Sustainability Report 2012 Lek d.d.

Sustainability Report 2012 – Lek d.d. Labor 46 3.2.3 Coverage of the organization's defined benefit plan obligations 60 Lek provides its employees additional pension insurance (Pillar II) to a maximum premium amount. Lek enabled the employees to join the collective additional pension scheme in 2001, and the opportunity was taken by a large majority. At the end of 2012, 85.59% of the workforce was included in the scheme. The premium is calculated on the basis of 5.844% of the employee gross salary. 3.2.4 Procedures for local hiring and proportion of senior management hired from the local community 61 At Lek, the process of hiring foreign employees is compliant with established corporate practice following EU recommen- dations. The employment process is performed through im- plementation of the guidelines on diversity, equal opportuniti- es and fair treatment. Decisions are taken only on the basis of employment related elements. Local representatives account for 90% of the senior management team (consisting of unit heads and Management Board members), the level of 2011. 3.2.5 Parental leave 62 Parental leave is granted to every employee fulfilling the criteria laid down in the Parental Protection and Family Benefits Act. Men Women Total Number of employees having taken parental leave 95 93 188 Number of employees returning to work after parental leave 95 90 185 Percentage of employees returning to work after parental leave 100% 97% 98% Number of employees returning after parental leave to work in the same position 91 90 181 Percentage of employees returning after parental leave to work in the same position 96% 97% 96% 3.3 Occupational health and safety 3.3.1 Standard injury, lost day, and absentee rates 63 In 2012, we recorded one severe employee accident resul- ting in prolonged sickness absence, two accidents of workers working through employment agencies, and one student accident. A total of 4 accidents at work resulting in sickness absence were recorded. Consequently, the total number of accidents at work (including both internal and external asso- ciates) requiring sickness absence declined (compared to 7 in 2011). 3.3.2 Standard injury rate 64 Preventive action and promotion of safe conduct at work are long-term objectives in the process of providing workplace safety and health across Novartis. Detailed records of work- -related incidents in our employees have been kept for se- veral years by means of the LTIR (lost time injury and illness rate) indicator and the TRCR (total recordable case rate) indicator (including sick leave cases and the cases where the basic first aid criteria are exceeded but the employee is able to return to his working environment without sick leave). The two indicators are calculated as a number of cases per 200,000 hours worked. 60 GRI Indicator EC3 61 GRI Indicator EC7, Disclosure GRI 4.1 62 GRI Indicator LA15 63 RC KPI 2, GRI Indicator LA7 64 GRI Indicator LA7

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