GEDEON RICHTER ANNUAL REPORT GEDEON RICHTERGEDEON • ANNUAL REPORT • 2011 1901 2011 00Borito_annual_report_angol_2012_140_old.indd 1 3/25/12 2:29 PM Delivering quality therapy through generations 2011 01_angol_elso_resz_01_66.indd 1 3/26/12 2:23 PM 2 Contents CONTENTS Richter Group – Fact Sheet . 3 Consolidated Financial Highlights . 5 Chairman’s Statement . 7 Directors’ Report . 9 Information for Shareholders . 9 Shareholders’ Highlights . 9 Market Capitalisation . 9 Annual General Meeting . 10 Investor Relations Activities . 10 Dividend . 11 Information Regarding Richter Shares . 12 Shares in Issue . 12 Treasury Shares . 12 Registered Shareholders . 12 Share Ownership by Company Board Members . 13 Risk Management . 14 Corporate Governance . 16 Company’s Boards . 18 Board of Directors . 18 Executive Board . 21 Supervisory Committee . .22 Managing Director’s Review . 25 Operating Review . 29 Consolidated Turnover . 29 Markets – Pharmaceutical Segment . 31 Hungary . 32 International Sales . 34 European Union . 35 CIS . 37 USA . 38 Rest of the World . 38 Wholesale and Retail Activities . 39 Research and Development . 40 Female Healthcare . 42 Products . 46 Manufacturing and Supply . 50 Corporate Social Responsibility . 51 Environmental Policy . 51 Health and Safety at Work . 52 Work Health and Safety Management System . 52 Practical Implementation . 52 Community Involvement . 53 People . 54 Employees . 54 Recruitment and Individual Development . 55 Developing Leaders . 56 Remuneration and Other Employee Programmes . 56 Financial Review . 59 Key Financial Data . 59 Cost of Sales . 59 Gross Profit . 59 Operating Expenses . 60 Profit from Operations . 61 Net Financial Income . 61 Share of Profit of Associates . 62 Income Tax . 62 Profit for the Year . 62 Profit Attributable to Owners of the Parent . 62 Balance Sheet . 63 Cash Flow . 63 Capital Expenditure . 64 Treasury Policy . 65 Litigation Proceeding . 66 Consolidated Financial Statements . 68 Independent Auditor’s Report . 68 Notes to the Consolidated Financial Statements . 75 Appendices . 134 Consolidated Financial Record 2005-2011 . 134 Unconsolidated Financial Record 2005-2011 . 136 01_angol_elso_resz_01_66.indd 2 3/26/12 2:23 PM Richter Group – Fact Sheet • Gedeon Richter 2011 3 RICHTER GROUP – FACT SHEET Richter Group is active in two major business segments, primarily Pharmaceuticals comprising the research and development, manufacturing and marketing of pharmaceutical products, and it is also engaged in the Wholesale and retail of these products . In addition, there is a third group (’Other’) of companies comprising those members of the Group which provide auxiliary services to the former segments . Research, development, manufacturing and marketing of pharmaceutical products are the core activities of Richter and in this endeavour the Group is supported by a number of subsidiaries, joint ventures and associated companies . Manufacturing subsidiaries of the Group which operate in traditional markets together with a broad network of trading affiliates which ensure a strong market presence have together created the foundation for regional leadership and pan-European presence in the spe- cialty area of gynaecology . PARENT COMPANY DATA Headquarters . 1103 Budapest, Gyömrői út 19-21 ., Hungary Mail address . 1475 Budapest, Pf . 27 ., ngaryHu Phone . +36 1431 4000 Fax . +36 1260 4891 E-mail . posta@richter .hu Website . www .richter .hu Established . 1901 Main activity . Research, development, manufacturing and marketing of pharmaceutical products VAT Number . 10484878-2-44 . ..