Statement from Deloitte & Touche We agreed with the Companys management to perform a review of certain figures in the H. Lundbeck A/S Environmental Report 2000 (the Report). The Report is the responsibility of and has been approved by the management of the Company. The scope of our work and the procedures that we performed, which were agreed with the Companys management, were as stated below. Our work has been performed according to Professional Standards applied to State Authorised Public Accountants in Denmark. We have examined 2000 figures in the Report on the following environmental parameters: consumption of raw materials, energy and water, and waste, the amount of waste water and emissions of solvents to the air. We visited the Companys corporate office and the sites in Valby, Lumsås (Denmark) and Seal Sands (England). Our procedures included interviews with staff in the environmental department and those employees at the sites who have been responsible for compiling the figures mentioned above as well as testing samples of supporting documentation. For the above mentioned environmental parameters we have: Assessed the procedures used by the environmental department to collect the figures from the sites. Examined the Report and compared the figures for 2000 presented in the Report to the figures that were submitted as a result of the data collection procedures. Compared the figures for 2000 presented in the Report to the Companys internal registrations and other supporting documentation. Assessed whether figures reported for 2000 are appropriately reflected in the Report. The work performed does not constitute an audit and does not provide the same level of assurance to the correctness of the figures reported as an audit would have done. We conclude that the company has applied detailed data collection procedures for the purpose of collecting 2000 figures on the environmental parameters for consumption of raw materials, energy and water, and waste, the amount of waste water and emissions of solvents to the air for inclusion in the Report. Further we find, that figures for 2000 submitted on the above mentioned environmental parameters are consistent with the source documentation presented to us and that these figures are appropriately reflected in the Report. Copenhagen, March 6 2001 DELOITTE & TOUCHE Statsautoriseret Revisionsaktieselskab Carsten Vaarby State Authorised Public Accountant (Denmark) Preben J. Sørensen State Authorised Public Accountant (Denmark) H. LUNDBECK A/S 41 REPORT Årsberetning 1999 Annual Report 2000 2000 was a very satisfactory year for H. Lundbeck A/S. In the year 2000 the company achieved its bes Supervisory Board 1 2 3 4 5 6 7 8 9 1 ARNE V. JENSEN (Chairman) Directorships Lundbeckfonden Corporate Management Group 1 3 4 5 2 6 7 8 Board of Management 1 Senior Vice Presidents 3 ER Contents CHANGE REPORT GROUP FINANCIAL 5 6 7 2000 HIGHLIGHTS 1996-2000 MEMORIES OF A PSYCHOPHARMA In Northern Italy, on the boundary between Liguria and Toscana, lies the port of Carrara, neighbour Change To have high goals and establish a creative forum. To combine experience and vision. To coup Report 2000 Changes in accounting policies The years important events In February, Lundbecks UK sub Net profit for the year (DKKm) 1.000 900 800 700 600 500 400 300 200 100 0 1996 Net profit ratio Net Revenue worldwide 11% Revenue by product 18% 21% 20% 62% 68% Europe USA Rest of world Cipramil® Income from Celexa® (DKKm) 1.400 1.200 20% 1.000 800 600 400 5% 200 0 1996 1997 1998 1999 2000 0 15% Number of employees at year-end 3.500 3.000 2.500 2.000 1.500 1.000 500 0 1996 1997 1998 1999 2000 2 Research and development costs (DKKm) 1.600 1.400 1.200 1.000 800 600 400 200 0 1996 1997 1998 1999 Generic competition The production of citalopram is protected by a large number of strong process pa Expectations for 2001 Lundbeck expects sales of citalopram to continue rising in 2001, mainly in the Memories of a Pscyhopharmacologist Changing Minds, Changing Lives By Arvid Carlsson Winning the Nob Carrara is not just marble. Other reasons why thousands of sculptors go to the region is that it imp Changing the World From Sweden So, I struck out on my own and went back to Lund to work with Hillarp It takes knowledge and experience to read the stones reactions when the rough cutting is done with d mine, the other root molecule identified by us in the early series of amine uptake inhibiting agents I am afraid that the very nature of depression will limit the possibility of success in these areas. Look at the long term effects of blocking receptors with neuroleptics. The brain doesnt like it at a The rough shaping is done by removing large and small chunks with modern, special tools. 21 Conjuring the precise, planned shape out of the recalcitrant block of granite is physically hard wor Lundbeck has 735 employees in Research and Development, including about 250 in Drug Discovery. Drug In the summer of 2000, the sequence of the human genome was published. This opened the way for findi A research process Target identification & validation Disease ­ unmet need Assay development H Development Lundbeck aims to be a world leader within the development of pharmaceuticals for the tr Here, the bottom face is adjusted. This is the base from which the sculptor calculates the precise m Lundbeck has also entered into a research and development agreement with the Danish biotechnology co Development pipeline per 31.12.2000 Compound Almotriptan Escitalopram Memantine Etilevodopa Rasagili Escitalopram is the first of the new SSRI* generation Lundbecks new antidepressant, escitalopram, i Escitalopram developed in a short space of time In the summer of 1997, H. Lundbeck A/S and Forest La The clinical development programme The clinical effect of escitalopram has been documented in a numb Here, the block of granite is seen lying down, with the base of the sculpture on the left. Red lines Lundbecks products Antidepressants Cipramil®/Seropram®/Cipram®/Celexa® (citalopram) Indication: dep On the face of it, the preliminary phases of the sculptors work may look rather random, but everythi The modern sculptor naturally makes use of cranes, technical aids and modern tools, but it is still Growth in a good environment It is Lundbecks mission to improve the quality of life of those suffer Raw materials consumption (tonnes) 10,000 Environmental performance Lundbecks environmental initiat Water consumption ( 1,000 m3) 250 Wastewater (1,000 m3) 250 200 200 150 150 100 100 50 50 Energy consumption (MWh) 100,000 Waste (tonnes) 16,000 14,000 80,000 12,000 10,000 8,000 60,000 Statement from Deloitte & Touche We agreed with the Companys management to perform a review of Shareholder information H. Lundbeck A/Ss shares are listed on the Copenhagen Stock Exchange and wer Shares traded and stock performance, 2000 700,000 800 600,000 700 500,000 600 400,000 500 300 Share ratios Ratios per share, DKK Earnings (EPS) Cash flow Net asset value Dividend Dividend as a p Change takes shape 45 Composition of the shareholder group 6% 7% Composition of the shareholder group (excl. LFI A/S) 4% Announcements to the Copenhagen Stock Exchange from H. Lundbeck A/S in 2000 No. 37 36 35 34 33 32 31 The 5-tonne block of granite has been transformed into an exciting sculpture. Its weight is now down Financial calendar 2001 Tentative dates 6 27 15 14 6 March 2001 March 2001 May 2001 August 2001 Nove It is not without reason that artists seek inspiration in the Tuscan landscape around Carrara. In th Summary for the Group 1993-2000 The comparative figures have been adjusted for changes in accounting Ratios Net profit ratio (%) Return on assets (%) Return on equity (%) R&D costs as a percentage Financial review Changes in accounting policies Comparative figures and financial highlights and r Tax on the policy changes increases net profit for the year by DKK 167 million and reduces deferred Lundbecks sales of other antidepressants and antipsychotics were DKK 798 million in 2000, a decline Net exchange gain relating to finance income was DKK 39 million in 2000 compared to DKK 41 million i In 2000, Lundbecks interest-bearing net cash (the companys holding of cash and cash equivalents less million. Capital and reserves exclusive of the proposed dividend will amount to DKK 3,560 million af The options are earned by one-third a year over a three-year period. The first portion could be exer Effect of incentive plans Treasury shares/current assets DKKm Obligation/ provisions DKKm Staff cost Employees In 2000, the average number of full-time employees totalled 3,002, an increase of 349 comp 1999 Currencies of the cash inflows of H. Lundbeck A/S and its Danish subsidiaries in 1999 og 2000 Accounting Policies General The parent financial statements and the consolidated financial statemen Forward contracts and other derivative financial instruments are stated at market value. Both realis Other operating income and expenses Other operating income and expenses comprise, among other things Gains and losses are included in the income statement under the same items as the associated depreci Obligations relating to employees of foreign companies under the share price based plan are included Income statement for the year ended 31 December 2000 PARENT 1999 DKKm 2,712.7 759.4 420.5 328.9 1,20 Balance sheet at 31 December 2000 Assets PARENT 1999 DKKm 8.2 55.0 63.2 644.7 228.8 144.4 133.5 1,15 Balance sheet at 31 December 2000 Liabilities PARENT 1999 DKKm 1,165.5 448.2 269.9 202.8 695.2 129.6 Cash flow statement for the year ended at 31 December 2000 KONCERN 2000 DKKm 1,004.0 189.7 455.4 1,6 Signatures Copenhagen, 6 March 2001 The Supervisory Board and the Board of Management have today co Notes 1. Revenue PARENT 1999 DKKm 308.8 1,750.1 533.7 120.1 2,712.7 23.0 141.5 2000 DKKm 295.6 2,30 2. Staff costs ­ continued Incentive plans: In 1999, the company introduced a share option plan for Notes 3. Depreciation and amortisation PARENT 1999 DKKm 2000 DKKm Depreciation and amortisation in 6. Income tax expense PARENT 1999 DKKm 154.0 1.4 2000 DKKm 498.7 (0.5) Current tax Prior year adjust Notes 7. Intangible and tangible assets GROUP Goodwill Product rights DKKm 40.1 18.4 58.5 31.9 7.2 GROUP Land and buildings DKKm 878.2 22.2 261.8 30.5 4.7 1,188.0 211.5 9.8 10.4 46.1 2.0 275.8 912.2 Notes 8. Investments in subsidiaries Total DKKm Carrying amount at 1.1.2000 Capital contribution Di 8. Investments in subsidiaries ­ continued Currency Nominel capital `000 200 1,000 200 400 5 60 500 Notes 9. Other investments and other receivables PARENT Other investments DKKm 103.2 Receivables fr 12. Capital and reserves GROUP Share capital DKKm 1999 Capital and reserves at 1.1.1999 Adjustment d Notes 12. Capital and reserves ­ continued PARENT Share capital Share premium Reserve for net reval 13. Retirement benefit obligations GROUP The majority of the employees of the Group are covered by r Notes 14. Deferred tax liabilities GROUP Temporary differences between assets and liabilities as st 14. Deferred tax liabilities ­ continued PARENT Temporary differences between assets and liabilities Notes 15. Other provisions GROUP Share options for Group management and key employees DKKm Provisio 16. Non-current liabilities PARENT 1999 DKKm 15.9 2000 DKKm 14.2 Mortgage debt due after 5 years 200 Notes 17. Contractural obligations Rental and leasing obligations Lundbeck has obligations amountin 18. Contingent liabilities Letters of intent The parent has issued letters of intent to subsidiaries Notes 19. Financial instruments ­ continued Credit risks The primary financial instruments shown in 20. Related parties Lundbeck defines related parties as: ­ the companys principal shareholder, LFI A Notes 22. Earnings per share (EPS) Earnings per share (EPS) are calculated as: (profit after tax an 25. Acquisition of companies In 2000, Lundbeck acquired 78.29% of the share capital of VIS Farmaceut Summary for 1999-2000 by quarter The tables show financial highlights by quarter according to the ne New accounting policies (DKKm) Financial highlights by quarter: Q1 - 1999 Revenue Profit from operat Lundbeck Worldwide For further information please see our homepage: www.lundbeck.com Parent Company On its way to its final position between Lundbecks coming canteen and the new head office, which are Photos Thomas Grøndahl, Steen Vedel Design og production Creavision A/S Reproduction Highlight Grafi Annual Report 2000 H. Lundbeck A/S 9 Ottiliavej DK-2500 Copenhagen ­ Valby Denmark Tel.: +45 3630