Sustainability Report 2014 Lek d.d.

Company Profile Sustainability Report 2014 – Lek d.d. 6 1.2 Key data for 2014 1.2.1 Operations in 2014 Table 1: Key figures for 2014 4 Indicator Unit 31. 12. 2014 31. 12. 2013 Index 2014/2013 * 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 annual data is difficult to compare. The comparison of production outputs between 2013 and 2014 is therefore not entirely relevant. 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 2013 is the result of adjustments made to the data on sterile product production output at the Ljubljana site. The change in the value also represents the change in the calculation of performance in all areas. Number of employees 3,124 2,972 105 - Ljubljana site 1,801 1,762 102 - Menge‰ site 817 739 111 - Lendava site 308 296 104 - Prevalje site 198 175 113 Production output* 1,000 tonnes 4.69 3.90** 120 Net sales revenue in EUR m 761.338 745.334 102 Liabilities in EUR m 903.743 852.332 106 Equity in EUR m 500.362 524.287 95 Economic performance 5 In 2014, Lek realized net sales revenue in the amount of EUR 761.338 million, a 2% increase over the previous year. Revenue increased by 3% in foreign markets and decreased by 9% in the domestic market. Direct Economic Value Generated amounted to EUR 776 million, of which Economic Value Distributed totalled EUR 743 million (96%), and Economic Value Retained amounted to EUR 90 million (12%). Operating Costs amounting to EUR 490 million constituted the largest proportion in the structure of Economic Value Distributed or 66%. Employee Costs amounted to EUR 156 million (21%), Payments to Providers of Capital reached EUR 90 million or 12%, and Payments to Govern- ment totalled EUR 7 million or 1% of Economic Value Distributed. In 2014, the tax relief value due to investment in research activity dropped to EUR 9.133 million (13.872 million in 2013). For investments, tax relief amounted to EUR 17.468 million (20.096 million in 2013). We also received public subsidies amounting to EUR 401,002 (EUR 454,000 in 2013). 6 Graph 1: Structure of Economic Value Distributed 4 GRI Disclosure G4-9, GRI Indicators G4-EC1, G4-LA1 5 GRI Indicator G4-EC1 6 GRI Indicator G4-EC4 1% 66% 21% 12% Operating Costs 66% Employee Costs 21% Payments to Providers of Capital 12% Payments to Government 1%