Sustainability Report 2013 Lek d.d.

15 Company Profile 1.3.3.5 Lek sites are also utilized by tenants of business premises. Their environmental management is defined in tenancy agreements. A separate article requires them to comply with Lek’s officially published and adopted internal regulations related to appropriate and safe use of business premises, including issues such as health, safety and the environment. For tenants, uniform HSE standards apply, according to the principle guest - host, for which the HSE unit provides con- sulting services and periodical monitoring (see also item Organization, human resources and education in the field of health, safety and the environment). Tenants are respon- sible for the legality of their environmental management. 1.3.4 Highlights and milestones of Lek’s operations in 2013 The year 2013 was marked by successful development projects, a high percentage of new launches of Sandoz products produced by Lek in Slovenia, new investments and continued recruitment of new employees. Highlights of the year: • We are consolidating our position as the leading San- doz Development Center. We developed 31 novel products for the most demanding global markets; at the end of 2013, more than 270 development projects were under way in the Sandoz Development Center Slovenia. Their complexity is increasing in line with the company’s strategy. • In 2013, we successfully passed the most demanding audit carried out by the US Food and Drug Agency (FDA) and several other international audits, proving the high level of our quality management system to ensure patient safety. Through outstanding perfor- mance, we consolidated our position as one of Sandoz' key entities. • Despite increasingly harsh economic conditions, Novar- tis also continued its investments in Slovenia in 2013 – more than EUR 1.44 billion invested in Slovenia over eleven years. - More than half of these funds were dedicated to development. The other half was invested in moder- nization and expansion of production capacities, enabling us to continue our high level of innovation, growth and continuous improvement of productivity. - One of the major investments was the second Qual- ity Control Center in Ljubljana, as the first center, built in 2008, is no longer sufficient for all our needs. - In Menge‰ we initiated the largest direct investment of Novartis in Slovenia to date – a new production plant for one of the key products. • We retained the leading position in over-the-counter drugs and through many activities consolidated our po- sition as the second largest supplier of generic drugs. Together with products from other Novartis divisions we are the leading supplier in the Slovenian market. • We were the first in Slovenia to offer patients a generic nasal spray withmometasone for the treatment of sea- sonal or perennial rhinitis and symptomatic treatment of nasal polyps. This technologically demanding product was developed in Sandoz Development Center Slove- nia in Ljubljana. • In 2013 we continued to create new job positions – we hired 285 new employees and finished the year with more than 2,900 employees. Most of themwere employed in Biopharmaceuticals and in Production. 43% of all our employees hold a university degree, of which more than 330 hold a master’s degree or a doctorate. • We celebrated the 35 th anniversary of operation of our Prevalje site, which has developed into one of the key parts of Sandoz and has retained its role as an important employer in the region with more than 200 employees. The Prevalje site manufactures one of the best-selling Sandoz products, which is exported to more than 60 countries, including the USA – the largest global pharmaceutical market. 1.3.5 Awards and acknowledgements Through their outstanding achievements, our experts once again proved their first-class knowledge, expertise and experience. In 2013 they received the following recognitions: • Vojmir Urlep, President of the Board of Management of Lek, a Sandoz company, received an award for out- standing business achievement. • We were recognized as the most reputable employer in Slovenia in 2013. • We received the Invest Slovenia FDI Award that recognizes Novartis’s investments in the business development of one of the most successful Slovenian companies. • We extended the full Family Friendly Certificate and proved our efforts to create a work environment which contributes to better work-life integration. • For the sixth time in a row we received the RCI certifi- cate (the so-called Responsible Care ® certificate) as a part of the Responsible Care Initiative (RCI) for re- sponsible operation with regard to health, safety and environment and for transparent communication with stakeholders and the public. Our statements about the importance of responsibility to patients, employees, en- vironment and local communities are pursued in con- crete objectives, about which we report transparently and comprehensively, in compliance with the RCI requi- rements for open communication with stakeholders and the public, using internationally renowned and compa- rable indicators (GRI) in our Sustainability Report 2012. We received the Invest Slovenia FDI Award