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22 INTEGRATED ANNUAL REPORT 2021 - PIERRE FABRE Improving our efficiency Our ability to transform our company, as well as finance the transformation efforts, will rely on us becoming more efficient. Our achievements in 2020 include: • Creation of a Business Unit encompassing all supply chain activities: with over 2,500 employees formerly spread across different sites, this new structure is designed to guarantee better customer service and improve operational efficiency and agility. • Confirmation of a new R&D strategy for Medical Care: reorganization into three separate entities with the aim of creating a pipeline of high added-value oncology molecules and refreshing the medical portfolio, for a market that has experienced major upheaval. (read more on p. 27) Take advantage of the opportunities offered by digital technology Digital technology and data should help us focus more on patients, consumers, and customers. Our achievements in 2020 include: • Deployment of the ONE program: launched across 25 subsidiaries in 2020, this program should result in a more coherent multi- channel experience for Pierre Fabre consumers, especially thanks to service- rich and content-rich online and offline pathways. • Precision marketing campaigns: tested in 11 pilot countries, these campaigns are designed to better identify the strategic targets for each brand in order to deliver a personalized message and focus our media investment on the consumer segments most suited to each brand. • Creation of a social hub: This department of ‘Social Listening’ specialists records and analyzes conversations on social media in order to help all of the company's activities and functions better understand the trends and expectations of consumers and patients. Avène ranked No. 6 most digitalized brand in France In 2020, digital expenditure rose by +38.5% vs. 2019 for the entire Group Average increase of Developing and sharing a Group data culture Created in 2019, the Data Excellence Center is designed to help us better and faster understand changes in our economic and social environment around the world. The Data Excellence Center has numerous roles: nurture a data culture among Group employees, promote advanced data usage, and deploy tools and services better adapted to the needs of our consumers, patients, clients, and employees. It also has the task of decompartmentalizing our work practices in order to share knowledge that is currently scattered across the Group, helping us take factually-informed decisions, and ultimately optimize our project coordination. Data management is a real skill in a changing world. Improving our agility thanks to a harmonized ERP The Group now has a single SAP-integrated management system instead of its previous 11 separate IT systems. This transverse approach, which will eventually benefit over 3,000 users, 10 production sites and 35 Group units, is designed to simplify and harmonize processes in order to improve our agility. Despite the pandemic and the delays it has caused, teams have successfully rolled out the system for the entire supply chain. As of January 2020, all Pierre Fabre product orders are now handled by the new system. In 2021, the project will enter into its final deployment phase: harmonizing processes for the pharmaceutical and dermo- cosmetics production sites. 41% in traffic to our dermo-cosmetic brand websites during 2020