Shareholder Information Market value 1999 The allotment of shares in connection with the flotation of the company on 18 June 1999 took place at a price of DKK 175. Since then, the shares have risen to DKK 296.03 at the end of the year, corresponding to a 69% rise. For comparison, the KFX index rose by 16.6%, while the Copenhagen Stock Exchanges all-share index rose by 21.5% in the same period. From flotation to the end of 1999, H. Lundbeck A/Ss market value has risen from DKK 10.2 billion to DKK 17.2 billion. Measured by market value, H. Lundbeck A/S was the tenth largest company on the Copenhagen Stock Exchange at the end of 1999, and the companys shares constitute 1.75% of the total market value of all shares listed on the Copenhagen Stock Exchange. In just over six months, from the flotation on 18 June 1999 to the end of the year, 22.4 million shares were sold, corresponding to a market value of DKK 4,956 million. As a result of the companys market value and the liquidity of the companys shares, the shares were included in the KFX index in connection with a review of the indexes on 20 December 1999. Shares The company has only one class of shares, and no shares have special rights. The shares are negotiable instruments with no restrictions on their transferability. The companys shares are registered shares and must thus be listed in the register of shareholders. Lundbeck wishes to serve its shareholders in the best possible way and to provide them with information about the company. That is why, according to our Articles of Association, all shares must be registered in the register of shareholders. Shareholders who have not already registered their shareholding are therefore requested to do so. Employee shares At the beginning of December, Lundbeck issued 275,175 shares at a price of DKK 52.50 to its Danish employees. The shares have the same rights and obligations as the companys other shares. The employee shares account for approx. 0.5% of the companys share capital. Share capital As at 31 December 1999, the companys share capital comprised 58,275,175 DKK 20 shares, corresponding to a nominal share capital of DKK 1,165,503,500. Dividend In connection with the flotation of the company, the Supervisory Board set out its policy on dividends, which was to pay a yearly dividend of between 15 and 25% of the profit after tax. The dividend has to be approved by the company in general meeting. At the coming Annual General Meeting, the Supervisory Board will propose that a dividend of DKK 2,25 be paid per DKK 20 share, corresponding to 21.1% of the net profit for the year. The dividend for the year will be paid automatically via the Danish Securities Centre not later than 5 banking days after the Annual General Meeting. Annual General Meeting The Annual General Meeting will be held at 4pm on Tuesday, 28 March, at Valbyhallen. Shareholders The Lundbeck Foundation, 9 Ottiliavej, DK-2500 Valby, Denmark is the only shareholder holding more than 5% of the share capital. Investor enquiries Shareholders, analysts, representatives of banks, stockbrokers, etc. and other interested parties requiring information about Lundbeck and its business areas are requested to contact Lundbecks Investor Relations Department: H. Lundbeck A/S Investor Relations 9 Ottiliavej DK-2500 Valby Denmark Phone: Fax: E-mail: +45 36 30 13 11 +45 36 30 57 42 information@lundbeck.com Tentative dates for release of financial statements: 23 May 2000 Interim report for the first quarter of 2000 15 August 2000 Interim report for the first six months of 2000 7 November 2000 Interim report for the third quarter of 2000 27 February 2001 Financial statement for 2000 15 May 2001 Interim report for the first quarter of 2001 Statements to the Copenhagen Stock Exchange in 1999: No 1 1 June 1999 H. Lundbeck A/S to be listed on the Copenhagen Stock Exchange No 2 18 June 1999 Initial public offering of H. Lundbeck A/S No 3 2 July 1999 Release of semi-annual report No 4 22 July 1999 Lundbeck and Cephalon commence phase I clinical trials No 5 29 July 1999 Lundbeck licenses the migraine drug almotriptan and enters into agreement with P.N. Gerolymatos No 6 17 August 1999 Interim report for the six months ended 30 June 1999 No 7 9 November 1999 Lundbeck enters Collaboration Agreement with the Israelian company Teva No 8 10 November 1999 Publication of Third Quarter 1999 Earnings Report No 9 12 November 1999 Interim report for the third quarter of 1999 No 10 26 November 1999 Lundbeck has decided not to market the Anti Parkinson drug budipine outside Germany No 11 29 November 1999 H. Lundbeck A/S and Novo Nordisk A/S to collaborate on use of Drug Discovery Technology No 12 10 December 1999 97.8% of the employees entitled subscribed for employee shares in H. Lundbeck A/S 84 Report Annual Report 1999 1999 was both an eventful and a successful year for H. Lundbeck A/S. The years biggest event was the Supervisory Board Arne V. Jensen (Chairman) Flemming Lindeløv Lars Bruhn (Vice-Chairman) Henrik He Board of Management Erik Sprunk-Jansen President & CEO Flemming Juul Jensen Executive Vice Pres Contents The basis of our activities Group financial highlights 1995-1999 Report 1999 An Essay on T Acalypha wilkesiana (East Indies). Copperleaf is a foliage plant that is related to the common Poins The basis of our activities The basis of our activities is the brain and its functions ­ and the dis Report 1999 Significant events in the financial year The substantial growth in recent years resultin Profit for the year (DKKm) 650 600 550 500 450 400 350 300 250 200 150 100 50 0 1995 1996 Profit for Profit before tax was DKK 926 million, while profit after tax and minority shareholders was DKK 616 Research and development costs (DKKm) 900 800 700 600 500 400 300 200 100 0 1995 1996 1997 1998 1999 Today, manufacturers of generic products are allowed to market and sell generic Cipramil® in a numbe Income from Celexa® (DKKm) 800 700 600 500 400 8% 300 200 100 0 1996 1997 1998 1999 6% 4% 2% 0 9% 18 Agaricus bisporus (Europe). The Portobello mushroom is an ordinary, brown garden mushroom that is gr expressions, their peculiar qualities. Memory can think of a name. But for recollection the name is Even in dreams, we seek meaning and coherence through the stories of the dream. There are dreams tha Oreocereus doelzianus (The Andes). The hairs protect the cactus against the cold and the strong morn It seems to me that more than memory and recollection it is the ethical impulse that makes the human A multitude of nuances in language speak of fundamental moods that derive from the brain. Mood, humo Fucus serratus. Serrated wrack. A form of brown alga. Common in Danish waters. 18 Readers who do not share Kierkegaards religious view of life can nevertheless not get away from Kier Research and Development thus strengthened our total development portfolio in 1999, partly through p Rebutia heliosa (Bolivia). A rather hardy, conical cactus that has adapted to great heights and a ha progress with the aim of uncovering new molecular mechanisms involved in the development of depressi Development portfolio Compound Almotriptan S-enantiomer Rasagiline TV 1203 Siramesine Gaboxadol Lu 3 Cipramil® prevents depression Lundbeck has carried out two studies of the prophylactic effect of Cip The patients were then randomised ­ in accordance with a code ­ for double-blind treatment with eith Citalopram benefits society Depression is a severe disease that results in a massive loss of working Alocasia odora (tropical Asia). Green foliage plant. Grown for its appearance. and 60 years of age, Fucus serratus. Serrated wrack. A form of brown alga. Common in Danish waters. Lundbeck on the worl Despite the growing use of antidepressants, the market will be affected in the years ahead by the ex In the 1960s, treatment of anxiety was revolutionised with the introduction of benzodiazepines, whic prove diagnosis of the disease. It is estimated that, within any given year, around 25% of patients Hibiscus (tropical plant). Better known in Denmark as the Hawaii flower. The beautiful stamens can b Lundbecks products Antidepressants Cipramil®/Seropram®/Cipram®/Celexa®/Sepram® (citalopram) Indicati Brassica oleracea. Better known as red cabbage. An edible cultivated plant that has been known since Growth in a good environment Lundbeck regards it as vital that fast growth and continuous improvemen Accounts Accounts Accounts Summary for the Group 1993-1999 Profit and loss account (DKKm) Net turnover Profit before research Ratios Net profit ratio (%) Return on assets (%) Return on equity (%) R&D costs as a percentage Comments on the accounts Accounting policies The Accounts have been prepared in accordance with Int In addition, Lundbeck expected a profit before tax above DKK 900 million, which is consistent with t Comments on the accounts Costs Lundbecks total costs, exclusive of financial items and tax, were DK DKK 7 million in 1999, against a net loss of DKK 2 million in 1998. Net currency income included in Comments on the accounts Cash flow Lundbecks cash flow from operating activities amounted to DKK 83 The Supervisory Board proposes distribution of a dividend of DKK 2.25 per share, or DKK 130 million. Comments on the accounts Incentive plans Three new incentive plans were introduced at Lundbeck in c The company has authorisation to grant 500,000 options. On 17 June 1999, the company purchased 500,0 Comments on the accounts Managing financial risks Lundbecks growing internationalisation through th Foreign currency risk Foreign currency exposure is a result of Lundbecks international activities. U Accounting policies General The annual accounts and the consolidated accounts have been prepared in Tax The parent company is jointly taxed with the two Danish and some of the foreign subsidiaries. Th Accounting policies Public loans and grants State development loans with a forgivable clause are re The net revaluation of shareholdings in subsidiaries is taken to the reserve for net revaluation acc Accounting policies Cash flow statement The consolidated cash flow statement is presented according Profit and loss account for the year ended 31 December 1999 Parent Company 1998 DKKm 2,095.5 702.5 Balance sheet at 31 December 1999 Assets Parent Company 1998 DKKm 15.7 25.7 41.4 503.8 168.6 113.7 Balance sheet at 31 December 1999 Liabilities Parent Company 1998 DKKm 110.0 205.9 1,457.3 45.0 1,8 Cash flow statement for the year ended 31 December 1999 Group 1999 DKKm 862.3 153.0 - 4.0 1,011.3 9 Signatures Copenhagen, 29 Februrary 2000 The Supervisory Board and the Board of Management have tod Notes 1. Net turnover Parent company 1998 DKKm 281.4 1,490.9 253.1 70.1 2,095.5 1999 DKKm 308.8 1,7 2. Staff costs - continued Incentive plans: In 1999, the company introduced a share option plan for Notes 3. Writedowns and provisions for Serdolect® Parent company 1998 DKKm 1999 DKKm The years writ 5. Audit fees Parent company 1998 DKKm 1999 DKKm Deloitte & Touche: Auditing services Non-auditi Notes 6. Financial items, net Parent company 1998 DKKm 49.3 5.1 43.7 12.8 110.9 18.9 8.4 23.9 4.8 2 7. Tax on the profit for the year Parent company 1998 DKKm 131.6 - 2.2 1999 DKKm 154.0 1.4 Current t Notes 8. Intangible and tangible fixed assets Group Product rights DKKm Purchase price at 1.1.1999 Land and buildings DKKm 687.8 1.8 - 0.8 194.7 5.3 878.2 171.9 0.2 43.5 4.2 211.4 666.8 Plant and ma Notes 9. Shares in subsidiaries Total DKKm Book value at 1.1.1999 Adjustment due to changed account 9. Shares in subsidiaries - continued Currency Nominal capital `000 200 1,000 200 400 5 60 500 5,000 Notes 10. Other shareholdings and other receivables Parent company Other shareholdings DKKm 9.6 94. 13. Capital and reserves Group Share capital DKKm Capital and reserves at 1.1.1998 Adjustment due to Notes 13. Capital and reserves - continued Parent company Share capital Share premium Reserve for n 14. Provisions for pensions and similar commitments Group The majority of the employees of the Group Notes 15. Provisions for deferred tax Group Temporary differences between calculations for accounti 15. Provisions for deferred tax - continued Parent company Temporary differences between statements Notes 16. Other provisions Group Share options for Group management and key employees DKKm Provisio 17. Long term debt Parent company 1998 DKKm 20.1 1999 DKKm 15.9 Mortgage debt due after five years 1 Notes 19. Contractual obligations Rental and leasing obligations Lundbeck has commitments amounting 20. Contingent liabilities Letters of intent The parent company has issued letters of intent to subs Notes 21. Financial derivatives Currency risk Net forward exchange contracts outstanding at 31 Dece 21. Financial derivatives - continued Interest rate risk The interest rate risk has been calculated Notes 22. Related party transactions Lundbeck defines related parties as: - The companys principal 24. Earnings per share (EPS) Earnings per share (EPS) is calculated as: (profit after tax and minori Shareholder Information Market value 1999 The allotment of shares in connection with the flotation Salvinia natans (tropical/subtropical plant) and Lemna (worldwide). Floating water ferns and duckwee Lundbeck worldwide For further information please see our homepage: www.lundbeck.com The UK Region Photos Thomas Grøndahl, Rigmor Mydtskov, et al. Design and production CreaVision A/S Reproduction No H. Lundbeck A/S 9 Ottiliavej DK-2500 Copenhagen - Valby Denmark Tel: +45 3630 1311 Fax: +45 3630 19