Sustainability Report 2014 Lek d.d.

Company Profile Sustainability Report 2014 – Lek d.d. 10 1.3 About us Lek, a Sandoz company, is a joint-stock company, 100% owned by Novartis Pharma AG. It is based in Ljubljana, it has its development centers in Ljubljana and Menge‰ and operates at four production sites: in Ljubljana, Menge‰, Prevalje and Lendava. In 2014, all the sites were included in the EMAS scheme and registered in the EMAS register. 9 Lek, a Sandoz company, develops, manufactures and mar- kets effective, safe and quality medicinal products, from stand- ard generic drugs through to state-of-the-art biosimilars. 10 For more information about Lek, a Sandoz company, please visit www.lek.si/en . Sandoz, a Novartis company, is a global leader in generics striving for sustainable access to high-quality healthcare. Sandoz employs over 26,000 associates and provides a broad range of affordable products for patients and custom- ers worldwide. Sandoz has a global portfolio of approximately 1,100 molecules, and holds the first position globally in biosimilars as well as in generic anti-infectives, ophtalmics and transplantation medicines. It also has a leading position in key therapeutic areas, from generic injectables, dermatology, respiratory, to cardiovascular, metabolism, the central nerv- ous system, pain and gastrointestinal therapeutic areas. In 2014, Sandoz' sales amounted to USD 9.6 billion. Sandoz develops, produces, and markets finished pharma- ceutical products and intermediates, including active phar- maceutical and biotechnological substances. Nearly half of Sandoz's portfolio is in differentiated products, which are defined as products that are more difficult to scientifically develop and manufacture than standard generics. In addition to strong organic growth since consolidating its generics businesses under the Sandoz brand name in 2003, Sandoz has achieved consistent progress in certain regions and in different areas of differentiated products with a series of acquisitions, which include Hexal (Germany), EBEWE Pharma (Austria) and Fougera Pharmaceuticals (US). Sandoz is on Twitter. Sign up to follow @Sandoz_global at http://twitter.com/Sandoz_Global . Novartis headquartered in Basel, Switzerland, offers a diversified portfolio to best meet the increasing needs of patients and society at large: innovative medicines, eye care products and cost-saving generic pharmaceuticals. Novartis is the only global company with leading positions in these areas. In 2014, the Group achieved net sales of USD 58 billion, while R&D across the Group amounted to approximately USD 9.9 billion (USD 9.6 billion excluding impairment and amortization charges). On 31 December 2014, Novartis Group companies employed approximately 133,000 people. Novartis products are available in more than 180 countries around the world. For more information, please visit http://www.novartis.com . Lek Pharmaceuticals is one of the pillars of Sandoz, the generic division of the Novartis Group and the second-largest global generics manufacturer. Its role within Sandoz is to act as: • a leading Sandoz' development center for tech- nologically demanding products and technologies (medicinal products for oral use, injectables) • a global manufacturing center for pharmaceu- tical ingredients and medicines (medicinal products for oral use, injectables) • a competence center for the development of vertically integrated products • a Center of Excellence in the field of develop- ment and manufacturing of biosimilars • one of the leading Sandoz' global supply centers • responsible for sales on the Slovenian market and selling services for global Sandoz markets • a global IT competence center for producti- on information systems; regional center for IT infrastructure for the countries of South-East Europe, Bulgaria and the Baltic region and for technical operations and quality for Central and East Europe. In recent years we have established ourselves as an important part of the entire Novartis Group. Among others, we manufacture active pharmaceutical ingredi- ents for Novartis innovative medicines (Menge‰ site), we are a center of excellence for ampoules (Ljubljana site) and take part in joint development projects. We develop new knowledge and introduce many new technologies in areas such as biopharmaceuticals (research in the field of monoclonal antibodies), steriles and other products. 9 GRI Disclosures G4-5, G4-7 10 GRI Disclosure G4-4 Lek as part of Sandoz and Novartis