Sustainability Report 2014 Lek d.d.

Company Profile Sustainability Report 2014 – Lek d.d. 18 • 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 pa- tient safety. • In the domestic market we faced escalations in genera- ting savings in healthcare which, due to administrative price cutting for some of our leading products, preven- ted the sales growth compared to the previous year. We retained the leading position in over-the-coun- ter drugs and through many activities consolidated our position as the second largest supplier of generic drugs. Together with products from other Novartis divisi- ons we are the leading supplier in the Slovenian market. • We hired 249 new associates and ended the year with more than 3,100 associates. More than 45% of all our employees hold a university degree, of which nearly 370 hold a master’s degree or a doctorate. • For the fourth year in a row we enabled the most pro- mising science students from the Alpe-Adria region to take part at the regional BioCamp offering them an insight into pharmaceutical industry guidelines. The winners Boris Brus and Janko Ignjatoviç partici- pated at the Novartis global international BioCamp in Basel where Janko became one of the three winners. 1.3.5 Awards and acknowledgements • We extended the full Family Friendly Certificate and proved our efforts to create a work environment which contributes to a better work-life integration. • For the seventh time in a row we received the RCI certificate (the so-called Responsible Care ® certificate) as a part of the Responsible Care Initiative (RCI) for responsible operation with regard to health, safety and the environment and for transparent communica- tion with stakeholders and the public. Our statements about the importance of responsibility to patients, employees, the environment and local communities are pursued in concrete objectives, about which we report transparently and comprehensively, in compli- ance with the RCI requirements for open communicati- on with stakeholders and the public, using internation- ally renowned and comparable indicators (GRI) in our Sustainability Report 2014. • We continued our targeted and systematic investment in development, education and training of our employ- ees. Once again, for the thirteenth time in a row, we received the TOP 10 Education Management Award . • We received an award for the second place among the best HRM projects 2014 for our project "Monitoring and promoting improvements and innovation among associates". It shows the building of company culture, stresses the importance of ideas and innovation and encourages all employees to improve their work. • We were recognized for the participation of students in the practical training of students of the Faculty of Chemistry and Chemical Technology. • The project of thermal utilization of waste solvents at the Menge‰ site placed us among the finalists of the Siemens contest for innovative and efficient use of resources. • Our associate Gaj Stavber from the Development Center Slovenia became the winner of the AmCham Top Potential of the Year 2014 contest . • A team of scientists at Biopharmaceuticals Menge‰ and the National Institute of Chemistry Ljubljana re- ceived the Puh Award 2014 . • Associate Dr Tina Trdan Lu‰in from the Development Center Slovenia received the Pregl Award 2014 . • Dr Klemen Naver‰nik, prototype analytics group head at the Development Center Slovenia, received the Faculty of Pharmacy’s Dean’s Award 2014 . At the 4 th regional BioCamp 2014 we hosted young scientists from 10 countries. The Puh award went to a team of researchers at Biopharmaceuticals Menge‰ and the National Chemistry Institute Ljubljana Lek experts Simona Jev‰evar, PhD; Maja Kenig, PhD; Neboj‰a Furlan and Sa‰o Tom‰e from Biopharma- ceuticals Menge‰, together with their colleagues from the National Institute of Chemistry Ljubljana – Prof. Vladka Gaberc Porekar, PhD, Ana Jesenko and Tatjana Milunoviç, MSc, were the recipients of the Puh Award for the devel- opment and production of biosimilar medicinal products filgrastim and pegfilgrastim and the transfer thereof into production. The Puh Award is one of the highest state recognitions in the area of scientific and research activities, given for outstanding achievements in the field of develop- mental activities, such as inventions, developmental achievements and the use of scientific findings when introducing innovations in economic practice. Development and manufacture of biosimilars Winners of the Puh Award: Simona Jev‰evar, PhD; Maja Kenig, PhD; Neboj‰a Furlan, Sa‰o Tom‰e and Tatjana Milunoviç, MSc