Sustainability Report 2010 Lek d.d.

Lek, a Sandoz Company – Company Identity Card 12 1.2 Highlights and milestones of Lek’s operations 2010 • Lek was the first to offer the Slovenian market generic Rosuvastatin. • The Biopharmaceuticals Development Center in Menge‰ produced the first API of its own development for a biosimilar. • We developed 36 new products for the world’s most demanding markets. • The production facility for solid dosage forms at the Ljubljana site achieved a record production output of 4.5 billion tablets and capsules. • Novartis’ investments in Slovenia exceeded EUR 1 bil- lion. • The major portion of investments went into develop- ment, modernization and expansion of production ca- pacities, and further reduction of the company’s envi- ronmental impact. • Strong investments were made into employee training and development. • The beginning of 2011 saw more than 200 develop- ment projects going on. Major sustainability events and awards 5 Family Friendly Enterprise Certificate Lek was among the first Slovenian companies to have re- ceived in 2007 the Family Friendly Enterprise Certificate. Our strict adherence to the guidelines and requirements won us a full Family Friendly Enterprise Certificate in 2010. We wish to make the work atmosphere as friendly and pleas- ant as possible. This includes: • Flexible working time with a choice of arrival and de- parture times, • Organizing associates’ meetings, • Communications with employees, • Performing employee opinion surveys, • Information and communications policy, • Appointment of a work-life balance officer, • Company Open House Day, • Promotion of equal opportunities, • Supervision and additional activities for school children during holidays, • Assistance with family member care etc. TOP 10 Education Management 2010 Professionally planned operations and investments in em- ployee education, training and personal development won us another TOP 10 Education Management award. The award confirms our development orientation which we are maintaining even in these tough economic times. Award for the contributions to the development of pharmacy in Slovenia On 2 December 2010, the Faculty of Pharmacy of the Uni- versity of Ljubljana celebrated the 50th anniversary of the introduction of pharmacy as a field of academic study in Slovenia. Special awards were presented for contributions to the development of pharmaceutical science. Lek, a San- doz company, which has cooperated with the Faculty of Pharmacy since its foundation in 1960 in numerous areas of development, in the teaching process, in the creation of academic curriculum, and by providing financial support in order to create material conditions needed for the Faculty’s development, was one of the award recipients. Sandoz and Novartis Outstanding Achievement Award In 2010, Lek employees received a number of awards for outstanding achievements and contributions to the excellent business results of Sandoz and Novartis. The awards included BioNext, ExCEED, Novartis HR Diver- sity and Inclusion Award, Novartis Energy Excellence Award, three Sandoz technical operations awards (for successful FDA inspection, supply chain management excellence, out- standing cost savings in purchasing), global technical op- erations award for inventory management excellence, global human resources excellence award to the technical opera- tions HR team, three Competitive Edge Awards, and Sandoz award for top communication. The HSE achievement award was granted to the Solid Dos- age Forms and Sterile Products manufacture unit at the Ljubljana site for achieving more than 2.5 million lost-time accident-free working hours. More details on established business standards and awards granted for improvements in the field of environmental im- pact reduction are provided in the Environmental Aspects of Business Operations section. 5 Disclosure GRI 2.10 Rebuilt in 2008, Lek kindergarten has operated for over 35 years, providing daily care for children of Lek employees. Family Friendly Enterprise Certificate