Sustainability Report 2014 Lek d.d.

From left to right: Andrej Breãko-Siemens, Egidij Capuder, Mojca Bernik and JoÏe Stopar from Lek, a Sandoz company, and Jurij âretnik, Zoran Djura‰inoviã, Miran Oblak and Matej ·oberl from RACI d.o.o. Lek among the finalists of the Siemens contest The project of thermal utilization of waste solvents at the Menge‰ site earned a position among the finalists of Siemens’ contest for innovative and efficient use of resources. A larger volume of waste solvents, suitable for energy reco- very, is generated in the production process at the Menge‰ site. By co-incineration of waste and natural gas we remove 20 to 30% of the annual volume of non-halogenated waste solvents with a high calorific value. The resulting energy is used for technological purposes for the generation of indus- trial steam. The basis for the co-incineration process is, in addition to being an appropriate device, also an appropri- ate monitoring platform. The device at Menge‰ has obtained all necessary permits, including the integrated environmental permit. The generated savings are equivalent to 1 million m 3 of na- tural gas per year or 2,000 t of CO 2 emissions. The cost of removal and incineration of waste solvents by the authorized waste disposal company is also lower. The Werner von Siemens award recognizes projects aimed at increasing efficiency in the construction and management of facilities, manufacturing, electricity and water supply, sewa- ge treatment and waste management and remediation of the negative effects on the environment. The most relevant fac- tor in the assessment of quality of contesting projects is effi- cient use of energy sources, in addition, the jury also as- sesses the complexity and innovativeness of projects as well as their technological and business impacts. Innovative and efficient use of resources Sustainability Report 2014 – Lek d.d. Environment 28 2.1.2 Major environment protection achievements By implementing our environmental policy, we improve the environmental performance of our processes. In 2014 we implemented the following measures: • continued projects aimed at reducing atmospheric emissions and carried out additional redirection of emissions from production plants to a Regenerative Thermal Oxidizer – RTO) at the Menge‰ site. Over the last seven years, we installed four such devices at Lek for more efficient and economic reduction of emissi- ons on the basis of thermal oxidation of gasses: two in Ljubljana, one in Menge‰ and one in Prevalje; • restructured and partially repaired the sewage network at Ljubljana, Lendava and Menge‰ sites and repaired or replaced old oil-traps with new ones that conform with the SIST EN 858-2 standard; • completed the project of the redirection of the cooling water discharge outlet from the Kopica stream into the Mura river at the Lendava site; • removed cooling devices that still contained R 22 gas at the Prevalje and Ljubljana sites and replaced them with new devices containing gas with lower global war- ming potential; • continued the project of testing water-based coating of tablets at the Prevalje site; • implemented measures to reduce the temperature of discharges of industrial waste water by installing a 6 m 3 tank for retention and cooling of waste water at the Ljubljana site; • installed a new steam boiler for generating steam with better thermal efficiency (flue gas recovery) at the Menge‰ site. The boiler has the option of co-incine- ration of non-halogenated waste solvents with a high calorific value (project in 2015); • ensured technological equipment for the regeneration of waste reagents at the Lendava site; • continued the project "packaging" at Lek level, re- ducing the use of rawmaterials. With smaller packaging sizes we also reduced the impact of transport on the environment (lower fuel consumption, lower CO 2 emissions). 2.1.3 Investments in environmental management 32 We limit our environmental impacts by continuous environ- mental investments. In 2014 they amounted to EUR 2.9 million. The major investment projects included the following: • redirection of the cooling water discharge outlet into the Mura river, • renovation of the sewage network and instalment of new oil-traps that conform to the SIST EN 858-2 stan- dard at all Lek sites, • technological equipment for the regeneration of waste reagent at the Lendava site, • additional reconnections and amendments to the system of eliminating organic solvents from industrial exhausts at the Menge‰ site, • installation of cooling devices that contain gas with lower global warming potential at the Prevalje and Ljubljana site, • new steam boiler with better thermal efficiency at the Menge‰ site, • restoration of the facade of the tablet production plant in Ljubljana, thereby improving the energy efficiency of the building. 32 GRI Indicator G4-EN31