Chiesi publishes its annual report: Group generates almost €2 billion turnover and obtains B Corp certification in 2019

Chiesi announces publication of their annual report, which is based on the approach of renowned US economist and essayist Jeffrey Sachs and includes Chiesi’s all-round performance: environmental, social and economic

 The four cornerstones of the document are Processes, Products and Patients, Global Value Chain and Corporate Citizenship

 Some of the group’s figures include: €1,992.81 million revenue, around 6,000 employees, an 11% reduction in CO2 emissions and a fourfold increase in renewable energy consumption by switching to renewables

Manchester UK, July 24th, 2020 – Chiesi Farmaceutici, an internationally research-focused pharmaceutical Group (the Chiesi Group), announces the publication of its 2019 Report. This official document, drafted with the help of Nativa, illustrates what the Group has done to achieve its objective of incorporating sustainability within its daily business model as a certified B Corp and Benefit Company, alongside its financial and strategic results. The report is available online on the Chiesi Group’s website.

Looking at the data for 2019, Chiesi’s overall revenue totalled €1,992.81 million, €1,376.4 million of which were generated in Europe, €340.3 million in the Emerging Countries and €273.1 million in the US. The Group’s revenues last year were up on the previous year by 12.7%. EBIT (Earnings Before Interest and Taxes) increased from €362.7 million in 2018 to €424.7 million in 2019 (21.3% in 2019 compared to 20.5% in 2018). The respiratory portfolio remains the top therapeutic area with revenues totalling €1,213.5 million in 2019.

The number of people employed worldwide by Chiesi in 2019 reached around 6 thousand, of which more than 50% are women. A total of 65% of employees are aged between 30 and 50. The company reduced Scope 1 & 2 CO2 emissions (Scope 1 – Direct Emissions, Scope 2 – Indirect market-based emissions from electricity purchased and used) by 11% compared to 2018 and achieved a 4.5 fold increase in the use of renewable energy at its plants and offices. A positive trend which furthers the Group’s objective of becoming Carbon Neutral by the end of 2035.

“2019 went beyond expectations and enabled the company to reach a turnover of almost €2 billion,” confirms Ugo Di Francesco, CEO of the Chiesi Group. He added, “This performance represents an important milestone in the growth of the Group, which made significant progress in 2019 when affiliates were set up in Australia and New Zealand and the Global Rare Diseases Business Unit located in Parma and Boston (Massachusetts, USA) was created. These are just a few of the achievements made along with the many challenges the company is still facing this year, a year which has forced us to deal with the global health emergency yet has also demonstrated the incredible stamina and ability to react of the 6 thousand people making up the company. I would like to take this opportunity to once again thank everyone at Chiesi”.

Transparency is a key issue for Chiesi, particularly with regards to representing and conveying its impact on society and the environment. This is why the company has decided to create a single report covering financial issues as well as social and environmental matters, generating added value by providing a complete and transparent explanation of the impact the company’s business model has on society and the environment.

The report is inspired by an analysis proposed by well-known American economist and essayist, Jeffrey Sachs, i.e. with four dimensions to provide a comprehensive overview of the way the business aligns with the United Nations 2030 Agenda of Sustainable Development Goals: products, processes, global value chain and corporate citizenship1.

1 Columbia Center on Sustainable Development, “Aligning corporations with the sustainable development goals” – Summary of Conference procedures, November 2019. **PRESS RELEASE**

Date of prep: July 2020 UK-CHI-2000409

“This moment in history has emphasised just how essential the resilience and sustainability of business models

are for our future, which is why it is fundamental that businesses implement practical measures to demonstrate

and manage their impact to ensure truly sustainable development. The social and environmental crisis

mankind is currently facing requires an unprecedented collective effort,” states Maria Paola Chiesi, Shared

Value & Sustainability Group Head. “It isn’t enough that companies, a key driving force fundamental for

economic systems to evolve, declare they intend to direct their actions towards the SDGs. They need to be

completely incorporated into the company strategy, to act as a force for good for both society and the

biosphere. When this happens, reporting transforms from a formal practice into an evolutionary tool”.

This analysis of the Chiesi business thus provides an account of company processes, the Global Value Chain,

Corporate Citizenship and commitment to patients in the Group’s four therapeutic areas: respiratory,

neonatology, rare diseases and special care. In doing so, it meets the standards of the Global Reporting

Initiative, a non-profit organisation set up to support companies when reporting on sustainable performance,

integrating the objectives of the Impact Report, the document which Chiesi is required to publish each year as

a Benefit Company and which includes the score awarded to the company as a certified B Corp. The

information is presented in a way that highlights the challenges to be tackled and overcome without simply

enhancing the value of the results achieved.

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About Chiesi Group

Based in Parma, Italy, Chiesi Farmaceutici is an international research-focused healthcare group with 85 years of

experience in the pharmaceutical industry and a global presence in 29 countries. Chiesi researches, develops, and markets

innovative drugs in the respiratory therapeutics, specialist medicine, and rare disease areas. Its R&D organization is

headquartered in Parma (Italy), and is integrated with R&D groups in France, the USA, the UK, and Sweden to advance

Chiesi's pre-clinical, clinical, and registration programs. Chiesi employs nearly 6,000 people. Chiesi Group is a certified

Benefit corporation. Chiesi Limited is the UK & Republic of Ireland affiliate of Chiesi Farmaceutici. For more information,

please visit www.chiesi.uk.com.