2020 - Boehringer Ingelheim

1 B O E H R I N G E R I N G E L H E I M. A N N U A L R E P O R T. 2020. Value through Innovation financial highlights summary report Amounts in millions of EUR, unless otherwise indicated 2020 2019 Change Net sales 19,566 18,997 + 3%. by region Americas 45% 46%. Europe 30% 30%. Asia / Australia / Africa (AAA) 25% 24%. by business SUMMARY REPORT. 2020. Human Pharma 74% 74%. Animal health 21% 21%. Biopharmaceutical Contract Manufacturing 4% 4%. Discontinued Operations 1% 1%. Research and development expenses 3,696 3,462 + 7%. Personnel expenses 5,587 5,367 + 4%. Average number of employees 51,944 51,015 + 2%. Operating income 4,624 3,782 + 22%. Operating income as % of net sales Group profit 3,062 2,721 + 13%.

2 As % of net sales Group equity 17,307 14,681 + 18%. Investments in tangible assets 1,046 1,073 3%. Depreciation of tangible assets 602 585 + 3%. Top 4 products Human Pharma Top 4 products Animal health Net Sales 2020 in million EUR Change Net sales 2020 in million EUR Change jardiance 2,480 + 15% nexgard 804 + 9%. ofev 2,055 + 38% frontline 406 + 7%. spiriva 1,793 13% heartgard 312 2%. trajenta / jentadueto 1,512 3% ingelvac circoflex /. flexcombo 264 + 11%. overview THE CORE OF OUR LEITBILD. 01. GROUP MANAGEMENT REPORT. 09. C O N S O L I D AT E D. F I N A N C I A L S TAT E M E N T S. 49. PRODUCT PORTFOLIO. 81. content THE CORE OF OUR LEITBILD 01. The Shareholders' Perspective 02.

3 Key Aspects 2020 06. Corporate bodies 08. G R O U P M A N A G E M E N T R E P O R T 09. Information about the Group 10. Report on economic position 32. Report on opportunities and risks 43. Report on expected developments 47. C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 49. Overview of selected consolidated companies 50. Consolidated balance sheet 52. Consolidated profit and loss statement 53. Cash flow statement 54. Statement of changes in group equity 55. Notes to the consolidated financial s tatements 56. Independent auditor's report 77. PRODUCT PORTFOLIO 81. HUMAN PHARMACEUTICALS 82. Respiratory diseases 82. Cardiovascular and metabolic diseases 86.

4 Oncology 92. Diseases of the central nervous system 94. Infectious diseases 94. ANIMAL health 96. Livestock swine 96. Livestock cattle/ruminants 98. Livestock poultry 102. Veterinary Public health (VPH) 104. Companion animals horse 106. Companion animals pets 108. OUR COMPANY. Making new and better medicines for humans and animals is at the heart of what we do. Our mission is to create breakthrough therapies that change lives. Independent and family-owned, Boehringer Ingelheim has the freedom to pursue its long-term vision, looking ahead to identify the health challenges of the future and targeting those areas of need where we can do the most good. As a world-leading, research-driven biopharmaceutical com- pany, almost 52,000 employees create value through innovation daily for our three business areas: Human Pharma, Animal health , and Biopharmaceutical Contract Manufacturing.

5 In 2020, Boehringer Ingelheim achieved net sales of billion euros. Our significant investment of almost billion euros in R&D. drives innovation, enabling the next generation of medicines that save lives and improve quality of life. We realize more scientific opportunities by embracing the power of partnership and diversity of experts across the life-science community. By working together, we accelerate the delivery of the next medical breakthrough that will transform the lives of patients now, and in generations to come. 2 Boehringer Ingelheim Annual Report 2020. THE SHAREHOLDERS' PERSPECTIVE. THE SHAREHOLDERS' PERSPECTIVE 3. 2020 will go down in history as the year of the COVID-19 pandemic that cost more than two million people their lives, destroyed livelihoods, and put our society to a severe test.

6 In light of this global challenge, the pharmaceutical industry has expanded its research into COVID-19 at an unprecedented pace. After all, despite comprehensive and diverse measures to protect life and health , it is the means of pharmacy that can be used to combat and end the pandemic. Until recently, it would have taken more than ten years from the identification of a virus to the approval of a vaccine against it. The fact that vaccines and therapies have now been developed and made market-ready within months was only made possible by the close cooperation between pharmaceutical companies, academia, and public author ities. Policymakers are responsible for creating conditions that make such innovations possible, and the importance of an innovation-friendly environment for society as a whole has never been clearer than during this pandemic.

7 With our company vision of Creating value through innovation , we affirm our commitment to excellence in science. This applies not only to the fight against COVID-19, but also to diseases for which no effective treatment options are available yet. To continue to be able to pursue these objectives in the future, we want to remain what makes Boehringer Ingelheim so unique an independent and economically strong family-owned company of global importance. We would like to express special appreciation to our employees. In an often difficult personal and professional environment, they have protected and supported one another by showing extraordinary commitment and great solidarity, thus maintaining the global supply of medicines that humans and animals so desperately need.

8 Even during lockdowns, our employees continued to do their research and develop new therapies, not least to combat COVID-19. We would like to thank all of them for their outstanding commitment. signed by Christian Boehringer Chairman of the Shareholders' Committee THE BOARD OF. MANAGING DIRECTORS. Michel Pairet Carinne Brouillon Hubertus von Baumbach Michael Schmelmer Jean Scheftsik de Szolnok The photo was taken in February 2020. 6 Boehringer Ingelheim Annual Report 2020. The year 2020 was shaped by the SARS-CoV-2 pandemic also for Boehringer Ingelheim . As a research-driven biopharmaceutical company, we have been involved in the research and development of therapies from the very beginning on a national level with the German Center for Infection Research as well as in a global alliance with other companies and institutions, including the Bill & Melinda Gates Foundation and the US National Institute of Allergy and Infectious Diseases Research Center.

9 We also provided financial assistance and donated protective equipment and medicines as part of our Global Support Program to help counter the pandemic. At all times, protecting our around 52,000 employees has been at the forefront of every decision we made. Patient care has the highest priority for Boehringer Ingelheim . The high level of engagement from our employees allowed us to sustain our production and logistics throughout 2020, despite strained supply chains, and thus continue to supply all those people who depend on their required medicines. Thanks to the outstanding performance of our IT department, within less than a week, up to 40,000 users were able to perform their tasks outside the corporate network from home every day.

10 Other colleagues continued to be needed directly on site, for example in production facilities and laboratories, but also in infrastructure, business operations, and site security. An efficient infrastructure and the flexibility of our staff form the basis and are a prerequisite for the resilience of our entire organization, which attained remarkable achievements in the past year. Thanks to everyone's efforts, we were able to grow in all three business areas. In 2020, we invested more than ever before in researching future therapies. One important area of research is oncology. Here, we are developing active substances that not only directly attack cancer cells, but can also specifically activate the human immune system.