32%

Chaponost

employees in Europe (excluding France)

Medwin

938 employees in France

2,341

VYGON employees worldwide

753 employees in Europe (excluding France) 650 employees in the rest of the world

Ever more recruitment campaigns in France In 2019, 74 people were recruited at our sites in France, with new jobs specifically created for 29 of those new hires. During the recruitment process, candidates are chosen against objective, justifiable and therefore non-discriminatory criteria. The wide range of employee profiles is one of VYGON'S greatest assets.

new hires in 2019

E C O N O M I C

Our investments in France VYGON continues to invest in its different sites.

Work continues at SIPA Replacement of the chiller The maintenance crew at the Avesnes-sur-Helpe site reported that the chiller was prone to breaking down, which led to high maintenance and repair costs despite being less than five years old. A study was conducted into the prospect of cost-effectively replacing the defective chiller while looking for energy-saving solutions. SIPA invested â‚Ź213,000 in a heat recovery chiller that was partly subsidised with an Energy Savings Certificate (ESC). When producing the cooled liquid required to regulate temperatures in the clean room, the chiller emits calories that are recovered and reintroduced into the heating network. This system reduces the plant's gas use by 10 to 20% a year. The chiller was commissioned in July 2018 and has already reduced gas consumption by approximately 11%. Other factories are following in SIPA'S footsteps.The same chiller was installed at SAP (Saint Saulves) in 2019 and another is due to be fitted at SIPV (Ecouen).

Refurbished offices and social areas VYGON is a firm believer in providing its employees with attractive infrastructures and an inviting living environment. SIPA's administrative building and its social areas (canteens, cloakrooms, etc.) were in need of renovation. An architectural project worth â‚Ź630,000 was given the green light. This project also represented the ideal opportunity to analyse and improve access for the factory's employees and visitors. Work started in April 2019 and will be completed late June 2020.

E C O N O M I C

Vygon takes over startup APD and expands its Critical Care solutions Advanced Perfusion Diagnostic is a Lyon-based startup created five years ago that is dedicated entirely to developing the Ikorus solution. This startup had been on our radar for several years due to the quality and innovative design of its system, which explains our decision to issue a proposal for acquiring the company's assets. Our bid was accepted in December. Therefore, we have taken over the tangible and intangible assets (technology, patents and inventories), as well as three employees who have already joined Vygon and the Critical Care BU. Their Ikorus solution is a monitor (DMA), combined with the IKORUS UP Foley catheter, which introduces a new indicator called "uPI" (urethral Perfusion Index). The catheter owes its intelligence to a sensor, which is affixed to the wall of the urethra and helps assess the quality of the microvascular blood flow. Through our Critical Care BU and its product Mostcare Up, we are currently offering a solution for managing visceral macrovascular blood flow in critically ill patients (the concept of macrovascular blood flow could be summarised as monitoring cardiac output and blood pressure). Using the Ikorus system alongside Vygon's range of solutions heralds a real opportunity to offer an end-to-end monitoring solution for both macrovascular and microvascular blood flow based on an identical approach that combines sterile medical devices and monitors. Ikorus obtained the CE marking in June, allowing the company to launch expanded clinical trials that are still underway with several leading European centres.

Acquisition of Pilot, an expert in ECG location and navigation devices for central venous catheters This transaction was aimed at acquiring the ECG location and navigation technology of Pilot™ TLS, the unique product from Italian company Pilot and already marketed by Vygon. It is one of only a few devices that allow for precise positioning of the distal tip of central venous catheters, including in patients suffering from atrial fibrillation. Vygon will be able to provide its international customers with an extensive array of intravascular therapies, including implantable catheter ports, PICC lines, midlines and central venous catheters, as well as equipment (Vysion XS ultrasound system and ECG Pilot™ TLS system) to ensure safe implantation. The new Pilot™ TLS system offers practitioners a comprehensive solution that is especially attractive when combined with CT PICC easy catheters with unique proximal trimming, and also with implantable ports.

E C O N O M I C

Five-year strategic plan As part of its five-year strategic development plan, VYGON decided to conduct a study among its employees and also outside the Group with the aim of gaining a clearer insight into the foundations of its organisational culture, analysing its different core businesses, and understanding its specific assets and strengths to bolster its position in the market. Close to 300 employees in France as well as in the foreign subsidiaries were polled through roundtable meetings and individual interviews, so that all participants could voice their views about their job, their experience and their feelings about the company and thereby understand how VYGON'S core values and representations have been forged over time. In 2020, depending on the diagnosis that will have been carried out, the 5-year strategy and action plan will be defined and communicated to all employees. Each employee will have objectives related to this strategy in order to give it more visibility over its activity.

Compliance programme In accordance with anti-bribery legislation, VYGON has developed and implemented a Group-wide programme to prevent and detect corruption. This programme builds on the ethical values and commitments championed in VYGON'S Ethics Policy. The Ethics Policy applies to all employees wherever the Group does business, as well as to all stakeholders, so that they can foster and maintain trust in their professional relationships. VYGON was determined to set up a dedicated governance body, and the VYGON Ethics Committee was consequently created. This committee is headed by the Chairman of the Board, Stéphane Regnault. It comprises four members from the Executive Committee and is led by a Compliance Officer, who has been appointed to roll out the Group's compliance policy. The Ethics Committee ensures that rules of business ethics and the associated codes of conduct are properly applied. With the future in mind, the committee updates the business ethics policies and maintains VYGON'S exemplary track record in terms of complying with applicable regulations. VYGON has already implemented the following measures: • An internal whistleblowing system has been set up, so that employees can report any breaches of the ethical rules. A whistleblower policy has therefore been prepared. • A risk map has been produced within the VYGON Group in France and abroad in a bid to identify, analyse and prioritise the risks of external exposure to bribery and corruption, depending on the business sectors and geographical areas in which the company operates. • The VYGON Anti-Corruption Code of Conduct has been drafted and appended to the Group's Internal Regulations. It applies to all employees and corporate officers working for VYGON Group companies, irrespective of their hierarchical level, geographical location and position. •A training session was held for employees exposed to the risk of corruption. • V YGON is developing internal and external accounting control procedures to ensure that books, records and accounts are not used to conceal corruption or influence peddling.

S O C I A L

Communication VYGON uses various media to reach out to its employees, including newsletters, an internal magazine, posters, an intranet and briefing meetings. Our employees are regularly informed of the following: • Vacancies, internal transfers and new hires • Initiatives taken or advice given to improve health, safety and the environment at our sites • New products • Core business activities • Development work carried out at our sites • The company's different projects • Charity, community and sponsorship initiatives • The company's strategic decisions and results

Communication is one of the key areas for improvement revealed by the Quality of Life at Work survey. To improve the flow of information to all employees, VYGON'S sites have been installing communication screens since 2016. In addition, the SIPV factory in Ecouen has launched its own newsletter to adapt and bring a more dynamic edge to its communication strategy. Every month, employees are informed about a variety of topics (indicators, quality of life at work, news on development works, HSE, quality, ergonomics and the latest news).

GROWING TOGETHER: VYGON'S new HR project Promoting individual development is how VYGON invests for the success of the entire company. To ensure that it plays an instrumental role in strengthening our Group's foundations over 20202025, our HR policy adapts to the changes sweeping the company, whether the Group's internal and external growth, its new sites, its new markets or its recent change into a BU-oriented organisation. The HR policy also addresses new expectations and requirements arising within the company. New generations and new cultures are prompting us to overhaul our management practices, such as giving greater emphasis to cooperation, feedback on enterprise-wide projects, interactions and informal sessions, as well as greater guidance and formalisation. The new GROWING TOGETHER project responds to all these challenges. It has been built with support from a multi-speciality working group that took part in auditing, recommending

and choosing the TalentSoft solution. This tailor-made tool incorporates our values, our culture and our company's specific attributes. The aim is to help each individual grow and contribute towards the Group's collective success. The project guides all employees in building their career plans within the company and aims to develop their skills for their current job or another position within the Group. This project, whose first step involved an overhaul of the annual appraisal system, is based on five key principles: • Promote personal development • Promote local management • Abandon scoring-based assessments • Develop new feedback • Include everyone's objectives into the company's strategic "Vysion"

S O C I A L

Workplace communication platform To successfully lead our transformation process and support our growth, we have launched a strategic digital transformation project with the deployment of a communication platform for all employees, whatever their position in the company, their language and their location. Creating the Workplace solution for our 2,400 employees is the ideal way to: strengthen our organisational culture: foster closer ties, engage and build team loyalty improve our internal communication: provide easier access for everyone, share information more effectively and ensure that communication is not only top-down but also bottom-up improve our performance: ensure easier discussions on our best practices and success stories, create expert groups and encourage feedback The platform was launched in July. As part of the platform's inauguration, employees took part in a photo and video competition with rewards for the best entries. Events sporting the Workplace colours were held in all the Group's subsidiaries. There are currently more than 300 communication and information sharing groups. The employee adoption rate is 79%.

Value Life sessions: the new way of communicating at VYGON The quarterly meetings led by StĂŠphane Regnault, which present the company's performance, strategic directions and current / future projects, have been extended to all Group employees. Since the Workplace corporate social network was introduced in June 2019, meetings have been filmed and can be watched on the Workplace platform with the live stream or replay feature by all employees, whatever their position in the company and their location in the Group. This event gives all employees a live feed into the company's latest news, as well as the opportunity of proposing topics and taking part in a meeting that is open to everyone. Value Life sessions are a new approach to communication at Vygon.

S O C I A L

Our values Human values form the backbone of our organisation, and VYGON enforces the Ten Principles of the UN Global Compact among its various entities and its partners in terms of human rights, labour (freedom of association and the right to collective bargaining, elimination of forced labour, abolition of child labour, and elimination of discrimination), the environment (precautionary approach, promotion of environmental responsibility, and diffusion of environmentally friendly technologies) and anti-corruption.

An internal campaign building on our values There is something deeply entrenched in our history, something that inspires our projects, something that remains unchanged. That something is our system of values. It is our company's ethical signature. In a world where the rate of change is continually gaining pace, these values keep us on track to realise our ambitions and unite all the men and women who work at VYGON. Charles Darwin Mahatma Gandhi

Photo : Musée Curie (CNRS / Institut Curie)

Photo : D.R.

Marie Curie

INTÉGRITÉ ENGAGEMENT OUVERTURE D’ESPRIT

INTÉGRITÉ

RECHERCHE D’AMÉLIORATION

ENGAGEMENT OUVERTURE D’ESPRIT

ENGAGEMENT

RESPECT DES HOMMES

OUVERTURE D’ESPRIT

It dawned on us that although these values were very much in existence, we had never actually written them down, so it was important for all of us to put them in the spotlight and show our pride:integrity, commitment, open-mindedness, pursuit for improvement, and respect for people. An internal communication campaign was therefore created to pay tribute to the people who have embodied our values better than anyone else in the history of humanity. Scientists, intellectuals, leading political figures... in their own way, they have each made their mark by upholding the very values that we defend. Their names include Gandhi, Darwin and Marie Curie. Their portraits have accompanied our values since December 2016 on posters displayed in our buildings, meeting rooms and other reception areas.

RECHERCHE D’AMÉLIORATION

RECHERCHE D’AMÉLIORATION RESPECT DES HOMMES

RESPECT DES HOMMES

Partageons nos valeurs Partageons nos valeurs

Partageons nos valeurs

Professional development For our employees

Healthcare professionals

VYGON goes over and above its legal obligations by ploughing more than 3% of its payroll into its training budget. By the end of 2019, 718 people had been trained (66.5% of employees in France have taken at least one course), representing a total of nearly 9,000 hours of training at a cost of €728,323. 44% of those trained are employees over the age of 45. 64% of employees trained in 2019 were women.

VYGON opens its doors to apprentices and interns every year. They include future pharmacy assistants and healthcare professionals, who come to develop their knowledge of our company and the management practices at our factories. Following an internship in the medical sector also gives healthcare professionals a different perspective on medical devices by looking at them through the eyes of an industrial firm. These experiences are also beneficial for the production staff in direct contact with the people using our products.

718 people

trained in France in 2019

66.5% of employees in France have taken at least one course

"I'll never look at catheters in the same way again" is what we often hear from nurses after completing their internship.

S O C I A L

Mobility and career development VYGON supports and encourages its employees to develop their career prospects, particularly through internal transfers both in France and abroad. Employees transferring within the Group receive special support and care.

joined VYGON back in March 2014 as Group Health, Safety & Environment (HSE) Manager. My duties involved developing a corporate HSE policy and standardising practices between the Group's different sites. I received a helping hand from the network of local HSE managers, who were highly keen to move our production and logistics sites forward. Our extensive discussions helped create tools and procedures, and share best practices for deploying and improving our HSE management system. In January 2019, I was promoted to Work Environment Manager. This position makes a lot of sense to me, because it gives substance to the Quality of Life at Work approach that VYGON has been pursuing for several years. In addition to my Group HSE duties, I am also responsible for all the services relating to head office management in Ecouen (personal services, maintenance, security, etc.). With my team of six employees, we are committed to making employees, their needs and their environment our top priority. We ensure that their work environment, equipment and services are geared towards their needs and help improve their working conditions while limiting our impact on the planet. Virginie Rebouilleau Work Environment Manager

Sport at VYGON The Social & Economic Committee set up fitness classes in response to calls from employees. Classes are held every Monday from 5 pm to 6 pm in the Verrière room (our conference room at head office). Personal trainer Maëva offers muscle toning, cardio and stretching exercises. Following the trial courses in October, employees were delighted to hear that the fitness classes would become a permanent fixture as from November. The initiative has proven to be a tremendous success, since a minimum of 15 people were needed for the classes to take place and about 30 people signed up! Thanks to Maëva for running these highly dynamic classes and tailoring activities to suit everyone's needs and abilities. It represents a great opportunity for employees to do sports directly in the workplace, given that employees are often on a tight schedule. In addition, only a minimal fee is required to take part.

S O C I A L

Occupational osteopathy This SIPV-led project reflects the aims of the VYGON Group's Quality of Life at Work strategy. The objectives include: • Allowing SIPV employees to arrange appointments to see an osteopath in the company, with priority to production personnel and those who often carry loads • Improving employee well-being and reducing occupational aches and pains • Preventing the risk of musculoskeletal disorders • Raising awareness of poor work practices or lifestyle habits In November 2019, SIPV signed a partnership with OSTEO ENTREPRISE, a company specialising in osteopathic consultations and addressing work-related injuries and disorders. Since December 2019, the same osteopath has been present for one full day a month at SIPV with 10 consultation slots of 45 minutes each. To date, approximately 20 employees have benefited from these sessions, and their feedback has been highly positive.

Training for back-up response team members The back-up response team plays a vitally important role within the company. Members are required to complete a qualification-based firefighting course and are familiar with the different stages involved in delivering a coordinated team response. There are nine "company firefighters" at the Ecouen sites (head office, French subsidiary and SIPV factory) and seven at the Verneuil-en-Halatte site (warehouse and sterilisation). Twice a year, team members take part in a training course where they are required to tackle a real fire.

Working conditions and safety

Over €10 million

7.5%

of days lost between 2018 and 2019

invested over the last five years in improving working conditions

Severity rate

0.33

VYGON spares no effort when it comes to its determination to provide employees with the best possible working conditions. For several years, we have been redesigning and rearranging our different sites to ensure a premium work environment for our employees. Special care has also been taken to improve the ergonomic design of our workstations and thereby make certain activities less strenuous. Several ergonomic studies are carried out in liaison with the methods and production departments, as well as with qualified human factors experts and occupational health services. Multiskilling is also developed, so that employees can carry out activities at a number of different workstations, which tackles musculoskeletal disorders, keeps employees focused and alert, and improves product quality. All ergonomic studies share the same goal of reducing the risk of occupational disorders. These initiatives have resulted in a low number of work-related accidents at our sites and improved well-being in the workplace, bearing in mind that our workforce includes a high proportion of long-serving employees. The number of days lost to work-related accidents fell by 7.5% between 2018 and 2019. The severity rate at all French sites is 0.33 (the national rate for our sector of activity is 1.00). VYGON is currently striving to improve the work-life balance by accepting requests for part-time work (the company does not impose parttime work).

S O C I A L

Work on the "Platform" office space in Ecouen Refurbishment work continued on the offices at the headquarters in Ecouen in 2019. A study was carried out into the entire workspace known as the "The Platform", which is home to two Business Units (the Industrial Division and Central R&D Division). Spokespersons for both BUs set up a working group led by the New Builds Division and the Work Environment Department. All stakeholders were able to voice their needs and desires to ensure that the project would be unanimously acceptable. Valued at â‚Ź73k, the project also represented the ideal opportunity to think about implementing a flexible office design.

Some of the employees who use this workspace are often on the road or required to work across several sites. Therefore, we began looking at ergonomic solutions to address these needs. Ergonomically inclined and height-adjustable desks, active stools and lockers have been installed. Finally, cosy meeting rooms have been created. Employees were invited to choose the window decals for the meeting rooms. This collaborative project has proven to be a resounding success. Employees have since adopted the new design and enjoy their new workspace.

VYGON continues its commitment to improving Quality of Life at Work The homeworking agreement implemented in April 2018 has been revised to better suit employees' needs. Eligible employees can now spend one day a week working from home. Shuttle service between the train station and the Ecouen site: many employees use public transport. Nevertheless, the transport system failed to cover the last few kilometres to the plant. In November 2019, VYGON set up a morning and evening shuttle service for its employees between the train station and the Ecouen site. This initiative has also prompted other employees to use the public transport system instead of their own vehicles, therefore reducing our impact on the environment.

e itĂŠ d

ual

Entra

Quality of Life at Work (QLW) is an approach that aims to reconcile improved working conditions for employees with the company's performance. VYGON has bought into this strategy and is keen to offer its employees working conditions that promote fulfilment, engagement and work efficiency. In 2019, VYGON repeated the "QLW Timeouts" at six of the Group's sites. About 450 employees took part in the timeouts, whose keywords are interaction, relaxation and fun. Several activities were on offer, including massages, VRbased relaxation, sophrology, yoga, human table football, fly-catching and cookery classes! In November 2018, VYGON launched a second QLW survey across all the Group's French sites. In 2019, an action plan was implemented to meet employees' expectations in a number of areas: The "Growing Together" and "Workplace" projects address the HR topics highlighted during the survey.

e a u Tr a

S O C I A L

Christmas Lunch 2019 The traditional Ecouen Christmas Dinner organised by the Works Council and the Work Environment Department was renewed in 2019. This year, guests were treated to a large buffet! With foie gras, salmon, cold cuts, salads, roast capon, cheese and Yule logs, there was something to suit everyoneâ€™s tastes! Employees were able to immortalise this fun moment together by posing for pictures in the photo booth! The same relaxed atmosphere could also be found at the PEROUSE sites in Ivry-le-Temple and Chaponost, where employees gathered round a hearty traditional meal.

Work anniversaries at Vygon Every year at Vygon, we celebrate a number of work anniversaries. In 2019, 139 employees will celebrate their: 10 years of service: 90 people 20 years of service: 26 people 30 years of service: 12 people 40 years of service: 11 people Breakdown: 7 in Colombia 99 in France 7 in Spain 4 in Italy 1 in Sweden

7 in the United States 2 in the Benelux region 10 in Great Britain 1 in the Czech Republic 1 in Poland

VYGON e-learning VYGON has produced an e-learning platform, so that employees can train online. The system was initially used to provide our sales representatives with training on our product ranges, but the HSE Department lost no time in developing the platform further by adding an Introduction to Health, Safety and Environment module in January 2018. This module is available for all of VYGON'S French-speaking sites. It is run locally by the site's HSE manager or can be monitored remotely. Creating an online version of the Introduction to HSE course allows managers to keep better track of training statistics and eliminates paper assessments at the end of the session, which are being phased out in favour of digital tablets. At the present time, 622 users have enrolled on the e-learning platform, which is continuing to grow.

S O C I A L

An ambitious HR policy Employee-centric HR tools All VYGON employees in France can access a collaborative portal from any computer, smartphone or tablet. After signing into a secure area, employees can respond to any administrative requests online and in real time, or they can simply modify their address, bank account details or any other personal information. Employees can also access their counters (hours worked, time off in lieu, holidays, etc.) and their rosters, and submit their leave requests directly online. The training module also allows employees to express any training requests or wishes on the same system, which helps improve how requests are processed and followed up. Since 2015, a Total Rewards Statement (TRS) has been produced for each executive. This comprehensive and individualized document details the total compensation and benefits received by each employee. This innovative tool provides an insight into the Group's compensation policy.

Funded health and retirement cover Aware that social welfare is a universal concern,VYGON has taken out private insurance which, on average, covers 97% of the health expenses incurred by its employees and their families. In addition to paying contributions to provident funds and supplementary pension schemes,VYGON has also chosen to finance a funded pension for each employee.

97%

of health expenses covered by VYGON'S private health insurance scheme

Workplace equality VYGON is committed to maintaining equal pay and career development prospects for women and men with equal skills and performance. Our "comparative situation reports" confirm that there are no significant differences in remuneration between women and men within the Group or discrimination in terms of career development. Workplace equality agreements are applied at each of our sites.

Exceptional purchasing power bonus With the aim of helping improve the purchasing power for employees with the lowest income levels in the company, VYGON has paid an exceptional purchasing power bonus of €400 to all employees in France whose gross monthly salary is less than or equal to €2,500 and whose gross annual salary is less than €53,945.

S O C I A L

E-payslips Since October 2017, our employees have had the choice of receiving their payslips in electronic format. Every month, almost half of our employees receive their payslips in a personal electronic safe. Not only are e-payslips practical, but they also help reduce our impact on the environment. Our employees can also use the platform for their personal documents.

DÉMATÉRIALISATION DU BULLETIN DE PAIE VYGON proposera à partir du mois d’Octobre le bulletin de paie dématérialisé à tous les collaborateurs. Ainsi, chaque mois, vos bulletins de paie seront déposés dans un coffre-fort électronique personnel Digiposte + (Groupe LA POSTE).

€

Vous recevrez, à cet effet, un courrier accompagnant votre bulletin de paie du mois d’Août. Celui-ci vous informera sur les avantages et les conditions de mise en place de ce système mais également sur votre possibilité de la refuser à titre personnel (via un coupon-réponse).

VYGON is committed to protecting personal data! On 25 May 2018, a new European regulation came into force to support the wide-ranging digital changes sweeping our societies. The General Data Protection Regulation (GDPR) was enacted in April 2016 and defines a framework for increasing the protection of personal data. Faced with GAFAM's growing dominance (Google, Amazon, Facebook, Apple and Microsoft) and the spate of scandals involving massive personal data leaks, Europe wanted to implement a data protection tool with unprecedented reach to reinforce

the privacy of its citizens. The main principles involve promoting greater transparency, improving protective measures for children and setting up a one-stop shop to address such issues. The regulation introduces new rights, tightens up existing rights and establishes the right to be forgotten. The European authorities are still defining the process for putting these measures into action, but the broad outlines are very much in evidence! Penalties for breaching privacy obligations have been ratcheted up significantly, particularly from a

financial perspective with penalties of up to 4% of the offender's annual global turnover and/or €20 million. In June 2017, VYGON launched a process to improve and secure data at every level of the company. VYGON is currently continuing its efforts to comply with the GDPR through an international action plan encompassing all its production sites and partners.

S O C I A L

Corporate sponsorship: VYGON demonstrates its commitment During 2019, VYGON donated €1,384,343 to various associations working almost exclusively for the healthcare sector.

Les Matins du Soleil Founded in 2008, Les Matins du Soleil is a humanitarian association that supports development, education and care for people living in Niger, one of the poorest countries in the world. The association sets up sustainable projects to help inhabitants find the means to live in their country (installing water pumps to irrigate their plantations and feed the population or livestock, taking part in repairing and consolidating community wells, installing grain mills, building schools, carrying out healthcare, prevention and health education roadshows in camps and villages far from health centres, and so on). VYGON has been lending its support to the association since its creation and makes donations every year, so that these specific initiatives can be implemented out in the field.

Château d'Ecouen For many years, VYGON has been working to protect and develop Ecouen's cultural heritage (where the company's head office is located), represented in particular by the Château d'Ecouen, which is home to collections from the National Renaissance Museum. VYGON supports the castle's exhibitions every year.

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Our commitments

Every year, World Prematurity Day garners growing support from Vygon's teams around the world In 2019 for the fifth year running, VYGON took part in World Prematurity Day in France. Every year, 15 million children are born prematurely around the world. This event, the brainchild of our partner EFCNI (European Foundation for the Care of Newborn Infants), is the ideal springboard to raise awareness of the challenges inherent in premature birth through various initiatives organised within renowned French and international hospitals. World Prematurity Day is an opportunity to discuss with parents and healthcare professionals, especially using feedback from parents who have experienced hospitalization with a premature baby, videos and demonstrations of medical devices.

VYGON'S neonatology teams masterminded awareness-raising tools specifically for the occasion and were fortunate enough to be welcomed into several renowned French hospitals, such as Marseille Conception Hospital, Bordeaux University Hospital, Lille University Hospital and the Antoine BeclĂ¨re Hospital in Clamart. Year after year, this initiative galvanises a growing number of distributors and subsidiaries into action across the world, including Ireland, Switzerland, Belgium, the Netherlands, Poland, Germany, Japan, Philippines, Vietnam, Taiwan, Malaysia, Cambodia, Australia, Peru, China,Thailand, Indonesia, India, Qatar, Lebanon, South Africa, Turkey, Tunisia and Portugal.

Check out all our actions in 2019

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Donation of implantable ports In May 2019,Vygon Asia donated 50 Polysite implantable ports to the Mount Miriam Cancer Hospital in Malaysia for disadvantaged patients undergoing chemotherapy. This donation has enabled the hospital to provide patients with the best possible oncology care. Vygon Polysite ISP implantable ports are used when medical treatment requires the regular administration of drugs and infusions, such as in the case of cancer patients receiving chemotherapy. During treatment, veins may become fragile, making it difficult even for qualified medical personnel to locate a vein to inject the medication and take blood samples.Without an implantable port, several needle pricks may sometimes be required to locate these very fine veins. Implantable ports represent an effective and painless solution to avoid this particular problem.

Our employees at the Ivry-le-Temple site in France's Oise region run for the Gustave Roussy institute For the second year running, employees at Vygon's site in Ivry-le-Temple and the IVT & CVS business units sprang into action on 20 September 2019 by entering a race alongside the Gustave Roussy institute in aid of the "Wellness Center" programme, which aims to complement chemotherapy treatment and care. Thanks to the 62 participants, some 360Â km were covered. Their participation helped raise â‚Ź4,000 for the Gustave Roussy institute.

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The safe-enteral.com website specifically dedicated to enteral nutrition In April 2017, VYGON launched safe-enteral.com, a dedicated website for safety connectors and the associated therapeutic implications. VYGON has developed the website to clue healthcare personnel into the benefits of the new ENFit™ standardised enteral connector and its potential risks when used with premature babies. After spending several years involved in creating the ISO 80369-3 standard, which defines the new safety connector, and leveraging over 10 years' experience in neonatology,VYGON is offering an extensive range of ENFit™ products but has also decided to maintain Nutrisafe 2, its dedicated range for premature and newborn babies for its accurate dosing. "As a specialist in medical devices for enteral nutrition, VYGON felt it should offer a full range of safety products from neonates to adults, in accordance with the new standard," says Stéphane Regnault, Chairman of Vygon's Management Board. "However, our teams regularly work alongside hospital staff and were

alerted to the need for accurate dosing for enteral nutrition for the very smallest patients, who weigh between 750 g and 2 kg. That is why we created safe-enteral.com to answer questions from medical staff and raise awareness about the risks of potential overdose via enteral tube therapy." The site is currently available in six languages.

safe-enteral.com/fr

The Dakar rally for sick children Gérard Tramoni, a 42-year-old anaesthetist, is extremely enthusiastic about his job and sports challenges. For 12 years, Gérard Tramoni attended to athletes taking part in motor and motorcycle races. In 2017, he took part in the Dakar rally for the first time as a driver, with a helping hand from VYGON! Once again this year,VYGON has participated in the event and lent its support to Gérard for the 2020 edition. Thanks to Gérard Tramoni and the L'enfant@l'hôpital association, the children and their teachers were no strangers to the event.They were excited to hear about the adventures of their "hero", who listened to their daily comments and took the time to send them videos, photos and anecdotes. This great initiative resonates with VYGON'S values.

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Partnership VYGON and the local economic fabric VYGON'S head office and the SIPV factory are both located in the Roissy Porte de France greater agglomeration (CARPF), which comprises 42 towns and villages (near the Paris-Charles de Gaulle airport zone) that wish to share taxation for this business park while maintaining their independence. In an effort to promote and encourage economic development and employment across the agglomeration, the "Roissy DĂŠveloppement" association stands as a real partnership between the local public officials, politicians and economic players in the sector.

This association features a number of local economic players, councillors and company directors, including Reynald Lespinas, Director of the SIPV factory and representative for the VYGON Group.

VYGON & employability We are actively involved in the CAP PARRAINAGE programme supported by the Val d'Oise Council, which aims to assist job seekers in returning to work.

VYGON supporting health professionals throughout the year In addition to providing training courses to healthcare professionals at its production sites,VYGON has training centres throughout France, i.e. Nancy, Brest,Villejuif and Paris. Doctors and nurses can develop their theoretical and practical knowledge in fitting implantable ports, PICC catheters and midline catheters with ultrasound guidance.

ISO 13485:2016 ISO 13485 is an international standard that specifies the requirements for a quality management system in the field of medical devices. In other words, it is an ISO 9001 standard for medical devices. In 2016, a new version of ISO 13485 was released: the regulatory approach was strengthened, some requirements were made more explicit and others were added. Manufacturers were given three years to align with the new requirements. Early 2018, our renewal audit was conducted against the criteria of the new standard, following which we were awarded ISO 13485:2016 certification.

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Car-sharing to reduce travel VYGON is an international group with a host of sites. Several meetings are held between the different entities. In a bid to minimise the impact of business travel on the environment, VYGON has implemented a whole range of videoconferencing systems, and their use is constantly on the rise. Maintaining relations between the sites is essential, and the Group introduced a professional car-sharing service for employees in 2015.This service is open to everyone and helps provide a simpler, freer and more modern form of mobility. In 2019, the car-sharing

system notched up 54,340 km and 138 reservations. Finally, employees owning an electric or hybrid vehicle can plug them into one of the charging points in VYGON'S car parks.

Employee engagement Employees are alerted to the latest environmental initiatives every month through newsflashes, and courses are regularly organised to address specific needs. The environment is an integral part of daily life for our employees. Learning is key to turning best practices into second nature. On arrival, all new employees follow an onboarding programme that systematically includes a Health, Safety and Environment training module to raise their awareness and engage them with the Group's HSE policy.

Une nouvelle mobilité, simple et accessible à tous. Découvrez votre nouveau service de véhicules en autopartage.

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Compliance with legislation With the aim of effectively complying with applicable environmental requirements and taking swift action in response to changes in regulations, VYGON has an intelligence unit staffed by legal experts who keep tabs on the latest developments in legislation. Close monitoring is required to ensure that the Group is consistently in compliance with applicable laws, and action plans are implemented if necessary.

Reducing the impact of our products on the environment Eco-design principles are an integral part of VYGON'S HSE policy. We are gradually reducing the environmental impact of our medical devices by adopting an eco-design approach to our packaging (blister packaging) and manufacturing processes (such as solvent-free UV adhesive).

ISO 14001:2015 Our second follow-up audit for ISO 14001:2015 certification was conducted in December 2019. The auditor did not detect any nonconformities.

100%

of our bids on invitations to tender are submitted in electronic format

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Let's recycle our waste The VYGON site in Ecouen produces nearly 130 tons of ordinary waste every year. Part of the waste is already transformed into energy, but some could also be recycled as raw materials. The procurement, communication and work environment departments have joined forces to lead a project aimed at sorting and separating waste in the offices and encouraging greater involvement from VYGON'S employees. Our graphic designers have produced fun illustrations to show which waste goes into which bins, and they have also created an animation explaining the instructions for sorting and separating waste. The procedure is intended to be as simple as possible: recyclables go "here" and everything else goes "there". Individual bins have been replaced with collective sorting areas. The system was trialled at one of the buildings in 2019 and will subsequently be extended to the entire site in 2020. This additional action for the environment reflects VYGON'S ambition of reducing its impact on the planet.

RECYCLABLES ICI

AUTRES DÉCHETS LÀ Tea

TIP TOP

RECYCLABLES ICI

BIEN JOUÉ

AUTRES DÉCHETS LÀ Tea

Energy-saving mode for the air handling units (AHUs) in the SIPV factory In 2019, SIPV set up an energy-saving mode for its air handling units (AHUs). Since May 2019, 9 of the 11 AHUs at the factory have been switched over to eco mode (two of the units are incompatible due to their age). This project shortens the operating times of the AHUs, which in turn reduces electricity use. This initiative has helped SIPV improve its environmental performance and comply with its HSE Policy. In a similar vein, SIPV is planning to replace two of its chillers in 2020 with systems containing a less environmentally polluting gas and whose heat can be recovered and injected back into the hot water system. This feature will reduce the boiler's gas consumption.

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Preventing pollution Setting up waste management practices is an effective way of shrinking the environmental footprint of our activities. For instance, each type of waste (chemical, electronic, etc.) is sent to the appropriate treatment centre. A programme is also being developed to monitor air, water and noise emissions. Procedures to ensure operational control during emergency situations have also been set up and are tested at regular intervals. Since 2016, the Group's response to gas leaks and accidental spills has also been tested.

Waste recycling and social responsibility For many years, VYGON has been working locally with a disability-positive company to treat some of its waste, namely waste electrical and electronic equipment (WEEE), paper, cartridges and batteries. This partnership improves social integration for disabled workers while protecting the environment.

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The CAHPP Green Index For 10 years, CAHPP (a public and private hospital purchasing group) has been actively pursuing a structured and ongoing approach towards sustainable development and encouraging its internal and external stakeholders to lend their support. Every year, CAHPP publishes a Green Index. The aim of the Green Index is to continuously improve the range of sustainable products and services from CAHPP's listed healthcare providers through such values as transparency, exemplary conduct, responsibility, innovation and recognition. In 2019, the medical devices sector achieved an average score of 41.80 out of 100. VYGON scored 85.20 out of 100, resulting in the Green Index A++ label.

VYGON switches over to recycled paper! It came to the attention of VYGON'S procurement department that only 29% of the 23 different paper brands ordered featured an eco-label. As a result, another initiative to protect our environment was put into practice. Two paper brands have been selected and tested with our office stationery supplier: â€˘ Recycled paper made from 100% recovered paper for all print jobs. This paper bears the European Eco-Label and "Blue Angel" environmental certifications. â€˘ Eco-efficient paper from sustainably managed forests for printouts requiring white paper.This paper also features the European Eco-Label. Only these two brands are now used. To promote this initiative among our external customers, our letterhead now reads as follows: "To combat deforestation, this document has been printed on recycled or environmentally friendly paper." Switching to recycled and eco-efficient paper is not only good for the environment, but will also shave about 9% off our paper expenses.

Fruit and vegetable baskets In 2019, the Ecouen site entered into a partnership with a local agricultural player to offer VYGON employees a new delivery service for fruit and vegetable baskets. They could choose between the baskets of the week in different sizes or a personalised basket. Employees were able to sample local fruit and vegetables grown according to sustainable agriculture practices.

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LED Lighting in Verneuil In the summer of 2019, the Verneuil site swapped its metal-halide bulbs and fluorescent tubes with LED lights for its 19,800 m2 building. This €196,000 investment (excluding VAT) has ushered in a whole host of benefits: • Improved visibility in the storage aisles and order picking areas • Elimination of the noise pollution caused by the old lighting system • A 10% reduction in electricity use throughout the site • An equipment service life equal to 160,000 hours

Before

After

This project has helped reduce our environmental impact and improve working conditions for our teams.

Fight against waste We use indicators to control and keep a close eye on our water, gas and electricity use, and thereby prevent any discrepancies. Using and sending electronic documents considerably curbs our paper consumption. Every year, VYGON is focused on reducing its paper use by 10%. The company has put a number of measures into practice, such as digitising documents and monitoring consumption. Videoconferencing systems are regularly used for national and international meetings in an effort to rein in our travel. In 2019, approximately 30% of the total volume of orders in France were processed in EDI format (a completely electronic process) compared to 17% in 2015. All our product brochures and datasheets are digitised in our Vylink system.

113.05 g 113.05 g CO2/km

CO2/km

on average for our car fleet in 2019 All new hires receive their onboarding documents on a USB flash drive

5 electric vehicles

2% decrease compared to 2018

5 hybrid vehicles

G R O U P

C S R

S T R A T E G Y

Our Group CSR strategy reflects both our ambitions and our commitments. The strategy outlined below illustrates the recommendations of a VygView working group and will form the backbone of our Group's Corporate Social Responsibility going forward:

Our ambitions VYGON is a French family-run group that has been committed to sustainable and long-term growth since its inception in 1962. We have always been driven by our ambition of consistently providing healthcare professionals with leading-edge products of the highest quality that meet their needs and allow them to care for each patient in the safest conditions. Throughout its network of 26 subsidiaries, VYGON goes the extra mile in its efforts to combine respect for people with economic development and protection of the environment, especially since we need to take action now if we want to address the challenges of tomorrow's world!

Our commitments These commitments reflect our desire to model our business activities on the expectations of our various stakeholders (employees, customers, suppliers, service providers and local communities).

Promoting our values Human values form the backbone of our organisation - VYGON enforces the Ten Principles of the UN Global Compact among its various entities in terms of human rights, labour, the environment and anti-corruption. We are also committed to spearheading diversity and equal opportunities, and lending our support to associations by making donations and providing free products to various medical organisations (Les Matins du Soleil, l'Etoile de Martin, etc.). We defend ethical behaviour wherever we do business - VYGON forges partnerships to promote ethical and fair business practices with its suppliers, distributors and customers. In particular, VYGON expects its suppliers to strictly abide by the principles set out in the "VYGON Supplier Code of Conduct" as well as the laws and standards governing their activities. We involve our employees in the company's strategic decisions - The Vygview project is a prime example, which encompasses the company's various subsidiaries and enables VYGON to build the Group's future with its employees. Together, the key strategic directions for the years ahead are defined by creating working groups to deliver specific responses to all identified topics.

We disseminate the Group's expertise and develop our employees' skills - VYGON provides bespoke training courses for healthcare professionals in over 20 countries around the world. We are also committed to developing our employees' skills and maintaining their employability as part of our annual training plan and by setting up career development pathways.

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Long-term relationships We guarantee the safety of our products - VYGON ensures that every tier of the company is consistently focused on the highest quality to guarantee that the millions of products used worldwide every year are flawless. VYGON products are continually updated to meet the increasingly stringent regulations governing the medical devices sector. Ensuring the health and safety of both patients and practitioners is always a top priority at VYGON. We are committed to a long-term strategy and vision - VYGON is a family-owned group whose stability and shareholders' commitment are instrumental for investing in the long term, and prioritising quality and innovation over short-term profitability. As such, we can guarantee our customers and employees a future proof company. In 2017, more than 80% of VYGON SA's profits will be pumped back into the Group, especially research & development and production facilities.

We create jobs in the countries where our Group is active - VYGON has seen its workforce increase by 50% in 10 years to reach 2,341 employees in 2019 through internal and external growth. This growth has been achieved while respecting and maintaining jobs in all our manufacturing and sales subsidiaries. We foster partnerships and support local economic development - VYGON and the Curie Institute signed a partnership agreement in 2010 (extended in 2013) to develop a new generation of medical devices and consequently make an active contribution to improving care for cancer patients. In addition, VYGON is strongly involved at the local level and has chosen to operate as close to its customers as possible. For example, its factories are mostly located in Europe and the United States, not far from its development centres and markets.

Protection of the environment We protect the environment - VYGON headed down the road towards ISO 14001 certification many years ago. The first ISO 14001 certificate was obtained in 2003, and VYGON passed its fifth certification cycle in 2017. As part of its development, the Group ensures that all new infrastructures are built to reflect HQE criteria and blend seamlessly into their environment. We reduce our environmental impact - VYGON pays special attention to environmental criteria as early as the design and development of its products. This is why VYGON implemented an eco-design policy for packaging in 2013. In addition, each type of waste is forwarded to the appropriate type of treatment centre. We respect applicable environmental requirements - VYGON works alongside experts in gathering intelligence on applicable environmental legislation, so that it can track and comply with all the latest changes. Our "Value Life" signature is much more than a philosophy. It conveys our commitment to harness the skills and energy of all our employees so that we can rest assured that we are fully deserving of our customers' trust.

09/2020

Integrity, commitment, open-mindedness, pursuit for improvement, respect for people... our company's values are deeply entrenched in its history. They also guide our work on a daily basis, give structure to our projects and make them stronger. Finally, they represent the very requirement that we owe to carers and patients. We are proud and happy to defend them.