NOTES

1. Accounting policies

The financial statements for Lundbeckfonden (the Parent Foundation) for 2022 have been prepared in accordance with the Danish Financial Statements Act for large reporting enterprises class C.

Other securities and investments are accounted for using the fair value through the income statement and accounted for in accordance with IFRS 9.

The financial statements are presented in Danish kroner (DKK), which is also the functional currency of Lundbeckfonden. All amounts have been rounded to millions, unless otherwise indicated.

The accounting policies are unchanged from the previous year.

Differences Relative To The Accounting Policies For The Consolidated Financial Statements

The Parent Foundation’s accounting policies for recognition and measurement are consistent with the policies for the consolidated financial statements with the exceptions stated below.

Investments In Subsidiaries

Investments in subsidiaries are measured at cost less impairment losses. Dividends are recognised in the income statement.

Cash Flow Statement

With reference to section 86(4) of the Danish Financial Statements Act and the consolidated financial statements of Lundbeckfonden, the parent has not prepared a cash flow statement.

2. Financial income and expenses

3. Employee costs

Members of Executive Management and the Board of Directors, who also serve as board members in subsidiaries also receive board remuneration directly from such subsidiaries. For a complete description hereof, see note 3 to the consolidated financial statements.

4. Total operating costs of Lundbeckfonden and Lundbeckfond Invest A/S

5. Fees to auditors appointed at the annual meeting

Other external costs include fees to auditors appointed by the Board of Directors.

When calculating the taxable income, Lundbeckfonden has deducted grants and tax provisions for future grants. No deferred taxes are recognised for accounting purposes concerning tax provisions for future grants as these are not expected to materialise. Deferred tax not recognised amounted to DKK 1,033m (DKK 946 at 31 December 2021).

7. Proposed distribution of profit

8. Intangible assets

10. Investments in subsidiaries

9. Tangible assets

11. Other securities and investments

13. Pension obligations

14. Financial instruments

12. Capital base

15. Grants, net

16. Contractual obligations

Lundbeckfonden has contractual capital contribution obligations amounting to DKK 89m at 31 December 2022 (DKK 117m at 31 December 2021).

17. Related parties

Lundbeckfonden defines related parties as Lundbeckfonden’s Board of Directors and Executive Management, its wholly-owned investment and holding company Lundbeckfond Invest A/S and this company’s subsidiaries H. Lundbeck A/S, ALK-Abelló A/S, Falck A/S, LFI Equity A/S, LFI Silva Investments A/S, epVIR ApS, DySIS Medical Ltd., and Insusense ApS, including their subsidiaries and associates.

Lundbeckfond Invest A/S shares the same address as Lundbeckfonden, and there is duality of membership between the Executive Management, administration (partly) and boards of directors. Lundbeckfonden receives dividends from Lundbeckfond Invest A/S, which are recognised in the income statement.

Lundbeckfonden received payment for administration costs, net amount DKK 7m in 2022 (DKK 6m in 2021) from Lundbeckfond Invest A/S. At 31 December 2022 Lundbeckfonden has a receivable from Lundbeckfond Invest A/S of DKK 1,812m (DKK 404m at 31 December 2021) and a receivable from Insusense ApS of DKK 83m (DKK 28m at 31 December 2021). Lundbeckfonden received interest on receivables from Lundbeck Invest A/S and Insusense ApS of DKK 8m (DKK 0) and DKK 4m (DKK 2m), respectively.

For information on remuneration paid to the members of the Executive Management and Board of Directors, see note 3 to the consolidated financial statements.

Other than the above, there have only been a few transactions of immaterial importance with related parties.

The Foundation has not entered into any transactions with related parties that were not on an arm’s length basis.

18. Events after the balance sheet date

No events of importance to the annual report have occurred during the period from the balance sheet date until the presentation of the financial statements.