Sustainability Report 2013 Lek d.d.

Company Profile Sustainability Report 2013 – Lek d.d. 4 1.1 Key Data for 2013 1.1.1 Operations in 2013 Table 1: Key figures for 2013 3 Indicator Unit 31. 12. 2013 31. 12. 2012 Index 2013/2012 * Due to extremely large differences in the weight of various types of products, and due to the manufacturing structure being adjusted to changes in demand, the data is difficult to compare. We therefore believe that the comparison of production outputs is irrelevant. Differences in product weight should also be taken into account when reading data on the efficiency per ton of product. For example, the weight of biosimilars is low compared to certain self-medication drugs, yet their manufacture requires larger quantities of water and energy resources, and their financial value is higher as well. ** The change in the value over that reported for 2012 is the result of adjustments made to the data on production output and use of raw materials. The changes occurred in the data on production output for various finished pharmaceuticals at the Ljubljana site. Number of employees 2,972 2,780 107 - Ljubljana site 1,762 1,713 103 - Menge‰ site 739 655 113 - Lendava site 296 245 121 - Prevalje site 175 167 105 Production output* 000 tonnes 3.85 3.79** 102 Net sales revenues in EUR m 745.334 660.435 113 Liabilities in EUR m 852.332 869.540 98 Equity in EUR m 524.287 505.451 104 Economic performance 4 In 2013, Lek, a Sandoz company, realized net sales revenue in the amount of EUR 745.334 million, a 13% increase over the previous year. Revenue increased by 13% in foreign markets and by 9% in the domestic market. Direct Economic Value Generated amounted to EUR 775 million, of which Economic Value Distributed totalled EUR 705 million (91%) and Economic Value Retained amount- ed to EUR 70 million (9%). Within Economic Value Distributed, Operating Costs amounted to EUR 485 million (69%). Employee Costs amounted to EUR 143 million (20%), Payments to Provi- ders of Capital reached EUR 70 million or 10%, and Payments to Government totalled EUR 8 million or 1% of Economic Value Distributed. The tax relief value due to investment in research activity amounted to EUR 13.872 million (23.811 million in 2012). For investments, tax relief amounted to EUR 20.096 milli- on. We also received public subsidies amounting to EUR 454,000. 5 Graph 1: Structure of Economic Value Distributed 3 GRI Disclosures G4-9, G4-10, Indicators G4-EC1, G4-LA1 4 GRI Indicator G4-EC1 5 GRI Indicator GRI G4-EC4 1% 20% 69% 10% Operating Costs 69% Employee Costs 20% Payments to Providers of Capital 10% Payments to Government 1%