Sustainability Report 2010 Lek d.d.

13 Lek, a Sandoz Company – Company Identity Card Operations in 2010 Table 1: Key figures in 2010 6 Number of associates 2,487 2,564 97 - Ljubljana site 1,490 1,421 105 - Menge‰ site 601 593 101 - Lendava site 209 180 116 - Prevalje site 170 184 92 - Representative offices 17 186 9 * Production output 000 tonnes 5,86 3,05 Net sales revenues in EUR m 552,515 562,600 98 Liabilities in EUR m 829,067 897,596 92 Equity in EUR m 675,661 707,752 95 Indicator Unit 31. 12. 2010 31. 12. 2009 Index 2010/2009 *Due to extremely big differences in the weight of various types of products, e.g. biological drugs and drugs such as Immunal®, and due to the manufacturing structure being adjusted to the changed demand, the data is difficult to compare. In 2010, Lek d.d. realized net sales revenues to the amount of EUR 552.515 million, a 2% drop over the year 2009 (8% in the domestic market, 2% in foreign markets). Major changes 7 At the time of reporting, no major changes took place either in the company’s size, organizational structure or ownership structure. No merging activities or joint ventures were un- derway. 2010 reporting characteristics 8 • The reporting period for all the indicators and disclo- sures in the present document refers to the calendar year 2010. • Some of the data (data on associates, key data on fi- nancial operations and economic impacts of business operations) were acquired in the financial reporting process for the purpose of annual report compilation in accordance with International Accounting Standards and the Slovenian legislation. • The objective of Lek’s HSE reporting is compliant with Novartis’ and Sandoz’ objectives to provide a fair and well-balanced picture in the field of health, safety and environmental impacts (HSE). The system of monitor- ing HSE achievements and the reporting methodology are described in sub-sections 2.8 and 2.9. • As a socially responsible company, Lek, a Sandoz company, voluntarily issued its first public environ- mental report for the year 2009 (to see the full re- port, please visit http://www.lek.si/media/storage/cms/ attachments/2010/12/13/22/17/40/Okoljsko-porocilo -2009.pdf ). • Before that, Lek reports were mainly compiled to meet the reporting requirement of the Responsible Care Ini- tiative. For the year 2010, we received an initiative to voluntarily include in the report, in addition to enviro- nmental disclosures, a selection of qualitative and quantitative indicators of economic and social impacts. Consequently, the basic EMAS and GRI indicators es- sential to Lek were included. The indicators are based on the key characteristics of Lek’s business activity and situation. We are aware of the fact that a com- pany’s performance does not only depend on the finan- cial business indicators but also on the quality of rela- tions with key stakeholders. We are proud of the good business practice of Novartis and at the same time we wish to become part of the good business practice of the companies operating in Slovenia. • Reports in the above described form are to be com- piled annually and should contain the key information for all Lek sites in Slovenia. • We expect the report will be used by the company’s associates and management team, local communi- ties within which the company operates, professional organizations assessing the conformity of the RC Ini- tiative and EMAS Scheme, and the members of the pharmaceutical associations. • The report covers the major economical, environmen- tal and social impacts of the organization. • Reporting refers to the company Lek d.d. and to all of its manufacturing locations in Slovenia. • The company Lek d.d. holds a 100% ownership stake in the following subsidiaries (as of 31 December 2010): Sandoz, d.d., Hotel Lek d.o.o., Novartis Animal Health d.o.o., Lek Skopje doel and Lek Ljubljana Holding GmbH, Austria. In the Wastewater Treatment Plant Lendava d.o.o., Lek holds a 74.5% ownership stake. In 2010, Lek d.d. performed no activities that might impair the comparability of data for the previous year. • The year 2010 saw no events that might require adjust- ment of information from previous reports. 6 Disclosure GRI 2.8 7 Disclosure GRI 2.9 8 Disclosures GRI 3.1 – 3.3, GRI 3.5 – 3.8, GRI 3.10 – 3.11